Starting or expanding your small business in Atlanta, Georgia takes planning, determination and – if we’re being honest – funding. Luckily, entrepreneurs and small business owners have plenty of financing options to choose from.
From bank loans and lines of credit to venture capitalists and merchant cash advances, there are plenty of ways for entrepreneurs to secure small business loans in Atlanta.
At first glance, the small business loan process can seem complex, but it doesn’t have to be complicated. Taking the time to outline your financing needs, explore lender options, ask the right questions and prepare needed documents puts you on the path to success, whatever your financing goals.
Explore small business loans in Atlanta, tips on how to find the right financing for your business and other types of financing in our guide below.
Atlanta’s vibrant business environment attracts all types of business lenders and investors. Entrepreneurs can tap a full range of traditional small business loans in Atlanta, such as commercial bank loans and lines of credit, federally-backed U.S. Small Business Administration (SBA) loans and nonbank business loans from online brokers such as Swoop.
Traditional small business loans in Atlanta cover a full range of business funding needs, such as:
In addition to traditional bank, nonbank and SBA loans, business owners in Atlanta can raise funds through various nontraditional methods including merchant cash advances, invoice funding and equity financing through private investors.
Local business development programs are another funding source for businesses throughout the Atlanta region. Programs such as the Atlanta Catalyst Fund, Atlanta Cares Revolving Loan Fund (ACRLF), Atlanta Street Vendor Loan Fund and the Atlanta Forward Loan Fund support various types of businesses in and around Atlanta. These programs don’t fit every type of business or financing need, but can greatly benefit those that fit program requirements.
Business grants offer another funding option for small businesses and nonprofit organizations that meet specific grant targets and requirements. Some business grants in Atlanta are backed by the federal or state government while others are administered through corporations and private foundations. Grants are very popular because they don’t have to be paid back, but this also means that they’re highly competitive programs.
Most grants seek to fund businesses that help improve the local community. If your business focuses on housing developments and renewal programs, or if you run a nonprofit educational or arts organization, you might be eligible for grant funding in Atlanta.
Here are a few grant resources to explore if your business fits these criteria.
Whatever your financing goals and needs, securing a small business loan in Atlanta takes time and preparation. Although every lender will have its own processes and procedures, these five simple steps can help you prepare for your loan application.
Step 1: Determine your funding needs, including the amount you need to borrow and what you’ll spend it on.
Step 2: Analyze your business finances, credit eligibility and ability to repay.
Step 3: Research lenders, loan options and rates.
Step 4: Gather your documents, such as tax returns, business financial statements and bank statements.
Step 5: Complete and submit your loan application.
Following the process and performing due diligence in selecting the right type of loan and lender for your needs is essential to securing a loan quickly and for the best possible rate and terms. Being prepared can also speed up the application process because the lender won’t need to come back to you for more information. Stay responsive with your lender during the process to ensure you have a quick turnaround for your loan approval.
Savvy Atlanta-area entrepreneurs can tap into nontraditional financing to fund business startups, working capital and growth needs. Some options, such as private equity investment, invoice financing, convertible debt and merchant cash advances have been around for years. Thanks to web-based funding platforms, these options are now more accessible to small businesses.
Newer alternative funding sources include crowdfunding and peer-to-peer programs, also called marketplace lending. These financing alternatives connect businesses to individual or group investors via websites that manage investment fund transfers, ownership shares and shareholder payments.
Alternative financing sources can benefit Atlanta-area businesses in many ways. Most have simpler applications, quicker approvals, more flexible terms and faster access to cash versus traditional business loans. However, some may come with higher interest rates or shorter repayment terms, so any borrower needs to review terms and conditions before they sign on the dotted line.
Credit requirements for business loans in Atlanta vary based on the loan type, financing need and financial health of the business. The business owners’ creditworthiness is an important factor in loan approval since small business loans often require a personal guarantee.
Business owners and principal partners with credit scores of 680 or above are positioned for success when applying for a business loan in Atlanta. Combined with solid business financials and a sound business plan, a 680 or above credit score can help secure a business loan with the best possible terms.
It is possible to secure traditional bank and nonbank small business loans in Atlanta if the owners or principal partners don’t quite meet the 680 “good” credit score threshold. Lenders also examine the business’s financial health, assets and revenue projections when making lending decisions. If the business is sound, you can land a small business loan with less-than-ideal credit scores, but with a higher interest rate and tighter terms.
Alternative or online lenders may be willing to lend to borrowers with lower credit scores – sometimes as low as 550. However, they will often assess higher interest rates to make up for the risk they take on in lending to borrowers who may be considered less creditworthy.
If you plan to apply for a business loan soon, start shoring up your credit score and business finances now to ensure success. You can also use other types of financing or funding to help you keep your business running until you’re ready to apply for a loan.
Small business loans in Atlanta typically carry interest rates from 6% to 20%. Rates are applied based on a business’s financial health, the purpose and amount of the loan and the creditworthiness of the owners or principals. Other factors such as market conditions also play a role.
All small business lenders consider risk when reviewing loans and will assess a higher interest rate based on this risk level. New or struggling businesses pay higher interest rates than established businesses, even if the owner or principals have good credit scores because their ability to repay the loan is considered unproven.
Asset-backed business loans, such as real estate or equipment loans tend to have lower interest rates since they are secured by collateral with value. Unsecured loans for startup funding, expansion and working capital have higher interest rates.
Lower-cost loan alternatives such as merchant cash advances and invoice funding–also called factoring–may be good options for businesses that need occasional quick funding. These programs provide cash flow backed by accounts receivable or average credit card sales volumes and typically charge a lower rate than standard working capital or cash flow loans.
Processing and approval times for traditional bank, nonbank and SBA loans range from two weeks to six months, depending on the type and size of the loan and the application documents.
To expedite the loan process, small business owners should prepare business financials and check personal credit scores before submitting an application.
Online brokers such as Swoop streamline the process and typically can provide approvals for many types of loans faster than commercial bankers. Swoop also offers quick-funding loan products such as merchant cash advances and invoice funding. Some even connect small businesses to grant opportunities and equity investors–something commercial banks don’t do.
To secure funding at the best possible rate, Atlanta-area business owners should explore all their options. If you have a good relationship with your bank, start there. Compare their offerings and rates with online lenders, state and local business development loans, SBA programs and grant opportunities. Don’t forget to check into nontraditional funding sources such as crowdfunding and peer-to-peer platforms, merchant cash advances, invoice factoring and equity investors.
As you narrow your small business financing choices, be sure you understand and compare the loan requirements, amounts, terms, rates, required security or fees and personal guarantees. A side-by-side comparison of small business financing options helps you spot the differences in different loan products and lenders so you can choose the best fit for your Atlanta-based business.
Swoop’s online platform makes it easy for small business owners in Atlanta to search for tailored funding solutions through loans, equity, grants and alternative sources such as merchant cash advances and invoice funding.
See how Swoop helps you tap the funding needed to grow your Atlanta-area business, plus save on all types of business expenses, from banking fees to utility bills. Get started today.
Daire made it happen! There is no doubt that Swoop sped up the process and found lenders that worked to our time scale rather than the other way round
Joint owner, F45 Virginia
Swoop was actually very helpful in helping us get our initial fundraising in place. Swoop was able to connect us with investors, with grant financing options and debt financing options.
Founder, SingleKey
Pedja was amazing. Super supportive, understanding of our needs and wasn't pushy at all. We've been going back and forth with Swoop for over a year inquiring about different financing options and they were patient until we were ready!
F45 Multi-studio owner
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