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3 Different Types of Business Financing and What Entrepreneurs Need to Know


There are many reasons you may need some extra capital for your business, but no one type of loan serves the objectives of every entrepreneur. When it's time to borrow money, finding the loan that's personalized for your goals is important. Here are three types of loans from U.S. Bank to fit your needs.

Cash Flow Manager

The Cash Flow Manager from U.S. Bank is essentially an unsecured line of credit for up to $100,000 or a line of credit secured by general business assets for up to $250,000. These types of loans are great for short term cash flow needs as your business grows. "You want to utilize a line of credit for day to day operations or financing the short-term gaps in your cash flow cycle," says Nanette Reid, Senior Vice President, Senior Credit Officer and Emerging Business Group Division Head at U.S. Bank.

When meeting with your business banker about a Cash Flow Manager line of credit under $50,000, financial statements are not normally required as part of the application. If you need financing over $50,000, be sure to come prepared with the last fiscal year-end tax return. At U.S. Bank, you can complete this process online, giving busy entrepreneurs the chance to apply for financing outside of regular business hours.

General Purpose Quick Loan

A general purpose Quick Loan helps you finance the purchase of assets, improvements, working capital, etc. to help grow your business. These loans are available in amounts from $5,000 to $250,000 and with terms up to 84 months, depending on the loan amount and collateral.

U.S. Bank offers an easy, fully digital lending process. Complete an application in minutes. Same-day approval and funding is available for eligible applications.

With any loan, it's imperative to weigh the pros and cons. "Business owners need to consider "What risks am I taking on with this debt and is there a better way to finance it?'" Reid says.

Quick Loan for Vehicles

This type of loan is intended to finance the purchase a new vehicle for your business or refinance one you already own. With a vehicle loan, the debt is secured by the title to the vehicle for loan amounts up to $100,000.

A common mistake business owners make is using a line of credit for purchasing fixed assets like vehicles and equipment, Reid says. "You have to think "What's the purpose of the loan?' and share that with your business banker to make the best financing recommendation."

U.S. Bank's business bankers are skilled at determining the features and benefits of a loan that will make the most sense for your unique business needs. They will consider the loan term, interest rate, etc. to make the best recommendation.

"We talk about what your goals are and how you want to accomplish them. Then we try to match a financing solution that will help you accomplish those goals," Reid says.

General Purpose Quick Loans up to $250,000 are secured with all business assets and have a maximum loan term of 84 months for loan amounts greater than $100,000, loan amounts $100,000 and less have a maximum term of 60 months. Maximum loan amounts for vehicle Quick Loan is $100,000, except if secured with Class 4 vehicles and above the maximum loan amount is $250,000. Credit products are offered by U.S. Bank National Association and subject to normal credit approvals and program guidelines. Some restrictions and fees may apply. See a banker for details. Equal housing lender.