Find the Right Small Business Loan for You
Small Business Loans in Connecticut
There are almost 350,000 small businesses in the state of Connecticut. Connecticut is one of the most progressive states in the country for entrepreneurship. Roughly one in every other company owner established in Connecticut will need to take out a business loan at some point in their career. Business loans are necessary when a company needs a certain level of financial backing to support their services.
Why Connecticut Business Owners Take Out Loans
Connecticut business owners require small business loans because they need a large lump sum of cash to either keep their company going or to expand their business to increase client flow. As long as the business loan is being used for company needs, there is no reason to forgo getting the cash you require. The issue comes when an entrepreneur takes out a loan and doesn’t pay it back on time or uses the money for non-business-related expenses. This has been the ruin for many Connecticut companies in the past.
Applications for a Business Loan
To apply for a loan, you’ll need a lender or bank that works with corporations. Not all banks offer small business loans, so consider this before making a trip to your local banking branch. The lender offering the loan will have an interest rate attached that can range from five to eight percent. The higher the interest rate, the more expensive your loan payments will be and the longer the loan will take to pay off. Don’t be afraid to interview the lender to determine if they’re the right fit for you. After all, you’re the one who’ll be paying for the loan for years to come, so you need to know you’re getting the best rate.
During the application process, expect the lender to scrutinize your business assets and future financial plans. The bank wants to know why you need a loan and where the money will be used. They also need to know that your company will be a success and has a small chance of failure. Unlike personal loans, the owner’s credit score isn’t as important as the business’s capital.
How to Repay a Business Loan
Repayment of your business loan will begin immediately upon receiving the money. You should have an idea of how much your loan payments will be when applying for the loan. Interest is integrated into your loan payments, and you can choose to have automatic deductions taken from your account to pay the lender. Depending on your term length, you’ll have the loan paid off in just a few years. If you should ever be late on payments, you’ll accumulate late fees and delinquencies that go against your company’s credit report.
Banks in Connecticut Offering Business Loans
Here is a list of some of the best banks in Connecticut offering business loans:
- Thomaston Savings Bank
- Fairfield County Bank
- Connecticut Community Bank
- Dime Bank
- Farmington Bank