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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 hustle and bustle of New York City never ceases to amaze. The crowded streets, the skyscrapers that scrape the sky, and the endless possibilities of achieving success are just some of the reasons why the Big Apple is one of the most iconic cities in the world.
But with great opportunities come great challenges. Starting and maintaining a business in this city can be tough, especially when you lack the financial backing to get things off the ground. Fortunately, the availability of small business loans has helped turn many start-up dreams into reality.
In this article, we will delve into the important role of small business loans in the success of businesses in the big apple. We will cover everything from the different types of loans available, their benefits, and take a look at some success stories of entrepreneurs who have leveraged these loans to achieve their goals.
Types of Small Business Loans
Before we dive into how small business loans can help entrepreneurs in New York City, it’s essential first to understand the different types of loans available. Identifying what type of loan fits your specific business needs is critical in ensuring that you maximize the potential benefits.
– Traditional Bank Loans:
These are loans given out by traditional banks to business owners. They typically offer longer repayment terms ranging from 5-10 years but require substantial credit scores and collateral to secure.
– SBA Micro-loans:
The Small Business Administration provides loans to new and established businesses seeking short-term capital for working capital, inventory, equipment purchases, or other business needs.
– Equipment Loans:
These loans help businesses finance new equipment purchases or upgrades to existing equipment. They may be offered as long-term loans or leases and often require the equipmentas collateral.
– Invoice Factoring:
This type of loan involves a third party purchasing your company’s accounts receivable, offering immediate cash upfront, and collecting payment from your customers on your behalf.
Benefits of Small Business Loans
Taking out a small business loan can offer your enterprise a host of benefits. Here are some of the most significant perks:
– Expanding Your Business:
Small business loans can provide entrepreneurs with the necessary capital to expand their businesses, hire additional staff, purchase new inventory or equipment.
– Improved Cash Flow:
Small business owners typically struggle with cash flow issues, which can hurt their bottom line. Loans can help overcome such financial problems while also ensuring timely payment of employees and vendors.
– Building Credit:
Consistently paying back loans on time can establish excellent credit for your business. A good credit record will make it easier to secure future funding and other types of financial products in the future.
Success Stories
Small business loans have played a crucial role in enabling many entrepreneurs in New York City to achieve their dreams. Here are some notable examples:
– Breads Bakery:
When Breads Bakery was just starting, it needed extra funds to expand its production capacity. A loan from BFS Capital allowed them to invest in equipment and develop new products resulting in increased revenue.
– Patsy’s Pizzeria:
In 2012, Patsy’s Pizzeria was struggling due to cash flow issues. Small business lender Biz2Credit provided a $50,000 loan that helped them pay off debt and grow their customer base.
– The Meatball Shop:
The owners of The Meatball Shop identified an opportunity to expand their restaurant chain by opening a new location in Brooklyn. To make this happen, they turned to OnDeck which offered them a $250,000 loan with a 36-month term.
Counterarguments
While most entrepreneurs in New York City understand the importance of small business loans to success, some may argue against obtaining these loans. The following are some counter arguments that you may encounter:
– High-Interest Rates:
Some lenders offer small business loans at high-interest rates, which can result in substantial debt obligations and ultimately harm profitability.
– Risk and Responsibility:
Taking on debt can be a significant risk for small businesses. If things don’t go as planned, it could lead to defaulting on loans, which damaging your company’s credit report.
– Limited Funds:
Small business loans may not be enough to cover major expenses or long-term commitments that bigger loan programs offer.
Conclusion
New York City is a hub of innovation and opportunity, but without financial backing, starting and growing a business can be challenging. Small business loans provide entrepreneurs with the necessary capital to achieve their goals, and this article has showcased its importance. By identifying the type of loan that fits your needs and understanding the benefits they offer, you can turn your startup dreams into success stories.
Sources:
– https://www.nav.com/blog/types-of-small-business-loans-885237/
– https://smallbusiness.chron.com/pros-cons-sba-micro-loans-33646.html
– https://www.nerdwallet.com/article/small-business/best-equipment-financing-websites
Table:
| Types of Loans | Description |
|———————— |—————————————————————————– |
| Traditional Bank Loans | Require collateral |
| SBA Micro-loans | Provides short-term capital for new and established businesses |
| Equipment Loans | Help finance new equipment purchases |
| Invoice Factoring | Involves purchasing accounts receivable, offering immediate cash upfront |
References:
Bread Bakery Success Story:
http://blog.bfscapital.com/community/customer-stories/breads-bakery/
Patsy’s Pizzeria Success Story: https://www.biz2credit.com/blog/2018/08/13/biz2credits-small-business-lending-index-shows-struggle-for-female-entrepreneurs-in-funding/
The Meatball Shop Success Story: https://www.businesswire.com/news/home/20150115005152/en/Meridian-Hill-Completes-16.5M-CLO-OnDeck-Asset
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