subject: Broad Categories In Which Small Business Loans Can Be Subdivided [print this page] There are some broad categories under which small business loans are available to entrepreneurs. Each of these broad categories can be further sub-divided into specific types. They are amazing and can mean just rewards for business owners. The broad categories of business loans for entrepreneurs are Loans for Women, Government loans and Bad credit loans. These categories can be broadly described as below:
Women Small Business Loans:
There are many financers who want to be of use to only women business owners. So, a female owned company can find help from a number of sources. They include both private parties and SBA backed lenders.
SBA Backed financer: There are some lenders that bring government loans for women owned small businesses. It is required for people to understand such guarantees and approach such financers that specialize in disbursing government loans to female entrepreneurs.
Private financial assistance programs: These programs are specifically created for women who are on the look out to establish their business and need financing for this purpose. Such private financers provide a level of understanding and after discussion with the borrowers disburse small business loans for women to interested people.
Small Business Government loans:
The government loans can be microloans, 504 loans, 7 (a) loans and others. These forms of grants are easily available to business owners who seek help from Fed and apply for government backed loans. It is open for all and people can use it as working capital, to pay employee salary and for buying equipments.
7 (a) loans: This is an SBA initiative to reach out to business owners that are in dire need of financing. They are available to entrepreneurs operating in rural areas and are accessible for exporters too. It can be found with the help of local financial institutions too.
504 loans: This loan program got introduced to help businesses
develop and become successful on receiving extended grants. Under this program, up-to $2.0 million is made available to entrepreneurs. One has to be a company having profits not more than $7.5 million and the loan can be accessed through CDCs.
Microloan: It is a smart short term loan that is available to business owners who need working capital, inventory and supplies. It can be acquired through an immediate lender in a specific area. The fund is small and so cannot be used to pay off debts.
Bad Credit Loans:
It is really hard pressing to find loans through traditional means. Organizations having a bad financial history find it extremely difficult to secure loans. So, no matter what, loans can get forwarded through private lenders even if an entrepreneurs credit record is bad. The following are funds available to business enterprises.
Payday grants: This is also a small business loans and the funds are made available instantly. The interest charged may be high in this case. It may be based on previous fund flow records of an organization. But the borrower should do research before getting involved.
Merchant advance: This is a good option for people who cant secure loans through traditional methods. Merchant cash advance can be found within 72 hours of filing applications. The borrower has to sell some part of his future credit card sales to the lender that would be returned back when the debt is repaid. The cash amount depends a lot on the condition of the company.
