If you’re starting or growing a business, it’s necessary to secure funding to prevent overextending your company’s finances. Businesses loans provide funding to companies that need to expand their offices, obtain equipment or purchase inventory. If you’re thinking of using a business loan for your company, there are many factors to consider. Our partners at ConsumerAffairs researched the best business loans in Cleveland to guide your decision.
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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.
Seek Business Capital works with small businesses and emphasizes the consultative nature of its approach. The company has funded 92 percent of qualified applicants and offers comprehensive viability assessments. Business owners in Cleveland appreciate the personal approach and praise the company’s knowledgeable and helpful employees.
Imperial Advance provides a variety of loan types and a dedicated staff of consultants to help you make the best decisions for your company. The company provides funding within 24 hours and does not place any restrictions on its use. Cleveland customers say the application process was quick and easy.
National Business Capital was founded in the wake of the late ’00s economic crises and has grown to more than 100 employees. The company serves as a loan broker and partners with more than 70 lenders to help find the perfect match for your business. Reviewers from Cleveland say the company’s advisors work to establish a personal relationship with each customer.
Huntington Bank has relationship managers who work with business owners to find the best loan options for their companies. The company focuses on helping clients grow their businesses and offers a variety of loans. Customers in Cleveland appreciate the quick and friendly service from bank employees.
Growth Capital Corp.
Growth Capital has provided business funding in Cleveland for more than 25 years and promotes a list of success stories from local companies it has helped fund. The company is also active in the local community. Growth Capital has provided more than $550 million in financial assistance since it was founded.
Our partners independently research and analyze the companies mentioned in our guides and work with subject matter experts to add valuable information that helps consumers make smart purchase decisions. Our partners will not include companies on these guides that do not meet specific quality standards. The compensation we receive from our partners may impact how and where companies appear on our site, including the order in which they appear.
Our partners independently research companies, and use editorial discretion to award companies with special recognition (i.e. Best Value) based on their staff’s judgement or subject matter expert’s judgement. Our partners do this to help you identify companies that will meet your specific buying needs, and do not receive compensation for these designations.