 TITLE: Business Loan or Business Line of Credit: Which Is Best for You? CONTENT: What Is a Business Loan?\n------------------------\nBusiness loans, sometimes called term loans, provide small business owners with a lump sum they must pay back over time, with interest. There are different types of business loans for different purposes. Long-term business loans are designed to finance long-term investments, such as purchasing or remodeling a building. They are generally for larger amounts and are repaid over three years or more.\nSmaller, short-term business loans, often called working capital loans, can help with immediate capital needs, such as buying inventory or paying employees and rent during a slow season. Short-term loans typically have a six-month to 24-month term.\nIf you need to buy machinery or equipment, an equipment loan can help. These loans may be offered by banks, equipment financing companies or manufacturers. They use the goods you're purchasing as collateral.\nInvoice financing is another type of loan that advances you money against your outstanding invoices, minus a fee. END