Here are the different types of loans:
Long-term loans are probably the most common types of loans available. These loans can be used a working capital funding source and you can repay them on a monthly basis over a term agreed with your bank or financial institution.
Short-term loans on the other hand are supposed to be repaid within a year in a lump sum, instead of monthly.
Credit lines are usually used for working capital funding. Instead of granting you the entire loan amount, the financial institution will give you a certain amount each year.
Where to get funding?
When looking around for small business funding resources, your bank should be your first stop, especially if you have a history of working together before. Familiarity does go a long way in clearing any insecurities and doubts. There are many other types of lenders as well, the only differentiating factor between each of them would be the kind of loan they grant – secured or unsecured. Banks grant unsecured loans, while financial institutions are in favor of secured ones.
