Getting Your Company Off The Ground: 10 Types Of Business Loans Available In 2019

Need a cash injection into your business? Then you’ve come to the right place. There are tons of different ways to get money into your business so that you can start growing and hopefully becoming a major success in your market. Raising funds needn’t be complicated.

Types of Small Business Loans

Here are ten different types of business loans available in 2019. If you think you need the right loan for your business, you can apply for instant credit online with ePayLater.

1. SBA Loans

These are good for large amounts of money, like for those wanting to borrow up to 350 million INR. Because of this, they typically have lower interest rates over longer payment periods, normally between 4% and 10%. However, as you can probably imagine, they’re quite hard to qualify for and may require a lot of collateral. Not all lenders offer this type of loan.

2. Business Term Loans

These normally have longer payment periods and are good for large amounts normally between 1 and 35 million INR. They normally have a fixed lump sum but fixed rates with these loans are not always guaranteed.

3. Merchant Cash Advance

These are a quick way to finance but aren’t available to everyone. They’re normally easier to qualify for than a traditional bank loan, but have higher interest rates and can impact directly on your profit margins.

Line of credit

4. Business Lines of Credit

You’ll have 24-hour access to funds with these and can increase what you borrow as you repay some of the initial loans. You’ll need a strong revenue stream to qualify for this type of funding and might have to pay additional maintenance fees.

5. Invoice Factoring

This is good if you need the money quickly, and it’s easier to qualify for than a traditional loan. However, this type of financing comes with high-interest rates and large fees.

6. Equipment Loans

You can use these to fund machinery purchases up to 150million INR. The interest you pay on these loans could be tax deductible. You’ll need a strong credit line to qualify and this funding will often need a down payment.

7. Business Credit Cards

You can help build your company’s credit history with these, and interest rates and fees can be tax deductible. However, you’ll be paying really high fees and long-term borrowing could hurt your profits.

Holding a business credit card

8. Startup Loans

This is another option that could help build your credit history, and there’s no need to sell equity with this type of funding. It may require a personal guarantee and substantial collateral to get this funding.

9. Business Loans for Women

These have good approval rates, but you’ll have to be a woman. There are lots of different lending types available. You’ll need to pick the right one for your business.

10. Personal Loans for Business

This is a good way to get quick funding for your business. These loans will typically be unsecured. They do come with high-interest rates and could put your personal credit score at risk.

Which of these funding methods is right for you and your business? Be sure to pick the right one today!