Is it possible to get a $15,000 business loan?
Business loans are available in amounts ranging from $1,000 to upwards of $1 million.
Therefore, finding a $15,000 business loan is not only possible, but fairly easy. In fact, small loan amounts are typically easier to qualify for than loans for larger amounts.
$15,000 business loans are a great option for business owners who need to finance a one-time purchase, pay for an emergency, cover payroll costs, or solve an immediate cash flow need.
Alternatively, you can apply for a personal loan. Personal loans are a convenient option for many business owners due to their flexible terms, lenient requirements, and ease of use.
Where to find smaller business loans
In addition to your local bank, you can find business loans at your local credit union or from an online lender. To confidently choose the best loan offer, you may want to shop around. With a smaller loan amount like $15,000, you won’t need to do as much due diligence, but you shouldn’t jump at the first loan offer you receive. Here are some of the best places to find smaller business loans.
- Online lenders: Online lenders have fewer operating costs than traditional financial institutions, allowing business owners to take advantage of competitive interest rates, flexible loan terms, and low fees. For these reasons, online lenders are increasing in popularity, making them a great place to apply for a $15,000 business loan. Traditional lenders may favor larger loans as they can turn more of a profit on them. At PrimeRates you can access a network of top-rated and fully vetted online lenders that offer business loans. Within minutes you can receive personalized offers that you can actually take advantage of. Checking offers does not impact your credit score, furthering the reasons you should take advantage of PrimeRates.
- SBA loans: While the Small Business Administration does not generate loans itself, the SBA guarantees loans through a network of partner lenders. SBA loan programs include microloans, equipment loans, general business loans, and real estate loans. These loans may be easier to qualify for than other types of business financing, although the application process can take several weeks or even a few months.
- Credit Unions: Credit unions are member-owned and often approve applicants who have failed to qualify for a loan through other loan programs. They typically offer less stringent loan requirements, a more lenient underwriting process, competitive interest rates, and more flexible loan terms when compared to traditional banks. Check with a few credit unions in your area about membership requirements and loan programs.
Pros and cons of small business loans
There are a few pros and cons to taking out a small business loan. Applicants should be sure to keep these points in mind, regardless of the loan amount. You should also consider pros and cons that may be specific to your situation.
PROS: Small business loans help entrepreneurs cover a variety of costs including expansion opportunities, staffing and payroll, emergencies, start-up costs, marketing, equipment and inventory purchases, and more. Taking advantage of financing gives business owners a way to pay for business needs even without having the cash up front. When compared to other forms of financing such as credit cards, business loans typically have lower interest rates and provide the added convenience of paying the loan off over time.
CONS: On the other hand, small business loans also have a few disadvantages. In contrast to using credit, taking out a business loan is best designed for one-time purchases. This makes loans a poor option for ongoing or recurring business expenses. In addition, a small business loan may not provide enough funds to cover your business needs. They can be tedious to apply for and the wait for loan approval may be long, especially when compared to using credit cards. Many business owners prefer having access to an open line of credit that can be used more than once. Lastly, small business loans can carry hefty fees such as origination fees and early prepayment fees.
What can a $15k business loan be used for?
A $15,000 business loan is a valuable resource. In most cases, there are limited spending restrictions aside from the fact that the funds need to be used for business needs. A $15,000 business loan can be used for inventory, expansion, marketing, equipment, inventory systems, staffing, cash flow challenges, start-up costs, and more.
What interest rate can I expect to pay on a $15k business loan?
The average interest rate on a business loan is around 7%, depending on the lender and a few other factors. Your credit score can either positively or negatively affect the interest rate you receive on your loan.
Loans from online lenders and credit unions may carry lower interest rates than bank loans. Likewise, smaller business loans (such as a $15,000 loan) may also carry lower interest rates.
A lower interest rate can save you hundreds of dollars over the lifetime of the loan. This is why it is important to look for the best possible deal when you are applying for business financing.
How long does it take to get funded after applying for a $15k business loan?
Although the amount of time it takes to get funded after applying for a business loan will vary, on average business owners can expect loan approval to take between 1 and 21 business days.
Factors that influence the length of time it takes to receive your funds include the type of loan, amount of the loan, your lender, and your financial institution. After loan approval, the actual funds transfer may take an additional 1-2 business days depending on your financial institution.
The more prepared you are with your supporting documentation, the quicker you can expect the loan application process to be. In general, credit unions and online lenders process loan approvals much faster than banks, which can take several weeks or even months (especially for an SBA loan).
What credit score do you need to get a $15k business loan?
In order to get a $15,000 business loan, you will need to meet the requirements of the lender. Most lenders will check your personal credit score, and they may also run your business credit if you have one.
While each lender sets their own minimums, most financial institutions require a credit score of at least 600 and the best rates are offered to applicants with Prime scores of 660 and above.
If you don’t have good credit, you can increase your chances of qualifying by taking steps to boost your credit score before applying.
Can I obtain a $15k business loan with limited credit history?
Obtaining a personal or business loan with limited credit history may be challenging. If the limited credit history you have is good, you may qualify for a small business loan. However, if you’re struggling to qualify for a loan you should consider backing it with collateral. With a limited credit history, lenders may place an extra emphasis on income and business stability.
Do I need to provide collateral to obtain a $15k business loan?
Although most business loans are unsecured, there are some instances where you may need to provide collateral in order to obtain a business loan. Some types of business financing such as inventory financing and invoice factoring use your business assets (inventory and invoices) as collateral. In addition, equipment loans and real estate loans may be secured with the property you are purchasing. If you’re struggling to qualify for a business loan, you may want to consider backing the loan with collateral.
How to qualify for a $15k small business loan
Business owners will need to meet certain minimum qualifications in order to get approved for a small business loan. Most lenders will expect to see a certain amount of time in business, a minimum credit score, and a minimum annual revenue. You will most likely need to submit documentation proving all of the above information. Lenders will run your personal and/or business credit in order to check your credit score and credit history. All in all, this approval process for a small business loan can be lengthy, especially if you are applying for an SBA loan.
To speed up the process, have all paperwork ready and consider applying via an online lender.
How to get a $15k business loan
With so many places to get a $15,000 business loan, you may be wondering where to start and how to find the best deal. This is where PrimeRates comes in. PrimeRates can help you save time while helping you lock in the best loan offer possible. Simply, submit an application online and receive personalized business loan offers that you actually qualify for.
To get a $15k 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
Are smaller business loans worth it?
Smaller business loans can be very much worth it for business owners to quickly and easily cover business needs without paying in cash up front. When compared to using credit cards, business loans typically carry lower interest rates and come with less risk of overspending.
Loans in smaller amounts are often easier to qualify for than large business loans and may even have lower interest rates and fees. The smaller the loan amount, the easier the loan will be to pay off and the quicker you can expect to get out of debt.
Business loans can help companies succeed by providing the cash needed to pay for an emergency or unexpected expense, cover gaps in cash flow, fund operating expenses, and expand their operations.
Apply for a $15k business loan online
The internet can expedite the process of securing a $15,000 business loan. However, it can also present additional risks. Always be sure to deal with legitimate sources when transacting online. PrimeRates offers an online platform that allows business owners to check business loan and personal loan offers from vetted and trusted lenders. Within minutes you can unlock business loan offers that you actually qualify for. This means more time building your vision and less time shopping around for a business loan. 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.
Explore the opportunity of a $15,000 business loan. . . check offers today!