Common Small Business Loans

MICRO LOANS SBA established a pro- COMMON SMALL BUSINESS LOANS gram giving small loans to small businesses. They can reach up to $50,000, but the average loan is about $13,000 SHORT-TERM Used to raise money for accounts payable, inventory, and working capital; usually require less collateral and have a smaller interest rate. LINE OF CREDIT Most useful loan for a small business. Short-term loan that LONG-TERM extends the cash available in your business's checking Used for business ex- pansion, improvement, or purchasing where facilities, industrial plants, major equip- ment, and real estate are the issue. account REVOLVING CREDIT Open-end credit that is typli- cally given by banks. The bank that is in agreement guarantees a max amount that can be loaned to the cus- tomer. Company.com