If you are reading this, chances are high that you’re seriously considering a small business loan — and you want to know whether it’s truly worth the plunge. First of all, congratulations! That’s a huge step toward keeping your business afloat and profitable for the long term.
To help you make the most informed decision for your business’s financing needs, we’ve put together this list to show you the pros of small business loans. (Hint: they’re not what you’re used to seeing on the net!)
4 Advantages of Small Business Loans You Might Not Know About
Here are the 4 advantages of small business loans you might not know about in 2022.
Pro #1: Reasonable Interest Rates
The interest rates attached to small business loans are—dare we say?—very good. Banks, online lenders, and the rest are all obligated by law to offer a deal that is at least in line with what their competitors are offering.
Of course, the interest rates are still going to allow enough room for lending institutions to see a healthy return on their profits. But the rate you get is often better than most personal loan options.
SBA 7(a) loans, for example, come with an incredibly low interest rate, sometimes as low as 6.75%. As for online term loans, interest rates start from a meager 9% or lower.
What’s more, the interest you pay is often tax deductible. You will have to check with your local authority to see whether or not this is the case with your business, though.
Pro #2: Ease of Accessing Capital
You’re likely the last person we have to tell that accessing small business financing is a lot like spreading butter on bread—it’s extremely easy, or should we say easy-peasy? The emergence of alternative lenders has flared up a world of choices of non-bank loan options that are more comfortable to apply for.
Upon filling out the necessary paperwork, you might be eligible for a loan of over $100,000. Even better, the amount will likely be wired to your account in less than three business days. If that isn’t ultimate convenience, we don’t know what is.
For example, consider Zinch Financial. Zinch isn’t your average online lender—the company’s aim has always been to make financing incredibly inclusive and flexible, offering solutions that are easy to access, understand, and use. With Zinch, you can qualify for up to $250,000 in less than 24 hours—yes, just one day! Attaining small business loans just got easier.
Pro #3: The Profits Will Remain on Your End
Most business owners take out a business loan because they want to expand their territories and steer the business in a new direction. This means they want to make it more profitable.
If you get this money from an investor, they’ll expect a return on any money you make. The performance and trajectory of your business will be directly linked to how much they get in return.
However, that’s not the case with small business financing. Once you fill out the necessary paperwork, you inherently put pen to paper on a fixed interest rate. That means you’ll pay the same amount of money back to the lender no matter how big or small your profits become as a result of your investment.
Pro #4: Convenient Repayment
It goes without saying that small business loans come with convenient repayment options. Banks, online lenders, and the like offer such flexibility because they understand the difficulties that often plague small businesses and such, design their repayment plans accordingly.
For starters, these lenders may offer a repayment plan as per a business’s current cash flow to avoid the hoops the financial management. In addition, borrowers may choose bullet repayments for periodic repayment. The best part? They can also increase or decrease the EMI as per the financial condition of the company.
The Final Thoughts
The above-listed information will help you to take the benefit of small business loans for your own sake. The world of small business financing is awash with a slew of advantages. And in many ways, the pros here far outweigh the cons. Good luck!
Read Also:Tags: Advantages of Small Business Loans , Business loans , Reasonable Interest Rates