If you are a business owner, you might want to look into an SBA loan for funding. The U.S. Small Business Administration offers these loans, which you can use for almost anything.
Though there is a lot of paperwork to get an SBA loan, there are many advantages that may make you want to consider this type of loan.
Advantages of Getting an SBA Loan
1. Low-interest rates. As a business owner, it is often scary to take out a loan, especially in the beginning. You are spending money, but you aren’t seeing much come back in. You may worry about paying it back. Lucky for you, SBA loans offer a low-interest rate. In fact, you can get a loan for as low as 6.75 percent, making it an affordable option when it comes to borrowing money.
2. Low down payment. Another concern is the down payment. Most business owners don’t have a lot of extra cash laying around to use as a down payment. Instead of the usual thirty percent down payment, you may be able to get an SBA loan for only ten to twenty percent down.
3. Good repayment terms. Most loans are shorter loans, making the monthly payments quite expensive. However, with an SBA loan, you can get up to seven years to pay off any working capital. You might be able to get a loan for ten years when you purchase equipment and twenty-five for any real estate.
If you are looking for an affordable loan for your small business, you should consider an SBA. With low-interest rates, smaller down payments, and good repayment terms, it might be more affordable than you ever imagined! You might even be able to afford that nice piece of equipment that you were holding off on purchasing.
Contact us to help you figure out if an SBA loan is right for you.
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