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Boston Small Business Loans

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For many business owners in Boston, access to capital and resources for their business is a necessity. To receive the business loans they need to keep their business objectives on track, companies need alternative small business loan solutions they can trust. AdvancePoint Capital offers business loans and short-term cash flow options that keep operations afloat and meet your goals.

Despite Boston’s economic strengths, entrepreneurs here still struggle to get small business loans from traditional banks, lenders, or credit unions. They have stringent guidelines, requirements, mountains of paperwork, and limited loans to offer. It’s tough to get anything from a banking partner or lender. AdvancePoint Capital offers various business financing options to help small business owners in Boston meet their needs.

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Getting Approved for Small Business Loans in the City of Boston: The First Steps

AdvancePoint is an excellent resource for business owners. We have a marketplace full of various alternative funding options for small businesses. Experience our customer service and unleash the business services, network of lenders, and relationships we have at our disposal. Our resources give you access to the best products, rates, and terms that meet your business needs. When it comes to accessing capital and obtaining business loans, AdvancePoint Capital is second to none. Speak to a business representative today.

The 8 Best Small Business Loan Options for Boston Small Businesses

Long-Term Small Business Loans in Boston

long term business loan is defined as a term loan that lasts longer than two years. Businesses are offered a fixed amount of capital upfront and charged principal and interest. Unlike a business line of credit, a business owner cannot draw money as they go with long term loans.

Typically, a long term business loan is used for large capital requirements like business expansion and growth. There are revenue requirements to qualify.

Product Overview (Rates and Terms)

  • Business Loan Amounts: $10,000 to $500 000
  • Interest Rate: Starting at 5.50% or treasury index plus 1% to 2.5%
  • Repayment Terms: 2 to 10 years
  • Fees: Origination fees range from 0% to 3% (depends on risk and lender)
  • Loan Payments: Monthly or bi-weekly
  • Borrower Credit Requirements: Good to excellent credit score required

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Long-Term Business Loans

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Business Lines of Credit

A business line of credit is an open revolving line. This type of funding allows businesses to draw funds when needed on-demand or make purchases—a line of credit charges a principal and interest rate. Business lines of credit have a limit that cannot be exceeded without a lender’s approval and is not open-ended forever. To be extended, the lender is required to renew the line either semi-annually or annually.

The primary reason small business owners choose a line of credit instead of long or short term business loans is the draw feature, affordable rates, and flexible terms.

Product Overview 

  • Credit Limits: $10,000 to $500,000
  • 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 Scores: Fair to excellent credit score required
  • Borrower Loan Application Requirements: Loan application, bank statements

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Business Line of Credit

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Short Term Business Loans

short term business loan is defined as a loan that is repaid within 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 term of time. Rates are not principal and interest but a “factor rate” that costs more than traditional loans.

Most businesses choose a short term loan when they do not qualify for a traditional loan. Short term loans charge more for costs, and the duration of repayments are shorter. The payments are more frequent to compensate for the higher risks lenders take in offering this product.

These loans are a popular resource for small businesses because of the reduced documentation requirements and more relaxed tolerances than traditional loans. Working capital is the primary reason for acquiring funding resources for short term loans.

Product Overview

  • Business Loan Amounts: $10,000 to $500,000
  • Interest Rates: Factors range from 1.09% up to 1.45% or simple interest starts at 1% per month
  • Repayment 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 Scores: All credit types considered
  • Borrower Loan Application Requirements: Loan application, bank statements

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Short Term Business Loans

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Business Cash Advance

Business Cash Advance (BCA), also known as the Purchase of Future Sales Agreement, advances future sales at a discount to a business. The business is responsible for paying back a fixed sum 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. These are 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 bank account each month are more than the set future percentage of monthly sales, the business can request a refund for overpayment. Repayment continues until the payback amount is paid 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 businesses that cannot get a bank loan, need working capital, and need to get funds quickly. This financing option is not a loan. There are revenue requirements to qualify.

Product Overview

  • Factor Rates: Ranges from 1.09% up to 1.45%
  • Repayment Terms: This is not a loan; there are no time limits. Payments continue until paid in full.
  • Fees: Origination fees that range from 0% to 5%
  • Payment: Weekly or daily Monday-Friday fixed ACH
  • Borrower Credit Scores: All types of credit considered
  • Borrower Application Requirements: One-page application, bank statements

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Business Cash Advance

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Merchant Cash Advance

A Merchant Cash Advance (MCA) is also known as a Purchase of Future Sales Agreement. It operates similarly to a BCA. The most significant difference is the repayment process, which is connected to future credit card revenues instead of overall sales. MCAs take a set percentage of future card sales at the time of batch until the advance is paid back in full. Businesses find this valuable when revenues fluctuate, and they don’t want to be locked into a fixed payment that could negatively impact cash flow or profit margins if revenues decline or change.

This product is another great resource for working capital needs. Remember, 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 cash for the business owner. An MCA is popular with small business owners that cannot get a bank loan and need working capital. There are revenue requirements to qualify.

Product Overview

  • Rates: 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 Scores: All types of credit considered
  • Borrower Application Requirements: One-page application, bank statements, merchant processing statements

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Merchant Cash Advance

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Equipment Financing

Boston businesses that require equipment to operate their business often turn to equipment financing to purchase machinery. Equipment financing secures the equipment itself as collateral. Limited paperwork is needed to be approved.

Equipment financing is a fast and easy loan to apply for and may be approved on the spot. Equipment financing is most popular for industries that rely heavily on equipment resources like manufacturing and construction.

Product Overview

  • Rate: 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
  • Borrower Credit Scores: Fair to excellent credit score required
  • Borrower Loan Application Requirements: One-page loan application, equipment invoice

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Equipment Loans

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U. S. Small Business Administration (SBA) Loans for Small Businesses in Boston, MA

The United States Small Business Administration (SBA) is a Federal government agency headquartered in Washington DC. It provides resources, programs, guidelines, and loan guarantees to approved SBA lenders to issue small business loans. 

The SBA’s mission is to help American enterprises start, build, and grow their businesses. The SBA is not a lender. Instead, it 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. SBA loans are highly sought after by small businesses, and there are many approved lenders to choose from. 

SBA loan application processes can be lengthy, but with an experienced SBA approved lender, applying can be smooth and efficient. Some SBA loans require a business plan. Feel free to contact AdvancePoint Capital and speak to a business representative for SBA program eligibility requirements in Boston.

Product Overview

Loan Limits: Up to $5 million

Interest Rates: Starting at 3.50%, treasury index plus 1% to 2.5%  

Terms: 3 to 25 years 

Fees: Origination fees 0% to 3%

Payments: Fixed monthly

Credit Scores: Good to excellent credit score required

U.S. Small Business Administration Business Financing Programs

U.S. Small Business Administration SBA Standard 7 (a) Loan Program – SBA Loan 7(a) is the SBA’s primary program designed to provide financial assistance to small businesses with a good track record. This product is a business term loan. The rate, terms, and conditions may vary by the type of loan given to a small business. Real estate may be used for collateral but is not required. Maximum loan size no more than is 5 million.

U.S. Small Business Administration SBA 504- The SBA 504 Loan is a business term loan and a powerful economic development loan program that provides small businesses another avenue for business loans. It promotes business economic development and job creation. Typically for large capital requirements, the use of proceeds from SBA 504 Loans must be used for fixed assets such as construction, owner-occupied commercial real estate, mixed-use real estate, or land improvements. It can also be used to refinance existing debt on your small business. Real Estate may be required for collateral.

U.S. Small Business Administration SBA Disaster Loan programs – SBA Economic Injury Disaster Loans (EIDL) – This SBA loan typically assists small businesses after natural disasters like tornadoes, wildfires, or floods. However, when the president declared COVID -19 a nationwide health emergency, congress provided small businesses access to relief options like this SBA loan for emergency funding. This SBA loan was designed for small businesses to retain employees and other expenses to stabilize the business during the COVID-19 pandemic.

U.S. Small Business Administration SBA Paycheck Protection Program (PPP) –The Small Business Administration has established the SBA Paycheck Protection Program loan. This is one of SBA’s relief options that provides business loans to small businesses in Boston affected by the COVID-19 crisis and need financial help. Under the right conditions, this SBA loan offers forgiveness. This SBA loan was designed for businesses to retain employees and protect jobs during the COVID-19 pandemic.

SBA Express Loan Programs are business loans partially guaranteed by the SBA with expedited credit decisions. SBA Express loans offer credit decisions in 24 to 36 hours. Like all SBA loans, the SBA doesn’t do any direct lending for SBA Express loans. Instead, the SBA works with a network of approved lenders who underwrite and issue the loans.

Small Business Administration (SBA) Additional Information, Resources and Updates for Boston, MA 

SBA Learning Center – Financing Your Business

Assess your financing needs and discover SBA financing options for your business.

SBA Grants Programs and Eligibility 

Learn about available SBA grants and cooperative agreements to find out if you meet the SBA requirements to apply.

SBA Massachusetts Lender List

Contact AdvancePoint Capital to Speak to a Business Representative About Eligibility Requirements for SBA Small Business Loans

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Small Business Administration (SBA) Loans

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Invoice Financing for Small Businesses

Invoice financing advances the outstanding balance owed to a small business to increase the business’s cash flow speed. This solution provides cash quickly. There is no need to wait for unpaid invoices to be collected and received by the client with invoice financing. Invoice financing has affordable costs ranging from 1% to 2.5% fee off of the face value of the invoice advanced.

This product is standard for industries such as manufacturing. This financing option is not a loan.

Product Overview

  • Interest Rate: None
  • Repayment Terms: Not a traditional loan
  • Fees: 1% to 3% fee based on invoice. Monthly service fees may apply depending on the volume of invoices factored
  • Borrower Credit Requirements: Credit score of the business owner does not matter

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Invoice Factoring

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U.S. Small Business Administration

Start, Grow, and Expand your Business
View the Massachusetts Small Business Resource Guide for information and assistance in growing your local business, exploring funding options, and contracting in Massachusetts.

The fast, convenient, and straightforward way to get the money you need for your small business – now!

Get your quote today by filling out our simple form.

The Most Common Uses of Business Loans for Boston, Ma Small Businesses Are:

  • Working Capital Financing Needs
  • Equipment purchase and repair
  • Access capital for inventory
  • Business development and growth
  • Cash flow/revenue shortages
  • Emergencies business expenses
  • Advertising/marketing/customer acquisition resources
  • Create jobs, employee recruitment, and training resources
  • General business expenses and needs (operating expenses)

Frequently Asked Questions by Boston, MA Small Businesses

It is not difficult to obtain a business loan in Boston as many business lenders and funders are available that service Boston.

The internet can be an invaluable resource when searching for a business lender. Most businesses now search the internet for business lending websites to find reviews on a business lender, ask for more information, and apply for a quote on a business lender website. This allows businesses to shop, compare, and potentially save significantly.

Well, they are as trustworthy as visiting any Boston small business. You are not evaluating the website as much as you are the company and people you communicate with. The website is merely the port of entry without leaving the comfort of your home. Both in-person in Boston or on a website, it’s the same. The businesses you deal with must earn your trust by treating you well, providing outstanding customer service, and offering products and terms to meet your business’s needs.

There are many business lending options available for small business owners with bad credit in Boston. Financing options will vary depending on the risks associated with this type of funding and impact terms, pricing, and costs.

Unfortunately, AdvancePoint Capital does not offer startup financing at this time.

Initiatives, Information, State and Federal Government Financing Programs, Coronavirus (Covid-19) Relief Options, Resources and Grants in Boston, Massachusetts for Small Business

City of Boston, Massachusetts Small Business Development

 This department provides Boston small business owners and entrepreneurs with the tools and guidance to start, grow, and build a business successfully.

COVID-19 Resources and Guidance for Businesses in Boston, Massachusetts 

COVID-19 Grants for Massachusetts and Boston Small Businesses

The Baker-Polito Administration has made $50.8 million in grants available to support small businesses, microenterprises, and their employees, families, and communities. Massachusetts Growth Capital Corporation (MGCC) will be administering these funds to businesses experiencing economic hardship and a loss of income due to the COVID-19 pandemic.

Mass.gov Learn About Business Funding and Financing Programs

Find resources and information on a wide range of funding and financing options available to Massachusetts businesses. Each loan, grant, and venture capital program is different. Make sure you research all available options to find the one that’s right for your business. Depending on the type of funding you need, what industry you’re in, and other factors, there are several ways you can get financial support.

Business Loans for Boston

Boston Local Development Corporation – BLDC loan applicants searching for business loans include businesses located in the City of Boston, those seeking to relocate, or those creating a new enterprise in the City. The borrower may be a corporation, LLC, partnership, sole proprietor, or in some instances, a realty trust.

Boston Industrial Development Financing Authority – Are you a Boston, Massachusetts non-profit or a manufacturer interested in bonds? By utilizing BIDFA, qualified borrowers can finance their capital needs through the issuance of tax-exempt debt, generally resulting in significant interest cost savings.

Business Loans for Boston – Economic Development Resources for Boston Businesses

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