Another option for funding your small business idea is debt financing. There probably have been countless terms and processes that are new to you, and this one may be no different. However, debt financing is a glorified term for loan. This form of small business funding requires the business to repay the principal plus interest to the lender (typically a bank). There are a variety of loan options when it comes to financing your small business.
- Small Business Association (SBA) Loans
- Term Loans
- Business Line of Credit
- Equipment Financing
- Invoice Financing
- Merchant Cash Advance
Business debt financing has become a very important way for small business owners to fund their ideas and turn them into successful businesses.