AdvancePoint Capital supports small business loans in the state of Indiana, including the Indianapolis metropolitan area, and we know the local economy well.
The state of Indiana is the 17th most populous state in the U.S. and has a diverse economy with a gross state product of $375 billion as of 2020. Indiana has several metropolitan areas with populations greater than 100,000 and several smaller industrial cities and towns. The capital and largest city is Indianapolis, with a population of over 875,000.
The United States has become a service economy, including Indiana, meaning it generates most of its revenue through service industries. Wholesale (farm products, groceries, metal products, transportation equipment) and retail (auto dealerships, department stores, grocery stores, restaurants) trade comprise Indiana’s leading service industries. Community and personal services (medical practices, hospitals, hotels/motels, law firms, and repair shops) rank second. The finance, information technology, insurance, and real estate industries rank third in the services sector, with real estate being significant due to the large sums of money involved in developing new homes, office buildings, and other types of property. Depending on your industry, you may need a business license in Indiana to operate.
A high percentage of Indiana’s income is from manufacturing. At least 17% of the state’s non-farm workforce is employed in manufacturing, the highest of any state in the U.S. The state’s five leading exports were motor vehicles and auto parts, pharmaceutical products, and industrial optical and medical equipment, and electric machinery.
Indiana’s top five agricultural products are corn for grain, soybeans, hogs, dairy products, and chicken eggs. Indiana is also a leading coal-producing State; bituminous coal contributes about 3/4 of Indiana’s mining income.
AdvancePoint Capital has a marketplace of funding options specializing in manufacturing, agriculture, wholesale, and retailing businesses across the State of Indiana to service business owners’ needs. Let’s explore the ten most popular funding options in Indiana.
The 10 Best Small Business Financing Options in Indiana
Long Term Business Loans in Indiana
As they relate to businesses, long-term loans are loans with terms greater than two years length of repayment. Long term loan costs are based on a principal & interest rate. The main benefits of long term loans are the length of repayment, access to more capital than shorter-term products, and the affordable monthly payments. This product funds growth and expansion, or large, long term projects or work orders.
Rates: Interest rates starting treasury index plus 1% to 2.5% (currently 5.5% as of 2020)
Terms: 2 to 10 years
Fees: 0% to 3% origination fees
Payments: Monthly or bi-weekly payments
Credit Standards: All credit considered. Good to excellent credit preferred
Processing Times: 3 days to a couple of weeks depending on the lender
Business Line of Credit in Indiana
Like a credit card, a business line of credit is an open revolving line of credit that provides the ability to draw funds when needed on-demand or make purchases up to a specific credit limit. Lines of credit require renewal to extend either on a semi-annually or annual basis. Flexibility is the most significant benefit because the product allows for a draw of funds on-demand, up to the credit limit. Having a draw on-demand feature allows owners in Indiana businesses to respond to cash flow or emergencies in real-time.
Rates: Interest rates start at treasury index plus 1% to 2.5%
Terms: Open revolving line of credit
Fees: Origination fees 0% to 3%
Payments: Monthly, bi-weekly or weekly payments
Credit Standards: All credit considered. Good to Excellent credit preferred.
Processing Times: Same day to up to a week depending on the lender
Small Business Administration (SBA) Loans in Indiana
The Small Business Administration (SBA) is a Federal government agency that provides programs, guidelines, and loan guarantees to approved lenders for business loans. The SBA is not a lender and merely provides a guarantee that gives approved lenders the ability to take on the risk of lending with attractive rates and terms that could not normally be afforded to small businesses. Without SBA guarantees, the approved lender would not be comfortable lending under the terms outlined by the SBA t(a) loan. SBA has rights reserved for all approvals. AdvancePoint Capital can help you apply for an SBA 7 (a) loan or the new COVID-19 programs and will guide you through the process in a clear, fast, and efficient manner to have the best likely hood of approval for small businesses.
Rates: Rates starting at treasury index plus 1% to 2.5%
Terms: 3 to 25 years
Fees: Origination fees from 0% to 3%
Payments: Fixed monthly payments
Credit Standards: Good to excellent credit preferred, but all credit is considered.
Processing Time: Processing times can be one week to up to a month, depending on application volumes, SBA product selection, or other economic conditions.
Business Credit Cards in Indiana
Business credit cards are similar to personal credit cards in that it is an open line of revolving credit that offers an interest rate with a set credit limit. A plastic card is issued that can be used for making purchases or payments. A personal guarantee is required. Indiana small businesses utilize credit cards as well as other financing options together as an overall approach.
Rates: Introductory rates of 0% up to 28.99%
Terms: Open revolving line of credit with a set credit limit
Fees: Annual fees range from $0 to $500
Payments: Flexible monthly payments
Credit Standards: Must have good to excellent credit and deep credit history
Processing Times: Instant approval to same day available
Short Term Business Loans in Indiana
Short term business loans are defined as loans, with terms from 3 to 18 months. Short-term loans charge a factor rate and not a principal & interest rate. This option is popular with small businesses that cannot get approved through traditional means because of documentation requirements or credit concerns.
Rates: Factor rates from 1.09% up to 1.45% of funding amount
Terms: 6 to 18 months in duration (typically 12 months or less)
Fees: Origination fees 0% to 5%
Payments: Weekly, bi-weekly and in some cases daily Monday-Friday
Credit Standards: All credit types considered
Processing Times: Same day to 24-48 hours
Business Cash Advance in Indiana
Business Cash Advances (BCA), also known as a Purchase of Future Sales Agreement, advance future sales at a discount to a company. BCA’s charge a “Factor Rate,” which is a fixed cost, and is the difference between the advance amount and payback amount. A fixed percentage of future overall sales deposits, called the specified fixed percentage, is used for repayment. The payments are collected by an ACH fixed daily or weekly payment deducted from the bank account based on the specified percentage of future sales. Reconciliation can occur at the end of every month. There is no term limit with advances.
Rates: Factor rates from 1.09% up to 1.45%
Terms: No term limits. Payments are based on a specified fixed percentage collection method and are dependent on future sales
Fees: Origination fees from 0% to 5%
Payments: Weekly or daily Monday-Friday fixed ACH payments
Credit Standards: Poor to excellent credit accepted. All credit is considered.
Processing Time: Same day to 24-48 hours
Merchant Cash Advance in Indiana
A Merchant Cash Advance (MCA) is also known as a Purchase of Future Sales Agreement that operates very similarly to Business Cash Advance. Still, the biggest difference is the repayment process, which is connected to the future credit card sales instead of overall sales. No fixed payment is deducted from the bank account. The set percentage of future credit card sales payment method is used. Advances have no term limit and are connected to future credit card sales.
Rates: Factor rates 1.09% up to 1.45%
Terms: No term limits (payoff depends on future credit card sales)
Fees: Origination fees range from 0% to 3%
Payments: Fixed percentage of future credit card sales as payment
Credit Standards: All credit considered from poor, fair, good to excellent.
Processing Time: Same day to 24-48 hours
Equipment Financing in Indiana
Equipment financing is used for the purchase of equipment and uses the machinery itself as collateral. Good to excellent credit is required, and the type of equipment needs to be approved by the equipment financing company to acquire equipment financing.
Rates: Factor rates 1.09% up to 1.45% or interest rates 4.5%-28%
Terms: 2 to 10 years
Fees: Origination fees range from 0% to 3%
Payments: Monthly fixed payments
Credit Standards: Good to excellent required.
Time Frames: Instant funding, Same day up to 3 days depending on the lender
Invoice Financing in Indiana
Invoice financing allows owners get an advance on their invoices to clients quicker than waiting for
terms to be paid by their clients directly. Invoice finance companies advance the client invoice once it’s submitted to them in exchange for a nominal fee. The invoice finance company, not the owner, is then responsible for collections of all advanced invoices. This funding product is an excellent solution for cash flow crunches without waiting for 30, 60, or up to 90 days or more for invoices to be paid by clients.
Terms: No term limits
Fees: 1% to 2.5% fee based on invoice. Monthly service fees may apply depending on volume
Credit Standards: Credit of the clients need to be favorable, NOT the owner advancing off invoices
Processing Times: It takes 1 to 2 weeks to set up a new relationship to have the ability to fund invoices daily. Invoices are funded daily.
Purchase Order Financing
Purchase Order financing offer allows companies the ability to raise capital to pay suppliers upfront for verified purchase orders and collect invoices upfront on the back end. Purchase order loans will finance an entire order or a portion of it, depending on the purchase order finance company. When the supplier is ready to ship the order, the purchase order financing company collects payment directly from the customer. The purchase order funder will subtract their fees and then send the invoice’s balance to your company. This can support the entire distribution chain with capital, so the company doesn’t need to tap into existing cash flow and can’t take on larger orders and projects without raising traditional capital.
Terms: No term limits
Fees: 1% to 3% fee for each purchase order.
Credit Standards: All parties need favorable credit history but all credit considered
Processing Times: 1 to 2 weeks to set up then ability to fund purchase orders daily
The fast, convenient and straightforward way to get the money you need for your business – now! Get Your Quote Today by filling out our simple form.
Why Do You Need a Loan? The Most Common Reasons Indiana Businesses Acquire Capital
- Working Capital – General purpose needs to take advantage of opportunities
- Cash Flow shortages – Supports stabilizing cash flow that is dangerously low
- Expansion – Funds opportunities to expand the company
- Equipment Purchases – The purchase of equipment essential to the process of the workflow of a business.
- Advertising/Marketing costs – Money to implement marketing strategies and methods to increase customer base.
- Emergencies – Money for unexpected issues that can arise with any business regardless of Industry.
- Business Development Payroll
Frequently Asked Questions
Is it difficult to obtain business funding?
It is not difficult to obtain business financing. There are various options in 2020, depending on your need, that can fulfill your financing needs.
Can I qualify for a small business loan if I have bad credit?
There are many financing alternatives available if a business owner has bad credit. It is crucial to work with the right loan originator who has the products to accommodate your credit issues. Terms will vary depending on the product and are linked with risk, so expect terms, pricing, and costs to be impacted if you have bad credit.
Can I get start-up funding? How do you get money to start a small business?
There are not a lot of financing programs available for start-up funding. The SBA has a loan program for start-up businesses, but the qualifications can be challenging if you don’t have collateral. Without showing a history of consistent revenues and your ability to manage cash flow through bank statements, obtaining financing will be a big challenge. The best resource for start-up funding is private investors.
The Bottom Line: Advice, Tips, and Warnings About Loans for Indiana Small Businesses
Anytime an Indiana business owner is looking for money, your search should begin with a question: What is the use of funds for and how will it benefit the business? Have you been educated, and have you been provided enough information about the different types of business financing products available in the marketplace? Do you know what issues you may confront when getting approved (Such as; credit issues, cash flow issues, time in business, financial statement issues)?
Take your time to look through all the information related to business financing options available in the market. Always consider a cost versus benefit analysis for any terms provided to make sure there is value, and it is worth it!
AdvancePoint Capital provides the assistance to Indiana small business owners searching for additional money in a streamlined process, using our Business Product Marketplace, so you don’t end up wasting time, or more importantly, you’re hard-earned money. We always say at AdvancePoint that information gives you choices, freedom, and opportunity to make better decisions. If you shop and compare, you will always save!
How To Apply for Small Business Loans in Indiana
Applying for a loan with AdvancePoint Capital is as simple as a 1, 2, 3, 4 process. First, visit our online form (please make sure you include your name, contact info including email and phone number), fill out and provide your one-page application, wait a few hours for your approval, select an option and then get your money!
The fast, convenient, and straightforward way to get the business loan you need for your business – now!
Get your quote today by filling out our simple form.