Wiegers Financial & Benefits
  • We help business owners, households, retirees and students reach their financial goals through expert investment and insurance planning.

  • We help business owners, households, retirees and students reach their financial goals through expert investment and insurance planning.

  • We help business owners, households, retirees and students reach their financial goals through expert investment and insurance planning.

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Small Business Loans

Wiegers Financial & Benefits

We know how hard it is to start your own business. And how hard it can be to keep a business afloat. But at the same time, we are confident that your idea is worth the effort and will continue to develop it.

If you are facing financial difficulties in your business, a small business loan can help.

What Is a Small Business Loan?

Small business loans are types of financing that are provided to companies for different purposes by lenders. There are several types of small business loans that can help entrepreneurs. The type of loan you need depends on your goals, so you can choose the one that best suits your situation.

Types of Small Business Loans

There are several types of loans for small businesses. They have different conditions and nuances. Some are good for large loans; some are fine if you have some sort of collateral.

Small Business Line of Credit

A small business line of credit is, in a nutshell, a credit card for your business because it works in a similar way. You have a credit limit from which you can borrow money when you need it and as much as you need. You can repay your debt, or you can pay only the interest on the loan.

Accounts Receivable Financing

Accounts receivable financing involves selling your receivables or outstanding invoices to a lender so you can receive early payment for them. The advantage of accounts receivable financing is quick access to borrowed money. However, you will likely pay more for this type of loan than for all others, especially if your credit score is not too high.

Working Capital Loans

Working capital loans are not meant to pay off long-term assets or investments like some other small business loans. They are suitable for financing the day-to-day operations of your business, such as rent, payroll, and debt payments. Working capital loans have shorter terms and smaller amounts compared to other small business loans. It's important to remember that working capital loans are sometimes linked to your personal credit, which can suffer if you don't pay on time.

Small Business Term Loans

When you take out a small business term loan, you get a lump sum of money. You will pay it back at a fixed interest rate with regular repayment terms. Usually, this type of loan is repaid in five years and used to fund a specific investment for a small business.

Small business term loans usually follow an amortization schedule. That means most of your payment will go toward your interest initially.

SBA Small Business Loans

SBA loans are small business loans guaranteed by the U.S. Small Business Administration, a federal agency that helps entrepreneurs grow their businesses. A guarantee means that if you aren't able to make your payments to your lender, the SBA will pay out the guaranteed amount.

The SBA guarantees 85% of $150,000 or fewer loans and 75% of larger loans. The guarantee makes such loans very attractive but difficult to obtain.

Equipment Loans

Equipment loans can help you replace existing equipment or buy new equipment if your business is expanding. Typically, equipment loans require less documentation than other small business loans so that you can get financing fairly quickly.

Small Business Credit Cards

A small business credit card is similar to a regular credit card. However, there are a number of differences between them. A small business credit card can provide you with reporting features so you can categorize and track your expenses. It may also include a rewards program to help you save on general business expenses such as office supplies and marketing services. In addition, it is exempt from the Credit Card Act of 2009.

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