A guide to small-business loans: Part 1
March 04, 2015

Getting a small-business loan can help you start up a new operation of your own, or expand your current one. Know what your options are when applying for your loan and can use that knowledge to make a more informed decision regarding what is best for you and your business.

Bank loans
One of your options for a small-business loan is going to a bank. Consider applying to a few different banks if you decide to take this route. Community banks may be an especially valuable choice to consider. Typically these smaller banks have a vested interest in their communities. They want to see local businesses develop and grow in the neighborhood. Biz Filings noted that community banks may even offer you the best financial option for your operation.

Small Business Administration
The SBA, a government organization, offers a great option for small businesses looking for a financial loan. According to Forbes, loans from SBA provide affordable options and your small business may qualify even if you do not have enough credit history. However, these loans tend to be longer term and require a higher volume of documentation.

According to SBA.com, there are a number of loans available to those interested in borrowing money for their vision. Some of the lending programs offer loans as large as $5 million and focus on expanding small businesses, while others are more short term and have a maximum loan amount of $50,000.

There are SBA offices located throughout the U.S. If you are interested in applying for a loan through this channel, set up an appointment and discuss which lending program is best for you and your business.

Business credit card
If you already have a business and are looking to invest in an integrated payment system or development of other payment software, you may want to just use your credit card to pay for these smaller expenses. Forbes even recommended using a personal credit card for your transactions. No matter, if you decide to use plastic to pay for developments and upgrades, keep a paper trail. Always keep detailed expense reports organized and clearing when making purchases.

Make sure that you also make all payments on time and if you are able, pay more than the required amount. When you are capable of paying off the entirety of the bill, do so as soon as possible.

Nexus: G-WEBCD4