For many business owners in the Baltimore area, access to funds and other business resources is a necessity. To receive adequate business funding, they need to keep their business objectives on track; entrepreneurs need business funding solutions that they can trust. AdvancePoint Capital offers small business loans and short-term cash flow options that keep operations afloat and meet your goal.
With all that the Baltimore area has going for it from an economic perspective and growth potential, entrepreneurs in Baltimore still face many challenges getting business loans from traditional banks, small business lenders, or a credit union, for that matter. This route is challenging because conventional lenders have stringent guidelines, requirements, mountains of paperwork, and limited bank loans to offer to business customers. It’s challenging to get anything from a bank or credit union. That’s where AdvancePoint Capital’s business resources and experience can help companies by offering a variety of business financing options in your search for business funds.
How Do I Get Approved for Small Business Loans in Baltimore, Maryland?
AdvancePoint is an excellent resource for Baltimore business owners. We have a marketplace full of a variety of alternative funding options for small business owners in need of capital. Experience our customer service and unleash all of the business services, a network of business lenders, and relationships we have at our disposal, so you can access the best products, rates, and terms that meet your business needs. AdvancePoint Capital has a 4.7 out of 5-star satisfaction rating with Google. Contact us and speak to a representative.
The 8 Best Small Business Loan Options for the Baltimore, MD Area
1. Long-Term Business Loans for Small Businesses in Baltimore, MD
A business lender defines Long term business loans as term loans with a duration of greater than two years. Business owners are offered a fixed amount upfront and charged principal & interest. Unlike a business line, you cannot draw money as you go. Typically, long term business loans are a great business funding tool used for large capital needs like business expansion and growth or finance large projects.
Interest Rate: Starting at 5.50% or treasury index plus 1% to 2.5%
Terms: Long term is defined as greater than 2 years and up to 10 years or more
Fees: Origination fees range from 0% to 3%
Payments: Monthly or bi-weekly
Borrower Credit History: Good to excellent credit score required
2. Business Lines of Credit for Small Businesses in Baltimore
Business lines of Credit are open revolving lines. This type of funding allows businesses to draw funds when needed on-demand or make purchases. Business lines of credit charge principal & interest and have a limit that cannot be exceeded without a lender’s approval. The credit line is not open-ended forever and requires renewal by lenders either semi-annually or annually to be extended. The primary reason businesses choose a credit line instead of a term loan is the draw feature, affordable rates, and flexible terms. This product is popular with Baltimore businesses that need working capital and need a fast way to get funds.
Interest Rate: Starting at 5.50% or treasury index plus 1% to 2.5%
Repayment Terms: Open revolving lines of credit
Fees: Origination fees ranging from 0% to 3%
Payment: Monthly, bi-weekly, or weekly
Borrower Credit History: Fair to excellent credit required
3. Short Term Business Loans for Small Businesses
Short term business loans are defined as loans that are typically repaid with 6 to 18 months. These loans feature a lump sum offered up front with a fixed payback amount calculated using a factor over a short period. Rates are not principal & interest but a “factor rate” that costs more than traditional loans. Most Baltimore businesses choose short term loans when they do not qualify for traditional loans. Short term loans charge more for costs and are shorter in the duration of repayment, and the payments are more frequent to compensate for the higher risks lenders take in offering this product.
Interest Rate: Factors range from 1.09% up to 1.45% or simple interest starts at 1% per month
Terms: 6 to 18 months in duration (typically 12 months or less)
Fees: 0% to 5% origination fees
Payments: Weekly, Bi-Weekly, and in some cases daily Monday-Friday
Borrower Credit History: All credit types considered from bad to excellent
4. Business Cash Advance
Business Cash Advances (BCA) is also known as the Purchase of Future Sales Agreement that advances future sales at a discount. The business is responsible for paying back a fixed payback known as a specified amount, which is higher than the amount that was advanced to the company. This difference between the advance amount and the payback amount is called the “factor rate or cost,” which is a fixed cost; it is not principal and interest costs. The advance is repaid by taking a fixed percentage of future overall deposits called the specified percentage. The payments are collected by an ACH fixed daily or weekly payment deducted from a bank account based on the specified percentage of future sales. At the end of every month, reconciliation can occur. If the fixed payments taken out of the account monthly are more than the set future percentage of monthly sales, the business can request a refund for overpayment so that the set specified percentage of sales collected matches the revenue volumes. Repayment continues until the payback amount is paid back in full. There is no time limit with advances as the fixed payback percentage ever changes due to fluctuating revenue. This product is popular with Baltimore businesses that can not get a traditional bank loan. Accepting credit cards from customers at your business is not a requirement.
Factor Rates: Ranges from 1.09% up to 1.45%
Repayment Terms: This is not a loan, so there are no time limits. Payments continue until paid in full based on specified percentage collection method and are dependent on future revenues
Fees: Origination fees that range 0% to 5%
Payment: Weekly or daily Monday-Friday fixed ACH
Credit History: All types of credit considered from bad to excellent
5. Merchant Cash Advance
A merchant cash advance (MCA) is also known as a purchase of future sales agreement that operates very similarly to a BCA. However, the most significant difference is the repayment process, which is connected to the future credit card sales instead of overall sales. Merchant cash advances take a set percentage of future credit card sales at the time of batch until the advance is paid back in full. Businesses find this valuable when they have fluctuating revenues and don’t want to be locked into a fixed payment that could negatively impact cashflow or margins of profit if revenues decline or fluctuate. This product is another great resource for working capital needs. Reminder, a merchant cash advance is not a loan, but an advance, by selling a portion of the business’s future sales at a discount to a funder in exchange for money. This product is popular with Baltimore entrepreneurs who can not get a traditional loan, accept most sales by credit cards, and need working capital. This financing option is not a bank loan.
Rate: Range from 1.09% up to 1.45%
Repayment Term: No time limits
Fees: Origination fees range from 0% to 3%
Payment: Set fixed percentage of future card revenues
Borrower Credit History: All types of credit considered from Bad to excellent
Paperwork: 1-page application, business bank statements, merchant credit card sales processing statements
6. Equipment Loans and Financing for Small Businesses in Baltimore, MD
Baltimore area businesses that require equipment to operate often turn to equipment financing for their equipment purchases. Equipment financing secures the equipment itself as collateral. The good news is little paperwork is necessary, such as a one-page application and bank statements, to get approved. Equipment loans are a fast and easy way to apply for and sometimes can be approved on the spot, although additional time may be required. Equipment loans are most popular for industries with a heavy reliance on equipment resources like manufacturing and construction.
Rates: Range from 1.09% up to 1.45%
Repayment Terms: 2 to 7 years
Fees: Origination fees range from 0% to 3%
Payment: Weekly or daily Monday-Friday fixed ACH
Credit Requirements: Fair to excellent credit required
Application Process/Documents: 1-page loan application and equipment invoice
7. U. S. Small Business Administration (SBA) Small Business Loans in Baltimore
The U. S. Small Business Administration (SBA) is a Federal government agency, Headquartered in Washington DC, that provides resources, programs, guidelines, and loan guarantees to approved SBA Lenders to issue loans to small businesses. The SBA’s mission is to help American enterprises to start, build, and grow their business successfully. The SBA is not a lender. The Small Business Administration (SBA) provides a guarantee that gives the approved SBA lender the ability to take on the risk of lending and decisions under SBA term’s that they would not ordinarily do so on their own and has all rights reserved for any recourse need. SBA loan application processes can be lengthy, but with the help of an experienced SBA-approved lender to help your business through the application process, the SBA application package can be a smooth and efficient experience.
SBA Product Overview
SBA Loan Amount Limits: Up to 5 million
SBA Interest Rates: Starting at 3.50%, treasury index plus 1% to 2.5%
SBA Terms: 3 to 25 years
SBA Fees: Origination fees 0% to 3%
SBA Payments: Fixed monthly
SBA Credit Requirements: Applicants need a good to excellent credit score
SBA Application Process/Documentation: SBA loan application, business assets, and numerous financial statements
U. S. Small Business Administration (SBA) Small Business Funding Programs
SBA Standard 7 (a) Business Loan Program – SBA Loan 7(a) is the SBA’s primary program is designed to provide financial assistance to small business with a good track record. This SBA product is a business term loan. Like the guaranty percentage and amount, the rate, terms, and conditions may vary by the type of loan to a business. Real estate may be used for collateral but is not required. SBA Standard 7 (a) Loan amount allows for up to 5 million.
SBA 504 – The SBA 504 Loan is a business term loan and a powerful economic development loan program that provides business another avenue for business loans while promoting business economic development and equity. SBA 504 is typically for large capital needs like real estate loans. The SBA 504 Loan proceeds must be used for fixed assets such as construction, owner-occupied commercial real estate, or mixed-use real estate loans. Common uses for SBA 504 loans include; repair facilities, land improvements (and certain soft costs), growth and expansion or can also be used to refinance existing debt. Down payment may be needed. Loan amounts up to 5 million.
SBA Disaster Small Business Loan Program – SBA Economic Injury Disaster Loans (EIDL)-This type of loan not only provides assistance to Baltimore small businesses after natural disasters like tornadoes, wildfires, or floods but also when Coronavirus (COVID -19) was declared a nationwide health emergency, congress provided small businesses access to relief options like this loan for emergency funding. SBA EIDL loans are designed for small businesses to retain employees and other expenses to stabilize the business during Coronavirus (COVID-19) pandemic.
SBA Paycheck Protection Program (PPP) – The Small Business Administration (SBA) has established the SBA Paycheck Protection Program loan in response to COVID-19. This SBA relief option provides small business loans to small businesses in Baltimore, Maryland, affected by the Coronavirus (COVID-19) crisis and needs financial help. Under the right conditions, this SBA loan offers forgiveness. This SBA loan was designed for business owners to retain employees and protect jobs during Coronavirus (COVID-19) pandemic. The new round of PPP will allow for loans to 2 million.
U. S. Small Business Administration (SBA) Additional Information, Resources, and Updates for Small Businesses in Baltimore, Maryland
SBA Learning Center-Financing Your Business – Assess your financing and working capital needs and discover SBA financing options.
SBA Grants Programs and Eligibility – Learn about available SBA Loans, grants, and cooperative agreements to find out if you meet the SBA requirements to apply.
U.S. Small Business Administration
Start, Grow, and Expand your Business
View the Maryland Small Business Resource Guide for information and assistance in growing your local business, exploring funding options, and contracting in Maryland.
8. Invoice Financing for Small Businesses in Baltimore, MD
Invoice financing advances the outstanding balance to a business to increase cash flow speed to the business. This solution provides money quickly, and there is no need to wait for outstanding invoices to be collected and received by the client with invoice financing in place. Invoice financing has affordable costs ranging from 1% to 2.5% fee off of the face value of the invoice advanced.
Interest Rates: None
Repayment Terms: Not a traditional loan
Fees: 1% to 3% fee based on the invoice. Monthly service fees may apply depending on the volume of invoices factored
Borrower Credit Requirements: The credit score of the business owner does not matter
The fast, convenient, and straightforward way to get the business funding you need for your Baltimore business – now! Get your business a quote and more information today by filling out our simple form on our website.
The Most Common Uses of Loan Proceeds for Baltimore Businesses
- Working Capital
- Equipment Purchases and Repair
- New Business Opportunity Project Cost
- Business Development & Growth
- Cash Flow
- Emergencies Business Expenses
- Advertising / Marketing / Customer Acquisition Goals
- Employment-Create jobs, Recruit Employees and Training Resources
- Buyout a partner
- Office Equipment
- General Business Needs and/or Expenses
Frequently Asked Questions Related to Small Business Funding in the City of Baltimore, MD
Is it hard to obtain funds and/or small business loans in the Baltimore area?
It is not difficult to obtain business loans in Baltimore as there are many business lenders and funder’s available that service the greater Baltimore area.
Can I apply for business financing using an online business funding website? Is it trustworthy for customers?
The internet can be an invaluable resource when searching for a business lender. In 2020, most small business owners now search on the internet for business lending websites to glean additional information, find reviews on a business lender, and in many cases, inquire about getting more information and apply for a quote on a business lender website. This allows you to shop, compare, and potentially save significantly on the internet without leaving the comfort of your home.
Are websites trustworthy?
Well, about as trustworthy as visiting any Baltimore small business. You are not evaluating the website as much as you are the company, the service, and the people you speak and communicate with. The website is merely the port of entry, just as if you were walking into a business on main street, without leaving the comfort of your home.
Can a small business owner qualify for business financing if they have bad credit? What credit score is needed to get a small business loan?
There are many lending options available for small business owners with bad credit in Baltimore. Credit scores can be as low as 500 and below, but financing options will vary depending on the risks associated with this type of funding and will impact terms, pricing, and costs. Contact us for business funding options to consider.
Does AdvancePoint Capital offer any startup capital and/or funding?
Unfortunately, AdvancePoint Capital does not offer startup business loans at this time in the Baltimore area. The small business must be in business, generating revenue for at least six months to qualify for loans.
How do I qualify for a minority business loan in Baltimore?
MSBDFA promotes the viability and expansion of businesses owned by economically and socially disadvantaged entrepreneurs in Baltimore.
Which bank is best for business loans in Baltimore?
Many banks in Baltimore specialize in business loans, but we found that a bank like The Harbor Bank of Baltimore is laser-focused on small business owners in Baltimore.
Initiatives, Guides, Information, State and Federal Government Funding Sources, Grants, Coronavirus (Covid-19) Disaster Loans, Business Resources and News, Events, and Updates in the City of Baltimore
Baltimore Community Lending
875 Hollins St # 301, Baltimore, MD 21201
Baltimore Community Lending is a US Treasury certified nonprofit Community Development Financial Institution. BCL provides loan capital to small real estate developers and small business owners in Baltimore City who have no relationship with or cannot get a loan from a bank and are committed to developing underserved neighborhoods. We work with the government, foundations, financial institutions, community stakeholders, anchor institutions, and small business owners early in the planning process to provide small-to-midsize capital solutions leading to a more diverse and economically balanced Baltimore.
Baltimore County Government – Department of Economic and Workforce Development – Finance and Loan Programs
100 South Charles Street Suite 1201 Baltimore, MD 21201
Baltimore County offers direct financing programs to encourage investment and job creation in the County. Private sector financing is leveraged with the Baltimore County gap and flexible financing programs to help businesses expand and grow. Additionally, the County can help you access state, federal and private financing for new and expanding businesses.
Baltimore County Government | Department of Economic and Workforce Development COVID-19 Relief Loan Program – The COVID-19 Relief Loan Program provides access to capital for Baltimore County businesses that have been adversely affected by COVID-19. This program offers low-interest loan amounts from $50,000 to $250,000 to Baltimore business owners.
Maryland Department of Commerce
401 E.Pratt Street Baltimore, MD 21202
As the state’s primary economic development agency, the Maryland Department of Commerce stimulates private investment and create jobs by attracting new businesses, encouraging the expansion and retention of existing companies, and providing workforce training and financial assistance to Maryland companies.
Maryland Small Business Development Financing Authority (MSBDFA) – MSBDFA promotes the viability and expansion of businesses owned by economically and socially disadvantaged entrepreneurs.
Maryland Small Business Development Financing Authority (MSBDFA) COVID-19 Emergency Relief Loan Fund – Beginning July 20, 2000, this MSBDFA Fund provides emergency financial relief to Baltimore businesses that have experienced economic hardship due to the COVID-19 pandemic crisis with low interest rates and low documentation loans to eligible Baltimore, Maryland small business. Five-year term loans with amounts ranging from $25,000 to $200,000 will be available with an interest rate of 0% for the first 12 months and 2% for the remaining term of the loan. Click here for program details and guidelines.
The Harbor Bank of Maryland – The Harbor Bank of Maryland Community Development Corporation is a 501(c)(3) non-profit and U.S. Treasury Certified Community Development Financial Institution (CDFI) focused on accelerating development in underinvested communities throughout Greater Baltimore.
How to Apply for Business Loans in Baltimore, Maryland
Customers applying for capital with AdvancePoint Capital can expect a simple, easy, and streamlined approval process with decisions in hours, not days. Follow us and experience our customer service, business funding resources, and an array of funding products to meet your goals. AdvancePoint Capital has a 4.7 out of 5-star satisfaction rating with Google.
Take the first steps, and start with this online form; fill out the short application page, provide information, wait a few hours for your feedback and then get your loan options! Or you can call our toll free phone number and speak to a representative. Feel free to provide your email address and ask to be placed on our email list and stay informed. Contact us, try out our service and see the benefits of working with AdvancePoint and take the first steps in the approval process, so you can make a better and more informed decision about financing and getting loans.