Our goal at Lending Valley is to provide all small business owners access to the best loans possible for their business. You can rest assured we will get you the best rates in the market!
Maryland state in situated in the Mid Atlantic region in the Southeastern United States and it is the largest city Baltimore. The capital city of Maryland is Annapolis. As of 2016 the gross state product of Maryland in 2016 was $382.4 billion. As of the reports Maryland households are considered the wealthiest in the country with a median household income of $72,483. In 2013 Maryland had the greatest number of millionaires per capita and it has the lowest poverty rate in the United States. Maryland is a great state for doing business and small businesses has the chance to get different types of small business loans in order to start their business, expand the business or to buy different inventories and others.
How to get a small business loan in Maryland?
There are online businesses that can help businesses to meet a funder. This business looks at your paper works and credits and get you the best available funding options. Small business owners can seek for a loan starting from $10000 to $10 million depending on their needs.
Conventional Bank loans is the basic option for businesses to look for loan. Banks offer good rates and terms for businesses if the business qualify for traditional financing. This rates usually changes depending on the situation and the prospect of the business. The best applicants are only granted the loan. This loan can be used to but real estate, refinance real estate, equipment etc.
SBA loans are loans that are granted by the government and it requires a lot of paper works. Small business can seek for this small business loan and the lenders are not fully exposed and the Small Business Administration covers us the loss of the lenders.
Merchant Cash Advance is a type of working capital financing in which the business owner needs to sell parts of this future receivables to a company and the company can pay for the work that will be carried out in the next three to twenty-one months. This type of loans is good for small businesses that requires loan fast and business owners with a bad credit score.
Private business loans are basically unconventional loans and fintech loan which is provided by private investors and online lenders. This is a good option for acquiring a loan but they need a financing facility which has more flexibility than the conventional loans provided by the banks.
Asset Based Financing is a way for businesses to receive loans by having their assets as collateral. Small businesses can use their assets to gain funding. This includes the personal real estate of the owner, equipment, machinery and inventories.
Factoring is a type of alternative loan or funding which is asset-based lending and it involves the selling of a part of the unpaid invoices to a factoring company and get immediate financing in return for that. This companies mostly forward between seventy-five to ninety five percent of the value of the invoices and keep a small fee for themselves and forwards the remaining value after the balance has been paid.
Challenges faced by businesses in Maryland
Maryland has a high living cost and this might be a problem for small business owners. A high living cost means employees requires a higher wage rate. This might be difficult for new business owners.
Cost of land and real estate in high in Maryland. Rents of places being high is a big challenge for business owners in Maryland. This will require business owners to plan before setting up the business.
The taxation system is also a bit complicated and business owner can take professional help in order to deal with the taxation rules and regulations.
Another major issue that businesses in Maryland face is the lack of skilled workers requires for the job. This makes it difficult for business owners to carry out the business task. At time business owners need to train the workers so that the operations run smoothly.
Unsecured business loans in Maryland
Equipment leasing is a type of funding in which a business owner does not need to pay a full cost for an equipment rather the owner can simply lease an equipment or material. Businesses in Maryland has the opportunity to lease equipment rather than paying a full amount and this is very helpful for small business owners.
Business line of credit is a kind of small business loan that offers flexibility which usual loans does not offer. This loan can be offered by different companies privately within a short period of time and the companies will look how your business has been doing before offering the loan.
Term loan is another form of loan which is paid in instalments over a set period of time. This loan is also offered privately rather than the conventional way of getting a loan and the lenders will look how the company is doing before offering the loan.
Documents required to get a small business loan in Maryland
Although there are certain challenges that small business might face in Maryland there are a lot of opportunities for small businesses to succeed and expand their businesses. Small businesses require proper planning and a good business idea with proper management. And for small business loans there are several options available for business owners to get a fund in order to expand or to give a jump start to their business.