Traditional Bank Loans for Business: Pros & Cons | nav

Banks are the largest small business lenders and probably the first place you think about when getting a loan. They offer some of the lowest cost loans available, but it can be difficult to qualify. About 72% of small business owners who apply get rejected. Banks usually require strong personal and/or business credit scores, a personal guarantee, collateral, and healthy financials. Applying also takes serious effort and time. The whole process lasts about one to three months.

Signup Lightbulb Nav is the ONLY source for both personal and business credit score access, with advice on how to build your business credit to get funding, and save money. Get Started For Free

What You Need to Know About Bank Loans

Pros: Cons: Very low, fixed interest rates Lengthy paperwork Predictable monthly payments Longer wait time Helps

build business credit Requires strong credit Professional banker relationship Usually requires collateral Available for many uses

Best Uses for Bank Loans:

  • Purchasing inventory
  • Purchasing equipment
  • Purchasing commercial real estate
  • Refinancing
  • Acquiring other businesses

Nav’s verdict:

If you don’t need quick access to money, go for it! Bank loans offer some of the best rates available, but be prepared to put in serious time and effort. You’ll need good credit to qualify for the lower interest rates. Another plus is that going through a bank lets you build a relationship with the lender. They’ll have a vested interest in seeing you succeed and can be a helpful, long-term resource.

Financing - Signup Free - MatchFactor Nav's MatchFactor technology is the only place that instantly shows your approval odds for business loans and credit cardsbeforeyou apply. See my match scores for free.

Category: Bank loan

Similar articles: