Philadelphia, the city of brotherly love, is the largest city in the state of Pennsylvania and the sixth-most populous U.S. city with an estimated population of 1.5 million. The Philadelphia metropolitan area (includes Philadelphia County, Bucks County, Montgomery County, Delaware County, and Chester County) is the 8th largest U.S metropolitan with over 6 million residents. Philadelphia metropolitan area is also part of the Delaware Valley, which includes southern New Jersey and New Castle County, Delaware, which, as a whole, creates a massive powerhouse of economic activity.

Philadelphia metropolitan area is estimated to produce a gross metropolitan product (GMP) of $490 billion. Philadelphia is home to 5 Fortune 1000 companies and attracts a diverse makeup of industries, including universities and colleges making it into an educational and economic hub. Philadelphia also is known for manufacturing, aerospace and defense, oil refining, food processing, healthcare, legal field (Ten of the 100 largest law firms in the US have their headquarters or largest office in Philadelphia.), biotechnology, telecommunications, tourism (Tourism is a major industry in Philadelphia, which was the 10th-most-visited city in the United States) museums and art culture, restaurant scene, and financial services. 

Philadelphia small businesses have the same challenges that you would find in any other metropolitan area when it comes to acquiring a business loan from a traditional bank. 

AdvancePoint Capital has an Eastern United States regional office located in Cherry Hill, New Jersey, 10 minutes from the Ben Franklin Bridge and Philadelphia. Our business funding marketplace is full of business funding alternatives for Philadelphia area businesses.

Let’s explorer the ten most popular business funding options.

The 10 Best Small Business Financing Options for Philadelphia Area Businesses

1. Long Term Business Loans in Philadelphia

Long term business loans are business loans with a duration of greater than two years. Businesses are offered a fixed amount of upfront and charged principal & interest. Unlike a business line of credit, a business owner cannot draw money as you go like a business line of credit. Typically, long term business lending is for business expansion and growth or to finance large long term projects.

Product Overview

Rates: Interest rates starting at 5.50% or Treasury index plus 1% to 2.5% 

Terms: 2 to 10 years

Fees: Origination Fees range from 0% to 3%

Payments: Monthly or Bi-Weekly payments

Credit Standards: Good to excellent credit preferred. All credit considered.

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

Processing Time: 3 days to a week

Benefits and Best Uses of Long Term Business Loans 

California business owners choose long term business loans because of the length of time of repayment and affordable monthly payments. This product funds growth expansion of a business or large long term projects or work orders.

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2. Business Line of Credit in Philadelphia

A Business line of credit is an open revolving line of credit. This type of financing product allows business owners to draw funds when needed on-demand or make purchases—a business line of credit charges a principal & interest rate. Business lines of credit due have a credit limit that cannot be exceeded without approval. Business lines of credit are not open-ended forever and require renewal either semi-annually or annually to be extended.  

Product Overview

Rates: 5.50% Interest Rates or treasury index plus 1% to 2.5%

Terms: Open revolving line of credit. 

Fees: Origination Fees ranging from 0% to 3% 

Payments: Monthly, Bi-Weekly or Weekly payments

Credit Standards: Good to Excellent credit preferred. All credit considered.

Documentation: Standard Documentation. 1-page application and 3 months bank statements, sometime financial will be required depending on credit limit.

Processing Time: Same day to up to 5 days 

Benefits and Best Uses of Business Line of Credit 

Business owners choose a business line of credit for its flexibility. This remains the number one reason why small business owners in the Philadelphia region prefer business lines of credit. There is no question that the ability to draw funds at any time up to the credit limit is a very popular feature. This function allows a business to respond to cash flow needs or emergencies in real-time on-demand.

3. Business Credit Cards in Philadelphia

Business credit cards are open revolving credit lines that charge a principal & interest rate with a credit limit. A card is issued that can be used for making payments or purchases. Philadelphia business owners utilize business credit cards in conjunction with other business loan products.

Product Overview

Rates: Introductory rates starting at 0% up to 28.99% principal & interest

Terms: Open revolving line of credit with a credit limit 

Fees: $0 to $500 Annual fees

Payments: Flexible monthly payments

Credit Standards: Must have good to excellent credit and deep credit history

Documentation: No Documentation for smaller amounts $3,000 up to $15,000. Larger credit limits may require documentation if you are looking for more money or an increase to prove the ability to repay.

Time Frame: Instant approval to same day available

Benefits and Best Uses of Business Credit Cards 

Business credit cards are popular with Philadelphia region business owners because the credit facility is a revolving open line of credit that has the ability to draw money, make payments, and make purchases using a card.

4. Short Term Business Loans in Philadelphia

Short term business loans are defined as business loans that are typically repaid with 6 to 18 months. This business loan features a lump sum of money offered upfront with a fixed payback amount calculated using a factor rate over a short term of time. Rates are not principal & interest but a “factor rate” that costs more than traditional business loans. Most businesses choose this option when they do not qualify for traditional business financing. Short term business loans charge more for costs and are shorter-term, and the payments are more frequent to compensate for the greater risks business lenders take in offering this type of product. This option is popular with small businesses because of the reduced documentation requirements and credit tolerances that are laxer than traditional business loans.

Product Overview

Rates: Factor rates range from 1.09% up to 1.45%

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

Credit Standards: All credit types considered 

Documentation: Reduced Documentation. A 1-page application and 3 months bank statements required 

Processing Time: Same day to 24 hours

Benefits and Best Uses of Short Term Business Loans 

Philadelphia region businesses choose Short-term business financing as an alternative when other options are not available to them do to qualifications. Cash flow and working capital are the best use for this type of business financing.

5. Business Cash Advance in Philadelphia

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 amount known as a specified amount, which is greater than the amount that was advanced to the business. 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 sales deposits called the specified percentage. The payments are collected by an ACH fixed daily or weekly payment deducted from a business bank account based on the specified percentage of future sales. At the end of every month, reconciliation can occur. If the fixed payments are taken are more than the set future percentage of sales, a business owner can request a refund back to the business for overpayment so that the set specified percentage of sales collected for the business matches the sales volumes. 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

Rates: Factor rates range from 1.09% up to 1.45% 

Terms: No term limits. Payments continue until paid in full based on specified percentage collection method and are dependent on future sales

Fees: Origination Fees that range 0% to 5% 

Payments: Weekly or daily Monday-Friday Fixed ACH payments 

Credit Standards: Poor to Excellent credit accepted. All credit considered.

Documentation: Reduced Documentation. 1-page Application and 3 months bank statements are all that is required.

Processing Time: Same Day to 24 to 48 hours

Benefits and Best Uses of Business Cash Advance 

When Philadelphia is businesses cannot get approved for traditional business loans or short term business loans, a business cash advance is a great alternative. Funds are typically used for working capital to improve cash flow. 

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6. Merchant Cash Advance in Philadelphia

A Merchant Cash Advance (MCA) is also known as a Purchase of Future Sales Agreement that operates very similarly to BCA’s, but the biggest difference is the repayment process, which is connected to the future credit card sales instead of overall sales. MCA’s take a set percentage of future credit card sales at the time of batch of credit cards until the advance is paid back in full. Business owners find this valuable when they have fluctuating sales and don’t want to be locked into a fixed payment that could negatively impact capital or margins of profit if sales decline or fluctuate. 

Product Overview

Rates: Factor rates that range from 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: Set fixed Percentage of future credit card sales withdrawn at time of batch of credit card sales

Credit Standards: All credit considered from poor, fair, good or excellent.

Documentation: Reduced Documentation. 1-page Application, 3 months processing statements and 3 months bank statements are all that is required.

Processing Time: Same Day to 24 to 48 hours

Benefits and Best Uses of Merchant Cash Advance 

Merchant Cash Advance is used when other, more traditional business funding’s not available. The flexibility of the repayment allows for a business to better control cash flow and profit margins versus a fixed payment. Merchant cash advance’s most popular uses are working capital and cash flow.

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7. Equipment Financing in Philadelphia

Philadelphia area businesses that use equipment to operate their business often turn to equipment financing for the purchase of equipment that uses the equipment as collateral. Business owners need to have very good to excellent credit to acquire equipment financing, but the good news is limited paperwork is necessary to get approved. 

Product Overview

Rates: Factor Rate ranging from 1.09% up to 1.45%

Terms: No term limits, based on future sales 

Fees: Origination Fees range from 0% to 3% 

Payments: Weekly or daily Monday-Friday Fixed ACH payments 

Credit Standards: All credit considered

Documentation: Low Documentation. 1-page Application and invoice for equipment

Time Frame: Same Day up to 3 days

Benefits and Best Uses of Equipment Financing 

Equipment financing is a primary goal to acquire equipment.

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8. Small Business Administration (SBA) Loans in Philadelphia

The Small Business Administration (SBA) provides programs, guidelines, and loan guarantees to approved lenders for businesses throughout the Philadelphia region. The SBA’s mission is to help Americans start, build, and grow their businesses successfully. The SBA is not a lender. The SBA provides a guarantee that gives the approved lender ability to take on the risk of business lending under SBA terms that they would not ordinarily do so on their own. SBA loans are highly sought after but, unfortunately, have low approval rates due to the requirements and guidelines.  

Product Overview

Rates: Interest Rates starting at 5.50%, Treasury index plus 1% to 2.5%  

Terms: 3 to 25 years 

Fees: Origination Fees 0% to 3%

Payments: Fixed monthly payments 

Credit Standards: Good to excellent credit preferred, but all credit considered. 

Documentation: Full Documentation. Application, 6 months business bank statements, two years business tax returns, year to date Profit & Loss, and Balance Sheet. More documents may be request upon review.

Processing Time: 1 week to up to month depending on application volumes or other economic conditions.

Benefits and Best Uses of SBA Loans 

Small business owners seek SBA loans due to the great rates, low fees, and long term duration of financing. SBA loans are used primarily for business expansion and growth as well as funding long term projects.

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9. Invoice Financing in Philadelphia

Invoice financing advances the outstanding balance to a business owner to increase the speed of cash flow to the business. This solution provides cash quickly, and there is no need to wait for outstanding invoices to be collected and received by the client with invoice financing in place. Invoice financing has affordable costs ranging from1% to 2.5% fee off of the face value of the invoice advanced.

Product Overview

Rates: None

Terms: No term limits 

Fees: 1% to 3% fee based off Invoice. Monthly Service fees may apply depending on volume of invoices factored

Credit Standards: Credit of the Clients need to be favorable NOT the business owner advancing off invoices

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

Processing Time: Invoices are funded on a daily basis. It takes 1 to 2 weeks to set up a new relationship to have the ability to fund invoices on a daily basis

Benefits and Best Uses of Invoice Factoring

Invoice Factoring is popular with many businesses that have customers the invoice on a regular basis. This business funding product supplements cash flow in real-time without waiting for 30, 60 up to 90 days or more for invoices to be paid by clients. 

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10. Purchase Order Financing in Philadelphia

Purchase Order financing offers businesses the ability to raise capital to pay suppliers upfront for verified purchase orders. Purchase order loans will finance an entire order or a portion of it, depending on the purchase order funder. 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 sends the balance of the invoice to your business. 

Product Overview

Rates: None 

Terms: No term limits 

Fees: 1% to 3% fee for each Purchase Order. Monthly Service fees depending on volume may also apply.

Credit Standards: All parties need favorable business credit history but all credit considered

Documentation: Purchase Order samples. Contact and owner information for all parties involved.

Processing Time: 1 to 2 weeks to set up then ability to fund Purchase Orders daily

Benefits and Best Uses of Purchase Order Financing 

Purchase order financing is popular with businesses that require a lot of capital to supplement cash flow to complete projects and accept work orders.

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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 Does Your Philadelphia Area Business Need a Business Loan?

The most common reasons California area businesses acquire capital for their business.

  • Working Capital
  • Equipment
  • Business Expansion
  • Cash Flow shortages
  • Emergencies
  • Advertising

Frequently Asked Questions

Are Business Loans in the Philadelphia area difficult to obtain?

It is not difficult to obtain business financing in the Philadelphia region. 

Can I qualify for a Business Loan in Philadelphia if I have bad credit?

There are many business financing options available for business owners with bad credit. Products and terms will vary depending, and the risks associated with this type of financing will impact terms, pricing, and costs.  

Can I get Business Loan with No-Docs?

Business Credit cards are the only option for true no documentation. Other business funding products have less or reduced documentation requirements you may want to consider because the less documentation you provide, the more likely terms will be less favorable. 

Can I get a Start-up Business Loan in the Philadelphia area?

Getting a start-up business loan is extremely difficult and challenging. SBA loans are the most traditional option, but they are difficult to get approved for. Your search will need to include non-traditional means to raise capital like private sources or investors. 

Advice, Tips, Warning’s about Philadelphia Area Business Loans

When looking for financing for your business, business owners should always begin the process with what is the purpose and use of the money you are trying to acquire for your business. Do you know the obstacles that exist when getting approved? (Credit Issues, Bank Statement cash flow issues, time in business, financial statement issues).

Business financing is significantly different than consumer financing. Underwriting for business funding is much more risk-averse, so you need to take your time in looking through all the options that are available. 

AdvancePoint Capital has been very successful in helping business owners search in an easy and painless way without wasting time or, more importantly, your hard-earned money. AdvancePoint Capital has a large marketplace with many different product offerings. As we always say at AdvancePoint Capital, compare, shop, and you will always save!

How to Apply for Small Business Loan in Philadelphia?

Applying for a loan with AdvancePoint Capital is as simple as a 1, 2, 3, 4 process. Start with this online form, then fill out the short application page, wait a few hours for your approval, and then get your money!

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.

 

* 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.