User:Krishnabhagat2234/Small business

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different types of startup business loans

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Personal loan - A personal loan is easier for startups to get, with longer repayment terms and lower interest rates which allows flexibility in capital use. The cons are that fixed monthly payments and potential high interest rates are risky with you being responsible for repayment even if the business fails.

SBA Loan - SBA is a loan that is backed up by the government which provides reassurance of security to the lenders and it also offers flexible repayment terms and maximum interest rates. The cons are it will take a long time for the approval process and that can mess up your time sensitive projects or your opportunities. Also the terms are not always the best.

Business Grant (Technically a Loan) - Business grants provide you with funds that you don't have to repay but the only negative thing about this is that it's really hard to get one because the competition is so high and everyone wants one and there are only a limited amount of grants.

Peer-To-Peer loan - In this loan lenders are more flexible on interest rates you can negotiate. The bad side of this is that there is no protection on this loan compared to other loans and also some lenders might include some hidden fees.

Equity loan - In this loan you are getting your money by selling parts of your company to investors. The investor also might give good advice so it helps the business grow. The cons of this is that you are giving up part ownership to the lender and also you are sharing your profits with the investors.