If you are a small business owner in America, chances are that you have joined the 70% of other small businesses that need financial assistance to get through challenging times.
Small businesses are the backbone of the American economy, and it is so important that they survive the turbulent paths that so many of them endure.
The great news for small businesses is that there are a range of options out there for them if they are even in need of a loan to get them through the tough times—and it doesn’t just apply for times of a global crisis like what we are going through now.
Here are five loans that every small business should know about.
- PPP loans
First things first, let us talk about payment protection program loans. There is a very high chance you are eligible for one and you would be crazy to not take full advantage of it. This PPP loan is a result of a two trillion dollar stimulus bill that was passed to help small businesses stay afloat in light of not being able to be fully operational due to Covid-19. A simple application form will give you access to 2.5x the amount you would need to cover your staff’s salaries at full for eight weeks. This money can also be used for operational expenses like rent and utilities. Best of all, if the loan is used appropriately, businesses can qualify to be forgiven in full on the loan.
In general, Lendio is one of the best small business loans out there during normal circumstances. This is because the application is easy to fill out and within 3 days, businesses will have a list of multiple lenders who are willing to finance a loan for them. They even can match businesses with lenders who are needing short term cash advances.
If your small business is needing a big business loan, BlueVine might be right for your business. Choose from loan funding from term loans, invoice factoring, or lines of credit—and can offer loans of over a million dollars! The application requirements to be eligible are actually very easy—with low revenue and credit score criteria.
Unlike other loan lenders, Kabbage provides businesses with one option—lines of credit. Your business’s bank account will be connected directly to Kabbage and they will evaluate there. The good news is, this means no application form required! Once the assessment is completed, your lines of credit will be accessible either via PayPal or deposited directly into your bank account. A great option if you are needing an instant loan.
- Funding Circle
We’ve all got one another’s backs—and such is the case with a Funding Circle loan. The loan scheme works through a direct peer-to-peer initiative. This means that your business will be connected with investors who are willing to back you. The application process is very rigorous, but this means that the loan lending rates are also extremely low and can be done in monthly payments.
Great news for small business owners in need of a little financial support—there are multiple options out there for you! Whether it is through a government-backed loan like PPP or an individual peer-to-peer backed loan like Funding Circle, there is bound to be a loan scheme that is right for you.
As with any financial decision though, it is always best to do your homework first and truly understand your obligations around accepting any type of loan. At the end of the day, the loan is supposed to help get you to success, not burden you with high-interest repayment plans for the rest of eternity.