Illinois is a great state to start or expand your business, but as with any endeavor, it takes money to make money. Fortunately, there are plenty of options available for business owners seeking funding.
Many banks in Illinois offer loans specifically designed for small business owners. These loans often have lower interest rates than others but can be more challenging to qualify for.
If you don't qualify for a traditional bank loan, consider working with an alternative lender such as Business Loans Illinois. We offer various financing options, including lines of credit, SBAs, medical business funding, commercial funding, working capital, term loans, start-up loans, and invoice financing.
Many hassles come with owning and operating a business in Illinois, but getting the money to do so does not have to be one of them. However, there are plenty of questions associated with business funding, and the most important of all is sure to be: Where is the best place to get business loans in Illinois?
A small business loan is money lent to a qualified business or startup by an online lender, a traditional bank, or a credit union. This money is only lent if the company applies, is approved for the loan, and funding must be paid back.
First, we’ll provide a detailed overview of how small business loans work. We won’t stop there; we’ll also answer several frequently asked questions about the process and share our reasoning behind choosing Business Loans Illinois as your funding source.
The first step to making the all-important decision of getting proper funding for your company is understanding what a business loan is and how it works. With that in mind, we’ll summarize what they’re used for. A business owner can benefit from getting a small business loan in several different ways, such as:
Other cases may be remodeling costs, startup costs, everyday expenses, purchases of new inventory, franchising your business, buying a business, or simple advertising and marketing costs. Most lenders require the person taking the loan to let them know how the funds will be used.
Small business loans can be offered in one lump sum or a line of credit. The money must then be paid back over a specific period in addition to the interest and fees determined by the lender. It is important to note that some loans are secured, while others are unsecured.
If a business loan is secured, the lender will require the loan-borrower to provide a type of collateral. Collateral is something valuable that the lender is allowed, by law, to repossess if the parties borrowing the money fail to repay what they owe. This can be equipment, sums of cash, investment items, and even real estate. That being said, what sets us apart from our competition is that we do not require proof of use or collateral like most lenders.
Are you looking for business funding without proof of use and no collateral? Contact us today.
To best select the loan you’ll need, it is essential to understand the most common types of business loans. As we’ll mention below, any worthwhile lender must offer several of these for potential loan borrowers to find one that best meets their business’s needs.
1. SBA Loans
An SBA loan is a type of loan that the United States Small Business Administration backs up, otherwise known as the SBA.
This type of loan is significant because it guarantees a part of the money businesses borrow. This means the loan lender is in for less risk and might extend the money for generally unapproved companies. That being said, SBA loans usually have competitive interest rates and long, 5-year repayment terms for well-qualified people. SBA loans are known for requiring tedious qualifications and sometimes require many months before notifying borrowers that they qualify.
2. Working Capital Loan
Working capital loans come in the form of a line of credit, a term loan, or invoice factoring, which is short-term and is often used for businesses that can’t cover day-to-day operating expenses. Usually, a seasonal business benefits from working capital loans the most during the slowest parts of its operating terms.
Terms for this type of loan vary and are usually dependent on specific financing types and risks that are personal to the borrower as an individual. The loans typically range from $25,000 to $5 million.
3. Term Loan
A Term Loan is ubiquitous and is repaid over one set period after being taken from an online lender or traditional bank. Businesses that have only been operating for a short time often get first dibs at approval for these loans when applying through an online lender.
This is thanks to the more flexible requirements of the qualification process. The term for repayment can be as long as ten years, and the annual revenue, history, and worthiness of credit lines determine whether or not a business has more stringent repayment terms.
4. Business Line of Credit / Card Stacking
Business Credit stacking is constructing a sequence of credit lines that enables the borrower to access more extensive credit lines. Promptly accessing the credit lines accelerates building your enterprise, bolsters your rapport with the bank, and confers perks such as interest-free lending for up to 24 months.
Now that we've covered exactly what a small business loan is, how to repay it, and some of the most common types of business loans offered, we'll answer a few more critical questions in greater detail.
The first step to successfully getting a small business loan is choosing the type of funding you need for your business. If you're looking for money for a large purchase or even an expansion of the company, you'll probably need a term loan or specialized funding. If, on the other hand, you need an infusion of cash for a day-to-day expense, the best option is usually a business line of credit. Unsure? Contact us today for a free consultation.
Next, you must ensure your business qualifies for a business loan. Look for your credit score, a report you can get from major credit bureaus such as Experian or Equifax or the issuer of any credit cards you may own.
If you're an established business, you must be able to qualify, even for online loans. It will also be essential to note how long your business has run. You'll have little chance if it is less than six months. You'll also need a minimum monthly revenue for most lenders to consider your application, ranging around $10,000+.
Finally, don't forget to plan for your loan repayments. It would be best if you were sure you could produce around 1.25 times your total expenses in your business' revenue, including the amount you will repay for the loan. Otherwise, you may find yourself in deeper financial trouble after borrowing the money than you were before.
Now, you can compare the different lenders available to you. We'll be sure to provide our recommendation in the sections below, but remember, you are looking for the loan terms that best apply to your business. Then, all left to do is follow the pre-qualification process for the loan in question on our website.
For starting a business, a specific business loan category is called a "startup loan!" These usually range between $25,000 and as much as $50,000. If you're wondering, "How much of a business loan can I get to start a business?" you should plan for this range…however, if you've got large enough personal income, you could be funded for upwards of $1M+.
According to most lenders, the credit score you're looking for to get a startup loan varies depending on your loan type. For example, if you borrow from a credit union or a traditional bank, you'll usually need a credit score of 700 or even higher.
However, if you hope to get an SBA or working capital loan, you'll only need a credit score of around 550. That being said, it will be essential to bolster this credit score by having impressive business credentials, established income, and being in business for several years.
Now that we understand what a business loan is and the many benefits of getting one, your next step is to get pre-qualified. Taking our 3-minute pre-qual assessment will determine which type of loan will meet the needs of your business. We’ve concluded that Business Loans Illinois is the most reliable, hassle-free company to select when looking for a business loan.
Each of these categories of benefits is the criteria we used to determine the best place to get business loans. We passed with flying colors, and we’ll show you exactly how by going into a little more detail in each category below:
Excellent Client Service
The client service at Business Loans Illinois is outstanding. When you’re in a position to need a loan to get your business off the ground or over a problematic financial hump, there is no substitute for a friendly and willing loan specialist.
Contacting the people at Business Loans Illinois is easy and an all-around pleasant experience. Associates are willing to walk clients through the simple application process, offer consultation, and quickly answer any questions.
It’s plain to see that Business Loans Illinois hires only the most qualified experts to provide the best service, as well as the most reliable financial lending, to their clients.
As previously mentioned, working through the financial hurdles of operating, owning, and running a successful business, big or small, is hard enough. The last thing that many small business owners need is a long or complex application process when looking for a small business loan in Illinois. Many companies have an application process that is not only complex at face value but must be navigated alone.
Business Loans Illinois offers excellent client service to help you navigate any trouble with the application process. However, the process itself is so simple that the situation is unlikely. Additionally, the loans are quickly processed and received by clients within 72hrs, if not sooner.
We make it simple to save yourself the hassle of a difficult or strenuous mound of paperwork and a lengthy application process!
Multiple Loan Types
Loan types should be available to a lender in many shapes and sizes. This is because your needs can come in that same variety when owning a small business! Because of this, we prioritize having several different loan options so that potential clients can compare them and see which one is right for them.
This is another category of advantage that Business Loans Illinois knocks out of the park. Their loan types are not limited or small, and potential clients can gather all the information they need to make a wise decision and plan for their future, as well as several different repayment plans to go along with the loan they choose.
Business Loans Illinois knows that a one-size-fits-all loan or one or two options won’t always cut it. The more variety offered to small business owners, the more freedom they will feel in making such an important decision for themselves and their business.
To sum up, everything we’ve learned, the best option for getting funding is with Business Loans Illinois. Not only will the helpful loan associates answer any questions you may have even after understanding all of the inquiries mentioned above, but we will also make sure your process is quick, easy, and efficient!
Because of the popularity and excellent reputation Business Loans Illinois has earned over the years, there is no reason why you should not jump aboard. If you’re looking for a hassle-free process, contact us today!