The right financing is critical to help small businesses manage cash flow, purchase inventory, and expand. But between the complications of qualifying for a bank loan and understanding the numerous lending products out there, obtaining the funds you need can get complicated.
Business Lending & Financing Options
Short Term Loans
A short-term business loan is designed to give small businesses fast access to funding to cover short-term capital needs. Typically, short-term business loans are used for managing cash flow, handling emergencies and unexpected opportunities, as well as bridging larger financing solutions.
Medium-Term Loans
Medium-term loans are loans with a repayment period between two and five years. Usually, these loans offer up to $500,000 in financing, a monthly or bimonthly payment schedule, and mid-market interest rates. It typically takes two to three weeks to get funding with a medium-term loan.
Long-Term Loans
Long-term business loans are business loans that you repay over a period of one year or longer, usually in monthly installments. The benefits of a long-term business loan are low interest rates and more manageable payments, since payments are spread out over a long time. Also compared to other types of financing you’ll need to have strong qualifications to be able to access long-term loans.
Open-End Loans
With an open-end loan, you're approved for a specific amount. This is called your credit limit. You don't have to use up the entire credit limit all at once. You access the line of credit as needed. Once you pay off that amount, you can reuse the line of credit again later. The line of credit remains "open" for your use. Examples of open-end loans are credit cards and a home equity line of credit, or HELOC.
