SBA Loans Line-of-credit loans Angel investment
An SBA loan backs various types of small-business loans made through local banks and agencies. These loans can be used to buy equipment, inventory, furniture, supplies and more.
Line-of-credit loans are short-term loans that let you access a specified amount of money that's deposited into your business checking account on an as-needed basis. You pay interest on the amount that's loaned to you. Line-of- credit loans can be used to buy inventory and pay operating costs for working capital, among other things, but not to buy real estate or equipment.
An Angel Investment isn’t as common, most family members won't eagerly write you a check for $250,000 to fund your startup. This is where an angel investor comes in, particularly between the first and second years of your company's existence. Angel investors, however, typically demand equity, a high return on investment and a well-defined five-year plan in return.
The business loan that I have researched and my business will apply for is an SBA loan. An SBA loan backs various types of small-business loans made through local banks and agencies. These loans can be used to buy equipment, inventory, furniture, supplies and more. This loan best fits my business because it will cover my building costs, to the supplies, and equipment I need to buy.
Loan Amount: $65,000 Interest Rate: 4.6% Loan term: 10 Years Total interest: $16, Total Paid back to lender: $81,214.40
Monthly Loan Payment: $ Current Monthly Income: $5, Monthly Income with Loan: $4, Current Yearly Income: $64, Yearly Income with Loan: $56,247.12