This is a question was originally posted on Quora.

There are a lot of factors that come into play but for many it is best given the combination of low rates and longer terms which lead to lower payments.

Low equity (down payment) requirements help as does the option in many cases to get financing for your initial working capital.

Other options which might be better for some businesses include:

• Equity – taking on a partner or raising equity so that you don’t have the cost of debt.   Kickstarter and similar platforms have made this option available in ways not possible in years past.
• Mezzanine – equity & debt financing mix.   This is a very sophisticated financing option that won’t be found at your local bank but could make sense.
• 401k – there are companies that specializing in converting your retirement funds into a financing vehicle for a business acquisition.
• Credit Cards – especially for businesses requiring $100k or less this is a very legitimate and sometime more cost effective method.

There are many more options but if for some reason SBA financing wasn’t a perfect fit or you want to evaluate other alternatives before finalizing a decision I would consider among the this list.