Small business loans in Chicago, IL

Small business owners in Chicago, IL, often seek financial assistance through loans to fuel their growth, manage operations, or initiate new ventures. Understanding the intricacies of small business loans is crucial for entrepreneurs trying to navigate the dynamic business landscape.

Customers Bank is a super-community bank with $22 billion in assets, offering nationwide commercial and consumer banking services. Since 2009, we have provided startups and small businesses with excellent customer service and the convenience of digital banking.

In this article, we address the most frequently asked questions about small business loans to provide clarity and guidance that will help you make an informed decision about your options.

1. What types of small business loans are available? Entrepreneurs can access various kinds of loans tailored to their specific needs. Customers Bank offers multiple lending options, including traditional bank loans, Small Business Administration (SBA) loans, lines of credit, equipment financing, and other lending options to help your business through every growth stage.
2. How do I qualify for a small business loan? Loan requirements typically vary by loan type and individual lender. Expect to provide a business or personal credit history, business financial statements, business plans, tax returns, and other accounting records.
3. What are the interest rates and terms for small business loans? Interest rates and terms vary widely based on the lender, the type of loan, your creditworthiness, and economic conditions. Fixed or variable interest rates, repayment periods that range from months to years, and different payment structures (monthly, bi-monthly, etc.) are common.
4. Do I need collateral to secure a small business loan? Collateral requirements depend on the lender and loan type. Some loans may require collateral, such as real estate, equipment, inventory, or accounts receivable, while others might be unsecured, relying solely on creditworthiness.
5. How long does it take to get approved for a small business loan? Generally, small business loans can take anywhere from a few days to a few weeks for approval. Simple applications with online lenders might get approved within a few days, while more complex loans from traditional banks or SBA loans might take several weeks due to their thorough review processes and requirements.
6. Can I get a small business loan with bad credit? If you have poor credit, getting a small business loan can be challenging, but it’s not impossible. Some lenders focus on factors beyond credit scores, such as your business’s revenue, cash flow, or growth potential. Before applying for a loan, it’s wise to work on improving your credit score.
7. How can small business loans be used? Small business loans cater to various needs, including but not limited to starting a business, purchasing inventory or equipment, buying commercial real estate, covering operational expenses, expanding or renovating, hiring employees, or consolidating debts. Some loans (e.g., SBA 7(a) loans) are available for virtually any type of business expense, and others are designed for specific uses (e.g., equipment financing).

Final thoughts

Using small business loans strategically enables entrepreneurs and business owners in Chicago, IL, to fund their business needs and achieve their goals. Customers Bank would be proud to be your partner. Contact our knowledgeable lending team today to learn more.