A business loan is a valuable lifeline when your company needs capital to grow or short-term help to cover expenses. A good loan offers a reasonable repayment plan and an affordable interest rate. Our partners at ConsumerAffairs researched the best business loans in Las Vegas to help your company succeed.
Nevada relies on small businesses to support the state’s economy. The U.S. Small Business Administration classifies more than 99 percent of the companies in the state as small businesses. These companies employ more than 42 percent of the state’s population, helping Nevada’s employment rate rise every year for the past few years.
There are many reasons business owners in Las Vegas seek outside funding. You might need to hire employees, deal with an emergency or get a new company off the ground. Business loans are also used for marketing to reach new clients or to purchase new equipment to expand. Depending on your company’s needs, different business loans might work better for you.
Some of the most common types of business loans are:
Term loans provide a company with upfront cash that you pay back with interest over a predetermined period. The loan’s period of repayment can be as short as a few months or up to more than 20 years.
Business lines of credit are similar to credit cards and allow borrowers to draw out funds to a certain limit. The borrower only pays interest on the funding used.
Equipment financing loans are usually long-term loans that allow a company to buy necessary equipment. The purchased equipment serves as collateral for the loan.
Accounts receivable loans are short-term loans that provide companies with a lump sum of cash. The company uses its unpaid invoices for collateral.
Merchant cash advances give a company cash upfront that is repaid by withholding a certain percentage of the company’s daily credit and debit card sales.
SBA loans generally require excellent credit. These loans are backed by the U.S. Small Business Administration and distributed through third-party lenders. They have low interest rates but a rigorous application process.
Applying for a business loan in Las Vegas
Many companies provide business loans, including banks, credit unions and online lenders. Banks tend to have strict requirements and require a credit score of at least 680. Online and nontraditional lenders are more flexible and tend to look at your business plan and growth potential to decide whether your company qualifies for a loan.
When applying for loans, be sure to prepare any documents the lender may need to see, including:
Accurate, up-to-date financial statements
A business plan or explanation for the loan need and goals
A list of assets that can serve as collateral, including equipment, inventory, cash deposits or property.
If you don’t have a business plan, many lenders have consultants available who can help you create one and provide other advice on starting or growing your company.
Comparing business loans in Las Vegas
When comparing loan offers, be sure to pay attention to the total loan cost, which is the amount you pay over the length of the loan. Besides the interest rate and loan term, lenders may charge additional fees that add to the cost. These include:
Origination fees pay for the cost of processing the loan
Referral fees are charged by loan brokers by referring you to a lender
Packaging fees cover the cost of preparing a loan application to present to a lender
Prepayment penalties may apply if you pay the balance of your loan before the completion of the agreed term
These costs often come out of the loan amount distributed to you, so make sure your loan amount is enough to cover its intended purpose after paying any initial fees.
Seek Business Capital
Seek Business Capital provides funding estimates within two hours. The borrowed money can be used to cover anything your business needs, and business owners seeking a loan in Las Vegas don’t need perfect credit to apply. Many Las Vegas customers note that they were approved for a higher amount than they expected.
Las Vegas business owners who need quick funding appreciate Imperial Advance’s fast service. Loans are funded within 24 hours, and the company provides business consultants to help you decide which sort of loan works best for you. Las Vegas business owners love Imperial Advance’s simple application process.
National Business Capital
National Business Capital connects Las Vegas borrowers with a global marketplace of more than 75 lenders. Over $1 billion of funding has been secured on the platform. The application process is simple and straightforward, and the company’s team of advisers helps you decide on a loan type. Las Vegas customers praise the company’s helpful advice.