A business loan may come in handy if you own or manage a business. Depending on the loan type, you can use the funds to cover startup costs, marketing, inventory, payroll, commercial real estate, and anything else you need to run or grow your business.

Business loans or lines of credit account for 76% of the financing small businesses sought out, according to a 2022 report from Fed Small Business, a project of the U.S Federal Reserve.

Below, we’ll dive deeper into the types of business loans, what to watch out for, and how you can apply for one.