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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
Are you a small business owner looking to take your venture to the next level? Maybe you’ve just started and need some extra capital to get off the ground. Whatever your situation, consider applying for a small business loan in New Orleans! With the help of local lenders and government programs, you can expand your business and achieve your dreams.
What are Small Business Loans?
Small business loans are financial products designed to aid small businesses in their growth and expansion efforts. These loans can come in many different forms, including traditional bank loans, SBA (Small Business Administration) loans, and more specialized options such as non-profit micro-lenders.
Small business loans can provide startup capital, help pay for inventory, purchase equipment and hire additional staff. While these loans can be challenging to obtain if you lack credit history or collateral, they remain an essential tool for entrepreneurs looking to grow their companies.
Types of Small Business Loans
There are several types of small business loans available to entrepreneurs. The differences between them are based on speed of approval, interest rate and terms, eligibility requirements, and other factors that will determine which option is right for your unique situation.
Traditional Bank Loans
Traditional bank loans are a common option for small business owners. Banks tend to offer competitive interest rates, but the application process can be lengthy and require significant documentation. In addition, banks typically only lend to those with an established credit history, making it difficult for first-time business owners or anyone without extensive assets to be approved.
While traditional bank loans can be difficult to obtain, Small Business Administration (SBA) loans have relatively low eligibility requirements and can offer favorable interest rates. SBA loans offer several different programs, including the 7(a), Express and 504. These loans can be used for a wide range of expenses, including working capital, equipment purchases, and real estate.
Credit unions can also offer small business loans. Credit unions are generally more open to lending to small businesses than traditional banks, but they may still have stringent eligibility requirements such as membership in the credit union or a good credit score.
Online lenders can provide fast access to capital with relatively loose eligibility requirements. These non-bank financial institutions allow borrowers to apply online and often receive funding within days of approval. However, interest rates tend to be higher for online lenders, so make sure you shop around and compare the fees, terms, and other factors to determine if it’s the right option for your business.
Micro-lenders specialize in small loans under $50,000. They often work with borrowers who have limited credit history or weak collateral, making this an excellent option for early-stage startups. With a higher-than-average interest rate, micro-lenders offset the added risk they take on by providing their services to small businesses that typically would not qualify for traditional bank loans.
The United States government offers several loan programs designed to support small businesses. Among the most popular are SBA loans, but there are also other types, such as grants provided by various federal agencies or local governments. Some of these loans target specific sectors, such as women-owned or minority-owned businesses. These programs offer low-interest rates and favorable terms, making them an attractive option for many entrepreneurs.
How to Qualify for Small Business Loans in New Orleans
Obtaining a small business loan requires careful consideration of the loan type, amount, interest rate, repayment term, and eligibility requirements. New Orleans small business owners should begin by researching the available loan options and qualifying criteria before applying. Preparing the necessary documents such as financial statements, business plans, and feasibility studies is also important.
Here are some of the factors lenders consider when evaluating a small business loan application:
Credit Score: Your personal and business credit scores will both be taken into account.
Collateral: You must have assets that lenders can use to secure the loan, such as property or equipment.
Revenue and Profitability: Lenders will want to see that your business has a steady revenue stream and is profitable enough to repay the loan.
Experience and Business Plan: Some lenders will need to see a well thought out business plan that includes financial projections showing that you can repay the loan on time.
Reputation: The reputation of your industry, geographic location and specific business will all be taken into account.
Opinions and Reviews
For many entrepreneurs, small business loans have proven to be the lifeline they need to take their businesses to the next level. Local businesses in New Orleans are no exception, praising the ease and convenience of accessing these funds.
According to Robin Barnes, Executive Director of Move Ya Brass and President of the Jazz and Heritage Foundation’s Board of Directors, “I went through Kiva New Orleans for my first loan for Move Ya Brass Inc. I loved that it was an online platform and was able to connect me with people who believed in what I was doing.”
Meanwhile, Aline Pilcher, the owner of the vintage clothing store Trashy Diva, said, “We’ve utilized several loans from the SBA over the years to grow our business… we couldn’t have done it without them.”
Small business loans are crucial instruments that provide essential capital necessary for small businesses to thrive. While traditional bank loans remain as challenging as ever to acquire, there are several options available, including credit unions, online lenders, and micro-lenders. By researching these different options and applying for loans that suit your circumstances, you can access the capital critical to your company’s survival and growth.
So don’t wait! Head to your local bank or reputable online lender today, and take advantage of the small business loans available in New Orleans!