Take advantage of our specialized banking expertise in a range of industries.
Need money for your small business in California? You can use small business loans for many reasons, but there are factors to consider before you choose a lender. Customers Bank provides multiple lending options to help your business through every growth stage. We are ready to be your partner.
Customers Bank is a super-community bank with over $20 billion in assets, offering nationwide commercial and consumer banking services.
Since 2009, we have served startups and other small businesses with outstanding customer service and the convenience of digital banking. We offer expert advice, services, and technologies for our clients across many different industries, including:
- Accounting and Financial Advisors
- Alternative Energy
- Associations and Non-profit Banking
- Continuing Care Banking
- Healthcare Banking
- Hospitality Banking
- Insurance Brokers
- Legal Profession Banking
- Property Management
- Title and Escrow Banking
Think Before You Apply
Your answers to the following questions will help you make a decision on the type of loan and lender best suited to your needs.
- How much funding do you require? To determine the amount of funding you need, evaluating the maximum loan amounts offered by lenders is essential. Different lenders have varying borrowing limits for small businesses. For instance, SBA loans can go up to $5 million, while traditional term loans may have higher borrowing maximums. Most lenders will lend up to 10% to 30% of your business’s annual revenue. Therefore, it’s crucial to evaluate your financial standing and the borrowing capacity of your business before applying for a loan.
- Why do you need the funds? If you want to acquire or fix equipment, restock inventory at discounted prices, buy commercial real estate, expand to a new location, or finance your working capital expenses, there are several small business loan options at your disposal. Some loans, such as SBA 7(A), can be used for almost any business expense, while others, like equipment financing, are specifically tailored for particular uses.
- What type of loan do you want? Small business loans are tailored to specific purposes, and each type has unique requirements. For instance, a term loan for equipment financing will have different prerequisites than a government-guaranteed SBA loan. Consider whether a revolving line of credit or a one-time lump sum aligns best with your business requirements.
- Do you meet the lender’s requirements? Loan requirements typically differ depending on the type of loan and the lender. As a business owner, you should anticipate providing a business or personal credit score, business plans, tax returns, financial statements, and specific accounting records as requested. These documents will help lenders assess your creditworthiness and determine your eligibility for the loan.
- Are you prepared to put up collateral? Business loans come in two forms: secured or unsecured. A secured loan requires you to pledge business collateral, such as property or equipment, which the lender can seize if you default. While putting up collateral can be risky, it can increase the amount of money some lenders are willing to lend you and get you a lower interest rate.
- What can you afford to pay each month? Analyze your business’ financials, especially your cash flow, and determine how much you can afford to allocate towards repaying your loan each month. After adding the new repayment amount, your total income should be at least 1.25 times your total expenses. When searching for a loan, ensure you can comfortably repay it without jeopardizing your business’ financial stability.
Finding the best bank in California for small business loans involves careful evaluation. Customers Bank can help you through every growth stage and is committed to being your partner. Contact our experienced team, who would be delighted to help you through each step of the process.