How Business Lines Of Credit Work

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The Best Alternatives To Fundbox

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The Best Business Loan And Financing Resources For Iowa Small Businesses

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Maryland Small Business Loans

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The Best Business Loan And Financing Resources For Connecticut Small Businesses

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The Best Business Loan And Financing Resources For Oregon Small Businesses

Sandwiched between booming tech sectors in California and Washington, Oregon is one of the quirkier states in the nation in which to start a business. Oregon is widely considered a great state in which to start a small business, but a difficult state in which to grow one, so you’ll want to be aware of the financial resources available to you if you’re operating within the Beaver State.

Below, we’ll look at some of the types of financing you can access in Oregon, as well as some specific resources you can tap.

Online Business Lenders For Oregon Businesses

Geography can be cruel, and Oregon has some of the most formidable and varied environments in the nation (valleys, mountains, dessert, ocean). Finding a local lender can be easy if you’re in Portland, but may be challenging in some of the more remote areas of the state. Luckily, geography matters much less than it used to when it comes to financing.

What are the advantages of working with an online lender? Generally speaking, online lenders are faster, have simpler application processes, and more flexible lending standards than traditional lenders. The tradeoff, of course, is they also tend to have higher rates and more concentrated repayment term lengths. That said, the best online lenders offer transparent terms and excellent customer service.

Oregon has some of the stricter usury laws in the nation, which helps to weed out more predatory online lenders. Note that regulations governing loans usually only apply specifically to loans and not to loan-like products like merchant cash advances.

Here are a few of the better ones that lend within Oregon:

SmartBiz

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SBA loans offer some of the best terms small businesses can find, but the application process can be a bit of an ordeal. For those who want some help navigating it, SmarBiz will streamline and walk you through the process.

BlueVine

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BlueVine is an alternative option for businesses that need a line of credit or that have unpaid invoices that they’d like to cash in a little early. Invoice factoring is not for everyone, but it is a way to infuse your business with cash without going into debt.

LoanBuilder

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PayPal’s LoanBuilder service is one of the faster and more transparent digital lenders, allowing you to tweak the terms of your loan somewhat to fit your needs. Their rates are also pretty decent, but as short-term loans, you’ll have to pay them back fairly quickly.

Fundbox

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Businesses with credit issues can have a hard time finding funding, but lenders like Fundbox make it a little bit easier. Like BlueVine they offer lines of credit and invoice factoring. They also offer a service similar to invoice factoring called Fundbox Pay, which allows sellers to receive money for their services right away.

While Fundbox doesn’t have any hard credit requirements, they do want to see that your business does at least $50K/year in revenue.

Lendio

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Lendio is a great resource for businesses that are tapping the online lending market for the first time and don’t have a lot of time to fill out multiple applications. Lendio lets you access their network of lenders with a single application and with no direct fee.

Oregon Banks & Credit Unions

Just because online lenders offer speed and convenience, don’t think brick and mortar banks are obsolete. Bank and credit unions tend to offer better rates and terms, provided you have the credit to qualify for them.

If you’re happy with the bank or credit union currently servicing your accounts (and they’re happy with you), it’s often a good idea to start there. The advantage is they already have a sense of you as a customer and records of your financial transactions, which can save you a few steps when you’re applying.

National banks with branches in Oregon include:

Chase Bank

You can find Chase branches in most of the country, particularly in urban areas like Portland. Chase has some of the best business loans rates you can find, but they’re very selective about who they lend to. You’ll also need to be able to get to a branch in person; no digital applications here.

Borrower requirements:
• Must have excellent credit (high 600s)
• Must have access to a Chase Bank branch
Read our Chase Bank review

Bank Of America

If you live along the I-5 corridor, you should have little trouble finding a Bank of America branch. Even if you don’t, BoA does allow you to apply for a couple of products online, making them a more convenient option for remote customers.

Line of credit borrower requirements:
• Must have been in business at least 2 years.
• Must have a personal credit score of 670 or above.
• Must have revenue > $200,000 for unsecured products, or greater than $250,00 for secured products.
Read our Bank of America review

US Bank

US Bank has Oregon well-covered with branches, even in secondary and tertiary markets. If you want to deal with a big bank that’s a bit more approachable, US Bank is a solid option.

Borrower requirements:
• Must be located in a state served by U.S. Bank
• Must have been in business for two years
Read our U.S. Bank review

Credit Unions

As non-profit entities, credit unions can, at least in theory, provide lower rates than similar for-profit entities. Whether or not they offer business lending will vary from union to union, though in many cases you may be able to leverage personal loans for business purposes.

Some of the more accessible credit unions in Oregon include:

  • OnPoint Community Credit Union 
  • Oregon Community Credit Union
  • Selco Community Credit Union
  • Rogue Credit Union
  • Columbia Credit Union

Small Business Grants In Oregon

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Why go into debt when you can get money for free? Grants can provide your business with just that: free money.

Of course, nothing’s truly “free.” Grants are highly competitive. If you’re trying to get one, expect to spend a lot of time in pursuit. They also tend to be very specific with regards to what they can be used for, so finding a grant that fits your business goals can be time-consuming.

For some general advice on where to find them, check out our grant feature.

Resources For Startups In Oregon

Remember how we mentioned Oregon is a good place for starting a small business? The state has some well-developed infrastructure that new businesses can tap.

One of the best resources for finding these programs is the state’s economic development agency, Business Oregon. They can help you access state programs like:

  • Oregon Business Development Fund: Offers up to $1 million in direct loans to business that create or retain jobs in manufacturing, processing, or distribution. Preference is given to businesses local in rural or distressed areas.
  • Small Business Expansion Loan Fund: Offers up to $250,000 direct loans to expanding businesses.
  • Entrepreneurial Development Loan Fund: Offers up to $75,000 to businesses with less than $500,000 in revenue looking to get established in Oregon.
  • Oregon Credit Enhancement Fund: A loan guarantee program available to most businesses in the state.

What To Consider When Choosing A Lender

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Remember that your lender ultimately has to serve your needs, not the other way around. Don’t settle for a deal that’s bad for your company.

Need some help narrowing down lenders? Here are some factors to consider:

  • Your Industry: Some lenders specialize in lending to specific industries. Others can’t or won’t lend to certain industries. If they can’t write you a loan, cross them off your list.
  • Borrowing Amount: If you need $5,000, you’ll be looking at different lenders than if you need $5 million. Choose the right tool for the job.
  • Rates & Fees: How much is it going to cost you? Are the lender’s rates in line with the industry standard? Do they tell you what additional fees they charge, or do they hide them?
  • Time To Funding: Do you need the money right away or next quarter? Choose a lender that can work with your timetable.
  • Term Lengths: You’ll want to know how quickly you have to pay the money you’re borrowing back. Make sure you can afford the loan over the long-term.
  • The Type Of Expense Being Financed: Some financial products are limited in what they can be used for. Do you need a lump sum of cash? Or do you need a line of credit that you can draw upon periodically?
  • Collateral: Secured loans and lines of credit require some form of collateral, usually in the form of an asset, real estate, or cash deposit. If you don’t have collateral to put it, you’ll want to look at unsecured loans.

Final Thoughts

If you’re ready to start a business in the Pacific Northwest, or planning to expand the one you already have, there’s no shortage of resources to help you reach your goals. Now that you know the basics, what’s next?

Want to see more options for business loans in Oregon? We can help you compare lenders and credit cards.

Just starting out? Check out our resources for startups.

Need more specialized information? Check out our small business loan recommendations for veterans, women, minorities, or individuals with bad credit.

What’s Next
    • Learn what you can write off as small business tax deductions
    • Business loan options that don’t require a credit check
    • A guide to consolidating business debt

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The Best Business Loan And Financing Resources For Massachusetts Small Businesses

In 2018, Massachusetts was the fastest-growing state in the Northeast, with its population growing by over 5%. As its population grows, so does the state’s economy. Once known for agriculture, trade, and fishing, this state has grown to become a global leader in finance, biotechnology, and other modern industries. Massachusetts has even been named by as the most innovative state by Bloomberg.

With a strong economy and new opportunities always on the horizon, there’s no better time than now to launch or expand your own small business. Whether you’re the owner of an established business or you’ve only flirted with the idea of entrepreneurship, the state of Massachusetts has small business financing and resources available to you.

If you’re ready to launch your business or take your existing business to the next level, keep reading! Instead of poring through hundreds of small business lenders and resources, we’ve handpicked the best options for you. Whether you’re seeking low-interest loans, fast financing, or free business tools, this guide has you covered. Read on to find out more about the small business resources available to Bay Staters.

Online Business Lenders For Massachusetts Businesses

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Running your own business keeps your schedule full. When you need extra capital for your business, it seems like there aren’t enough hours in the day to head to your local lender. Fortunately, there is a solution that allows you to get the financing you need without spending hours at the bank. That solution is to work with an online business lender.

Through online lenders, you can apply for your loan, submit documentation, and even receive funds all without ever leaving your office. With online lending, you have more choices than ever and many online lenders also have less stringent requirements than traditional lenders. This means that you can access capital even if you have credit score challenges, haven’t been in business for long, or don’t meet typical revenue requirements.

On the one hand, having so many lenders to choose from is great because you can shop around your options. On the other hand, knowing where to even start can be a challenge. Instead of scouring the internet alone, check out what these online lenders have to offer.

SmartBiz

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You don’t have to go to your local bank to get a low-interest, long-term loan. Small Business Administration loans not only have competitive interest rates but are also easier to qualify for than traditional business financing. While you can visit a lender in person to apply for an SBA loan, smart business owners know that SmartBiz is the way to go.

SmartBiz is an online marketplace that has helped small business owners receive more than $1 billion via SBA loan programs. Through SmartBiz, you may qualify for a loan is as little as 5 minutes and receive your funding in just 7 days. The application process is streamlined so you can get the funding you need as quickly and easily as possible.

There are two loan products to consider. The first option is SmartBiz’s SBA Working Capital and Debt Refinancing Loans. These loans can be used to refinance business debt, expand your business, pay for a marketing campaign, hire employees, purchase equipment, or increase your inventory.

Through this program, you could receive $30,000 to $350,000. Interest rates are 8.25% to 9.25% with repayment terms up to 10 years.

To qualify for this loan, you must meet these requirements:

  • U.S. citizen or permanent resident
  • At least 2 years in business
  • Personal credit score of 640 or above
  • Sufficient cash flow for loan payments
  • No bankruptcies or foreclosures in the last 3 years
  • No defaults on government-backed loans
  • No outstanding tax liens

The second SBA loan program available through SmartBiz is the SBA 7(a) Commercial Real Estate Loan. With this loan, you can receive between $500,000 to $5 million to purchase commercial real estate or refinance your existing commercial mortgage. Interest rates are 7% to 8.25% with repayment terms up to 25 years.

The following are the requirements for receiving this loan:

  • U.S. citizen or permanent resident
  • Property must be at least 51% owner-occupied
  • Purchase price must be greater than $500,000
  • No new construction or investment properties
  • At least 3 years in business
  • Personal credit score of 675 or above
  • No bankruptcies or foreclosures in the last 3 years
  • No defaults on government-backed loans
  • No outstanding tax liens

If an SBA loan doesn’t seem like the right option for you at this time, you can also apply for a bank term loan from one of SmartBiz’s lending partners. You may qualify for $30,000 to $200,000 with repayment terms up to 5 years and fixed interest rates starting at 6.99%.

Lendio

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No time to send out applications to multiple lenders? Give Lendio a try. With Lendio, you can get offers from multiple lenders through just one application. Lendio is a loan aggregator that has partnered with over 75 lenders, making it easier than ever to compare your financing options.

Through Lendio, you can apply for nearly any type of business financing, including:

  • SBA Loans: $50,000 to $5 million
  • Term Loans: $5,000 to $2 million
  • Short-Term Loans: $2,500 to $500,000
  • Lines Of Credit: $1,000 to $500,000
  • Equipment Financing: $5,000 to $5 million
  • Startup Loans: $500 to $750,000
  • Accounts Receivable Financing: Up to 80% of receivables
  • Commercial Mortgages: $250,000 to $5 million
  • Business Credit Cards: $1,000 to $500,000
  • Merchant Cash Advances: $5,000 to $200,000

Rates, terms, and requirements vary by product and lender. Time to funding also varies, but some products are available in as little as 24 hours. There is no obligation to accept an offer, and receiving your offers will not impact your credit.

Unsure of which business loan is best for you? Learn more about the different types of small business loans.

OnDeck

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OnDeck has provided $10 billion to businesses around the world, and you could be the next business to get the capital you need. Through OnDeck, you can apply for one of two financing options: term loans and lines of credit.

A term loan provides you with a lump sum of capital in amounts up to $500,000. Short-term loan options come with 3- to 12-month terms and are best for purchases that deliver an immediate return on investment, such inventory or a new marketing campaign. The long-term option gives you 15 to 36 months to repay your loan and is best for larger purchases such as expanding your business or buying equipment.

OnDeck’s short-term loans have simple interest rates starting at 9%. This is the total amount of interest you will pay and is a percentage of your borrowing amount. Long-term loans have a 9.99% annual interest rate. OnDeck also charges an origination fee of 0% to 4% of your loan amount for short- and long-term loans. Payments are made daily or weekly and are automatically deducted from your checking account.

To receive a small business loan from OnDeck, you must have:

  • Time in business of at least 1 year
  • At least $100,000 in annual revenue
  • Personal credit score of 600 or above

If you need a more flexible financing option, consider applying for an OnDeck line of credit. You can receive up to $100,000 to cover unexpected expenses, make up for gaps in income, or for any business purpose. Rates start at 13.99% and payments are automatically deducted from your checking account each week. A $20 monthly maintenance fee will also be applied, but the lender will waive the fee for 6 months if you draw at least $5,000 within 5 days of opening your account.

To qualify for this option, you must have:

  • Time in business of at least 1 year
  • At least $100,000 in annual revenue
  • Personal credit score of 600 or above

Fundbox

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What do you do if your business is performing well, but you don’t have an excellent credit score? There are options open to you, including a line of credit from Fundbox.

Fundbox bases its approval decision on the performance of your business, so you don’t have to have perfect credit to qualify. Through Fundbox, you may be eligible to receive a revolving line of credit with limits up to $100,000. You’ll repay the lender over a period of 12 or 24 weeks. Fees start at just 4.66% of the draw amount.

If you don’t use your line of credit, you won’t pay a dime. If you do make a draw, you can pay your balance off early and save since Fundbox waives all remaining fees. Payments are automatically deducted from your business checking account each week. As you pay down your balance, funds will become available for you to use whenever you need them.

To qualify for a Fundbox line of credit, you must have:

  • A U.S.-based business
  • At least $50,000 in annual revenue
  • A business checking account
  • At least 3 months of transactions in a business banking account OR at least 2 months of activity in supported accounting software

BlueVine

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If you’re seeking a higher limit for a line of credit, you can receive up to $250,000 through BlueVine. Rates start at 4.8% for the most creditworthy borrowers. There are no fees if you don’t use your line of credit. Repayments are made on a monthly or weekly schedule over 6 to 12 months.

To qualify for BlueVine’s line of credit, you must have:

  • Personal credit score of 600 or above
  • Time in business of at least 6 months
  • At least $100,000 in annual revenue

If unpaid invoices are causing your cash woes, BlueVine offers an invoice factoring service that could provide you with up to $5 million. You can receive up to 90% of the balance of your unpaid invoices up front. Then, once the customer pays the invoice, you’ll receive the remaining balance, minus fees. Fees start at 0.25% per week.

To qualify for invoice factoring, you must be a B2B business that meets these requirements:

  • Personal credit score of 530 or above
  • Time in business of at least 3 months
  • At least $100,000 in annual revenue

Amex Business Loans

American Express OptBlue

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Worried that applying for financing will harm your credit score? If you’re an American Express cardholder, there may be an option available for you that has no impact to your credit score.

American Express Business Loans provide you with $3,500 to $50,000 in capital for your small business. You can repay your loan over 12, 24, or 36 months. These loans come with fixed APRs of 6.98% to 19.97%.

This offer is available only to select American Express Business cardholders. By logging into your Amex account, you can find out if you’ve been preapproved. This preapproval will provide the maximum borrowing amount and your maximum rate. After providing some information about your business, you could receive your funds in as little as 3 business days if you’re approved.

Because American Express uses the information it has on file for you, there’s no impact to your credit to apply. To qualify, you must meet these requirements:

  • Hold a Basic Card or Business Card
  • Be in good standing with American Express
  • U.S. citizen or permanent resident
  • Be at least 18 years old

Amex Merchant Financing

American Express OptBlue

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If you don’t qualify for American Express Business Loans, you may be able to get the capital your business needs through Amex Merchant Financing. If your business accepts American Express cards, you could qualify for this funding option.

Amex Merchant Financing provides $5,000 to $2 million to qualified business owners. Repayments are made over 6, 12, or 24 months. You’ll pay one fixed fee of 1.75% to 20% to take advantage of Amex Merchant Financing. Repay early and you can receive a rebate of up to 25% of your fixed fee.

Daily payments are automatically deducted to pay off the lender. You can opt to have a fixed amount taken from your business bank account, or you can choose to get a percentage of your daily receivables withdrawn.

To qualify for Amex Merchant Financing, you must have:

  • A business that accepts American Express cards
  • At least $50,000 in annual revenue
  • At least $12,000 in annual debit and credit receivables
  • Time in business of at least 24 months

Upstart

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Many of the previous options listed require at least a few months in business, but what do you do if you’re looking for capital to launch your business? Time in business requirements could bar you from receiving small business financing. However, you could qualify for a personal loan to use for business expenses.

Because this isn’t a business loan, time in business, annual revenue, and business credit history aren’t considered. Instead, your personal credit score and annual income are used to qualify you for a loan through a lender such as Upstart.

Upstart offers qualified borrowers $1,000 to $50,000. These funds can be used to fund your startup costs or cover other business expenses. Upstart’s APRs range from 7.54% to 35.99% based on creditworthiness. Repayment terms are 36 to 60 months.

To qualify for an Upstart loan, you must:

  • Be a U.S. citizen or permanent resident
  • Be at least 18 years old
  • Have a valid email account and a verifiable name, date of birth, and SSN
  • Have a source of income
  • Have a personal bank account
  • Have a personal credit score of at least 620

In addition to your credit score, Upstart will consider other factors of your personal credit profile. Additional qualifying requirements include:

  • No bankruptcies or public records
  • No delinquent account
  • Less than 6 inquiries over the last 6 months
  • Solid debt-to-income ratio

Banks, Credit Unions, & Nonprofit Lenders In Massachusetts

While online lenders make borrowing easier and more convenient than ever, you may still prefer to go the traditional route with a local bank, credit union, or nonprofit lender. If you haven’t already established a relationship with a local institution, consider one of these lenders that serve small business owners in Massachusetts.

Eastern Bank

Eastern Bank was founded in 1818 and has its headquarters in Boston. Today, there are over 120 locations throughout Massachusetts and New Hampshire in cities including Boston, Burlington, Reading, and Lowell.

Eastern Bank offers multiple financial services for small business owners. The institution not only offers business checking and savings accounts, but entrepreneurs can also take advantage of the following services:

  • Eastern Express Business Loan: Up to $100,000
  • SBA 7(a) Loans: Up to $5 million
  • SBA 504 Loans: Up to $5 million
  • Cash Reserves: Up to $10,000 to protect against overdrafts
  • Business Term Loans
  • Lines Of Credit
  • Business Credit Cards

Eastern Bank also has commercial financing options, including industrial lines of credit, commercial real estate loans, and asset-based lending.

You can learn more by visiting your local Eastern Bank branch or applying for your chosen financial product online.

Metro Credit Union

If you want a more personalized experience, consider joining a local credit union, such as Metro Credit Union. This institution has locations throughout the state of Massachusetts to best serve more than 200,000 members. Metro Credit Union branches are located in cities including Boston, Lawrence, Framingham, and Salem.

As a member of Metro Credit Union, you may be eligible to receive small business financing through one of its lending programs including:

  • Commercial Real Estate Loans
  • Business Lines Of Credit
  • Business Term Loans
  • Unsecured & Secured Business Credit Cards

Metro Credit Union also provides merchant credit card services, payroll services, and additional services to small business owners in Massachusetts.

To apply for financing, you must be a Metro Credit Union member. To become a member, you must:

  • Live, work, or own a business in one of the following counties: Barnstable, Bristol, Essex, Middlesex, Norfolk, Plymouth, Suffolk, Worcester
  • Open a Metro Regular Savings account with a $5 deposit

Common Capital

Common Capital is a community loan fund and nonprofit organization that provides tools, resources, and financing to small businesses and community projects in order to strengthen communities.

Through Common Capital, small business owners can apply for fixed and variable rate loans and lines of credit. Funding of up to $300,000 is available and can be used for the following purposes:

  • Working Capital
  • Inventory & Supplies
  • Equipment
  • Startup Costs
  • Business Acquisitions Or Expansion
  • Debt Refinancing
  • Leasehold Improvements Or Real Estate

Repayment terms are up to 10 years. Payments can be structured to account for seasonal fluctuations in revenue.
To qualify, you must own a business in the counties of Berkshire, Franklin, Hampshire, or Hampden. If you reside in Worcester County, you may be eligible to apply for the Fast Track Program, which provides up to $50,000 with a fast turnaround.

Loan applications are available online. You must provide historical financial statements and/or three years of future financial projections with your application. Startups must also include a business plan. The typical time to underwrite and close the loan is 4 to 6 weeks after the completed application package has been received.

Small Business Grants In Massachusetts

Grants are another source of financing you can use to start or grow your business. The good thing about grants is that these aren’t loans, so you won’t incur debt. You won’t have to repay the grant or worry about interest or fees.

However, this free money isn’t available to just anyone. Most of the time, you have to meet very specific requirements for small business grants, such as being in a particular industry or being a minority, woman, or veteran business owner. Even if you do qualify, most grants have many applicants.

While it isn’t guaranteed that you’ll receive a small business grant, there’s no harm in applying if you meet all of the requirements. There are a variety of state and federal resources available to help you locate small business grants, but you can kick off your search with these options.

State Trade Expansion Program Grant

The State Trade Expansion Program (STEP) grant is offered through the Massachusetts Office of International Trade and Investment in partnership with the Massachusetts Small Business Development Center Network, the Small Business Administration, and the Massachusetts Export Center. This grant is designed to help offset the costs of international business development and associated marketing costs.

Through this program, eligible small businesses can receive reimbursements of up to $12,000 for expenses including:

  • Compliance testing products for entry into an export market
  • Design of export market-specific marketing media
  • Overseas trade show or conference expenses

To qualify for STEP funding, an online application must be submitted. Proof of payment for the project, service, or activity must also be submitted for consideration. Applicants are also required to match 25% to 40% of funding.

Office Of Safety Workplace Safety Training Grant

The Office of Safety Workplace Safety Training Grant is a reimbursement program for businesses located in Massachusetts. This grant is provided through the Department of Industrial Accidents. Qualifying businesses can receive up to $25,000 to pay for training and education promoting workplace safety.

Businesses of all sizes are eligible to apply provided they are operating within the Commonwealth of Massachusetts and are covered under the state’s Workers’ Compensation Law.

To qualify, you must submit a grant package. Your package must include the grant application, a description of your business, training goals, a budget narrative and summary, qualifications of training providers, and a Department of Revenue Certificate of Good Standing.

Workforce Training Fund

The Workforce Training Fund provides business grants to support the training needs of businesses throughout the state of Massachusetts. There are two grant programs available.

General Program

The General Program is open to businesses of all sizes. Businesses can receive a training grant up to $250,000 through this program. Training grants must be matched dollar-for-dollar by the grant recipient.

Express Program

This program is open to businesses with 100 or fewer employees. Grants of up to $30,000 per company and $3,000 per employee per course are available through this program. Companies will be reimbursed up to 50% of training costs.

Grants can be used to pay for training for current and new employees. An online application can be submitted along with a cover letter, Certificate of Good Standing from the Department of Revenue, and a description of training modules and courses.

Loans & Resources For Startups In Massachusetts

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Finding the loans and resources you need for your startup business doesn’t have to be challenging. If you’re a small business owner in the Bay State, consider putting the following resources to work for you.

SCORE

The SBA’s SCORE program provides free and low-cost services and resources to small business owners. Through SCORE, you can take advantage of free business counseling and mentoring online or at a SCORE location near you.

SCORE also offers local workshops on a variety of small business topics such as accounting, management, and marketing. These events allow you to educate yourself on these topics while networking with other local business owners.

SCORE also has additional tools and resources available on its website. This includes business guides, free templates, and blogs that offer helpful tips and tricks to business owners.

There are multiple SCORE branches located throughout the state of Massachusetts in cities including Boston, Springfield, Amherst, and Salem.

Massachusetts Small Business Development Center Network

Since 1980, the Massachusetts Small Business Development Center (MSBDC) has provided free and low-cost resources to startups and established businesses. Through MSBDC, you can receive free one-on-one business counseling.

MSBDC also hosts free and low-cost seminars and events throughout the state. You can learn more about business topics such as developing your business plan, cash flow analysis, and financing options.

MSBDC offices can be found throughout the state in cities including Springfield, Fall River, Boston, and Salem.

What To Consider When Choosing A Lender

We’ve given you a list of lenders to finance your small business. Maybe you’ve even done your own research and have your own list. Now, it’s time to make a difficult decision: which lender should you work with? It’s important to weigh out all of your options and not just stick with the first lender that gives you an approval. You want to make sure that you make the wisest financial decision for your business. Do this by asking yourself the following:

Why Does My Business Need Money?

What is the purpose of your business loan? Not only will you have to put this on your loan application, but knowing exactly how you plan to use your funds can help narrow down your lender options. Let’s say that you want a flexible line of credit for emergency expenses. If a lender specializes in SBA loans, short-term business loans, or other financing that provides a lump sum, move on to the next lender.

How Much Money Does My Business Need?

Again, this is something you will need to include on your application. But you can also use this information to sort through lenders. If you need financing of at least $100,000, lenders that have lower maximum borrowing limits can be crossed off your list.

Can My Business Afford The Loan?

Lenders will look at a variety of factors to determine if you can afford a loan or other financial product. If you can’t, your application will be denied or you may be approved for a smaller amount. Don’t rely solely on the lender to determine the affordability of your loan. Consider your incoming revenue, your current expenses, and any fluctuations in income. Then, shop around with lenders that not only offer the amount of financing you need but also have the lowest rates and best terms for your situation.

Do I Meet All Requirements?

Do you meet all the requirements of your chosen lender? If a lender requires an excellent credit score, borrowers with scores below this requirement will be declined.

Have bad credit that’s preventing you from getting an affordable loan? If your need isn’t urgent, take the time to boost your credit. Obtain your free credit score, review your report, and take a few easy steps to raise your credit score. This will help you receive higher borrowing amounts, lower rates, and better terms.

Make sure you meet all other requirements, including time in business, annual revenue, and business credit history.

Final Thoughts

Starting or growing your small business can be a challenge. However, with the right resources and a source of capital, you’ll increase your chances for success. The state of Massachusetts offers multiple resources and financing options for your small business. You just need to take the time to evaluate the needs of your business and choose which resources offer the most benefits to you.

The post The Best Business Loan And Financing Resources For Massachusetts Small Businesses appeared first on Merchant Maverick.

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Top Unsecured Lines Of Credit For Business

Business financing is an expansive topic covering many types of financial products. Everyone’s got a pretty good idea of what a loan is, but less familiar is the line of credit, arguably one of the most useful types of financing a business can secure.

We’ll take a look at what lines of credit are, the difference between secured and unsecured lines of credit, why you might want one, and where you can find them.

What Is An Unsecured Business Line Of Credit?

Have you ever had a credit card? If so, you have already have some experience with how a line of credit works.

When you use a credit card, you’re drawing on an amount of potential funding extended to you by the card’s issuer. You can use it as often as you want so long as the total amount you’ve used doesn’t exceed your credit limit. Most credit cards are revolving lines of credit, which means that as you pay off your balance, your credit becomes available for you to use again. Most lines of credit are revolving; the exceptions tend to be lines of credit extended for specific purchases, in which case once you use the credit, it’s gone for good.

Credit cards aren’t the only lines of credit out there, however. Lender-issued lines of credit may be slightly less convenient for making retail purchases, but have far better interest rates for those times when you need to carry a balance from month-to-month. This makes a line of credit one of the most versatile ways to fund your business, acting a bit like an insurance policy you can draw on when you need to.

Unsecured Vs. Secured Business Lines Of Credit

So what does that “unsecured” part of the phrase mean? Essentially the same thing it does with any other type of loan.

An unsecured line of credit does not require you to put up collateral as a condition of securing it. This means the lender can’t immediately seize a particular asset should you default on your line of credit. By comparison, a secured line of credit might require you to make a cash deposit or put up an asset as collateral.

Generally speaking, unsecured financial products have higher rates of interest to make up for the increased amount of risk the lender is taking on. On the plus side, you don’t have to worry about coming up with collateral.

Note that “unsecured” does not mean the lender can’t come after you if you default. Many lenders will require you to sign blanket liens, for example.

Top Unsecured Business Lines Of Credit

The first step toward getting an unsecured business line of credit is finding a lender who offers one. If you have a good relationship with your local bank or credit union, it’s worth inquiring about what they offer and their terms.

If those lines of credit are unavailable or out of reach, you still have options available to you. Many online lenders offer unsecured lines of credit. Here are a few suggestions.

OnDeck

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OnDeck offers up to $100,000 credit limits on unsecured lines of credit to customers with a credit rating above 600 who have been in business at least a year and have over $100,000 in gross annual revenue. It’s a good fit for profitable companies that don’t have stellar credit.

There is, however, a $20/month fee for keeping your line of credit open, but OnDeck will waive it for 6 months if you draw at least $5,000 from it during the first five days after opening the account. There is no draw fee.

BlueVine

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If you’re looking for a line of credit with a higher credit limit, you may want to consider BlueVine. BlueVine offers unsecured lines of credit in two forms, one with a six-month interval, the other with a 12-month. The 12-month version has higher rates than the six-month.

Rather than charge an administrative fee, BlueVine charges 1.2 – 2.5 percent per draw. You can pay your balance off at any time during your term, but you will be charged interest at a rate of 0.3 – 1.5 percent per week for six-month lines of credit, or 1.5 – 6.5 percent per week for the 12-month.

Kabbage

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If you’re having a hard time getting your credit up over the 600 mark, you can still get an unsecured line of credit. One such option is through Kabbage, which offers a credit line of up to $250,000 to businesses with at least $50,000 in annual revenue.

Like BlueVine, Kabbage offers lines lasting six-months or 12-months. There’s no draw fee, however. The interest rate system is a little confusing, so be sure to check out their loan calculator to get a sense of what you’ll be charged, and at what month of your term (yes, really).

Fundbox

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Another way to make an end-run around a bad credit rating is through Fundbox. They offer lines of credit to businesses with annual revenues of $50,000 or more who have had an active account with Fundbox-supported accounting software (Quickbooks, for example).

Funbox charges by the amount drawn, starting at 4.66%. You’ll then make weekly, automated payments to pay it off.

Fundation

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If you’re looking for better interest rates, have decent credit, at least $100,000 in annual revenue, and three or more employees, you may qualify for an unsecured line of credit from Fundation.

At 18-month term lengths, Fundation’s lines of credit run a bit longer than the other options we’ve listed. Just be aware that there’s a $500 closing fee and a 2% draw fee. Payments are made monthly.

Top Unsecured Business Credit Cards

Remember, most credit cards are a type of unsecured line of credit. In comparison to the offerings above, a business credit card shines when it’s used to make purchases you can pay offer within the interest-free grace period. Even better, business credit cards offer reward programs you can take advantage of to actually save money.

Here are a couple of options:

Chase Ink Business Cash

Chase Ink Business Cash



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Annual Fee:


$0

 

Purchase APR:


15.49% – 21.49%, Variable

With no annual fee and a 5 percent top tier return on qualified purchases, Chase Ink Business Cash offers a lot of benefits with little risk. The card shines particularly brightly if you use it to buy office supplies or telecom services.

The only real downside is that the card caps the upper and middle tier rewards at $25,000, so if you’re spending more than that on office supplies or telecom purchases per year, you’ll only get 1 percent back after you’ve hit the cap.

Amex Blue Business Plus

Blue Business Plus Credit Card from American Express



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Annual Fee:


$0

 

Purchase APR:


13.49% – 21.49%, Variable

If your purchasing needs don’t fall neatly into any one reward category, you may want to consider American Express Blue Business Plus. You’ll get 2 percent back on all purchases for the first $50,000 you put on your card per year. After that, you’ll get a 1 percent return.

There’s no annual fee, so you won’t have to do any fancy math to figure out whether or not you’re saving money by having the card in your wallet.

Final Thoughts

Unsecured lines of credit can be extremely useful tools for financing your business, and they come in enough variations that you can probably find one that fits your specific needs. Remember to keep their variable fee structures in mind, though, so you know when you’re paying and for what.

Not sure what unsecured line of credit you might qualify for? You can check your credit before the lender does. Does an unsecured line of credit sound like more trouble than its worth? Unsecured business loans might be what you need.

The post Top Unsecured Lines Of Credit For Business appeared first on Merchant Maverick.

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Arizona Small Business Loans

Arizona is one of the fastest growing states in the nation; its warm, arid climate is a big attraction for people suffering from winter fatigue. That swelling population comes with some distinct advantages for entrepreneurs looking to start a business in the Grand Canyon State.

Of course, opening a business anywhere comes with challenges, many of which require money to circumvent. When that happens, you’ll want to know where you can turn to for a cash infusion.

We’ll take a look at some of the types of lending available to you in Arizona, as well as some specific lenders you may want to consider.

The Best Online Business Lenders For Arizona Businesses

If a local lender doesn’t immediately come to mind, you may want to consider an online lender. Most online lenders are willing and able to lend to Arizona-based businesses.

What are the advantages of working with an online lender? Generally speaking, online lenders are faster, have simpler application processes, and more flexible lending standards than traditional lenders. The tradeoff, of course, is they also tend to have higher rates and more concentrated repayment term lengths. That said, the best online lenders offer transparent terms and excellent customer service.

Arizona does have a maximum legal interest rate for loans, but these are easily circumvented with written contracts, so don’t necessarily count on state regulation to keep your rate under control. Note that regulations governing loans usually only apply specifically to loans and not to loan-like products like merchant cash advances.

Since there are tons of online lenders to sift through, here are some of our recommendations to get you started:

OnDeck

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One of the oldest and most mature online lenders, OnDeck offers short-term loans and lines of credit to businesses. They don’t necessarily have the lowest rates in the business, but their product lineup is versatile and transparent, so you should have few surprises.

BlueVine

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BlueVine is an interesting option for businesses that need a line of credit or who have unpaid invoices that they’d like to cash in a little early. Invoice factoring is not for everyone, but it is a way to infuse your business with cash without going into debt.

LoanBuilder

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PayPal’s LoanBuilder service is one of the faster and more transparent digital lenders, allowing you to tweak the terms of your loan somewhat to fit your needs. Their rates are also pretty decent, but as short-term loans, you’ll have to pay them back fairly quickly.

Fundbox

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Businesses with credit issues can have a hard time finding funding, but lenders like Fundbox make it a little bit easier. Like BlueVine, they offer lines of credit and invoice factoring. They also offer a service similar to invoice factoring called Fundbox Pay, which allows sellers to receive money for their services right away.

While Fundbox doesn’t have any hard credit requirements, they do want to see that your business does at least $50K/year in revenue.

Fundera

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An alternative approach to finding an online lender is to use an aggregating service like Fundera. Fundera doesn’t originate their own loans. Instead, when you apply to them, they’ll attempt to pair you with one of their lending partners. The advantage for you is that you’ll effectively be applying to multiple lenders at once with a single application.

Arizona Banks & Credit Unions

As convenient as online lenders can be for small businesses, that’s usually not where you’ll find the best interest rates or terms. Traditional banks aren’t obsolete, they’re just a bit trickier to qualify for post-2008, especially if you don’t have stellar credit.

Typically, the easiest way to get a bank loan is to have a pre-existing relationship with the bank you plan to apply to. Having the requisite accounts in place, as well as a convenient, in-house record of your transactions, can smooth out some of the bumps you might encounter in the application process.

If you have a good relationship with your local bank or credit union, be sure to inquire about their business products. National banks with branches in Arizona include:

Chase Bank

America’s biggest bank has branches scattered through Arizona’s major population centers. Despite their size and market share, they’re still pretty traditional when it comes to business loans, so you’ll have to apply in person.

If you can meet their requirements and don’t mind dealing with an enormous lender, Chase offers some of the best business loan rates out there.

Borrower requirements:
• Must have excellent credit (high 600s)
• Must have access to a Chase Bank branch
Read our Chase Bank review

Bank Of America

Another bank with a big presence in the Phoenix-Scottsdale area, Bank of America has very stringent lending standards. They do offer a more modernized application process than many of their competitors, however.

Line of credit borrower requirements:
• Must have been in business at least 2 years.
• Must have a personal credit score of 670 or above.
• Must have revenue > $200,000 for unsecured products, or greater than $250,00 for secured products.
Read our Bank of America review

 

US Bank

US Bank is one of the smaller of the big national banks, with a reputation for being a bit more personable and flexible. You’ll find them mainly around Phoenix and Tuscon.

Borrower requirements:
• Must be located in a state served by U.S. Bank
• Must have been in business for two years
Read our U.S. Bank review

 

Credit Unions

If you’re looking for the absolute best rates on loans, it’s hard to beat credit unions. As non-profit entities, credit unions can, at least in theory, provide lower rates than similar for-profit entities. On the other hand, be aware that even the biggest credit unions are nowhere near the size of even most mid-sized banks, so they can’t wield the advantages that come with scale.

Credit unions offering business loans are uncommon, but many offer personal loans that can be used for smaller business expenses.

Some of the more accessible credit unions in Arizona include:

  • Desert Financial Credit Union 
  • OneAZ Credit Union
  • Arizona Federal Credit Union
  • Vantage West Credit Union
  • TruWest Credit Union

Small Business Grants In Arizona

startup grants

Grants represent the holy grail of business financing: free money! Of course, as you can imagine, you won’t be the only one seeking it. Competition for grants is fierce and time-consuming; expect to make grant-seeking a part-time job if you choose to seek funding this way.

Grants tend to be targeted — to a specific industry, to a specific problem that needs to be solved, or to a specific demographic. They can be public or private in origin. Find a grant to apply for that fits the profile of your business and/or you as a business owner.

For some general advice on where to seek them, check out our grant feature.

Some Arizona-specific options you may want to consider include:

Arizona Step Grants

The AZSTEP program combines funds from the federal Small Business Administration with those of the Arizona Commerce Authority. These grants are designed to help small businesses enter the export market and increase their international sales.

Arizona Innovation Challenge

Held twice annually, the Arizona Innovation Challenge is a competition awarding applicants up to $150,000, with 10 awardees named each cycle. The grant is designed to help tech companies commercialize their products. An interesting note: you don’t actually have to live in Arizona to apply, you just have to be willing to relocate to Arizona within a 12-month timeframe.

Arizona Job Training Grants

Arizona’s Job Training Program can provide employers creating new jobs a grant that reimburses up to 75 percent of their eligible training expenses. Worth looking into if you’re expanding.

Resources For Startups In Arizona

Starting a business can be an anxiety-producing experience if you don’t have a network ready to support and advise you. Some organizations and programs that might be able to help you include:

  • Arizona Commerce Authority: A public-private economic development organization oriented around expanding Arizona businesses and recruiting new ones from out-of-state.
  • Arizona Small Business Association: A private organization that offering information and resources to the Arizona business community.
  • Small Business Administration: Though technically a federal agency, the SBA publishes state-specific information such as the Arizona edition of their Small Business Resource Guide.

What To Consider When Choosing A Lender

Even if your lender search feels desperate, remember that you still are their client, not the other way around. And that means they need to meet your requirements as well.

Need some help narrowing down lenders? Here are some factors to consider:

  • Your Industry: Some lenders specialize in lending to specific industry. Others can’t or won’t lend to certain industries. If they can’t write you a loan, cross them off your list.
  • Borrowing Amount: If you need $5,000, you’ll be looking at different lenders than if you need $5 million. Choose the right tool for the job.
  • Rates & Fees: How much is it going to cost you? Are the lender’s rates in line with the industry standard? Do they tell you what additional fees they charge, or do they hide them?
  • Time To Funding: Do you need the money right away or next quarter? Choose a lender that can work with your timetable.
  • Term Lengths: You’ll want to know how quickly you have to pay the money you’re borrowing back. Make sure you can afford the loan over the long-term.
  • The Type Of Expense Being Financed: Some financial products are limited in what they can be used for. Do you need a lump sum of cash? Or do you need a line of credit that you can draw upon periodically?
  • Collateral: Secured loans and lines of credit require some form of collateral, usually in the form of an asset, real estate, or cash deposit. If you don’t have collateral to put it, you’ll want to look at unsecured loans.

Final Thoughts

Companies seeking financing in Arizona have a wealth of options so long as they know where to look. And remember that just as important is finding a funding source that fits your needs and strategy.

Didn’t find what you were looking for? Want to see more options? We can help you compare lenders and credit cards.

Just starting out? Check out our resources for startups.

Need more specialized information? Check out our small business loan recommendations for veterans, women, minorities, or individuals with bad credit.

What’s Next
    • Learn what you can write off as small business tax deductions
    • Business loan options that don’t require a credit check
    • A guide to consolidating business debt

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The Best Business Loan And Financing Resources For Indiana Small Businesses

In past years, Indiana’s economy has mainly centered around steel production and manufacturing. However, since the 1990s, the state’s economy has become more diverse, expanding into sectors including banking, education, financial services, and information technology. Combined with a growing population — particularly in the Central Indiana region — this has opened up new opportunities for entrepreneurship.

In Indiana and across the nation, more people are leaving their 9-to-5s and setting out on their own entrepreneurial path. Maybe you’ve already taken this step, or perhaps you’re just waiting to take the leap. No matter where you are in your journey, though, one of the most important resources for a small business is capital. In order to operate a successful small business, you have to have access to capital. But a big question plaguing many small business owners and aspiring entrepreneurs is where to find this capital.

If you’re a small business owner in Indiana, this post is for you. In this post, we’ll review small business loans that Indiana entrepreneurs just like you can use for funding startups, paying operational costs, or growing their businesses. Read on to learn more about the financing opportunities and resources available to you.

Online Business Lenders For Indiana Businesses

As a small business owner, your plate is already loaded down with daily tasks. Managing your business, ordering inventory, hiring and training employees…the list goes on. When you’re in need of capital, finding the time to gather documentation and head over to your local bank may seem impossible. Fortunately, online business lenders have made it easier than ever to get the capital you need for your business.

With an online lender, you can apply for small business financing from your home or office on your computer or smartphone. You can submit documentation, communicate with the lender, and even sign your loan documents without ever stepping foot into a bank or financial institution.

Depending on the financial product you select and the lender you work with, borrower requirements may also be far less stringent. This means that startups, borrowers with personal credit challenges, or businesses with no credit history have options that wouldn’t be available through traditional lenders.

In some cases, you may even be able to complete the entire process from application to funding in as little as 24 hours — a great option for businesses that need cash immediately.

There are thousands of online lenders to choose from, but start your search with the following lenders, which provide financial solutions to small businesses in Indiana.

Fundera

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Unsure of which financial solution is right for your business? Fundera helps you find the best options for your business. With Fundera, you’ll be able to compare lender offers with just one application.

To get started, all you have to do is fill out a quick application. Submitting your application has no impact on your credit score. Once your application has been received, you’ll work one-on-one with a financial specialist to evaluate the financial needs of your business and review lender offers. Your financial specialist will help you select the product that’s the best fit for your business. Best of all, this service is absolutely free.

There is a wide array of financial products available to you through Fundera. This includes:

  • Small Business Administration (SBA) Loans:S $5,000 to $5 million
  • Lines Of Credit: $10,000 to $1 million+
  • Term Loans: $25,000 to $500,000
  • Startup Loans: Up to $150,000
  • Equipment Financing: Up to 100% of equipment value
  • Short-Term Loans: $2,500 to $250,000
  • Invoice Financing: Up to 100% of invoice value
  • Merchant Cash Advances: $2,500 to $250,000
  • Personal Loans For Business: Up to $35,000

Borrower requirements, rates, and terms vary based on the products you qualify to receive. Options such as short-term loans and merchant cash advances are easier to qualify for, but these come with less favorable rates and terms than SBA loans, which are more difficult to receive.

The good news is that your financial specialist will work with you to review the options you qualify for and help you choose the product that’s best for you.

SmartBiz

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Small Business Administration (SBA) loans are extremely popular with small business owners. This is because you receive low rates and very favorable terms, similar to bank loans. However, because SBA loans are backed by the government, lenders feel more secure in giving them to small business owners. Even if you’ve been turned down for a low-cost bank or credit union loan, you may still qualify for an SBA loan.

One of the drawbacks of SBA loans is the application and approval process. The process can seem overwhelming, especially if you’ve never applied for a loan before. Receiving an SBA loan can also take weeks. In some cases, getting the funds in your bank account may even take months.

Fortunately, there is a solution. SmartBiz simplifies and expedites the SBA loan process. You can prequalify for your loan in as little as 5 minutes. You may also receive your funds in just 7 days.

Through SmartBiz, you can qualify for an SBA working capital and debt refinancing loan. Funds can be used to refinance existing debt, hire employees, purchase equipment or inventory, or expand your business. These loans are available in amounts from $30,000 to $350,000. Interest rates are 8.25% to 9.25% with repayment terms up to 10 years.

To receive this loan, you must meet the following requirements:

  • At least 2 years in business
  • U.S. citizen or legal permanent resident
  • Personal credit score of 640 or above
  • Sufficient cash flow
  • No bankruptcies or foreclosures within the last 3 years
  • No outstanding tax liens
  • No past defaults on government-backed loans

If you’re looking to fund a major expansion, consider applying for an SBA 7(a) commercial real estate loan through SmartBiz. These loans provide funding from $500,000 to $5 million. Interest rates are 7% to 8.25% with repayment terms up to 25 years.

Fund from these loans can be used to refinance your commercial real estate mortgage or purchase commercial real estate. Funds can’t be used for new construction or for investment properties.

Borrower requirements for the SBA 7(a) commercial real estate loan are as follows:

  • At least 3 years in business
  • At least 51% of the property must be owner-occupied
  • U.S. citizen or legal resident
  • Personal credit score of 675 or above
  • Property must have a purchase price of $500,000 or more
  • No bankruptcies or foreclosures within the last 3 years
  • No outstanding tax liens
  • No past defaults on government-backed loans

LoanBuilder

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It’s your loan, so why does the lender get control of setting the rates and terms? Shouldn’t you have control? With LoanBuilder, you can “build” your own loan, creating a financial solution that’s best for your business.

You can apply for $5,000 to $500,000 through LoanBuilder. After filling out a quick questionnaire, you’ll be presented with a financing offer. You can adjust the amount of your loan and the duration to get the most affordable option for your business. Once you’ve customized your loan, you’ll finish the application and submit any required documentation. If approved, you could receive your funds in as little as 24 hours.

Prequalifying for a loan offer has no impact on your credit score. However, personal credit and public records will be assessed if you decide to proceed with a loan offer.

LoanBuilder loans have repayment terms of 13 to 52 weeks. Weekly payments are made toward your principal balance plus the fees charges by the lender. LoanBuilder charges a single fixed fee for its loans. Fees start at just 2.9% of the loan amount. LoanBuilder loans can be used for any business purpose.

To qualify for funding through LoanBuilder, you must have:

  • A time in business of at least 9 months
  • At least $42,000 in annual revenue
  • A personal credit score of 550 or above
  • No active bankruptcies

Fundation

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Whether you need a specific amount of money or a more flexible financing option, you can find both with Fundation. Through Fundation, you can apply to receive a term loan or line of credit to fund your business expenses.

Fundation offers term loans up to $500,000 for use on equipment, improvements, or business expansion. Loan terms are up to 4 years with repayments made twice per month. The APR for term loans starts at 7.99%.

If you need cash for working capital or short-term cash flow needs, consider Fundation’s lines of credit. You may qualify for as much as $150,000 with repayment terms up to 18 months. Your balance is repaid once per month. APRs start at 7.99%.

To qualify for Fundation’s financial products, you must have:

  • A time in business of at least 12 months
  • At least $100,000 in annual revenue
  • Personal credit score of 660 or above
  • At least 3 full-time employees

BlueVine

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If you need a line of credit to cover emergencies, operational costs, or other business expenses, you may qualify for a line of credit through BlueVine. This online lender provides lines of credit up to $250,000.

With a BlueVine line of credit, you can receive funding in just minutes. You’ll only pay for what you borrow, and you’ll have the option to repay the lender through monthly or weekly payments over 6 to 12 months. Rates start at 4.8%.

To qualify, you must meet these requirements:

  • At least 6 months in business
  • At least $100,000 in annual revenue
  • Personal credit score of 600 or above

If unpaid invoices are causing cash flow issues in your business, BlueVine also offers an invoice factoring service. You can receive up to $5 million for your unpaid invoices with rates starting at just 0.25% per week. BlueVine provides up to 90% of your invoice amount upfront. The remaining amount — minus fees ––will be given to you once the invoice is paid.

To qualify for invoice factoring, you must own a B2B business and meet these additional minimum requirements:

  • At least 3 months in business
  • At least $100,000 in annual revenue
  • Personal credit score of 530 or above

Amex Business Loans

American Express OptBlue

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If you’re an American Express cardholder, you could qualify for a low-interest, fixed-rate business loan of $3,500 to $50,000. Your loan can be used for any business purpose, and you can receive funding in as little as 3 business days.

Your loan is repaid over terms of 12, 24, or 36 months. Interest rates range from 6.98% to 19.97%.

To qualify for American Express Business Loans, you must be a pre-approved Business Card Member. Additional minimum requirements are:

  • At least 18 years old
  • U.S. citizen or permanent resident
  • Be in good standing with American Express

Funds can’t be used for personal purposes. You also can’t use your Business Loan proceeds to pay off debts to American Express.

Amex Merchant Financing

American Express OptBlue

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Business loans aren’t the only type of financing offered through American Express. If your small business accepts American Express cards, you may qualify for a different financial solution: American Express Merchant Financing.

You could receive a business loan of $5,000 to $2 million. Your loan comes with a single fixed fee of 1.75% to 20% of the borrowing amount. If you repay your loan early, you may even receive a rebate of up to 25% of your fee.

Repayment terms are 6, 12, or 24 months. You can have a fixed amount debited from your business bank account each day. If you’d rather have a more flexible option, you can choose to have a percentage of your daily receivables deducted instead. You can use your receivables from American Express or from all credit and debit transactions if you go this route.

To qualify, you must meet these minimum requirements:

  • At least $12,000 in annual credit and debit receivables
  • At least $50,000 in annual business revenue
  • Time in business of at least 24 months
  • Must accept American Express

Prosper

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If time in business requirements are holding you back from getting the capital your business needs, consider applying for a personal loan. In most cases, you can use the funds from a personal loan for business purposes. This eliminates time in business, annual revenue, and business credit history requirements.

While you can certainly apply for a personal loan through your bank, online lenders make it quicker and easier than ever to access funding. One online option is Prosper, which has loaned $14 billion to nearly 900,000 borrowers.

With a Prosper loan, you’ll have fixed 3- or 5-year repayment terms. Personal loan APRs range from 6.95% to 35.99%. Loans are available in amounts from $2,000 to $40,000.

Borrowers must meet the following minimum requirements:

  • Debt-to-income ratio below 50%
  • A source of income
  • No bankruptcies within the last 12 months
  • Less than 5 credit bureau inquiries within the last 6 months
  • At least 3 open trade accounts

Banks, Credit Unions, & Nonprofit Lenders In Indiana

Of course, online business lenders aren’t your only option. You can get the financing you need from a bank, credit union, or nonprofit lender. Find out the options available through your own financial institution, or check out one of the following lenders in the state of Indiana.

1st Source Bank

1st Source Bank was founded in 1863 in South Bend. Since its founding, it has won multiple local awards and has received recognition from Forbes, BauerFinancial, and Bank Director Magazine. This financial institution now operates 80 banking centers located across 18 counties.

Through 1st Source Bank, you can apply for a variety of financing options including:

  • Commercial Mortgage Loans: Terms up to 15 years
  • Term Loans: Terms up to 10 years
  • Business Acquisition Loans: Terms up to 10 years
  • SBA Loans
  • Lines Of Credit
  • Leases
  • Equipment Financing
  • Farm Loans
  • Business Specialty Financing

You can also sign up for business checking accounts, business and commercial insurance, and retirement plan services. Visit your local branch for more information.

Indiana Members Credit Union

Indiana Members Credit Union has 26 locations to serve residents in Indiana. This member-owned financial institution was first established in 1956 and has since grown to serve over 125,000 members throughout Central Indiana.

IMCU offers business checking, savings, CDs, and health savings accounts. You can also apply for financing, including:

  • Commercial Real Estate Loans
  • Lines Of Credit
  • Equipment & Inventory Financing
  • Business Credit Cards
  • Construction Loans

All borrowers must be IMCU members. To join the credit union, you must meet one of the following requirements:

  • Live or work in an eligible Central Indiana county
  • Work for an affiliated employer
  • Have a family member that is an IMCU member

Downloadable loan applications are available on the IMCU website. You can complete the loan application and send it with all required documentation to the IMCU Business Services & Lending Department, or you can drop your packet off at your local branch.

Indiana Statewide Certified Development Corporation

The Indiana Statewide Certified Development Corporation has assisted thousands of small businesses in the state in receiving funding through the Small Business Administration’s 504 loan program.

Under this program, you can qualify for financing for fixed asset purchases. This includes commercial real estate, machinery, and equipment. The Indiana Statewide CDC provides up to 40% of your project costs, while up to 50% is provided through a traditional lender. Then, you’re responsible for the remaining 10% of project costs.

SBA 504 loans come with fixed rates over terms of 20 years for real estate or 10 years for equipment.

Small Business Grants In Indiana

startup grants

If you don’t want to take on debt but need financing for your business, consider exploring small business grants. Small business grants provide the capital you need for your business without the requirement of repaying the funds. Yes, that means no monthly payments, no interest rates or fees, and no debt for your business.

However, scoring a small business grant isn’t as easy as filling out a quick online application, running your credit score, and getting financing. You’ll face a lot of competition to receive a small business grant. The application and approval process can often be quite extensive. You may even have to meet very specific requirements, such as being a veteran-owned business or operating within a certain industry.

In other words, there’s no guarantee that you will receive or even qualify for a small business grant. However, there are a few opportunities available to small business owners in Indiana that may be a fit for your business. Start with these options.

Elevate Ventures High Potential Startup Grant

Elevate Ventures is one of Indiana’s largest venture capital firms. This organization provides multiple financial opportunities for businesses, including High Potential Startup Grants. High-potential startups in communities throughout Indiana may qualify to receive awards of $5,000 to $25,000. Elevate Ventures also offers Small Business Innovation Research and Small Business Technology Transfer grant matches up to $150,000. To learn more about requirements and the funding application process, submit an inquiry through the Elevate Ventures website.

GoGlobal Grant Export Acceleration Program

The GoGlobal Grant Export Acceleration Program is a collaboration between the Indy Chamber and JPMorgan Chase. Through this program, matching grant funding of up to $5,000 is available to support export activities of qualifying businesses. Funds can be used for trade show attendance and conference costs, export plan development, and other company expenses related to export activities.

To qualify, you must:

  • Be in business for at least 2 years
  • Have primary operations based in the Indianapolis metro area
  • Participate in a one-on-one business coaching session

Priority is given to businesses with fewer than 250 employees and less than $20 million in annual revenue. You can learn more and apply for the grant by sending an email inquiry through the Indy Chamber website.

The Startup Ladies

Women-owned businesses can join The Startup Ladies for a small fee and have access to resources for starting and growing their businesses. Through The Startup Ladies, female entrepreneurs can attend events, access educational materials, and connect with potential clients and investors.

The Startup Ladies also offers funding opportunities. Members can apply for funding through The Startup Ladies Fund. The organization can also help members identify federal SBIR/STTR grant opportunities that are best for new businesses.

Loans & Resources For Startups In Indiana

Startups don’t always have access to the same financial opportunities as established businesses. Startups are seen as “risky” by lenders simply because they do not have a proven track record of success. A lack of revenue, business credit score, and history all spell big risk to lenders.

However, this doesn’t mean that there’s a lack of resources for startups. We’ve already reviewed a few lending options available to startups, such as personal loans for business. Now, let’s explore other resources available to startup businesses in Indiana, from mentorships to workshops and educational materials. Best of all, these resources are available to you for free or for a very low fee.

Indiana Small Business Development Center

The Indiana Small Business Development Center offers small business advising and services at no cost to small business owners in Indiana. There are 10 regional offices located throughout the state.

This organization can advise you on a variety of business topics including:

  • Market Research
  • Business Planning
  • Strategy
  • Exporting
  • Loan Assistance

The Indiana Small Business Development Center also offers workshops and events for small business owners for no cost or a small fee.

SCORE

If you need a business mentor, look no further than SCORE. Through one of the organization’s 300 chapters throughout the nation, you can connect with a business mentor at no cost. There are multiple chapters located in the state of Indiana.

SCORE’s business mentors can answer your questions and offer guidance in starting or growing your business. You can connect with your mentor through email, video chat, or face-to-face.

SCORE also offers educational opportunities and other free services to startups and established small businesses. This includes live and recorded webinars, online courses, and workshops.

Launch Indiana

Launch Indiana provides resources to help increase entrepreneurialism throughout the state. The organization’s goal is to foster innovation and growth for entrepreneurs and startup businesses.

Through Launch Indiana, you can take advantage of mentorships with coaches and experienced business owners. Other resources include videos, case studies, events, and other business tips and advice to help you grow your business and network with other entrepreneurs and businesses. Launch Indiana is also working to build co-working spaces and Internet of Things labs throughout the state to open up even more opportunities for business owners in Indiana.

What To Consider When Choosing A Lender

With thousands of lenders to wade through, which option is best for your business? Unfortunately, every business has different financial needs, so there’s no one-size-fits-all option when choosing a lender. The good news is that with a few factors in mind, you can more easily cut down your list of options to choose the lender that’s right for your business.

Type Of Financing

What type of financing do you need? Let’s say you don’t need money right now but would like an option for emergencies or expenses that arise in the future. In this case, you’d apply for a line of credit or business credit card. Seek out lenders that offer this type of financing. If you’re unsure of which type of financing is best for you, consider working with a lender that offers multiple financing options. These lenders can work with you to help find the best, most affordable solution for your business.

Borrowing Amount

How much do you need to borrow? If you need $250,000, not all lenders offer this amount. Others have much lower borrowing limits. These lenders can be crossed off your list.

Affordability

When you receive small business financing, you don’t just pay back the amount that you borrow. Instead, you’ll have to pay interest on borrowed funds and/or additional fees required by the lender. Make sure that you understand the cost of working with each lender on your list, and make sure that the rates, fees, and terms work for your business. Learn more about how to determine if your business can afford a small business loan.

Borrower Requirements

Do you meet all borrower requirements? Pull your free credit score online before you apply with any lender. Check your credit history to ensure there’s nothing that could prevent you from qualifying with a lender, such as a recent bankruptcy or a high number of credit inquiries. Run your financials to make sure you meet annual revenue requirements. If you don’t meet all requirements of one lender, move on to other options.

Final Thoughts

As a small business owner in Indiana, there are financial options open to you, whether you’re just getting started or you’re ready to expand your existing business. Unable to find an option that’s best for you? No problem. Check out our other resources to find the small business loan that’s best for your situation.

  • Best Small Business Loans For Veterans
  • Minority Business Loans
  • The Best Small Business Loans For Women
  • The 7 Best Small Business Loans For Bad Credit

The post The Best Business Loan And Financing Resources For Indiana Small Businesses appeared first on Merchant Maverick.

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