AdvancePoint Capital supports small business loans in the Columbus, Cleveland, Cincinnati, Ohio greater metropolitan areas, as well as the rural areas of the state.
There are many good reasons to operate in the state of Ohio. AdvancePoint Capital has a market place of alternative small business funding options specializing in manufacturing, agriculture, and retail across the state of Ohio to service the local needs of the small business community. The following information will explore the ten most popular small business funding options in Ohio.
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The 10 Best Small Business Financing Options for Business in Ohio
1. Long-Term Small Business Loans for Ohio Small Business
Long-term small business loans have a duration of 2 years or greater in the length of repayment. This business finance product offers a fixed lump sum upfront, repaid over an extended period of time, with the costs based on a principal and interest rate.
Product Overview
Rates: Interest rates starting treasury index plus 1% to 2.5% (currently 5.5%)
Terms: 2 to 10 years
Fees: Origination fees 0% to 3%
Payments: Monthly or bi-weekly payments
Credit Standards: All types considered, good to excellent preferred
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Long Term Business Loans
2. Small Business Line of Credit for Ohio Small Business
A small business line of credit is an open, revolving line that allows Ohio small business owners to draw funds when needed on-demand and make purchases up to a certain limit. Small business lines of credit require renewal, either semi-annually or annually, to be extended. The biggest benefit is flexibility, with the ability to draw funds at any time up to the limit. This function will help provide small businesses in Ohio money to respond to cash flow emergencies in real-time.
Product Overview
Rates: Principal and interest rates start at treasury index plus 1% to 2.5%
Terms: Open revolving line
Fees: Origination fees 0% to 3%
Payments: Monthly, bi-weekly or weekly payments
Credit Standards: All types considered, good to excellent preferred
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Business Line of Credit
3. Small Business Administration (SBA) Loans for Ohio Small Businesses
The Small Business Administration (SBA) is a federal government agency that provides programs, guidelines, and loan guarantees to approved lenders for business loans. The Small Business Administration (SBA) is not a lender and merely provides a guarantee that gives approved lenders the ability to take on the risk of business lending with attractive rates and terms that could not normally be afforded to small businesses.
Without the Small Business Administration (SBA) present to provide guarantees, the approved lender would not be comfortable lending under the terms outlined by Small Business Administration (SBA). The Small Business Administration’s programs are very popular but difficult to acquire due to the requirements, guidelines, and restrictions. AdvancePoint Capital can help guide Ohio small businesses through the process in a clear, fast, and efficient manner to have the best likely hood of approval.
Small Business Administration (Sba) Loan Programs That Can Help Benefit Small Business in Ohio
- SBA Standard 7(a) Loan Program. This is the SBA’s primary program and is designed to provide financial assistance to small businesses. The terms and conditions, like the guaranty percentage and loan amount, may vary by the type of loans to small businesses.
- SBA 504 Loan Program. This 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 Paycheck Protection Program (PPP) Loan. The Small Business Administration (SBA) has established the SBA Paycheck Protection Program loan that will provide loans to small businesses affected by the COVID-19 crisis. Contact AdvancePoint Capital for additional information about this disaster relief.
Product Overview
Rates: Interest rates starting at treasury index plus 1% to 2.5%
Terms: 3 to 25 years
Fees: Origination fees range from 0% to 3%
Payments: Fixed monthly payments
Credit Standards: Good to excellent preferred, but all types considered.
Documentation: You will need to provide full documentation. Application, six months of business bank statements, two years of business tax returns, year to date profit & loss, and a balance sheet. More documents may be requested upon review.
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Small Business Administration (SBA) Loans
4. Business Credit Cards for Ohio Small Businesses
Business credit cards are open lines of revolving credit that offer principal and interest rates with a set limit. A card is issued and can be used for making payments or purchases. It is not uncommon for Ohio small businesses to utilize business cards as well as other business financing options.
Product Overview
Rates: Introductory rates starting at 0% up to 28.99%
Terms: Open revolving line with a set limit
Fees: Annual fees range from $0 to $500
Payments: Flexible monthly payments
Credit Standards: Must have good to excellent rating and deep credit history
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Business Line of Credit
5. Short Term Business Loans for Ohio Small Businesses
Short-term business loans are loans that have a repayment duration of 6 to 18 months. Short-term small business loans feature a fixed lump sum of money offered, with a fixed 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. The #1 reason Ohio small businesses choose short-term business loans is cash flow.
Product Overview
Rates: Factor rates ranging from 1.09% up to 1.45%
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
Credit Standards: All types considered
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Short Term Business Loans
6. Business Cash Advance for Small Businesses in Ohio
Business cash advances (BCA) are a type of purchase of future sales agreement that advances future sales at a discount to the business. The business is responsible for paying back a fixed amount (also known as a specified amount). The difference between the advance amount and the specified amount is called the “factor rate or cost.” A fixed percentage of future overall sale deposits is the method used for repayment. The payments are collected by an ACH fixed daily or weekly from the business bank account based on the specified percentage of future sales.
Reconciliation can occur at the end of every month. If the fixed payments taken are more than the set percentage of sales in the agreement, a business owner can request a refund back to the business for overpayment so that the set specified percentage of sales matches the sales volumes. A business cash advance is not a loan, but an advance of future sales to the business.
Product Overview
Rates: Factor rates from 1.09% up to 1.45%
Terms: Payoff dependent on future sales
Fees: Origination fees that range 0% to 5%
Payments: Weekly or daily
Credit Standards: All types considered
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Business Cash Advance
7. Merchant Cash Advance for Small Businesses in Ohio
A merchant cash advance (MCA) is also known as a purchase of future sales agreement that operates very similarly to a BCA. 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 business bank account. The set percentage of future card sales payment method is used.
Product Overview
Rates: Factor rates 1.09% up to 1.45%
Terms: No term limits (payoff depends on future sales)
Fees: Origination fees range from 0% to 3%
Payments: Fixed percentage of future credit card sales as payment
Credit Standards: All types considered
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Merchant Cash Advance
8. Equipment Financing for Small Businesses in Ohio
Equipment financing is used for the purchase of equipment, securing the equipment as collateral. This type of financing comes in the form of a loan or a lease.
Product Overview
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 credit required
Time Frames: Same day to 3 days depending on the lender
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Equipment Loans
9. Invoice Financing for Small Businesses in Ohio
Invoice financing provides Ohio small business owners the opportunity to get an advance on their invoices quicker than waiting to be paid by their clients. Invoice finance companies advance the outstanding balance of the invoice once an invoice is submitted to them in exchange for a nominal fee. This process accelerates the payment of invoices to small business owners to improve cash flow. The invoice finance company is then responsible for collections of all invoices that are advanced. Invoice financing (factoring) is not a loan, but an advance off specific invoices.
Product Overview
Rates: None
Terms: Dependent on the invoices
Fees: 1% to 2.5% fee based on the invoice.
Credit Standards: Credit of the clients need to be favorable NOT the small business owner advancing off invoices
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Invoice Factoring
10. Purchase Order Financing for Ohio Small Businesses
Purchase order financing provides Ohio businesses 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 financing company will subtract their fees and then send the balance of the invoice to your business. This business funding option is used to support the entire distribution chain with capital, so small businesses don’t need to tap into existing cash flow. Purchase order financing is not a loan, but an advance of purchase orders.
Product Overview
Rates: None
Terms: Time frame dependent on the purchase order
Fees: 1% to 3% fee for each purchase order.
Credit Standards: All parties need favorable credit history but all types considered
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Purchase Order Financing
U.S. Small Business Administration
How to Grow Your Business in Central and Southern Ohio
View the Central and Southern Ohio Small Business Resource Guide for information and assistance in growing your local business, exploring funding options, and contracting.
How to Grow Your Business in Cleveland and Northern Ohio
View the Cleveland and Northern Ohio Small Business Resource Guide for information and assistance in growing your local business, exploring funding options, and contracting.
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Frequently Asked Questions
Why Does Your Ohio Business Need a Business Loan?
- Working Capital
- Business Expansion
- Cash Flow Shortages
- Equipment Purchases
- Emergencies
- Advertising/Marketing costs
- Information Technology
Are Business Loans Located in Ohio Difficult to Obtain?
It is not difficult for an Ohio small business to obtain business financing. More than ever before, there are a variety of options that can help you get the money you need that will fulfill your business financing requirements.
Can I Qualify for a Business Loan in Ohio If I Have Bad Credit?
If the Ohio small business owner has bad credit, there are many business financing alternatives available if you are working with the right business loan originator.
What is the Population of Ohio?
The state of Ohio is the 7th most populous state in the United States. Ohio’s economy is the seventh-largest of all fifty states, with a GDP of almost 700 Billion. Ohio is a state comprised of 3 major economic hubs around the cities of Cleveland, Cincinnati, and Columbus. Cleveland is the state’s industrial, financial, health care, and cultural hub. Cincinnati is an important retailing center and produces a variety of manufactured goods. Columbus is the capital, and home of the state government and numerous educational institutions, including Ohio State University. Over half of the workforce in Columbus is employed in government, education, finance, insurance, and other service occupations. In addition, Akron, Toledo, Youngstown, and Canton traditionally have been local centers of manufacturing and heavy industry.
Can I Get a Start-Up Business Loan in Ohio?
The Small Business Administration will provide loans for businesses in Ohio who are in the start-up phase. SBA loans are the most traditional option available when attempting to acquire start-up business loans. You can also try to get help and raise money by looking at less common options such as private lenders or investors. AdvancePoint Capital can help and provide more information about these options.
How to Apply for a Small Business Loan in Ohio?
Applying for a loan with AdvancePoint Capital is as simple as 1, 2, 3. Start with this online form (make sure you include your phone number and email), then fill out the short application page, wait a few hours for your approval, and then get your money!
AdvancePoint Capital’s services are the fast, convenient, and straightforward way to get the help and money you need for your business – now!
Get your quote today by filling out our simple form.
Additional Resources, Information, Programs, Additional Services, and Grants for Small Businesses in Ohio
Ohio Development Service Agency – Business Grants, Loans and Tax Credits – The Ohio Development Services Agency has a variety of bonds, grants, loans and tax credits that can assist Ohio companies as they grow and create jobs in Ohio.
Ohio Business Gateway -Grow a Business – Finance Assistance
