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Seattle Small Business Loans

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For many business owners in Seattle, the ability to access capital and resources for their business is a necessity. To receive the business funding required to keep their business objectives on track, companies need alternative loan solutions that they can trust. AdvancePoint Capital offers business loans and short-term cash flow options that keep operations afloat and meet your goal.

With all that Seattle has going for it from an economic perspective, small business owners still face many challenges getting small business loans from traditional banks, lenders, or a Seattle credit union. It is challenging because these conventional lending routes have stringent guidelines, requirements, mountains of paperwork, and limited loans to offer small business customers. It’s difficult to get anything from a banking partner or lender. That’s where AdvancePoint Capital’s business finance specialists can help customers meet the business needs of Seattle businesses and can help your business acquire the money you need.

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Getting Approved for Small Business Loans in Seattle, WA: The First Step

AdvancePoint is an excellent resource for business owners with a marketplace full of a variety of alternative funding options for small businesses. When you work with us, you’ll experience outstanding customer service and have access to business resources and an extensive network of lenders. Access updates to the best products, rates, and terms to meet your Seattle business’s needs concerning capital access.

The 8 Best Small Business Loan Options for Seattle Small Businesses

Long-Term Business Loans in Seattle

Lenders define long term business loans as a loan with a payback duration greater than two years. Businesses are offered a fixed amount of capital upfront and charged principal & interest. Unlike a business line of credit, a business owner cannot draw money as they go with long term loans. Typically, these loans are an excellent resource for expansion and growth or help your business finance large projects.

Product Overview

  • Interest Rates: Starting at 5.50% or treasury index plus 1% to 2.5%
  • Term: 2 to 10 years
  • Fees: Origination fees range from 0% to 3% (depends on risk and lender)
  • Loan Payments: Monthly or bi-weekly
  • Credit Requirements: Good to excellent credit score required

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Long-Term Business Loans

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Business Line of Credit

A business line of credit is an open revolving line. This type of funding allows businesses to draw funds when needed or make purchases on-demand—a business line charges a principal & interest rate. Business lines of credit do have a limit that cannot be exceeded without a lender’s approval and is not open-ended forever. Business lines of credit require renewal by lenders either semi-annually or annually to be extended. Entrepreneurs choose a line instead of a loan for the working capital, affordable rates, and flexible terms.

Product Overview

  • Interest Rates: Starting at 5.50% or treasury index plus 1% to 2.5%
  • Term: Open revolving line
  • Fees: Origination fees ranging from 0% to 3%
  • Payment: Monthly, bi-weekly, or weekly
  • Credit Requirements: Fair to excellent credit score required

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Business Line of Credit

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Short Term Small Business Loans

Short term business loans are defined as loans that are typically repaid within 6 to 18 months. These loans feature a lump sum offered upfront with a fixed payback amount calculated using a factor over a short term of time. Rates are not principal & interest but a “factor rate” that costs more than traditional loans.

Most businesses choose short term loans when they do not qualify for traditional loans. Short term loans charge more for costs and are shorter in the duration of repayment. Payments are more frequent to compensate for the higher risks business lenders take in offering this product.

These loans are a popular resource for small businesses because of the reduced documentation requirements and laxer tolerances than traditional loans. Working capital is the primary reason for acquiring funding resources for short term loans.

Product Overview

  • Rates: Factor rates range from 1.09% up to 1.45% or simple interest starts at 1% per month
  • Term: 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 Requirements: All credit types considered from bad to excellent credit score
  • Loan Process: Application and bank statements

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Short Term Business Loans

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Business Cash Advance for Businesses in Seattle

Business cash advances (BCAs) are also known as a purchase of future sales agreement, advancing future sales at a discount to Seattle 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. This 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.

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 account based on the specified percentage of future sales. At the end of every month, reconciliation can occur. Suppose the fixed payments taken out of the bank account monthly are more than the set future percentage of monthly sales. In that case, the company can request a refund 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 is everchanging due to fluctuating revenue. This product is popular with businesses that can not get a bank loan and is a fast way to get funds.

Product Overview

  • Rates: Ranges from 1.09% up to 1.45% 
  • Term: This is not a loan, so there are 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 Requirements: All types of credit considered from bad to excellent
  • Application Requirements: Application and bank statements

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Business Cash Advance

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Merchant Cash Advance for Seattle Small Businesses

A merchant cash advance (MCA) is also known as a purchase of future sales agreement that operates very similarly to BCAs. The most significant difference is the repayment process, which is connected to future credit card revenues 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. Businesses find this valuable when revenues fluctuate, and they don’t want to be locked into a fixed payment that could negatively impact cash flow or profit margins if revenues decline or change.

This product is another great resource for working capital to help your Seattle business. Remember: 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 for the business owner now. This product is popular with companies that can not get a bank loan.

Product Overview

  • Rates:  Range from 1.09% up to 1.45%
  • Term: No time limits
  • Fees: Origination fees range from 0% to 3%
  • Payment: Set fixed percentage of future card revenues
  • Credit Requirements: All types of credit considered from bad to excellent
  • Application Requirements: Application, bank statements, and merchant processing statements

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Merchant Cash Advance

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Equipment Loans and Financing for Small Businesses

Seattle area businesses that require the use of equipment to operate their business often turn to equipment financing to purchase machinery. Equipment loans secure the equipment itself as collateral. The good news is that little paperwork is necessary, such as a one-page application and bank statements, to get approved. Equipment loans are fast and easy loans to apply for, and sometimes approval can happen on the spot, although additional time may be required. This product is most popular for industries in Seattle with a heavy reliance on equipment resources like manufacturing and construction.

Product Overview

  • Rate: Range from 1.09% up to 1.45%
  • Term: 2 to 7 years
  • Fees: Origination fees range from 0% to 3%
  • Payment: Weekly or daily Monday-Friday fixed ACH
  • Credit Requirements: Fair to excellent credit score required

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Equipment Loans

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U. S. Small Business Administration (SBA) Loans for Small Businesses in Seattle, WA

The United States Small Business Administration (SBA) is a Federal government agency, Headquartered in Washington DC, that provides resources, programs, guidelines, and loan guarantees to approved SBA Lenders to issue 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. The Small Business Administration (SBA) provides a guarantee that gives the approved SBA lender the ability to take on the risk of business lending and decisions under SBA terms that they might not ordinarily take on their own. The SBA has rights reserved for any recourse needed. SBA loans are highly sought after by small businesses, and there are many approved lenders to choose from.  SBA Loans application processes can be lengthy, but with an experienced SBA-approved lender to help your business through the application process, the SBA application package can be a smooth and efficient experience. Some SBA Loans due require a business plan. Feel free to contact AdvancePoint Capital for eligibility requirements for SBA programs.

SBA Loan Product Overview

SBA Loan Limits: Up to 5 million
SBA Interest Rates: Starting at 3.50%, treasury index plus 1% to 2.5%
SBA Terms: 3 to 25 years
SBA Fees: Origination fees 0% to 3%
SBA Payments: Fixed monthly
SBA Credit Scores: Good to excellent credit score required

U. S. Small Business Administration Business Financing Programs

U.S. Small Business Administration SBA Standard 7 (a) Loan Programs – SBA loan 7(a) is the SBA’s primary program is designed to provide financial assistance to small business with a good track record. The terms and conditions, like the guaranty percentage and amount, may vary by the type of loans to small business. Real estate may be used for collateral but is not required. Maximum loan size no more than is 5 million.

U.S. Small Business Administration SBA 504 – The SBA 504 Loan is a powerful economic development loan program provides small business another avenue for business funding 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 on your small business. Commercial real estate loans are the most popular use of 504 C. Evergreen Business Capital is the Northwest’s leading Small Business Administration (SBA) / Certified Development Company (CDC) Loan Program expert for 504 C commercial real estate loans. Down payments may be required.

U.S. Small Business Administration SBA Disaster Loan Programs – SBA Economic Injury Disaster Loans (EIDL)- This type of SBA loan not only provides assistance to Seattle small businesses after natural disasters like tornadoes, wildfires, or floods but also when Coronavirus (COVID -19) was declared a nationwide health emergency, congress provided small businesses access to relief options like this SBA loan for emergency funding. This SBA loan was designed for small business to retain employees and other expenses to stabilize the business during Coronavirus (COVID-19) pandemic.

U.S. Small Business Administration SBA Paycheck Protection Program (PPP) – The Small Business Administration (SBA) has established the SBA Paycheck Protection Program loan. This is one of SBA’s relief options that provides loans to small businesses in Seattle affected by the Coronavirus COVID-19 crisis and needs financial help. Under the right conditions, this SBA loan offers forgiveness. This SBA loan was designed for businesses to retain employees and protect jobs during Coronavirus (COVID-19) pandemic.

SBA Express loan programs are partially guaranteed by the Small Business Administration (SBA) with expedited credit decisions. SBA Express loans offer credit decisions in 24 to 36 hours. Like all SBA loans, the SBA doesn’t do any direct lending for SBA Express loans. Instead, the SBA works with a network of approved lenders who actually underwrite and issue the loans. Feel free to contact AdvancePoint Capital for eligibility requirements for SBA programs.

U.S. Small Business Administration (SBA): Additional Information, Resources, and Updates

SBA Learning Center – Financing Your Business – Assess your financing needs and discover SBA financing options for your business.

SBA Grants Programs and Eligibility – Learn about available SBA grants and cooperative agreements to determine if you meet the SBA requirements to apply.

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Small Business Administration (SBA) Loans

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8. Invoice Financing for Small Businesses

Invoice financing advances the outstanding balance to a Seattle business owner to increase cash flow speed 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. This product is standard for industries such as manufacturing.

Product Overview

Interest Rate: None

Term: Not a traditional loan

Fees: 1% to 3% fee based on the invoice. Monthly service fees may apply depending on the volume of invoices factored

Credit Requirements: The credit score of the business owner does not matter

U.S. Small Business Administration

Start, Grow, and Expand your Business
View the Washington State and North Idaho Small Business Resource Guide for information and assistance in growing your local business, exploring funding options, and contracting in Washington State and Northern Idaho.

The fast, convenient, and straightforward way to get the money you need for your small business – now!

Get your quote today by filling out our simple form.

The List of the Most Common Reasons Why Seattle Businesses Need Financing:

  • Access to working capital
  • Equipment purchase and repair
  • Access capital for inventory
  • Business plan expansion
  • Cash flow shortages
  • Access to capital for emergencies
  • Advertising, marketing, and customer acquisition resources
  • Create more jobs, recruit employee, and provide training resources

Frequently Asked Questions by Seattle Small Businesses

It is not difficult to obtain a business loan in Seattle as there are many business lenders and funder’s available that service Seattle.

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

Well, they are about as trustworthy as visiting any Seattle small 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 your home. Both in-person in Seattle or on a website, it’s the same. The businesses you deal with must earn your trust by treating you well, providing outstanding customer service, and offering products and terms to meet your Seattle business’s needs.

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

Initiatives, Government Financing Programs, Coronavirus (Covid-19) Relief Options, Information, Updates, Resources, and Grants in Seattle, WA for Small Business

Seattle Office of Economic Development – Financial Support

Seattle small businesses face massive historical challenges, such as unprecedented levels of construction, skyrocketing rents, and crime. Businesses owned by communities of color, immigrants, and refugees are most likely to be affected negatively by these challenges. Among the most prominent of these barriers is access to capital, limiting the establishment, expansion, and survival of small businesses. SED offers resources and financial support for small business borrowers.

Business.WA.GOV – Small Business Guidance – Business Loan Programs

Linking entrepreneurs and small businesses to Washington state resources. The Small Business Liaison Team (SBLT) consists of representatives from 27 agencies. A primary goal of the SBLT is to have an informed small business community that understands what’s needed to comply with the state’s licensing and regulatory requirements. The team was formalized and expanded in Executive Order 12-01. ORIA acts as a facilitator for monthly SBLT meetings. Subgroups develop outreach programs, solicit ideas for regulatory community impact and improvement, and develop new business tools. SBLT offers assistance for COVID-19 Loans and Grants, COVID-19 Business Resources, and Small Business Guidance.

Washington Small Business Development Center (SBDC)

The Washington Small Business Development Center (SBDC) is a network of more than 30 expert business advisors working in communities across the state to help entrepreneurs or small business owners start, grow, or buy/sell a business. The business center allows Washington State and the Northern Idaho region businesses to grow and succeed through advising, education, and research.

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