A Guide of the Best Business Loans for Different Industries

A Guide of the Best Business Loans for Different Industries

As a new entrepreneur, it can be challenging to know which type of business loan is right for you. The type of business you operate, your industry, your current financial situation and credit score, and the long-term goals you have for your new company are just several things to consider as you search for the perfect business loan.

Business Credit Cards and Franchise Startup Loans Can Be Ideal for New Businesses

Any business that you have launched in the last year is a startup, and some financial institutions cater specifically to new entrepreneurs. A business credit card is just one example. While the limit might be low at first, you can request an increase after making timely payments several months in a row. You may even be able to find a card with a 0 percent introductory interest rate.

If you recently bought a franchise, applying for a franchise startup loan can help you get through the first hectic few months. Lenders typically have more lenient requirements for this type of loan since the business is already established.

Consider a Small Business Loan if Your Company Has Been Established for a While

You could be a good candidate for small business lending if you operate a company that provides intangible services like vacation experiences or third-party billing. These loans can come in handy to help you maintain positive cash flow as you wait for customers to pay their outstanding invoices. The loans are short-term, so you can repay them as soon as your accounts receivable payments come in without incurring an early payment penalty.

A Business Line of Credit Offers Flexibility

A credit line for your business is like a credit card except that it typically offers a higher credit limit and lower interest rate. You only pay interest on the amount you borrow, and you can borrow against your credit line as much as you need to without applying for a new loan.

Green Apple Funding is available to help you evaluate your various business loan options. Please request an appointment today.