Trying to Get Your Small Business Off the Ground? Consider Small Business Loan Offers
Starting a small business can be challenging, both logistically and financially.
Whether you’re looking to build from the ground up or cover related expenses, a small business loan is a great way to access essential funds to propel a small business towards success.
Using a small business loan to cover financial stressors allows small business owners to focus on driving revenue, propelling growth, and meeting their goals.
The trick, of course, is getting loans with manageable rates that will support the success of a small business, rather than risk falling into debt.
Where to Find Small Business Loans
There are plenty of different lenders to choose from for small business loans, which means you have multiple sources for the best small business loan rates.
Small business loan rates can vary greatly from one lender to the next—and these variances often stem from each lender’s basic business structure, as detailed below.
Banks
If you have an existing relationship with a local bank, you may want to check their rates for small business loans. Having a positive lending relationship with a brick-and-mortar bank can be valuable for those who prefer in-person meetings to discuss rates and terms.
Keep in mind, however, that new businesses may have difficulty taking out small business loans from large banks. Unless they specifically offer small business loan rates for new businesses, many banks require at least one year of operation.
Online Lenders
Online lenders are growing in popularity, and many small businesses find the best terms and lowest rates through online lenders.
Not only are loan applications easier to fill out, but they also tend to have the quickest response rates, meaning that you could potentially get an answer within hours.
Credit Unions
If you are a member of a credit union—or are eligible to become one—a credit union can be a great resource for affordable small business loans.
Because credit unions have lower operating costs, they often offer competitive small business loan rates with flexible lending terms.
Small Business Loan Requirements
When it comes to small business loan requirements, there is no one-size-fits-all solution. Each lender will have their own unique prerequisites, which means it’s crucial to do your research before sending in an application.
Understanding small business loan requirements enables you to identify which lenders are best suited for your unique financial situation. On the other hand, it also means you can spend less time filling out loan paperwork and more time focusing on your business.
A few examples of small business loan requirements may include:
- Age of the business
- Average annual revenue
- Credit score
No matter which lender you choose, you’ll want to make sure that their eligibility requirements are clear—and that you fit the requirements—before you submit your application.
Key Factors to Consider for Small Business Loans
Affordable rates are great, but there are plenty of other factors that should be evaluated when choosing the best small business loan for you.
Along with their unique loan requirements, keep these factors in mind when comparing small business loans to make sure that you get the best lender for your needs.
Loan Amounts
Before you find the best small business loan rates, you should have a clear idea of how much money you’ll need to borrow. Maximum loan amounts can shift drastically from one lender to the next, especially when comparing online lenders to traditional banks.
Make sure that your lender of choice can accommodate you with the right loan amount before you send your application through.
Flexible Terms
Each business is different, making flexibility a subjective concept within small business loans. Still, it’s important to consider how much flexibility you’ll need for your repayment plan.
If you’re looking for variety, you’re in luck—many of the best small business loan rates come with repayment terms anywhere between 6-60 months, accommodating a range of business needs.
Solid Lending Reputation
Not all lenders have enough visibility to warrant reviews from previous borrowers, but it certainly doesn’t hurt to have a little bit of positive press.
Positive reviews and BBB accreditation can do wonders for instilling borrowing confidence. Paired with affordable small business loan rates, a solid lending reputation is certainly a good sign.
Application Process
Many peer-to-peer lending sites and online-only banks strive to make the application process as quick and painless as possible, making it easy to send an application from your own couch—or, if you’re already in business, your own office.
Even better, the turnaround process for these types of lenders is often just as efficient, with funds available within a few days.
Take Your Time in Signing Up for a Small Business Loan
While it might be tempting to jump on the first small business loan rate that you find, don’t forget to take your time. Managing a small business is a huge commitment, and taking out a small business loan only increases that responsibility.
Choose a few lenders and compare their rates, terms, requirements, loan amounts, and overall reputation before making a decision.
With the best small business loan rates, not only will you be able to boost your financial stability, but you will also be setting your small business up for success.
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.