Businesses vary from small scale businesses to large scale, and the same goes for their capital requirements. Some businesses require fewer investments; however, some are unable to get started without a huge capital. Therefore it is crucial to understand how much investment is required, not only for starting a business but also to establish it. There are several business loans, which are provided by various organizations and banks for small scale as well as large scale businesses. It is essential to have sufficient knowledge about getting loans, as there are different rules and regulations with each type of loan. Loan providing organizations, either banks or private lenders allure you with attractive loan offerings; however, it is crucial to determine the interest rates along with other risks that are associated with those loans. Some of the essential tips for loan processing and application are as follows;
- It is essential to do a small analysis before taking loans for your business to be clear about the rules regulations, documentation, and interest rates incurred upon the return of those loans.
- Another important thing is to check and analyze your credit score before initiating the application procedure. If your credit scores are higher than they will be beneficial for providing better terms and lower interest loans to you as a sole proprietor, moreover you should provide a strong business plan for showing to the lenders or banks with whom you have decided to apply for the loan.
- It is advised for the new business entrepreneurs to have significantly organized and well-thought-out business plans to receive fast and secure business loans.
- There is a significant amount of information available about the application and documentation processes of fast small business loans. They assist you with how to get a fast application and to receive business loans for starting your successful business venture.
Five Best Small Business loans
As there are several choices available in the market on the receiving of loans. The following are the top five types of loans for quick access with the best services.
- SBA EXPRESS LOAN
The SBA Express loans are one of the famous types of fast and small business loans which are providing the following benefits:
- Most simple and flexible process of application.
- Within 2-3 days of response time.
- Lighter documentation requirement
- It can provide up to a maximum of $350,000 of the loan amount.
- The payment period is as long as ten years.
- 5-6% interest rates.
- Best for small business entrepreneurs and start-up businesses.
Along with the above benefits, the SBA Express loan is providing significant ease to your loan application with a guaranteed process through “Small Business Administration” (SBA), which is an accredited US Agency for small businesses.
- Export Express Loans
The Export Express business loans are business loans, which are provided especially for the export businesses. This loan has the following benefits:
- Flexible and simplified application process.
- The usage of the fund must only be for the export department of a company or business.
- Same ten-year repayment program.
- It can provide a maximum of $500,000.
- Least interest rates percentage as that of prime interest.
- Best for exporters, especially small scale exporter business.
- Guaranteed by SBA, therefore, it is secured and government-guaranteed.
- Swift response time, as low as 2-3 days.
The Export Express loans are for small scale business exporters who are unable to apply for traditional loans because of their small scale set up. Therefore for many business entrepreneurs, the SBA Export express loans are ideal and beneficial as they require lesser documentation and have security by a government guarantee.
- Peer-to-Peer Loan
The peer-to-peer loans are another simplified type of loans that are rapidly growing and successful these days due to their less rigorous eligibility requirements and their flexibility as compared to other kinds of loans. The following are the top benefits of Peer-to-peer loan:
- Flexible and simplified process of application.
- $35000 to $300,000 borrowing capacity.
- The repayment period varies from five to seven years period.
- Interest rates may be high due to the ease of less documentation required.
The peer-to-peer lending platforms are the most rapidly growing market these days due to the less rigorous documentation and quick transfer of funds. Some of the famous P2P site examples are; Upstart, Funding circle. , Lending Club, Prosper.
Microloan provides the loans as low as $50,000 or less for new business start-ups and other businesses. These loans are for facilitating the small businesses as they provide loans on small interest rates. The benefits of Microloan are as follows:
- Ideal for small business start-ups
- Lower interest rates
- Flexible repayment plans
- These loans are for disadvantaged communities.
The Microloans are known as ideal for small business start-ups, which require low interest and short term loans. These loans are by the microlenders who operate non-profit financing.
- Business Line of Credit
These business lines of credit are usually working and operating as credit cards as they appear as a credit card at the time of application of loan. They are feasible for small credit options for small scale business owners. The business lines of credit have the following benefits:
- Ranges from as low as $5000 to $150,000 for small business start-ups.
- A quick time of approval from one-five days.
- Lower interest rates than an average credit card.
- Start-up business owners can apply for a line of credit through banks or online creditors.
These are beneficial for small scale business owners as they are available for small start-ups, and they can be attained in as fast as 36 hours. Like credit cards, they also charge monthly interest. As microloans, they also have less stringent requirements for borrowers of loans. They are typically classified as unsecured business loans as they do not require collateral as in the case of secured business loans. Some of the famous examples of Line of Credits are Kabbage, OnDeck, StreetShares, and Fundbox.
Many small and fast business loan options are available nowadays, which are provided by several banks and non-profit organizations for the assistance of small as well as medium scale businesses. These small, fast business loans range from as low as $5000- $300-000 loan amounts depending upon the type and requirement of businesses. These small and fast businesses need fewer requirements of documentation along with flexible repayment options. However, they are subjected to significantly higher interest rates if they get provided with a quicker and fast transfer of funds. Therefore to receive instant and fastest loans, you need to repay with higher interest rates but with flexibility and ease of getting business loans for your start-up business.