SBA loans are government backed, and therefore are longer approval times, and lower interest rates.

This could be real estate, equipment or machinery, expansion capital, funding the purchase of another business, disaster recovery or even, in some cases, refinancing other debts.

A term loan is probably the most common form of business loan. Borrow a lump sum of money—usually for a specific purchase you’re making for your business—and pay the loan back over a set term, most often at a fixed interest rate, on a standard amortization schedule.

Term loans are meant for one-time purchases and upgrades, like buying buildings, IT upgrades or equipment purchases, as well as refinancing current debt into easily-manageable set monthly payments. Despite their low cost and larger amount of cash influx, they are not meant to be used for working capital. Unless there is a specific need, less available money through a credit line is always going to be better then a better solution, since you will only pay for the capital that is drawn, and whenever the need arises, cycle the money.