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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
Sunnyvale, the heart of Silicon Valley, is known for its bustling small business industry. Here, entrepreneurs from all around the world come together to start their own businesses and make a name for themselves. However, starting, maintaining, and expanding a business requires money. And that’s where small business loans come in.
In this article, we’ll delve into the ins and outs of Sunnyvale small business loans, exploring the different types of loans available, their requirements, and what to expect when you apply for one.
What are Small Business Loans?
Small business loans are financial tools used to provide funding to small businesses for a variety of purposes, such as starting or expanding their business or purchasing inventory or equipment. In essence, they provide vital capital to small businesses that enable them to achieve their business goals.
Small business loans come in different shapes and sizes, all depending on your needs as a small business owner. Some loans are meant to kickstart your business, while others provide working capital. Whatever your specific requirements may be, the good news is that there are many types of small business loans available to choose from.
SBA Loans
The Small Business Administration (SBA) is a government agency that offers small business loans to entrepreneurs through approved lenders. SBA loans offer competitive interest rates and flexible repayment terms, making them an attractive option for small business owners.
Pros:
- Competitive interest rates
- Flexible Repayment Terms
- No collateral required for certain loans
Cons:
- Long loan application and approval process
- Restrictive eligibility criteria
| SBA Loan Programs | |
|---|---|
| 7(a) Loan Program | The most common loan program, providing funding for business needs including working capital, equipment purchases and property acquisitions. Maximum loan amount is $5 million |
| Microloan Program | Small loans (up to $50,000) used for working capital or purchase of inventory, supplies or equipment. |
| CDC/504 Loan Program | Provides long-term, fixed-rate financing for major assets such as land and buildings. Borrowers receive up to 90% financing. |
Traditional Bank Loans
Traditional bank loans are another option for small business owners who want to secure financial assistance. These loans often have higher interest rates than SBA loans but they have simpler eligibility criteria and a shorter application process.
Pros:
- Shorter application process
- Easier eligibility criteria
Cons:
- Higher interest rates
- Collateral may be required
Merchant Cash Advances
Merchant cash advances are loans made using your credit card sales as collateral. The lender offers an upfront sum of money in exchange for a percentage of your daily credit card sales until the loan is paid back. These loans are a good option for businesses with fluctuating sales but come with higher interest rates.
Pros:
- Quick funding
- No collateral required
Cons:
- Higher interest rates
- Daily repayment requirements may impact cash flow
What are the Requirements for a Small Business Loan?
The specific requirements for a small business loan will vary depending on the lender and the type of loan you’re applying for. However, there are some general requirements that most lenders will ask for:
- A business plan outlining your goals and objectives
- Financial statements and projections
- Borrowing history, credit score and other financial information
- Collateral (for secured loans)
It’s important to note that each lender will have its own lending criteria. However, no matter what type of loan you’re applying for, having a solid business plan and strong financials is key to a successful loan application.
What to Expect When Applying for a Small Business Loan in Sunnyvale
Applying for a small business loan can be a daunting process, but knowing what to expect can make it easier. The following is an overview of what you can expect when applying for a small business loan in Sunnyvale:
- Choose Your Loan Type: Before applying for a loan, decide which type of loan best fits your needs. Different loan types come with different criteria, so it’s essential to research carefully before making a decision.
- Gather Your Documentation: Collect all of the necessary documentation required by the lender, including financial statements, business plans, tax documents, etc. Be prepared to answer questions about your business and provide additional documentation if needed.
- Fill Out the Application: Complete the application provided by the lender, being careful to fill out each section correctly and thoroughly. The more detailed your application is, the better your chances of getting approved.
- Wait for Approval: After submitting your application, wait for the lender to review it and determine whether or not you qualify for a loan. This could take anywhere from a few days to several weeks, depending on the lender and the type of loan.
- Receive Funding: Once you are approved for a loan, the lender will disburse the funds to your account. Be sure to use the funds wisely according to your business plan.
Testimonials and Reviews from Sunnyvale Small Business Owners
We spoke with several small business owners in Sunnyvale to get their opinions on small business loans:
“I received an SBA loan to start my business,” said Maria, owner of a local coffee shop. “The application process was long, but the interest rates were great. I couldn’t have started my business without it.”
“As a startup business, I had trouble securing a traditional bank loan,” said John, owner of a software development company. “I ended up going with a merchant cash advance, which allowed me to secure funding quickly. The higher interest rate wasn’t ideal, but it was worth it.”
Counterarguments About Small Business Loans
While small business loans can be an excellent source of financial assistance, there are some counterarguments to consider as well:
“Some small businesses may find themselves in a cycle of debt after taking out multiple loans,” said Mark, a financial advisor. “They may end up borrowing more than they can afford to pay back, which can lead to disaster down the line.”
“Small business loans can come with high-interest rates and fees,” said Joe, a lender. “Make sure you understand the terms of the loan entirely before signing anything.”
The Bottom Line
Small business loans can help entrepreneurs turn their dreams into reality with the right funding. There are plenty of options available in Sunnyvale, and choosing the right one depends on your business needs and circumstances. Before applying, research your options thoroughly and make a solid financial plan. With the proper approach, you can make your small business grow and succeed in the City of Silicon Valley.
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