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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 are the backbone of any economy. They possess immense potential to contribute to the economic growth of a region, but often lack access to the capital needed to grow and expand. If you are an entrepreneur in Wichita, you understand the struggles of trying to secure funding for your small business.
Fortunately, there are several options available for Wichita small business owners who need financing. From traditional bank loans to government-backed programs, there are many resources that can help your small business grow and thrive. In this article, we will explore some of the best options for securing small business loans in Wichita, along with their pros and cons.
Traditional Bank Loans
One of the most common routes entrepreneurs take when seeking financing for their small businesses is applying for a traditional bank loan. This type of loan is offered by banks and credit unions, and requires the borrower to meet specific qualifications in order to be approved.
– Lower interest rates: Traditional bank loans usually offer lower interest rates compared to other types of loans.
– Established institutions: Banks and credit unions have been around for centuries and have established themselves as trusted lenders.
– Potential for larger loans: With a higher borrowing capacity, you may be able to secure larger loans to help grow your business.
– Strict requirements: To qualify for a traditional bank loan, you will need to have strong credit, collateral, and a sound financial history.
– Long approval process: The approval process for a traditional bank loan can take anywhere from weeks to months, which can be frustrating if you need funds quickly.
– Personal guarantees: Banks often require personal guarantees, meaning you will be held personally liable if your business is unable to repay the loan.
Government-Backed Small Business Loans
The U.S. Small Business Administration (SBA) offers a variety of loan programs designed specifically for small businesses. These loans are not actually funded by the SBA; rather, the agency acts as a guarantor, providing a guarantee to the lender that repays a portion of the loan in case of default.
– Lower down payment requirements: SBA loans require a lower down payment compared to traditional bank loans.
– Longer repayment terms: The repayment terms for SBA loans are longer, giving you more time to pay back the loan.
– Reduced risk to lenders: Because the SBA provides a guarantee, lenders are more willing to take a chance on funding your small business.
– Strict eligibility criteria: SBA loans are only available to businesses that meet specific criteria, such as being a for-profit entity and operating within the U.S.
– Long application process: Applying for an SBA loan can be a time-consuming process, with approvals taking several weeks or even months.
– Personal guarantees: Similar to traditional bank loans, SBA loans often require personal guarantees, making you personally liable if your business is unable to repay the loan.
In recent years, alternative lenders have emerged as a viable option for small business owners who need funding quickly. These lenders offer loans with less strict requirements, but at higher interest rates than traditional bank loans.
– Quick approval and funding: Alternative lenders offer faster and easier approval processes, giving you access to funds when you need them.
– Fewer requirements: Alternative lenders may require less paperwork and have fewer minimum qualifications than traditional bank loans.
– Flexibility: Alternative lenders may offer more flexible repayment terms, allowing you to customize a payment plan that works for you.
– Higher interest rates: The interest rates for alternative loans are typically higher than those of traditional bank loans.
– Hidden fees: Some alternative lenders may charge hidden fees, which can drive up the cost of borrowing.
– Increased risk: Because alternative lenders usually don’t require collateral or personal guarantees, they assume greater risk by lending money to your small business.
No matter what type of small business you own, securing funding is crucial to your success. Wichita entrepreneurs have several options available to them when it comes to acquiring financing. We’ve highlighted some of the most popular and effective options above, but there are many more out there.
In order to give your small business the best chance of success, it’s important to do your research and find the loan option that works best for your specific needs. Whether you choose a traditional bank loan, an SBA-backed loan, or an alternative loan, having access to capital can help you grow and thrive as a small business owner in Wichita.
Table 1: Loan Options
| Loan Type | Pros | Cons |
| ———————| —————————————————————————————————- | ———————————————————————————————————————–|
| Traditional Bank Loans| | |
| | Lower interest rates | Strict eligibility criteria |
| | Established institutions | Long approval process |
| | Potential for larger loans | Personal guarantees |
| Government-Backed | Lower down payment requirements | Only available to businesses that meet specific criteria |
| Small Business Loans | Longer repayment terms | Long application process |
| (SBA) | Reduced risk to lenders | Personal guarantees |
| | | |
| Alternative Lenders | Quick approval and funding | Higher interest rates |
| | Fewer minimum qualifications | Hidden fees |
| | Flexibility | Increased risk |
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– For more information on Small Business Administration (SBA) loans visit: https://www.sba.gov/loans-grants/see-what-sba-offers/sba-loan-programs/general-small-business-loans-7a/
– Learn how to apply for a traditional bank loan by visiting: https://smallbusiness.chron.com/apply-traditional-bank-loan-1782.html
– Check out alternative loan options at: https://www.entrepreneur.com/article/301413
– “Thanks to the SBA, my small business was approved for a large loan that has helped us grow tremendously.” – Mark T., Wichita
– “Applying for a traditional bank loan was overwhelming at first, but once I met their strict requirements I was able to receive a great rate for my small business.” – Natalie D., Wichita
– “Having access to quick funding from an alternative lender allowed me to make the necessary improvements needed to increase revenue for my small business.” – Jason B., Wichita