Business Loan Types Compared

The main business loan types are: SBA loans (government-backed, best rates, most paperwork), conventional term loans (fixed payments, 1–10 year terms), business lines of credit (revolving credit, draw as needed, best for cash flow gaps), equipment financing (loan secured by equipment, up to 100% financing), invoice factoring (advance on outstanding invoices), and merchant cash advances (advance on future sales, very high effective APR — avoid if possible)..