AdvancePoint Capital Supports Small Business Loans in the State of Utah

Utah continuously ranks as one of the best, if not “the best” state for small businesses. The State of Utah has a diverse economy with major sectors including financial technology, banking, transportation, education, information technology, and research, government services, and mining and a major tourist destination for outdoor recreation.

Utah’s workforce and labor is a fast-growing labor force that is very well-educated and young. Utah is consistently ranked as one of the fastest-growing economies in the country. That growth has fueled most of their revenue through service industries.

What Are the Benefits of Operating Your Small Business in Utah?

Collaboration between small business, labor, and Utah State and local government is among the reasons why Utah consistently ranks among the best states to do business. Utah also offers one of the lowest tax rates in the United States as well as a sizeable bilingual workforce.

Utah has an increasing presence in prominent small business sectors in Salt Lake City, such as technology, including cloud computing, big data, financial technology, and software development, which has raised the state’s economic prominence nationally and internationally.

As of 2020, Utah tops many economic indicators lists in economic growth and prosperity nationally because you have a well-educated workforce, a relatively affordable, and growing economy, which sets the stage for continued strong economic growth. Quite frankly, Utah, and Salt Lake City, by most economic indicators, is a great place to grow a small business, when compared to the other U.S. States. 

AdvancePoint Capital serves many economic hubs in Utah, including the Salt Lake City metropolitan area, West Valley City, Provo, West Jordan, and the Orem region.

AdvancePoint Capital has a market place of small business loans specializing in industries across the State of Utah to service the needs of the small business community. Let’s explorer the 11 most popular small business funding options in Utah.

The 11 Best Small Business Financing Options in Utah in 2020

Long Term Small Business Loans in Utah

Long term small business loans are business loans with terms greater than 2 years length of repayment. The main benefits of long term small business loans are the length of repayment, the ability to access more capital than shorter-term business loans, affordable monthly payments and to fund growth for the expansion of a small business or large long term projects.

Product Overview

Rates: Interest rates starting treasury index plus 1% to 2.5% (currently 5.5% as of 2020)

Terms: 2 to 10 years

Fees: 0% to 3% Origination Fees

Payments: Monthly or Bi-Weekly payments

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

Processing Times: 3 days to a couple of weeks depending on lender

Learn More

Small Business Line of Credit in Utah

A Small Business Line of Credit is an open revolving line of credit that allows business owners to draw funds when needed on-demand or make purchases up to a certain credit limit. Small business lines of credit require renewal to extend either on a semi-annually or annual basis. The most significant benefit of a small business line of credit over term loans is flexibility because the product allows for a draw of funds on-demand up to the credit limit.

Product Overview

Rates: Interest rates start at treasury index plus 1% to 2.5%

Terms: Open revolving line of credit

Fees: Origination Fees 0% to 3%

Payments: Monthly, Bi-Weekly or Weekly payments

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

Processing Times: Same day to up to a week depending on lender

Small Business Administration(SBA) Loans in Utah

The Small Business Administration (SBA) office is a Federal 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 small business lending with attractive rates and terms that could not normally be afforded to small businesses. Without the Small Business Administration (SBA) guarantees, the approved lender would not be comfortable lending these loans under the terms outlined by the Small Business Administration (SBA). Through the Small Business Administration’s SBA 7(a) loan program and the SBA’s 504 program, Utah businesses were able to raise over 200 million dollars in business loan volume to support their businesses.

Due to the most recent COVID-19  crisis, the Small Business Administration (SBA) has come up with a new program called the SBA Paycheck Protection Plan, which is a loan to help businesses affected by the crisis. SBA loans may be forgiven under certain circumstances. Contact AdvancePoint Capital for more information. AdvancePoint Capital can help guide your Utah business through the process in a clear, fast, and efficient manner to have the best likely hood of approval.

Product Overview

Rates: Rates starting at treasury index plus 1% to 2.5% 

Terms: 3 to 25 years

Fees: Origination fees from 0% to 3%

Payments: Fixed monthly payments

Credit Standards: Good to excellent credit preferred, but all

credit considered.

Processing Time:      Processing times can be 1 week to up to a month,

depending on application volumes, SBA loan selection, or other economic conditions.

U.S. Small Business Administration

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

U.S. (SBA) U.S. Small Business Administration Utah District Office

Small Business Loans from Traditional Banks in Utah

Traditional regional banks in Utah are always a great option to consider if you can qualify for a small business loan because they typically offer attractive rates and terms. Unfortunately, the requirements to obtain loans from one of these types of banks can be challenging. Expect high credit standards, lengthy paperwork requirements, and financial statements, time in business industry experience, and not to mention a lengthy application process. The terms and rates are worth it if you have the time and qualifications to get approved.

The following are popular regional traditional banks that act as Lender in Utah:

  • UtahCDC
  • Bank of Utah
  • Utah First Credit Union
  • First Utah Bank
  • Mountain America Credit Union

Business Credit Cards in Utah

Business credit cards are similar to personal credit cards in that it is an open line of revolving credit that offers an interest rate with a set credit limit. A plastic card is issued that can be used for making purchases or payments. A personal guarantee is required of Utah small business owners.

Product Overview

Rates: Introductory rates of 0% up to 28.99%

Terms: Open revolving line of credit with a set credit limit

Fees: Annual fees range from $0 to $500

Payments: Flexible monthly payments

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

Processing times: Instant approval to same day available

Learn More

Short Term Small Business Loans in Utah

Short term small business loans are defined as loans with terms from 3 to 18 months. Short-term small business loans charge a factor rate and not a principal & interest rate. This option is popular with small businesses that cannot get approved through traditional means because of documentation requirements or credit concerns.

Product Overview

Rates: Factor rates from 1.09% up to 1.45% of funding amount

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 Monday-Friday

Credit Standards: All credit types considered

Processing Times: Same day to 24 to 48 hours

Learn More

Small Business Cash Advance in Utah

Small Business Cash Advances (BCA), also known as a Purchase of Future Sales Agreement that advances future sales at a discount to a business. BCA’s charge a “Factor Rate”, which is a fixed cost, and is the difference between the advance amount and payback amount. A fixed percentage of future overall sales deposits called the specified fixed percentage are the method used for repayment. 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. Reconciliation can occur at the end of every month. There is no term limit with advances. Business Cash Advances are not loans but advances off of future sales of the business.

 Product Overview

Rates: Factor rates from 1.09% up to 1.45%

Terms: No term limits. Payments are based on a specified fixed percentage

collection method and are dependent on future sales

Fees: Origination fees from 0% to 5%

Payments: Weekly or daily Monday-Friday Fixed ACH payments

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

Processing Time: Same day to 24 to 48 hours

Learn More

Merchant Cash Advance for Small Businesses in Utah

A Merchant Cash Advance (MCA) is also known as a Purchase of Future Sales Agreement that operates very similarly to Business Cash Advance. Still, the most significant 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 credit card sales payment methods are used. Advances have no term limit and are connected to future credit card sales. Merchant Cash Advances are not loans but advances off of future sales of the business.

Product Overview

Rates: Factor rates 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: Fixed percentage of future credit card sales as payment

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

Processing Time: Same day to 24 to 48 hours

Learn More

Equipment Financing for Small Businesses in Utah

Equipment financing is an option that secures the equipment as collateral for purchase. Good to excellent credit is required, and the type of equipment needs to be approved by the equipment financing company to acquire equipment financing. Know cash out in addition to the purchase can be made.

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 required.

Time Frames: Instant funding, same day up to 3 days depending on the lender

Learn More

Invoice Financing for Small Businesses in Utah

Invoice financing allows business owners to get an advance on their invoices to clients before their clients pay the invoice. Invoice finance companies advance to the business owner the invoice once an invoice is submitted to them in exchange for a nominal fee. The invoice finance company, not the business owner, is then responsible for collections of the invoice advanced. This small business funding product is an excellent solution for cash flow crunches without having to wait for 30, 60 up to 90 days or more for invoice terms to be paid by clients. Invoice financing is not a loan, but an advance off of specific invoices.

Product Overview

Rates: None

Terms: No term limits because it is not a loan.

Fees: 1% to 2.5% 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

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

Learn More

Purchase Order Financing for Small Businesses in Utah

Purchase order financing offer allows business owners the ability to raise capital to pay suppliers upfront for verified purchase orders and collect invoices upfront on the back end. Purchase order financing 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 funder will subtract their fees and then sends the balance of the invoice to your business. They are used to support the entire distribution chain with capital so the business owners don’t need to tap into existing cash flow and can’t take on larger orders and projects without raising traditional capital. Purchase order financing is not a loan.

Product Overview

Rates: None

Terms: No term limits because it is not a loan.

Fees: 1% to 3% fee for each purchase order.

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

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

Learn More

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.

Utah Business Resources for Utah Business Owners

Utah Governor’s Office of Economic Development

Utah Governor’s Office of Economic DevelopmentUtah Offers Small Businesses Assistance Amid Coronavirus (COVID-19) Pandemic. In partnership with Utah’s congressional delegation, the state emergency management division and the Utah governor’s office, the Utah Governor’s Office of Economic Development (GOED) announced today that businesses in all 29 Utah counties are now eligible to apply for low-interest loans through the Small Business Administration.

Utah Governor’s Office of Economic DevelopmentUtah Leads Together Small Business Bridge Loan Program – The Utah Leads Together Small Business Bridge Loan program used $12 million in state funds to provide gap funding to Utah’s small business and nonprofit entities.

Utah’s Business Resource Center

The Small Business Development Centers/Small Business Administration, Procurement Technical Assistance Center, Manufacturer’s Extension Partnership and Service Corps of Retired Executives coordinate the resources of local business service provider partners to offer comprehensive services and on-going assistance to help businesses expand and grow.

Utah’s Opportunity Zones

There are 46 Opportunity Zones located throughout the state, which provide investors with endless potential to generate lasting community impact while earning significant returns.

Utah Governor’s Office of Economic Development | Bridge Loan Program

The Utah Leads Together Small Business Bridge Loan program uses $11 million in state funds to provide gap funding to Utah’s small business and nonprofit entities.

Utah’s Office of Rural Development (ORD)

The Office of Rural Development (ORD) works with businesses in Utah’s rural counties, providing resources and loan programs to sustain business and improve employment opportunities.  The office collaborates with local governments and other development partners to support rural economic growth.

Utah SBIR CenterThe Utah SBIR Center assists small businesses statewide to apply for the federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) funding programs, giving Utah businesses with technology-oriented companies a distinct advantage in today’s competitive environment. This non-dilutive funding mechanism, both grants, and contracts are dedicated to the arch and development of new technology.

UtahCDC |Utah Certified Development Company– Utah CDC is a Certified Development Company (CDC), authorized by the U.S. Small Business Administration (SBA) to serve the Utah Small Business Community. Working as a partner with the SBA and a private-sector lender, we assist small businesses in financing up to 90% of the purchase of long-term fixed assets, such as land, building (existing and new construction), and equipment.

Why Does Your Utah Business Need a Business Loan?

The Most Common Reasons Utah Small Businesses Acquire Capital for Their Business

  • Loan for Working Capital- General purpose cash flow needs of a small business        
  • Loan for Business Expansion- Funds business opportunities to expand business or take advantage of business opportunities that require upfront capital.·        
  • Loan for Equipment Purchases- The purchase of equipment essential to the process and/or workflow of a business.·        
  • Loan for Advertising/Marketing Costs- Money to implement marketing strategies and methods to increase customer base and add customer’s continuously.·        
  • Loan for Emergencies– Money for the unexpected. There will always be issues in running a business that can arise without notice.

Frequently Asked Questions

Are Business Loans for small businesses located in Utah difficult to obtain? Is it difficult to find a lender?

Utah is a great state to operate a business! Wall Street had an article Dec 2019 “Why Utah has become America’s Economic Star” and Inc. on Aug 2019 ranked Utah #2 Best States to Start a Business. There are a variety of options that can fulfill your business financing needs. Let AdvancePoint Capital assist you through the process.

Are there any challenges, compared to other states, in operating a business in Utah?

Utah does not have any unique challenges to operate a business. Utah is ranked #3 by Forbes Dec 2019 as the “Best State for Business”. Utah is universally accepted as one of the friendliest states to operate a business.

How do I start a business in Utah? Is there a start-up Utah Business Loan available?

Small businesses in Utah turn to the Small Business Administration SBA loan for help.

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

Despite bad credit, there are many business financing alternatives available for Utah business owners. Business loan terms will vary depending on product and are linked with risk, so expect terms, pricing, and costs to be impacted if you have bad credit.

The Bottom Line: Advice, Tips, Information, and Warnings about Business Loans in Utah

Utah businesses should begin the search for business loans with a question: What are they using the loan for? How will getting a business loan benefit the business? Have you been educated as to all of the different types of business financing products available in the marketplace? Do you have all the information needed to decide on a loan? What are the stumbling blocks to getting approved for a business loan? (Credit issues, cash flow issues, time in business and financial statements) Do you know the reputation of the business lender you are choosing?

Slow down and take your time looking through all business financing options that are available in the market. Always consider a cost versus benefit analysis to make sure there is value, and getting business financing is worth it!

AdvancePoint Capital helps Utah businesses search for information in a streamlined process, using our Business Product Marketplace, so you don’t end up wasting time or, more importantly, you’re hard-earned money. We always say at AdvancePoint that choices give you the freedom and opportunity to make better decisions. If you shop and compare, you will always save!

How to Apply for Small Business Loan in Utah

Applying for a loan with AdvancePoint Capital makes it simple for businesses with an easy 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!

AdvancePoint Capital

The fast, convenient, and straightforward way to get the business loan 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.