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!
Tennessee is located in the south-eastern region of the United States. Tennessee’s economy was initially dependent on agricultural sector which has now transitioned to a more diversified economy. Besides agriculture, there are industries like manufacturing and tourism contributing to the state’s economy. Small businesses in Tennessee have also experienced growth due to relatively low tax and cost of living. Tennessee small businesses are encouraged by the stable economy and low costs to initiate a small business. Moreover, Tennessee has reach to multiple large markets. There are about 580,500 small businesses in Tennessee which make up about 99.5 percent of the state’s economy, making them a vital part of the economy. Businesses which are not self-funded will require some kind of financial assistance at some point. There are various lending options from Tennessee small business loans which come in handy.
How can I get a small business loan in Tennessee?
It is very important for any businesses to figure out the reason for need of fund. Furthermore, they should find the best lending option for their business. Lenders in Tennessee provide loans at varying rates.
A business can opt for Conventional Bank loan. Conventional bank loans are definitely the most looked for when a business needs financial assistance as they offer the best rates out of all. These loans are offered by both large and small banks in Tennessee. The company will be given a period of time to repay the commercial loan which will be specified in termed agreements. The repayment period may vary from months to even ten years depending on the amount. Moreover, rates for traditional loans vary from lenders to lenders. The company should research and find the best possible lender. They are mostly utilized by Tennessee 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.
Small Business Administration (SBA) lending program is specially designed for small businesses to help owners take a firm hold of their business. These are long term loans and are controlled by the government. SBA loans are specifically designed for small businesses as they provide better security. This means, in case a Tennessee small business defaults, SBA loan reduces the lender’s exposure to losses as the government helps to cover up for most of their losses. However, being backed by the government, the process requires a lot of paperwork. The company will need to show strong health, a good borrowing history, good credit and demonstrate a profitable business plan and show their ability to repay the loan. SBA 7(a) loan is the most common out of many SBA lending options. The process takes about a month.
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 Tennessee 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.
Commercial mortgage is used to own a location on which a business wants to expand. They are secured via liens on a commercial property and are similar to home mortgages. However, commercial mortgages last for shorter time than home mortgages.
Asset Based Loans (ABL) mostly depends on the collateral of your business, rather than just cashflow and credit. Asset based loans help the Tennessee small 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. ABL is a great choice for companies with a stable growth. Companies which are struggling to recapitalize their balance sheet can also choose ABL. ABL allows high amounts in term of loan with flexible terms. This is a very fast process which can take only 10 days.
Tennessee has the highest sales tax in the nation at sever percent. This makes it harder for small businesses to purchase expensive equipment. This is a major drawback, especially for Tennessee small businesses.
With a growing technology industry in the state, there is a high demand for skilled labour. This has made it finding skilled workforce a struggle for small businesses, as most are drawn towards big companies.
Business lines of credit is a kind of small business loan that offers flexibility which usual loans does not offer. This type of loan is best to compensate for expenses that tend to fluctuate throughout the course of the year. Line of credit is offered by banks in Tennessee at revolving terms and the process can be completed as quick as 24 hours.
Equipment financing is another type of lending where new or used business equipment can be financed. While some Tennessee small businesses will find it easiest and most affordable to obtain a term loan or other type of lending facility to purchase business equipment, other small business owners may find that the best way to obtain the equipment is to lease rather than buy. This is because leasing reduces the amount of cash that would be required instead of leasing equipment. By leasing, the company won’t be forced to pay the full-price for the equipment upfront. On top of that, they will be provided with updated equipment.
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 type of loan offers varying rates.
Documents required to get a small business loan in Tennessee
Tennesse has created a pleasant economic climate for small businesses to thrive. On top of that, the options for getting a loan is made easy with various lending options.