Entrepreneurs and small businesses have many options for small business loans in the state of Georgia. Traditional bank loans and lines of credit are popular solutions that many small business owners turn to first.
However, savvy business owners can also find funding through nontraditional sources such as merchant cash advances, grants or private equity.
Whichever path to funding you choose, preparation is critical to securing financing. Identifying your funding needs, gathering financial data and comparing various financing options can help put you on the path to success.
Explore small business loans in Georgia, including what to look for and alternative options.
Georgia is home to several metropolitan areas, each with thriving business environments and an abundance of traditional lenders as well as nontraditional financing. Traditional business funding opportunities include commercial bank loans and lines of credit, U.S. Small Business Administration (SBA)-backed loans and loans through online lenders and brokers, such as Swoop.
Traditional small business loans in Georgia fulfill a wide variety of funding needs, including:
These programs don’t fit every type of business or financing need, but they can greatly benefit those that match program requirements.
Grants offer another source of operational funds for Georgia-based businesses that meet specific grant criteria. Government and private grants typically target businesses and industries that help improve a local community. Businesses that impact housing developments, community renewal programs, educational nonprofits and arts organizations are potential candidates for grant funding throughout Georgia.
If your business meets these criteria, here are some grant resources and loan alternatives in Georgia:
The loan application process can be complex, but upfront preparation can help ensure success in your quest for financing. Breaking the journey into five actionable steps can help you spot the best funding opportunity quickly and navigate the application process smoothly.
Be ready to answer questions or provide further documentation of financial security and ability to repay. Traditional lenders, in particular, must check many boxes when underwriting a loan. Providing timely and accurate information to them is crucial to securing funding.
If the lender cannot approve a traditional loan for the amount you need, you can look into nontraditional funding sources that can offer more flexibility. It’s a good idea to ask for feedback on why your loan wasn’t approved so you can prepare for a different outcome if you apply again.
Small business owners nationwide increasingly turn to nontraditional financing sources for startup, growth and working capital funding, and Georgia entrepreneurs are no different. Thanks to online brokerage platforms like Swoop, businesses can apply for traditional loans or explore nontraditional funding sources if a standard business loan isn’t the right fit. With simpler applications, flexible terms and faster approvals than traditional loans, alternative financing can be a beneficial option for small businesses throughout Georgia.
Nontraditional solutions on these platforms can include merchant cash advances and invoice financing that offer a quick cash injection based on current sales volume. Or, for larger financing needs, small business owners can connect with private equity investors for venture and convertible debt funding deals. Crowdfunding and peer-to-peer programs are other funding sources accessible via online platforms. These websites manage the transfer of investment funds, ownership shares and shareholder payments for you.
Business development programs that target Georgia-based businesses are another funding source to consider. The Georgia Department of Economic Development (GDEcD) makes it easy to research different funding opportunities with state, city and municipal funding programs. Their resource list includes government-backed credit initiatives, microloans, rural and community development program loans, plus many grant opportunities.
Business loan applicants with at least a 680 credit score, considered “good,” are positioned to secure a business loan with the best interest rate and terms. However, the personal creditworthiness of the business owners and principals is just one factor in the loan approval process.
Lenders and investors also consider the financial health of the business and company assets that can be used as collateral. Plus, years in business, the owners’ or principals’ industry expertise, the business plan and revenue forecasts can also play a role.
With solid financials and a good credit score, you’re more likely to secure funding with favorable terms. Business owners with less-than-ideal scores can still secure financing in Georgia through alternative loans. These loans generally have higher interest rates and more stringent terms. To avoid these hurdles, you can take steps to strengthen your credit rating and improve your company’s finances before submitting your loan application.
Small business loans in Georgia typically offer interest rates from 6% to 20% on average, although some loans may clock in as low as 3% or as high as 60.9%. Rate qualification is based on several factors, including the loan amount, purpose and repayment term, the business’s financial health, revenue forecast, assets and the creditworthiness of owners and principals. Economic and market conditions also play a role in determining interest rates; for instance, the interest rate of SBA loans is tied to the U.S. Prime Rate.
Risk plays a major role in setting interest rates for a business loan, too. Startups and newer businesses without a long track record or assets to collateralize typically pay higher interest rates. A personal guarantee by the business owner and principals can help lower the interest rate, but not in every case. Loans secured with collateral, such as real estate or equipment loans, tend to have lower interest rates than unsecured loans for working capital and inventory purchases.
Businesses looking for quick financial relief can explore alternatives, such as a merchant cash advance or invoice financing. These programs provide quick access to funds backed by accounts receivable and credit card sales volumes and may offer lower rates than unsecured capital loans.
Most traditional bank and nonbank small business loans in Georgia require anywhere from two weeks to six months for processing and approval. Underwriting timeframes vary depending on the loan type and size and the applicants’ preparedness. Having a complete financial profile of the business and principals ready to submit with the loan application can significantly speed up the process.
Online brokers such as Swoop can provide quicker approvals than commercial banks. These online funding sources work to match applicants with ready lenders and loan programs that fit their needs. Plus, some platforms, including Swoop, connect business owners with alternative funding sources, such as merchant cash advances, invoice funding, equity investors and grants.
Business owners and entrepreneurs should explore and compare the full range of funding options and small business loans in Georgia. If you have an established relationship with a commercial bank or a long track record with your bank, you can start there. They can match you to traditional and SBA-backed loan products that fit your funding needs and might also administer state or municipal loan programs.
Even if you feel a bank deal is good, comparing bank loans with competitive products offered through online broker platforms is smart. On platforms such as Swoop, lenders compete for your business, so there’s a chance you can land better terms or a lower interest rate. You might even find a better financing solution altogether through an alternative product.
As you narrow down funding options, compare loan products, lender reputation, amounts, payment terms and interest rates closely. Also, consider any collateral or personal guarantees required by lenders or equity stakes required by investors. A careful analysis will help you understand the terms and requirements of each and, hopefully, help you spot the most favorable deal for your business.
Ready to take your Georgia-based business to the next level? Find a full range of custom-tailored small business financing solutions with Swoop. This modern online brokerage lets lenders compete for your business, plus connects you to alternative funding sources.
From merchant cash advances and equity investors to grants available to Georgia-based businesses, Swoop helps you find the funding you need to succeed. 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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