Many business owners may require an external source of financing at some point. Whether you’re launching a new business, bridging a cash flow deficit, or expanding a business, it’s essential to consider your financing options carefully. The two most popular options are taking a business loan or applying for a business line of credit.
A business loan is the best option for most people. It allows cash-strapped small businesses to finance a significant investment, a major acquisition, or expansion, usually with fewer limitations and lower interest rates. However, the comparison isn’t always this cut-and-dried.
Read on to find out which financing option suits your specific business needs.
Business Loan Pros and Cons
Pros
Extended repayment periodsLower interest ratesReceive a lump sum upfrontPredictable payment plan
Cons
Slow to fundRigid repayment termsStricter credit score requirements
Business Line Of Credit Pros and Cons
Pros
Flexible repayment structureGenerally easier to qualifyQuick funding timesOngoing access to capital
Cons
Lower borrowing amountsShorter term lengthHigher interest rates
The 11 Best Business Loans for 2022
No matter your company size or capital needs, we’ve identified the top 11 best business loans available. Read our in-depth reviews on each to see which might be the best fit for your company and future plans.
Bluevine — Best for established businesses seeking lines … Read More