10 Different Types of Business Loans

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There are many business loan types available for commercial lending, in amounts from a few thousand dollars into the millions, with terms that can last from a few weeks to many years. It’s a good idea to consider all your options before choosing which business financing will work for you.

What are Different Business Loan Types?

  1. SBA Loans
  2. Business Term Loans / Installment Loans
  3. Merchant Cash Advance (MCA)
  4. Business Line of Credit
  5. Invoice Factoring
  6. Equipment Financing / Equipment Loans
  7. Startup Loans
  8. Business Credit Cards
  9. Business Loans for Women
  10. Personal Loans for Business

Read on for more details for each business loan type.

SBA Loans SBA Loans

SBA Loans

Business Term Loans Business Term Loans

Business Term Loans

SBA Loans

Government-backed Small Business Administration loans are provided through banks and other local lenders, in amounts ranging from $5,000 to $5 million and terms of five to 25 years. Considerable paperwork is involved, and it may take up to several months to obtain a loan. Learn more about SBA loans.

Business Term Loans

These are offered with either a fixed or variable rate at terms of one to 10 years, in amounts ranging from $20,000 to $500,000. Business term loans are typically used to finance an expansion, purchase equipment or pay off other debts.

Merchant Cash Advance Merchant Cash Advance

Merchant Cash Advance

Business Line of Credit Business Line of Credit

Business Line of Credit

Merchant Cash Advance

A business might pursue MCA when it has steady credit and debit card sales, but not the credit needed for a traditional loan. The borrower pays a percentage of their daily card revenues until the loan is paid off. They can be a quick but costly way of obtaining funds.

Business Line of Credit

A line of credit can be used for a variety of business needs, such as inventory or to cover temporary cash shortfalls. You only pay interest on what you borrow each time, and you can access additional funds, as needed, up to the credit limit offered by the lender.

Invoice Factoring Invoice Factoring

Invoice Factoring

Equipment Financing Equipment Financing

Equipment Financing

Invoice Factoring

Also known as accounts receivable financing, it’s typically used by businesses with positive cash flows that need flexible financing. The borrower uses outstanding invoices as collateral to obtain short-term loans of 30 to 90 days, then pays off the loan when the invoices are paid.

Equipment Financing

Equipment financing is similar to a car loan, where the item being purchased is used as collateral to secure the loan. It’s typically used by established businesses with steady financial data. Loan amounts can range from a few thousand up to more than $1 million, with terms from six months to 10 years.

Startup Loans Startup Loans

Startup Loans

Business Credit Cards Business Credit Cards

Business Credit Cards

Startup Loans

Businesses may pursue this option when they’re less than a year old and lack the financial track record of an existing franchise. Personal guarantees by the owner are typically required, such as using the owner’s home or other assets as collateral.

Business Credit Cards

A business credit card can help you keep track of expenses for tax purposes, and it may come with rewards, such as travel points or cash back. The card’s interest and fees are tax-deductible, as long as the purchases were business related. They’re not recommended for long-term borrowing, as the interest payments can hurt your bottom line if a significant balance is carried for too long.

Business Loans for Women Business Loans for Women

Business Loans for Women

Personal Loans for Business Personal Loans for Business

Personal Loans for Business

Business Loans for Women

Searching for small-business loans for women is a bit easier these days with options from bank loans, U.S. Small Business Administration loans to private business loans. The SBA has designated different loan programs specifically for women, and many female business owners have used SBA-backed loans to secure funding. The Minority Business Development Agency, and some private lenders, also help women-owned businesses to get funds.

Personal Loans for Business

One of the common types of small business loans, they’re often used by owners with good credit who need quick access to business funding. They’re offered in amounts from $1,000 to $50,000 or more and are usually unsecured, so they can be utilized by business owners who lack substantial assets.

Apply for Business Loans from Headway Capital

At Headway Capital, we believe you can accomplish great things with the right support and are proud to help hardworking business owners like you accomplish your goals. We do this by offering a true business line of credit up to $50,000. With our easy application process, you can find out in minutes if you’re eligible. If approved, you can access capital whenever you need, up to your credit limit, and you’ll only pay interest on the amount you borrow each time.

Credit Line

Up to
$50,000

Repayment Term

12, 18 or 24 months

Payment Frequency

Weekly or monthly

Loan Type

Loan Type

Business line of credit
No Hidden Fees

No Hidden Fees

No application fee or non-sufficient funds (NSF) fee
Clear Cost

Clear Cost

Clear payment terms, interest does not compound, no penalty for early payoff

Apply now for a business line of credit. If approved, you’ll have your money by the next business day. If you have any questions, please call our customer service representatives at 866.698.8494 or email us at support@headwaycapital.com.

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