Small Business Financing Options

While it’s not easy to get the small business financing you need, there are some options that can help you grow your business. A traditional bank can provide competitive rates and terms, but applicants often need good personal credit, two years of business operation, and established revenue. Your local bank may be able to help you determine which options are the best for your business. Contact your existing bank or search for one that is nearby. After determining the type of loan you need, you can begin applying for the loan.

In addition to banks, there are many online lenders that offer small business financing. Some of them are better than others. Independence Bank, with its headquarters in Providence, RI, specializes in SBA loans. This bank focuses on lending up to $150,000, but it can offer larger amounts as well. It doesn’t offer startup funding, so you’ll need to have been operating for two years or more before applying. However, they do allow you to purchase your own business.

Other options include traditional lenders and online lenders. Traditional lenders will ask you for business documents and will typically offer a larger loan amount than online lenders. A business bank account with a reputable lender is a must. Although a credit union or bank may not offer you a small business loan, they might offer attractive terms. While these options aren’t as popular, they can still be an excellent option for a small business.

Independence Bank is another small business bank in Rhode Island that offers SBA finance nationwide. This institution specializes in the Small Loan Program, so it’s a good choice if you’re looking for a loan of around $150,000. This bank doesn’t fund start-ups, but will support you if you’ve been in business for two years. It’s also a good place to buy an existing business.

Another source of small business financing is a bank loan from a family member or an angel investor group. A small business owner can borrow up to 50% of its total capital from these sources, but this is unlikely to be enough for a startup. Alternatively, they can obtain the loan from a local bank. Usually, this method requires a 25 percent down payment and ongoing payments to the seller, while a bank loan will be a more suitable option for an established business.

Before looking for a small business financing, you need to decide what kind of financing you need. You can choose from short-term and long-term loans. Different types of small business financing have different turnaround times and restrictions. Make sure to find the type that meets your needs. You can even look for a free online calculator to help you compare different lenders’ offers and compare terms. A free online calculator can help you compare multiple lenders’ rates and terms.