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!
Oregon is located in the Pacific Northwest region on the West Coast of the United States. The country had median household income of about $61,000 in 2015 and is the 25th wealthiest state by GDP. Due to the country’s diverse landscape, the agricultural sector has major contribution to the state’s economy. Oregon new businesses have helped in the massive economic growth for the past few years. Small businesses cover about 97.6 percent of all businesses in the state along with impressive employment rate. The state has provided a good economic climate for businesses to thrive and during their struggles, Oregon business loans have come in handy.
How can I take a business loan in Oregon?
A massive portion of Oregon’s economy is dependent on the state’s small businesses, as they are in such huge numbers. Thus, the companies always need to make sure to keep their financing secure. There are different lending options that any Oregon business can choose from.
For the best rates and terms, a small business should go for conventional Bank Loans. They are mostly used by Oregon small businesses to take hold of other businesses, purchase commercial real estate, refinance a business mortgage, help with expansion financing of other businesses, and offer small businesses working capital. Term loans and business lines of credit are the most common types of loans offered by banks in Oregon. The rates vary from 5-8% with 3-25 years term and a funding time of 7-60 days.
Small Business Administration’s (SBA) lending program is a traditional loan provided by conventional lenders in Oregon with rates varying from 6 to 8 percent for 3 to 25 years term and a funding time of 7 to 45 days. SBA loans are backed by the government. This means, when a Oregon small business defaults, an SBA loan reduces the lender’s exposure to losses as the government helps to compensate for most of their losses. This is why SBA lenders provide this service especially for small businesses as it minimises the risk. However, being controlled by the government, the process requires a lot of paper work.
Private business loans are offered by non-bank lenders. Lenders for this type of loan can include fintech lender, marketplace lenders, cash advance funders, equipment leasing companies, factoring companies and private business. Private lenders can also include investors. Private loans can be a good choice as it allows much more flexibility unlike conventional lenders. Private business loans in Oregon offer rates ranging from 1 to 3 percent for term of 1 to 2 years with a funding time of 7 to 14 days.
When a small business does not have enough fund for a conventional bank loan, it looks for alternative financing options. Alternative business loans offer better rates and enough terms for working capital objectives and require much less paper work than any conventional bank loans. Thus, the process is much faster than any regular bank loans, and funding can be completed within a week.
Asset based loans help the Oregon businesses to legalize their assets on the company’s balance sheet. Assets such as buildings, land and other commercial property, along with account receivable, inventory and equipment and machinery can be legalized and utilized for an asset-based loan.
Invoice Factoring is a business-to-business transaction that allows a company the potential to leverage unpaid 30, 60- and 90-day invoices to gain specialized short-term business financing before the customer actually pays the invoice. Oregon small businesses receives much needed working capital to help with cash-flow at a reasonable rate.
Cash advances are not actually any kind of business loans as they are business-to-business transactions where the small business sells a small portion of their future revenue to a much more established company in expectation of more efficient profit. This makes it possible for a Oregon small business to get funded with a merchant cash advance even if they have a bad credit. Cash advances include long-term merchant cash advances, bad credit cash advances, additional position cash advances, and advances used for consolidation, which are repaid by either making a remittance to the cash advance funding company, or by having a set amount automatically sent to the funder using Automated Clearing House transaction via the business’s bank account.
Although Oregon’s economy is booming, the state’s businesses are facing particular challenges. The new business owners in the state are caught off guard by the high taxes linked with initiating a small business. This has kept the business owners infuriated on the tax system. Moreover, the cost of living in Oregon is increasing along with the decrease in personal income. With such high expectations from employees, due to the increasing number of small businesses, a lack of skilled workers has prevailed.
Unsecured Business loans in Oregon
Business lines of credit is a kind of small business loan that offers flexibility which usual loans does not offer. This loan is provided by banks in Oregon with varying rates.
New or used business equipment can also be financed in many ways through equipment financing. There are instances when small businesses find leasing equipment much better than buying them. By doing so, the Oregon company won’t be obliged to pay the full-price for the equipment beforehand. Moreover, they will enjoy updated equipment in the following years.
Term loan is another form of loan which is paid in instalments over a set period of time. Term loans can also be used as acquisitions, and consolidations and refinancing business debt. This form of loans is offered by conventional lenders in Oregon.
Documents required to get a small business loan in Oregon
– 1-page application
– 3 months of bank statements
Oregon has created a culture for new small businesses to start and this enhanced the economy of the state by a great margin. The government is looking into issues that are burdening new businesses and providing a pleasant climate for companies to thrive with all types of financing options.