Business Loans in Georgetown, Tennessee: A Comprehensive Guide
Starting and running a business requires money, and there are times when the profits may not be enough to sustain it. Business loans are a popular and legal way to obtain funds for your business. Whether you are trying to start your venture, expand, or deal with an unexpected financial hit, a business loan can be a handy solution. Georgetown, Tennessee’s business community is no stranger to these loans.
Types of Business Loans in Georgetown, Tennessee
Before settling on a loan product, it’s essential to understand the different types of business loans available in Georgetown, Tennessee. Here are some of the most common:
- Term Loans: These are traditional loans with a fixed amount that must be repaid over a set term (usually three to five years). During that time, you’ll make monthly payments that include the principal and interest.
- SBA Loans: The Small Business Administration (SBA) provides several loan programs for small businesses. These loans are partially guaranteed by the government, making it easier for borrowers to secure funding even with less credit than what banks usually demand.
- Lines of Credit: These loans provide flexibility by letting you borrow money up to the credit limit whenever you need it. You’ll only pay interest on the amount you withdraw, not the full credit line.
- Invoice Factoring: If your business has outstanding accounts receivable or invoices, you can sell them to a factoring company in exchange for immediate cash. The factoring company may hold a fee or percentage of the value of the invoices.
- Merchant Cash Advances: This kind of financing is suitable for companies that don’t qualify for traditional loans. Instead of repaying a loan by direct debiting your account monthly, you offer a percentage of your daily debit/credit card transactions until you repay the amount plus fees.
Where to Get Business Loans in Georgetown, Tennessee
There are several lenders to turn to when seeking a business loan. Bank and credit unions are traditional sources, but they may have more stringent qualification requires. Recently, more online lenders have emerged in the business lending space. They offer loans with competitive rates, often with faster turnarounds and more flexible terms. Some popular sources of business loans in Georgetown, Tennessee include:
- TheGuaranteedLoans – TheGuaranteedLoans offers a connector service that connects businesses with potential lenders who are interested in providing them with loans.
- Regions Bank – a traditional bank with customizable and straightforward business loans.
- First Horizon Bank – another regional bank offering traditional and SBA loans.
- OnDeck – popular online lender offering fast fund delivery, various kinds of loans, and accepts lower credit scores than banks.
What to Consider When Getting a Business Loan
Before getting a loan for your business, it’s crucial to weigh your options and understand what taking on debt would entail. It would be best if you considered the following :
- Interest rates: The interest rate is the amount a lender charges you for using their funds. Interest rates can vary significantly between lenders, so it’s essential to shop around for the best rates.
- Repayment terms: Repayment terms refer to how long the loan will last, how much you’ll pay back, and how often payments are due. Longer terms balance monthly payments, but it will cost you more over time due to the interest.
- Collateral: Some loans require collateral to secure the loan. Be mindful that could be lost if you fail to repay the loan. Eligible businesses without collateral can seek unsecured financing.
- Loan amounts: Ensure that the amount you’re borrowing matches your business needs. Overborrowing may cripple your business with costly monthly payments.
- Fees: Loan fees come in different forms, including application fees, origination fees, and prepayment penalties. Ensure you read and comprehend every fee to be factored into your loan calculations.
Insightful Business Loans Facts and Stats of Georgetown, Tennessee
- In Tennessee, small businesses, or those with fewer than 500 employees, comprise more than 99% of the state’s businesses.
- There were over 17,000 small businesses in the Hamilton County of Tennessee alone in 2020.
- In 2020, the state of Tennessee approved more than $280.8 million in Small Business Administration loans, supporting more than 4,900 projects.
- The average Small Business Administration loan in Tennessee was $62,430 in 2018.
- In 2020, The State of Tennessee lifted its interest rate caps on payday, flex, and installment for any businesses with more than $500,000 and meet another approval criterion, allowing them to receive larger loans for their business.
Apply Now with TheGuaranteedLoans
Whether you’re in the early stages of starting a business or working to expand an established enterprise, securing financing is crucial. TheGuaranteedLoans offers an online connector service that makes it easy to connect with potential lenders in Georgetown, Tennessee, and across the U.S. Fill out our online loan application form today and explore your funding options!
Disclaimer: TheGuaranteedLoans is a connector service and not a direct lender. It works with a network of lenders willing to offer loans to qualified borrowers. Loan requests subject to approval. TheGuaranteedLoans may receive compensation from its lenders for services rendered.