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How to Get a Small Business Loan in Washington
January 21, 2022
How to Get a Small Business Loan in Washington

How to Get a Small Business Loan in Washington

Data from the Small Business Administration (SBA) reveals that there are 647,639 small businesses in Washington, which account for 99.5% of all businesses in the state. These small businesses employ 1.4 million employees or 50.7% of the total workforce in Washington. Most of them are in industries such as professional, technical, and scientific services, real estate, transportation and warehousing, construction, and retail trade.

If you’re involved in a small business in the state of Washington, you should explore small business loans that can help you meet your goals. Here’s everything you need to know about small business loans in Washington.

Small Business Loans in Washington are Flexible

You can take out small business loans in Washington to cover just about any business-related expense. If you’re starting a business, a small business loan program may be useful as it can pay for startup costs like equipment, incorporation fees, office space, inventory, marketing, and supplies. On the flipside, if you’re an established business, small business loans can provide the funding you need to grow your business in Washington and beyond.
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Types of Small Business Loans in Washington

When you shop for a small business loan in Washington, you’re sure to find a variety of options. Here are some of the most common loans you may want to explore:

Traditional Bank Loans

Traditional bank loans usually offer great rates and terms. However, you’ll need a strong credit score to qualify for them. If you take one out, you’ll receive a fixed amount of money at once and pay it back with interest according to a set repayment schedule. It’s important to note that these loans may take weeks or months to receive.

SBA Loans

Backed by the SBA, SBA loans are offered by SBA approved lenders such as banks and credit unions. You can use them to fund a variety of expenses such as commercial real estate and working capital. Even though the application process is lengthy and requirements are rigorous, SBA loans are known for competitive interest rates and lengthy repayment terms.

Commercial Mortgage 

Business mortgages or commercial mortgages are used to purchase or improve a property or building that’s intended for business purposes. You’re a good candidate for a commercial mortgage if you’re an established small business with stellar credit that would like to expand. A commercial mortgage may also help you launch your venture.

Microloans

Microloans are business loans that are usually for $50,000 or less. Offered by nonprofits and peer-to-peer lenders, microloans don’t require collateral and can be a good option if you need to fund everyday business expenses and small purchases. As your business loans, however, microloans may no longer meet your needs.

Business Lines of Credit

Business lines of credit are flexible alternatives to term loans. Instead of a lump sum of money upfront, you’ll receive a revolving line of credit.

In addition, you’ll be able to borrow money any time you’d like up to a maximum credit limit. If you’re unsure of exactly how much funding you need, a business line of credit is definitely worth it.

Merchant Cash Advance

A merchant cash advance (MCA) is a solid pick if you need fast cash and you collect debit and credit card payments from customers. You’ll receive a lump sum of cash upfront and use a percentage of your sales to pay back the advance. You can qualify for an cash advance, regardless of your credit score.

Invoice Factoring

With invoice factoring, you sell your invoices to a factory company at a discounted price, and then they give you the funds all at once. The factoring company will have the right to collect payments from your customers, typically within 30 to 90 days. Invoice factoring is ideal if you have slow paying customers.

Resources for Washington Business Owners

These resources can help you succeed with your business venture in Washington.

  • Small Business Liaison Team (SBLT):The SBLT is made up of representatives from 27 agencies in the state. Its goal is to ensure businesses in the state comply with local, state, and federal regulations. On the SBLT’s website, you’ll find a wealth of tools including a business license service and answers to frequently asked questions.
  • Washington Small Business Development Center (SBDC): This organization is designed to help Washington businesses grow and succeed. It offers business advising services as well as startup resources and training programs.
  • Central Washington SCORE: Central Washington SCORE provides free mentors that offer confidential consulting. It also hosts educational workshops and valuable information on topics such as initial business planning and capital sources.

Conclusion: Take Advantage of Washington Business Loans

Unless you have unlimited cash available to you, Washington business loans can help you launch your venture or take it to the next level. Since there are countless options out there, be sure to do your research, compare the different loans, and choose the right solutions for your unique financing needs.

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].