Small Business Lenders
$25,000 – $500,000
1 – 5 Years
$5,000 – $300,000
4 – 24 Months
$5,000 – $100,000
1 – 2 Years
Up to $250,000
Up to $200,000
1 – 12 Months
Actual offers vary based on your application information and lender.
For anyone seeking small business financing, there are a variety of things to consider, beginning with how much money is needed and what the business can afford to borrow.
Budget and Plan
It’s important to put together a budget and business plan that realistically anticipates financial needs and the cost of financing. Borrowing more money than necessary may provide a “cushion” against future needs, but it also results in larger payments and more interest paid to the lender.
What Do You Have to Back It Up?
Is there any collateral you can use to secure funds? A small business lender may be more willing to approve an application if the owner has some tangible assets to secure. This could include any property or major pieces of equipment owned by the business or the owner.
Of course, anything used as collateral could wind up being lost if the loan isn’t paid back accordingly. Another option might be to liquidate any assets and use the proceeds as the source of funding rather than seeking a loan.
Consider Leasing or Equipment Loans
If a loan is needed to purchase equipment, it might be worthwhile to pursue a lease arrangement instead.
There’s typically a down payment required, though the equipment provider might be willing to provide free shipping and maintenance. This can offer the benefit of avoiding financial surprises if the item breaks down and has to be replaced by the provider. An equipment loan involves financing a purchase over time from the seller.
Check for Fees and APR
Read the fine print before signing and make sure of what the fees are before coming to terms with a small business lender. It’s also a good idea to get a clear understanding of what the annual percentage rate of the loan is and compare it with other offers.
Where to Borrow?
A small business owner might have an easier time securing a commercial loan through a smaller bank than a larger one, especially if they already have a business relationship established. The same can be true of a credit union, though larger institutions might offer better terms.
There are also many online alternatives for small business lending. The advantage can be a streamlined process with funding secured at a faster pace. Online lenders may take a couple of days, whereas a bank might take a few weeks.
Is The Business Backer a Direct Funder?
Yes. The Business Backer provides business financing, with capital offered directly by us or through one of our many partners in our True Relationship Network™. We’ve offered advice and customized business funding solutions since 2007, working with our clients to find the lowest cost financing options available.
Whether you need funding for a one-time project or ongoing capital requirements, we’ll find the financing options that fit your business’s short-term and long-term goals.