The Best Small Business Loans: Banks, Terms, and Options

August 4, 2023

All loans are subject to credit approval.

Ready to take your passion and business to new heights? In this article, we'll guide you on finding the perfect small business loan to support your dreams. Let's make your entrepreneurial journey even more incredible!

When it comes to starting out on your small business journey, it's important to have preliminary knowledge about types of loans, resources, and all the ins and outs before you choose the right financial institution or lender to work with.

Types of Small Business Loans

Before we dive into the best banks, let's quickly talk about the different types of small business loans. How you use debt can make all the difference in the success of your business.

Here are the most common types of small business loans you will find:

• Term Loans – These are traditional loans where you borrow a set amount of money and repay it over a specific period. Term loans are great for big investments or long-term projects.
• Lines of Credit – It's like having a credit card for your business. You can borrow money up to a certain limit and only pay interest on the amount you use. A line of credit is useful for managing cash flow or unexpected expenses. 
• SBA Loans – The Small Business Administration (SBA) offers loans with lower interest rates and longer repayment terms. SBA loans help businesses that may not qualify for traditional loans due to limited collateral or credit history.
• Equipment Financing – If you need to purchase equipment, you can get a loan specifically for that purpose. The equipment itself serves as collateral, making it easier to get approved.
• Invoice Financing – If you have unpaid invoices, you can get a loan based on the value of those invoices. Invoice financing helps bridge the gap between providing goods or services and receiving payment.
• Business Credit Cards – These are like personal credit cards but designed for business expenses. Business credit cards offer flexibility and rewards. 

Remember, each loan option has its own benefits and considerations. It's important to understand your business needs and financial situation before choosing the right loan for you.

Choosing the Best Small Business Loans

Now that you know the different types of loans, how do you choose the best one for your business? We'll give you some helpful tips and things to consider when making this important decision.

To choose the right small business loan:

• Think about why you need the money and how much you need.
• Look at how long you'll have to pay it back and if you can make the payments.
• Compare the interest rates and fees of different loans to find the best deal.
• Make sure you meet the necessary requirements, like having a good credit score or collateral.
• Check if the loan has flexible options like prepayment or access to funds when you need them.
• Ask for help from a financial advisor or a lender if you're not sure.

Take your time, compare options, and pick the loan that fits your needs and goals for your business.

The Best Banks for Small Business Loans

When it comes to finding the right bank for your small business loan, you have different options to choose from. Consider traditional and local banks, national banks and online lenders, credit unions, and specialized lenders when searching for a bank for your small business loan.

1. Traditional Banks

As mentioned earlier, traditional banks are well-established financial institutions that serve a wide range of customers, including small businesses. They offer various small business loan options, such as term loans and lines of credit, tailored to suit different needs.

2. Local Banks

Local banks, also known as community banks, are community-oriented financial institutions that focus on serving businesses within their area. They prioritize personalized service and may offer specialized small business loans, such as small business micro-loans and commercial real estate loans.

3. National Banks

National banks have a widespread presence and serve businesses across the country. They offer a diverse array of small business loans, including SBA loans and equipment financing, catering to businesses of various sizes and industries.

4. Online Lenders

Online lenders provide digital platforms for loan applications and quick funding decisions, making them a convenient option for small businesses. They offer various types of loans, such as short-term loans and invoice financing, to meet immediate financial needs.

5. Credit Unions

Credit unions are member-owned financial cooperatives that offer services to their members, including small business owners. They may provide competitive rates and terms on small business loans, similar to traditional banks.

6. Specialized Lenders

Some banks, credit unions, and community banks may specialize in serving specific industries or offer targeted loan programs, such as healthcare practice loans or restaurant loans, designed to meet the unique needs of those businesses.

As a small business owner, considering these various types of financial institutions will help you find the right lender and the most suitable small business loan to support your business growth and success.

Empowering Small Business Dreams: Unleash Your Potential!

In the world of entrepreneurship, dreams soar and passions ignite. As a small business owner, you are an unsung hero, bringing life to Main Street and enriching the tapestry of your community. Your vision is the fuel that ignites growth and innovation, and we are here to join you on this inspiring journey.

Different types of financial institutions and lenders provide different levels of knowledge and service. Consider factors such as interest rates, repayment terms, customer reviews, and overall reputation when choosing a small business loan to fuel your growth.

Centier Bank is a top choice for small business financing. We stand out with competitive interest rates and flexible repayment terms. As an SBA Preferred Lending Partner, Centier has a strong reputation for providing reliable funding and unmatched expertise.

Centier Bank offers a variety of small business loan options, including term loans for different purposes, lines of credit for short-term working capital, and specialized SBA loans. Centier also offers CDs and IRAs, savings high interest accounts, money market accounts, and other savings and investing products.

Learn more about our small business loans today, or meet our team of dedicated small business bankers.