How to Get a Small Business Loan in Arizona - Fora Financial Blog
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How to Get a Small Business Loan in Arizona
January 26, 2022
How to Get a Small Business Loan in Arizona

How to Get a Small Business Loan in Arizona

Arizona is home to more than 600,000 small businesses. According to the U.S. Small Business Administration (SBA), these businesses employ 1.1 million workers and represent 42.9% of the private workforce in the state. The most popular industries for Arizona small businesses include professional, scientific, and technical services, real estate, administrative, support, and waste management, and construction.

If you are a small business owner in the Grand Canyon State or have plans to become one, small business loans can be useful. Here’s what you need to know about small business loan programs in Arizona.

Uses for a Small Business Loan in Arizona

Lenders that offer small business loans in Arizona are flexible. In most cases, you can use a small business loan to cover virtually any expense. You may take one out to pay for business expenses, such as:

  • Startup costs
  • Commercial real estate
  • Debt consolidation
  • Refinancing
  • Inventory
  • Equipment

A small business loan might also come in handy if you’re an established business and would like to cover expansion or acquisition costs.

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Types of Small Business Loans in Arizona

When you shop around for small business loans in Arizona, you’re sure to come across a wide variety of options. Some of the most common types of small business loans you may want to consider include:

Traditional Bank Loans

You can find traditional bank loans at banks, credit unions, and online lenders. While they typically require stellar credit, they are known for low interest rates and attractive terms. Keep in mind that if you go with a traditional bank loan, you might have to wait weeks or even months before you receive the funds.

SBA Loans

SBA loans are guaranteed by the SBA and approved SBA lenders. They’re an attractive option because of their impressive rates and long repayment terms you may not be able to find elsewhere. SBA loan options include:

  • The Standard 7(a)
  • 7(a) Small Loan
  • SBA 504 Loan
  • Export Loan
  • SBA Express
  • Veterans Advantage
  • CAPLines

Commercial Mortgage 

A commercial mortgage works a lot like a traditional mortgage you take out when you buy a home. The only difference is it’s designed to fund commercial property or land. It can help you cover the cost of a retail space, office, or warehouse. You may also use a commercial mortgage to expand to a larger space.

Equipment Loans

Chances are your small business depends on equipment to operate. Whether you need an oven for a restaurant, computers for an accounting firm, or anything in between, equipment loans can be very useful. With an equipment loan, you can easily and conveniently fund the cost of new or used equipment.

Line of Credit

A line of credit may make sense if you’re unsure of exactly how much cash you need to finance your business. You can withdraw funds whenever you’d like up to a set credit limit, which is usually based on your credit and other factors.

A line of credit is a good alternative to traditional installment loans which provide a lump sum of money upfront.

Merchant Cash Advance

If you collect debit and credit card payments from your customers, a merchant cash advance (MCA) is worth considering. With an MCA, you’ll have access to upfront cash and repay it with a percentage of your sales. In addition, you can qualify for a merchant cash advance, even if you don’t have the best credit score.

Invoice Factoring

Invoice factoring requires you to sell your invoices at a discounted price to a factory company. You’ll receive a lump sum of cash in advance. The factoring company will own your invoices and collect payment from your customers, typically 30 to 90 days. Invoice factoring can be a solid option if you have slow paying customers.

Resources for Arizona Business Owners

Consider these resources to support you with your Arizona business.

  • Arizona Small Business Development Center (SBDC): This organization offers free, confidential business counseling as well as a variety of workshops and events throughout the year. It’s known as the most comprehensive and accessible small business assistance source in the state.
  • Arizona Small Business Association: You can enjoy countless benefits as a member of the Arizona Small Business Association. These include invitations to speed networking events, one-on-one mentoring, and ready-to-go employee benefits like insurance and workers compensation.
  • Greater Phoenix SCORE: SCORE offers mentors who are entrepreneurs, corporate managers, and executives. It also hosts live and recorded webinars as well as interactive courses to help business owners thrive.

Enjoy Business Success with Arizona Business Loans

With small business loans in Arizona, you can receive working capital to meet your goals. Before you sign on the dotted line and commit to a loan, however, explore and compare the various options available to you. This way you can select the ideal one for your unique situation.

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].