Business loans are the backbone of any business. If you are thinking of launching a new business, you would need investment, and the business loan would provide you with just that.
A business loan is a soft money loan, which provides the borrowers with financial support or backup, either as a credit line or lump sum money. You would get capital money which you can use for anything in order to keep your business working and flourishing.
Moving further, let us tell you the types of Maryland small business loans.
Types of Maryland business loans (small business)
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Term loans
In term loans, you repay part of the lump sum over a fixed period of time. The monthly repayments are fixed here and you pay principal money plus interest money. You have the flexibility to use the lump sum in term loans.
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SBA loans
Small Business Association is a good loan type if you want to benefit from lower interest rates and fees. It has a long application process, so if you are not in urgency to get the capital, then SBA loans would suit you.
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Business lines of credit
Business lines of credit work similar to credit cards. It is a great option for those who are not certain about the capital required. It allows you to borrow the money up to a limit, repay the money and can withdraw more.
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Equipment loans
Equipment loans finance you in buying large equipment, which you do not have the capital for. You can buy large expensive machinery and vehicles etc using this loan type and the equipment will be used as collateral.
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Commercial real estate loans
It helps you finance existing or new properties like warehouses, offices and retail spaces. Commercial real estate loans act like term loans in terms of repayments.
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Microloans
Microloans provide you with $50,000 or less capital and are a good option for new businesses that don’t need a high cash flow.
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Merchant cash advances
Merchant cash advances are easily approved but come at a large interest rate. They take your credit card details as collateral, instead of unpaid invoices.
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Franchise loans
Becoming a franchise helps fulfil business goals without starting from scratch. Franchise loans provide the upfront fee to open a franchise and get going.
Benefits of Maryland business loans
Below mentioned are some major advantages of Maryland Business Loans.
- Flexibility of usage
- Convenient and easy
- Reasonable interest rates
- Tax benefits
Conclusion
We hope that you know now, which Maryland business loan type will best suit your needs and your pocket. Keep following for more information.
