$10,000 Business Loans

Can you get a $10,000 business loan?

Yes. A $10,000 business loan is a small business loan amount that can help grow your business. In most cases a $10,000 business loan will come in the form of a traditional term business loan. However, there are other ways to borrow $10,000 dollars such as investors, credit cards, or a line of credit. Before taking out a loan, no matter how big or small, do your research. It’s important to compare offers and find the loan with the best rate and term combined with little to no fees. Even on a small loan amount such as $10,000, interest can add up quickly. For example, a $10,000 business loan with a 3 year term and 6% rate can accrue about $951 during the life of the loan.

What can a $10k business loan be used for?

In most cases, $10,000 can be used for any business related expenses. Some common uses include equipment, technology advances, inventory, or simply taking advantage of a new opportunity. However you see fit to invest the money is how it should ultimately be spent, just be sure there are no spending restrictions on the loan. Term business loans are ideal because of their fixed monthly payment and various loan amounts. They have other advantages too such as flexible repayment terms and competitive interest rates. You can even get a term business loan without putting up collateral. 

Who can apply for a $10,000 business loan?

If you own a business and meet the qualification requirements, you can apply for a $10,000 business loan. Before applying you may want to play with a payment calculator to ensure you can afford to take on a $10,000 loan. If you feel you can, go for it. While all business owners with a legitimate business can apply for a business loan, here are some examples of who can apply.

• Independent contractors: Independent contractors can use business loans for marketing, supplies, machinery, and more. 
• Product based brands: Product based brands face high inventory costs which can take away from free cash flow. Therefore, they may need to use a business loan to grow the business or even cover the cost of a large inventory order. 
• Wholesalers: Wholesalers can use business loans to develop relationships, purchase inventory, and grow their business. 
• ANY legitimate business: Again, any legitimate business can apply for a business. If you’re not sure if your business qualifies, apply online and find out. 

Where to find smaller business loans

Thanks to technology, we now have more and more places to find smaller business loans. Some may be timid to use the internet to find a business loan but any kind of fear in business will cost you at some point. Interest is a valuable resource when it comes to finding the best business loan. It allows you to read reviews that clue you in on what to expect when dealing with a lender. It also allows you to easily access multiple offers. You can quickly gauge what the market is like by gathering offers. Comparing offers is an important part of the process. Here are a few places you can look to find smaller business loans:

• Online business lenders: Getting a business loan online is a perfectly normal thing to do. In fact, you may be able to find some of the best business loans online, especially when it comes to smaller business loans. If you choose to go the online route, just be sure you are dealing with a legitimate source. One way to access business loan offers online while ensuring your information is safe is PrimeRates. PrimeRates is all about helping small businesses find business loans of all sizes. At PrimeRates you can shop loan offers that you actually qualify for. In just minutes you can access personalized loan offers using our quick pre-qualification application. 

• SBA loans: The SBA is an independent agency of the federal government created in 1953. Part of their main objective is to strengthen the overall economy of our nation by aiding, counseling, assisting, and protecting the interests of small business concerns. Small businesses can work with SBA approved lenders to apply for SBA loans. SBA loans are available in a variety of loan amounts. While they are designed for small businesses, requirements are strict and approval times can take 60-90 days.
• Local banks and credit unions: Banks and credit unions can be a useful financial resource for small businesses. In fact, you probably frequent one on a regular basis for every day financial needs. It never hurts to stop and see what they can offer in terms of a business loan if you’re considering one. Banks and credit unions may not be the fastest option for a business loan but if you're comparing offers, you might as well cover all your bases. 

Pros and cons of small business loans

PROS:

• Fixed interest rates (in most cases)
• High loan amounts available
• Flexible and long repayment terms available 
• Short term loans may have low eligibility requirements 
• Access to working capital needed 

CONS:

• Lengthy approval times (can take 60-90 days for SBA loans)
• Prepayment penalties and other fees may apply 
• Taking on debt 
• Good credit is usually required 

What interest rate can I expect to pay on a $10k business loan?

Business loan interest rates can vary from 2% to 100% depending on the type of loan, the lender, and the borrower. The interest rate you can expect relies heavily on your financial situation and credit score. If you're new in business with little to no sales and a mediocre credit score, you’ll probably have to pay high interest rates. If you have a stellar credit score and established sales, you can expect a competitive interest rate. Some states have regulations and caps on interest rates and fees so be aware of what applies to the state you operate in. The best way to find out what you can expect is to get pre-qualified. At PrimeRates you can get pre-qualified with no impact on your credit score. 

What is the cost of a $10k business loan?

The cost of a $10k business loan will depend on the interest rate, fees, and term. When comparing offers you should pay attention to total loan costs, not just monthly payments. If total loan costs are not obviously stated you can use a payment calculator to estimate total loan costs. You’ll need the loan amount, term, and interest rate for an accurate calculation. 

Here are two loan cost estimates for $10,000 business loans.

Example 1: 

• Loan amount $10,000
• APR 7% 
• Term 2 years 
• Estimated total loan cost $10,745.42

Example 2:

• Loan amount $10,000
• APR 12%
• Term 3 years
• Estimated total loan cost $11,957.15

How long does it take to get funded after applying for a $10k business loan?

Funding times can vary depending on the lender. In some cases you can receive funds in as little as 24 business hours, but a more realistic timeline would be a few business days. The funding timeline typically does not take place until you’re pre-qualified and all stipulations are submitted. A loan can only be funded once the borrower is fully approved. SBA business loans can take 60-90 for funding.

What credit score do you need to get a $10k business loan?

With a smaller business loan amount like $10,000, requirements may be more relaxed. To qualify you’ll likely need a credit score of 640 or higher. For a better chance of qualifying you should have a credit score of 670 or better. Keep in mind, low interest rates are reserved for borrowers with good credit. If you are working on improving your credit you may want to wait to apply for a business loan. 

Business credit score can also be considered. Business credit contains information about paying off loans and trade credit arrangements. It’s a score between 0 to 100. Other information such as legal filings and credit card companies can be on record. Business credit scores are reported by Experian.

Can I get a $10k business loan with limited credit?

Getting any kind of loan with limited credit can be challenging. You may be able to get a $10,000 business loan with limited credit, but it’s usually better to build your credit before taking a $10,000 loan. Other factors such as income or time in business may be considered in addition to length of credit, so ultimately it will be decided on a case-by-case basis. We recommend trying a secured loan or applying with a co-business-owner if possible. To find out if you qualify, visit PrimeRates for personalized offers with no credit impact.

Tips for qualifying for a $10,000 business loan

Here are a few pro-tips that’ll help you qualify for a $10,000 business loan,

• Submit accurate information 
• Have current financial statements available 
• Demonstrate free cash flow or ability to repay 
• Show growth (most lenders want to see 10% revenue growth each year)
• Work on business and personal credit scores (boost business score by paying vendors on time)
• Provide collateral if needed
• Compare offers 

How to get a $10k business loan

To get a $10k business loan here are a few steps you should take.

• Check your credit score (make sure there are no easy improvements)
• Determine what type of loan you want to use 
• Determine how much you need to borrow
• Prepare financial documents and tax returns 
• Compare offers 

Apply for a $10k business loan online with PrimeRates

Whether you’re ready to apply for a $10k business loan or just entertaining the idea, you’ll want to visit PrimeRates online to apply. At PrimeRates you can learn about business loans as well as apply for them. Rather than waste time browsing unrealistic advertised rates, submit an application at PrimeRates and receive offers you can actually take advantage of. Checking offers from our network of lending partners does not impact credit score, but it can make a huge impact on the success of your business. 

Discover the business loan offer that’s just right for your business needs. . . compare offers online!

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