Business Funding In Chicago
Chicago is not only the largest city in Illinois, but one of the leading financial and commercial hubs of the world. Home to numerous global corporations, Chicago also boasts the legendary Chicago Board of Trade, the Sears (now Willis) Tower, and a vibrant culture and arts scene, in addition to a thriving and productive economy.
Particularly important for small businesses and entrepreneurs, the Chicagoland economy is considered one of the most diversified and balanced of any major city, with a wide variety of market sectors, and no single sector employing a large percentage of the population.
The prominence of educational institutions, good food, art, music, and other amenities also make it a popular tourist destination. It’s no wonder, then, that many entrepreneurs decide to put down stakes in the Chicago area.
Despite Chicago being an excellent location for business, with a rich talent pool of employees, access to many other companies and markets, good transportation, and so on, that’s often not enough to get the job done for many small businesses.
After all, it takes cold, hard cash in order to pay your bills, hire and pay employees, rent or lease property, buy raw materials and inventory, and undertake marketing efforts and plans to expand and grow your business. Most often, small businesses aren’t cash-flush, even in a mega-city like Chicago.
This means most small businesses and entrepreneurial ventures have a significant need for small business loans in Chicago. Business loans in Chicago can take a number of forms, and small business financing isn’t just limited to loans, either.
There are a range of credit and loan products available for funding a small business, each with their own pros and cons, qualification requirements, and ideal uses.
These can include small business loans, merchant cash advances, short-term business loans, business lines of credit, and more.
All of these different small business financing options may not be suitable for every business, but most business owners prefer to have choices, to find the best kind of funding to match with their particular needs.
In terms of where to get funding for small businesses in Chicago, there are usually two routes that business owners can go. First, as a major financial center, Chicago-area businesses can seek out small business loans and products from banks.
Alternatively, private lenders are often the more preferred avenue for financing a small business. There are a number of reasons why banks have fallen out of favor of late with small business owners, which we’ll address in more detail in this guide.
We’ll also explore some of the different options for financing small businesses in Chicago, and how they compare to one another.
Lastly, we’ll highlight one of the leading private lenders in the US for small business loans in Chicago and elsewhere, BizFly Funding, and what they offer that makes them such a popular choice for small business owners in need of financing.
How to Get Funding for Small Businesses in Chicago
Let’s first focus on the primary decision you’ll need to make when seeking business loans in Chicago: should you go to a bank or a private lender? Obviously, there’s nothing saying you can’t investigate both avenues for potential funding for your small business.
However, it’s important to understand the advantages and drawbacks that both offer, and how your choice may have a direct impact on what kind of small business financing you are able to qualify for and obtain.
Banks are obviously a staple of the finance-heavy Chicago economy, with numerous branches and even main offices being located all across the greater metro area.
However, what many small business owners don’t know is that banks are not always the best choice for small business loans in Chicago or elsewhere in the US. This is because most banks are not particularly engaged with small business funding.
They see small business funding as a risky endeavor, and banks are notoriously averse to risk. This shouldn’t be a major surprise, as the US Small Business Administration’s own statistics show that nearly half of all small businesses fail within the first 5 years.
You can’t blame a bank for being prudent, especially given tighter regulations and scrutiny on lending following the late-2000s financial collapse.
The net result is that banks may offer fewer or less favorable options for small business loans in Chicago, as well as other small business financing products. Likewise, it can mean more difficult-to-satisfy requirements for borrowers to obtain those loans or credit products.
Higher credit score requirements, longer time in business requirements, and much more substantial monthly revenue requirements are par for the course with even the best small business banks in Chicago.
Additionally, banks tend to only offer secured loans and credit products – that is, loans and credit products that require collateral. While this does have the advantage of lowering interest rates for small business owners, it’s also a fairly large risk.
Having to pledge assets, often worth several times the value of the loan or line of credit you are taking out, is simply unacceptable to many small business owners, given the uncertain future they face every day.
Knowing the failure rates and statistics, most small business owners prefer to choose unsecured loans or credit products, with no collateral required.
More often than not, these are not readily available from banks, but are the mainstay of many private lenders, especially those specializing in funding small businesses.
Private lenders also offer a host of benefits over their more traditional financial institution and bank counterparts. These benefits include:
All of these benefits combined help make clear why more and more companies in need of small business financing in Chicago and elsewhere prefer to deal with private lenders over banks for their funding needs.
Different Small Business Financing Products and Options
In addition to deciding on your lender or small business financing source, it’s important to have at least a basic understanding of the different kinds of credit and loan products that are available.
Small business loans for Chicago businesses are by no means the only form of small business financing offered, especially by private lenders. Each of these different financial instruments has different strengths and weaknesses.
Their availability, terms and conditions, and qualification requirements will naturally vary from lender to lender, though most private lenders offer most if not all of these kinds of small business financing options.
There’s also nothing that says you can’t have multiple, different small business financing tools at your disposal at once, so it’s vitally important to understand how best to deploy them for your business.
In brief, some of the different kinds of small business financing products available, and how they work, are described below.
Choose BizFly Funding for Small Business Loans in Chicago
Now that you know the basics of small business funding, it’s time to apply for your small business loan (or anywhere else). We highly recommend you consider BizFly Funding as your source for small business financing of all types.
They are a private lender that deals exclusively in small business funding, offering unsecured small business loans, business lines of credit, and all of the other funding products we’ve discussed in this guide.
They’re widely viewed as one of the top small business financing firms in the US, offering up to $1 million in funds through most of their products. BizFly Funding makes it easy to qualify for and obtain small business loans in Chicago and parts beyond.
While the requirements are subject to change, and larger loan amounts may have stricter requirements, the basic eligibility requirements s on several of the most popular small business financing options from BizFly Funding are outlined below.
BizFly Funding also offers outstanding customer service, and an easy and fast online application. Most customers can apply in 30 minutes or less, and will have their application reviewed within a few hours.
A team member will then reach out and discuss your small business funding needs, options, and how best to build a portfolio of tools and products to help you pay for your operations and business growth.
Funding is equally fast, with most customers who qualify getting their funds within 1 business day. Don’t hesitate to contact BizFly Funding and see how much you can qualify for today. There’s no obligation, and it takes only a half hour or less of your valuable time.
BizFly Funding knows how important capital is to small business owners, and will do their best to offer you what you need – quickly, effectively, efficiently, and with a smile.
In no time, with your small business loan in Chicago or other small business financing choices, you’ll be on your way to success! To learn more or to start the application process, visit BizFly Funding online at https://bizflyfunding.com.