Selecting a Bank or Other Lender

April 13, 2006

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There are a number of types of institutions that offer small business loans, although each type of lender may be better suited to different lending situations.

Banks include traditional savings banks, savings and loans, and commercial banks, and are generally the first place small business owners think of when looking for institutional financing.
Credit unions can offer generous terms to their members, but make mostly consumer loans.
Consumer finance companies may be willing to make higher-interest loans to higher-risk borrowers.
Commercial finance companies may be worth considering if you need a loan for inventory or equipment purchases.