Small Business Loans
$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.
Whether it’s for financing equipment, increasing inventory or expanding operations, a small business loan can be an important financing tool for any business owner. Small business loans might also be used for refinancing other debts, buying real estate or purchasing an already existing business.
According to the Small Business Administration, the median small business loan in the banking industry is around $130,000 to $140,000 with the highest around $250,000.
The Five Steps to Obtaining a Small Business Loan
Determine your needs:
Figure out how much you need to borrow, what exactly you’ll use it for and what kind of payments you can afford to make. Can you pay the loan back within a shorter period of time to reduce your overall borrowing cost? Is a longer-term loan a better option to reduce the size of each payment you’ll make to the lender?
Check your credit history:
A lender will want to check the credit history of the business and the owner. Make sure there aren’t any inaccurate statements and, if there are, take steps to correct them.
Gather the documents:
Whether a loan is obtained from a bank or an alternative lender, you’ll have to provide a certain amount of information. This may include a business plan with financial information such as profit and loss statements, cash flow, any outstanding debts and a balance sheet. Additional documents tied to business operations and other information may also be required.
Consider your options:
There are a variety of options for those seeking a small business loan including banks, credit unions and private lenders. Some things to think about are the amount of money your business needs to borrow and how long you can afford to wait for the funds.
Approach a lender:
Check with a loan officer to see what kind of loans are available and the information they require. It might be useful to maintain a list of all the required documentation and compare it to your application to make sure it’s complete. Loans can be denied or delayed because of incomplete paperwork. Also be sure to check what fees are involved and include them in calculating the cost of the loan.
What the Business Backer Provides
The Business Backer has offered advice and customized business financing solutions since 2007. Whether you need funding for a one-time project or ongoing capital requirements, we’ll find financing options that fit your business’s short-term and long-term goals.