If you’re an entrepreneur or a business owner, eventually you’ll find yourself in need of capital to start or expand your business. A quality business lender provides your company with the funding it needs along with valuable advice and consultation services. Our partners at ConsumerAffairs researched the best business loans in Indianapolis to find the right partner for your business.
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Indiana has nearly 493,000 small businesses that employ around 50 percent of the state’s private sector workers. Around 388,000 of these businesses are one-person operations, which gives small businesses in Indianapolis plenty of room to grow.
Whether you want to open a home-based daycare center in the Fountain Square neighborhood, a microbrewery in Broad Ripple or a wine bar in Irvington, business loans can help provide the funding you need to start or expand your company. Many lenders in Indianapolis have loans available that let you renovate your offices, buy out partnerships, purchase inventory, expand marketing or upgrade equipment.
There are numerous types of business loans in Indianapolis. Some of the most popular are:
Term loans: Term loans are the most common type. These loans can be long-term or short-term loans, and they provide upfront cash that is paid back over a predetermined period of time.
Business lines of credit: Lines of credit are similar to credit cards. Businesses can access funding up to a specified amount and only pay interest on the amount used.
Small Business Administration (SBA) loans: SBA loans are offered from third-party lenders and partially secured by the U.S. Small Business Administration. These are generally long-term loans with a rigorous application process.
Equipment financing: Equipment loans are used to purchase needed equipment. These loans may require a down payment, and the purchased equipment serves as collateral for the loan.
Invoice financing: These loans are ideal for companies that need a quick infusion of cash. The company’s outstanding invoices serve as collateral for the loan.
Merchant cash advances: A merchant cash advance gives a company cash upfront that is repaid by withholding a certain percentage of the company’s daily credit card sales.
Many lenders will require a minimum personal credit score, usually around 500, although alternative lenders usually have no credit score requirements. These lenders, often providing online service, focus on the viability of your business model.
When comparing loans, be sure to look for different fees that affect the overall cost of the loans. These include origination and processing fees. A good way to compare business loan offers is to look at the annual percentage rate (APR). Unlike interest rates, the APR includes any fees you incur with the loan.
Seek Business Capital provides funding procurement, comprehensive viability assessments and business consulting for start-ups and small businesses. The company has a 92 percent approval rate for qualified borrowers and offers a business funding estimate within two hours. Customers in Indianapolis say the company’s consultants were knowledgeable and professional.
Imperial Advance provides loan offers to Indianapolis business owners with no obligation or pressure. The company has an A+ rating with the Better Business Bureau and distributes loans within 24 hours. Imperial Advance also has financial consultants who will work with you to decide which type of financing is best for your business.
National Business Capital will work with all borrowers, regardless of their credit background. The lender’s objective is to help small businesses fill their financing needs quickly, efficiently and without the rigorous application process of traditional bank loans. Indianapolis business owners give the company high marks and say the application process was simple and user-friendly.
Indiana Local Biz
Indiana Local Biz offers small business loans and loan alternatives ranging between $10,000 and $1 million. The company also provides lines of credit and solutions for equipment loans or financing. Customers in Indianapolis enjoy working with the company because of its fast approval process and stress-free customer service.
Oak Street Funding
Oak Street Funding provides commercial financing for specific industries, including insurance businesses and franchise restaurants. Its products include retail agency loans, equipment loans and lines of credit. The company has mixed customer reviews in Indianapolis, with some writing of good experiences with the lender and other stating it fell short of expectations.
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