The leading industries in Nebraska are construction, retail trade, professional, scientific, and technical services, real estate, health care, administrative, support, waste management, and transportation. If you’re a small business owner in the state of Nebraska or aspire to become one in the future, you may benefit from small business loans. This blog post will review Nebraska small business loan options and explain how they can help you out.
Uses for Business Loans in NebraskaSince Nebraska small business loans are versatile, you can use them to pay for virtually any expense to help you start or grow your venture. If you’re a startup, a loan can help you pay for a commercial property, insurance, licensing, inventory, equipment, and other expenses that will allow you to get up and running. A small business loan might also be beneficial if you’re an established business and wish to open new locations in Nebraska or other states. You can use it to fund expansion costs and take your venture to new heights.
Types of Small Business Loans in NebraskaWhen you look for small business loan programs in Nebraska, you’ll come across several options. While some lenders in Nebraska offer an easy application process and fast funding, others require a more extensive application and longer funding time.
Commercial Real Estate MortgageA commercial mortgage can help you buy or renovate a commercial property like an office building, restaurant, hotel, or warehouse. Offered by traditional banks, government-run enterprises, and life insurance companies, commercial mortgages are typically repaid in installments with variable interest rates. The most common fees associated with commercial mortgages include arrangement fees, valuation fees, and legal fees.
Term LoansTerm loans offer a lump sum of money to borrowers at one time. You’ll pay them back through fixed monthly payments over an agreed-upon term, typically from a few months to a few years. You may lock in low rates and favorable terms if you have good credit. Keep in mind that you might have to wait a few weeks for the funds. Therefore, you should ask the lender about their funding timeline if you have an urgent funding need.
Equipment LoansThere’s a good chance you need equipment to run your small business. With an equipment loan, you can receive the funds you need to buy or lease equipment such as computers for your accounting firm or ovens for your restaurant. Your equipment will serve as collateral, so your chances of getting approved are high.
SBA LoansThe SBA can guarantee as much as 85% of its loans. Although many SBA loans are available, the most popular programs include SBA 7(a) loans, SBA 504 loans, and SBA microloans. As long as you have strong credit, sufficient revenue, and have been in business for at least two years, you may get approved for up to $5 million in funding with repayment terms of up to 25 years.
Merchant Cash AdvanceA merchant cash advance (MCA) might be a good option if you accept consistent debit and credit card payments from your customers. With this form of financing, you’ll receive an upfront payment in exchange for a portion of your future card sales. In most cases, you’ll repay your advance through a percentage of your daily sales or daily or weekly withdrawals from your business bank account.
Invoice FactoringInvoice factoring allows you to sell part of or all of your outstanding invoices to a third-party factoring company, which will pay you most of the invoice amount immediately. Then, the invoice factoring company will collect payments from your customers on your behalf. While invoice factoring offers fast cash, its fees can be expensive.
Business Lines of CreditA business line of credit is a lot like a credit card; you may pull funds from it whenever you need to, up to a set credit limit. Compared to credit cards, it usually offers larger amounts and lower interest rates. It may make sense if you’d like to solve cash flow issues or would enjoy the flexibility to borrow money at any time.
Resources for Nebraska Business OwnersIf you own a small business in Nebraska, check out these resources.
- Nebraska Small Business Development Center (Nebraska SBDC): Nebraska SBDC is an SBA program that offers free, confidential advising and technical assistance to small business owners in Nebraska. Free or low-cost workshops are available as well.
- GROW Nebraska: GROW Nebraska is a nonprofit that focuses on marketing training to individuals and small business owners throughout the state. It hosts various training sessions on topics related to digital marketing.
- EO Nebraska: EO Nebraska helps entrepreneurs learn and grow. As a member, you can reap the benefits of a confidential forum, chapter and global events, education, and mentorship.