Revenue-Based Financing: What It Is & When It’s The Right Choice For Your Business

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How To Get A Loan For Your CBD Business (Without Getting Scammed In The Process)

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What Is Debt Crowdfunding & When Is It The Right Choice For My Small Business?

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How Do Small Business Loans Work & What Is The Business Loan Process Like?

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Everything You Need To Know About Merchant Services

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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

startup grants

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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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

The post Arizona Small Business Loans appeared first on Merchant Maverick.

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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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The Best Business Loan And Financing Resources For Colorado Small Businesses

Colorado is one of the fastest-growing states in the nation. Not only is its population burgeoning, but its economy is flourishing and only expected to grow into the future. Professional and business services, the tech industry, and agriculture are among the sectors that will continue to bring new jobs and contribute to the state’s economy.

It isn’t just big business that’s helping the economy grow, either. Small businesses play an extremely important role throughout the state. Unfortunately, these smaller businesses — businesses just like yours — may struggle to find the financing and resources they need to be successful.

The good news is that there are plenty of financing options available to small business owners. The key is knowing where to find them. Instead of spending hours wading through lenders, scratching your head over interest rates and terms, or struggling to get the capital you need, keep reading this post — we’ve taken the guesswork out of small business financing. From online and traditional lenders to grants and more, read on to learn about the resources available to Coloradans.

Online Business Lenders For Colorado Businesses

You probably already use the internet for business — from communicating with clients and suppliers via email to placing orders for inventory and paying utility bills. Why not use it to find financing for your business?

Online lenders make it more convenient than ever to apply for small business loans and financing. You can fill out your application, submit your documentation, and even receive funds in your bank account — all without ever leaving your home or office.

It’s possible to get the financing you need in as little as 24 hours by working with an online lender. Even if you’ve had trouble qualifying for financing in the past, there are online options available to you. Start by checking out these recommended lenders.

Lendio

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Lendio makes shopping around for financing easier than ever. A single application connects you with over 75 lending partners, allowing you to compare rates and find the most affordable financing options in just minutes. Applying with Lendio is free, there’s no obligation, and your credit score isn’t affected by checking your offers.

No matter what type of small business financing you need, you can connect with the right lender through Lendio. Financial products available through Lendio include:

  • Small Business Administration (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
  • Commercial Mortgages: $250,000 to $5 million
  • Accounts Receivable Financing: Up to 80% of receivables
  • Startup Loans: $500 to $750,000
  • Business Credit Cards: $1,000 to $500,000
  • Merchant Cash Advances: $5,000 to $200,000

Rates, terms, and borrower requirements vary. You may receive your funds in as little as 24 hours based on the product you select.

SmartBiz

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If you don’t qualify for a low-interest bank loan, there may be an alternative: Small Business Administration loans.
The SBA guarantees a portion of the loans provided through its various loan programs, so lenders feel more confident in financing small businesses. Meanwhile, you’ll get the benefit of a low-interest, long-term loan, even if you’ve been turned down by banks and traditional lenders in the past.

Navigating the SBA application process can be a challenge, but SmartBiz has simplified it through its online marketplace. You can prequalify in minutes, receive funds quickly, and easily move through the SBA loan process by working with SmartBiz.

Through SmartBiz, you can apply for a loan used for working capital or to refinance debt. Loans are available for $30,000 to $350,000 with interest rates of 8.25% to 9.25%. Repayment terms are up to 10 years.

Funds for these loans can be used to refinance existing debt, purchase inventory or equipment, launch a marketing campaign, hire new employees, or cover operating expenses. Loan funds can’t be used to pay unpaid taxes.

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

  • At least 2 years in business
  • U.S. citizen or legal permanent resident
  • Personal credit score of 640 or above
  • Cash flow to cover loan payments
  • No bankruptcies or foreclosures within 3 years
  • No defaults on government-backed loans
  • No outstanding tax liens

If you want to purchase, expand, or refinance your commercial property, you can apply for an SBA 7(a) commercial real estate loan. Through SmartBiz, you can apply to receive $500,000 to $5 million with interest rates of 7% to 8.25%. Repayment terms are up to 25 years.

These minimum requirements apply to all borrowers:

  • At least 51% of the property is occupied & used by your business
  • Time in business of at least 3 years
  • Personal credit score of 675 or above
  • Cash flow to cover loan payments
  • Purchase price exceeds $500,000
  • U.S. resident or legal permanent resident
  • No bankruptcies or foreclosures within the last 3 years
  • No outstanding tax liens
  • No defaults on government-backed loans

Funds from these loans can’t be used to purchase investment properties or to fund new construction costs.

OnDeck

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OnDeck offers two loan options for small business owners in Colorado: term loans and lines of credit. Let’s start off by looking at the options for OnDeck’s term loans.

With a term loan, you can receive a lump sum in amounts up to $500,000. OnDeck offers short-term loans with terms of 3 to 12 months and simple interest rates starting at 9%. This means that your interest rate is a percentage of your loan amount. If you borrow $20,000 at a simple interest rate of 9%, you’ll pay $1,800 in interest — or a total of $21,800 before any additional fees are applied.

Short-term loans are best for projects with an immediate return, such as seasonal hiring, inventory purchases, or launching a marketing campaign.

OnDeck also offers long-term loans. These loans have terms of 15 to 36 months with annual interest rates starting at 9.99%. Long-term loan funds are best for expanding your business, making large-scale inventory purchases, or buying equipment.

To qualify for a term loan, you must have:

  • Time in business of at least 1 year
  • At least $100,000 in annual revenue
  • Personal credit score of 500 or above

If you want a more flexible form of financing, apply for OnDeck’s line of credit. You can receive up to $100,000 with APRs starting at 13.99%. A line of credit is best for filling revenue gaps or paying unexpected expenses.

You only pay interest on borrowed funds, and payments are made each week through automatic deductions. A $20 monthly maintenance fee is required but will be waived for 6 months if you draw at least $5,000 within 5 days of opening your account. There are no draw fees for using your line of credit.

To qualify for a line of credit, you must meet these requirements:

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

Breakout Capital

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Breakout Capital provides qualified small business owners with up to $250,000 with its small business loans. Daily, weekly, and monthly repayment terms up to 2 years are available. Breakout Capital loans have a fee of 1.25% to 3.5% of the borrowing amount each month.

To qualify for a small business loan, you must have:

  • A time in business of at least 1 year
  • A personal credit score of 600 or above
  • At least $10,000 in monthly revenue

If you need more capital, you may want to consider FactorAdvantage. This service combines invoice factoring and a business loan to provide qualified borrowers with up to $500,000. Fees start at 1.25% of the borrowing amount per month, and repayment terms are available up to 2 years.

If neither of these options seem right for you, Breakout Capital’s lending experts can connect you with other financing options including:

  • SBA 7(a) Loans
  • Equipment Leases
  • Merchant Cash Advances
  • Lines Of Credit

Fundbox

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If you want a fast, flexible line of credit that you can access in just minutes, take a look at what Fundbox has to offer.
You can qualify for a line of credit up to $100,000 when you apply with Fundbox. Repayments are made over a 12- or 24-month period, and payments are automatically withdrawn from your business bank account each week.

Fees for using your Fundbox line of credit start at just 4.66% of the draw amount and are based on the performance of your business. If you don’t use your line of credit, you never pay any fees. As you repay your line of credit, funds are replenished and become available to use again.

Fundbox has a fast and easy application process with minimum borrower requirements. To qualify, you must have:

  • Business checking account
  • At least $50,000 in annual revenue
  • At least 3 months of transactions from your business bank account OR at least 2 months of activity in accounting software

Amex Merchant Financing

American Express OptBlue

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If your small business accepts American Express, you may qualify for a business loan up to $2 million with American Express Merchant Financing.

One of the best things about Amex Merchant Financing is you don’t have to worry about confusing interest rates or fees. Instead, you pay one fixed fee for your loan. Fees are based on the terms you select and range from 1.75% to 20% of the borrowing amount. If you repay your loan early, you could receive a rebate of up to 25% of your fee.

Repayment terms of 6, 12, and 24 months are available. A fixed amount will be automatically deducted from your bank account each business day to repay your loan.

Borrowers must meet the following requirements to qualify:

  • Accept American Express Cards
  • Have at least $12,000 in annual credit & debit receivables
  • Have at least $50,000 in annual business revenue
  • Have a time in business of at least 2 years

Credibly

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Credibly is a lender that doesn’t have a one-size-fits-all solution for small businesses. Instead, this lender offers three products to give small business owners the capital they need: working capital loans, business expansion loans, and merchant cash advances.

A working capital loan is ideal for covering operational expenses and fueling business growth. Under this program, you may qualify for up to $400,000 that can be repaid over terms of 6 to 18 months. Automatic payments are withdrawn from your account daily or weekly.

Instead of a traditional interest rate, these loans come with factor rates that start at 1.15. Learn more about how factor rates affect the cost of your loan.

The requirements for a Credibly working capital loan are:

  • Personal credit score of 500 or above
  • Time in business of at least 6 months
  • At least $15,000 in average monthly bank deposits

If you’re ready to expand your business, consider applying for Credibly’s business expansion loan. You can receive up to $250,000 with terms of 18 or 24 months. Repayments are automatically deducted each week. Interest rates for these loans start at 9.99%.

For Credibly’s business expansion loans, you must have:

  • A personal credit score of 600 or above
  • Time in business of at least 3 years
  • At least $15,000 in average monthly bank deposits
  • At least $3,000 in average daily balances

The final option that may work best for you is a merchant cash advance, or MCA. Credibly purchases a percentage of your future receivables. Daily remittances are made until your loan plus any applicable fees are repaid. The estimated duration of this type of financing is 3 to 18 months.

With this type of financing, you can qualify for up to $400,000. Factor rates start at 1.15.

Requirements for a Credibly MCA are:

  • Personal credit score of 500 or above
  • Time in business of at least 6 months
  • At least $15,000 in average monthly bank deposits

Upstart

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Having trouble finding a low-interest loan option? Consider using your own personal credit score and income to qualify for a personal loan for business. Whether you’re operating a brand new business or you can’t meet the requirements of small business lenders, getting a personal loan could be the hassle-free, affordable option you’re looking for.

Upstart is an online lender that offers personal loans that you can use for your business expenses. You can borrow between $1,000 and $50,000 with APRs starting at 8.09% for the most qualified borrowers. Don’t have perfect credit? It’s no problem. You can still qualify for a loan with APRs up to 35.99%.

One of the unique things about Upstart is that the lender considers more than just your credit score when approving your loan. Upstart looks at overall credit history, area of study, job history, and education to determine if you qualify for a loan.

To qualify for an Upstart personal loan, you must meet the following minimum requirements:

  • A source of income
  • Personal credit score of 620 or above
  • No bankruptcies or public records
  • Less than 6 inquiries within the last 6 months on your credit report
  • A solid debt-to-income ratio

Banks, Credit Unions, & Nonprofit Lenders In Colorado

If you’d rather work with a traditional lender, there’s no shortage of them in Colorado. Work with your own bank or credit union, or consider one of these options for your business financing.

Bank Of Colorado

The Bank of Colorado has branches located all throughout the state, including cities like Akron, Colorado Springs, Fort Collins, and Denver. The Bank of Colorado offers multiple financial products for small business owners. In addition to business checking and savings accounts, you can apply for:

  • Business Credit Cards
  • Business Loans
  • Lines Of Credit
  • Agriculture Loans & Lines Of Credit
  • Equipment Loans
  • Real Estate Loans
  • Livestock Loans

Bank of Colorado also offers merchant card processing, employee benefits, and other small business services. Visit your local branch to apply for Bank of Colorado’s small business banking services.

Ent Credit Union

Ent Credit Union was founded in 1957 and has grown to over 30 branches throughout the state with more than 330,000 members. Service centers can be found in cities including Aurora, Denver, Colorado Springs, and Parker.

You can apply for small business checking, savings, and money market accounts. If you need extra capital for your business, you may also qualify for one of Ent’s financial products including:

  • Business Auto Loans
  • Business Credit Cards
  • Lines Of Credit
  • Commercial Real Estate Loans
  • Business Term Loans
  • Equipment Loans
  • SBA 504 Loans

To apply for any type of financing, you must be an Ent Credit Union member. To qualify for membership, you must meet one of the following requirements:

  • Live, work, attend school, or worship in one of the counties served by Ent
  • Be civilian or military personnel of the Colorado Air National Guard or Colorado Army National Guard
  • Be associated with Buckley Air Force Base
  • Have a family member that is a member of Ent

You can sign up for membership online, by phone, or through a service center.

Colorado Enterprise Fund

Colorado Enterprise Fund is a nonprofit lender that specializes in lending to small businesses that may not qualify for traditional financing. Since 1976, this lender has closed over 2,000 loans for small business owners in Colorado.

There are multiple financing options available through the Colorado Enterprise Fund, including:

  • Dream Big Microloans: Up to $50,000 with terms up to 7 years
  • Step Up Loans: Up to $500,000 with terms up to 10 years
  • Healthy Food Loans: Up to $500,000
  • Valor Loans For Veterans: Up to $500,000 with terms up to 10 years
  • SBA Community Advantage Loans: Up to $250,000 with terms up to 25 years
  • Just In Time Lines Of Credit: Up to $100,000 with terms up to 2 years
  • GAP Loans: Up to $500,000 with terms up to 25 years
  • Commercial Real Estate Loans: Up to $500,000 with terms up to 7 years

Startups and existing businesses may be eligible to receive funding. Colorado Enterprise Fund will evaluate several factors when determining whether to approve an application, including:

  • Personal Credit Score
  • Equity
  • Industry Experience
  • Payment History
  • Cash Flow & Profitability
  • Collateral

The online application and all requirements can be found on the Colorado Enterprise Fund website.

Small Business Grants In Colorado

startup grants

Nothing in life is free … or is it? If you qualify for a small business grant, you could get the financing your business needs without having to repay the funds. No interest rates, no debt, no problem, right?

Unfortunately, many small business owners find that the process of finding, qualifying for, and receiving a small business grant is extremely difficult. Even if you meet the stringent criteria, you’ll have to compete with many other small business owners.

This doesn’t mean that you should just forget about small business grants. If you qualify, you certainly should take the time to apply. However, just understand that you also need to consider other sources of capital for your business.
In the state of Colorado, there are several grant opportunities available to small business owners. Get started with these options.

LEADING EDGE For International Opportunities

Leading Edge for International Opportunities is a grant program administered by the Colorado Office of Economic Development and International Trade. The proceeds from these grants are used for covering the costs of export projects. Minority, veteran, and women-owned businesses are eligible to apply.

Through this program, grant recipients can receive up to $10,000 to pay for costs associated with international business development and marketing projects, including foreign trade show exhibition and conference costs, advertising in overseas industry trade publications, and foreign business-to-business matchmaking services.

To qualify, businesses must meet the following requirements:

  • Employ fewer than 100 employees globally
  • Headquarters in Colorado OR at least 50% of employees based in Colorado
  • Registered with the Colorado Secretary of State
  • At least 51% ownership by minorities, veterans, or women
  • Time in business of at least 1 year

All information and the online application are available through the Colorado Minority Business Office.

Colorado First & Existing Industry Customized Job Training Grant Program

The Colorado First & Existing Industry Customized Job Training Grant Program is open to new or existing Colorado businesses. Through this program, grant funds can be used for training permanent, full-time employees. Businesses can receive up to $1,400 per eligible employee.

There are several requirements a business must meet to receive this grant, including:

  • Contributions of at least 40% to the total costs of grant-funded training
  • Must pay at least $13 per hour in urban counties and at least minimum wage in rural counties
  • Must offer health insurance to employees

To learn more about this grant and to apply, you must contact a CFEI college representative through the Colorado Community College System website.

Colorado Creative Industries Grants

Colorado Creative Industries offers multiple grant opportunities for small businesses and entrepreneurs. One of the most notable grant programs is the Career Advancement Grant. Through this program, you can receive matching funds up to $2,500 to stimulate a commercial creative business.

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

  • A resident of Colorado
  • At least 18 years old
  • Have a creative sector business
  • Received no funding from CCI within 12 months of the application deadline

An online application for this grant and information on additional funding programs is available on the Colorado Creative Industries website.

Loans & Resources For Startups In Colorado

You have your business plan in place, you’re motivated and focused, and you’re ready to launch your new business. There’s just one thing missing from the entrepreneurial equation: capital.

Getting a loan through your bank or even alternative lenders can be a challenge for startup businesses. But don’t let that get you down because there ARE options available to you if you know where to look.

Start your search for funding with these organizations. In addition to funding, you’ll also have access to loads of resources including business training, one-on-one consultations, and educational materials to help you start and operate a successful small business.

Colorado Small Business Development Center Network

If you need business consulting, look no further than the Colorado Small Business Development Center Network. There are more than 80 centers located throughout Colorado that offer free one-on-one consulting on topics including:

  • Marketing
  • Financial Assistance
  • QuickBooks
  • Business Plan Writing
  • Certifications
  • Social Media Strategies

Workshops, scholarships, strategic planning courses, eLearning videos, and special events are also offered through the Colorado SBDC Network. Visit the official website or your local center for more information on the resources available to small business owners.

SCORE

Whether you need help starting your own business or advice for your existing business, check out SCORE to connect with a business mentor. You’ll receive free advice online, over the phone, or at a SCORE office near you.

Mentorships aren’t all that SCORE has to offer. You can also sign up for workshops, classes, and webinars. SCORE also has a large library of business resources to access. All services are available for free or for a low fee.

In Colorado, there are several offices throughout the state in cities including Denver, Colorado Springs, and Pueblo. You can call or visit your local office or go online to request a mentor.

What To Consider When Choosing A Lender

As you can see, there are plenty of small business financing options and resources for Coloradans. However, narrowing down your choice to just one is still a daunting task. Whittle down your choices by considering the following:

Does The Lender’s Products Fit My Needs?

One of the first steps you should take before seeking financing is to determine what product works best for you. If you want capital that’s available when you need it, work with a lender that offers business credit cards or lines of credit. If you need a large amount of capital, find lenders that offer long-term, low-interest loan options. By determining what type of financing works for your business beforehand, you can eliminate lenders that don’t offer the financial products you need.

Do The Rates & Terms Work For Me?

Shop around to compare rates and terms of lenders that are at the top of your list. Would you rather make one monthly payment? Cross off the lenders that require weekly, daily, or bi-weekly payments. Have a good credit score? Avoid lenders that specialize in financing to less creditworthy borrowers, since interest rates will often be much higher.

Always take the full cost of financing into consideration, including additional fees charged by the lender. Then, analyze your other business debts. You should ensure that your business can comfortably afford to take on additional debt before signing on the dotted line.

Will The Funding Be Enough For My Business?

How much capital do you need for your business? Once you’ve determined the amount you’re seeking, you can narrow down your list of lenders. If you need $100,000 to purchase new equipment, a lender with loans that max out at $50,000 won’t cut it. Calculate how much you need to borrow, then select a lender that can meet your financial needs.

Do I Meet The Lender’s Requirements?

Before you apply for financing, check your credit score, understand any negative items on your credit report, and have a grasp of the financials of your business. Most lenders look at factors including personal and business credit scores, personal and business credit history, time in business, and annual revenue. If you fall short with one lender, find a lender with requirements you can meet.

One last thing to note is that if you’re unable to meet the criteria of multiple lenders, it may be time to evaluate if now is the right time for financing. Break down your finances, work to build up your credit score, and explore all financial options before signing on to a high-interest loan with unfavorable terms.

Final Thoughts

Building a business is never easy. However, with the many resources available to Coloradans, you can increase your chances for success whether you’re just getting started or you’re ready to expand your business. Always do your research, consider all options available to you, and take the time to determine what steps to take next to best benefit your business.

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The Best Business Loan And Financing Resources For Ohio Small Businesses

Finding financing and other business resources can be a challenge for any small business. Maybe you don’t know where to look, or maybe there are just too many options and you have no idea where to begin. If you’re a small business owner in Ohio that needs help finding the right resources for your business, you’re in the right place.

In this post, we’ll explore the different financing resources available to your small business. We’ll review our picks for online business lenders that make the loan process faster and easier than ever. We’ll take a look at local banks, credit unions, and nonprofit lenders that offer financing to Ohio businesses. We’ll even explore small business grants that can put free money into your business. Whether you’re just starting a business in Ohio or your established business is ready to grow, there’s an option out there for you. And after reading this post, you’ll know exactly where to find it!

Online Business Lenders For Ohio Businesses

Small business owners are often strapped for time. From managing day-to-day operations to planning an expansion or gearing up for an upcoming busy season, it’s difficult to find enough hours to tackle your daily tasks, much less pile anything else on your plate. You need capital, but you just don’t have the time to sit on a phone with a lender or head into a bank to pitch your business.

Or maybe you have the time to get a loan, but you fall short in another area. Your credit score is low. Your time in business is too short. Your annual revenues aren’t where they need to be to qualify for a bank loan.

Whether it’s time, borrowing requirements, or some other issue that’s keeping you from applying for a small business loan, there’s an alternative: an online business loan.

You probably already use the internet to perform tasks for your business: bookkeeping, communicating with clients and suppliers, or ordering inventory, just to name a few. Why not leverage the internet to find the capital you need to start your business, grow your brand, or overcome a financial hurdle?

With online lenders, you can apply for your loan without ever stepping foot into a bank or office. You can shop your options, learn about requirements, and compare lenders from your computer or smartphone. Some lenders can even give immediate approvals and send over your funds in as little as one business day.

In addition to ease and speed, online lenders are opening up more opportunities than ever for small business owners. Bad credit? No business credit? Low revenues? Startup? No problem — there’s an option out there for you.

Ready to find an online lender? Instead of weeding through thousands of search engine results to find legitimate options, start your search with these lenders.

Lendio

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Lendio makes shopping for the best financial product easier than ever. This loan aggregator has over 75 financial partners that you can reach through one simple application. You can compare multiple lender offers to find the most affordable option for your Ohio small business. From long-term, low-interest Small Business Administration loans to merchant cash advances, Lendio has it all.

Some of the financial products offered to small businesses through Lendio’s network include:

  • SBA Loans: Up to $5 million with terms up to 25 years
  • Term Loans: Up to $2 million with terms up to 5 years
  • Commercial Mortgages: Up to $5 million with terms up to 25 years
  • Startup Loans: Up to $750,000 with terms up to 25 years
  • Lines Of Credit: Up to $150,000 with terms up to 2 years
  • Short-Term Loans: Up to $500,000 with terms up to 3 years
  • Equipment Financing: Up to $5 million with terms up to 5 years
  • Merchant Cash Advances: Up to $200,000 with terms up to 2 years
  • Accounts Receivable Financing: Up to 80% of receivables with terms up to 2 years
  • Business Acquisition Loans: Up to $5 million with terms up to 25 years
  • Business Credit Cards: Up to $500,000

Filling out the application is quick and easy, and there’s no impact to your credit until you accept an offer. Depending on the type of financing you select, you could have the capital you need in as little as 24 hours. Borrower requirements and required documentation vary based on the product selected. Rates and terms vary by lender.

SmartBiz

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If you’ve been in business for some time, you’re probably at least aware of the Small Business Administration. If not, you’re missing out on a very important resource. The SBA is not just an advocate for small businesses but also provides competitive, long-term loan options.

The SBA is not a direct lender. Instead, this organization guarantees small business loans distributed through its programs. Nonprofit organizations, banks, credit unions, and other lenders can feel more secure in taking on the risk of small business lending. Meanwhile, this opens the door for low-cost loan options for small business owners in Ohio, just like you.

Navigating the SBA loan process can be tricky, but smart business owners lean on SmartBiz to do the heavy lifting. SmartBiz simplifies SBA loans, removing the stress of the application process while putting money in your bank account faster than ever.

SmartBiz offers two SBA loan options for you. If you need to refinance high-interest debt or need extra money for working capital, marketing campaigns, inventory, equipment purchases, or operating expenses, you can apply for $30,000 to $350,000. You’ll have up to 10 years to repay your loan, and you’ll receive competitive interest rates of 8.25% to 9.25%.

To qualify, you must meet the requirements below:

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

If you need to purchase commercial real estate or refinance a commercial real estate loan, apply for the SBA 7(a) commercial real estate loan. You can receive between $500,000 to $5 million with repayment terms up to 25 years and interest rates of 7% to 8.25%.

The borrower requirements for SBA 7(a) commercial real estate loans are as follows:

  • Property must be at least 51% owner occupied
  • Purchase price must be more than $500,000
  • Time in business of at least 3 years
  • U.S. citizen or permanent resident
  • Credit score of 675 or above
  • Sufficient cash flow
  • Funds can’t be used to purchase investment properties or fund construction
  • No bankruptcies or foreclosures within the last 3 years
  • No prior defaults on government-backed loans
  • No outstanding tax liens

Credibly

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Credibly is an online lender that offers multiple financing options for small business owners. Credibly can preapprove you for up to $400,000 with final approvals in as little as 24 hours.

One of the financial products offered through Credibly is a working capital loan. You can qualify for up to $400,000 with repayment terms up to 18 months. These loans do not have traditional interest rates. Instead, Credibly’s working capital loans have factor rates that start at 1.15. Repayments on your loan are made daily or weekly.

To qualify for a working capital loan, you must have:

  • Time in business of at least 6 months
  • Personal credit score of 500 or above
  • At least $15,000 in monthly bank deposits

Need longer terms for your loan? Credibly’s business expansion loans have terms of up to 2 years. These loans are available in amounts up to $250,000 with interest rates starting at 9.99%. This loan is repaid through weekly payments.

To qualify for a business expansion loan, you must meet these requirements:

  • At least 3 years in business
  • Personal credit score of 600 or above
  • At least $3,000 in daily balances
  • At least $15,000 in monthly bank deposits

Another option to consider through Credibly is a merchant cash advance. With this financing, you’ll receive up to $400,000. The anticipated duration of Credibly’s MCAs are 3 to 18 months, and repayment is based upon your receivables. Factor rates for MCAs start at 1.15.

To qualify for this type of funding, you must:

  • Have a personal credit score of 500 or above
  • Be in business for at least 6 months
  • Have at least $15,000 in monthly bank deposits

Fundbox

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Wouldn’t it be a relief to have a source of funding available to you on-demand? If an emergency pops up, you’d have the funds to cover it. If you needed extra inventory or money to pay for operating expenses, you wouldn’t have to wait days (or weeks) for loan approval. If your Buckeye business would benefit from this type of funding, a line of credit from Fundbox may be just what you need.

Fundbox offers revolving lines of credit up to $100,000 for qualified businesses. You can make one or multiple draws on your line of credit up to your set limit. As you repay borrowed funds, they become available to draw again. You can select from 12- or 24-week terms, and fees start at just 4.66% of the draw amount. Weekly payments are automatically deducted from your business bank account.

Qualifying is simple, as Fundbox considers your business performance when approving lines of credit. To receive yours, you must have:

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

Prosper

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If you’re a new business with no (or very low) revenue, how are you going to qualify for a small business loan? Unfortunately, there will be many small business financing options unavailable to you if your business is brand new or hasn’t yet opened its doors. If this sounds familiar, you may have to get a little creative with your financing. One of the best options? A personal loan for business.

With a personal loan for business, your personal credit score and income can help you qualify for the funding you need. This is a great way to pay for startup costs or to cover any business expense when you don’t qualify for small business financing.

One lender to consider for personal loans is Prosper. You may qualify for up to $40,000 with APRs of 6.95% to 35.99%. You can select from terms of 3 years or 5 years.

To qualify for a Prosper personal loan, you must meet the following minimum eligibility requirements:

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

Amex Merchant Financing

American Express OptBlue

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If your business accepts American Express, you may qualify for Amex Merchant Financing. You can receive a loan of $5,000 up to $2 million for one fixed fee of 1.75% to 20%. A fixed amount is deducted daily, or you can opt to have a percentage of your daily receivables deducted.

Repayment terms are spread over 6, 12, or 24 months and automatic payments are deducted daily from your account. If you repay your loan early, you could get up to 25% of your fixed fee back, helping you save on the cost of your loan.

To qualify, you must:

  • Accept American Express cards
  • Have at least $50,000 in annual revenue
  • Have at least $12,000 in annual debit and credit receivables
  • Have been in business for at least 2 years

Banks, Credit Unions, & Nonprofit Lenders In Ohio

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Online lenders are convenient, but maybe you prefer working with more traditional lenders. Banks, credit unions, and nonprofit lenders throughout Ohio provide loans and other financial products at competitive rates. You can also sign up for other business services, such as checking and savings accounts, payroll services, or employee benefits.

Huntington Bank

Huntington Bank has branches located in hundreds of cities in Ohio, including Akron, Canton, Cincinnati, Cleveland, and Columbus. Small business owners can open a checking and savings account through this bank. If you need extra capital to start or grow your business, Huntington Bank offers multiple financial products tailored to small businesses including:

  • Term Loans
  • Commercial Real Estate Loans
  • Lines Of Credit
  • Business Credit Cards
  • SBA Loans

Huntington Bank is a particularly good choice for SBA loans, as it has been ranked the top SBA lender in the region for the last 10 years.

Rates, terms, and borrower requirements vary by product. If you’re interested in getting financing through Huntington Bank, call their toll-free number or visit a branch near you to learn more.

Wright-Patt Credit Union

If you prefer more personalized service when seeking your small business financing, consider joining a credit union. In Ohio, Wright-Patt Credit Union is one of the largest with over 30 locations throughout the state.

As a member of Wright-Patt Credit Union, you’ll be able to handle all of your finances in one place. In addition to traditional financial products including business checking, savings, and money market accounts, members can also apply to receive financing through:

  • Commercial Real Estate Loans: Terms up to 25 years
  • SBA Loans: 7(a), Express, and 504
  • Commercial Auto Loans: Terms up to 84 months
  • Term Loans: Terms up to 10 years
  • Business Credit Cards
  • Lines Of Credit

Rates, terms, and borrower requirements vary by financial product. Some financing options, including auto loans and business credit cards, have online applications available to Wright-Patt members.

To become a member, you must meet one of the following requirements:

  • Live, work, attend school, or worship in one of the Ohio counties serviced by the credit union
  • Be a military or civilian employee of Wright-Patterson Air Force Base
  • Live in the Fairborn area with no access to other credit unions
  • Be a student, faculty member, staff member, or alumnus of Wright State University
  • Have a family member that is a Wright-Patt member
  • Be in a group affiliated with Wright-Patt Credit Union

Finance Fund Capital Corporation

Finance Fund Capital Corporation (FCAP) is a nonprofit community development financial institution. Through FCAP, eligible Ohioans can apply for funding through the Small Business Loan Fund. Loans are available in amounts from $100,000 to $1 million. Funds can be used for the following business purposes:

  • Working Capital
  • Real Estate Acquisitions
  • Construction
  • Leasehold Improvements
  • Equipment

Loans come with terms up to 7 years. However, there are longer options for commercial real estate and fixed asset purchases. Rates are based on the creditworthiness of the borrower and the risk of the project being funded.

To qualify, a business must:

  • Be a for-profit sole proprietorship, partnership, or corporation
  • Provide vital services to the area
  • Operate in an underserved market
  • Have a viable business idea

Loans are also given through the SBA Community Advantage program. To learn more and to apply for the Small Business Loan Fund, call or email Finance Fund Capital Corporation.

Small Business Grants In Ohio

If your business needs capital, turning to a lender isn’t your only financing option. Your business may qualify for a small business grant. The best thing about small business grants is that funds don’t have to be repaid, so there’s no worrying about monthly payments, high interest rates, or fees.

On the flip side, scoring a small business grant isn’t just as simple as filling out an application, having a credit check performed, and getting the funds you requested. Small business grants are extremely competitive. You must also meet very specific requirements — such as operating in a certain industry, having a veteran-owned business, or being a woman business owner — for most grants.

In the state of Ohio, there are several grant programs to consider. Start with these options.

JobsOhio

JobsOhio is a nonprofit corporation that aims to create jobs and promote economic development in Ohio by attracting, retaining, and expanding businesses. Through JobsOhio, small business owners have access to grant and loan programs including:

  • Economic Development Grant: Focuses on fixed asset and infrastructure investment of companies, including site development, machinery and equipment, land, and buildings.
  • Revitalization Program: Provides funds for businesses, nonprofits, and governments for costs related to redevelopment projects, including demolition, building renovation, and site preparation.
  • Workforce Grant: Provides funding for company training costs including information technology, leadership skills, technical training, and on-the-job training.
  • Growth Loan Fund: While not a grant, the Growth Loan Fund provides low-cost loans for established businesses that have limited access to traditional funding sources. Loan funds can be used to purchase fixed assets including land, buildings, machinery, and equipment.

Ohio Development Services Agency

The Ohio Development Services Agency has multiple programs that are designed to help Ohio businesses grow and create jobs. These programs include small business grants, low-cost loans, tax credits, and bonds.

Programs available through the Ohio Development Services Agency include:

  • Alternative Fuel Transportation Program: Provides financial assistance to businesses that purchase and install alternative fuel facilities and terminals.
  • Energy Loan Fund: Provides low-cost financing to businesses and manufacturers for improvements that reduce fossil fuel emissions and energy usage.
  • Ohio Minority Business Direct Loan Program: Provides low-interest loans to minority-owned businesses

City Of Cleveland Green Technology Business Grant Program

New green technology businesses located or relocating to Cleveland, Ohio, may qualify for the Green Technology Business Grant Program. To qualify, a business must create at least five new jobs within its first year.

The grant provides up to 1% of new payroll for up to 3 years. An additional $5,000 is also available as a Moving Assistance Grant. Interested small business owners can apply online through the City of Cleveland Economic Development.

Loans & Resources For Startups In Ohio

Startup businesses may find it a challenge to get the capital and resources they need to grow. Fortunately, the state of Ohio offers multiple resources to help new businesses and startups succeed.

Minority Business Assistance Centers

The Ohio Development Services Agency offers assistance to minority-owned businesses through its Minority Business Assistance Centers. Through these centers, minority-owned and disadvantaged small businesses can receive services including accounting assistance, business management counseling, marketing plan development, and help identifying local resources.

SCORE

SCORE is one of the nation’s best resources for startup and small business owners. Through SCORE, you can receive free business counseling with an expert mentor. You can meet face-to-face with your mentor or you can receive counseling online.

SCORE also offers free and low-cost business training, workshops, and other resources such as business templates and guides.

SCORE chapters are located throughout the state of Ohio in cities including Mansfield, Columbus, Toledo, and Newark.

Ohio Small Business Development Centers

Whether you’re launching your business or taking your existing business to the next level, the Ohio Small Business Development Centers have resources for you. You can work with a Certified Business Advisor to get your business on the right track.

Services available through SBDC include business planning, one-on-one counseling, finding sources of capital, workshops, and training programs.

Offices are located throughout Ohio in cities including Akron, Cincinnati, Cleveland, and Columbus.

What To Consider When Choosing A Lender

Now that you know just a few of the options available to you, narrowing down your choices to just one lender can be tricky. However, there are a few factors to keep in mind to help you choose the right lender for your business.

Type Of Financing

What type of financing are you seeking? If you want a flexible line of credit, you can cross off any lenders that offer long-term loan options. Interested in SBA loans? Then don’t give short-term lenders a second glance. Determine what type of financing works best for your business, then select a lender that provides this type of funding.

Borrowing Amount

If you need $500,000 to purchase commercial real estate, a $10,000 loan isn’t going to get you very far. Consider the borrowing limits of each lender, then choose the lender that is able to provide the capital your business needs.

Affordability

When you receiving financing, you have to consider the overall cost of borrowing. Calculate the fees, interest, and other costs associated with each lender you’re considering. Working with one lender may be faster and easier, but the costs may be much higher … and could be too much of a burden for your business. Consider your options, don’t feel obligated to take the first offer, and know how much your business can afford. Remember, you want to grow your business, not slide into a cycle of debt.

Borrower Requirements

Do you meet all of the requirements of the lender? Lenders consider factors such as personal credit score, business credit score, past credit history, time in business, and annual revenue. If you don’t meet these requirements, you won’t get approved, so why waste your time? Grab your free credit score, read up on borrower requirements, and submit your application only when you know you meet all requirements. Also, please remember that meeting the minimum requirements of a lender is not a guarantee of approval.

Final Thoughts

Starting and operating a business is tough for even the most experienced entrepreneur. Luckily, you don’t have to go it alone. As a business owner in Ohio, there are multiple lending options and other resources available to you to keep your business on the path to success.

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