Business Loans: A Guide for Entrepreneurs in Ward, Colorado
Starting and running a business can be a daunting proposition, filled with challenges and uncertainties. One of the biggest hurdles faced by entrepreneurs is financing. With business loans available from multiple sources, you have many options, and it can be hard to know where to begin. In this comprehensive guide, we’ll cover everything Ward, Colorado business owners need to know to get the funding they need to grow their businesses.
What is a business loan?
At a basic level, a business loan is a sum of money that a business owner borrows from a lender. The loan is paid back with interest over time, usually in the form of weekly or monthly payments. Business loans are usually secured by collateral, such as the business owner’s personal property or equipment owned by the business.
Types of Business Loans
There are several types of business loans available in Ward, Colorado. Here are the most popular options:
- Bank loans: Banks offer both secured and unsecured business loans. Secured loans require collateral in the form of property or equipment, while unsecured loans do not. Typically, banks require the business owner to have a good credit score and a solid business plan. Bank loans have low-interest rates, but the application process can be time-consuming and challenging.
- Small Business Administration (SBA) loans: The SBA works with lenders to guarantee a portion of the loan amount, reducing the risk to the lender. This allows the lender to extend better loan terms to the borrower, including lower interest rates and longer repayment periods. SBA loans are ideal for businesses with a reasonable credit history and a solid business plan.
- Equipment loans: This type of loan is a great option if you need to finance equipment for your business. The lender uses the equipment as collateral for the loan, so it’s less risky for the lender. Interest rates for equipment loans are typically lower than other types of business loans.
- Alternative loans: Alternative lenders, such as online lenders or peer-to-peer platforms, offer business loans to those who aren’t eligible for traditional bank loans. Alternative lenders usually have more lenient credit requirements, but they charge higher interest rates than banks or SBA loans.
How to Apply for a Business Loan in Ward, Colorado
To apply for a business loan in Ward, Colorado, you’ll need to take the following steps:
- Prepare your documentation: Before you apply for a loan, you’ll need to prepare documentation that your lender will need. Common documents include your business plan, tax returns, financial statements, and a statement of collateral (if required).
- Research your options: As we’ve noted, there are several types of business loans to choose from. Research your options to determine which option is best for your business.
- Find a lender: Barlow, Independence Financial, Blue butterfly, all great lenders, etc. Once you have a list of potential lenders, research their terms and interest rates to determine which lender is the best fit for your business. Don’t forget to check online lenders and platforms, which could potentially save you money in interest rates and fees.
- Apply for the loan: Submit your application to your chosen lender. Be sure to include all the required documentation to increase the likelihood of approval.
- Wait for approval: Wait for the lender to review your application. Depending on the lender and the type of loan you’re applying for, the approval process could take anywhere from a few days to several weeks.
Interesting Facts About Business Loans in Ward, Colorado
- According to a 2019 report by the Small Business Administration, there are over 630,000 small businesses in Colorado, 90% of which have fewer than 20 employees.
- The average loan amount for an SBA 7(a) loan in Colorado is $365,000.
- Colorado businesses took out more than 83,000 SBA loans totaling over $16 billion between 1953 and 2018.
- Over 27,000 small businesses in Colorado received $5.4 billion in COVID-19 relief loans in 2020.
- Colorado’s unemployment rate fell to 6.4% in December 2020, down from a peak of 12.2% in April 2020.
Apply Now
As a connector service, not a direct lender, TheGuaranteedLoans acts as a facilitator, connecting potential borrowers with a wide network of lenders. We have a simple online application process that takes only a few minutes to complete. Visit our website today to apply for a loan and find the funding you need to grow your business.