Small business lending options and choosing the right path

Small business loans are an important part of starting, growing and maintaining a successful business. There are several types of loans and lines of credit to choose from, and the funds can be used for any business purpose such as additional working capital, expansion, renovation, marketing, payroll and much more.

Receiving a small business loan is essentially funding to help manage cash flow and keep the business operating smoothly for years to come. We've compiled a list of some of the most common small business loans so you can compare their features and benefits and make the right loan decision for your business.

Express loans vs. traditional loans

There are some significant differences between business loans, including their maximum loan amounts, average approval time, and required collateral. Express loans can be quite beneficial if you find yourself in a crunch for cash or need to supplement for a busy season because the loan approval time is much quicker. For example, at Republic Bank, our express loans can be approved in as little as 24 hours with loan amounts up to $250,000.

Our traditional business loans range from $500,000 to multi-million dollar deals and include loans and lines of credit, equipment financing, commercial real estate financing and more. Traditional business loans do require collateral, typically equaling the amount of the loan.

To qualify for either a traditional loan or an express loan, you must meet some eligibility requirements, which include operating for at least two years and a credit score of good or excellent.

Term loans vs. lines of credit

Whether you choose a traditional loan or express loan, within that you can apply for either a term loan or line of credit. Term loans are a lump sum of cash up front that is repaid over an agreed upon period and with specified lending terms. You can usually secure higher loan amounts and make lower payments over a longer period.

Lines of credit, on the other hand, function like 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 you pay of the outstanding balance, the available credit replenishes. Lines of credit can offer business owners a lot more flexibility than term loans, depending on your specific needs.

What to look for in a loan

Choosing the right small business loan can be intimidating, but there are certain key factors to keep in mind as you decide. Firstly, be sure to carefully consider all your options. You can secure loans through banks and other traditional financial institutions and can also get funding through an online lender. Some important things to consider as you research are interest rates, repayment periods, transparency and flexibility, and any additional fees or ongoing costs.

• At Republic Bank, we aim to make loan funding as quick and easy as possible so business owners can focus on running their business. Loan approval and rates will depend on the health of your business, how long you have been in business, and your personal credit, among other factors. You can easily get started online and the application process takes just five minutes. Reach out to us today to learn more: (800) 526-9127.