Types of Business Loans
There are a few different types of loans you can apply for with our service. The type of loan you need will vary based on how much you need to borrow and what kind of repayment plan would work best for you.
Business Term Loans- These loans usually have a low fixed rate for your repayment plan. The lender will set a repayment schedule based on the revenue your business brings in. Usually you will have a daily or weekly payment plan which doesn’t apply to weekends or holidays.
Cash Advances- There are no set terms for a cash advance. Your business will be given cash in exchange for a fixed amount of revenue from debit or credit card sales in the future. Businesses that do not take a lot of these types of payments might not be eligible for this plan. Typically a percentage of the sales, around 8-10 percent, will be negotiated in advance and this will be automatically paid to your lender each business day.
Revenue-Based Loans- These loans give you an immediate source of capital in exchange for a fixed amount of the future revenue from your business in the future. This is ideal for seasonal businesses or businesses that rely on invoices to get payments. A fixed payment plan will be set on a Monday-Friday schedule but can change if the amount of revenue your business brings in changes significantly.
You can get business loans from your bank, but in most cases only one out of ten applicants for these resources are accepted. However, most direct lenders accept at least seven out of ten applicants, which increases your chance of getting the funds you need more quickly. As an added bonus, our service allows you to apply for a loan for free and offers you more options to choose from with a single request where you will only be offered one loan from your bank and you will usually be charged an expensive request fee to get it. This way you don’t miss out on opportunities you might need to further your business and get funding for new projects.