Massachusetts Small Business Representative 1.5 million state employees, it’s clear: Massachusetts entrepreneurs are a force to be reckoned with!
But that doesn’t mean they don’t need a little help sometimes. Whether it’s starting a new business or expanding an existing one, small business financing can give them the help they need.
How a Small Business Loan Can Help Your Massachusetts Small Business
Small business owners sometimes struggle unnecessarily during tough times. They assume they have to start and are reluctant to accept financial assistance because they don’t want to go into debt.
But there is smart debt: if you take out a small business loan to invest in your business and then increase your income, you can easily repay the loan. That small amount you pay in interest can help create profits many times what you paid!
Options for Small Business Loans in Massachusetts
There isn’t just one type of small business loan for Massachusetts businesses. With so many diverse options, there is sure to be one that suits your needs.
If you are looking for capital to expand your established business and have excellent credit, financial institutions such as banks, credit unions and some online lenders offer low interest loans with long repayment periods.
The United States Small Business Administration offers several low-interest loan programs, including the 7(a), SBA 504, SBA Express, and microcredit programs. Learn more about SBA.gov.
If you’d rather have access to cash when you need it rather than receiving a lump sum of cash all at once, a business line of credit gives you access to cash that you can borrow, repay, and borrow again.
Merchant Cash Advance
If you don’t have good credit, you may still be eligible for a merchant cash advance, which is an advance on future credit card sales. Your refunds are automatically taken from your credit and debit card transactions daily or weekly, plus an origination fee.
Business credit cards are useful when you need to make business purchases like office supplies or gas for the company truck. You can add authorized users to your cards if you have employees who need to make purchases on behalf of the company.
Short term loan
Another option if you have poor credit or your business is new and hasn’t yet established a credit history is a short-term loan. These have high interest rates and short repayment periods, but they can get you the cash you need in no time.
How to Qualify for a Small Business Loan in Massachusetts
Lenders may vary slightly in what they require for loan applicants, but most will look at your personal and business credit scores to determine eligibility.
The higher your scores, the more good offers you will be entitled to. If you don’t have established business credit, find out how to establish small business credit to get even more.
Other lenders, such as those who offer short-term loans or merchant cash advances, will look at criteria other than credit, such as your annual income.
How to Apply for a Small Business Loan in Massachusetts
If you apply for financing from an online lender, chances are that the loan application will be quick and accurate. If you are applying for a bank or SBA loan, you may need to go to a branch to apply, and you may need to provide documents such as your profit and loss statement as well as tax returns.
Either way, you’ll be asked questions about your business, such as its name, industry, length of time it’s been in business, and annual revenue. You will also be asked for personal information, such as your address and social security number.
After submitting your loan application and being approved for a loan, you will receive a loan agreement with loan terms, including interest rate, maximum loan amount and repayment period. After signing the loan agreement, the funds will be deposited into your bank account.
Small business resources to help you get financing
If you’re applying for a loan that requires a business plan and you don’t have one, there are several great resources for small businesses in Massachusetts to help you.
the Network of Small Business Development Centers has offices in Boston, Amherst, Salem, and many other cities, and offers several technical assistance programs as well as workshops and procurement assistance.
the Women’s Business League is another great resource if you are a female entrepreneur. It offers business-related events and courses.
Uses for a Small Business Loan in Massachusetts
So how can you, as a Massachusetts business owner, use small business loans? There are so many ways!
If your business, like many, goes up and down throughout the year, access to a line of credit could ensure you have working capital to get you through the slow times.
If you’re in the growth phase, you could benefit from some cash to help you open a new location, hire employees, or place larger inventory orders.
A small business loan gives you the opportunity to help your existing business thrive.
Rate this article