Pros & Cons of Small Business Lending Sources

Thursday, February 09, 2017

Small business owners face multiple hurdles securing loans, but you shouldn’t jump at the first opportunity that comes along. Not all loans for small business owners are created equal, and you should be familiar with the pros and cons of various small business lending options.

Pros and Cons of Various Small Business Lending Sources

Traditional Banks

Most people think of a traditional bank when first seeking a small business loan. Bank loans typically offer low interest, but can be very difficult to secure. In fact, only about one in five businesses that apply for a small business loan from a big bank are approved. Getting a bank loan can also be an arduous process. With mountains of paperwork to complete, you’ll have to provide exhaustive details about how you plan to use the money, and you’ll obviously need collateral.


Credit Cards

Others turn to small business credit cards, which can be a fast and easily accessible solution. Just beware of exorbitant interest rates that can eat your business alive. Not to mention small business credit cards are not covered by the CARD Act, which means your interest rate can be increased at any time, even on your existing balance. The other catch? You are personally liable. If your account becomes delinquent, it can affect your personal credit report.


Online Lending

Another option that many small business owners choose to secure capital for their business is online lending. Although it promises fast, accessible funding, interest rates can often be just as high or higher than credit card rates. Be sure the true cost of the offer and repayment terms aren’t hidden. Many lenders may even modify the terms of the loan midstream.


Heartland Lending

If you’re looking for a trusted partner who has developed the best lending solutions in the market and will get your small business the funds you need when you need them—at the most reasonable rates possible—Heartland capital may be a good option to strike the best balance. But don’t just take our word for it. Do your research to find a low-risk, simple solution tailored to your needs.

Additional Tips for Finding the Right Small Business Lending Company

  • Discuss rates to know the exact amount you’ll repay over the life of the loan.
  • Find out how quickly you can receive the funds you need and review loan terms.
  • Consider choosing a lender who has worked with businesses the size of yours before.
  • Don’t be afraid to ask for referrals and check with them to see if they’d recommend the lender.
  • Most importantly, be sure the lender is invested in your success.


Heartland has helped businesses secure nearly $300 million in loans over the past two years, changing the way small businesses think about financial growth. Borrowing money can seem like a daunting task, but with a reputable lender and transparent terms and rates, it could expand your business – and your dreams. Are you ready to get your piece of the pie? Explore Heartland Capital, our working capital loans for small businesses just like yours.


Visit our website or call 855.861.8181 to get approved in as little as one business day.

Nearly 1,000,000 entrepreneurs trust Heartland to provide the technology to run and grow sustainable businesses--technology to make money, move money, manage employees, and engage customers. We develop tools to help entrepreneurs respond to market changes and stay competitive. We know it’s not enough to just look good and have fancy features. That’s why Heartland delivers human-tech across all of our solutions, service, and support. All designed to help entrepreneurs overcome the challenges encountered every day. Learn more at