What Are Traditional Loans?
A traditional loan is a bank loan, pure and simple. But often there’s nothing simple about acquiring one of these loans, even if you go through the Small Business Administration. Below you’ll find videos, case studies, links and experts who can guide you to the resources that can help you get a bank loan.
Why choose traditional lending over alternative? There are some benefits to bank loans.
How to Get Started
Many traditional lenders will consider your business’s Dun & Bradstreet business credit report when making decisions about whether or not to approve your loan request or what your terms might be. If you’d like to learn more about your business credit profile, you can sign up for CreditSignal*.
Beyond business credit, which you can learn more about below, you’ll want to get started early with a lender. Building a relationship with a lender can be key to getting a loan, and the earlier you start (i.e. BEFORE you really need the money), the more your lender can help you along the way. By the time you are actually in need of the funding, hopefully your lender will feel confident giving you a loan. Bryan Moeller with Wells Fargo explains the importance of planning ahead and working with a lender in the video below.
Types of Traditional Lending
There’s only one type of traditional lending and it comes from a bank. However, there are different types of bank loans and working with a lender can help you determine which one may be best for your business. You’ll want to consider two major things when deciding between loan options:
- The terms of the loan
- The collateral required to obtain the loan
You’ll need to think long-term with a bank loan, since banks usually only give business loans for more than $250,000, you’ll likely be paying back what you borrow for a lengthy time period. Learn about the different types of bank financing below.
- Working capital/Lines of credit
- Business credit cards
- Short-term commercial loans
- Longer-term commercial loans
- Equipment leasing
- Letters of credit
While you can go to almost any bank for a business loan, there are some banks in particular that enjoy working with small businesses. To get started, research the banks below that work with small businesses and review the list of most active SBA 7(a) Lenders for more options.
Traditional Small Business Lenders*
View the 100 Most Active SBA 7(a) Lenders.
Learn more about different types of banks and the loans they offer in the videos below.