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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:
Starting a business is hard and starting a business in New York City is even harder. With its high cost of living, competitive market, and stringent regulations, it’s no wonder that many businesses struggle to get off the ground. But financial challenges don’t stop once your business is up and running. As you grow, you may find yourself facing even more financial hurdles. Fortunately, there are solutions available for those willing to take the initiative – Small Business Loans.
Small Business Loans can provide the necessary funds to build up your business, but they come with their own set of challenges. To help you navigate these challenges, we’ve compiled a guide to everything you need to know about Small Business Loans in New York City.
CHAPTER 1: WHAT ARE SMALL BUSINESS LOANS AND HOW DO THEY WORK?
Small Business Loans are loans given to small businesses by financial institutions such as banks, credit unions, or online lenders. These loans typically range from $5,000 to $500,000, with loan terms ranging from six months to five years. But how do they work? In short, Small Business Loans require borrowers to pay back the amount borrowed, plus interest rates.
CHAPTER 2: TYPES OF SMALL BUSINESS LOANS
There are different types of Small Business Loans available, each with its unique features, including rates, terms, and requirements. Here are some typical types of Small Business Loans, their requirements, and what they should be used for:
– Term Loans: Term loans are one of the most reliable sources of funding available to small businesses. These loans offer larger sums of capital at lower interest rates than other financing alternatives.
– SBA Loans: The U.S. Small Business Administration (SBA) offers a wide range of loan programs to help fledgling companies meet their monetary goals. SBA loans are government-backed, long-term, low-interest rate funding options.
– Equipment Loans: If your company requires gear or vehicles, equipment financing is the perfect solution to cover expenses like medical tools, construction machinery, and, of course, vehicles.
CHAPTER 3: CHALLENGES OF SMALL BUSINESS LOANS IN NEW YORK CITY
While Small Business Loans can be beneficial, they come with their own sets of challenges. In New York City, where the cost of living is high, banks typically offer less money to start-ups. The negative effect it has on businesses is sometimes unbearable. Below are some of the challenges you may face regarding Small Business Loans in NYC:
– Limited Funding: Most lenders are typically hesitant to finance local start-ups due to their nature of being high risk.
– Stringent Application Process: The application process for Small Business Loans can be complex and lengthy, especially in a city like New York. Specific criteria need to be met before receiving approval.
CHAPTER 4: HOW TO OVERCOME THE CHALLENGES OF SMALL BUSINESS LOANS
Overcoming the challenges of Small Business Loans in New York City requires extensive research and dedication. Here are some tips on how to make the most of your loan application:
– Do Your Research: Finding out about available financial institutions’ terms and rates is crucial for choosing the right lender.
– Consider an Alternative Lender: Online lending platforms like Fundbox operate online without the constraints of traditional bank lending. This option makes funding more accessible for those that might not qualify under regular banking conditions.
– Prepare a Comprehensive Business Plan: When applying for Small Business Loans, a concise and convincing business plan that highlights the profitability of your company could enhance your chances of being approved.
CONCLUSION
In conclusion, growing a business in New York City requires overcoming various financial challenges. Small Business Loans enable a business owner to stay competitive, take advantage of new opportunities, hire additional staff, and build credit scores. They provide much-needed capital to invest in future growth while ensuring cash flow. However, like with any loan, applying for Small Business Loans requires careful consideration and research. By following this guide, you can navigate the hurdles and make an informed decision that helps you take your company to new heights.
Further Reading:
Frederick S., Robert J., Christine M. (2014) “What Banks Want: A Guide to Small Business Loan Hurdles”. Business Horizons. [Online] Available at: https://www.sciencedirect.com/science/article/pii/S0007681314001218 [Accessed on: 10 June 2021]
Caron R. (2018) “Overcoming the Top Challenges of Applying for a Small Business Loan”. Forbes. [Online] Available at: https://www.forbes.com/sites/allbusiness/2018/01/24/overcoming-the-top-challenges-of-applying-for-a-small-business-loan/?sh=22f9208d77af [Accessed on: 10 June 2021]
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