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Small Business Loans Rhode Island
How Do Small Business Loans Work?Most small business loans are intended to be used only for business-related expenses. If approved, you will typically receive a lump sum of funds from your lender and be expected to repay the loan with interest over a predetermined period. Getting approved will be much easier when you have done your research and understand the options available to you.
- Business Line of Credit
- Funding for any business expense
- Often best for bridging cash flow gaps and covering emergency expenses
- SBA Loans
- 7(a) Loans
- Funding for most business expenses, including working capital, purchase of equipment, machinery, furniture, fixtures, supplies, real estate (including land and buildings), construction of a new building or renovation of an existing building, refinancing current business debt
- Can be short- or long-term and generally offers low-interest rates
- CDC/SBA 504 Loans
- Long-term funding up to $5 million
- May be used for purchasing, building, or renovating owner-occupied commercial real estate or purchasing other fixed assets that promote business growth and job creation
- Cannot be used for working capital or inventory
- SBA Microloans
- Limited to $50,000, with lower interest rates, more flexible terms, and fewer fees than other loans
- May be used to rebuild, re-open, repair, enhance, or improve your small business
- Cannot be used to buy real estate or pay existing debts
- 7(a) Loans
- Customers Bank is an SBA-preferred lender. The SBA loan program includes several types of loans for small businesses, so your best bet is to speak with a Customers Bank lending expert to decide which type of loan your business may need.
Business Term Loans
- Higher credit scores will attract better loan rates and terms
- May be used for expanding to a new location, purchasing equipment or inventory, and hiring staff
- Some lenders may require collateral and personal guarantees to provide term loans to business owners
- Short-Term: These loans are generally repaid in 12 months or less. However, some lenders offer repayment terms of up to 24 months.
- Intermediate: These loans generally have repayment periods of one to five years and often require regular payments on a bi-weekly or monthly basis.
- Long-Term: These loans are perfect for large construction projects and buying equipment, buildings, or other businesses. Repayment terms are typically available for six to 20 years
- Customers Bank offers term loans with competitive rates, monthly payments divided equally between principal and interest, and automatic payment options.
Final ThoughtsThere are many things to consider when choosing the right small business loans. Customers Bank will serve your business as a sound financing partner in Rhode Island. One of our experienced lending officials would be delighted to help you through each step of the process.
Get your business to the next level with a flexible financing solution from Customers Bank.
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