Free Money Grants vs. Small Business Loans: What Option Is Best For You?

Being a small business owner is not the easiest way to earn a living, but it can be gratifying! Both new and established businesses go through transitions of growth and difficulty.  

You can look at various options for funding that will provide the money you need to continue and improve your business. 

What Are Free Money Grants?

A grant is money provided to a business, individuals, educational institutions, or non-profits. Free money grants are offered by trusts, government departments, or corporations, and you will not have to pay the grant back in most cases. 

Grants provide funding for certain facilities, charities, activities, or business ventures specified in the grant agreement. There are often requirements and limitations to qualify eligible candidates. 

Today most grants are available for organizations rather than individuals. When grants first started, they were only available for organizations, and there were no options for individual grants. 

What Is A Business Loan?

As an incorporated business owner, you can also consider applying for a business loan. A business loan is funding provided for business owners who qualify for the terms the lender requires.  

This allocation must be paid back with interest according to the terms set by the lender. Terms are set before funding is provided, so make sure you know the obligation before moving forward.  

SBA and traditional bank loans require more than many private online lenders. Loan qualifications for more business loans are based on business revenue. Some require a higher credit score than others. 

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