With over 1.6 million residents, the city of Phoenix, Arizona, is the fifth most populous city and largest state capital by population in the United States. Arizona borders eight other states, but Phoenix is the anchor of the area. The area is also known as the Valley of the Sun, which is part of the greater Salt River Valley. The metropolitan area, including Scottsdale, Arizona, is the 11th largest metro area in the U.S. by population, with approximately 4.73 million people residing in its limits as of 2017. Phoenix is home to the well-known Maricopa County and is the largest city in Arizona at 517.9 square miles.

In its early years, Phoenix’s economy focused on agriculture and natural resources. These industries mainly focused on the “Five Cs,” which are copper, cattle, climate, cotton, and citrus. As of 2017, the Phoenix MSA had a gross domestic product (GDP) of just under $243 billion. Currently, the area’s top industries are real estate, finance, insurance, manufacturing, retail trade, healthcare, and government (including federal, state, and local governments).

Even though there are some great opportunities in the Phoenix/Scottsdale metropolitan area from an economic perspective, it’s still challenging for small businesses to find adequate financing. Traditional lenders like banks and credit unions have stringent guidelines, credit requirements, mountains of paperwork, and limited loan offerings. Plus, there’s no guarantee you’ll even get approval from these lending outlets. That’s where AdvancePoint comes in, providing help to your small business. We have an abundance of financing options available that credit unions and banks simply do not offer to small businesses in the Phoenix area.

How to Get a Small Business Loan in Phoenix, Arizona?

AdvancePoint is a great online resource when looking for loans. It is a business lending marketplace full of various alternative business loans and financing options that are excellent for small business capital needs.

The 9 Best Small Business Financing Options for Phoenix, Arizona Small Businesses

1. Long Term Business Loans

Lenders define long term small business loans as loans with a duration exceeding two years. Businesses in Phoenix, Arizona, are offered a fixed amount up front and then charged principal and interest. Unlike a business line of credit, you cannot draw money as you go with long term loans. Typically, long term loans are a great resource for businesses because you can use the extra capital for expansion and help finance larger projects.

Product Overview

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% (depends on risk and lender)
Loan Payments: Monthly or bi-weekly
Credit Score Standards: Good to excellent preferred. All types are considered.
Documentation to Include: Application, business bank statements, and financial statements.

2. Business Line of Credit

Business lines of credit are an open revolving line of funding that allows Phoenix businesses to draw funds on-demand as needed or make essential purchases. This type of funding charges a principal and interest rate to small business owners in Phoenix. Business lines of credit have a limit that cannot be exceeded without a lender’s approval and require renewal by lenders either semi-annually or annually to be extended. The primary reasons entrepreneurs in Phoenix, Arizona, choose a business line of credit instead of loans are working capital business needs, affordable rates, and flexible terms.

Product Overview

Interest Rates: Starting at 5.50% or treasury index plus 1% to 2.5%
Terms: Open revolving line
Fees: Origination fees ranging from 0% to 3%
Payment: Monthly, bi-weekly, or weekly
Credit Score Standards: Good to excellent preferred. All types are considered.
Documentation to Include: Application, business bank statements, and financial statements.

3. Short Term Small Business Loans

Phoenix’s small businesses can obtain short term business loans, defined as loans typically repaid within 6 to 18 months of issue. These loans offer a lump sum upfront with a fixed payback amount. The payback amount is calculated using a factor over a short term of time. The rates are not principal and interest, but instead a “factor rate” that costs more than traditional loans.

Most Phoenix businesses choose a short term business loan when they do not qualify for a traditional business loan. Short term loans charge more for costs, and the repayment duration is much shorter. Payments are made more frequently to compensate for the higher risks lenders take in offering this product. These loans are a popular resource for many small businesses in Phoenix because of the reduced documentation requirements (no financial statements required) and much more relaxed tolerances than Phoenix’s traditional lending outlets. This product is a fantastic solution for working capital business needs.

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 (depends on lender and risk)
Payments: Weekly, bi-weekly, and in some cases daily (Monday-Friday)
Credit Standards: All types considered
Documentation to Include: Application and business bank statements (in some cases financial statements)
Processing Time: Quick! Same day to 24 hours

4. Business Cash Advance

Business cash advances (BCA) are also known as a purchase of future sale agreements, which advances future sales at a discount to Phoenix businesses. The business is responsible for paying back a fixed payback known as a specified amount, which is higher than the amount that was advanced to the company. The difference between the advance amount and the payback amount is called the “factor rate or cost,” which is a fixed cost. These are not principal & interest costs.

Phoenix businesses repay the advance 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 bank account based on the specified percentage of future sales. At the end of every month, reconciliation can occur. If the fixed payments taken out of the bank account monthly are more than the set future percentage of monthly sales, Phoenix business owners can request a refund back to the business for overpayment so that the set specified percentage of sales collected for the business matches the revenue volumes. Repayment continues until the payback amount is paid back in full. There is no time limit with advances as the fixed payback percentage ever changes due to fluctuating revenue. This product is an excellent solution for working capital business needs.

Product Overview

Amounts: $10,000 to $500,000
Rates: Ranges from 1.09% up to 1.45%
Term: No time 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 accepted. All types are considered.
Documentation to Include: Application and business bank statements
Processing Time: Quick! Same day to 24 hours

5. Merchant Cash Advance

A merchant cash advance, also known as a purchase of future sales agreement, operates very similarly to BCAs. The most significant difference is the repayment process, which is connected to future credit card revenue instead of overall sales. MCAs take a set percentage of future card sales at the time of batch until the advance is paid back in full by a Phoenix business.

Phoenix business owners find this type of funding valuable when they have fluctuating revenue. Business owners don’t want to lock themselves into a fixed payment that could negatively impact cash flow or profit margins if revenues decline or fluctuate. This product does not require financial statements like tax returns. As a reminder, a merchant cash advance is not a loan, but an advance, by selling a portion of the business’s future sales at a discount to a funder in exchange for cash now. Although it is not a loan, this product is still a fantastic solution for Phoenix’s business owners with working capital business needs.

Product Overview

Amounts: $10,000 to $500,000
Rates: Range from 1.09% up to 1.45%
Terms: No time limits
Fees: Origination fees range from 0% to 3%
Payment: Set fixed percentage of future credit card revenues
Documentation to Include: Application, merchant processing statements, and business bank statements
Processing Time: Quick! Same day to 24 hours

6. Equipment Loans

Phoenix area businesses that use equipment during daily operations often turn to equipment loans to purchase machinery. This fantastic funding option secures the equipment itself as collateral in the event a business owner defaults. The good news for Phoenix businesses is that equipment financing requires limited paperwork. All you need is a one-page application and a few bank statements to get started. Equipment loans are easy to apply for and fast to obtain. Sometimes, business owners can be approved on the spot, although additional time is typically required.

Product Overview

Rate: Range from 1.09% up to 1.45%
Term: 2 to 7 years
Fees: Origination fees range from 0% to 3%
Payments: Weekly or daily (Monday-Friday) fixed ACH
Credit Standards: All types considered
Documentation Required: Application and bank statements

7. Small Business Administration (SBA) Loans for Businesses in Arizona

The Small Business Administration (SBA) is a Federal government agency that provides programs, guidelines, and loan guarantees to approved Virginia SBA Lenders to issue business loans to small businesses. The Small Business Administration’s (SBA) mission is to help American enterprises to start, build, and grow their businesses successfully.

The SBA is not a lender. Instead, the Small Business Administration provides a guarantee that gives approved lenders the ability to take on the risk of business funding and credit decisions under Small Business Administration (SBA) terms. These lenders would not ordinarily do so independently, and the SBA has rights reserved for any recourse needed. Small Business Administration (SBA) loans are highly sought after by small businesses, and there are many government-approved lenders to choose from. Phoenix business owners should expect an SBA loan to require a business plan. SBA application processes can be lengthy, but with the help of an experienced SBA-approved lender to get your business through the application process, the experience can be smooth and efficient.

Product Overview

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
Credit Standards: Good to excellent preferred, but all credit considered (all rights reserved)
Documentation Required: Application, bank statements, and other financial statements.

Small Business Administration (SBA) Government Funding Programs for Small Businesses:

Small Business Administration Resource: How does a business qualify for an SBA loan?

SBA Standard 7 (a) Loan Program- SBA loan 7(a) is the SBA’s primary program is designed to provide financial assistance to small businesses with a good track record. Like the guaranty percentage and loan amount, the terms and conditions may vary by the type of loans to small businesses. Real estate may be used for collateral but is not required.

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

SBA Disaster Loans- Economic Injury Disaster Loans (EIDL)- This type of SBA loan not only provides assistance after natural disasters like tornadoes, wildfires, or floods but when President Trump declared COVID -19 a nationwide health emergency based on the recommendation of the CDC on March 13th, congress provided small businesses access to this program for emergency financing.

SBA Paycheck Protection Program (PPP) Loan- The Small Business Administration (SBA) has established the SBA Paycheck Protection Program loan. This SBA loan provides loans to small businesses affected by the COVID-19 crisis and needs financial help. Under the right conditions, this loan program offers forgiveness.

U.S. Small Business Administration Phoenix, Arizona District Office

U.S. Small Business Administration

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

8. Invoice Financing

Invoice financing advances the outstanding balance to a business owner to increase cash flow speed to the business. This solution provides cash quickly, so 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% in fees based on the face value of the invoice advanced. Invoice financing improves cash flow to Phoenix area businesses and helps level out working capital.

Product Overview

Amounts: Unlimited
Rates: None
Terms: Not a traditional loan
Fees: 1% to 3% fee based on invoice. Monthly service fees may apply depending on the volume of invoices factored
Credit Standards: Clients need to be favorable, NOT the owner advancing off invoices.
Documentation Required: Application, invoices, and accounts receivable

9. Purchase Order Financing

Purchase order financing offers businesses the ability to raise money 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. This is not a loan but an advance of a purchase order.

Product Overview

Amounts: Unlimited
Rates: None
Terms: Not a traditional loan
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.
Documentation Required: Application, invoices, accounts receivable, and/or accounts payable

The fast, convenient, and straightforward way to get the money you need for your Arizona small business – now! Get Your Business a Quote Today by filling out our simple form.

Why Do Arizona Small Business Owners Need Financing?

The list of the most common reasons small business owners use business financing.

  • Working capital loans
  • Equipment purchase and repair
  • Inventory needs for funds
  • Finance business plan expansion (capital for growth)
  • Office renovation
  • Cash workflow shortages
  • Website development and website maintenance for online customer services
  • Emergency needs for funds
  • Advertising and marketing to acquire customers
  • Jobs creation (employees), employee training resources, and expenses

Frequently Asked Questions by Business Owners in Arizona

Are there a lot of business lenders in the Phoenix/Scottsdale Arizona area? Is it hard to find a business loan?

It is not difficult to obtain business funding in Phoenix. There is an abundance of business lenders and funding options available to service the entire metropolitan area. Choose your lender and business loans wisely.

Can I apply for business loans using an online business financing website? Is it trustworthy?

The internet can be an invaluable resource when searching for a business lender. In 2020, most companies now search on the internet for business funding websites to glean additional information, find reviews on a business lender, and in many cases, inquire about getting more information and apply for a quote on a business lender website. This allows companies to shop, compare, and potentially save significantly.

Are websites really reliable? Well, they are about as trustworthy as visiting any business. You are not evaluating the website as much as you are the company and people you speak and communicate with. The website is merely the port of entry, just as if you were walking into businesses on main street, without leaving the comfort of home. The businesses you deal with must earn your trust by the way you are treated and the products and terms you are offered.

Can applicants qualify for small business loans if they have bad credit?

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

Financial Initiatives, Programs, and Small Business Grants in Arizona for Small Businesses. Additional Financial Resources, Support, and Information About Small Business Loans

City of Phoenix Grants and Funding

America’s SBDC Arizona- The AZSBDC Network provides one-on-one confidential evaluation and guidance by Business Advisors with business ownership and management experience to help you fast-track your plans and position your business for success. They also offer affordable workshops and seminars to help you gain the financial knowledge and skills you need to succeed.

Arizona Commerce Authority – LOANS AND LOAN PROGRAMS

The Best Financial Advice, Tips, and the Pros and Cons for Arizona Small Business Owners

When looking for funding for your business, companies should always begin the process by asking yourself 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, business banking account cash flow, time in the industry, financial statement)? Do the work necessary to search for the proper solution to your financial problem.

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

AdvancePoint Capital has the experience and is very successful in helping Arizona businesses search for business lending solutions easily and painlessly without wasting time or, more importantly, your hard-earned money. Our services, process, and customer service are legendary, and you will not regret using AdvancePoint Capital’s services as a resource to get funds.
As we always say, let us do the work, get the offers, shop, compare, and you will always save!

How to Find, Apply, and Get Business Loans in the Phoenix/Scottsdale Metropolitan Area

Applying for a business loan with AdvancePoint Capital is a simple, easy, and streamlined application process with decisions in hours, not days. We will make the work of finding available loans easy. Start with this online form (don’t forget your email), 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 agent. Let us show you the benefits of working with AdvancePoint and take the first steps in the business loan process so that you can make informed decisions. Experience the customer service of AdvancePoint Capital.

The quick, convenient, and straightforward way to get the funding you need to grow your business – now! Contact AdvancePoint Capital and Get your Quote Today by filling out our simple form or call 800-381-8920.

The quick, convenient, and straightforward way to get the funding you need for your business – now!

Contact AdvancePoint Capital and Get your Quote Today by filling out our simple form.

Get Quote Now!

* 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.