Small business loans Nevada

While every lender will have their own application process, applying for a small business loan in Nevada will generally follow these steps:

1. Assess your business’s financial needs: Ask yourself why you need the loan, how much you need and how much you can realistically afford to repay. 
2. Determine your qualifications: Check your credit score, as this is a major way that lenders determine whether or not to approve a loan application. Develop a thorough business plan to help make your case and take a good look at your projected financials and financial history.
3. Research lenders: Once you know how much money you need and what you need it for, you can look for lenders that offer the best programs for your needs. Compare rates, terms and fees as well as customer reviews for other businesses in your industry.  Swoop can help find local and national lenders as well as loan programs that meet your needs. 
4. Gather required information: Most lenders will ask for documentation about your business and its financials, including financial statements, tax returns, your business plan, personal identification and licenses. Make sure you have everything ready to go to make the process smoother.
5. Fill out the application: Depending on the lender you’ve chosen, you may be able to fill out an online or digital application, although some may ask you to submit a hard copy. Make sure you’ve filed it out completely.
6. Review the application: You may want to enlist the help of a business consultant or a business accountant to make sure you’ve answered all the questions and attached the right paperwork. Many lenders will offer an account specialist to help you with the process, too.
7. Be patient: After you’ve submitted your application, it can take some time for the lender to review it and make a decision. Always respond as quickly and thoroughly as possible to their requests for more information or documentation. 
8. Carefully review any loan offers: If your loan application is approved, take the time to review the loan offer to fully understand the terms and conditions, including fees, interest rates and repayment due dates. Use a loan calculator to help determine how much you’ll spend on the full loan as well as your monthly payment. 
9. Spend the money as intended: Follow the conditions set in the loan agreement, including when you need to start repaying the loan and how you can spend the funds. It’s important not to default on a loan, as that can damage your credit score and your ability to get funds in the future.  

Again, different lenders and loan programs may have different steps to their application process, but understanding what to expect can help you be prepared and streamline the process. 

What alternative business financing options are there?

There are many reasons you might decide not to get a business loan, including qualifications, affordability or how quickly you need the funds. Business owners in Nevada have many other funding options available, including:

• Invoice financing where you “sell” your business’s unpaid invoices to a third-party financial institution for a lump sum.
• Merchant cash advances where a third-party service provides you with cash that you repay over time with a percentage of your future credit card income. 
• Business lines of credit which offer your business a revolving line of credit for managing cash flow and short-term expenses. 
• Business credit cards which allow you to pay for everyday business expenses, which can help open up cash flow. 
• Crowdfunding allows businesses to raise funds from a large number of individuals, usually online.
• Venture capital/angel investors for high-growth startups who are willing to sell equity ownership to individual investors.

Every business will have its own funding needs and you may find a combination of the above methods works best for you. 

What credit score do I need?

While credit scores aren’t the only qualifications a lender will use to determine whether or not to lend to you, they are one of the most important indicators of creditworthiness. A higher credit score not only increases your chances of being approved for a loan; it also opens you up to lower interest rates and more favorable terms.

Credit scores in the “good” range (700 or higher) are most likely to be able to secure a traditional business loan and get lower interest rates on other types of loans. If your credit score is between 650-680, you may still qualify for many SBA loan programs, although you may be required to supply a downpayment, collateral or personal guarantee to secure the loan. Alternative lenders will sometimes offer loans to those with credit scores as low as 550, but they can charge very high interest rates to cover their risk in doing so.

Your business plan, business history and financials can also help you make a case for why you deserve a loan, so make sure you are ready to present those to your lender. You can also work on your credit score over time and wait to apply for a business loan until you have improved the score. 

What are the typical interest rates on a business loan in Nevada?

Interest rates for business loans in Nevada vary due to a few factors, including:

• Borrower qualifications
• Lender requirements
• Type of loan
• Amount of loan
• Overall economic conditions

For instance, SBA loans are tied to the U.S. Prime rate, which fluctuates based on the market. In 2023, most SBA loans averaged interest rates between 11.5-16%. Traditional loans for businesses in 2023 averaged between 7-9%, while alternative loans and online loans had a much wider average variance: 3.5-60.9%. Some online loans will offer interest rates as high as 99% for borrowers deemed to be more risky to lend to.

It’s important to understand your lender’s rates and terms before signing any loan agreement. Again, it’s a good idea to use a loan calculator to determine if you can afford a loan. You can always wait to apply until your qualifications can get you better interest rates. 

How long does it take to get funds?

From the minute you submit your application until the funds are available in your account can vary widely depending on the lender, type of loan, amount of loan and your qualifications. Most traditional loans have longer processing times, which can take several weeks or even months due to underwriting and approval processes. SBA loans can take up to six months for the funds to land in your account. 

In contrast, online lenders and alternative financing options may offer quicker application, approval and funding timelines. Some lenders can provide a decision within a few days and, if you’re approved, the loan funds may be disbursed very quickly after that.

To speed up the process as much as you can, it’s important to have your financial documents in order and be responsive to any requests from the lender.