Business Loan Challenges
While lending options have improved as the economy continues to recover, small business loans are still tough to come by. Large banks are lending to large companies, but small business owners may be having difficulty finding a business loan to start or grow a small business.
According to a recent Forbes article, Senior Fellow at Harvard Business School and former Administrator to the U.S. Small Business Administration Karen Mills says, “Small business lending continues to fall, while large business lending rises. In an absolute sense, small business loans on the balance sheets of banks are down about 20 percent since the financial crisis, while loans to larger businesses have risen by about 4 percent over the same period.”
Small Business Loan Solutions
So what solutions are available for small businesses? There are small business loans with the U.S. Small Business Administration, the U.S. Department of Treasury Small Business Lending Fund, or business loans with your local credit union. Wink.
Understanding Business Loans
A helpful way to categorize business loans is to use 4 business loan categories: long-term loans, short-term loans, lines of credit, and alternative financing. Long-term business loans usually include monthly repayments by the borrower, and the interest rate is lower for a higher sum of money. Short-term business loan repayments are due in full after a specific span of time agreed upon by borrower and lender.
Lines of credit are a preferred business loan option for some small businesses because the borrower can access funds when needed to keep things running smoothly. Alternative financing can be tricky, as these options vary from payday loans or cash advances (which have a high interest rate) to peer-to-peer lenders who usually expect some perks in exchange for their lending offerings.
Business Loans at Great Basin Federal Credit Union
At Great Basin Federal Credit Union, we offer different types of business loans to fit the needs of your business. With our Business Line of Credit you can re-borrow and repay as often as your business needs it, which is ideal for quick working capital. Our Business Real Estate Loans are great for business owners interested in purchasing, constructing, or renovating commercial real estate.
Another type of business loan available at Great Basin is an Asset Acquisition Loan, which is best for helping you launch a business or to expand your business. If you are looking to acquire more fixed assets like equipment to help your local business grow, the Asset Acquisition Loan is your best bet.
The Advantages of a Credit Union
Since Great Basin Federal Credit Union is an established local lender as a credit union, we can offer longer terms, lower down payments, and competitive business loan rates. We can also provide guidance as you grow your business, including our “Let’s Talk Business: Small Business Seminar Seminar Series.”
For more information, speak with our Business Services Representative Nina Hallock at firstname.lastname@example.org or by calling 775.789.3197.Share: