Find the Right Small Business Loan for You
Small Business Loans in North Dakota
North Dakota has roughly 60,000 small businesses adding to the livelihood of the state. While the area might not be the most progressive in the country for entrepreneurs, this doesn’t change the fact that many small business owners have the same nationwide struggle of trying to stay afloat. Small business loans are essential for the success of many companies, as it provides owners with a large lump sum of cash that can be put into the equity of a business.
Small Business Loans vs Personal Loans
Not every small business qualifies to receive a small business loan, causing these owners to wonder if a personal loan is the better choice. Unlike a personal loan, a business one is tied into the assets of your company. If the company should fail over time, the lender will not go after the owner, but instead take back some of these assets to pay back the loan. If you’re taking out a personal loan to pay for business-related expenditures, remember that you are fully responsible for paying back the entirety of what you borrowed. If your business should go under, the lender could come after personal collateral, like your home or car, to repay the loan. It’s crucial that you try to go for a business loan for your company before taking out a personal loan.
Finding a Bank in North Dakota
- Northland Financial
- Western State Bank
- Black Ridge Bank
- Dakota Bank and Trust
- Security First Bank of North Dakota
How to Apply for a Loan
To qualify for a loan, you’ll need to present business documentation to the lender so they can approve your case. Lenders will ask for your business assets, banking information, expenditure receipts, loss data and sales. Banks want to know they’re giving out loans to solid companies that have a chance of future success. Lenders can be picky when choosing a loan recipient because of the high rate of failure among small businesses. In order to protect themselves, they won’t hand out their loans to just anybody, especially high-risk and niche companies. The approval time for business loans in North Dakota is roughly two months.
When You’ll Receive Money and How to Use It
After your loan has been approved, the lender will deposit the money directly into your bank account. It is entirely up to you how the money is used, but it’s advised that you only use the loan funds for business-related endeavors. If you’re taking out a loan to expand on your company, don’t use the money to pay staff or repair property damage. To make the most of your loan cash, you’ll need to establish clear goals that benefit the future of your business. For business owners using a loan to bail out their failing business, you need a solid objective for how that money will help the company and what it needs to be used for in order to achieve this.