Commerce in the state of Maryland consists of 99.5% of small businesses. Half of all employees in the state, from Baltimore to Annapolis, work for small businesses. It is therefore important that these business owners have access to working capital that helps them keep these businesses strong.
Small Business Loans for Maryland Business Owners
Entrepreneurs don’t always have the cash to buy what they need to keep operating. In your business, would you be able to replace equipment such as a computer or company vehicle with cash? Otherwise, you are far from alone.
Small business finance solutions like the ones we’ll talk about below can give you the peace of mind that you can cover any expenses that arise, no matter what’s in your bank account.
Options for Small Business Loans in Maryland
Each of the following business financing solutions is ideal for specific situations. Decide what is right for you.
Coronavirus pandemic loans
In addition to federal COVID-19 emergency loan funds designed to help businesses nationwide recover from financial losses caused by the coronavirus pandemic, including the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), there was also COVID Programs for Maryland Small Businesses offered by the Maryland Department of Commerce and other entities.
Note that these programs may no longer be available.
Banks, credit unions and online lenders offer small business loans with competitive rates and longer terms to businesses with excellent credit
When you need working capital, sometimes you don’t need it all at once. This is where a line of credit can come in handy: you’re approved for a certain amount, which you can borrow and repay, and then borrow again.
If you use expensive equipment in your Maryland business, an equipment loan is worth exploring. Even if you don’t have good credit, you can still benefit from lower interest rates because the equipment you buy serves as collateral for the loan.
Short term loan
Even if you have bad credit, there are financing options. Short-term loans usually have to be repaid within a few months or a year and may have higher interest rates.
Using business credit cards making purchases for your business, especially a card that allows you to accumulate points to redeem for rewards, can be a good idea for your business. Some have high interest rates, so be sure to pay off your balance before these charges go into effect.
How To Qualify For A Maryland Small Business Loan
Lenders look at several factors to determine eligibility for financial assistance. If you’re running a startup, you may not be eligible for some options, like a bank loan or SBA, as these typically want borrowers to be in business for at least two years.
Your credit will also be taken into account: the higher your personal and / or business credit scores, the better the offers you will get. Learn how to establish business credit so that you expand your options.
Lenders can also look at your annual income and find out if you’ve ever taken out loans. Essentially, they will determine how much risk you present to them in terms of being able to repay a loan.
How to Apply for a Maryland Small Business Loan
Before you apply for a loan, go over the details with the lender you are applying to. Some may only require a five-minute request, while others, such as the SBA or banks, may have more complex processes that require you to provide your business plan and / or financial statements and statements. of income.
There are commercial resources like the Maryland Small Business Development Centers and the Maryland Women’s Business Centers who can provide you with technical assistance, such as helping you create a business plan or apply for business loans.
When applying, regardless of what type of funding you are applying for, you will be asked to provide information about your business, including how long it has been in existence, annual income, and location. You may also need to provide details such as your social security number.
Once your application is approved, you will be presented with loan options, including the interest rate and repayment terms. If you accept them, you will sign the loan documents and then the funds will be deposited into your business bank account in just one day.
Uses for Maryland Small Business Loans
Unless your business loan specifies what you need to use it for, such as equipment loans, you can use it for a variety of business purposes.
Many small business owners use financing to grow their business, such as renting and renovating a second location. They can use a loan to hire employees or buy larger amounts of inventory. They can use the funds to buy equipment or just to have working capital when they need it.
Whatever your need, Nav got some great financing options to help you.
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