As your business grows, you’ll likely need to get a business loan – whether you plan to expand, enhance your products and services or need an infusion of cash for emergencies or seasonal concerns. With so many business loan options available, it may be overwhelming to determine where to start. Although the process for approval may be different with each lender, consider your answers to the following questions to help you choose the right loan for your business.
How much money do I need?
How much you borrow will directly impact the repayment terms and rate on your loan. But, it is extremely important that you borrow what you need because getting a second loan may be more difficult.
Do I want flexibility or fixed terms?
Let’s say you plan to remodel your office. Using a fixed-term business loan makes sense because you can use your contractor’s bid to provide exactly how much you’ll need to borrow from your lender. You can easily budget your repayment amount because it stays the same from month to month. Fixed-term business loans are great for things like equipment upgrades, cash flow assistance, buying a vehicle and start-up costs.
On the other hand, if you’re in need of cash to make computer upgrades or market your business, a business credit card is an excellent option to consider. You’ll qualify for a credit limit to use at your discretion – you’ll only repay the amount you spend. Plus, some business credit cards offer rewards you can use to save money on future purchases.
Do I want a secured or unsecured loan?
Secured loans (loans secured by some type of asset or guarantee) usually offer a slightly lower rate than an unsecured loan (such as a credit card). Additionally, you may receive a more substantial loan amount with a secured loan than an unsecured loan. But, if you need quick cash, an unsecured loan may be a better option to consider as you can typically get funds within three days of your approval.
What lender should I use?
It’s best to choose a lender you trust, such as Pinnacle Bank. But, do your research and ask questions. Read through the available loan terms offered by the lenders you’re considering. If you have any questions about the business loans offered by Pinnacle Bank, give us a call at 877-759-7939.
Learn more about the business loans available at Pinnacle Bank here. https://www.pinnaclebank.com/business-banking/business-loans/