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Delancey Street is a premier small business lender, based out of NYC, that has helped broker 100's of millions in business loans. They are a pro, at making sure you get all of your financing needs satisfied.
- Over $200 million in funding secured
- Can handle low risk credit
- Handles all industries
- Handles high risk and low risk loans
Introduction: The Importance of Small Businesses in Bakersfield
Bakersfield, California is a city with a significant number of small businesses. These small businesses play a critical role in the economic growth and development of Bakersfield. They create jobs, attract customers from other areas, generate tax revenue for the government, and contribute to the overall well-being of the community. However, starting and maintaining a small business requires a lot of financial resources. This is where small business loans come into play.
The Role of Small Business Loans in Growing Your Business
Small business loans are an excellent source of financing for entrepreneurs who want to start or expand their small businesses. With a small business loan, a business owner can access the funds needed to grow their business, purchase equipment or inventory, hire more employees, or even relocate their business. This influx of capital can make a massive difference in the success of a small business.
Types of Small Business Loans Available
There are several types of small business loans available to Bakersfield entrepreneurs. Each type of loan has its benefits and drawbacks, depending on the specific needs of the business owner. Some of the most popular types of small business loans include:
Term Loans: Term loans are a popular option as they allow business owners to borrow a set amount of money, which must be paid back over a specific period of time. These loans have fixed interest rates and require monthly payments.
SBA Loans: SBA loans are guaranteed by the Small Business Administration, making them an attractive option for borrowers who may not meet traditional lending requirements. These loans offer low-interest rates and long repayment terms.
Lines of Credit: Lines of credit provide business owners with access to a revolving line of credit that can be used as needed. Interest is only charged on the amount borrowed, which can be extremely beneficial for businesses that have fluctuating cash flow.
Equipment Loans: Equipment loans are available for businesses that need to purchase new equipment or machinery. These loans are secured by the equipment being purchased and typically offer lower interest rates than other types of loans.
Why Consider Small Business Loans in Bakersfield?
Small business loans play a significant role in the growth and success of small businesses in Bakersfield. They provide entrepreneurs with the capital they need to start their own businesses or expand existing ones. There are many reasons why small business owners in Bakersfield should consider applying for a small business loan:
Access to Capital When You Need It
A business owner may run into unexpected expenses, such as a need for additional inventory or a broken piece of machinery. By taking out a small business loan, they can access the necessary capital to take care of these expenses without having to drain their cash reserves or sell off assets.
Getting the Funding You Need to Start a Business
Starting a business requires capital. Those who don’t have the initial funding needed to start a venture often turn to small business loans as an alternative. Many lenders offer loans designed specifically for start-ups, which can provide new entrepreneurs with the financial resources they need to bring their vision to life.
Investing in Your Business
Even if a business is doing well, there may come a time when the owner wants to invest more money into the business to take it to the next level. This could mean investing in marketing campaigns, expanding their product line, or relocating to a larger space.
The Benefits of Getting a Small Business Loan
Taking out a small business loan has several advantages for entrepreneurs who want to grow their small businesses in Bakersfield. Here are just a few of the most significant benefits:
A small business loan provides entrepreneurs with the resources they need to make the investments they need to grow their businesses. These loans have repayment terms that can be customized to fit the unique needs of each business owner.
Regular and timely payments on a small business loan can help improve the creditworthiness of an entrepreneur. A higher credit score will allow them to secure loans with lower interest rates in the future.
Access to Expertise
Many lenders provide more than just funding; they also offer expertise that can help a business owner grow and succeed. This can include advice on marketing, sales, or other aspects of running a successful business.
By taking out a small business loan, entrepreneurs may establish strong relationships with their lenders. Lenders who see a business’s success may offer additional capital down the road or refer others who may require financing.
How to Apply for a Small Business Loan
The process for applying for a small business loan varies depending on the lender, but there are some essential steps that entrepreneurs must take:
Step 1: Determine Your Needs
Before applying for a small business loan, it’s essential to determine exactly how much money you need and what the funds will be used for. This will help you identify which type of loan is the best fit for your needs.
Step 2: Research Available Lenders and Loan Requirements
There are several small business lenders in Bakersfield, each with their own unique requirements for securing financing. Research is necessary to determine which lenders are the best fit and meet those requirements.
Step 3: Gather All Required Documents
Lenders typically expect borrowers to provide several documents when applying for a small business loan. These can include financial statements, tax returns, bank statements, personal identification, and more.
Step 4: Fill Out the Application
After gathering all the necessary documents and researching available lenders, it’s time to fill out the application. Most applications are streamlined, offering a simple online process.
Step 5: Wait for Approval
Once the loan application is submitted, it will be reviewed by the lender. The length of time to receive approval varies and can be anywhere from one week to three months.
The Downside of Small Business Loans
While small business loans play an important role in helping entrepreneurs grow their businesses, they are not without risks. Here are a few downsides to consider:
Debt Repayment Obligations
Borrowing money means taking on debt and having an obligation to repay that debt. While some entrepreneurs may be able to pay back the loan easily, others may struggle, putting themselves at risk for defaulting on the loan.
Strict Lender Requirements
Lenders often have specific criteria that must be met before approving a loan. This means that some entrepreneurs may not qualify for financing, even if they have sound business plans.
Interest Rates and Fees
Small business loans come with interest rates and fees. While these rates and fees vary depending on the lender, they can significantly impact the total cost of borrowing money.
Small business loans can provide entrepreneurs with the capital needed to start or grow their businesses in Bakersfield. By understanding the benefits and risks, entrepreneurs can make informed decisions about whether this type of financing is right for their business. With proper planning, research, and support from reliable lenders, businesses can secure the funding they need to succeed.