As opposite to what used to happen in the old days, business loans are now available not only for commercial companies, but also for self employed people. In fact, this last group seems to take the most advantage from this kind of loan, as lenders are offering many benefits to small growing companies.

The type of business loan that may suit you the best depends mostly on what does your company do (i.e. what business service you provide), and also on what do you intend to do with the money you borrow.

Many businesses take out a loan and use it as a buffer, to avoid running out of money in those cases when payday comes actually before the expected income. If you plan to use a business loan this way, then a short term loan may be the most convenient choice.

However, if you intend to use the money you are borrowing to expand your small business or set up new products or services, then you should go with loans that offer lower rates, because expansion is usually a long term goal.

Have in mind the credit issue: if you have a bad credit, it may be more difficult for you to find an affordable loan, and when you do your application may be rejected because of your credit history. Consider repairing your business credit first; there are plenty of bad credit loans that may not be enough for what you want to do to your business, but will make your credit look much better in the future.

If what you want to do is set up a new business, look for business startup loans, which offer you a decent time before you start making your payments, because you will need this time to start making profit with your new business.

Whichever is your situation, you should consider using the services of a financial broker, as they have the useful experience you may lack.