For many entrepreneurs in Washington, DC the ability to access capital and resources for their business is a necessity. To receive the small business loans they need to keep their business objectives on track; small businesses need alternative small business 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 Washington, DC has going for it from an economic perspective, entrepreneurs in DC still face many challenges getting small business loans from traditional banks, lenders or credit unions because they have stringent guidelines, requirements, mountains of paperwork, and limited loans to offer to small business customers. It’s difficult to get anything from a banking partner or lender. That’s where AdvancePoint Capital’s services can help small business owners meet the needs of Washington, DC businesses by offering a variety of business financing options.

How Do I Get Approved for Small Business Loans in Washington, DC? What Are the First Steps?

AdvancePoint is a great resource for business owners with a marketplace full of a variety of alternative funding options for small businesses. Experience our customer service and unleash all of the business services, a network of lenders, and relationships we have at our disposal, so you can access the best products, rates, and terms that meet your business needs. As it relates to access to capital and obtaining business loans, AdvancePoint Capital is second to none. Contact us and speak to a business representative.

The 8 Best Small Business Loan Options for Washington, DC Small Businesses

1. Long-Term Small Business Loans for Washington, DC Small Businesses

A business lender defines Long term business loans as a term loan with a duration of greater than two years. Businesses are offered a fixed amount upfront and charged principal & interest. Unlike a business line, you cannot draw money as you go. Typically, a long term business loan is a great business funding tool used for large capital requirements like business expansion and growth or to help finance large projects. Business assets may be needed for collateral.

Business Funding Product Overview (Rates and Terms)

Interest Rates: Starting at 5.50% or treasury index plus 1% to 2.5%
Repayment Terms: Long term loans are defined as greater than 2 years and up to 10 years or more
Fees: Origination fees range from 0% to 3% (depends on risk and lender)
Loan Payments: Monthly or bi-weekly
Borrower Credit Requirements: Good to excellent credit score required

2. Business Lines of Credit for Small Businesses in Washington, DC

Small business Lines of credit are open revolving lines. This type of funding allows businesses to draw funds when needed on-demand or make purchases. Lines of credit charge principal & interest. Business lines of credit have a limit that cannot be exceeded without a lender’s approval and is not open-ended forever and requires renewal by lenders either semi-annually or annually to be extended. The primary reason small business owners choose lines of credit instead of term business loans is the draw feature, affordable rates, and flexible terms. This product is popular with businesses that need working capital and need a fast way to get funds. This financing option is not a loan.

Business Funding Product Overview

Interest Rates: Starting at 5.50% or treasury index plus 1% to 2.5%
Repayment Terms: Open revolving lines of credit
Fees: Origination fees ranging from 0% to 3%
Payment: Monthly, bi-weekly, or weekly
Borrower Credit Scores: Fair to excellent credit score required
Borrower Loan Application Requirements: Loan application and bank statements

3. Short Term Small Business Loans for Small Business Owners in Washington, DC

Short term business loans are defined as loans that are typically repaid with 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, and the payments are more frequent to compensate for the higher risks lenders take in offering this product. These loans are a popular resource for small businesses because of the reduced documentation requirements and tolerances that are laxer than traditional loans. Working capital is the primary reason for acquiring funding resources for short-term loans.

Business Funding Product Overview

Interest Rates: Factors range from 1.09% up to 1.45% or simple interest starts at 1% per month
Repayment 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
Borrower Credit Scores: All credit types considered from bad to excellent credit score
Application Process: 1-page application and bank statements

4. Business Cash Advance for Small Business Owner in Washington, DC

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 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 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, the business can request a refund back for overpayment so that the set specified percentage of sales collected 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 popular with businesses that can not get a bank loan, need working capital, and need a fast way to get funds. This financing option is not a loan. Business cash advances are a popular tool with entrepreneurs in service industry businesses like restaurants.

Business Funding Product Overview

Factor Rates: Ranges from 1.09% up to 1.45%
Repayment Terms: 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 Scores: All types of credit considered from bad to excellent
Application Process: 1-page application and bank statements

5. Merchant Cash Advance for Small Business Owners in Washington, DC

A merchant cash advance (MCA) is also known as a purchase of future sale agreement that operates very similarly to BCAs, but the most significant difference is the repayment process, which is connected to the 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 they have fluctuating revenues and don’t want to be locked into a fixed payment that could negatively impact cash or margins of profit if revenues decline or fluctuate.

This product is another great resource for working capital needs. 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 for the business owner now. This product is popular with small entrepreneurs that can not get a bank loan and need working capital. This financing option is not a loan. Merchant cash advances are a popular tool with entrepreneurs in service industry businesses like restaurants.

Business Funding Product Overview

Rates:  Range from 1.09% up to 1.45%
Repayment Term: No time limits
Fees: Origination fees range from 0% to 3%
Payment: Set fixed percentage of future card revenues
Borrower Credit Scores: All types of credit considered from bad to excellent
Application Process: 1-page application, bank statements, and merchant processing statements

6. Equipment Financing for Small Business Owners in Washington, DC

Washington, DC businesses that require the use of equipment to operate their business often turn to equipment financing for the purchase of machinery. Equipment financing secures the equipment itself as collateral. The good news is limited paperwork is necessary such as a one-page application and bank statements to get approved. Equipment financing is fast and easy loans to apply for and sometimes can be approved on the spot, although additional time may be required. Equipment financing is most popular for industries that have a heavy reliance on equipment resources like manufacturing and construction.

Funding Product Overview

Rate: Range from 1.09% up to 1.45%
Repayment Terms: 2 to 7 years
Fees: Origination fees range from 0% to 3%
Payment: Weekly or daily Monday-Friday fixed ACH
Credit Scores: Fair to excellent credit score required
Application Process: 1-page loan application and equipment Invoice

7. U.S. Small Business Administration (SBA) Loans for Small Businesses in Washington, DC

The United States Small Business Administration (SBA) is a federal government agency, Headquartered in Washington DC, that provides resources, programs, guidelines, and small business 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 lending and decisions under SBA term’s that they would not ordinarily do so on their own and has rights reserved for any recourse need. SBA loans are highly sought after by small businesses and there are many approved lenders to choose from.

SBA loan application processes can be lengthy, but with help of 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 and speak to a business representative for eligibility requirements of SBA small business loans in Washington, DC.

SBA 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 Requirements: Good to excellent credit score required
SBA Application Process: SBA loan application, business assets, and numerous financial statements

U.S. Small Business Administration Small Business Loan Options

U.S. Small Business Administration SBA Standard 7 (a) Small Business Loan Program – SBA loan 7(a) is the SBA’s primary program is designed to provide financial assistance to small business with a good track record. This product is a business term loan. The rate, terms, and conditions, like the guaranty percentage and amount, may vary by the type of loans to small businesses. Real estate may be used for collateral, but is not required.

U.S. Small Business Administration SBA 504The SBA 504 Loan is a business term loan and a powerful economic development loan program that provides small businesses another avenue for business loans while promoting business economic development and equity. SBA 504 is typically for large capital requirements like real estate transactions, the use of proceeds from SBA 504 Loans must be used for fixed assets such as construction, owner-occupied commercial real estate, or mixed-use real estate. Common uses for SBA 504 include; repair facilities, land improvements (and certain soft costs), or can also be used to refinance existing debt on your small business. Real Estate equity may be required for collateral for SBA 504 Loans.

U.S. Small Business Administration SBA Disaster Small Business Loan Program – SBA Economic Injury Disaster Loans (EIDL)-This type of SBA loan not only provides assistance to Washington, DC 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 small business loans to small businesses in Washington, DC 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. Real Estate is NOT required to get funding for businesses.

SBA Express Loan Program are small business loans that 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 actually 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.

A common question with SBA is, How long does it take to get the funds from an SBA loan? The answer is typically a couple of weeks to a month so be prepared. Feel free to contact AdvancePoint Capital a speak to a business representative for eligibility requirements for SBA small business loans

U. S. Small Business Administration (SBA) Additional Information, Resources, and Updates for Washington, DC Small Businesses. How Do I Qualify for an SBA Loan?

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

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

 

U.S. Small Business Administration

Start, Grow, and Expand your Business
View the Washington Metropolitan Area Small Business Resource Guide for information and assistance in growing your local business, exploring funding options, and contracting in the Washington DC Metropolitan Area.

 

8. Invoice Financing for Small Businesses in Washington, DC

Invoice financing advances the outstanding balance to a small business 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. This product is common for industries such as manufacturing. This financing option is not a loan.

Business Funding Product Overview

Interest Rate: None
Repayment Terms: 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
Borrower Credit Requirements: The credit score of the business owner does not matter

The fast, convenient, and straightforward way to get the business funding you need for your Washington, DC business – now! Get your business a quote and more information today by filling out the simple form on our website.

The List of the Most Common Uses of Small Business Loans for Washington, DC Small Businesses

  • Working Capital
  • Equipment Purchase and Repair
  • Inventory
  • Business Development and Growth
  • Cash Flow
  • Increase Business Assets
  • Resources to Repair Facilities
  • Emergencies Business Expenses
  • Advertising / Marketing / Customer Acquisition Goals
  • Create jobs, Recruit Employees and Training Resources
  • Real Estate Transactions
  • General Business Expenses

Frequently Asked Questions by Washington, DC Small Business Owners

Is it hard to obtain capital and/or small business funding in Washington, DC?

It is not difficult to obtain small business loans in Washington, DC as there are many business lenders and funder’s available that service Washington, DC.

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

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 information and apply for a quote on a business lender website. This allows businesses to shop, compare, and potentially save significantly. Are websites trustworthy? Well, about as trustworthy as visiting any Washington, DC 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.

Can Washington, DC small business qualify for business financing if they have bad credit? What credit score is needed to get a business loan?

There are many business lending options available for small business owners with bad credit in Washington, DC. Credit scores can be as low as 500 and below, but financing options will vary depending on the risks associated with this type of funding and will impact terms, pricing, and costs. Contact us for business funding options to consider.

Does AdvancePoint Capital offer any startup capital and/or funding?

Unfortunately, AdvancePoint Capital does not offer startups small business loans at this time. The small business must be in business generating revenue for at least 6 months.

Initiatives, Information, State and Federal Government Funding Programs, Grants, Coronavirus (COVID-19) Relief Options, Resources and Updates in Washington, DC for Small Businesses

Washington, DC Department of Insurance, Securities and Banking (DISB) – The DC Department of Insurance, Securities and Banking, a regulatory agency for the District of Columbia’s financial services industries, provides and participates in programs and resources to assist small business owners in creating sustainable economic development. (see latest updates on COVID-19 support)

District of Columbia Business Capital Program

The District of Columbia Business Capital Funding Program (DC BizCAP) is funded by the U.S. Treasury State Small Business Credit Initiative (Initiative). The District of Columbia Department of Insurance, Securities and Banking (DISB) established and administers DC BizCAP to provide capital to District small businesses and entrepreneurs who continue to encounter reductions in the availability of credit and heightened requirements to obtain financing. DC BizCAP provides critical capital through three programs that provide alternatives to traditional commercial financing to facilitate private lending and investments in District small businesses.

DC BizCAP – Collateral Support Program The Collateral Support Program (CSP) provides funds for deposit with a participating lender (i.e. a participating bank, credit union, or community development financial institution) to provide the necessary collateral to cover the borrower’s collateral shortfall.

DC BizCAP – Innovation Finance Program The Innovation Finance Program (IFP) provides capital for investment in the District of Columbia start-ups and emerging companies that seek financing alternatives to traditional commercial financing. The IFP provides the capital either (1) through a co-investment with an Innovation Finance Company into the small business; or (2) by investing as a limited partner in an Innovation Finance Company that shall then make an investment into that small business.

Mayor Bowser Announces DC Businesses Can Now Apply for SBA Disaster Assistance Loans (see updates)

How to Apply for Small Business Loans in Washington, DC

Customers applying for capital with AdvancePoint Capital can expect a simple, easy, and streamlined approval process with decisions in hours, not days. Follow us and experience our customer service, business finance resources, and an array of business funding products to meet your goals. Take the first steps and start with this online form, then fill out the short application page, provide information, wait a few hours for your feedback and then get your loan! Or you can call our toll-free phone number and speak to a business representative. Contact us and see the benefits of working with AdvancePoint and take the first steps in the approval process, so you can make better and informed decisions.

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

Applicants can contact AdvancePoint Capital and 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.