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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
Small businesses have always been an integral part of the economy. It’s the small businesses that create a majority of jobs and contribute heavily to the economic growth of any country. Starting your own business with your unique ideas and vision is always exhilarating, but without sufficient capital, it can be challenging to turn those ideas into reality. That’s where small business loans come in. In this article, we will discuss Plano Small Business loans, how they work, and whether they’re the right fit for you.
What are Plano small business loans?
Plano small business loans are loans that are targeted towards small businesses located in Plano. These types of loans are designed to provide entrepreneurs with the necessary funds they need to start or expand their companies. There are many different types of small business loans available, each intended for different purposes.
Types of Plano Small Business Loans:
1) SBA Loans: SBA loan programs are a popular choice for small businesses in Plano. There are several types of SBA loans available, each intended for specific industries and situations.
2) Term Loans: A term loan is a lump-sum borrowed over a fixed period, usually between one to five years. Interest rates on term loans vary widely depending on several factors such as credit score, business experience, and more.
3) Equipment Loans: An equipment loan is a type of financing used to purchase equipment that your small business needs to operate. This could include office furniture, machinery, computers, and more.
4) Invoice Financing: Invoice financing allows you to access the money owed to you by your customers. You can sell an outstanding invoice to a lender for a fee, which gives you immediate access to the cash.
Advantages of Plano Small Business Loans:
1) No equity sharing: One significant advantage of Plano small business loans is that you don’t have to share equity with the lender. The lender only provides you with the money you need and doesn’t become a partner or take any ownership stake in your business.
2) Easy to qualify for: Compared to personal loans or credit cards, small business loans are simpler to qualify for. Traditional lenders require a perfect credit score; they check your income, review your tax returns, request collateral, and complete background checks before approving your loan application. Small Business Administration loans have different requirements, and most of them just look for your revenues, cash flow and the number of employees.
3) Lower interest rates: Plano small business loans come at relatively lower interest rates compared to credit cards and other forms of financing. Since the lender is taking less risk by offering a secured loan, the interest rate is comparatively reasonable.
4) Builds credit: If you’re just starting your small business, taking out a business loan can help establish your credit history, which can make it much easier to secure more substantial financing in the future.
Disadvantages of Plano Small Business Loans:
1) Collateral requirement: Depending on the type of loan, you may be asked to provide collateral to secure the loan. This means putting up something valuable like real estate or machinery as security against the borrowed amount. Not all small business owners may be comfortable with this requirement.
2) Stringent Requirements: Traditional lenders require some level of bureaucracy that takes time to compile documents, books and records requested. And getting approved by SBA affiliated banks and credit unions has its own processing requirements.
3) Limitations on use of funds: Once you receive the loan, there may be limitations on how you can use the funds. For example, you may not be able to use the funds for anything apart from buying equipment. You must carefully read your loan agreement to understand any restrictions on fund usage.
Plano small business loans have both their benefits and limitations, but overall they are worth considering if you need financing to start or expand the business. They come with lower interest rates, don’t require equity sharing and can help build credit history. Before making a final decision on where to secure financing, consider all other options available, apply when your credit meets the lender’s criteria, and also be mindful of the terms of repayment. With proper preparation, rigorous research, and guidance from knowledgeable experts, you can say goodbye to lack of capital forever.