Find the Right Small Business Loan for You
Small Business Loans in Iowa
While Iowa may not be the top entrepreneurial state in America, there are still over 250,000 small businesses state-wide. A good majority of business owners within the state require some type of small business loan to get their companies established and running. A loan is an essential form of cash flow that can save a company from failing or enable expansion of their services.
When to Take Out a Business Loan
The best time to take out a small business loan is if you’re an entrepreneur and need a large lump sum of money. You might have plans to use that money to expand your company or put cash into marketing and advertising to bring in more customers. Alternatively, your plan for the loan money might be to save your failing business. Whatever your objectives are, have a clear goal in mind before receiving the cash from the loan. Loan agreements are long-term contracts that will need to be paid back in full with interest. If you squander the money away and don’t use it for your company’s essential needs, you’ll only regret it in the end when your business suffers.
Applying for a Loan
The lender of your choosing will need business-related documents that provide them valuable information pertaining to your company’s assets. Lenders won’t approve loans for companies that are brand new, high-risk or work in a niche market. If you have a bad credit score or have business delinquencies filed against you, don’t count on being approved by a bank with a good rate. This isn’t to say that you won’t be approved for a business loan at all, but that you’ll more than likely get locked into a higher interest rate. Most banks will have an approval turnaround time of roughly 45 days to two months.
Usage and Repayment
Once you’ve been approved, the money from the loan will be deposited directly into your chosen bank account. Repayment of the loan starts immediately upon receiving the money. Most business owners find it easier to set up automatic withdrawal payments so they don’t have to remember to pay the loan bill. The interest will automatically be integrated into your loan payment, which causes the loan to total more in the long run than what you received. The interest is how lenders make their money off of loans in general. Business loan rates range from five to eight percent, and the rate you receive depends on your company’s liability factor and credit report.
Banks Available in Iowa
If you’re looking to create a small business in Iowa, here is a list of some of the top banks within the state. You can visit their branches or websites to learn more about their loans and pick up an application to get started.
- First Central State Bank
- Farmers Trust & Savings Bank
- Libertyville Savings Bank
- American State Bank
- Gateway State Bank