LOANS

3 TYPES OF LOANS

SBA Loans Line-of-credit loans Angel investment

SBA Loans

An SBA loan backs various types of small-business loans made through local banks and agencies. These loans can be used to buy equipment, inventory, furniture, supplies and more.

LINE-OF-CREDIT LOANS

Line-of-credit loans are short-term loans that let you access a specified amount of money that's deposited into your business checking account on an as-needed basis. You pay interest on the amount that's loaned to you. Line-of-credit loans can be used to buy inventory and pay operating costs for working capital, among other things, but not to buy real estate or equipment.

Angel Investment

An Angel Investment isn’t as common, most family members won't eagerly write you a check for $250,000 to fund your startup. This is where an angel investor comes in, particularly between the first and second years of your company's existence. Angel investors, however, typically demand equity, a high return on investment and a well-defined five-year plan in return.

SBA LOAN

The business loan that I have researched and my business will apply for is an SBA loan. An SBA loan backs various types of small-business loans made through local banks and agencies. These loans can be used to buy equipment, inventory, furniture, supplies and more. This loan best fits my business because it will cover my building costs, to the supplies, and equipment I need to buy.

United Financial Lending

Loan Amount: $65,000

Interest Rate: 4.6%

Loan term: 10 Years

Total interest: $16,214.40

Total Paid back to lender: $81,214.40

MONTHLY & YEARLY PROFIT

Monthly Loan Payment: $676.79

Current Monthly Income: $5,364.05Monthly Income with Loan: $4,687.26

Current Yearly Income: $64,368.60Yearly Income with Loan: $56,247.12