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• March 31, 2023
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Running a small business can be a tricky endeavor, especially when it comes to financing. You need that extra capital to keep your operations going, but asking for help from traditional big banks isn’t always the easiest route. However, there is a helping hand that business owners in Shreveport can take advantage of. In this article, we’ll dive into the world of Shreveport Small Business Loans and explore their benefits, drawbacks, and everything else in between.

What are Shreveport Small Business Loans?

Shreveport Small Business Loans are designed to assist entrepreneurs in the area to finance or expand their businesses. These loans come in different amounts, repayment terms and interest rates depending on the lender, but they all have a common goal: to help local businesses thrive.

The Benefits:

Getting a local loan comes with several benefits.

Flexibility

When dealing with the lenders in Shreveport, you’re sure to get tailored loan programs that fit both the business owner’s requirements and the state’s stringent lending laws.

Quick Disbursement of Funds

Local lenders process loans faster, usually within days or weeks, unlike larger institutions with tons of red tape and long waiting periods.

Low Interest Rates

Shreveport locals have access to CPNLA (Community Partners for Affordable Loans), which offers low-interest loans available for up to $50,000.

Networking Opportunities

Small business loans providers in Shreveport often hold networking events and other workshops to help the people they lend money to create connections and establish helpful relationships with other entrepreneurs.

Supporting Local Economy

By borrowing from local lenders, business owners feed cash flow back into the community, helping to create jobs and fuel economic growth.

The Drawbacks:

There are disadvantages to taking out small business loans in Shreveport, including:

Stringent Applicant Criteria

Small businesses need to meet specific criteria to qualify for loans – criteria that can be challenging to satisfy.

Higher Default Rates

Local lenders usually lend to new or underfunded businesses that are more susceptible to defaulting on their loans. As a result, borrowers have higher interest rates.

The Different Types of Shreveport Small Business Loans:

SBA Loans

The Small Business Administration has numerous programs that offer business owners affordable financing options, such as the 7(a) program. This program is ideal for small businesses that want to acquire equipment or buildings, refinance their debt, and for general business acquisition or working capital.

Term Loans

These loans are usually unsecured, offering a lump sum at the start of the term. The interest rate is fixed, paid along with the amount borrowed over an agreed-upon period. Term loans can range from months to up to 20 years in repayment term.

Equipment Financing

This loan is specifically designed to help businesses secure equipment, vehicles and other essential tools. This type of financing offers flexible packages with favorable interest rates that respond to specific venture needs.

Merchant Cash Advance

Merchant cash advances offer an advance on future credit card sales. As a result, there are no scheduled monthly payments, though interest rates may be higher than most other small business loans.

The Loan Application Process:

When applying for a Shreveport Small Business Loan, you’ll go through these steps:

1. Prequalification

Applicants fill out a form online or in person, providing personal details about the business and the purpose of the loan requested. Lenders use this information to assess the applicant’s eligibility.

2. Application

If prequalified, applicants proceed to the application process to access funding options available to them. This step requires more information such as financial statements and tax returns, so lenders can verify the credibility of the application.

3. Approval and Funding

Upon successfully completing Step 2, the lender approves the application, and funds are released to the applicant’s account.

What Makes a Great Small Business Lender?

Choosing a lender can be a daunting task, but here are the key factors to consider before making your choice:

Transparency

Your lender should be transparent about their lending process, their terms and conditions and be willing to answer any questions you may have.

Flexibility

A lender should offer options that best fit the needs of the specific applicant, rather than offering a one-size-fits-all solution.

Credibility

Choose a lender who has a track record of providing excellent customer service, with low-interest rates and helpful repayment terms.

Experience With Your Industry

Your lender should understand your industry and its financing requirements. This ensures the lender offers a loan option customized to your business’s specifics.

In Closing:

Shreveport Small Business Loans can provide entrepreneurs in the area with the financial assistance they need to make their aspirations a reality. However, it’s imperative to do thorough research and choose the lender that aligns best with your business goals. Small Business Loans are a stepping stone to growth for many businesses, but only when they’re correctly used. If you properly weigh the benefits of each type of loan against the drawbacks, then you can take advantage of the many opportunities available to grow your small business!

So don’t wait any longer; apply today, and let your business succeed!

Sources:

1. https://www.sba.gov/
2. https://cpnla.cloverdonations.com/why-choose-us/
3. https://www.forbes.com/small-business-financing/
4. https://www.capitaland.net/business-loans/
5. https://fundera.com/business-loans
6. https://quickbooks.intuit.com/small-business-loans/
7. https://www.entrepreneur.com/article/274025