Depending on the nature of your business, you may need quite a bit of money upfront to get things up and running, or you may be well established but need to secure a loan for growing and expanding. Navigating business loans and finding the right solution can provide your company with the extra cash it needs to succeed, as long as you can manage the payments and avoid excessive debt.
Types of Business Loans
There is a wide variety of types of loans you can apply for depending on your specific needs. Some of the most common include:
- Lines of credit — These function similarly to a credit card in which you are granted up to a certain credit limit and can access those funds at any time and in whatever amount as long as you don’t go over your credit limit. As you continually pay off the outstanding balance, the available credit replenishes. You are only required to pay interest on funds that have been withdrawn.
- Term loans — Borrowers are given a lump sum of cash up front that is repaid over an agreed-upon period and within specified lending terms. These loans require collateral in exchange for the loan as well as a down payment. You can often secure higher loan amounts through a term loan and can make lower payments over a longer period.
- SBA loans — These are loans that are guaranteed by the U.S. Small Business Administration, meaning if you are unable to pay your lender, the SBA will pay the guaranteed amount. The SBA guarantees 85% of loans that are $150,000 or less and 75% for anything more. These types of loans can be tricky to get, and you need to be in excellent financial health due to the nature of the guarantee.
How to Receive Funding
Loan approval and rates will depend on the overall health of your business, how long you have been in business, and your personal credit. For example, many lenders require a minimum annual revenue for a business loan or line of credit, ranging from $50,000 to $250,000. To qualify for most loans, you’ll be required to have been in business anywhere from six months to two years. When it comes to credit scores, lenders tend to offer their loans to business owners with scores in the good and excellent ranges.
Most banks and credit unions allow you to apply for a business loan or line of credit online or over the phone. There is also the option to apply for loans through SBA lenders and online lenders.
At Republic Bank, we make navigating business loans a little simpler. Our Express Business Loan offers a quick and easy application process. You can apply in as little as five minutes and receive decisions within 24 hours once your application is completed. Our Express Business Loan has a five-year term, and the Line of Credit has a two-year term. Rates are very competitive and based on business health and personal credit. They range from Prime +3.50% to Prime + 12.00%.
For commercial/industrial and real estate loans, you can quickly get in touch with one of our bankers to customize lending solutions that meet your goals. Whether you need a loan of $50,000 or $5 million, navigating business loans isn’t too difficult when you work with Republic Bank of Chicago.
Get started today by applying online, or if you have additional questions and want to speak to one of our expert bankers, give us a call at 800-526-9127 to learn more about our products and services!