Learning Goal: I’m working on a finance case study and need the explanation and answer to help me learn.
1- No plagiarism, no match please.
2-You can find the instructions inside the doc
3- Please write a paper in the document
4- Write a report on whatever you use to research and what you write in a different document because we will discuss it separately in class
Write at least 5- references using the APA style.
Please use simple language
Put the in-text quote in each.
Additions within the document.
The right financing for your business will depend on factors such as: why you need capital, how fast you need it and your business’s qualifications.
1. Bank loans
Best for: Established businesses with collateral and strong credit.
Traditional banks are a great starting point and can help you figure out where you stand in terms of qualifying for a loan. Types of small-business financing offered by banks include term loans, business lines of credit, equipment loans, commercial real estate loans and even business credit cards.
Bank loans typically have low interest rates and competitive terms, but can be hard to qualify for. You’ll likely need strong personal credit, established business revenue and two or more years in operation to access bank financing.
2. SBA loans
Best for: Businesses that don’t meet traditional banks’ strict lending criteria.
The U.S. Small Business Administration offers lenders, mostly traditional banks, a federal guarantee on your loan. This makes it less risky for banks to lend you the capital you need to be successful. In guaranteeing the loans, the SBA also connects you with favorable rates offered by traditional lenders.
There are multiple types of SBA loans available, including SBA 7(a) loans, SBA 504 loans and SBA microloans. The most popular of the SBA loan programs, 7(a) loans can be used for a wide variety of purposes and are available in amounts up to $5 million.
Although SBA loans can be easier to access compared to bank loans, you’ll still need to meet top criteria — a good credit score (FICO 690 and up), strong annual revenue and at least two years in business — to qualify.
3. Online loans
Best for: Business owners with shaky personal credit, who want fast funding or ease of applying.
With traditional banks limiting access to capital, online lenders have seen an increase in popularity, especially among business owners who have bad credit: 60% of medium- or high-risk credit applicants apply to online lenders or nonbank finance companies, according to the 2022 credit survey from the Federal Reserve
4. Small-business grants
Best for: Free financing.
Small-business grants offer a way for business owners to get established or grow, without having to worry about paying back the funds.
Typically offered through nonprofits, government agencies and corporations, some grants focus on specific types of business owners or particular industries.
Small-business grants can be a great funding option for startups, as well as for businesses that can’t qualify for traditional debt financing.
5. Credit union financing
Best for: Members who like a personal touch.
Like banks, credit unions offer favorable rates and loans backed by the SBA. But unlike banks, credit unions have increased their small-business lending. Between 2004 and 2020, the number of credit unions offering business financing doubled, according to a report from the Consumer Financial Protection Bureau
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