How to Get a Small Business Loan in Oregon
If you need funding to launch or grow your business in the Beaver State, many options are available. In this blog post, we’ll look at small business loans in Oregon.
Uses for Oregon Business Loans
Oregon’s business loans are flexible, meaning you can use them to cover virtually any business-related expense. Once you take out a business loan, you can pay for the following:
- Startup Fees
- Commercial Real Estate
- Expansion Costs
Oregon business loans can also help you build or improve your business credit score to qualify for lower interest rates and more favorable terms in the future.
Types of Small Business Loans in Oregon
There are a variety of small business loans in Oregon. To find the right type of working capital for your unique venture, take the time to learn about your options and how they work. Keep in mind that while some loans come with lenient qualification requirements, others require solid credit and a history of sufficient revenue.
Term loans offer a lump sum of money at once. You’ll repay what you borrow over time through fixed monthly payments, which may range from a few years to several years or even longer. While term loans from banks, credit unions, and online lenders can be challenging to get, you may be able to secure a low rate and attractive terms.
The Small Business Administration or SBA is a government agency that offers loan programs for specific purposes. In most cases, you’ll need good credit and at least $100,000 in annual revenue to qualify for them. Depending on your situation and the SBA loan you choose, you may be able to lock in a low-interest rate and longer repayment terms of up to 25 years.
Microloans can be a good choice if you need a small loan of up to $50,000, especially if you own a startup with minimal to no credit history. Both nonprofit and for-profit organizations offer microloan loan amounts typically range from $6,000 to $15,000. In addition to funding, microloan lenders often provide mentoring and resources for entrepreneurs.
Business Credit Cards
Business credit cards are similar to personal credit cards. You can use them to fund everyday expenses like rent, utilities, and office supplies. Before you choose a business credit card, make sure the perks like cashback, loyalty points, and travel protections outweigh the annual fee if there is one.
Lines of Credit
For a flexible loan, a line of credit is worth considering. Once approved for a specific credit limit, you can withdraw funds any time you’d like. You’ll only pay interest on what you borrow. While a line of credit is similar to a business credit card, it usually offers lower interest rates and larger loan amounts.
Invoice factoring is when you sell your invoices for immediate cash. In most cases, a factoring company will invoice you 85% to 90% of your unpaid invoices. Once they collect payment from your customers, you’ll receive the remaining balance minus the factoring fee. Invoice factoring can be a good option if you send invoices for your goods or services and tend to wait a while for payments.
Merchant Cash Advance
A merchant cash advance (MCA) offers funds in exchange for a percentage of your debit and credit card transactions. You’ll receive payments daily as your business accepts card payments. The total amount you’ll repay depends on the factor rate, which is a multiplier reflective of your financial situation.
Valuable Resources for Oregon Business Owners
If you own a small business in Oregon, these resources should be on your radar.
- Oregon Small Business Development Center Network (Oregon SBDC): Oregon SBDC offers advising, online courses, and other resources for business owners in Oregon. There are 19 centers conveniently located throughout the state.
- The Oregon Entrepreneurs Network (OEN): This nonprofit organization educates, supports, and advocates for entrepreneurs in Oregon and southwest Washington. As an OEN member, you can take advantage of workshops, mentorship, and networking opportunities.
- Oregon SCORE: Oregon SCORE provides free local and remote workshops and confidential business coaching. Its website also features a wealth of templates and other documents for entrepreneurs.
- Women Entrepreneurs of Southern Oregon (WESO): WESO is a nonprofit that supports female entrepreneurs and business owners. It offers education, networking, and an annual entrepreneur expo.
Conclusion: Steer Your Venture Toward Success with Oregon Business Loans
Oregon’s highly educated workforce, temperate climate, and favorable tax system make it a great place to start and grow a business. With small business loans in Oregon, you can turn your dream of becoming a successful entrepreneur into a reality.
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.