Find the Best Business Loan Companies in Sioux City, IA

Types of business loans in Sioux City

There are a wide variety of lenders and options for business owners in Sioux City. Finding the right lender, with fair rates and a good reputation, takes a little bit of time but can make a significant difference in the overall cost of taking out a business loan. When comparing different options, look at the term lengths, available loan amounts, types of loans, interest rates and annual percentage rates (APR).

The types of business loans in Sioux City include the following:

• Commercial mortgage loan: These types of loans, also called business real estate financing loans, are specific to purchasing real estate for a business. The terms of this loan depend on the type of property and typically last up to 20 years. A commercial mortgage can also be used for renovating an office space.
• Business term loan: With business term loans, business owners have the flexibility to create loan terms that meet their needs. For easy turnaround projects, short-term loans may be a better option. But for expensive ventures that may take years to recoup funds, consider a long-term business loan.
• Merchant cash advance: For business owners who need cash fast, a merchant cash advance can be an attractive option. While these come with higher rates than the other options, they are easier and faster to get than the other financing options on this list. To get an MCA, a provider will look at how much a company makes per week to offer a cash advance that they think the business will realistically be able to afford.
• Business line of credit: When flexibility is key, a business line of credit is a great option. With a business line of credit, a lender provides a specific amount of money that business owners can draw from as needed. This financing option is similar to business credit cards, which also offer customers access to funds in a flexible way. Lines of credit usually have lower interest rates and are better for carrying a balance than credit cards, but credit cards come with rewards and other benefits.
• SBA loan: For small businesses that need help obtaining a loan and financing their business, SBA loans are a good option. These are government loans for businesses and act like any other loan, but are guaranteed by the Small Business Association. SBA loans can take a while to obtain and have strict approval requirements.
• Equipment financing loan: If a business owner only needs to cover the cost of equipment, an equipment financing loan is an option. These business loans can be obtained even with bad credit because the vehicle or equipment will act as collateral. Sioux City is a very attractive city for food processing plants, so these types of loans are great for purchasing the expensive equipment needed for these businesses.

Business owners may also consider options like microloans, invoice financing or acquisition loans if they have specific needs that aren’t covered by any of the loans above. A lender will help you compare these types of loans to help figure out which is available for your business. Before signing for a loan, make sure to read over the loan agreement carefully.

How to get a business loan in Sioux City

Before you get a business loan, a bank or lender is going to look in-depth at the financials and history of the business. It will examine credit history as well. Before you apply for a business loan in Sioux City, gather your financial records, including tax returns, and examine your business credit report and individual credit history for accuracy.

Apply for business loans with various lenders in Sioux City to find terms that are most in your favor. Make sure you start early: The process from application to funding can take weeks to months to complete.

Sioux City business loan FAQ

What is a 7(a) loan?

A 7(a) loan is a main loan option offered by the Small Business Administration. Loans are available up to $5 million. Full terms and rates vary depending on your situation.

How do I get money to start a business?

You can get money to start a business in a few ways. Business loans are the most common option. You can also use a credit card or use your own personal savings.

What are typical business loan terms?

It depends on the type of loan. SBA loans are usually between five and 25 years, while short-term loans are between three and 18 months. Long-term loans and equipment financing terms are usually between one and 10 years. Interest rates vary depending on the type of loan and your business performance and creditworthiness.

What business development resources exist in Sioux City?

Organizations that provide resources to Sioux City businesses include IASourceLink and Startup Sioux City. For entrepreneurs who want to expand their skill set, Venture School offers courses.