If the entrepreneur bug has stricken you and you are keen on starting your own line of business, you must first look at the available financing options. A recent survey revealed dismal statistics that show how banks rejected loan applications of small business owners. click here if you want to avail a loan for your business or you can first compare the various rates and calculate mortgage on www.bankrate.com
Types Of Loans
Most of the financial institutions offer term loans, a business line of credit, and equipment financing.
Term Loan- As the name suggests, you have to repay the loan within a given term or time period, often called the repayment period. A term loan that is offered by a bank has a fixed repayment schedule and a fixed or floating rate of interest.
Line Of Credit (LOC)- This is a kind of loan that the lending bank offers the customer. The borrower can avail the funds from the prescribed LOC any time, as long as it does not exceed the limit.
Equipment Financing- If you want to buy new equipment or machinery for your business, an equipment loan should come handy.
Now, let us take a look at the best banks suitable for small business loans.
This bank has rightly earned the moniker, ” America’s leading small business lender.” They have lent approximately $35 billion to companies that had an initial investment of $20 million or less. Wells Fargo offers Unsecured Business Loans for their customers.
With this unsecured loan, you can avail funds ranging from $10,000 to $100,000 and more. The repayment period varies from one to 5 years, and rate of interest varies from 6.50 percent to 22.99 percent, based on the borrower’s eligibility.
Bank of America
Up next is BOA that has lent $33 billion capital to small business owners. Interested individuals can choose their unsecured loan that provides credits ranging from $10,000 to $100,000 with zero collateral as security. Their rate of interests vary considerably and depends on factors like the customer’s relationship with the bank.
Say, for example, you have an account with them. You have a reputation of managing your finances wisely, and you have a good credit score. Keeping these factors in mind, you stand a good chance to benefit from low-interest rates.
With a total of $2.4 trillion in the form of assets, JPMorgan comes in third by lending $19.1 billion to customers during the first quarter of 2015. They have partnered with OnDeck capital, and in this program, the loans are made available from Chase’s assets while OnDeck Capital simplifies the process of obtaining a loan with their underwriting technology.
More than 4 million small business owners have their names in the database, which is later pre-screened to be eligible for the Quick Capital loan. The lucky one can apply for the $250,000 loan option.
One of the advantages of obtaining a loan from Chase is the transparency factor and quick responses. You get loans at a much lower rate when compared to other big names.