How can we help with small business loans?
Delancey Street looks at your situation, and then makes a recommendation on what we think is best to help you. Sometimes, that might be a term loan, and in other instances, it might be a line of credit. Typically, every business has a situation which forces it to choose one over the other. In some cases, if you have a short term need, then a line of credit might be faster and more suitable. It all depends on your situation, and it’s our job to make the recommendation that matters. For example, a small business loan is great for companies that have been in business for over 6 months, and have some recurring cash flow and track record. In addition, depending on whether it’s an unsecured or secured small business loan, collateral may be requested by the lender. It depends on your unique situation.
Typically, loan terms are good for amounts up to $1-2 million. They have low annual interest rates, and can have terms of 2-36 months. Typically, there may be a loan origination fee, but it’ll be low. These loans are great for people who need a form of long term financing, which will be used to pay for new inventory, new locations, quite frankly – anything new – which will generate an ROI over the long term.
Lines of credits can also be offered, up to $100,000 or more, depending on your credit history. The great thing about lines of credits is the fact you only pay interest on what you draw. You can take advantage of new business opportunities with a line of credit. Because the line of credit is “on top,” you can pounce on opportunities as they appear, and be ready for unexpected costs. Simply put, depending on your situation and your needs, one or both may be good for you.