The Best Small Business Loans in Charlotte, NC
Helping You Obtain Small Business Loans in Charlotte, NC
Finding a small business loan in a large city like Charlotte, North Carolina is not always an easy task. With so many lending options, you can spend lots of hours and resources shopping for the loan that best fits your needs.
Your FundingTree is here to make that process simple by connecting you to banks and other industry lenders with speed and efficiency. Instead of filling out countless lending forms, you can submit a brief 90-second application to help us find you a carefully curated list of lenders eager for your business.
Our network of small business lenders offers a wide range of loan options to fit every funding scenario for your company:
- Accounts Receivable Financing to offload unpaid invoices in exchange for cash at a discounted price.
- Asset-Based Lending to qualify for credit in proportion to your other financial assets.
- Bridge Loans for short-term financing while you procure a long-term business loan.
- Business Line of Credit to access working capital on a revolving basis to help supplement gaps in cash flow or to cover unexpected expenses.
- Commercial Real Estate Loans to assist in the acquisition of new assets for your company.
- DIP Financing to work through restructuring in a Chapter 11 bankruptcy by continuing operations and paying off other debts.
- Equipment Financing for capital to purchase necessary and, sometimes, industry-specific tools to grow your business.
- Invoice Factoring to obtain a loan for cash flow assistance by leveraging unpaid invoices as collateral.
- Payroll Funding for help meeting the payroll obligations to your hardworking staff and employees.
- Purchase Order Financing to use the power of future orders as collateral to keep paying suppliers and other production costs.
- SBA Loans from the government that provide liquidity to eligible businesses in a variety of circumstances (e.g., natural disaster, etc.).
- Small Business Loans for every stage of your company’s journey from initial launch to expansion or other growth opportunities.
- Terms Loans for borrowers that want an amortized repayment plan over a fixed period of time.
- Working Capital Loans for daily operating costs of your business whether planned or unexpected.
Our Standards for Providing Quality Small Business Loan Services
Our funding platform is not like those of other loan brokers. We believe in providing consistent, quality service through an application process that is easy to navigate. Some of the highlighted features for using Your FundingTree include:
- A fast and free application process that doesn’t require setting up an account with passwords or confirmation emails.
- Applying through Your FundingTree doesn’t involve a credit check, so no harm to your credit score.
- Avoid the hassle of submitting forms to different lenders by completing our single application.
- Know that we only work with the most trusted lenders who have specific industry knowledge that allows them to understand the needs of your business.
Accounts Receivable Financing
Accounts receivable financing is a standard way for businesses to maintain a consistent cash flow while waiting for customers to pay their outstanding bills. The structure of accounts receivable financing usually takes two distinct forms. The first is as a business loan where the lender takes the A/R as collateral (i.e., a security interest in the event you default on the loan). With this approach, you still have the responsibility of collecting unpaid invoices from your customers.
The second option, also known as invoice factoring, is effectively the sale of your A/R. How it works is that lenders will purchase the rights to your unpaid A/R balance, and, in exchange, you will receive funds that you can use to continue operating the business.
Depending on the creditworthiness of your customers, some lenders will purchase your A/R at their full value. However, it’s more common that lenders will purchase them at a slight discount because of the risk that the invoices go unpaid. Additionally, the lender will likely apply a financing fee to the transaction. The amount of the fee generally correlates to the length of time it takes for your customers to pay the invoice. Learn more about both A/R financing options here.
Unbeatable business opportunities can arise with very little notice such as a massive inventory sale or a more favorable location that necessitates a move. When these situations arise, a bridge loan is a short-term financing option that can help you accomplish the goal quickly. This loan type will almost always require collateral and can involve higher interest rates. Other common terms of bridge loans include:
- Shorter repayment schedules (i.e., anywhere from 6 months to a few years).
- Possibility of a prepayment incentive or prepayment penalty. Some lenders charge a prepayment penalty to compensate for the future missed interest payments, which is how they profit.
- Quick closing timelines, which means you receive funding fast.
A bridge loan is also a popular option for a business that is experiencing a seasonal dip in working capital or are awaiting more permanent financing options. This short-term financing option is sometimes called gap financing, swing financing, a hard money loan, or interim financing. Learn more here.
Commercial Real Estate Loans
Most businesses require some form of real estate to operate whether it’s for production, holding inventory, or a storefront where customers can make purchases. You may want to own the land where your business operates to avoid lease payments, add an asset to your balance sheet, and have ultimate control over the space. However, most businesses lack the capital necessary to purchase a commercial property outright.
A commercial real estate loan can provide businesses with the capital to buy real estate and operates like a residential mortgage or another traditional loan. The key terms of a commercial real estate loan may include the following:
- The lender will hold a security interest in the commercial property you purchase with the loan.
- Amortized repayment schedule over a period that can range from 5 to 20 years.
- Down payment that can vary from 10-50% of the property’s value.
- Fees for appraisal, applying, and loan origination are common.
Another important concept to consider with a commercial real estate loan is that the business is the borrower. A young business, or one that lacks credit (i.e., no prior loan history), may need a personal guaranty from the owner to qualify for a commercial real estate loan. A personal guaranty acts as another remedy for the lender in case the business cannot repay the loan. Learn more here.
America understands the valuable role small businesses play in fueling a healthy economy. To lower the barriers of entry, the Small Business Administration (SBA) is a federal agency whose objective is to provide funding opportunities for small business owners who may not qualify for traditional financing. The SBA also helps businesses that operate in communities with limited lending options (i.e., low-income, or rural areas).
Although the SBA uses private banks and lenders to help administer their loan program, the terms can be more favorable than private financing. These government-backed loans may offer more borrower-friendly terms like low down payments, no collateral requirements, or flexible repayment schedules. Borrowers can receive up to $5.5 million for a wide range of business purposes including:
- Working capital
- Refinancing debt
- Purchasing equipment
- Buying real estate
You can learn more about the details and application requirements for different SBA loans here (e.g., SBA 7(a) loans, SBA CDC/504 loans, etc.).
A term loan is a broad category of business financing that including both short and long-term options for a variety of commercial needs. The common denominator for these types of loans is the fixed repayment schedule – meaning you know your monthly obligations from the loan and can more accurately manage cash flow. The interest rates on term loans are often fixed too, but can sometimes be variable (i.e., based on the current market rate). Term loans may require collateral or a personal guaranty depending on your business and the loan amount.
The repayment period for a short-term loan will range anywhere from 3 to 12 months. A medium-term loan will have an amortization schedule of 2-5 years, and a long-term loan can be 10+ years. Consider the loan amount and intended use of the proceeds when deciding on an appropriate term.
For example, a large loan with a short repayment will create a higher repayment installment amount. Long-term loans might be best for expensive renovations or major equipment purchases. Whereas a shorter-term loan might be more appropriate for working capital (e.g., utilities, payroll, minor equipment, etc.). Learn more here.
Working Capital Loans
Working capital loans are meant to cover the daily and short-term needs of your business. This includes items like employee salaries, rent, utilities, inventory, and administrative costs like accounting, legal, etc. Leveraging the power of a working capital loan can help a business set aside profits and revenue to cover reinvest in the company (e.g., improvements, expansions, new product lines, etc.). The cash-flow flexibility from a working capital loan can also free up other money to pay stakeholders or other obligations.
The versatility of these loans also makes them ideal for seasonal businesses that experience brief lulls in revenue and cash flow because of their industry. A working capital loan allows them to cover short-term obligations while awaiting the uptick in business that happens during the busy part of their season. Additionally, a business with an unexpected expense may also benefit from a working capital loan to maintain cash flow while waiting for reimbursement from an insurance policy. Learn more here.
Best Small Business Loans
Small business loans come in a variety of shapes and sizes to meet the needs of the borrower and lender depending on the nature of the transaction. These loans serve a wide range of purposes for business owners as they navigate the goals of their operation. A small business loan can help with common expenses for a growing business such as:
- Purchasing equipment that will automate or improve your operations
- Ordering additional inventory to meet rising demands
- Hiring staff
- Leasing commercial space
- Paying for marketing or other costs necessary to raise awareness of your brand
With a small business loan, you retain control over the finances and direction of your company. A benefit that might not exist when you seek funding from friends or family who may seek an ownership stake in the business. If you’re not sure which type of loan will best suit your needs, apply anyway. One of our advisors will be there to help understand your goal and the loan type that aligns with it. Learn more here.
Business Line of Credit
The expensive needs of a successful business can arise without little warning. Likewise, the steady revenue of a company can hit unexpected declines due to factors outside your control. Sometimes, a valuable business opportunity can present itself and require fast action on your part. When these situations occur, you may not have the cash available to close the deal or keep the business running. Additionally, taking the time to apply for a loan might risk you missing out on the opportunity.
To have accessible funds at the ready, you may want to open a business line of credit. This type of financing operates much like a personal credit card would but is for your business. When you withdraw funds, your balance will accrue interest and you may have to make minimum repayments of principal and interest until you fully repay the debt. A lender may secure your line of credit with your business’ equity or other assets. Learn more here.
Learn More About Our Other Types of Business Funding
Whatever your lending needs, Your FundingTree simplifies the process for you without sacrificing the quality of loan options available to you. Tap into our network of trusted lenders who have experience and nuanced understandings of your business’ industry. We’ll help you find a pool of lenders to choose from and all it takes is the completion of a brief 90-second application. Take the next step in your business’ path towards growth today by learning about our other types of financing:
- Equipment Financing
- Payroll Funding
- Asset-Based Lending
- DIP Financing
- Invoice Factoring
- Purchase Order Financing
Contact Your FundingTree today to see your financing options available in Charlotte, North Carolina, or other parts of the country.