News & Advice

If you have a dream, you can pursue it with the help of a small business loan. As you start your business, keep this information about loans in mind. 

THE BENEFITS OF SMALL BUSINESS LOANS 

Small business loans are a way to get your business off the ground or keep it running. Unlike working with an investor, with a small business loan, you aren’t told how to spend the money, allowing you to keep full control of your business. It’s also a quick solution — you don’t have to wait to access the money you need. Once you’re approved, it’s yours to use. Business loans also typically have lower interest rates than business credit cards. 

HOW TO ASSESS YOUR NEEDS BEFORE APPLYING 

Before applying for a loan, consider what other funding you have, like personal savings, a home equity loan, or money borrowed from friends and family. Figure out how much money you need, what you’ll spend your loan on, how long it will take you to pay back the amount if you have other outstanding loans, and the current financial state of your business. 

HOW TO TO QUALIFY

Different types of business loans or grant programs come with different qualifications. Before you apply, research what loan is best for you and compile the required information. 

In general, good credit is always helpful to have when you apply for a small business loan. You should also present your business plan, which should include information like a description of your business, a description of your products or services, financial statements, and a list of assets. Your lending professional can help you determine what other legal and financial documents you should have on hand. 

HOW DIFFERENT TYPES OF LOANS WORK

• Business Term Loans

Business term loans allow you to get exactly what you need for your business — such as working capital, equipment, machinery, inventory, and more — at a competitive rate. With a business term loan, you can increase capital without having to use your savings.

• Business Lines of Credit 

Business expenses aren’t always predictable. With a business line of credit, you’ll get a revolving line of credit to use as needed. As your principal is repaid, more becomes available to use. INOVA Federal offers competitive rates for a wide range of long-term or seasonal business needs, making this a convenient option for your business’s specific necessities. 

• Commercial Real Estate Loans 

With a commercial real estate loan, you can buy, build, renovate, or refinance your office buildings, warehouses, retail stores, and more. A commercial real estate loan is available for owner-occupied or investment properties and repayment terms are created individually to meet your needs. 

• Equipment Loans 

If you need new computers, software, printing machines, and other equipment for your business, an equipment loan will allow you to purchase or refinance new or used equipment. Equipment loans from INOVA Federal help you finance up to 80% of the cost so you can produce your products and keep up with demand. 

• Small Business Administration (SBA) Loans

SBA loans are available for start-up businesses but are also a great option if you’re purchasing and refinancing an existing business. SBA loans offer competitive rates for a variety of business needs. You can use your SBA loan on equipment, machinery, working capital, and commercial real estate. 

When you’re ready to advance your business, request more information online about our business loans at INOVA Federal or stop into one of our convenient locations to work with one of our lending professionals.