Find the Best Small Business Loans in Tampa, FL

How to get a business loan in Tampa

Business loans are useful to companies at any stage of growth. Small businesses can use them when they need quick cash for operating costs, and start-up companies, which are increasing in Tampa’s growing tech sector, can use the funds to begin reaching customers while building their platform. Companies expanding into new locations or purchasing equipment can also benefit from a business loan.

Business loans come in different forms, and the best one for your Tampa business depends on your size, your financial projections and your reason for taking the loan. The most common business loans are:

• Term loans: The business borrows a set amount and pays it back on a set schedule
• Lines of credit: Similar to credit cards
• Equipment loans: Secured by the equipment purchased with the funds
• Real estate loans: Allow you to buy or lease property for your company
• Microloans: Short-term loans usually for smaller amounts
• Small Business Administration (SBA) loans: Partially secured by the U.S. Small Business Administration

To qualify for a business loan in Tampa, it helps to have a good personal credit history as well as business credit history. Lenders may want to meet with you to see your plans for the funding. You’ll need to gather all of your corporate documents, including:

• Tax returns for your business
• Income statements and balance sheets
• Bank statements
• Budgets or financial projections
• Articles of incorporation, business licenses and a business plan
• Commercial leases

Some business loans may require collateral. In Tampa, this could be the real estate your shop owns at Wiregrass or in Hyde Park. It could be equipment, such as your food truck in Ruskin. If you don’t have any collateral, you’ll need to look for an unsecured business loan.

If you’re borrowing money for a commercial real estate purchase or you want an auto loan for your business, a down payment may be required, but it will rarely be more than 10 percent of the value of the loan. You’ll have a choice to take out a long-term loan, usually through a bank or a credit union, or a short-term loan, which you can find from an online or independent lender.

If you’re an established business with a good relationship with your lender or bank, long-term loans usually have lower interest rates and allow you to pay the loan back over a longer period of time. Short-term loans can often be funded in a day, however, and may have an easier approval process.

Fees and terms for business loans in Tampa

Loan fees and costs for Tampa small business borrowers will vary depending on the type of loan. An SBA loan will come with a guarantee fee that’s usually between 2 and 4 percent of the amount you borrow. Your business loan for real estate will include closing costs, such as origination fees, title insurance and fees for appraisals and surveys. You’ll also need to add the interest rate into the overall cost of the loan.

Repayment terms depend on the type of loan and the lender. A two-year loan for $50,000 would be paid back in 24 different installments that cover the principal, the interest and any other costs or fees that the borrower must pay. With a line of credit or a business credit card, you’ll make at least the minimum monthly payment until your balance is a zero.

There are loans available for Tampa business owners who have bad credit, but you can expect a few obstacles and a larger price tag. While banks and credit unions are likely to turn you down, you can apply for funding through alternative private lenders or attempt to qualify for a merchant cash advance, which has a higher interest rate and a shorter repayment window.