Whether you run a large corporation or are just starting out, running a business requires substantial amounts of money and resources. Business loans are one tool to help you finance your company and its day-to-day operations.

Different types of bussines loans have varying interest rates and terms, so it’s important to understand all your options.

Equipment Loans

Whether you need a backhoe or a trash compactor, equipment loans can help equip your business with the tools it needs to thrive. This type of small business financing typically offers competitive interest rates and long repayment terms. Some lenders also offer flexible payment options. Buying equipment with a loan instead of leasing may also allow you to preserve your working capital and cash flow.

Business owners have a variety of loan options, including term loans, lines of credit, SBA loans loan for 30000 , equipment financing and invoice financing. Each option comes with its own eligibility requirements, interest rates and terms. It’s important to understand your options so you can choose the best one for your business.

When choosing a lender, consider their reputation, speed of funding and additional fees. Some lenders require specific documentation, such as account statements, tax returns and property reports. Others may require a personal guarantee or other collateral.

Look for a lender that provides flexible repayment plans, such as monthly, quarterly, annual or semiannual payments. You may also want to choose a lender with a lower minimum credit score or less strict requirements for new businesses. For example, Accion Opportunity Fund offers low interest rates and lengthy repayment terms to startups, minority- and women-owned businesses and borrowers with limited credit histories. These lenders may be slower to process applications, however.

Lines of Credit

A line of credit is a form of revolving business financing, which means that you can draw on funds throughout the month as you need them and only pay interest on what you use. You can choose from secured and unsecured business lines of credit. Secured lines of credit require that you put down a cash deposit or other form of collateral to guarantee repayment if you fail to pay back the loan. This makes them a better choice for businesses that need flexible funding and may struggle to meet income requirements for traditional loans or other forms of business financing.

Unsecured lines of credit do not require collateral, but lenders typically review your financial history and other data points to approve you for the line of credit. These types of lines of credit often have lower loan limits and are more similar to business credit cards in how they function. Choosing a line of credit is ideal for businesses that want to manage cash flow fluctuations or jumpstart growth initiatives that may take time to mature.

When applying for a line of credit, make sure to ask lenders about their fees and loan terms. Many online lenders offer a streamlined application process that allows you to link your business bank account for fast approval and funding.

Real Estate Loans

There are several different types of real estate business loans available to help your company purchase a new property or renovate an existing one. These loan options include a variety of terms and interest rates, so it is important to take the time to thoroughly analyze your options before choosing which type of financing to pursue. It is also recommended that you consult a certified public accountant or financial advisor before making any final decisions regarding your business’s financing needs.

Traditional brick-and-mortar banks are often the best source for real estate business loans, as they typically offer the longest terms and most flexible LTVs on the market. However, they will require that your company meets certain requirements to qualify for such a loan, including having strong business and personal credit ratings, excellent financials, low debt, and sufficient cash flow to make the monthly payments associated with this type of financing.

Alternative lenders, such as private investors and hard money lenders, offer real estate business loans with much shorter terms than those of traditional banks. These short-term loans are often used as bridge financing to help your company purchase a property quickly before you can secure a traditional commercial real estate loan.

Other Business Loans

There are a number of other types of business loans offered by online lenders and brick-and-mortar banks, including unsecured and secured lines of credit, invoice solutions and SBA loans. Each type of financing offers its own set of rates, terms and eligibility requirements.

For example, a business term loan provides a lump sum of money upfront, which you pay back over a predetermined period of time with fixed monthly payments. This is a common form of small-business financing. Business credit cards, on the other hand, are revolving lines of credit that you can draw from and repay as needed. These are typically easier to qualify for, but come with higher interest rates than traditional term loans.

Max Freedman is a writer for Business News Daily, where he covers a variety of valuable topics for entrepreneurs and business operators. His experience running a company and performing hands-on reviews give him unique perspective on business products, services and software. He has also written extensively about leading accounting software, POS systems and digital payroll solutions. He has a bachelor’s degree in economics and history from the University of Washington.