Apply for a Business Loans In Phoenix
Phoenix, Arizona is a rarity among US cities. Not only is it the largest city in Arizona, but also its capital, the fifth-largest city in the US, and the only capital with over 1 million residents (around 1.6 million).
Originally an agricultural and resource-based economy, Phoenix has diversified into real estate, finance, technology, manufacturing, retail, and health care as the leading drivers in the modern economy.
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It also serves as a major cultural hub for the state, with a dizzying array of performing arts venues and groups, galleries, museums, gardens, cuisine, architecture, and heritage sites, sports teams, festivals and events, and much more.
With a desert climate that remains comfortably warm year-round (and occasionally, extremely hot in summer months), Phoenix is both a popular tourist destination, as well as a highly-desirable place to live and work.
For many small businesses, start-ups, and entrepreneurial ventures, Phoenix is therefore a great place to call home. In order for small businesses to operate, manage their cash flow, deliver products or services, expand, market their services, and so on, it’s often necessary to draw on borrowed funds.
Newer businesses don’t have the kind of hoards of cash that more mature companies can often amass, and are less likely to be given latitude from their suppliers or customers with more favorable accounting terms.
As a result, small business loans for Phoenix, Arizona businesses are often in high demand for many small business owners in the city. Business loans in Arizona aren’t just limited to conventional loans, either.
Both banks and private lenders – the two primary sources of small business loans – offer a variety of different loans and credit products for small business financing.
These can include the traditional small business loans, along with business lines of credit, merchant cash advance loans, short-term business loans, and more. Offerings vary by lender, as do their eligibility requirements, interest rates, and other details.
Each of these options works in slightly different ways, and has slightly different ideal uses. We’ll discuss this portfolio of options in more detail below.
We’ll also talk about the different sources for business loans in Arizona – banks and private lenders – and how they differ. Many small business owners prefer private lenders, for a variety of reasons which we’ll explore.
Then, we’ll finish up by highlighting one of the leading private lenders in the US today, BizFly Funding, and why you might consider them as your source for small business loans in Phoenix, Arizona, or any other city in the US where your small business may operate.
The Different Types of Small Business Loans
You’re not limited to only one of these options, either – you can pick and choose, depending what you qualify for and what your financial needs may be at any given time.
The various and most common kinds of small business financing that are available include:
- Small business loans, which provide a set amount of cash up front, and must be repaid, with interest, over time.
The term of these business loans in Arizona is typically a matter of several years, and repayment is usually required on a monthly basis, though, as with all small business funding options, details vary by lender.
- Short-term business loans, which are similar to the small business loans discussed above, but on a condensed time scale.
They are often available for a term of months to a year or two at most, with more frequent repayment requirements (typically weekly rather than monthly).
- Small business lines of credit, which don’t work like loans at all, but are closer in their functioning to credit cards.
However, unlike credit cards, which can only be used for purchase transactions, a business line of credit provides a cash borrowing facility. You can borrow just the amount you need at any time, and then repay it over time (usually with monthly minimum payments and interest).
You can continue to borrow against the line of credit, and repay it over time, so long as the outstanding balance is below your credit limit, just like with a credit card account.
- Merchant cash advances, which are an excellent tool for companies that do most of their sales via debit or credit cards.
This kind of small business funding product gives you a lump sum of cash, which you repay automatically from debit and credit card sales. The repayment schedule is tied to sales, so if business is slow, repayment is slow, and vice versa.
It can make it much easier for small businesses to reduce their default risk compared to calendar-date-based repayments on traditional small business loans and similar products.
- Debt consolidation loans, which aren’t a general funding source, but rather help businesses deal with existing debt.
These loans allow you to pay off existing debts and thereby consolidate them into the single debt consolidation loan. Often, these loans have lower interest rates than the average rates on your existing debts.
Combined with fewer servicers and fees to manage your debt, they can save you substantially on your debt service payments.
- Small business loans for women entrepreneurs and women-owned businesses, Which help to improve access to valuable small business loans in Arizona and throughout the US for this historically-discriminated-against demographic.
- Bad credit business loans, which help to ensure that small businesses with bad credit or limited credit history can still qualify for the small business funding that they need to operate.
How and Where to Get the Best Arizona Small Business Loans
Once you have a handle on the different small business financing options available, it’s time to consider your source for business loans in Phoenix.
Generally speaking, this involves deciding between a bank or a private lender. There’s nothing to say you can’t apply at both, of course, or multiple banks or private lenders at your leisure.
However, to save you the time and the hassle, we’re happy to tell you that most small business owners eventually end up choosing private lenders as their preferred funding source. There are several reasons why this is so, which we’ll elaborate on in more detail below.
There’s no question that Arizona, and Phoenix in particular, has a number of major national and local banks to choose from when you need small business financing. That includes several small banks in Arizona that deal exclusively in business funding.
Despite this, banks are often not the best choice for small business owners. They tend to see small business lending as a high-risk venture, and have extremely hard-to-meet qualification requirements as a result.
As a result, many small businesses often are rejected and fail to secure much-needed funding when they apply for business loans in Arizona with banks. Additionally, banks tend to only offer secured loans and credit products, meaning they require collateral from the borrower in order to be issued.
That collateral can often be several times the value of the loan or credit line a small business owner is seeking, and is forfeit to the bank if the business defaults on the loan.
For many small business owners, this is too big a risk, especially given the failure statistics of small businesses and an uncertain market. While secured loans do offer somewhat lower interest rates, the chance of losing collateral – if sufficient collateral is even available in the first place – is just too great.
Private lenders, on the other hand, often will offer unsecured small business loans and credit products, with no collateral requirement.
The interest rates are slightly higher, but it’s only marginally more expensive, with no collateral risk – a net potential savings of tens or hundreds of thousands of dollars for most small businesses. Most private lenders are very risk-tolerant, and happy to have small businesses as customers.
Some, like BizFly Funding, even specialize in small business funding, and only offer small business funding services and products, making them experts in the needs of small business owners.
At the same time, because of the lack of collateral requirements, loans can be approved and processed much faster, in a matter of hours to days compared to days, weeks, or even months with banks.
That’s just one of the many benefits that small business owners can realize when they choose a private lender for their business loans in Phoenix. Other benefits include:
- Qualification requirements which are easier to meet than at banks. This makes it easier for more small businesses to get business loans in Phoenix and elsewhere. Typically, fewer months in business, lower credit scores, and smaller monthly revenue requirements are the norm with private lenders.
- Most private lenders are committed to customer service, with an emphasis on meeting or exceeding customer expectations, and serving the needs of the small business community. The same can’t always be said of most major banks.
- Many private lenders offer simplified and speedy application and approval processes, often based online instead of requiring in-person appointments. Funding upon approval is also speedy, taking as little as days or even 1 business day in some cases, compared to days to weeks for bank loans.
- Unsecured loans and credit product from private lenders, as discussed, present less risk for small business owners.
- Private lenders offer greater access to a wider range of small business funding options compared to banks, making them the better choice for small business loans in Phoenix, greater Arizona, and all 50 states in the US.
When You Need Business Loans in Phoenix, Consider BizFly Funding
No matter what kind of small business financing option you may need, when it’s time to apply, consider BizFly Funding. BizFly Funding is one of the leading private lenders in the US, who exclusively deal in unsecured small business funding products.
They have a large portfolio of options, including all of the different kinds of loan and credit products we’ve discussed in this guide, with very reasonable qualification requirements, interest rates, and other details.
Small business loans for Phoenix businesses are only the start, with business lines of credit, merchant cash advances, debt consolidation loans, short-term business loans, and more all part of the offerings at BizFly Funding.
Depending on your needs and qualifications, you can borrow as much as $1 million with many of these funding options, which can go a long way towards helping your business to make the purchases and handle the expenses it needs to succeed.
Like most private lenders, BizFly Funding offers unsecured loans and credit products, with no collateral requirements. The basic qualification requirements for some of the top loan and credit choices at BizFly Funding are highlighted below.
While these may vary over time, and larger loans or credit lines may have more stringent requirements, most business owners looking for business loans in Phoenix find these requirements fairly easy to meet, especially compared to those offered by banks in Arizona.
- Loan term of 2 to 36 months
- Minimum 6 months in business
- Credit score of at least 500
- $10,000 minimum monthly revenue
- Loan amounts of $5,000 to $1 million
- Interest rates of 9 to 45%
- Loan term of 6 to 24 months
- Minimum 12 months in business
- Credit score of at least 600
- $10,000 minimum monthly revenue
- Loan amounts of $15,000 to $1 million
- Interest rates of 9 to 45%
- Loan term is variable (repayment is based on sales and not tied to the calendar)
- Minimum 2 months in business
- Credit score of at least 500
- $8,000 minimum monthly revenue
- Loan amounts of $8,000 to $250,000
- Factor rates of 24 to 49%
- Credit line term is variable
- Minimum 6 months in business
- Credit score of at least 650
- $10,000 minimum monthly revenue
- Credit line amounts of $5,000 to $250,000
- Interest rates of 5 to 10%
When you choose BizFly Funding as your source for small business loans and credit products, you’re getting more than easily-met qualifications. BizFly Funding offers top-notch customer service, with a dedication to serving the needs of US small businesses.
For most business owners, the online application takes only 30 minutes to complete, allowing you to spend your time managing your business rather than doing tedious paperwork.
In just hours, a team member from BizFly Funding will get back to you and discuss your funding options. If approved, you can have your funds in your bank account in as little as 1 business day, putting them straight to work for your urgent business expenses and needs.
To learn more or to start the application process, visit BizFly Funding online at https://bizflyfunding.com.
