Term Loans

For your Small Businesses, Restaurants, Contractors, Auto Repairs shop

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What Do You Need To Qualify?

The question of “How do small business loans work” is the natural question when deciding on growth possibilities or starting a small business.

Small business loans allow existing or startup companies to borrow money from various lenders. Various loan types exist to help entrepreneurs meet different goals. The way each loan works depends on the type of loan.

Maybe you’ve come up with that product that has the market beat. Or, maybe you need a piece of equipment that would tip your business’s growth over the top. Or, maybe outstanding invoices have you in need of funds for operating costs. Whatever it may be, it may be time for a loan.

What is a small business loan?

So, what is a small business loan? Simply put, a small business loan is any funding option specifically designed for a small business. Small business loans allow existing or startup companies to borrow money from various lenders. Various loan types exist to help entrepreneurs meet different goals. The way each loan works depends on the type of loan.

There are many business loans on the market and it can be beneficial to go over just a few of them.

Term Loan

A standard bank-type loan. You receive the funding and pay off the principle plus interest over time.

Equipment Financing

An excellent way for a growing business to get an edge. You receive the equipment upfront and pay it off over the life of the equipment.

Accounts Receivable Financing

If you have large amounts of outstanding invoices, you can borrow against them. The invoices act as collateral and AR Financing offers lower rates.

Merchant Cash Advance

A merchant cash advance is borrowed against future credit card sales. A borrower then pays back a percentage of daily CC sales to the lender. So, you never have to see the payments!

Business Line of Credit

A business line of credit works just like a non-physical credit card. The owner of a small business is extended a line of credit and is charged the interest only or what is spent.

Have Questions?
Speak with a Air Drop Loans
Financing Advisor today!

Our Business Financing Advisors will help you find the best financing options for your business to get you more funding, better terms, and lower interest rates. We’re available to explain every step of the process from applications to your re-payment schedule!

Call Now: (307) 278-1142

Requirements to Apply for Small Business Loans

While specifics may vary slightly, the general small business loan requirements include the same primary elements.

Credit Scores

Since you assume responsibility for the small business loan, your credit score matters and plays a large part in determining the loan amount. Keep in mind that if you have more than one owner, the bank will want to see credit scores for everyone, along with the overall business credit score. Before heading to the bank to apply, it may be in your best interest to check your credit report for any inaccuracies. Also, if you are close to a higher threshold, you may want to take steps to boost your score that little bit.

Business Banking Records

The bank needs to see your business banking records to assess the foundation and assign a rating, which determines how much the business can borrow. Try to abide by the following tips to make sure you are in good standing:

It’s ideal to maintain a steady balance with regular deposits to demonstrate consistent revenue and responsible financial management.
Avoid overdrawing your account and set up overdraft protection.
You may want to ask for a bank reference from your company’s banking institution. It could go a long way in convincing a lender.
Of note, most lenders like to see companies in business for at least 6 months, so you may be asked to show time in business as well.

Keep in mind that there are key numbers the bank will look at when determining your rating and loan amount. Lenders like to use a broad approach, so they will want annual gross sales along with monthly numbers for the following:

Gross margin
Cash flow
Debt to equity ratio
Accounts payable and accounts receivable
Earnings

Monthly Sales Volume or List of Collateral and Assets

Some lenders ask for collateral while others do not. However, most lenders request that you list company assets on the application. They want to know what could cover your obligations in the event you can’t repay the loan. Alternatively, you can provide proof of sufficient deposits into your business bank account that can provide confidence to the lender that loan payments can be met.

Benefits of Small Business Funding

So, what type of funding do you need? Wondering “where can I go to get a small business loan for a new business?” Small business loans can help you reach many of your business goals. They can help you keep control of your profits and business, avoid problems with loans from family or friends, and protect you from putting your personal assets at risk.

Your need for capital will vary from smaller, short-term financing for purchasing equipment, buying new or additional inventory, and leasehold improvements to more extensive, longer-term loans for expansion projects and growth.

At other times you may only need a simple line of credit to purchase products and services, meet payroll, or finance accounts receivable. CB Insights reported 29% of businesses failed because they ran out of cash, despite the new options for small business loans.

Testimonials

Absolutely flawless experience. Applying was a breeze, and getting approved was a smooth journey. William guided me through each step transparently and efficiently. Plus, the funding came through within just one day."

Ryan GarciaMedical

"I'm incredibly impressed by AirDrop Loans. When an urgent opportunity arose for my business, requiring fast capital, AirDrop's team came through in record time. They're reliable, communicate excellently, and deliver on their promises. I'll certainly be returning to them for future needs."

Jennifer NguyenTechnology

"AirDrop Loans exceeded my expectations! As a small business owner, securing funding can be daunting, but AirDrop Loans made the process smooth and stress-free. They listened to my needs and found the perfect loan solution for my business. Highly recommend!"

Christopher BrownRetail

"I can't thank AirDrop Loans enough for their outstanding service. They truly went above and beyond to help me secure the financing I needed to expand my business. Their expertise and personalized approach made all the difference. I'll definitely be returning for future financial needs."

Ashley RobertsCEO

"Working with AirDrop Loans was a game-changer for my business. Their team was professional, responsive, and dedicated to finding the best loan options tailored to my specific situation. Thanks to AirDrop, I was able to take my business to the next level. I couldn't be happier with the results!"

Samantha LeeCEO

"Choosing AirDrop Loans was one of the best decisions I've made for my business. From the initial consultation to the final approval, their team was there every step of the way, providing guidance and support. Thanks to their expertise, I was able to secure the funding I needed quickly and efficiently. Highly recommend their services to any business owner in need of financial assistance."

David WilsonCEO

Term Loans

Our Features

Simple Application

No Minimum FICO

Larger Amounts

Same Day Funding

What Do You Need To Qualify?

3+ Months in Business

$5,000+ Monthly Gross Sales

No Minimum FICO