Tips: Types of Loans

Lease Equipment to Improve Cash Flow

Leasing equipment can free up cash. Equipment leases rarely require down payments, though you may have to set aside some cash for a refundable security deposit. By contrast, if you take out a loan to finance equipment, you will probably need to put down 25 percent or more.

Don't Overlook Home Equity Loans to Fund Your Business
If you own your own home and need to borrow money for your business, a home equity loan may be an option. As with any loan, there are risks, but home equity loans are unique in that if you default on your loan, you may lose both your home and your business.

Turn to the SBA for Disaster-Recovery Loans
Natural disasters can devastate a small business -- especially for those without adequate insurance coverage. But the Small Business Association (SBA) grants loans to businesses that have suffered tangible losses due to a natural disaster. The maximum limit on real estate damage is $200,000, and the amount you can borrow depends on the actual cost of repairing or replacing your property, less any money received from insurance companies, other reimbursements, or grants.