Your Small Business Loan Guide for Businesses in Boston, Orlando, Pennsylvania, and New Jersey

Most small businesses and startups apply for a business loan to finance their activities and get working capital support.

Traditionally, businesses opt for bank loans to get funding. However, banks don’t easily accept loan applications and have strict requirements for trading experience and credit history. Thanks to private money lenders, companies can now get loans regardless of their credit history and experience.

Whitestone Fund is a leading private loan agency offering its services in Boston, Pennsylvania, Orlando, and New Jersey. We asked their agents to guide our readers through the business loan application process. Keep reading to find out.

What is a Small Business Loan?

A small business loan is a financing solution offered by a lender or agency to a company. Lenders charge service fees and interest in exchange for working capital that a business has to repay over a specific period.

The repayment terms, fees, and interest rates vary depending on your lender, business loan type, credit history, existing debt, and years in business.

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Things to Consider Before Applying for a Small Business Loan

The Amount of Money You Need

To select the right type of loan and lender, you have to determine how much funding your business needs. Do you need it to start your business, to expand it, to hire or train staff, or to purchase equipment or inventory? After knowing why you need it, make a list of things you’ll be spending it on. Do a little research to estimate the amount you need for these expenditures.

Which Type of Lender Will Be Ideal For You

Nowadays, it’s easy to find many lenders for your small business in Boston. You’re not tied to traditional banks and financial institutions. Private lenders with adequate experience in the industry are your best bet to get a loan without any hassles. They offer a wide range of loans depending on your requirements and have flexible repayment structures.

Before hiring a private lender in Pennsylvania, make sure to research them online. Read what others are saying about them and how legitimate their services are.

When Do You Need the Loan

Sometimes businesses want quick funding to overcome cashflow issues or to invest in something urgent. If you’re in a hurry, you can check out online lenders in Orlando. They have automated processes, allowing them to review applications quickly and provide business loans quickly.

These quick services do come at a higher interest rate. So if there isn’t an urgency, you can take your time to find the best private lender with competitive rates and flexible terms.

Review Your Credit History and Financial Statements

Before applying for a loan, make sure to review your credit history and gather other documents. Even if your private lender doesn’t have many requirements, they will review the relevant documentation, such as business plans, financial statements, bank statements, business permits, business tax returns, etc.

Types of Small Business Loans

Microloans

Microloans are equal to or less than $50,000. If you’re a small business or startup that needs to kick-start its activities, microloans can be best for you. This amount will help you acquire raw materials or inventory, make down payments on investments, and pay for expenses until you start generating an income. Microloans have lower interest rates and shorter repayment terms.

Line of Credit

A line of credit is another viable financing solution for businesses where they can borrow a certain amount of funds and pay interest on them. You can continue to borrow funds and repay them as long as you need unless you surpass your credit limit.

A business line of credit is ideal for those companies requiring short-term capital to utilize a growth opportunity, offset seasonal cashflow issues, meet an unexpected need, or bridge a gap.

Short-Term Business Loans

Short-term business loans are intended to fulfill a specific need to help your company grow. For example, if you want to expand your office from Orlando to New Jersey, you can apply for a short-term business loan to handle all the relocation expenses. This loan has a fixed term of a few months or years.

Merchant Cash Advance

A merchant cash advance (MCA) is a flexible funding option that is based on your business’s upcoming credit card sales. Typically, loans have fixed monthly repayments that owners sometimes have to pay from their savings (when the business isn’t doing well). With MCAs, there is no fixed payment, and you only pay a small percentage of your credit card sales on a daily, monthly, or weekly basis.

This type of loan is ideal for businesses that accept credit card payments from their customers such as retail and food businesses, and need quick funding. You don’t need a good credit score to qualify for it and the process only takes 1-5 days.

Get Small Business Loan Services from Whitestone Fund

If you’re looking for a reliable private lending firm to form a long-term relationship with, you can count on Whitestone Fund. They have leading private loan agents in Orlando, Boston, Pennsylvania, and New Jersey, who offer various financing loans designed specifically for new and small businesses.

Whether you need a quick cash advance or a short-term business loan, call their business loan agent now to get started.

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About the Author

Patricia F. is a seasoned loan agent in New Jersey affiliated with Whitestone Fund. She writes helpful guides to assist new businesses with financial challenges. In her spare time, she loves baking or going camping.