SBA Loan Online

Starting a Business? Get the Facts on Business Lending

Are you interested in starting your own business? If you are, you may need to get a loan to help you pay for any real estate, rent, and other necessary items for you to initially run your business. What you may not realize is that the kind of loan you choose could be the difference between success and failure, regardless of how successful your business becomes.

For example, if you choose a conventional bank loan, the bank amortizes the loan over a 15 to 20 year span. The bank will also call the loan up for review every three to five years. The review provides the most risk to the business owner. With the review, the bank can decide that they no longer wish to have loans to the kind of business that you have, and call in the remainder of the debt. Having to quickly find the money to pay the remainder of your loan can easily bankrupt your business, even if you are highly successful. It may not sound fair, but it is in the fine print of the loan agreement- read the information carefully before you sign.

The bank can also decide to re-amortize the loan over another 15 to 20 year time frame, which means you essentially lose the years of interest you have paid down, and you will start over, with more interest for you to pay. You will also have to pay thousands of dollars to reapply for the loan when your loan is under review. Keep in mind that the review process happens every three to five years, and the renewal application fees apply for each one. This can add up to several thousand dollars just to keep your loan, with no real benefit to you or your business.

A better choice than a conventional bank loan is a SBA loan, which is fully amortized. The business owner does not have to worry about the bank calling in for payment before the loan is due, and it cannot be re-amortize. There are also no reviews, therefore any fees to pay other than the debt of the loan. You can get a SBA loan for anywhere from 7 to 25 years, depending on the need and the purpose of the loan.

With an SBA loan, you save thousands in interest and renewal fees. Most importantly, you can enjoy the success of your new business without worrying about losing your loan in a review. Be sure to ask your provider about an SBA loan, and you’ll be making a wise choice for you and your business.