Massachusetts Small Business Loans

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Massachusetts, officially known as the Commonwealth of Massachusetts, is the most populous state in the New England region of the northern United States. The capital of Massachusetts is Boston, which is also the most populous city in New England.  Massachusetts is a global leader in the biotechnology industry, engineering industry, higher education, advertising, finance industry, and maritime trade.

Traditional banks are challenging to deal with when it comes to small business loans because they have a responsibility to protect there both small business and consumer customers deposits and follow Federal Reserve requirements and guidelines. Due to those reasons, banks must have their high credit standards and financial statement requirements. Without a three year plus track record of showing profit and revenue stream requirements, it will be challenging to get approved for small business financing. You also will be up against a mountain of paperwork, approval times that are weeks, and possibly being denied due to credit scores less than excellent.

If you believe you can’t withstand those challenges or think you may not be approved, contact AdvancePoint Capital for help, as we have a marketplace full of financing options for small businesses to fulfill your needs.

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Why Do You Need a Small Business Loan for Your Massachusetts Business?

Let’s take a look at some common reasons why small businesses want or need money for their business:

  • Additional Working Capital
  • Office Equipment
  • Business Expansion or growth capital
  • Small Business Development
  • Emergencies
  • Advertising and Marketing to increase business

The 8 Best Small Business Loans in Massachusetts

Long Term Small Business Loans in the State of Massachusetts

Small Businesses in Massachusetts may need a financing option that is longer than 12 months in duration, due to the use of money or the business’ needs. Long term business loans offer that solution for businesses that require 2 to 5 years as a repayment period, but can’t get approved at a traditional bank.

Product Overview

Rate: Interest Rates starting at 7.99% 

Repayment Period: 2 to 5 years

Fees: Origination fees 0% to 3%

Payments: Monthly or Bi-Weekly payments

Credit Standards: All types considered but prefers good to excellent

Documentation: Standard Documentation, Bank Statements, Financial Statements, Tax Returns 

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Long-Term Business Loans

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Business Line of Credit in the State of Massachusetts

A business line of credit is a flexible option that you can draw funds as needed in a moment’s notice. A business line of credit operates like a credit card in that it is a revolving line of credit that charges a principal & interest rate with the ability to draw money out at any time as long as it does not exceed the credit limit.

Product Overview

Rate: Interest rates starting at 7.99%

Repayment Period: Revolving credit. An annual or semi-annual review will be required for renewal

Fees: Origination fees 0% to 3%

Payments: Monthly, Bi-Weekly or Weekly payments

Credit Standards: All types considered. Good to excellent preferred

Processing Period: Same day to 3 days

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Business Line of Credit

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Short Term Small Business Loans in the State of Massachusetts

Short term business loans are business financing that has a repayment duration of 6 to 18 months. A short-term business loan features a fixed lump sum of money offered, with a set payback amount calculated using a factor rate. This option is popular with small businesses that cannot get approved through traditional means because of documentation requirements or credit tolerances. Cash flow and working capital are the best use for this type of business financing.

Product Overview

Rate: 1.09% up to 1.45% factor rate based on the funding amount

Repayment Period: 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 types considered 

Processing Period: Funding can be same day to 24 hours

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Short Term Business Loans

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Business Cash Advance in the State of Massachusetts

A business cash advance (also known as a Purchase of Future Sales Agreement or a Merchant Cash Advance) provides advances with a fixed payback amount known as the specified amount. The advance is repaid by taking a fixed percentage of future overall sales deposits. 

Payments are collected by an ACH fixed daily or weekly payment deducted from a small business owner’s bank account based on the fixed percentage of future sales. Once the month is completed, if the fixed payments taken are more than the set future percentage of sales, the owner can request a refund back for the overpayment. Repayment continues until the payback amount is paid back in full. There is no term limit with advances as the fixed payback percentage ever changes due to fluctuating future sales.

Product Overview

Rate: 1.09% up to 1.45% factor rate on funding amount

Repayment Period: No term limits (payoff depends on future sales) 

Fees: Origination fees are typically 0% to 5%

Payments: Weekly or daily Monday-Friday Fixed ACH payments 

Credit Standards: All types considered. Poor to excellent personal credit accepted. 

Processing Period: Same day to 24 hours

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Business Cash Advance

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Merchant Cash Advance in the State of Massachusetts

merchant cash advance (also known as a Purchase of Future Sales Agreement) provides advances of futures by providing a lump sum upfront, with a fixed payback amount known as the specified amount. The repayment is attached to the future credit card sales by taking a set percentage of future credit card sales at a time of batch until the advance is paid back in full. A Merchant Cash Advance is not a loan but an advance of future sales.

Product Overview

Rate: 1.09% up to 1.45% factor rate

Repayment Period: No term limits (payoff depends on future credit card sales)

Fees: Origination fees are typically 0% to 3%

Payments: Fixed percentage of future credit card sales

Credit Standards: All credit considered

Processing Period: Same day to 24 hours

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Merchant Cash Advance

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Equipment Financing in the State of Massachusetts

This type of business loan or lease is to purchase equipment to help the small business function or expand product offerings and also improve the overall efficiencies. Equipment financing uses the machinery that the business is looking to purchase as security and collateral. This product is commonly by companies in the healthcare and manufacturing industries, but also any other company that needs equipment to operate. 

Product Overview

Rate: Interest rate starting at 5.5%  or 1.09% up to 1.45% factor rate on leases

Repayment Period: No term limits 

Fees: 0% to 3% origination fees 

Payments: Weekly or daily Monday-Friday Fixed ACH payments 

Credit Standards: All credit considered

Processing Period: Same day up to 3 days

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Equipment Loans

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Small Business Administration (SBA) Loans in the State of Massachusetts

The Small Business Administration (SBA) s a Federal agency that provides programs, guidelines, and loan guarantees to approved lenders for businesses. The U.S. Small Business Administration’s (SBA) mission is to help Americans start, build, and grow their businesses successfully. The Small Business Administration (SBA) is not a lender. They provide guarantees to those approved lenders to recover a certain percentage of the SBA loan if it were to default with all rights reserved. This guarantee gives the approved lender ability to take on the risk of lending under Small Business Administrations (SBA) terms that they would not ordinarily do so on their own.

Small Business Administration (SBA )loans are highly sought after by small businesses. SBA programs are challenging to obtain because of extensive document review and high credit standards. SBA business funding is the most popular small business financing provided because of the low costs and long terms.

Product Overview

Rate: Interest rates starting at 6.50% 

Terms: 3 to 25 years 

Fees: Origination fees are typically 0% to 3%

Payments: Fixed monthly payments 

Credit Standards: All credit considered, good to excellent credit preferred

Processing Period: 1 week to 30 days

Small Business Administration (SBA) Loan Programs That Can Benefit Small Business in Massachusetts

SBA Standard 7 (a) Loan Program- SBA standard 7(a) loan is the SBA’s primary program, designed to provide financial assistance to small businesses.

SBA 504 Loan Program- The SBA 504 Loan is a powerful economic development loan program that will provide small businesses another avenue for business financing while promoting business growth and job creation. The use of proceeds from SBA 504 Loans must be used for fixed assets such as construction, real estate, land, or land improvements (and certain soft costs) or can also be used to refinance existing debt.

SBA Disaster Loans– Economic Injury Disaster Loans (EIDL loan)-This product provides programs after natural disasters like tornadoes, wildfires, or floods. When President Trump declared Coronavirus (Covid-19) a nationwide emergency on March 13th, small businesses were able to access this program for emergency financing.

SBA Paycheck Protection Program (PPP) loan-The Small Business Administration (SBA) has established the SBA Paycheck Protection Program loan that will provide financing to small businesses affected by the COVID-19 crisis and need financial help.

Benefits and Best Uses of Small Business Administration Loans

Small Business in Massachusetts seeks the U.S. Small Business Administration (SBA) loans because they offer low costs and long term loans to finance large projects or business expansions. The longer the term obviously, the lower the monthly payments that impact the money flow of the business.

AdvancePoint Capital assists Massachusetts small businesses through the entire process to make what is complicated, simple. We keep up with all the latest news, resources, information, and programs that the U.S. Small Business Administration (SBA) releases.

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Small Business Administration (SBA) Loans

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Invoice Financing in the State of Massachusetts

Invoice financing offers business owners that need money quickly and can’t wait on outstanding invoices an advance off of that invoice ahead of payment by the client. Invoice financing allows you the ability to leverage outstanding invoices to obtain an advance of money now at an affordable cost of 1% to 2% fee off of the face value of the invoice. Invoice factoring is not a loan; it is an advance off of an invoice. 

Product Overview

Rate: Factor rate between 1% to 2% 

Repayment Period: No term limits 

Fees: Service fees

Credit Standards: Clients being invoiced is evaluated, not issuer of invoices

Documentation: Reduced documentation. 1-page application and roster of clients and current accounts receivable aging report

Processing Times: 1 week

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Invoice Factoring

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U.S. Small Business Administration

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

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.

Frequently Asked Questions from Massachusetts Small Businesses

It is not difficult to get small business financing in Massachusetts. Boston is a major city with a stable economy that small business lenders and funders find desirable due to the dense population area and predictability of the economy in the region.  

There is a variety of loan options for owners with bad credit in Massachusetts. Terms may vary depending on the loan product, and bad credit will affect costs and conditions. 

Some loans require less documentation. There are many small business loans available with reduced limited to low documentation requirements. Remember, the less documentation you provide, the more likely the loan terms will be less favorable. 

Getting start-up business loans is extremely difficult. The Small Business Administration (SBA) does offer start-up financing, but the requirements and qualifications can pose a challenge. We also suggest help from private sources or investors for start-up loans.

Massachusetts small business grants are available. Under the below section, you will see resources that will educate you about what is available.

Additional Resources, Information, programs, additional services, as well as Grants for Small Businesses in Massachusetts

Massachusetts Growth Capital Corporation (MGCC) – The mission of the Massachusetts Growth Capital Corporation(MGCC) is to empower small businesses to grow and flourish. The MGCC provides a variety of services that help the local small business community, financial professionals, and small business economic development professionals. Resources also include COVID-19 Small Business assistance, supporting initiatives, and a small business resource guide.

  • Empower Small Business
  • Financial product assistance ( loan)
  • Managerial Assistance
  • Small Business Development Assistance
  • Diversity programs
  • Small Business Technical Assistance Grant Program
  • Emergency Loan Funds Relief(Economic Injury Disaster Loan Relief Program )  
  • COVID-19 Coronavirus Assistance

Mass Small Business Association (MSBA) – This organization provides support and the latest information and guidance on local small businesses in Massachusetts. Its mission is to provide advocacy, small business development, economic development, small business development resources, and many other services to assist small businesses in Massachusetts. This organization has also helped many local small businesses in response to the COVID-19 Coronavirus crisis and relief programs.

Massachusetts Executive Office of Housing and Economic Development (EOHED)- COVID-19 Resources and Guidance for Businesses that includes; COVID-19 Grants for Massachusetts Small Businesses, SBA Relief Options, NOAA Fisheries Funding, Federal & State Tax Relief Provisions and Other Lending Programs.

Massachusetts “Reopening Massachusetts” Program- The Baker-Polito Administration’s comprehensive plan to safely reopen the Massachusetts economy, get people back to work, and ease social restrictions while minimizing the health impacts of COVID-19.

The Federal Reserve, Central Bank of the United States “Main Street Lending Program”

Please contact AdvancePoint Capital for more information related to the MGCC or the MSBA programs and resources in Massachusetts to see what programs you may be eligible for.

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