How to Get a Small Business Loan in South Carolina
If you’re part of the small business community in South Carolina, small business loans should be on your radar. You can use them to launch or grow your venture. Here’s what you need to know about small business loans in South Carolina.
Uses for a Small Business Loan in South Carolina
Since small business loans in South Carolina are flexible, they can help you cover any expenses. If you’re a startup, a small business loan may pay for a commercial building, inventory, and equipment. It can also fund day-to-day working capital expenses like payroll and utilities.
If your business has been around for a while, a loan may allow you to expand your products or services or open new locations. It might also be a real lifesaver if you’re a seasonal business with an off season or slow periods.
Types of Small Business Loans in South Carolina
There are a variety of small business loans in South Carolina. These loans are usually offered by banks, credit unions, and online lenders. Eligibility requirements and the application process will be based on the lender and loan type you choose.
Traditional Bank Loans
Traditional bank loans are term loans that provide a lump sum of money upfront. If you have good credit, you may qualify for a term loan with a favorable interest rate and terms. The downside of traditional bank loans, however, is that you won’t receive your funds quickly. Most lenders take weeks or months to approve borrowers and distribute funds.
Partially guaranteed by the Small Business Administration (SBA), SBA loans offer attractive interest rates and long terms you may not be able to find elsewhere. While there are many types of SBA loans available, the most popular is the 7(a) loan. You can receive up to $5 million in funding to cover a number of expenses.
Business Lines of Credit
Business lines of credit are flexible because they allow you to withdraw funds whenever you need to up to a set credit limit. It’s also important to note that you’ll only pay interest on the money you borrow.
A business line of credit can be very useful if you’d like to manage cash flow, pay for inventory, or cover surprise expenses.
Equipment loans should be on your radar if you’d like to acquire, upgrade, or replace essential or heavy equipment. This can be restaurant ovens, computers, bulldozers, or any other type of equipment you need to operate. With an equipment loan, you won’t have to pay for your equipment upfront and hinder your business cash flow. You may be eligible for an equipment loan even if you have bad credit.
Microloans are considered any loan that is $50,000 or under. If you need to borrow a smaller amount of money but can’t get one from a bank or traditional lender, a microloan is a good option. Typically offered by nonprofit lenders and government agencies, microloans feature monthly repayment terms and are ideal for startups and entrepreneurs.
Merchant Cash Advance
Merchant cash advances (MCAs) are designed for businesses that receive debit and credit card payments. If you take one out, the lender will distribute a lump sum of cash upfront. You’ll pay back the advance with a percentage of your sales. While MCAs offer flexible repayment terms and quick approvals, they can be expensive.
Invoice factoring is when you sell your unpaid invoices to a factoring company. It’s an unsecured form of financing so you don’t have to risk losing any assets. Most factoring companies will only advance up to 80% of your invoices but they’ll approve you, no matter what your credit is.
Resources for South Carolina Small Business Owners
If you own a small business in South Carolina, you may find these resources useful.
- South Carolina Business One Stop (SCBOS): SCBOS is South Carolina’s official business web portal. If you have an existing business or want to start a new business, you can use it to file permits, licenses, and registrations 24/7. There’s an option to pay your business taxes.
- SC Small Business Chamber of Commerce: As a member of the SC Small Business Chamber of Commerce, you can enjoy access to a variety of benefits that will allow you to save money on your business. These include the Office Depot savings program, credit card processing services, and payroll processing services.
- Grand Strand SCORE: With Grand Stand SCORE, you can partner with a mentor who can provide you with the knowledge you need to succeed. SCORE also offers a plethora of free and low cost workshops related to small business and entrepreneurship.
Grow Your Business with South Carolina Business Loans
Whether you have a small business in The Palmetto State or would like to launch one, South Carolina business loans can be invaluable. By pairing them with the various resources available to you, you’re bound to succeed.
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.