How to Get a Small Business Loan in Oklahoma
The leading industries for Oklahoma small businesses include construction, professional, scientific, and technical services, administrative, support, waste management, retail trade, and real estate. Small business loans can come in handy if you’re involved with a small business in the Sooner state. Here’s everything you need to know about small business loans in Oklahoma.
Uses for a Small Business Loan in Oklahoma
Fortunately, lending institutions that offer small business loans in Oklahoma are typically flexible. In most cases, you can use business financing to cover virtually any expense, such as:
- Startup costs
- Commercial real estate
- Debt consolidation
- Expansion or acquisition costs
You may also use a small business loan to establish or improve your credit score. This can help you qualify for favorable rates and terms in the future.
Types of Oklahoma Small Business Loans
When you shop around for small business loans in Oklahoma, you’re bound to come across many options. Some of the most common types of business financing you may want to consider include:
Small Business Loans
You can secure a business loan from alternative lenders, banks, and credit unions.
Although banks typically require good credit, they tend to offer low rates and favorable terms. However, the downside to bank loans is that funding often takes weeks or months. However, alternative lenders offer a shorter loan application, quicker loan process, and have a wide range of loan term options.
Line of Credit
A line of credit may make sense if you’re looking for a flexible form of financing. You can withdraw funds whenever you’d like, up to a set credit limit, usually based on your credit and other factors. You’ll only pay interest on the amount you borrow. Compared to a business credit card, a line of credit usually offers lower rates and higher borrowing amounts.
The SBA partially guarantees SBA loan programs. You may apply for them through SBA-approved lenders. Upon approval, you can receive up to $5 million in funding and repayment terms for up to 25 years. Several SBA loans are available, including the Standard 7(a), 7(a) Small Loan, Export Loan, SBA Express, Veterans Advantage, and CAPLine.
A commercial mortgage works a lot like a traditional mortgage you take out when buying a home. The only difference is that it’s designed to fund land or a property like an office, warehouse, hotel, or restaurant. You may also use a commercial mortgage to renovate your existing property or expand to a larger space.
An equipment loan may come in handy if you need computers and fax machines for your law firm or bulldozers and tractors for your construction company. Depending on the lender, you may get approved for up to 100% of the equipment cost. Since equipment loans are secured by the equipment, they’re easy to get.
Invoice factoring requires you to sell your invoices at a discounted rate to a factory company. You’ll receive a lump sum of cash. The factoring company will then own your invoices and collect payments from your customers, typically 30 to 90 days. Invoice factoring can be a solid option if your customers are slow to pay and you’d like to avoid cash flow issues.
Merchant Cash Advance
A merchant cash advance (MCA) can be a good option if you receive debit and credit card payments from your customers. With an MCA, you’ll have access to upfront cash and repay it with a percentage of your sales. You can qualify for an MCA and get fast funding, even if you don’t have the best credit.
Resources for Oklahoma Business Owners
Consider these resources to support you with your Oklahoma business.
- Oklahoma Small Business Development Center (SBDC): This organization offers free, confidential consulting services to entrepreneurs and small business owners throughout Oklahoma. Workshops and technical assistance are available as well.
- Oklahoma Small Business Research Assistance (SBRA): SBRA helps innovators in the state qualify for federal research funding. A few of its services include topic search, proposal preparation, coaching and mentoring, and submission assistance.
- Black Women Business Owners of Tulsa: Black Women Business Owners of Tulsa supports African American women business owners, entrepreneurs, and startups in Tulsa. There are hundreds of members in industries such as retail, real estate, healthcare, marketing, trucking, and more.
- Project 3810: Project 3810 is a business incubator in Oklahoma City. It offers private offices, climate-controlled warehouse space, conference rooms, high-speed internet, and event space.
Conclusion: Consider Pursuing Oklahoma Business Loans
Low incorporation fees, affordable employees, and a supportive entrepreneurial culture make Oklahoma a great place to start a business. Whether you’re a startup or have been around for a while, business loans in Oklahoma can provide you with the capital you need to thrive.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.