Medium and small businesses can apply for small business loans for the following purposes: Setting up a Business; Purchase of inventory; Improving the financial power or the working capital of the business and for expansion of the business which may include purchasing more machinery, hiring more employees etc.
How much of Small Business Loan Can I qualify for?
This would vary from lender to lender and also depend on the eligibility of the business to qualify for a certain amount. Usually the loans are approved in the range of $5,000- $100,000. The tenure of these loans again varies as per the lenders’ rules.
What amount of loans can I apply for?
Most of the lenders offer loans at fixed terms and repayment schedules. These loans work out to be more reasonable than the cash advances that can almost work out to be twice as expensive.
How Do I Repay The Loan
Usually the loans are set for a fixed repayment date every month that can be agreed with the lender at the loan approval stage and you can opt for a direct debit facility that lets your bank auto debit the amount directly from your account
Which Industries Are Funded by Small Business Loans
Usually these loans cater to a variety of businesses, manufacturing units and essential services that span across industries and catering to various retail and corporate needs. These loans may provide funding to hotels, restaurants, day care centers, doctors clinics, and retail stores, Spa and Wellness Centers or various specialized Contractors.
Does My Business Qualify For Such Loans
Though the eligibility criteria can vary from lender to lender and even state to state, there are some basic common requirements such as: business should exist for at least 1 year, the operations should be based in the US and the annual turnover must be as per the benchmark criteria.
Can My Personal Bad Credit Prevent My Business From Getting This Loan
No, most of the lenders may not take the small business loan approval decision based on the owner's credit history. They would rely more on the business credentials like the business plan, cash flow, contracts etc.
How Do I Apply For The Loan?
The loan application process is simple and can be done quickly by filling up a short online form that can be filled up and submitted within a matter of minutes. Most lenders are quite quick in their decision and the approval process can get completed within 1-3 business days, provided you meet all the required formalities and provide all the necessary information like Bank & credit card statements, business Tax ID, SSN details of the borrower.