If you are
planning to start a new company or desire to expand the existing one but are
unknown of the ways how to do it then, the simplest answer to this is to borrow
small business loans for a trusted lender.
There are
several types of loans in the market but the secret is not all of these loans
are suitable to be borrowed as each of them has its own benefits. Still,
confused? Continue to read on the blog below and know the top small business loans
and which is best for you!
Top 5 small business loans in New York along
with their advantages
1.
Business term loans
Traditionally,
the business term loans are one of the best small business loans in New York that one could opt for. They have several
advantages and long term repayment options.
Pros of business term loans
·
Can
be used for any business type regardless of its size
·
Larger
sum can be borrowed
·
Repayments
are of quite a long phase
·
Good
interest rates from 6.5% to 30%
·
Does
not include any collateral
·
Mostly
it is based on your business profit percentage, revenue, and business credit
score
2.
SBA loans
SBA loans are
not just for the sake of small businesses but they are also appropriate for the
real estate, and large businesses. They can be used for various business purposes
such as purchasing equipment, working
capital, and refinancing.
Pros of SBA loans
·
SBA
loan is the best loan option for business with strong credit and high profile
·
It
ranges from $5,000 to $5 million in the United
States
·
The
lenders of SBA loans can be found
online or several commercial banks
·
Lowest
interest rates
3.
Merchant cash advances
A merchant cash advance is a type of loan which grants you a sum
of loan in exchange for a decided percentage of your daily credit card’s
transaction. It can be sued for
short-term requirements such as payroll, emergency funds, and working capital.
Pros of merchant cash advance
·
Fast
approval of the loan
·
Grants
good lump sum amount up to $250, 000
·
Suitable
for business with short trading history and poor credit score
·
Repayment
period- 8 to 10 months
4.
A business line of credit
A business line
of credit is somewhat similar to a credit card but is only open for business
with low ratings of business credit.
One can be approved for borrowing this loan for a maximum sum of credit which
can be drawn whenever you desire.
Pros of Business line of credit:
·
Liable
for small businesses
·
Flexible
funding type
·
Emergency
funding is also available
·
After
you have repaid the borrowed amount then you can also withdraw more money
·
Repayment
term is usually from half to one year but mostly depending on your business
credit score and revenue
5.
Equipment loans
Generally, equipment loans are loans which are used to purchase unused/new or used/second-hand equipment for businesses, this equipment may include proper tools and machines that are used to elevate the productivity and sales volume of the business and enhance customer service.
Pros of Equipment loans:
·
Easy
application process
·
Suitable
startups and small business loans
·
You
can use this loan to the fullest even while you are paying off the loan amount
in installment
·
The
payment of loan terms are valid until the equipment are still in usable
condition, typically it is around for 5 years.
Choosing the
type of loan for your business whether small or big is a great deal as hence,
taking risks in for the success of the businesses required a big heart.
So, now that you
have got all the necessary information regarding the various small business
loans along with their pros, you can be sure which one you should opt for the
betterment of your business and finances.
However, if you
still looking forward to professional consultation then you may visit the Greenlight Funding. They can help you
find the best and the most suited form of small business loan
in New York with suggestions and significances!
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