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

With all that Connecticut has going for it from an economic perspective, small business owners in the state still face many challenges getting small business loans from traditional banks or credit unions. These conventional lending routes have stringent guidelines, requirements, mountains of paperwork, and limited loans to offer small business customers in Connecticut. It’s challenging to get anything from a bank or lender. That’s where AdvancePoint Capital’s business finance specialists can help meet the need of Connecticut businesses and can assist your company in acquiring the money it needs.

How to Get Approved for Small Business Loans in Connecticut: The First Steps

AdvancePoint is a great resource for business owners with a marketplace full of a variety of alternative funding options for small businesses. Experience our customer service and unleash all of the business resources and lending institutions we have at our disposal, so you can access updates to the best products, rates, and terms that meet your business needs as it relates to access to capital.

The 8 Best Small Business Loan Options for Connecticut Small Businesses

1. Long-Term Business Loans for Connecticut Small Businesses

A business lender defines long term business loans as a business loan with a repayment duration greater than two years. Businesses are offered a fixed amount of upfront and charged principal & interest. Unlike a business line, a business owner cannot draw money as you go with long term business loans. Typically, these long term loans are an excellent resource for expansion and growth or help your business finance large projects.

Product Overview

Interest Rate: Starting at 5.50% or treasury index plus 1% to 2.5%
Term: Greater than 2 years and up to 10 years or more
Fees: Origination fees range from 0% to 3% (depends on risk and lender)
Loan Payments: Monthly or bi-weekly
Credit Requirements: Good to excellent credit score required

2. Business Line of Credit for Small Business in Connecticut

A small 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 small business line of credit charges a principal & interest rate. Business lines of credit do have a limit that cannot be exceeded without a lender’s approval and is not open-ended forever. It requires renewal by lenders either semi-annually or annually to be extended. Small business owners choose a business line of credit instead of a loan for the working capital, affordable rates, and flexible terms.

Product Overview

Interest Rate: Starting at 5.50% or treasury index plus 1% to 2.5%
Term: Open revolving line
Fees: Origination fees ranging from 0% to 3%
Payment: Monthly, bi-weekly, or weekly
Credit Scores: Fair to excellent credit score required

3. Short Term Business Loans for Small Business Owner in Connecticut

Short term business loans are defined as loans that are typically repaid with 6 to 18 months. These loans feature a lump sum offered upfront with a fixed payback amount calculated using a factor over a short term of time. Rates are not principal & interest but a “factor rate” that costs more than traditional loans. Most 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 business lenders take in offering this product. These loans are a popular resource for small businesses because of the reduced documentation requirements and laxer tolerances than traditional loans. Working capital is the primary reason for acquiring funding resources for short term loans.

Product Overview

Rates: Factor rates range from 1.09% up to 1.45% or simple interest starts at 1% per month
Term: 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
Credit Scores: All credit types considered from nad to excellent credit score
Loan Process: Application and bank Statements

4. Business Cash Advance for Small Business Owner in Connecticut

Business Cash Advances (BCA) is also known as the Purchase of Future Sales Agreement that advances future sales at a discount to a business. 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. This is not principal & 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 business 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 monthly are more than the set future percentage of monthly sales, the business can request a refund to the business for overpayment so that the set specified percentage of sales collected for the business 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 businesses that can not get a bank loan and a fast way to get funds.

Product Overview

Rates: Ranges from 1.09% up to 1.45%
Term: This is not a loan, so there are no time limits. Payments continue until paid in full based on a 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 Scores: All types of credit considered from bad to excellent
Application Requirements: Application and bank Statements

5. Merchant Cash Advance for Small Business Owner in Connecticut

A merchant cash advance (MCA) is also known as a purchase of future sales agreement that operates very similarly to BCAs, but the most significant difference is the repayment process, which is connected to the future credit card revenues instead of overall sales. MCA’s 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 or profit margins if revenues decline or fluctuate. This product is another fantastic resource for working capital to help your business. 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 cash for the business owner now. This product is popular with small business owners that can not get a bank loan.

Product Overview

Rates: Range from 1.09% up to 1.45%
Term: No time limits
Fees: Origination fees range from 0% to 3%
Payment: Set fixed percentage of future card revenues
Credit Scores: All types of credit considered from bad to excellent
Application Requirements: Application, bank statements, and merchant processing statements

6. Equipment Loans and Financing for Small Businesses Owner in Connecticut

Connecticut businesses that use equipment to operate their business often turn to equipment financing to purchase machinery. Equipment loans secure 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 fast and easy loans to apply for and sometimes can be approved on the spot, although additional time may be required. This product is most popular for industries with a heavy reliance on equipment resources like manufacturing and construction.

Product Overview

Rate: Range from 1.09% up to 1.45%
Term: 2 to 7 years
Fees: Origination fees range from 0% to 3%
Payment: Weekly or daily Monday-Friday fixed ACH
Credit Scores: Fair to excellent credit score required

7. Small Business Administration- SBA Loans for Small Businesses in Connecticut

The United States 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 Small Business Administration’s (SBA) mission is to help American enterprises to start, build, and grow their businesses 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 business lending and decisions under SBA term’s that they would not ordinarily do so on their own and has rights reserved for any recourse need. SBA loans are highly sought after by small businesses, and there are many approved lenders to choose from. SBA Loans application processes can be lengthy, but with an experienced SBA-approved lender to help your business through the application process, the SBA application package can be a smooth and efficient experience. Some SBA Loans due require a business plan.

SBA Loan Product Overview

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 Scores: Good to excellent credit score required

Small Business Administration Financing Programs

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

Small Business Administration SBA 504 – The SBA 504 Loan is a powerful economic development loan program provides small business another avenue for business funding while promoting business economic development and job creation. 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, and or land improvements (and certain soft costs), or can also be used to refinance existing debt on your small business.

Small Business Administration SBA Disaster Loan – SBA Economic Injury Disaster Loans (EIDL) -This type of SBA loan not only provides assistance to Connecticut 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 SBA loan for emergency funding. This SBA loan was designed for small businesses to retain employees and other expenses to stabilize the business during Coronavirus (COVID-19) pandemic.

Small Business Administration SBA Paycheck Protection Program (PPP) – The Small Business Administration (SBA) has established the SBA Paycheck Protection Program loan. This is one of SBA’s relief options that provides loans to small businesses in Connecticut 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 businesses to retain employees and protect jobs during Coronavirus (COVID-19) pandemic.

SBA Express Loans – SBA Express Loans are partially guaranteed by the Small Business Administration (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 actually underwrite and issue the loans.

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

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 determine if you meet the SBA requirements to apply.

U.S. Small Business Administration

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

 

8. Invoice Financing for Small Businesses in Connecticut

Invoice financing advances the outstanding balance to a business owner to increase cash flow speed to the business. This solution provides cash quickly, and there is no need to wait for unpaid 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. This product is common for industries such as manufacturing.

Product Overview

Interest Rate: None
Term: 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
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 Connecticut business – now! Get your business a quote and more information today by filling out our simple form on our website.

The List of the Most Common Reasons Why Connecticut Businesses Need Small Business Loans

  • Working Capital Needs
  • Equipment Purchase and Repair
  • Access Capital for Inventory
  • Business Development and Growth
  • Cash Flow Shortages
  • Emergencies
  • Advertising/Marketing/Customer Acquisition Resources
  • Create jobs, Recruitment of Employees and Training Resources
  • General Business Needs

Frequently Asked Questions by Connecticut Small Businesses About Small Business Funding

Is it hard to obtain a small business loan in Connecticut?

It is not difficult to obtain a business loan in Connecticut as there are many business lenders and funder’s available that service Connecticut.

Can I apply for a business loan using an online business funding website? Is it trustworthy?

The internet can be an invaluable resource when searching for a business lender. In 2020, most businesses 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 businesses to shop, compare, and potentially save significantly.

Are websites trustworthy?

Well, about as trustworthy as visiting any Connecticut small business. You are not evaluating the website as much as you are the company and people you speak and communicate with. The website is merely the port of entry, just as if you were walking into businesses on main street, without leaving the comfort of your home.

Can Connecticut applicants qualify for a small business loan if they have bad credit?

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

Initiatives, Government Financing Programs, Coronavirus (Covid-19) Relief Options, Information, Updates, Resources, and Grants in Connecticut for Small Business

Connecticut Department of Economic and Community Development (DECD)The Office of Small Business Affairs connects business owners with resources that can help spark growth or ease relocation. So whether you’re looking for financing, technical assistance, or just a single point of contact to help you navigate the breadth of services available from federal, state, public/private, and nonprofit organizations, we encourage you to contact the DECD Office of Small Business Affairs.

Connecticut Department of Economic and Community Development – Small Business Express – The Small Business Express program provides an array of financing options and resources to fuel your progress, whether you need an equity investment, capital purchase, or working capital. Through state programs, small businesses can access direct funding from the Department of Economic and Community Development (DECD) and Connecticut Innovations (CI). In addition, Connecticut has a network of local and regional revolving loan funds and a host of business development services.

Types of financial assistance and business development:

Revolving Loan Fund (from $10,000 to a maximum of $100,000)

Job Creation Loan Fund (from $10,000 to a maximum of $300,000)

Community Economic Development Fund (CEDF) – Business Loans – The Community Economic Development Fund or CEDF is a mission-driven, nonprofit, Connecticut economic development organization that provides business loans in disadvantaged communities defined by the state. In other Connecticut municipalities, we lend to business borrowers with household incomes below the state median. CEDF provides term loans up to $250 000, owner-occupied commercial real estate loans up to $500,000, and credit lines up to $250 000. We understand that the needs of each business are unique. CEDF’s goal is to help structure the best funding solution for your business. CEDF also offers business education workshops and seminars.

CEDF Training Workshop Upcoming Events 

How to Apply for Small Business Loans in Connecticut

Customers applying for capital with AdvancePoint Capital can expect a simple, easy, and streamlined loan process with decisions in hours, not days. Our customer service and business finance resources available to us are what we are known for as we have an array of business funding products. Take the first steps and start with this online form, fill out the short application page, provide information, wait a few hours for your approval, and then get your loan! Or you can call toll free phone number and speak to our business development advisors. See the benefits of working with AdvancePoint and take the first steps in the loan process so that you can make a better and informed decision.

The quick, convenient, and straightforward way to get the loan you need for your business – now!

Applicants can contact AdvancePoint Capital and get your quote today by filling out our simple form.

Get Quote Now!

 

* All loans made by either WebBank, an FDIC-insured Utah industrial bank, or Bank of the Internet Federal Bank, an FDIC-insured federally chartered thrift located in California. In connection with the loans, the Banks' underwriting conditions and terms apply.