Small Business Loans for San Diego Businesses
San Diego, California is one of the first cities in California that was settled some 500+ years ago (and really even earlier than that by indigenous peoples).
In modern times, San Diego has become a vibrant metropolis that attracts a wide array of tourists, businesses, and citizens living within its greater metro area.
Most people immediately associate San Diego with the world-renowned San Diego Zoo, but this is just one of many outstanding cultural, entertainment, business, and historical institutions in the San Diego area.
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A long association with the US Navy, San Diego serves as the home of a large portion of the Pacific Fleet, as well as several other service branches that have bases in and around the city.
Defense and military, naturally, is one of the biggest economic sectors in San Diego, as well as tourism, trade, and a growing biotech sector, among many others.
It only stands to reason that with the attractive climate, strong economy, oceanfront location, and well-established 5 million or so citizens living in the area, San Diego is a popular place for businesses to set up satellite offices, headquarters, and similar.
It also is a desirable location for start-ups and entrepreneurial ventures. Like most of California, San Diego can be a bit of an expensive place to live, work, and play, and can be a bit costly for small businesses as well.
Along with the typical hurdles that small businesses face, this can reinforce the absolute necessity of small business financing to help small businesses with their operations, growth, and ultimate failure or success.
Small business loans and other funding products are therefore an indispensable necessity for San Diego-based small businesses.
Business loans for San Diego companies in the modern era are typically offered in a variety of different forms, and are not limited to what most people think of as conventional loans.
These days, small business financing options include lines of credit, business loans, short-term loans, merchant cash advances, debt consolidation loans, and more.
In all cases, the goal of lenders who offer these loans for San Diego businesses is to provide them with the capital they need, in a range of different formats, so that business owners can match the ideal kind of funding with their particular expenses and needs.
Each of these kinds of small business funding products have their own advantages and disadvantages, of course, and also will have qualification or eligibility requirements that vary from lender to lender.
On the topic of lenders, there are several choices as to where to get this kind of funding for small businesses in San Diego today.
Banks and traditional financial institutions are definitely one route that has been around for a long time, and is very familiar for many small business owners.
San Diego, as a major trade hub and large city, has plenty of local and national banks in the area, many of which may offer some kind of business loans for San Diego businesses.
However, they may not always be the best choice, especially for small business loans.
Rather, the second route that is preferred by many small business owners – private non-bank lenders – are often the more compelling choice for financing a small business in San Diego, California, and elsewhere in the US.
Below, we’ll talk a bit more about this distinction, and why banks aren’t always the best choice for business loans in San Diego.
We’ll also take a look at some of the different business loans in California and/or small business funding options that are available, and how they stack up against one another.
Finally, we’ll offer some information on one of the top non-bank lenders in the US, BizFly Funding, who provide San Diego small business loans and credit products that are easy and quick to obtain and put to work for your business.
How to Get San Diego Small Business Loans
The first step in obtaining business loans in San Diego is to decide where you’re going to apply – at a bank, private lender, or both? This is an important decision and can make a big difference in the types of funding for your small business that may be available.
It may be in your best interest to apply at multiple lenders – banks and private lenders alike – if you have the time and stamina to fill out all the application forms and so on.
With that said, however, it’s important to understand the pros and cons of each of these types of lenders, and why your odds of getting the funds you need from your business loan in San Diego are usually higher at a private lender as compared to a bank.
On the surface, banks seem like a good choice for small business loans and loans in general. What many small business owners don’t know, however, is that banks are extremely afraid of and averse to risk.
Small business lending is typically seen as a high risk venture. As a result, banks often establish fairly stringent criteria for the small business loans and funding products that they offer.
This has the force and effect of reducing eligibility for bank-issued small business loans and credit products to only a tiny fraction of businesses – those with the best credit scores, most stable revenue, and who have been well established in business for years.
None of that works in the favor of newer small businesses in need of small business loans in San Diego.
Banks also may not offer the same range of small business financing options as private lenders, meaning even if you meet their criteria, it can be difficult to find the particular kind of funding to match your needs – which can end up costing you a lot in terms of total cost of borrowing.
At the same time, most banks who do offer business loans in California and elsewhere only offer the secured variety. Secured loans require collateral from the borrower in order to obtain the loan.
This is incredibly risky for small business owners, who might end up putting up 3, 4 or even 5 times the face value of the loan in collateral, which is all on the line in the event of a default on the small business loan.
For most small business owners, this is an unacceptable risk – especially given the oft-cited statistic that half of all small businesses fail within the first five years.
That’s why most business owners prefer to go with unsecured small business loans, which don’t require collateral, and are more readily available from private lenders. Private lenders also have some unique advantages compared to banks for those small businesses in need of business financing in San Diego.
These advantages include:
- Eligibility requirements for small business loans in San Diego which are much easier for small businesses to meet than the equivalent requirements at banks and major financial institutions.
This can include lower credit score minimums, less time in business, and less monthly revenue – all of which translate into greater access to necessary small business funding for a greater range of small businesses.
- The unsecured nature of the business loans for California that are offered by private non-bank lenders mean that the entire application and approval process is much faster than when you borrow from a bank.
In many cases, approval or pre-approval can take place in less than an hour, and funds can be made available within 1 business day (compared to a standard of weeks with a secured small business loan from a bank).
- Less risk for small business owners in need of small business loans in San Diego, by virtue of the unsecured loans that are offered by private lenders.
- With the reduced or more easily-met eligibility requirements offered by private lenders, they are the preferred source of small business funding in San Diego for businesses that may have poor credit or a limited credit history, with bad credit business loans available for small businesses with credit scores that would be laughed out of the room at a bank.
When taken as a whole, it should be clear that the best option for small business loans in San Diego and parts beyond are the private, non-bank lenders who specialize in small business funding.
The Range of Small Business Financing Options Available Today
After you’ve chosen your lender(s), then you should consider the kind of small business funding that you need.
Understanding the basic differences between the types of small business funding products that are available helps small business owners to align their financial needs with the kind of funding that will most affordably and effectively match.
This is one of the fundamental principles of responsible use of small business funding, and one of the best ways to avoid accumulating an unsustainable amount of business debt.
Naturally, each of the different types of small business loans in San Diego, as well as their associated credit products and other financial instruments, will have their own pros and cons.
Likewise, every lender will have their own criteria, interest rates, terms, and other details for the small business financing options that they offer.
Here, we’re simply talking in general, broad terms – it’s up to each individual small business owner to review the details for their chosen lender and to be sure that they’re in synch with the business’ needs and expectations, are competitive, and in the best interest of their business.
At a high level, the main kinds of financing and small business loans available in San Diego and elsewhere in the US today include:
- Small business loans, a traditional kind of loan in which you receive a lump sum of cash when you are approved for the loan, and then repay the principal and interest over a set term, with regular repayments based on calendar dates
- Short-term business loans, similar to the above, but set over a much shorter loan term (often months rather than years), with more frequent repayments as a result
- Small business lines of credit, a revolving facility not dissimilar from a credit card account, that allows you to borrow and repay again and again in amounts that you choose and at your discretion
- Merchant cash advances, a great option for businesses with limited credit history or a bad credit score, which effectively sells a portion of your future credit and debit card sales receipts at a discount (equivalent to the interest rate on a loan), in exchange for a lump sum of cash up front
- Debt consolidation loans, which as the name implies are loans to help you consolidate your debts with multiple creditors into a single debt instrument, with a single payment, often at a lower interest rate
- Specialized small business loans for women-owned businesses, as they have often been discriminated against in the past and denied access to small business funding at a greater rate than comparable male-run counterparts
- Bad credit business loans, that work the same as small business loans, but typically have a much lower credit score threshold (and may have smaller loan maximums or higher revenue requirements), in order to provide small business funding to San Diego businesses with bad credit or a limited credit history – a group that often is the most in need of small business funding, but traditionally has a very hard time accessing it
BizFly Funding – The Best Choice for Quick Loans in San Diego, California, and Beyond
If you’ve made it this far, you’re now much more knowledgeable about the different kinds of small business funding options that are available, and where you can obtain them.
Now, it’s time to apply for your small business loan in San Diego (or whatever other products you may choose).
Finding a reputable lender can be a challenge, especially if you are new to private, non-bank lending. We highly suggest you consider BizFly Funding as your lender for small business loans in San Diego and elsewhere in California.
BizFly Funding is a leading non-bank lender in the US, that solely offers small business funding products and services. With a full portfolio of small business financing options, BizFly Funding can meet your business needs for loans in San Diego up to $1 million.
Because they don’t take depositor accounts like a bank, they are much more comfortable with risk. This means they can offer these loans with much more easily-met eligibility requirements, extending access to vital capital to many more small businesses than banks and traditional financial institutions.
As a private lender, BizFly Funding is focused on making it fast, easy, and stress-free to obtain the kind of small business funding you need. This includes the aforementioned easily-met requirements for credit scores, time in business, and monthly revenue.
They are also committed to outstanding customer service, and will help guide you through the different types of small business funding that are available in much greater detail, to really get to the core of your small business financing needs.
Though subject to change (the latest requirements are always available on the website and as part of the application process), the basic qualification requirements for the most popular small business funding options at BizFly Funding are outlined below.
- 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%
BizFly Funding has an incredibly easy-to-use online application, that takes most customers 30 minutes or less to complete. Shortly thereafter, a team member will review your application and reach out to discuss your small business financing needs.
Once you’re ready to take out your small business loan in San Diego, you’ll get your funding equally fast, with most customers receiving their funds within 1 business day. All of that adds up to save you on stress, paperwork, and time – and as any small business owner knows, time is money!
We urge you to apply and get pre-approved at BizFly Funding. There’s no obligation, and you’ll have a much better idea of how large a small business loan or other small business funding product you can get. With minimal effort and time, you can have your business loan in San Diego, and be ready to put it to work to help your business thrive.
To learn more or to start the application process, visit BizFly Funding online at https://bizflyfunding.com.
