Whether you’re based in Columbus or Cleveland, getting a business loan in Ohio has never been easier. Particularly now, mainly when businesses require help by way of additional working capital after having come through a challenging economic climate. And currently, with inflation and labor shortages, Ohio-based business owners could use working capital to help them weather the storm. Some entrepreneurs may be looking for extra cash to expand their Ohio businesses, hire more personnel, or buy out a competitor. Whatever reason you need money, now is an excellent time to apply for business financing.
Different Types of Loans for Ohio Businesses
Ohio is truly a great place to own and operate a small business. Beyond the lower cost of living and the lower price of doing business, Ohio is also home to some highly prestigious universities. From Ohio State to Bowling Green to Kenyon University, the talent pool here by newly graduated young professionals is undoubtedly vast. So if you do need a business loan to attract and recruit some of that top talent, Ohio has plenty of options for you.
Short Term Financing
As the name suggests, a short-term loan is generally paid off within three months to 18 months. Interest rates can be higher with some short-term loan products, though you are paying the loan off over a shorter amount of time. For emergency issues, for example, a short-term loan could be the ideal solution.
Line of Credit
A business line of credit for your Ohio-based company could work to your advantage. With a line of credit, once you pay off the amount you draw from the line, it is available for you to use again. This is what is known as a revolving line of credit. And the good thing is you only pay interest on what you borrow, not on the entire amount of the loan.
Equipment financing is perhaps one of the most popular loans for Ohio small businesses. Whether you are looking to purchase heavy machinery or IT equipment, there is a lending product that can accommodate your needs. With an equipment loan, the equipment will often serve as the collateral—meaning, you do not have to put anything down, and you may be eligible for 100% financing.
Merchant Cash Advance
In getting a merchant cash advance, you borrow money against your future sales. So if you have a decent amount of credit card transactions, this could be a good financing option for your Ohio company. The lender would advance you the money, and then they would charge you a percentage of your future credit card sales. You would not be paying back as much as you would when sales are better during slower times.
Preparing Your Loan Application Packet
Preparing your loan application packet is not as hard as some business owners think. It really is a matter of being organized, having everything up-to-date, and ensuring that your information is ready to go should the lender request specific items. For example, you’re likely going to need your tax returns, both business and personal. They are also probably going to ask for bank statements; have at least three months’ worth ready to go. Among the other items that a lender may ask for in going for your Ohio small business loan are:
- Any business leases
- Articles of incorporation
- Documentation on any property owned by the business
- For an equipment loan, detailed information on the equipment being purchased
- Financial statements to include balance sheets, profit and loss statements as well as cash flow statements
- A business plan – while you don’t necessarily need one, if other areas of your application packet are weak, you may want to provide one in order to show the lender the seriousness of your intentions and your future plans.
Before applying for an Ohio business loan, do your homework. That is to say, look for a lender that offers not only the lending products that you need but one that truly is invested in helping their clients grow. Often, traditional banks, for example, will be more interested in working with more giant conglomerates and more extended established companies versus a newer, smaller Ohio-based business. This is where working with an alternative or online lender really can benefit you tremendously.
First Union Lending is Here to Help
We offer numerous business loan products, and we have been working with Ohio companies for years now. We do want to see our clients thrive and grow. Some of our clients receive the cash in their accounts within two business days—we do work that quickly. Call today, and let’s get started.