Small business loans are specifically designed for business owners who need funds to support operations. Small business financing typically offers better interest rates compared to personal loans and approval is typically based on the business credit.
Every small business needs some capital in order to get up and running. People usually start their businesses with money they have saved and, sometimes, donations or loans from friends and family. Sometimes, money from these sources is not enough and so the business owner starts to look for other sources of funds.
As an entrepreneur, you may need to hire staff, rent a storefront or office space, buy some merchandise or invest in equipment or technology necessary for managing day-to-day operations.
So how do you get enough money to get your small business off the ground?
Securing a small business loan is one way to build a company or help an already existing one grow. These loans are especially crucial now that so many small businesses are struggling due to inflation and other economic factors.
Types Of Small Business Loans
Small business loans are financing options that lenders can provide small business owners in order to help them achieve their goals. It’s an umbrella term that encompasses a wide variety of different loans, many of them designed specifically for small businesses that want to access capital and grow.
When you apply for a small business loan, lenders decide whether or not to approve it by conducting a review of your company’s credit, which is determined by factors such as total revenue, credit score, and the amount of time the company has been in business etc.
There are various types of business loans, some of which are listed below:
Business Terms Loans
These are the most common type of loans available to small business owners. This is the type of loan where a business borrows a lump sum from a lender and then pays it back with interest in instalments over a number of months, sometimes even years.
Small Business Administration (SBA) Loans
These are government loans or loans backed up by banks. These types of loans are known for having incredibly low-interest rates and long repayment terms, both of which are beneficial for small business owners.
Commercial Mortgages
These provide financing for commercial properties such as physical shops, restaurants, and office spaces. You can also use a commercial mortgage to remodel or expand one of your existing commercial properties.
Business Lines Of Credit
This provides entrepreneurs with a flexible form of financing. You’re free to use it when you need it, and then only pay interest on the money you use.
Accounts Receivable (A/R) Financing
This type of loan allows you to borrow against unpaid invoices.
Benefits Of Small Business Loan
– It helps businesses grow.
-Typically convenient, easy to access, and made quickly available.
-Better interest rates
– All your profits are yours.
We usually keep good news at the end!
Oze brings you the best of all worlds when it comes to loans! We offer the best interest rates and provide all these types of loans in one. Awesome right?
We are committed to ensuring that small businesses save time, get paid, and get loans right from their smartphone.
Want to know more about Oze loans? If you need more information, feel free to chat with our support team in Ghana (+233 54 575 0476) or Nigeria (+234 913 000 0118). You can also send an email to coach@getoze.com.