Small Business Loans in Denver
Denver, Colorado ranks at 19th on the list of the top twenty largest cities by population in the US today. It is not only the largest city within the state of Colorado, but also the capital of the state.
Known by many as the “Mile-High City”, Denver is actually seated at an elevation which varies from slightly under 1 mile (5,130 feet) to somewhat more than 1 mile (5,690 feet) above sea level – though official measure is exactly 1 mile (5,280 feet).
Roughly speaking, Denver is located in north central Colorado, and is formally part of the South Platte River Valley, at the edge of the High Plains, and adjacent to the base of the Rocky Mountains.
This makes for some interesting and varied weather, but also gives a lot to the economy, activities, and lifestyle that is enjoyed by Denver residents. On the topic of residents, Denver is one of the fastest-growing cities in the US.
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Though the population formally sits around ¾ of a million, the greater urban or metro area of Denver is where over 3.0 million people call home. Effectively, the population of Denver has grown by some 50% between the year 2000 and current estimates in the year 2020.
This is due to several reasons, including the desirability of life in Denver; the range of attractions, things to do, places to go, and sights to see in Denver; and the booming economy within the city.
Key attractions include the Denver Performing Arts Complex, Denver Art Museum, Denver Museum of Nature and Science, numerous historical homes and locales, a vibrant music scene, numerous events and festivals, cuisine, outdoor sports and recreation, and so much more.
When it comes to the economy, Denver excels in numerous market sectors, though is fairly well-diversified, too.
Transportation and logistics are critical to Denver’s economy, as it serves as the largest city within a multi-hundred-mile radius, and a natural location for transportation hubs, warehousing, and distribution.
Minerals, mining, and natural resource exploration are also valuable sectors that employ a large portion of the population. Government, education, science, and foodservice/hospitality are additionally valuable components of Denver’s economy today.
Indeed, the economic and population growth, attractive cultural life, and strategic location of Denver have all contributed to its winning of the coveted #1 spot on Forbes “Best Places for Business and Careers” list in 2015.
The biggest employers in Denver include the federal and state government, numerous school systems and higher education institutions, several hospital systems, Comcast, Wells Fargo, Centurylink, Dish Network, Xcel Energy, and Ball Corporation, among many others.
These established employers, institutions, and businesses rarely have problems obtaining millions or billions of dollars in loans and funding for their operations. The same cannot be said of small businesses, for whom funding is often far more critical – and far harder to come by.
Yet, there are still several viable options and sources for small business funding for small business owners, even if they aren’t fully aware of them.
Small business loans in Denver, along with a half-dozen other small business funding products, can make a huge difference in the viability of small businesses.
It can be a decisive factor in the struggle between failure and success, and start small business owners on the path to becoming one of those titans of commerce and industry in Denver discussed above.
While some small business owners may have heard of, or be familiar with a small business loan, that’s hardly the only small business funding option available today.
Some of the more dynamic and diverse options are generally less well-understood by many small business owners, who may have never encountered them before, or may not be fully aware of how they work or what they offer.
These other types of small business funding that Denver businesses can utilize include business lines of credit, short-term loans, debt consolidation loans, merchant cash advances, loans for women-owned small businesses, and bad credit business loans, among others.
These products all are meant to help small business owners obtain the funding and financing they need, for working capital, operations, and growth.
To help small businesses get a better handle on their options, and to determine what kinds of small business funding might be the best choice for their business, we’ve put together this brief introductory guide.
Below, we’ll discuss the basics of each of these different types of small business funding options – how they work, what they offer, what the repayment schedule looks like, and how they compare to one another.
Then, we’ll take a closer look at the sources of small business funding, such as business loans in Denver, that small businesses have available today – specifically, banks and private, non-bank lenders.
Finally, we’ll highlight the key benefits available to small business owners when they choose one particular private lender, BizFly Funding, for their small business loans and small business funding in Denver.
Types of Small Business Funding Available Today
First, it’s useful to take a closer look at the different types of small business funding products that are available today.
Of course, no one expects small business owners to become absolute experts in small business funding, but having a good working knowledge or understanding of these different options, and how they work, will help business owners to make the best financial decisions for their business.
Each of the different kinds of small business funding options available today, including basic small business loans for Denver businesses, can have different advantages and disadvantages, depending on the specific needs, revenue, funding, and related details for a given company.
Therefore, there’s no set “best option” or advice that can be given for each and every business, no matter what.
That’s why it’s incumbent on small business owners to understand these different types of small business funding, to make their own assessment as to the best option – the most benefit, the appropriate benefit, at the least cost.
One of the most basic principles of small business funding – or any kind of borrowing and funding proposition – is that you should always match the duration or term of funding with your expected period of receiving a return on that funding or investment.
For example, a short-term loan, with a term of only 6 months, wouldn’t make sense to pay for a 3-year-lease on a piece of equipment.
It would, however, make sense for purchase order financing – to buy raw materials or goods to sell, which will result in sales and accounts payable revenue within the 6 month or so time frame of the loan.
To do that effectively, it’s necessary to understand the terms, amounts, repayment schedule, and other details of these diverse funding products. The end goal is to maximize the amount of funding you can obtain, as close to meeting your needs as possible, while minimizing debt service or interest expense.
To that end, below we’ve outlined the basics of these different small business funding options, to give borrowers a better sense of how they can best be used for small businesses in Denver, Colorado, and across the US.
Small Business Loans
- Provides a lump sum of cash at the time you take out the loan
- Repayment of the principal and interest is over the duration of the loan
- Repayment period is usually a few years up to a decade on the high end
- Typically, repayments are divided equally across the loan term
- Most common repayment frequency is monthly
Short-Term Business Loans
- Operates similarly to a small business loan, but has a shorter loan term or duration
- Repayment of the principal and interest is over the duration of the loan
- Repayment period is usually a few months to a year or two at most
- Typically, repayments are equally divided across the loan term
- Most common repayment frequency is weekly, though can be daily or monthly in some cases (varies by lender)
Business Lines of Credit
- Very different than a traditional loan
- A line of credit does not provide cash up front
- Rather, it provides access to a credit line, from which you can borrow, up to the credit limit
- This credit line works in a way similar to a credit card, but provides cash for withdrawal and expenses, rather than only being usable for purchases in the case of a credit card
- Can borrow in whatever amount you need, and re-borrow over and over again, so long as the outstanding total is below the credit line maximum
- Interest must be paid on the outstanding balance only
- Minimum monthly payments, like with a credit card, but can be repaid faster or in whole or part above the minimum at the borrower’s discretion
- Simplifies borrowing, as you can borrow again and again without having to apply for a new loan or have as structured a repayment schedule
Merchant Cash Advances
- One of the most unique forms of small business funding
- Also known as an MCA loan
- Provides a lump sum of cash up front, but it is not technically a loan
- Instead, you are pre-selling future debit and credit card sales in exchange for a cash advance
- You pre-sell these sales at a discount, to account for interest and risk, known in this case as a factor rate rather than an interest rate
- There is no fixed repayment amount or loan term
- Repayment takes place automatically, via deduction from debit and credit card sales made after the merchant cash advance is taken out
- Repayment amount is tied to sales, so less sales in a particular day/week/etc. means less repayment, and vice versa
- This is by far one of the easiest small business funding products to obtain
- Only suitable for businesses who do most of their sales revenue through credit or debit cards
Debt Consolidation Loans
- Not a direct form of small business funding, but rather is used to pay down existing debt, freeing up capital and saving money for small businesses over the long term
- Like a small business loan, a debt consolidation loan provides a lump sum of cash up front
- This is then used to pay off multiple existing debts, in part or in whole, thus consolidating debt into the single debt consolidation loan
- Typically, these loans can be obtained with lower interest rates than some or all of the existing debts you may hold
- That reduces interest expense, and saves money
- By consolidating debt to a single loan and servicer, it cuts down on servicer fees and surcharges, and also streamlines the repayment process to a single (usually monthly) payment
Small Business Loans for Women-Owned Businesses
- Small businesses loans for women-owned businesses have reduced qualification requirements compared to the small business loans discussed above
- This is meant to provide greater access to funding for women-owned small businesses, offsetting traditional discrimination and difficulties that have existed for many years, and made it much harder for women-owned businesses to obtain small business funding when compared to equally-qualified male-owned businesses
Bad Credit Business Loans
- Bad credit business loans are small business loans that are created with reduced credit score and other qualification requirements, so that they are easier for businesses with bad credit scores or limited credit history to access
- May have somewhat reduced loan maximums or higher interest rates
- The reduced credit score and other requirements improve the range of businesses who can obtain small business funding
- Bad credit business loans aren’t usually found at banks, but are common at top private, non-bank lenders
- Easier application and approval process for all forms of business funding in North Carolina, as well as faster overall processes.
Sources of Small Business Funding in Denver
Once you have a handle on the different kinds of small business funding in Denver, the next logical step is to figure out where you can go to get a small business loan, line of credit, or other funding product.
As we highlighted in our introduction to this guide, most small businesses have a choice between two categories of lender for small business loans in Denver (and all other kinds of small business funding).
Specifically, those two categories are banks and traditional lenders on the one hand, and private, non-bank lending firms on the other. Of course, you can apply at both banks and private lenders, and compare rates and options accordingly.
In general, however, most small business owners who have tried both banks and private lenders come down firmly in favor of private lenders, and recommend private lenders to their fellow small business owners as the best choice for small business funding.
This simple either-or choice is actually far more important that it seems on the surface, as it can play a tremendous role in your success in obtaining a loan, and what that loan may look like.
It significantly influences factors such as:
- Which kinds of small business funding may be available to borrowers
- What the qualification requirements for those kinds of funding may be
- How easy or difficult it is to meet those qualification requirements
- The approval odds or chances that any given applicant may have
- The loan application and approval process, including how long it will take, what documentation may be required, and so on
- How fast you can expect to get your funding if your business loan in Denver is approved
- The interest rates you may be charges, loan amounts you can borrow, duration or term of the loans, etc.
- Whether or not collateral is required (a secured loan or credit product), or is not required (an unsecured loan or credit product) as a requirement for obtaining your chosen small business funding
That last point is extremely critical. Many small businesses struggle with the choice between secured and unsecured funding.
Secured funding, which requires collateral, can offer somewhat lower interest rates for small business loans in Denver, and many of the other forms of small business funding that are available. However, that is their only upside.
On the downside, they present serious risks for small business owners. Putting up valuable assets as collateral, which will be seized in the event of a default on the loan, is very risky business, especially given the statistic that half of all small businesses fail within the first five years!
Even if you have sufficient assets to use as collateral (which many newer small businesses don’t), it’s a gamble that doesn’t have much by way of payoff.
On the other hand, unsecured funding products have marginally higher interest rates, but no collateral requirements. This makes the debt a higher risk proposition for the lender, so it’s only fair and reasonable that the interest rates are a bit higher to compensate for that increased risk.
Small businesses who do not have sufficient assets to use as collateral, or who do not want to risk putting up collateral, can still obtain unsecured small business funding in Denver and elsewhere.
Collateral can be a tricky subject in several other ways, too. For one thing, collateral must be assessed for fair market value prior to the closing of a loan or signing of a loan agreement.
This adds substantial time to the loan or credit line application and approval process, often extra days or weeks. At the same time, that valuation can be very unfair to the asset owners.
Brand new equipment purchased just months ago for $100,000 may only be valued at $60,000 when used as collateral. The net result is that many businesses seeking secured loans have to put up well more collateral than the value of the loan they are seeking – often 300 to 500%!
The thing of it is, until the last decade or so, secured small business funding was often all that was available. Banks and traditional lenders are notoriously risk-averse, and so most often, they only offered secured loans and credit products.
This placed small business funding out of reach of many deserving small businesses, who either didn’t have collateral to risk, didn’t want to take the risk, or needed money immediately, not weeks to a month later.
That largely still holds true when it comes to seeking loans from banks, which is, again, why many small business owners prefer to get their funding from private, non-bank lenders.
There are many reasons why private lenders are a better choice, and present lower risk for business loans in Colorado and throughout the US. Several of these reasons are the direct corollary advantages to the disadvantages we discussed above regarding secured funding.
It significantly influences factors such as:
- As discussed above, they have a much lower risk profile for small business owners, and won’t result in those owners risking their limited personal or business assets in order to obtain small business funding
- Generally speaking, unsecured small business loans and funding from private lenders have less-strict qualification requirements in order to apply. This can take the form of lower minimum credit scores, lower monthly revenue, and less time in business, among others. As a result, a larger percentage of the small business community can access funding from private lenders as compared to banks.
- On this same topic, bad credit business loans – loans aimed at businesses with a limited credit history or poor credit score – are more readily available from private lenders. Banks rarely if ever offer bad credit business loans, and when they do, it’s almost always with significant collateral requirements.
- Most private lenders offer simpler, faster application and approval processes. With no collateral assessment required, they’ve been able to streamline applications and documentations, getting small businesses their much-needed loans and credit products in hours to days, rather than in weeks or a month as with bank loans.
- Funding speed is typically much faster from private lenders as compared to banks. Once a loan agreement is signed, many of the top private lenders offering business loans in Colorado can transfer funds to your bank account in as little as 1 business day.
Those are far from the only reasons why small business owners prefer unsecured small business funding from private lenders, but they are among the most compelling.
Getting funded easier, faster, with higher approval odds, less waiting, fewer burdens, and less risk is nothing but a series of wins for small business owners in need of working capital or project-specific funding.
Whether you’re a business owner seeking a business loan in Denver, a line of credit, merchant cash advance – or are doing so in any other city in Colorado or throughout the US – consider unsecured small business funding from a private lender as your go-to choice.
BizFly Funding – A Leader in Business Loans for Denver Businesses
We strongly encourage you to consider choosing BizFly Funding as your private lender, for all of your small business funding needs. BizFly Funding is a leading private lender based in Nevada, and serving the entire US.
They exclusively provide small business funding, and therefore have become experts in meeting the needs of the small business community across all market sectors.
They offer a full portfolio of the small business funding options or products that we’ve discussed in this guide – everything from basic small business loans for Denver businesses, up through the more exotic forms of financing like debt consolidation loans or merchant cash advances.
As a private lender, all funding from BizFly Funding is unsecured, with no collateral requirements. BizFly Funding is committed to high levels of customer service and satisfaction, and helps you to get funded quickly and easily.
With high approval rates, affordable interest rates, fast funding, and up to $1 million available through many funding options, BizFly Funding is an exceptional choice of private lender for your small business needs.
Though subject to change (the latest requirements are always available on the website and as part of the application process), the core qualification requirements for some of the most popular options in the small business funding portfolio at BizFly Funding are highlighted below.
Now, there’s nothing left for you to do but start the application and pre-approval process, to find out how large a small business loan or credit product you can qualify for at your chosen lender.
To that end, we highly encourage you to consider BizFly Funding as your lender for all your small business funding needs. BizFly Funding is a leader in the US private lending market, offering a full portfolio of small business funding options to the small business community.
BizFly Funding can help you to find the ideal choice of credit or loans in Charlotte, and can provide up to $1 million in small business funding with several of those products (depending on qualifications).
As BizFly Funding offers only unsecured loans and credit products, it’s easy and fast to apply, with high approval odds and easily-met eligibility requirements. Interest rates are affordable, and loan terms quite varied to meet the diverse needs of different small business market sectors.
Though subject to change (the latest requirements are always available on the website and as part of the application process), the core qualification requirements for some of the most popular options in the small business funding portfolio at BizFly Funding are highlighted 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%
It’s easy to get started with an application and pre-approval at BizFly Funding, even if you’re not yet sure how much you need to borrow or what product might be the best for your small business.
In fact, it can be quite useful to find out what sort of amount of funds from a small business loan your Denver-area business can expect to receive. Just check out their website, and fill out the basic outreach form.
After a basic review, one of the team members from BizFly Funding will get back to you to discuss your qualifications, and review the different small business funding options that may be available to you. Don’t wait ages to get funded at a bank or traditional lender.
Maximize your odds of approval, and give yourself the biggest menu of small business funding options to fuel your businesses’ growth.
Choose unsecured funding from a private lender like BizFly Funding, and put yourself on the path to small business success! To learn more or to start the application process, visit BizFly Funding online at https://bizflyfunding.com.
