Business Loan Comparison Chart
Posted inBiz Loan Compare

Business Loan Comparison Chart

IncBook: Business Loan Comparison Chart
Loan Type Interest Rate Range Loan Amount Range Repayment Term Best For Pros & Cons
SBA 7(a) Loan 5.5% – 8% $50,000 – $5 million 10 – 25 years Long-term capital Pros: Low interest rates, long repayment terms
Cons: Lengthy approval process, strict requirements
Business Line of Credit 7% – 25% $10,000 – $1 million 6 months – 2 years Managing cash flow Pros: Flexible, pay interest only on used funds
Cons: High interest rates, frequent renewals required
Equipment Financing 4% – 20% $10,000 – $5 million 1 – 10 years Purchasing equipment Pros: Easier approval, tax benefits
Cons: Equipment acts as collateral, possible depreciation
Invoice Financing 1% – 3% of invoice 80% – 100% of invoice value Until invoice is paid Improving cash flow Pros: Fast approval, flexible terms
Cons: High fees, may affect customer relationships
Merchant Cash Advance 20% – 50% $5,000 – $500,000 3 – 18 months Businesses with high credit card sales Pros: Fast funding, no collateral required
Cons: Very high costs, daily repayments can strain cash flow
Term Loan 6% – 30% $25,000 – $5 million 1 – 10 years Expanding operations Pros: Predictable payments, lower rates for good credit
Cons: Requires strong credit, collateral often needed
Microloan 8% – 15% $500 – $50,000 6 months – 7 years Startups, small businesses Pros: Easier approval, good for small needs
Cons: Limited amounts, higher interest rates
Commercial Real Estate Loan 3.5% – 12% $50,000 – $25 million 5 – 30 years Purchasing or refinancing property Pros: Long terms, low interest for good credit
Cons: Large down payments, complex approval process
Franchise Financing 5% – 15% $5,000 – $5 million 5 – 10 years Starting or buying a franchise Pros: Tailored to franchise needs, easier approval
Cons: Franchise fees, can be restrictive
Working Capital Loan 6% – 25% $5,000 – $500,000 6 months – 5 years Short-term operational needs Pros: Fast access to funds, flexible use
Cons: Higher interest rates, short repayment terms
Startup Loan 7% – 30% $500 – $100,000 1 – 7 years New businesses Pros: Accessible for new businesses, various options
Cons: High interest rates, requires solid business plan
Business Credit Card 12% – 25% $1,000 – $50,000 Revolving credit Everyday expenses, short-term financing Pros: Builds credit, rewards programs
Cons: High interest if not paid in full, possible fees
Trade Credit 0% – 5% Varies based on supplier 30 – 90 days Purchasing inventory Pros: No interest if paid on time, strengthens supplier relationships
Cons: Limited to suppliers, can affect credit score if unpaid
Peer-to-Peer (P2P) Loan 6% – 36% $1,000 – $500,000 1 – 5 years Businesses with non-traditional credit Pros: Easier approval, competitive rates
Cons: High fees, variable interest rates
Invoice Factoring 1% – 5% of invoice 80% – 90% of invoice value Until invoice is paid Businesses with outstanding invoices Pros: Fast funding, no collateral needed
Cons: High fees, may affect customer relationships