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Small Business Loans in Delaware (2020 Update)
Delaware has over 68,000 small businesses state-wide, with 45,000 of these company owners working as full entrepreneurs with no employees. Hundreds of new businesses are established each year in Delaware alone, making entrepreneurship popular among people of all ages. Being secured financially is crucial to running a successful company. This is why company owners seek out small business loans that are designed to help them get a head start on their business ventures.
Small Business Loan Information
Before applying for working capital loans, you need to have a clear strategy for using the money. It’s all too common for entrepreneurs to borrow money, only to use it for frivolous expenditures that aren’t benefiting the growth of their companies. You should know how much you’ll be borrowing and where every penny of that money is going. You might be taking out a loan to expand on your company or to invest in better-quality marketing. Without a clear game plan, the money you borrow will be useless to your small business.
It is important to note that most banks will not offer small business loans to brand new companies. The risk of failure is too high for these businesses, as eight in every ten newly-established companies will fail within their first year. Your business should be over one or two years old before you can apply for a loan. There are options that you can take advantage of before this time to get an advance of money, such as opening a merchant account.
Business loans will have an interest rate attached to them, as any other type of loan would have. The APR can range from 4 percent to about 15 percent depending on the lender you’ve chosen. If you have a bad credit score, you should expect to pay a higher interest rate. You will be denied a loan if your credit is poor or completely nonexistent.
To apply for a small business loan, you need to have a list of banks to choose from. Compare rates and meet with loan experts before signing any paperwork. Try to find the business loan with the lowest interest rate, as this will make payments lower and more affordable. During the application process, you’ll need proof of sales, receipts and expenditures so the bank can determine your eligibility. For instance, a business that makes few sales and is struggling financially may be denied a loan. Your credit score will be a determining factor during the approval process.
Banks in Delaware That Offer Small Business Loans
Below is a list of banks in Delaware that offer small business loans:
Chase Bank USA
Chase Bank has a reputation for competitive rate lending. To date, they’ve lent over five million small business loans and have a total customer approval rating of 87.5. Their main office is located in Newark.
Discover Bank has approved over six million loans to small business owners nationwide. Their customer rating is currently at 87.5 percent. Their main headquarters can be found in Wilmington.
The Bank of Delmarva
This lender has approved almost one million loans to business owners who are need of financial support. Their customer rating is currently held at 75 percent. Their offices can be found in Seaford.
Top Cities in Delaware and Their Lenders
Delaware is famous for being the second smallest state in the country – right behind Rhode Island. The area has historical roots in the founding of the United States. Events in the Revolutionary War took place throughout Delaware and the surrounding regions. Delaware is also well-known for its reputation of affluence – individuals in the area have a much higher standard of living that much of the rest of the country.
The local economy is quite diverse. The medical industry, financing, and agriculture all play a major role in Delaware. The area is also known for its extremely private business laws. In fact, most new businesses in the United States are registered in Delaware – they allow anonymous ownership of LLCs. While there aren’t many major cities in Delaware, there are some great choices when it comes to deciding where to open your new business. Below are the different major cities in Delaware and their top business lenders!
Wilmington is a scenic city in the state of Delaware that lies on the Delaware River. As Wilmington is the largest city in the state of Delaware, it serves as the economic hub for the small state. Plenty of retail and services businesses operate in the area. If you’re thinking of opening a business in Wilmington, you should consider the following small business lenders:
Marlette Funding is the top small business loan provider. This is our favorite lender in the area because they focus exclusively on providing small businesses with finance – if you’re looking for experts, this is the right lender for you!
Swift Capital is another business lender that’s located in Wilmington, Delaware. They have a solid reputation for being able to get clients the money they need quickly. They’re a great option for people who need business funding quickly.
While Dover is the second largest city in the state of Delaware, it only plays home to just over 30,000 people. Regardless, the local economy is still thriving. The area still plays home to large manufacturing and food processing plants and companies. If you’re thinking of starting a business in the area, there are a couple of small business lenders that can help you obtain the financing you need:
Dover Federal Credit Union
Dover Federal Credit Union is the biggest lender in the Dover area. They’re a great partner to have because they have so much experience helping businesses in the region. They provide a range of funding solutions, including business lines of credit.
Crefcoa is a popular commercial lender in the Delaware region. They have a large client base in the Dover area. They’re another local lender with plenty of industry experience.
Newark, Delaware is a small city that also happens to be one of the tourism epicenters of Delaware. It’s located next to some of the most scenic areas of the state – you can find White Clay State Park just a few miles outside of the city. If you’re looking to move to the area to start a new small business, you should consider the lender listed below:
1st Mariner Bank
1st Mariner Bank is a local bank that provides commercial loans to their customer base. The good think about this lender is that they also provide traditional banking services. If you’re looking for a one-stop-shop that can keep your finances in order, this is one of the top lenders to work with in Newark.
M&T Bank is another regional bank that has a branch in the middle of Newark. They’re another good lender to work with if you’re looking for someone who can provide you with full-service banking on top of your lending. M&T Bank also provide consumer services to their customers.
Milford is a very small city in the state of Delaware – it only has around 10,000 residents. Regardless, the local economy plays home to a number of successful small business owners. Many of whom work in distribution or retail. This might not be the best city to start a new small business in, but it still has a local small business lenders in the area if you decide to open shop:
County Bank Delaware
County Bank Delaware is a small, regional bank that has offices throughout the state of Delaware. They also have a branch in Milford that can be used to obtain consumer and commercial financing. They’re a great choice to have if you’re looking for a bank with a range of different financial services. They’re our top pick for the Milford, Delaware area!
Atlantic Finance is a unique financing company because it also has a pawn shop attached to it. Don’t let this deter you, they provide loans specifically for business owners who are looking to get funding.
Remember, some of these companies or banks are very specialized and may only handle SBA loans or a business line of credit. Ask them about any special programs for minorities or women. Also ask for information about business grants for startups if that interest you. If you bad credit don’t worry as there still may be other alternative lenders willing to work with you.
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