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How to Get a Small Business Loan in Oregon
April 11, 2022
How to Get a Business Loan in Oregon

How to Get a Small Business Loan in Oregon

As of 2021, there were 396,925 small businesses in Oregon, which accounted for 893,758 employees or 54.9% of the state’s total workforce. The leading industries in Oregon include professional, scientific, and technical services, real estate, retail trade, and construction.

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
  • Equipment
  • Inventory
  • Payroll
  • Marketing
  • Insurance
  • 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

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.

SBA Loans

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.

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Microloans

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

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

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.

Fora Financial

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.

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Fora Financial is a working capital provider to small business owners nationwide. In addition, the Fora Financial team provides educational information to the small business community through their blog, which covers topics such as business financing, marketing, technology, and much more. If you’d like to see a topic covered on the Fora Financial blog, or want to submit a guest post, please email us at [email protected].