A bank loan offers funds directly from a bank, the largest lending institution and most obvious place to get a small business loan. These loans usually offer large amounts of capital that can be used for anything in your business, and will be repaid over a long period of time in monthly installments. Bank loans can sometimes be more difficult to qualify for in comparison to loans from alternative lenders as they require higher credit scores and a longer time in business. However, if your business is able to qualify, bank loans can serve as a great source of low cost capital to stabilize cash flows and bolster growth.
Loan Details
Max. Loan Amount
$20K to $15M
Loan Term
3 - 30 years
Interest Rates
3% - 12%
Speed of Funding
2 - 4 weeks
Loan Requirements
Annual Revenue
$50,000+
Credit Score
670+
Time in Business
2+ years
Pros
- Low interest rates
- Funds can be used flexibly
- Builds up business credit
- Relationship with bank
Cons
- Hard to qualify
- Lots of paperwork
- Slower speed of funding
- Additional collateral required sometimes
1
Prequalify Online
Follow steps and enter basic information.
2
Apply
Fill out an application and submit required documentation.
3
Recieve Secure Funding
After approval, funds will be directly deposited into your bank account and available for immediate use.
Best Use of a Bank Loan
- Refinancing
- Purchasing large equipment
- Maintaining cash flow
- Debt consolidation
- Investment opportunities
Best Use of a Bank Loan
- Refinancing
- Purchasing large equipment
- Maintaining cash flow
- Debt consolidation
- Investment opportunities