Business loans provide necessary funding for entrepreneurs seeking to start or expand a venture. Finding a loan with fair repayment terms and interest rates is important, but many companies also offer consulting services and other options to help your company succeed. Our partners at ConsumerAffairs researched the best business loans in Tallahassee so you can take your company to the next level.
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Entrepreneurs in Tallahassee typically seek business loans in Tallahassee to cover start-up costs or operational needs until their company is turning a profit. Business owners can also use loan funding for marketing or to purchase otherwise cost-prohibitive equipment or inventory.
Types of business loans in Tallahassee
There are a variety of business loans in Tallahassee, and the best fit for your company depends on your needs, how established your business is and the amount of funding you need. Some of the most common loan types are:
Term loans: Borrowers receive all funding in a lump sum payment and repay the amount according to the loan terms. These loans can either be paid off over a short term or a long term, depending on the amount.
Business line of credit: Similar to a credit card, businesses are given a credit limit and only pay interest on the funds they withdraw.
SBA loans: Best for business owners with a healthy business and strong credit, this loan is partially guaranteed by the U.S. Small Business Administration and offered through partnered third-party lenders. SBA loans have a rigorous application process.
Equipment loans: A loan specifically used to purchase equipment.
Microloans: Distributed by alternative lenders like nonprofits, these loans are typically under $50,000 and are meant to help new or small businesses in a variety of industries.
Applying for a business loan in Tallahassee
Lender requirements vary, but in general, applicants in Tallahassee are expected to show business and personal financials such as tax returns, bank statements, annual revenue and credit scores, as well as company legal documents.
If your company is new or you have bad credit, you may have trouble qualifying for traditional bank or credit union loans. However, you might find a lending partner by looking to online, alternative lenders. Many of these companies place a lower priority on your credit score, choosing instead to evaluate the strength and viability of your business.
Depending on your financial profile and type of business loan, you may be required to give collateral. In Tallahassee, this could be the real estate owned by your eatery in All Saints District or restaurant in Capitol Hill. It could also be equipment, such as your food truck at Railroad Square.
If you plan on taking out a loan with an extended repayment period, also known as a long-term loan, be prepared for a more thorough application process. Short-term loans provide quicker access to cash but require you to pay back the loan faster. Repayment terms can be as little as six months to 10 years or more. Equipment or real estate loans typically have longer terms, occasionally exceeding 20 years.
Business loan fees and additional charges in Tallahassee
When comparing loan offers, check for additional charges or costs. Lenders often have fees in addition to interest on a loan. The major types of fees associated with business loans include:
Origination fees cover the cost of processing the loan.
Prepayment penalties are sometimes incurred for paying off the balance of your loan before the completion of the agreed term.
Referral fees are charged by loan brokers for referring you to a lender.
Packaging fees cover the cost of preparing a loan application to a lender.
Some fees are taken out of the amount of funding you receive from the loan, so be clear on all charges and ask for loan amount large enough for its intended purpose after paying them.
Seek Business Capital's 2-minute application process and 24-hour funding approval provides business owners the money they need fast. Seek Business Capital does not require collateral, and funds can be used for any business need. Customers in Tallahassee love the personable staff and clear loan terms.
Imperial Advance's business loans offer revenue-based financing and cash advances based on future sales projections. Their in-house financing options and vast network of lenders help business owners get the best rates and loan terms. Tallahassee borrowers appreciate the quick and straightforward application process.
National Business Capital offers quick funding, alternative funding and traditional financing options to business owners. The company’s application is free and can be completed online, and customers may receive funding in as little as 24 hours. Tallahassee customers appreciate the knowledgeable customer service agents.
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