Owning and operating a small business can be challenging sometimes. However, when it comes to loans, small businesses have it easier than big businesses. There are dozens of small  business loans and ways to fund and support  your business. Here is why you will have an easier time borrowing money than say, that big business down the street.

Government Spends a Lot of Money on Small Businesses

Small businesses can grow into larger ones. Even if these businesses do not get very large, they do become large enough to create more jobs. This is why the government offers small businesses more loans, and why the government spends billions of dollars annually trying to get small business owners to beef up their businesses with financial support.

Banks Like Giving Money to Smaller Businesses

Smaller businesses are more likely to pay back the loans they receive from banks because the owners want to be able to borrow more in the future when they need it. Big business owners do not feel quite so obligated because they know that they will always turn over a new dime tomorrow. Banks also like to lend to small businesses as small businesses contribute to the local economy and it has a "trickle down" effect in terms of money and financial consumerism.

Investors Are Always Looking for Promising "Start-ups"

It is not just banks and the government that love and support small businesses. Investors love small businesses, too. If an investor looks at how well you have been doing, and your business has been a promising "start-up," an investor will contribute money to help you grow for a percentage of the profits and repayment of the loan he/she gave you.

There Are Many Alternative Funding Options

Small businesses are able to take advantage of numerous alternative funding programs. Digital payment systems, credit lines from credit card companies, and monetary advances on a month's worth of sales receipts are just a few options. Good credit, bad credit; it makes almost no difference when it comes to some of these alternative options. 

Repayment Terms Are More Flexible for Small Businesses

It should come as no surprise, but repayment terms for SBA loans and other small business capital are more flexible than if you were a big business owner. Big business owners have to play by the hard and fast repayment rules, since it is expected of them to turn much larger profits faster. Their repayment amounts are often bigger, with higher interest rates on "jumbo" business loans. While you may envy the amounts the big business owners borrow, you would not envy the cost of having to repay with their repayment terms.