Small Business Loans

My business keeps growing, so I’m currently on the lookout for a loan to help things along and purchase capital equipment. So far I’ve looked into a few different options:

  1. OnDeck. After interacting with them a bit, what they offer is a line of credit with high interest rates. It looks like I’d pay way more for this than I wanted to.
  2. My bank. They do offer SBA 7a loans. They wanted a bunch of information up front before they’d even talk to me about what my chances of getting a loan were or the interest rates. The interactions in person and via e-mail with the loan officer were odd, like they really didn’t want my business for some reason and couldn’t tell me why. So this one is on the back burner for now.
  3. An SBA 504 loan. This has to be done through a SBA Certified Development Company (CDC). Most of the CDCs in the Atlanta area listed on the SBA website either don’t answer their phone or the phones lines are disconnected. I finally did get through to Capital Partners, Inc, and was able to get a little information. The 504 loans look roughly comparable to the 7a, with higher fees but a less variable interest rate. I may yet pursue this route.
  4. An SBA 7a loan through SmartBiz Loans. This seems like the most productive route so far. They have an entirely online application process, and have been very good about helping me get things together through e-mail. Fingers crossed.

Another area which I may yet look into is vendor financing. I’m still waiting on the vendor to get back to me with a quote though. There’s also the possibility of an unsecured personal loan, for which I get solicited in the mail fairly regularly.

I’ve heard, though, that the best way to make sure you get a loan is to make friends with a banker.

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