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 (which includes Philadelphia County, Bucks County, Montgomery County, Delaware County, and Chester County) is the 8th largest U.S metro area, 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 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. Many Philadelphia finance companies for small businesses do not serve the needs of those businesses due to strict guidelines and credit requirements.

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 small businesses in the Philadelphia area.

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

The 10 Best Small Business Financing Options for Philadelphia Area Small Businesses

1. Long Term Business Loans for Philadelphia Small Business

Long term small business loans are small 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. Use this business funding for long-term projects and needs.

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%

Payment: Monthly or Bi-Weekly

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

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2. Business Line of Credit for Philadelphia Small Business

A Business line of credit is an open revolving line of credit. This type of funding allows business owners to draw funds when needed on-demand or make purchases—a business line of credit charges a principal & interest rate. Without approval, exceeding the credit limit of business lines of credit is not allowed. Business lines of credit are not open-ended forever and require renewal either semi-annually or annually to be extended. This business funding is primarily used for small purchases and working capital.

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% 

Payment: Monthly, Bi-Weekly or Weekly

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

Processing Time: Same day to up to 5 days 

3. Small Business Credit Cards for Philadelphia Small Business

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

Payment: Flexible monthly

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

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4. Short Term Small Business Loans for Philadelphia Small Business

Short term business loans are defined as business loans that are typically repaid with 6 to 18 months. This small business funding features a lump sum offered up front 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 short term business loans when they do not qualify for conventional business funding. Short term small business loans charge more for costs and are shorter-term, and the payments are more frequent to compensate for the higher risks business lenders take in offering this product. These loans popular with small businesses because of the reduced documentation requirements and credit tolerances that are laxer than traditional business loans. This business funding option can be used for a variety of short term needs, including working capital.

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 

Processing Time: Same day to 24 hours

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5. Business Cash Advance for Philadelphia Small Business

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 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. This is not principal & 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 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 the overpayment. 

This is so that the set specified percentage of sales collected for the company matches the revenue 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 revenue. This type of business funding is primarily used for working capital needs.

Product Overview

Rate: 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 revenues

Fees: Origination fees that range 0% to 5% 

Payment: Weekly or daily Monday-Friday Fixed ACH

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

Processing Time: Same day to 24 to 48 hours

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6. Merchant Cash Advance for Philadelphia Small Business

A Merchant Cash Advance (MCA) is also known as a Purchase of Future Sales Agreement that operates very similarly to BCA’s. Still, the most significant difference is the repayment process, which is connected to future credit card revenues 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 revenues and don’t want to be locked into a fixed payment that could negatively impact capital or margins of profit if revenues decline or fluctuate. This small business funding is used primarily for working capital needs.

Product Overview

Rate: 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%

Payment: Set fixed percentage of future credit card revenues withdrawn at time of batch of credit card revenues

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

Processing Time: Same day to 24 to 48 hours

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7. Equipment Financing for Philadelphia Small Business

Philadelphia area businesses that use equipment to operate often turn to equipment financing for the purchase of machinery. This type of funding uses the equipment as collateral. Business owners must have very good to excellent credit, but the good news is limited paperwork is necessary to get approved. 

Product Overview

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

Terms: 2 to 7 years

Fees: Origination fees range from 0% to 3% 

Payment: Weekly or daily Monday-Friday fixed ACH

Credit Standards: All credit considered

Time Frame: Same day up to 3 days

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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 Small Business Administration 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 by Philadelphia small businesses.

Product Overview

Rate: Interest rates starting at 5.50%, treasury index plus 1% to 2.5%  

Terms: 3 to 25 years 

Fees: Origination fees 0% to 3%

Payment: Fixed monthly

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

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

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

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. 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- The SBA 504 Loan is a powerful economic development loan program that will provide small businesses another avenue for business funding 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)-These loans only assist in natural disasters like tornadoes, wildfires, or floods, but when President Trump declared 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 loans to small businesses affected by the COVID-19 crisis and need financial help.

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9. Invoice Financing for Philadelphia Small Business

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 from 1% to 2.5% fee off of the face value of the invoice advanced.

Product Overview

Rate: None

Terms: No term limits 

Fees: 1% to 3% fee based on invoice. Monthly Service fees may apply depending on

the volume of invoices factored

Credit Standards: Credit of the clients need to be favorable, NOT the business owner advancing off invoices. This is not a credit score driven product.

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

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

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10. Purchase Order Financing for Philadelphia Small Business

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

Rate: None 

Terms: No term limits 

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

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

Processing Time: 1 to 2 weeks to set up then ability to fund purchase orders daily

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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 Business Funding?

The most common use of proceeds Philadelphia, PA, area small businesses acquire capital for their business.

  • Working Capital loan
  • Equipment
  • Business Expansion
  • Business Development
  • Cash Flow shortages
  • Emergencies
  • Advertising
  • Any legitimate business purpose or use

Frequently Asked Questions

Are Small Business Loans in the Philadelphia area difficult to obtain? Do I need a down payment?

It is not difficult to obtain business financing in the Philadelphia region. There is no down payment required for most small business loans.

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

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

Can I get a Small Business Loan with No-Docs?

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

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

Getting a start-up business loan is extremely difficult and challenging. SBA loans are the most traditional financing choice, but they are challenging to get approval on. A small business owner’s search will need to include non-traditional means to raise capital like private sources or investors.

Additional Resources and Information

Initiatives, Programs, Grants for small businesses in Philadelphia  –  Philadelphia COVID-19 Small Business Relief Fund. Providing some small businesses impacted by the COVID-19 pandemic with immediate Philadelphia, PA financial relief, and working capital for small business owners through a mix of grants and loans. Philadelphia small businesses can apply for the three relief programs through a single application.

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

When looking for financing for your business, small business owners should always begin the process with what is the purpose and use of the funds 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 than consumer lending, so you need to take your time in looking through all the options that are available by lenders. 

AdvancePoint Capital has been very successful in helping small business owners search for business financing solutions easily and painlessly without wasting time or, more importantly, your hard-earned money. AdvancePoint Capital has a great marketplace of loan options with many different product offerings, providing flexibility.

As we always say at AdvancePoint Capital, compare, shop, and you will always save!

How to Apply for Small Business Loans in Philadelphia?

Applying for a loan with AdvancePoint Capital is a simple, secure, and streamlined application process with decisions in hours, not days. Start with this online form, then fill out the short application page, wait a few hours for your approval, and then get your funding! Or you can call toll free phone number and speak to a loan specialist.

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.

 

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* 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.