Businesses need cash flow to operate – there’s no two ways about it. The good news is, business owners and operators can turn to small business loans when times are tight.
But, what small business loans and grants do you qualify for? Let’s tackle this question in a little more detail.
Types of small business loans and grants
Lenders offer several types of business loans and grants. This includes the following:
- Revolving line of credit. These loans provide financial relief for short-term financial issues.
- Invoice factoring. These loans enable you to borrow against outstanding invoices. When your invoices are paid, you repay the lender.
- Equipment loans. These loans allow you to borrow money to purchase equipment for your business. The funds are repaid in fixed instalments over a set period.
- Purchase order financing. These loans are used to pay your suppliers if you are unable to fulfil an order because of cash flow restraints.
- Unsecured business loans. These loans are not guaranteed through valuable assets, so they typically offer a higher approval rate.
What small business loans do I qualify for?
Different lenders use different eligibility criteria to determine who qualifies for various loan types. Here are some common considerations:
- How long you have operated in your industry
- How much revenue your business brings in
- Your personal credit score
- Your business’ debt record
- Any tax debt you are owing
Need a small business loan?
If you need a small business loan to purchase new equipment, resolve cash flow issues, or overcome some other financial hardship, the team at Cigno Business can help.
Please reach out to us today with any question or concerns. We’d be happy to chat with you about your business’ financial needs.