Our goal at Lending Valley is to provide all small business owners access to the best loans possible for their business. You can rest assured we will get you the best rates in the market!
Louisiana is situated in the South-Central United States and it ranks at 19th at being the smallest state in U.S.A by area. Louisiana list 25th in the most populous state in U.S.A. According to BEA data in 2016 the GDP of Louisiana was $205 million dollars and it ranked as the 25th largest economy among all the other states. During the year 2014 Louisiana was ranked as one of the best states for small business firms. The port of South Louisiana is known as the largest volume shipping port in the Western Hemisphere and ranks as the 4th largest in the world. Two most important sectors that play a big role in Louisiana’s economy are Tourism and culture which brings in about $5.2 billion every year. Louisiana is also known for its rich content of petroleum and natural gas and it was the first site in the world where petroleum drilling over water was done. Small businesses in Louisiana has the option of getting small business loans in order to start a business or to expand the business activities.
How to get a business loan in Louisiana?
Conventional Bank loans is a good option for small businesses. Banks offer good rates and terms for businesses if they qualify for traditional financing. This rates usually changes depending on the situation and the prospect of the business. The best applicants are only granted the loan. This loan can be used to but real estate, refinance real estate, equipment etc.
SBA loans are loans that are granted by the government and it requires a lot of paper works. In Louisiana small business can seek for this loan and the lenders are not fully exposed and the Small Business Administration covers us the loss of the lenders. The funding time is usually thirty days and the rate vary. The term for these loans is usually ten to twenty-five years.
Purchase order financing is for businesses that have a good business plan and project and does not have the capital in order to start the business plan. In this case purchase order financing can add up the funds required in order to start the business operations. The fund can be used by companies to pay their vendors and suppliers. These loans can be acquired at a fast rate and the rates vary.
Asset Based Financing is a way for businesses to receive loans by having their assets as collateral. Small businesses can use their assets to gain funding. This includes the personal real estate of the owner, equipment, machinery and inventories.
Private business loans are basically unconventional loans and fintech loan which is provided by private investors and online lenders. This is a good way for small businesses to acquire a loan but they need a financing facility which has more flexibility than the conventional loans provided by the banks.
Challenges businesses face in Louisiana
Louisiana has a high sales tax which is a problem for small businesses. This might reduce the profit of the sales and business owners should keep this in mind.
Louisiana business owners might face the challenge of finding skilled employees for their business. The lack of skill employees can act as a barrier and might slow down the progress of the business activities.
Unsecured business loans in Louisiana
Equipment leasing is a type of funding in which a business owner does not need to pay a full cost for an equipment rather the owner can simply lease an equipment or material. Businesses has the opportunity to lease equipment rather than paying a full amount and this is very helpful for small business owners. For a small business this is a great opportunity.
Business line of credit is a kind of small business loan that offers flexibility which usual loans does not offer. This loan can be offered by different companies privately within a short period of time and the companies will look how your business has been doing before offering the loan. Small businesses can get immediate funding through this loan and has to deal with less hassle than the conventional way of taking loans.
Term loan is another form of loan which is paid in instalments over a set period of time. This loan is also offered privately rather than the conventional way of getting a loan and the lenders will look how the company is doing before offering the loan.
Documents required to get a small business loan in Louisiana
Louisiana is one of the states with the lowest living cost and this can be helpful for a new business owner. Louisiana offers a friendly environment for new businesses by eliminating several taxes and helping businesses to flourish. There are organizations in Louisiana which will help businesses to survive and establish in the state. Louisiana is also one of the safest states in the U.S with a low crime rate and business owners should keep this in mind. The annual disposable income of the residents of Louisiana is increasing from time to time and this is a good sign for businesses as people now have more money to spend. The current small business loan option can make it easier for businesses to expand and survive.