Which loan is best for your business? Your best option depends on your needs. Short-term financing helps drive revenue. Long-term loans fund bigger purchases. For example, if you want to buy property or another company.
Pros and Cons of Term Loans
Pros of term loans:
- Fixed rates
- Set repayment schedule
- Can be used for equipment and real estate
Cons:
- Late fees if you miss payments
Reasons to Borrow
Reasons to borrow:
- Meet emergency expenses
- Expand your business
Banks offer loans up to 30 lakh without collateral.
Compare options to choose what fits your business.
Types of Loans
Term loans offer fixed rates and set repayment schedules. However, late fees apply for missed payments.
SBA loans come with government guarantees and lower interest rates. Useful for those unable to qualify for bank loans.
Lines of credit allow borrowing up to a set limit. Helpful to manage cash flow.
Invoice financing provides money against outstanding invoices. Assists during revenue shortfalls.
Equipment loans spread out payments for large purchases.
Microloans up to 50,000 dollars target startups. Focused on underserved communities.