Drawing on multiple sources of funding is immeasurably useful in a small business. The need for funds arises with regularity, both at the outset of establishing a new business, and over the course of a business’ lifespan. You may need money for expansions, payroll, inventory, or any number of other expenses. Below are three loan types that be be useful for your small business.

1. SBA Loans

SBA loans encompass a wide variety of loans that are partially backed by the small business administration. They can be useful for any number of purposes, including purchasing owner-occupied real estate, expanding a business, starting a new business, or much else. Loans types include the following:

• 7(a) loans
• CDC/504 loans
• CAPLines
• Microloans
• Export loans
• Disaster loans

While SBA loans can be very favorable for businesses under certain circumstances, they also require extensive documentation and long application periods, and so they are typically not the fastest means of accessing funding.

2. Lines of Credit

Lines of credit allow businesses to draw money up to a certain limit, which “refills” once the amount borrowed is paid back. They may be secured (backed by some form of collateral) or unsecured (not backed by collateral, and potentially harder to obtain).

Lines of credit are extremely useful under many circumstances. They are a great way to maintain consistent access to funds for emergency and/or relatively small purposes. If you are short on cash and need money immediately, drawing from a line of credit can be a lifesaver. Likewise, consistent use of a line of credit for small to medium-sized purchases can be an excellent way to build up your credit.

Typically, a line of credit is not the most effective type of loan for large purchases, like major business expansions.

3. Asset-Based Loans

An asset-based loan is typically a one-time sum loaned against the value of a given asset — real estate, equipment, inventory, or something else — that you as the borrower put up as collateral. Asset-based loans are typically fairly quick to acquire, and relatively unrestrictive about how they can be used, because they are valued exclusively on the value of given collateral.

However, it’s best to be cautious with an asset-based loan, because defaulting and losing a valuable asset can be devastating.

These are only three forms of lending available to small businesses. In general, it is best to consult with a financial professional to determine what type of loan is best for you.