![]() ![]() They’re supported by your company’s collateral or existing assets. Long-term loans are geared toward growth opportunities, like a new building or heavy equipment purchase for manufacturing. ![]() Long term (repaid between six and 20 years).You’ll want to use these loans for projects that may take a few months or years to earn a return on your investment. These loans are good for larger scale projects, like equipment purchases, or refinancing old business debt. Intermediate term (repaid between one and five years).You could use a short-term loan to purchase inventory for the holidays, take advantage of an inventory deal, or cover payroll if you are experiencing a lack of funds. Businesses choose these loans over merchant cash advances because they have lower interest rates and are easier to get. They also come in three different loan options, each serving a different purpose for your business: Terms loans have a few things that set them apart from other financing options: They use term loans to buy assets (such as equipment) or growth investments, versus using it to cover day-to-day expenses. These loans may require a big down payment to lower the loan payments and total loan costs.Įstablished small businesses, typically with two years in operation, generally opt for term loans. Term loans are set at either a fixed or a floating interest rate. Let’s look at a few common ways to fund a business:Ī term loan is a common small business loan, in which the bank loan is a fixed amount that is repaid at regular intervals over a set period of time. Types of small business financing options Business loans can be an asset to business, but it's not something you should take lightly. It’s also the most important financial choice you’ll make in your journey. Learn more about Shopify Capital The best small business loans and funding optionsįunding is one of the first things to think about when it comes to your business. There is no lengthy application process and no paper forms to fill out. Through Shopify Capital, you get the money you need to grow your business with just a few clicks. ![]()
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