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Small business loans in Lancaster, PA
If you’re looking for financial support to boost your Lancaster, PA, small business, there are a variety of loan options available. Customers Bank offers a range of lending choices for any stage of business growth, and a member of our lending team would be more than happy to help you with the process.
What to Do before you submit an application
Small business owners often turn to traditional banks and credit unions when seeking financing. However, there could be other options available. Consider the following questions to determine which loan and lender will best serve your requirements.
How much do you need? Different lenders have maximums they are willing to lend to small businesses. For instance, traditional term loans tend to have high ceilings, while SBA loans can go up to $5 million. Generally, however, lenders only grant 10-30% of a business’s annual sales.
Why do you need the money? There are many loan possibilities to choose from, whether you want to cover daily operating costs, buy or fix equipment, buy inventory with discounts, purchase commercial real estate, or move to a new location. Some loans may be used for any business cost (e.g., SBA 7(a) loans), while others are meant for a particular use, such as equipment financing.
Do you meet the lender’s qualifications? Depending on the loan type and lender, there are usually different criteria that must be met. Business owners should be prepared to submit their credit scores, financial accounts, business plans, tax returns, and any additional records requested.
Are you willing to use assets as security for the loan? Both secured and unsecured loans are available. With a secured loan, you provide collateral, such as property or equipment, that the lender can take possession of if you fail to repay the loan. This can be risky, but it can result in a higher loan amount and lower interest rate.
How much can you pay each month? Carefully evaluate the financials of your business, especially the cash flow, to determine how much can be applied to repay the loan each month. After adding the payment amount, your income should be at least 1.25 times the total costs. Find a loan with terms and rates that make the monthly payments manageable.
Before you select a loan, consider what your business requires. Do you need a revolving line of credit or a single lump sum? Various types of loans are designed to meet different objectives. Think about what best suits your needs.
For your Lancaster, PA, small business, consider obtaining a loan with the most advantageous terms. Customers Bank is a reliable source of funding for small and large ventures. To find out which financing option best suits your needs, please discuss your requirements with one of our knowledgeable bankers today!