Small Business Loans

By — Published September 18, 2017

Small Business Loans

Small Business Loans

Small Business in the United States created her 63% of new jobs! However, running a small business is a lot harder than it seems. Many people want to start their own business, but never take into consideration all the moving parts that go into running a business of their own.

If you own a small business and are in need of a loan or a credit line. Here are some things to consider:

  1. Setting up a line of credit. A line small business line of credit provides the business owners a credit limit of up to $100,000. The business pays an interest on the money borrowed. You may repay the loan as you wish, for as long as you do not exceed your line of credit.
  2. Accounts Receivable Financing. This is a set up where a company makes use of its incoming, receivables, and any other money owed to them as a guarantee in a loan agreement. This is a case where a company uses its ‘incoming assets’ against a cash loan. It is a good way to get immediate cash for companies that are in need.
  3. Small Business Loans. A small business loan is typically a loan for a specific dollar amount and is used by business owners to manage business operations or expanding their business. Interest on small businesses loans is pretty straight forward. Your interest is paid monthly and the loan term varies from 6 months to 36 months. Interest options change by the type of loan obtained.
  4. Equipment Business Loans. In many cases factories and businesses that involved manufacturing relay on their equipment to give services or build products. A business equipment loan allows small businesses the option to take a loan in order to buy equipment. To secure this type of loan, the business must submit a down payment of at least 20% of the equipment cost. Equipment loans vary from $1,000 to $50,000. An equipment loan has a fixed or variable interest.
  5. Small Business Credit Cards. Most small businesses use credit cards to pay for many of their operation expenses. This is a good way to build up the business’s credit line as well as obtain points that can be used in ways such as travel. Credit Card companies offer a number of set ups when you get a business credit card. Some offer 0% interest for up to 12 months, cash-back, and other rewards.

United States Small Business Facts:

  1. A small business is an independently owned company with number of employees of less than 500. A small law firm that has 30 employees is an example of a small business. In many cases a small business employees less than 100 employees.
  2. Equity in small business is not publicly traded and is personally owned by the business owners.
  3. Another measure for small business is an annual revenue of less than $25,000,000.
  4. There is anywhere between 25 million to 30 million small businesses in the United States.
  5. In the United States, about 50% of the working population works in small businesses.
  6. Over 500,000 new businesses get started and registered each month in the United States.
  7. Over 50% of small businesses are managed and operated from the owner’s homes.
  8. Over 50% of small business owners are over 50 years old. Less than 20% of small business owners are under the age of 35.
  9. 10% of small businesses in the United States close shop every year!
  10. 63% of new jobs every year are created by small businesses.
  11. 19% of small businesses in the United States are family owned.
  12. About 2% of small businesses in the United States are franchisees.

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