🔹 What is a Business Loan?

A business loan is money borrowed from a lender (like a bank, credit union, or online lender) that a company agrees to repay with interest over time. It's used to fund operations, expansion, equipment, or manage cash flow.

🔹 Types of Business Loans

1. Term Loans – Lump-sum with fixed repayment over a set period.

2. Lines of Credit – Access funds as needed up to a limit; pay interest only on what you use.

3. SBA Loans (U.S.) – Government-backed, low-interest loans with favorable terms.

4. Equipment Financing – Specifically for buying business-related equipment.

5. Invoice Financing – Borrowing against outstanding invoices.

6. Merchant Cash Advances – Advance funds repaid through a percentage of daily sales (high cost).

🔹 How to Request a Business Loan

✅ Step 1: Assess Your Needs

• Why do you need the loan?

• How much do you need?

• How quickly can you repay it?

✅ Step 2: Check Your Credit

• Business and personal credit scores are important, especially for new businesses.

✅ Step 3: Gather Documentation

Most lenders require:

• Business plan

• Financial statements (P&L, balance sheet)

• Tax returns (business & personal)

• Bank statements

• Legal documents (licenses, incorporation papers)

• Collateral details (if required)

✅ Step 4: Choose the Right Loan and Lender

• Compare loan types, interest rates, terms, and repayment options.

• Traditional banks: Lower rates, stricter criteria.

• Online lenders: Faster processing, more lenient but higher rates.

✅ Step 5: Apply

• Complete the application online or in person.

• Submit all requested documentation.

• Be prepared to answer questions about your business and finances.

✅ Step 6: Review and Accept the Offer

• Read terms carefully: interest rate, fees, repayment schedule.

• Ask about early repayment penalties or hidden fees.

🔹 Tips for Approval

• Maintain good personal and business credit.

• Have a strong, realistic business plan.

• Show steady cash flow and profit.

• Offer collateral if possible (improves approval chances).

• Build a relationship with your banker or lender.

Navigating SBA Loans

SBA Loans offer flexible terms and low-interest rates for small businesses. Our informative videos provide insights into the SBA Loan application process, eligibility requirements, and how to leverage SBA Loans to fuel your business's growth and success.