For many small businesses, getting a loan can be the difference between business success and business failure. A loan can be critical for many purposes, including working capital, expansion, construction, equipment purchases, and more. However, sometimes, barriers can stand in your way, including not having the money to put down for the loan.

What is a “No Money Down” Loan?

These are loans that are exactly what they sound like: They require no money down. This means that you don’t need any money when you take out this loan, short of an application fee.

It is worth noting that there are short-term and long-term loans. According to Lantern Credit, a no money down loan has a length of, “…three to 10-year business loans are common, and some may even extend to 25 years, depending on the program.” For more information on these types of loans, you can check out long-term business loans on Lantern by SoFi.

Short-term loans are for lower time periods and often come with lower requirements in terms of collateral required. Short-term loans also typically have higher interest rates.

Thankfully, many loans are no money down – here are six of the best.

Six Best No Money Down Loans

• Term Loans: Many banks and financing agencies will offer “term loans.” These are loans that are due after a set period of time. Typically, the longer the loan, the lower the interest rate, but the more collateral you may be expected to put up. Furthermore, term loans will typically require application fees and credit checks.
• Invoice factoring: For many businesses, invoice factoring helps them avoid cash flow problems. You can turn your invoices over to a “factoring” agency. This agency will then pay you the vast majority of your invoice immediately, but you lose a percentage of the invoice as the price you pay for immediately boosting your cash flow.
• Microloans: The Small Business Association has a microloan program that will loan up to $50,000. These have competitive interest rates and require no money down.
• Equipment financing: These loans are ideal for the purchase of business equipment. They have no money down and no collateral requirements, as the equipment you are purchasing is colleterial.
• Credit Cards: If worst comes to worst, a business owner could always tap a credit card as part of a loan. This requires no money down, but will almost certainly come with heavy interest rates.
• Line of credit: Many banks allow businesses to access a line of credit. This is essentially revolving capital that can be accessed at any point, up to the limit that is established by the institution in question. Like other loans, this line of credit will come with interest rates and may also require some colleterial. They can also be more difficult to obtain, depending on your business needs and line of credit.

As a small business owner, you have a variety of financing options at your disposal. Make sure to do your homework and discover what loan works best for you.