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Delaware Small Business Loans

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

Despite Delaware’s economic strengths, entrepreneurs in this state still face many challenges getting small business loans from traditional banks, lenders, or credit unions. They have stringent guidelines, requirements, mountains of paperwork, and limited loans to offer small business customers.

It’s tough to get anything from a bank or lender. AdvancePoint Capital offers various business financing options to help small business owners in Delaware meet their needs.

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Getting Approved for Small Business Loans in Delaware: The First Steps

AdvancePoint is an excellent resource for business owners. We have a marketplace full of 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 Small Businesses in Delaware

Long-Term Small Business Loans

The definition of a long term business loan is a loan that lasts more 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.

Product Overview

  • 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 principal and interest. 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 lenders must renew it either semi-annually or annually.

The primary reason a small business chooses a line of credit instead of a term loan is the draw feature, affordable rates, and flexible terms.

Product Overview 

  • Credit Limits: $10,000 to $100,000
  • 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

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Business Line of Credit

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Short Term Business Loans

short term business loan is a loan that is typically 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 short term loans when they do not qualify for traditional loans. Short term loans charge more for costs, have a shorter repayment duration, and the payments are more frequent to compensate for the higher risks lenders take by offering this product. 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

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Short Term Business Loans

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Business Cash Advance

Business Cash Advance (BCA) is also known as the Purchase of Future Sales Agreement. It 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 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 amount is paid in full, and there is no time limit with advances as the fixed payback percentage is ever-changing due to fluctuating revenue.

Product Overview

  • 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 a specified percentage collection method and are dependent on future revenues.
  • 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

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Business Cash Advance

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Merchant Cash Advance

Merchant Cash Advance (MCA) is also known as a Purchase of Future Sales Agreement and operates very similarly to BCAs. 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 their revenues fluctuate. 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 great resource for working capital needs. Remember, a merchant cash advance is not a loan, but an advance, by selling a portion of the businesses’ future sales at a discount to a funder in exchange for cash for the business owner. This product is popular with small businesses that can not get a bank loan and need working capital. This financing option is not a loan. 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

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Merchant Cash Advance

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Equipment Financing

Delaware 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 necessary 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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SBA Loans

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 successfully start, build, and grow their businesses.

The SBA is not a lender. 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 independently. SBA loans are highly sought after by small businesses, and there are many approved lenders to choose from. The SBA loan application process can be lengthy, but an experienced SBA approved lender can help your business navigate the process with ease.

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

Small Business Administration Loan 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. Like the guarantee percentage and amount, the rate, 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.

U.S. Small Business Administration SBA 504- The SBA 504 Loan is a business term loan and a powerful economic development loan program. It provides small businesses another avenue for business financing while promoting business economic development and job creation. Typically for large capital requirements, the use of SBA 504 Loans proceeds must be used for fixed assets such as construction, owner-occupied commercial real estate, mixed-use real estate, or land improvements (and certain soft costs). 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 type of SBA loan usually assists Delaware small businesses after natural disasters like tornadoes, wildfires, or floods. However, when 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 the COVID-19 pandemic.

U.S. 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 Delaware affected by the Coronavirus 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 is a loan program that is 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, they work with a network of approved lenders who underwrite and issue the loans.

Small Business Administration (SBA) Additional Information, Resources and Updates for Small Businesses in Delaware

SBA Learning Center – Financing Your Business

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

SBA Grants Programs and Eligibility 

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

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Small Business Administration (SBA) Loans

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Invoice Financing for Delaware Small Business

Invoice financing advances the outstanding balance owed to a small business to increase its 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 typical for the manufacturing industry. 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 the 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 Delaware Small Business Resource Guide for information and assistance in growing your local business, exploring funding options, and contracting in Delaware.

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 Financing for Delaware Small Businesses:

  • Working capital
  • Equipment purchase and repair
  • Inventory
  • Business development and growth
  • Cash flow/revenue shortages
  • Emergency business expenses
  • Advertising/marketing/customer acquisition resources
  • Website development and maintenance
  • Create jobs, employee recruitment, and training resources
  • General business expenses (operating expenses)

Frequently Asked Questions by Delaware Business Owners

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

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 Delaware 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 Delaware 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 Delaware. 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 for business owners in Delaware.

Initiatives, Information, State and Federal Government Financing Programs, Covid-19 Relief Options, Resources and Grants for Delaware Small Businesses

The State of Delaware Division of Small Business
COVID-19 Information for Delaware Small Businesses –
Delaware’s Division of Small Business is here to help your Delaware business navigate this challenging time and succeed in the transition back to normalcy once it has passed through current business operations guidance, loans, grants, and other financial assistance.

Business First Steps – First Steps To Open Your Business
Business First Steps is a portal to important business licensing and registration information in Delaware. The State of Delaware created this site for people seeking to start their own business and for those looking to expand their business in Delaware.

Division of Small Business – DE Relief Grants
DE Relief Grants give Delaware small businesses and nonprofits access to funds to cover expenses and provide relief related to COVID-19. The Delaware government, headed by Governor John Carney, announced several initiatives to support Delaware businesses, workers, and families affected by the COVID-19 crisis.

Division of Small Business
Delaware’s Division of Small Business is a service-focused agency committed to helping businesses start and grow in Delaware. The Division of Small Business offers business counseling for navigating through government processes and red tape, connecting businesses with resources and organizations, and accessing capital.

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