4 Factors to Consider When Choosing a Loan for Your Small Business

When you are ready to take your small business to the next level, a loan can be a great way to finance your growth. But with so many different types of small business loans (SBA loans) available, it can be tough to know which one is right for your business. Do you need a short-term loan to cover an unexpected expense? Or are you looking for a long-term loan to finance a major purchase or expansion? Or maybe you are somewhere in between?


At Fiscus Capital Funding we specialize in U.S. Small Business Administration loans (SBA loans) of all types for small business owners, including working capital loans, short-term loans, unsecured lines of credit, and more, and we are here to help you choose the best loan for your business. Below are just four factors to consider when choosing a loan for your small business — keep reading to learn more and contact our team of financial experts today to get the right information about your small business loan options!

The Purpose of the Loan

First and foremost, it is important to consider the purpose of the loan — what do you need the loan for? Whether you are looking to use it for equipment financing, , expand your business, or cover unexpected cash flow problems, it is important to choose an SBA loan program that fits your specific needs. If you need the loan for everyday expenses such as payroll and rent, a working capital loan from Fiscus Capital Funding may be the right option for you.

The Amount of Money Needed

Before you start shopping around for small business loans, it is important to know how much money you need to borrow. When looking for a loan for your business, you also need to think about whether your business has its own assets or whether your bottom line depends entirely on your employees and inventory.

Some lenders have requirements that your business have some sort of collateral, such as equipment, buildings or other tangible assets. This will help you narrow down your options and ensure that you do not end up with a loan that is too small or too large for your needs. If not, you may find yourself with a lot of debt that you cannot afford to repay or in a situation where you cannot afford what you initially took the loan out for. Lenders that look at the entire business, including all assets, might charge you a higher interest rate or total repayment amount.

Your Repayment Timeline

Another important factor to consider when choosing a loan is your repayment timeline. Some loans such as short-term and working capital loans have shorter repayment terms, while other loans; such as equipment loans, have longer repayment terms. Lenders will usually offer a longer term for a loan if your business has a good credit history and several years of repayment history on various other debts, whether large or small. You will need to decide how much time you need to repay the loan and choose a loan with a repayment timeline that fits your needs. Otherwise, you may find yourself struggling to make your payments on time.

Your Business’s Financial Reports

Lastly, most lenders will also want to see your business’s financial statements before approving a loan. This is to ensure that your business is in good financial health and has the ability to repay the loan. Financial reports are needed to know what your liabilities commonly are, or if you need to increase your borrowings before your business annual revenue can generate a profit.

If you don’t have your financial statements in order, it may be difficult to get approved for a loan. Be sure to ask your lender what documents they need before applying for a loan and have them ready to go. At Fiscus Capital Funding we understand that choosing the right loan for your business can be a daunting task. But with our help, you can find the perfect loan to finance your business’s growth.

At Fiscus Capital Funding we make the loan process easy and stress-free. We will work with you to determine which type of loan is right for your business and help you get the funding you need to grow. Contact us today to learn more about our small business loans and how we can help you.

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