There are a number of types of institutions that offer small business loans, although each type of lender may be better suited to different lending situations.

• Banks include traditional savings banks, savings and loans, and commercial banks, and are generally the first place small business owners think of when looking for institutional financing.
• Credit unions can offer generous terms to their members, but make mostly consumer loans.
• Consumer finance companies may be willing to make higher-interest loans to higher-risk borrowers.
• Commercial finance companies may be worth considering if you need a loan for inventory or equipment purchases.