Selecting a Bank or Other Lender
There are a number of types of institutions that offer small business loans,
although each type of lender may be better suited to different lending
- Banks include traditional
savings banks, savings and loans, and commercial banks, and are generally
the first place small business owners think of when looking for
- Credit unions can offer generous terms to
their members, but make mostly consumer loans.
- Consumer finance companies
may be willing to make higher-interest loans to higher-risk borrowers.
- Commercial finance companies
may be worth considering if you need a loan for inventory or equipment