David Christiansen

David Christiansen

You’ve developed an idea, worked out the mechanics, now all you need is to open for business. It’s the most exciting part of building your dream career, but also the most expensive. That’s where small business loans can help.

To apply for a small business loan, you’ll need a few things. First of all, an organized business plan, plenty of drive to get your business off the ground and your latest FICO Score. Before you get started, here’s a primer on the most common business loans:

Small business loan: A small business loan is a lot like a mortgage or a car loan in that small business owners can obtain a set amount of money — or line of credit — to help start a business while maintaining business ownership. At Mountain America Credit Union, your business needs are covered with a revolving line of credit ranging from $10,000 to $50,000. It’s just like using a credit card. This small business financing solution gives you the flexibility to borrow, repay and borrow again, all without reapplying for the loan. Plus, there’s no need for collateral.

A common type of business loan is a secured business loan. This is when you use a valuable asset that you personally own (like real estate) to guarantee repayment of the loan. If you are unable to pay the loan back, the lender can use these assets to legally recoup their losses.

Business real estate: Finding the right commercial property can be the difference between getting your small business off to a successful start and struggling to make a go of it. Utilize a trusted lender to help you enjoy a smoother process when getting a commercial real estate loan.

Equipment loan: Every business needs some sort of equipment. How much and at what cost depends on the industry. An equipment loan can help you get ahead. When you’re using the best equipment, you can be confident you have an edge on the competition. Not only that, but better equipment will lead to stronger business growth. An equipment loan can be for $10,000, $10 million or more, and the money can be used to upgrade outdated commercial equipment or purchase new items. These assets are intended to increase the productivity and profitability of your business — like computers, refrigerators, tractors, printers and more.

Construction loan: Whether you’re building your office from scratch or improving on an existing space, construction is often necessary to best fit your vision. Most financial institutions, including Mountain America, offer construction loans that come with a team of experts to guide you through the complicated process of working with city planners, contractors and architects. Use your construction loan to finance commercial buildings from $250,000 to $2,000,000.

More business support options

If a business loan doesn’t seem to be the right fit, Mountain America also offers the following tools to support your business:

Business Visa: Every business — yes, even yours — needs a business credit card. It’s a handy business tool that helps you track spending, earn rewards and save money in the long run. Look for one with competitively low interest rates, cash back options and little to no annual fees.

Line of credit: If you know you’re going to need more than $50,000 to keep your business running through its early stages, a revolving line of credit can give you more flexible financing for larger expenditures. Easily access funds for a variety of business necessities, including buying equipment, funding special projects and maintaining an even cash flow. Plus, it’s easy — it works just a like a credit card.

Reach out to Mountain America Credit Union and keep your business moving forward with the right loan for your unique business needs.

David Christiansen is the AVP SBA Sales Manager at Mountain America Credit Union.