3 ways to get a small-business loan

The recovering economic environment has meant that small businesses have had to be more creative when looking for loans.

However, companies with sound business strategies still can borrow. Options include loans from traditional banks and institutions affiliated with the Small Business Administration, as well as financing from Internet-based lenders.

“For creditworthy, high-scoring small businesses, there is money available,” says George Cloutier, CEO of American Management Services, a consultant to small businesses.

Bank loans

The best place to get a small-business loan is still a bank, says Cloutier. Banks typically offer the lowest interest rates and many have established reputations as trustworthy lenders.

“Many small businesses try three or four banks and then stop looking,” Cloutier says. A more persistent approach has better odds of success.

Calculate business loan payment

Want to calculate your small-business loan payment? Go to Bankrate’s loan and amortization calculator.

“Take out the phone book, target 10 banks and work through that list,” he says.

That strategy worked for Michael McKean. He is founder of The Knowland Group, a company that helps hotels fill up their meeting space.

A few years ago, as the success of The Knowland Group grew, McKean began searching for a bank that would give the growing company expanded access to credit.

“We talked to every bank in our area, at least a dozen,” McKean says. “Many came back with proposals, but the terms were very onerous. Or sometimes they shifted terms.”

Finally, M T Bank came through.

“They just wanted to get our business,” McKean says.

McKean says his company did not approach M T any differently than it had approached the other banks. It was just a matter of being persistent until the right deal came along, he says.

“We did everything right, approaching the right person at each bank,” he says. “We’re a profitable business. I think it was just the … credit crunch that prevented us from getting a loan.”

Cloutier says the key to success with banks is to show past profitability, and to describe a well thought-out plan for future profits.

“If you aren’t making a profit now, you must be able to tell the bank how you will change that in the short term, or you really won’t be able to get a loan,” he says.

He also recommends that businesses start small in their loan requests.

“If you need money for four trucks, ask for two,” Cloutier says. “The bigger the loan request, the harder it is to get it approved.”

SBA loans

Another way to find a bank loan is through the Small Business Administration, or SBA. The SBA can direct you to banks that offer loans guaranteed by the agency. This way, you’ll have the advantage of approaching banks specifically interested in lending to small businesses.

Interested businesses should contact the SBA office nearest to them, which can be found on the agency’s website. Jeanne Hulit, the SBA’s acting administrator, urges businesses to seek a bank that is an experienced SBA lender.

Banks granting SBA loans place increased emphasis on business plans, cash flow and profit forecasts in deciding whether to lend, she says. The SBA also can refer businesses to free counseling centers to improve their performance.

Online opportunities

Another source for loans is the Internet. There are several sites where businesses can seek alternative lenders, such as individuals and small companies.

Interest rates are generally a little higher than what a bank will charge, but it’s much less than what you’ll have to pay on many credit cards.

Look around at different sites, some may charge a one-time fee to list your business, while others are free to list but might have fees reflected in loan rates.

If you’re going to list your company on one of these sites, describe your business in clear and concise language.

Lastly, make sure to investigate the company you are looking to post your business on. These kinds of companies were successful in 2008 and during the recession, but times have changed. Many have since gone out of business. Before paying for anything, make sure the company is legit.



Business Loans

tailored for you

Borrow up to £500,000

  • Borrow £5,000 to £500,000 for up to 48 months
  • Unsecured and secured borrowing options
  • Receive funding in as little as 48 hours
  • Industry-leading flexibility, including penalty-free early repayments, top-ups and repayment holidays
  • Ongoing support from a dedicated relationship manager

Higher-value finance for established companies

Business loan calculator

Companies that may not fit the strict criteria applied by many banks could find more success here as Fleximize uses its own unique credit-scoring model

The Daily Mirror

Born to revolutionize the finance world

Offering growing businesses the service traditionally reserved for the corporates

Business loan calculator

We’re about empowering businesses

We created Fleximize because we think it’s wrong that great businesses are held back by a lack of funding. Having worked with small businesses, we know that there is a better way to predict a company’s growth and success than a computer-says-no algorithm.

Business loan calculator

We believe that by taking some time to listen and understand what businesses are about, we can provide financing tailored to suit all types of businesses, and we will choose to lend to many of them.

We’re tech-focused but relationship-driven. This means a lightning-fast process from initial application to receiving your funds, plus a dedicated point of contact for you every step of the way.

Excellent

Business loan calculator

Business loan calculator

Business loan calculator

Business loan calculator

Business loan calculator

The Trustscore for Fleximize is 9.5 / 10,

based on 103 reviews

Discover choice. The smart way to borrow.

We’re innovating UK finance by introducing the UK’s first revenue-based finance product. You will receive an immediate capital lift in exchange for a small portion of future revenue at a fixed cost. No equity, just a percentage of your takings until your loan is repaid, allowing your business to grow organically.

At Fleximize, we strive to provide best-in-class service, flexibility and choice across all of our services. All of our business loan options offer truly flexible features that will continue to support business growth for as long as your business requires.

We offer top ups and repayment holidays, and there’s absolutely no penalty for early repayment. In fact, if you repay early you’ll only ever pay interest for the time you had the loan.

Every day we empower small businesses to grow by providing the finance they need to reach their potential. Start growing your business today with Fleximize.



Business Loans

tailored for you

Borrow up to £500,000

  • Borrow £5,000 to £500,000 for up to 48 months
  • Unsecured and secured borrowing options
  • Receive funding in as little as 48 hours
  • Industry-leading flexibility, including penalty-free early repayments, top-ups and repayment holidays
  • Ongoing support from a dedicated relationship manager

Higher-value finance for established companies

New business loan

Companies that may not fit the strict criteria applied by many banks could find more success here as Fleximize uses its own unique credit-scoring model

The Daily Mirror

Born to revolutionize the finance world

Offering growing businesses the service traditionally reserved for the corporates

New business loan

We’re about empowering businesses

We created Fleximize because we think it’s wrong that great businesses are held back by a lack of funding. Having worked with small businesses, we know that there is a better way to predict a company’s growth and success than a computer-says-no algorithm.

New business loan

We believe that by taking some time to listen and understand what businesses are about, we can provide financing tailored to suit all types of businesses, and we will choose to lend to many of them.

We’re tech-focused but relationship-driven. This means a lightning-fast process from initial application to receiving your funds, plus a dedicated point of contact for you every step of the way.

Excellent

New business loan

New business loan

New business loan

New business loan

New business loan

The Trustscore for Fleximize is 9.5 / 10,

based on 103 reviews

Discover choice. The smart way to borrow.

We’re innovating UK finance by introducing the UK’s first revenue-based finance product. You will receive an immediate capital lift in exchange for a small portion of future revenue at a fixed cost. No equity, just a percentage of your takings until your loan is repaid, allowing your business to grow organically.

At Fleximize, we strive to provide best-in-class service, flexibility and choice across all of our services. All of our business loan options offer truly flexible features that will continue to support business growth for as long as your business requires.

We offer top ups and repayment holidays, and there’s absolutely no penalty for early repayment. In fact, if you repay early you’ll only ever pay interest for the time you had the loan.

Every day we empower small businesses to grow by providing the finance they need to reach their potential. Start growing your business today with Fleximize.



Unsecured Business Loans with No Collateral or Credit Check

Unsecured business loan

Are you sick and tired of the strict qualifications banks and private lenders place on small business loans? Many institutions ask business owners for tens of thousands of dollars worth of personal collateral in order to qualify. Unfortunately, many companies simply don t have these assets and as a result, are shut out from fairly priced capital. Halo Capital simplifies the process by providing unsecured business loans with no collateral, no credit check, minimal paper work and quick approvals. We are able to make these loans by taking a different approach from most other loan providers. Instead of basing our evaluations on things like your credit score your personal assets, we look at the revenue your company generates to determine how much money you are eligible for. We can provide anywhere from 10K 2 million for your business. There are restrictions on how you can use your loan. If you re looking for a quick, hassle-free way of getting financed in a matter of days, then fill out the form on the right and a lender within our program will call with information on how much your business can receive.

Unsecured business loan

About the Financing Program

Due to recent government programs and Federal incentives, businesses can now qualify to receive loans between $10,000 2 Million without the use of personal guarantees, personal information or assets as collateral.

This is a free service that does not require any personal information since the loan is based on annual revenue of your business. This is a non-restrictive loan, allowing you the ability to spend the full amount of the loan any way you deem necessary for your business such as paying off or consolidating debt, hiring more employees, marketing or any other means you as the business owner feels necessary.

While this program is not a federal-based program, it is a benefit of the programs the government has provided that allows businesses such as yourself to qualify. We do want to stress that this is a free service and no personal information will be required.

Please ensure that you either meet or exceed the conditions to qualify as listed below. If you do meet those qualifications and complete the form to the right, a lender within our program will call with details of the unsecured business loans including terms and rates you qualify to receive.

Protect Your Personal Assets With An Uncollateralized Business Loan.

Unsecured business loan

Unsecured business loan



Small Business Administration loan programs explained

You’ve started your small business or finally nailed down your plan, and now you need capital to grow. Being a business owner means being on top of technological changes and new trends in your industry, which can require an investment. Sometimes that investment is time, sometimes it’s money and sometimes it’s both.

The US Small Business Administration (SBA) provides programs that can help get you the funding you need to take your business to the next level. Rather than supplying the loans itself, the government sets out a series of guidelines that, when followed, lets lenders benefit from a guarantee on the loan. Being guaranteed not to lose money gives lenders the peace of mind needed to lend to you when they might not have otherwise.

If you’re interested in finding out more about SBA loans, our guide explains the ins and outs of how they work and discusses what to compare when weighing your options.

Sba loan rates

SmartBiz SBA Loans

Get funding for your small business up to $5,000,000 with extended repayment terms.

  • Min. Loan Amount: 30,000
  • Max. Loan Amount: $5,000,000
  • Low starting APR: 5.75%
  • Min. Loan Term: 10 years
  • Max Loan Term: 25 years
  • Must have been in business 2+ yrs w/ annual revenue of $50,000+ and personal credit score of 600+

    What is an SBA loan?

    An SBA loan follows a series of guidelines put forth by the US Small Business Administration. These loans for small, independently owned businesses are especially helpful to those that wouldn’t normally qualify for a traditional bank loan.

    Several SBA programs are in place to serve different business needs. Such programs include those for military members, basic loans used to grow your business, disaster assistance and international trade. There are a dozen programs in all, so it’s likely you can find one to match what your business requires.

    How do SBA loans work?

    An SBA loan is not provided by the government, and it is not a grant. Rather, the SBA provides a guarantee to lenders that offer SBA loans. That guarantee is a percentage of the loan the government promises to pay back in the event that you default.

    That doesn’t mean that you’re off the hook if you don’t pay back the loan. Collections can still be initiated, and default will damage your credit. Likewise, if you’ve provided collateral, that collateral can be taken away so the lender can recoup the missed payments.

    Functionally, an SBA loan acts like any other loan to the borrower, except there’s a little more red tape and a slightly more stringent qualification process.

    Which businesses can benefit from SBA loans?

    Businesses that need working capital and are looking to grow stand to gain from taking out an SBA loan.

    However, you and your business will need to meet a few guidelines. First, you must be able to demonstrate a reason and exhaust all other financial resources before seeking assistance. You also cannot be delinquent on any existing debt owed to the US government, and loan funds must be for legitimate business purposes.

    Other eligibility criteria includes:

      • Your business must be for profit.
      • You must have established a place of business in the US.
      • You must primarily operate inside the US or make a contribution to the US economy.
      • Your business must be independently owned and operated.
      • You must have reasonable invested equity.

    You must also meet size standards that you can calculate using the SBA s online Size Standards Tool.

    Who are the top lenders offering SBA loans?

    Here are 100 top SBA loan lenders:

    Top 1-20

        • Wells Fargo Bank, National Association
        • Live Oak Banking Company
        • The Huntington National Bank
        • JPMorgan Chase Bank, National Association
        • U.S. Bank National Association
        • Celtic Bank Corporation
        • Newtek Small Business Finance, Inc.
        • SunTrust Bank
        • Byline Bank
        • Bank of Hope
        • First Home Bank
        • KeyBank National Association
        • Compass Bank
        • Commonwealth Business Bank
        • Seacoast Commerce Bank
        • Bank of the West
        • Pacific City Bank
        • Pacific Premier Bank
        • Stearns Bank National Association
        • Manufacturers and Traders Trust Company

    Top 21-40

        • TD Bank, National Association
        • Regions Bank
        • NewBank
        • First Financial Bank
        • Metro City Bank
        • BankUnited, National Association
        • Synovus Bank
        • United Community Bank
        • Pacific Western Bank
        • First Bank Financial Centre
        • Bank of America, National Association
        • Pinnacle Bank
        • Open Bank
        • Hanmi Bank
        • First National Bank of Pennsylvania
        • Fifth Third Bank
        • Berkshire Bank
        • East West Bank
        • NOA Bank
        • Harvest Small Business Finance, LLC

    Top 41-60

        • First Savings Bank
        • Umpqua Bank
        • Customers Bank
        • First Intercontinental Bank
        • Comerica Bank
        • Citizens Bank
        • Northeast Bank
        • Banc of California, National Association
        • Midwest Regional Bank
        • Radius Bank
        • Readycap Lending, LLC
        • Hana Small Business Lending, Inc.
        • First-Citizens Bank Trust Company
        • First Bank
        • CenterStone SBA Lending, Inc.
        • Noah Bank
        • Community Bank
        • Independence Bank
        • Spirit of Texas Bank, SSB
        • New Millennium Bank

    Top 61-80

        • Zions Bank, A Division of
        • Fidelity Bank
        • Simmons Bank
        • Citizens Bank, National Association
        • West Town Bank Trust
        • MUFG Union Bank, National Association
        • Bank of George
        • The Bancorp Bank
        • Branch Banking and Trust Company
        • Uniti Bank
        • US Metro Bank
        • State Bank and Trust Company
        • First Chatham Bank
        • United Midwest Savings Bank
        • Royal Business Bank
        • T Bank, National Association
        • Green Bank, National Association
        • Fulton Bank, National Association
        • Wallis State Bank
        • Eastern Bank

    Top 81-100

        • First Choice Bank
        • Mission Valley Bank
        • Rock Canyon Bank
        • Plaza Bank
        • The MINT National Bank
        • PNC Bank, National Association
        • United Business Bank, F.S.B.
        • First Community Bank
        • Centric Bank
        • First Western SBLC, Inc
        • Meadows Bank
        • Savoy Bank
        • Plumas Bank
        • Firstrust Savings Bank
        • BancFirst
        • Banner Bank
        • Chemical Bank
        • Plains State Bank
        • The Bridgehampton National Bank
        • IBERIABANK

    Which online lenders offer SBA loans?

    In addition to banks, some online business lenders offer SBA loans you may qualify for. Check out some of your options below:

    What types of SBA loans are available?

    Basic 7(a) Loan Program

    The 7(a) is the most widely used of the SBA loan programs. You can do many things with the funds from an SBA 7(a) loan, including purchase land, purchase equipment, refinance debt, buy an existing business and much more.

    Though terms are set by the borrower and the lender, the SBA puts some restrictions in place. You must meet general eligibility, and your loan cannot exceed $5 million.

    Guarantees made by the SBA come with a fee.



    Eligibility Requirements

    Since 1973, CIC has dealt exclusively with SBA loans – so staff members are experts at managing the loan process and streamlining it through a unique level of accuracy and efficiency. The quickest and easiest way to determine if a business and a project meet program eligibility requirements is to contact CIC. The financial team will determine if the SBA 504 Loan or a different program is the best financing solution. That said, following is a general outline of basic eligibility for the SBA 504 Loan Program.

    Eligible Uses

    • Aquisition of vacant land together with construction of a building
    • Acquisition of exisiting buildings, including renovations and/or additions if needed or desired
    • Marine facility acquisition, including fishing vessels and commercial boats
    • Purchase and installation of capital equipment, including heavy machinery
    • Associated costs such as furniture, fixtures and soft costs (such as appraisal and environmental due diligence costs, surveys, engineering and architectural fees)
    • Ineligible – working capital; mortgage broker fees; inventory; rolling stock (registered vehicles); most refinancing of existing debt

    ELIGIBLE COMPANIES AND INDIVIDUALS

    • Any legal entity (sole proprietorship, partnership, corporation, limited liability company)
    • Franchise businesses
    • Net worth under $15Million and net profit under $5Million
    • Located within the United States
    • Must be the owner/users of the Project to be financed with the SBA 504 Loan (Owner/users must occupy 51% of an existing building and 60% of a newly constructed building with the intention to occupy 80% of the building over time)
    • Must achieve an economic development goal through the financing of the Project
    • Ineligible – not-for-profits; businesses engaged in lending or loan packaging; insurance companies; businesses engaged in passive real estate investment; consumer and marketing cooperatives; businesses engaged in speculation; businesses engaged in political/lobbying activity; businesses engaged in providing purient sexual material
    • Ownership must be comprised of individuals possessing U.S. citizenship and/or permanent resident alien status
    • Ownership must be of good character
    • Business and its ownership must not have previously defaulted government loans

    Identification Procedures – Important Information

    To help the government fight the funding of terrorism and money laundering activities, Federal law requires that CIC obtain, verify and document information that identifies each person who applies for a SBA 504 Loan.

    A borrower needs to provide CIC with:

    Credit History

    The personal credit history of the borrower is an important factor. A credit history should be checked before applying for any loan. Any mistakes should be corrected that may adversely affect a borrowers ability to obtain a loan. The service is available annually to individuals free of charge. Check Credit History.

    SBA 504

    CIC is an economic development lender contributing financial expertise and practical guidance to small business entrepreneurs in Connecticut and Rhode Island who have powerful ideas and need more power to grow them.

    Connecticut Office: 2315 Whitney Ave, Suite 2B | Hamden, CT 06518 | t 203.776.6172 | f 203.776.6837

    Rhode Island Office: 10 Davol Square | Providence, RI 02903 | t 401.406.7282

    © 2016 Community Investment Corporation. All Rights Reserved. Site designed and hosted by WORX .



    3 ways to get a small-business loan

    The recovering economic environment has meant that small businesses have had to be more creative when looking for loans.

    However, companies with sound business strategies still can borrow. Options include loans from traditional banks and institutions affiliated with the Small Business Administration, as well as financing from Internet-based lenders.

    “For creditworthy, high-scoring small businesses, there is money available,” says George Cloutier, CEO of American Management Services, a consultant to small businesses.

    Bank loans

    The best place to get a small-business loan is still a bank, says Cloutier. Banks typically offer the lowest interest rates and many have established reputations as trustworthy lenders.

    “Many small businesses try three or four banks and then stop looking,” Cloutier says. A more persistent approach has better odds of success.

    Calculate business loan payment

    Want to calculate your small-business loan payment? Go to Bankrate’s loan and amortization calculator.

    “Take out the phone book, target 10 banks and work through that list,” he says.

    That strategy worked for Michael McKean. He is founder of The Knowland Group, a company that helps hotels fill up their meeting space.

    A few years ago, as the success of The Knowland Group grew, McKean began searching for a bank that would give the growing company expanded access to credit.

    “We talked to every bank in our area, at least a dozen,” McKean says. “Many came back with proposals, but the terms were very onerous. Or sometimes they shifted terms.”

    Finally, M T Bank came through.

    “They just wanted to get our business,” McKean says.

    McKean says his company did not approach M T any differently than it had approached the other banks. It was just a matter of being persistent until the right deal came along, he says.

    “We did everything right, approaching the right person at each bank,” he says. “We’re a profitable business. I think it was just the … credit crunch that prevented us from getting a loan.”

    Cloutier says the key to success with banks is to show past profitability, and to describe a well thought-out plan for future profits.

    “If you aren’t making a profit now, you must be able to tell the bank how you will change that in the short term, or you really won’t be able to get a loan,” he says.

    He also recommends that businesses start small in their loan requests.

    “If you need money for four trucks, ask for two,” Cloutier says. “The bigger the loan request, the harder it is to get it approved.”

    SBA loans

    Another way to find a bank loan is through the Small Business Administration, or SBA. The SBA can direct you to banks that offer loans guaranteed by the agency. This way, you’ll have the advantage of approaching banks specifically interested in lending to small businesses.

    Interested businesses should contact the SBA office nearest to them, which can be found on the agency’s website. Jeanne Hulit, the SBA’s acting administrator, urges businesses to seek a bank that is an experienced SBA lender.

    Banks granting SBA loans place increased emphasis on business plans, cash flow and profit forecasts in deciding whether to lend, she says. The SBA also can refer businesses to free counseling centers to improve their performance.

    Online opportunities

    Another source for loans is the Internet. There are several sites where businesses can seek alternative lenders, such as individuals and small companies.

    Interest rates are generally a little higher than what a bank will charge, but it’s much less than what you’ll have to pay on many credit cards.

    Look around at different sites, some may charge a one-time fee to list your business, while others are free to list but might have fees reflected in loan rates.

    If you’re going to list your company on one of these sites, describe your business in clear and concise language.

    Lastly, make sure to investigate the company you are looking to post your business on. These kinds of companies were successful in 2008 and during the recession, but times have changed. Many have since gone out of business. Before paying for anything, make sure the company is legit.



    Government Small Business Loans

    Government small business loans help put your own business within reach. First there’s the quest for a decent location, then comes building a customer base, followed by all the initial hiccups of generating a cash flow before your business grows roots and gains momentum. The beginning of a business is crucial because it’s when you gain or lose market credibility. If you disappoint your customers, they may not give you a second chance. If your business gets off to a rocky start (most do), and you believe you can recover but need further financing to make this happen, you can apply for government small business loans.

    For-profit lenders are reluctant to issue loans to anyone who does not have a strong credit report and financial history. That is not the case with government small business loans. Obviously, a decent credit report is important, and you will have to follow the guidelines regarding the repayment period and the interest rate set by the government, but usually the interest rates charged by government loans are lower than those you could expect in the private sector.

    More about Government Small Business Loans

    Government loans are typically offered through banks and credit unions that partner with the Small Business Administration (SBA). The SBA is a U.S. government body, with the motive of providing support for small businesses and entrepreneurs. For each loan authorized, a government-backed guarantee offers serious credibility, since the lender knows that even if you default, the government will pay off the balance. These loans can be applied to a number of uses, such as:

    • Purchase of new equipment, machinery, parts, supplies, etc.
    • Financing leasehold improvements
    • Commercial mortgage on buildings
    • Refinance existing debt
    • Establishing a line of credit

    Government small business loans benefit both small businesses and the lending agency. For small businesses, it is beneficial because this is money capital they may not have access too. For banks, the loan’s risk is decreased due to the loan being backed by the SBA.

    Different SBA Government Loans

    The SBA extends financial help through various lending programs it has to offer. Some of the more popular loans are:

    • 7(a) Loan Guarantee Program: aimed primarily in helping a small business start or expand its services. The maximum size of such a loan is $5 million.
    • MicroLoan Program: mostly used for short-term purposes, such as purchase of goods, office furniture, transportation, computers, etc. The maximum amount is fixed at $50,000.
    • 504 Fixed Asset Program: featuring fixed-rate and long-term financing, these loans are aimed at applicants whose business model will benefit their community directly, either by providing jobs or bringing needed services to an underserved area. Again, the maximum amount is $5 million.
    • Disaster Assistance: under this program, loans are sanctioned to renters or homeowners with a low-interest, long-term plan for the restoration of property to its pre-disaster condition.

    In most cases, maintaining a good business credit report is enough to qualify. In addition, it instills confidence not only in the lender, but also in you. There is at least one SBA office in every state in America. If you contact them regarding the startup status of your business model and plan, you can get started on a government small business loan that will give you the financing to make your dreams a reality.