Find the Best Small Business Loans in Cleveland, OH

How to Get a Small Business Loan in Cleveland

Cleveland is home to eight Fortune 1000 companies, but small businesses are a large part of the city’s economy. According to the U.S. Small Business Administration, small businesses employ 46 percent of Ohio’s private workforce. Cleveland is also a great place to launch a company: Entrepreneur Magazine recently ranked the region as better for entrepreneurs than Boston, New York or Seattle.

If you’re taking advantage of Cleveland’s growing economy to start or expand a company, a business loan gives you the needed funding. Some common kinds of business loans include:

• Term loans: Term loans are the most common types of business loans. These loans can be long-term or short-term loans, and they provide upfront cash that is paid back over a predetermined period of time.
• Business lines of credit: Lines of credit are similar to credit cards. Businesses can access funding up to a specified amount and only pay interest on the amount used.
• Small Business Administration (SBA) loans: SBA loans are offered from third-party lenders and partially secured by the U.S. Small Business Administration. These are generally long-term loans with a rigorous application process.
• Equipment financing: Equipment loans are used to purchase needed equipment. These loans may require a down payment, and the purchased equipment serves as collateral for the loan.
• Invoice financing: These loans are ideal for companies that need a quick infusion of cash. The company’s outstanding invoices serve as collateral for the loan.

Lenders in Cleveland have specific requirements for business owners hoping to qualify for a loan. If you’re starting a new company, it may be necessary to rely on your personal credit or assets, such as your home, as collateral. Lenders may require you to provide a business plan and discuss how you plan to use the funds.

Online lenders are a good alternative for many small businesses in Cleveland that need a short-term loan. Many of these lenders have less stringent requirements and will provide consultants to give advice on which loans will work best for your company.

When comparing loans, make sure you have a clear understanding of all fees or costs contained in the contract. Many lenders in Cleveland will charge origination or referral fees or have other costs that could cause your loan to cost more than you expect.