Enlarge your Small Business with a Business Loan

best small business loan

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Would you look through the eyes of Greed, or listen to your honest Heart?

Every budding entrepreneur faces this dilemma at least once in the game of life- Scrounge enough funds to make it through daily business errands, or go all in and take your adventure to the next level?

Math equations and accounting postulates answer the question fairly easily in theory, but the real-life dynamics of the business world are only known to the Boss Man, and that is where it gets really complex.

The choice between opting for a Working Capital Loan to cover up the daily expenses in order to stay away from daily cash troubles; and going for a Business Expansion Loan to scale one’s ‘not so small’ business to new heights can be a tough one.

If you look at it as an outsider, it looks like a decision between peace of mind and more money. Here’s how:

  • Even if a working capital loan means no risk, the payback period is too long for a sum that small
  • Business expansion loans may be disastrous for the business if taken up without proper planning

This brings us down to the real deal:

Is it better for a business to stay where it is and get a working capital loan?

Or should the entrepreneur take a leap of faith and revolutionize his venture with business expansion loan?

To answer this nerve- wrecking question, we did a thorough research with credibly. Credibly offers both working capital loans and business expansion loans, so it would be easy to delve into the specifics of both from the same lender.

Let’s begin the showdown between Working Capital Loan and Business Expansion Loan by Credibly!

Credibly’s Working Capital Loan

Working capital loans are perfect for healthy small businesses with steady revenue. Repayment periods start from half-year to seventeen months. The total working capital loan amount goes up the highest limit that Credibly offers for any type of loans. Let’s have a look at the specifics:

Loan Amount

Purpose of a working capital loan is to run the daily errands and cover up recurring expenses. For this purpose, credibly’s working capital loan amount ranges from $5,000 to $250,000.

Term Length

The term of loan should be decided on one’s own convenience as a working capital loan should be repaid at the earliest. Credibly’s term length goes from 6 to 17 months.

Fee Structure

  • A one-time origination fee of 2.5% is deducted from the proceeds at the beginning, which is pretty nominal as compared to recurring origin fees from other lenders.
  • As for the interest rates, average Factor Rate of 1.20 is charged on the total loan amount.

Qualification

  • The business organization should be at least 6 months in the business;
  • $15,000 average monthly bank deposits are a minimum requirement, and they’re easy to attain for any small business.
  • A decent 500+ Credit score is a must for the small business.

Paperwork Required

  • A signed business loan agreement;
  • Business mortgage statement if it’s entrepreneur-owned; or a business lease agreement if it’s on a rent.
  • Government-issued picture ID of all owners
  • Bank statements as recent as 3 months

LEARN MORE…

Credibly’s Business Expansion Loan

Thinking of expanding one’s business is a toughie in itself; it requires lots of planning and strategizing and one super-determined team of risk takers.  If a small business enterprise showcases a proven track record of success and financial security, applying for a business expansion loan through credibly would be easy. Let’s read between the lines:

Loan Amount

Business expansion is like a Kaiju (monster); it gobbles up lots of greens before spurting out returns. Small businesses can procure $50,000 to $250,000 from credibly’s business expansion loan and feed it to the monster, then just wait for it to blow…with money.

Term Length

Business expansion loans change the course of your small business, and it is a crucial decision that requires a long-term plan, but a term length of 18-24 months might be too soon for a small business to yield fruits from the expansion aftermath.

Fee Structure

  • The initial fee is same as credibly’s working capital loans, with an origination fee of 2.5% being deducted from the proceeds at the beginning.
  • The interest rate ranges from 9.99% to 36.00%, depending on the loan amount and payback period.

Qualification

  • The small business should be more than/at-least 3 years old.
  • Along with minimum $15,000 average monthly bank deposits, the small business should maintain minimum daily balances of $3,000 in the records.
  • As the payback period is short and the money high, a good 600+ Credit score is a must for the small business.

Paperwork Required

  • A signed business loan agreement;
  • Business mortgage statement if it’s entrepreneur-owned; or a business lease agreement if it’s on a rent.
  • Government-issued picture ID of all owners.
  • Bank statements as recent as 3 months.

LEARN MORE…

Small businesses thrive due to risk, determination, sweat and blood. Now that you’re aware of what credibly’s working capital loan and business expansion loan offer it is fairly easy to make a decision.

All you need to do is decide- Should you ignite the fire underneath and take your small business to the next level with credibly’s Business Expansion Loan; or live in peace without taking a risk and ease up your life with a working capital loan? Your Call, Boss!

Related Post: How to Find Small Business Grants for Veterans

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