Consumer and Small Business Finance Tips

The most common types of business financing include term loans, lines of credit, Small Business Administration (SBA) loans, equipment financing, invoice financing, and business credit cards. Each type serves different needs, from managing cash flow to purchasing assets. 

Typically, a credit score of 650 or higher is required for most business loans. However, SBA loans and other financing options may require a score of 680 or above. Lenders may also consider your business’s revenue, financial history, and collateral. 

Approval times vary depending on the lender and type of loan. Traditional business loans and SBA loans may take a few days or weeks. Prepare for a quicker approval by ensuring all documents are ready and accurate. 

Consider your business needs, repayment ability, and loan terms. Short-term loans and lines of credit work well for immediate cash flow needs, while long-term loans are ideal for major investments. Consult your business banker for guidance. 

A checking account is designed for everyday transactions, while a savings account is meant for storing money and often earns interest to help you save over time. 

SBA loans are partially guaranteed by the government, offering lower interest rates and longer terms than traditional loans, making them more accessible for small businesses. Traditional business loans may have higher rates but can be easier to qualify for without SBA requirements.