If you’re opening a small business, you’ve probably realized that there are a lot of expenses to consider. You might need to buy equipment, hire employees, or even rent office space. These costs can add up very quickly, so it’s important to plan ahead and make sure that your business is financially prepared for the future. Luckily, there are several financing options available for small businesses—and each one comes with its own advantages and disadvantages. If you’re considering applying for a loan or line of credit from your bank in order to fund your operations and growth, here’s what you should know about each option:

Business loans

Business loans are the most traditional financing option for small businesses. They are usually long term, require collateral and have low interest rates. Business loans are used to fund large purchases or funding gaps in your business plan.

Lines of credit

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