Find the Best Small Business Loans in Tallahassee, FL

How to get a business loan in Tallahassee

Entrepreneurs in Tallahassee typically seek business loans in Tallahassee to cover start-up costs or operational needs until their company is turning a profit. Business owners can also use loan funding for marketing or to purchase otherwise cost-prohibitive equipment or inventory.

Types of business loans in Tallahassee

There are a variety of business loans in Tallahassee, and the best fit for your company depends on your needs, how established your business is and the amount of funding you need. Some of the most common loan types are:

Applying for a business loan in Tallahassee

Lender requirements vary, but in general, applicants in Tallahassee are expected to show business and personal financials such as tax returns, bank statements, annual revenue and credit scores, as well as company legal documents.

If your company is new or you have bad credit, you may have trouble qualifying for traditional bank or credit union loans. However, you might find a lending partner by looking to online, alternative lenders. Many of these companies place a lower priority on your credit score, choosing instead to evaluate the strength and viability of your business.

Depending on your financial profile and type of business loan, you may be required to give collateral. In Tallahassee, this could be the real estate owned by your eatery in All Saints District or restaurant in Capitol Hill. It could also be equipment, such as your food truck at Railroad Square.

If you plan on taking out a loan with an extended repayment period, also known as a long-term loan, be prepared for a more thorough application process. Short-term loans provide quicker access to cash but require you to pay back the loan faster. Repayment terms can be as little as six months to 10 years or more. Equipment or real estate loans typically have longer terms, occasionally exceeding 20 years.

Business loan fees and additional charges in Tallahassee

When comparing loan offers, check for additional charges or costs. Lenders often have fees in addition to interest on a loan. The major types of fees associated with business loans include:

• Origination fees cover the cost of processing the loan.
• Prepayment penalties are sometimes incurred for paying off the balance of your loan before the completion of the agreed term.
• Referral fees are charged by loan brokers for referring you to a lender.
• Packaging fees cover the cost of preparing a loan application to a lender.

Some fees are taken out of the amount of funding you receive from the loan, so be clear on all charges and ask for loan amount large enough for its intended purpose after paying them.

If you need help or guidance navigating the loan process, the Tallahassee Small Business Development Center and Tallahassee Score provide free advice for people looking to start or grow a company in the area.