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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
The Nitty Gritty of Small Business Loans
Are you an entrepreneur struggling to keep your business up and running? Do you have big plans for expansion, but find yourself lacking the necessary capital?
Running a small business can be financially trying. But, don’t lose hope! Enterprise small business loans could be just the thing you need to take your business to the next level.
What are Enterprise Small Business Loans?
Enterprise small business loans are loans provided by financial institutions that cater specifically to the needs of small businesses. These loans come in several different types, like term loans, SBA (Small Business Administration) loans, lines of credit, equipment financing, and invoice financing.
Term Loans
Term loans offer a lump sum of money that is repaid over a predetermined amount of time within a fixed interest rate. A great option if you need one-time injection of cash into your company or if you want to refinance your existing debt.
SBA Loans
SBA loans are offered by the Small Business Administration and they work with lenders to provide loans to small businesses. Compared to other loan options, SBA loans tend to have lower interest rates, longer repayment terms, and require less collateral.
Lines of Credit
Lines of credit offer maximum flexibility. They allow you to draw as much or as little money as needed, and only pay interest on what you’ve drawn. Similar to a credit card, lines of credit do have limitations and require creditworthiness.
Equipment Financing
Looking to purchase new equipment for your business? Equipment financing might be the way to go. This option provides an affordable way to acquire necessary equipment without putting a large burden on your finances.
Invoice Financing
If your business has outstanding invoices or account receivables, invoice financing can help you access cash sooner rather than later. A financial institution will purchase your existing invoices at a discount, freeing up the cash that you need to continue operations.
The Pros and Cons of Small Business Loans
Like any major financial decision, there are both benefits and drawbacks associated with small business loans.
Pros:
- Access to significant amounts of capital to help grow and expand your business
- Wide array of loan options allows for flexibility in finding the best fit for your business needs
- Interest paid on loan could be tax-deductible
- Small business loans allow owners to retain full ownership of their companies
Cons:
- Choosing the wrong option could lead to a long-term financial burden
- Repayment is necessary, even if the purchased asset depreciates or the business fails
- Collateral may be required, putting assets at risk if payments are not made on time
- Declined credit applications might have adverse effects on future credit applications
Getting Started
Now that you’re aware of the different types of small business loans available, how can you get started?
First and foremost, do your homework. Take some time to research the different types of loans and their respective terms and conditions. Look into loans offered by both banks and alternative lenders-another possible source of funding.
Next, consider reaching out to a financial planner or a consultant from the SBA to discuss what loan options might make sense for you and your business. They offer an abundance of resources and advice, including how you can improve your chances of being approved for a loan.
Once you’ve identified the type of loan you want to pursue and narrowed down your choice of lenders, be sure to read their reviews and do your due diligence. A poorly chosen loan option or lender could seriously affect your company’s financial health in the long run.
Testimonials and Reviews
Don’t take our word for it-read what small business owners have to say about their experiences with enterprise small business loans:
“I was hesitant to take out a loan, but I’m glad I did! My business needed a financial boost and enterprise small business loans provided just that.” – John D., owner of a retail store
“I’ve dealt with a few different lenders over the years, but I always come back to enterprise small business loans. They offer great rates and the flexibility my business needs.”- Sarah T., owner of a boutique marketing firm
“We were having trouble keeping our heads above water, but a small business loan helped us push through. Now, our business is not only surviving, but thriving!” – Mike H., owner of a small-scale manufacturing company
The Bottom Line
Small business loans can be a valuable tool to help entrepreneurs achieve their goals. By doing your research, being aware of the pros and cons, and seeking advice from professionals, you’ll be able to make the right financial decision for both you and your business.
And remember-you’re not alone. There are plenty of other business owners who’ve been in your shoes and succeeded in securing an enterprise small business loan. With the right resources and information, you can too!
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Counterargument: Risks of Small Business Loans
While small business loans can be an excellent funding solution, it’s important to understand the potential risks that come with borrowing money.
First and foremost, you’ll be required to pay back the loan in full, regardless of whether or not your business is successful. If your business fails, you’ll still need to make payments on any outstanding debt.
Collateral is also something to consider. Risking assets such as property or equipment means puts them at risk of being forfeited if payments are not made on time.
Finally, the interest rates charged could negate any financial benefit gained from taking out a loan. It’s important to weigh the costs against the benefits before committing to any agreement.
According to a report by Nerdwallet, default rates for small business loans can reach as high as 20%. This statistic reveals the importance of selecting a lending partner thoughtfully, doing thorough research, and having a backup plan in case things go wrong.
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Statistics on Small Business Loans
Looking for hard data on small business loans? Here are some compelling statistics:
- In 2019, small businesses received over $616 billion in loans across the United States.
- The average SBA loan size in 2021 was $107,000.
- 46% of small businesses used finance solutions to ease cash flow problems in 2020.
- SBA loans have a default rate of around 3%, while non-SBA bank loans and online lenders average around 7.5% and 20%, respectively.
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Testimonials and Reviews, Continued
With so many options available for small business loans, it can be hard to know where to start. But don’t take our word for it- hear from actual customers who’ve been through the process and experienced the impact of a small business loan.
“We were in dire need of extra funding for our startup. A small business loan allowed us to ramp up production and improve product offerings faster than we ever could have without financial assistance.” – Mary B., startup owner
“With today’s economy, it’s hard to know when cash flow might become an issue. Enterprise small business loans allowed us to prepare for the unknown by helping manage inventory and payroll.” – Bill R., owner of a retail shop
“Covid-19 impacted our company immensely, but a small business loan helped us stay afloat until things got back to normal. Having access to cash whenever we needed it made all the difference.” – Jennifer H., owner of a restaurant
Conclusion
Small businesses play a major role in driving the economy forward. If you’re struggling financially or looking for ways to expand your business, there are plenty of financing solutions available. From term loans to invoice financing, there is an option out there that fits your needs precisely.
Don’t forget to do your research, weigh the pros and cons, and always seek professional advice before signing on the dotted line. With the right approach and resources, you’ll be able to secure the capital necessary for taking your business to new heights.
External Links:
- Business.com: 5 alternatives to traditional small business loans
- Inc.com: 10 smart ways to get a small business loan
| Type of Loan | Interest Rates | Pros | Cons |
|---|---|---|---|
| Term Loan | Fixed interest rates | – Access to large sums of money – Longer repay term |
– Could lead to financial burden in long term – Collateral may be required |
| SBA Loan | Lower interest rates | – Longer repayment terms – Less collateral requirements – Offered at great rates |
– Choosing the wrong option could lead to long-term burden – Repayment necessary even if purchased asset depreciates or business fails |
| Line of Credit | Flexible interest rates | – Draw as much or as little money – Payment on what you have access to |
– Drawing limitation – Creditworthiness requirement |
| Equipment Financing | Low interest rates | – Affordable way to acquire equipment – Purchase new equipment without putting large burden on finances. |
– Could lead to financial burden in long term – Risking assets when using collateral |
| Invoice Financing | Varies by lender | – Access cash sooner rather than later | – Require outstanding invoices or account receivables |
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