Borrowing Options for Small Businesses in New Hampshire – Natural Self Esteem

Small business owners in Concord, Merrimack, and Manchester, as well as every other New Hampshire city, fuel the state’s economy.

But even with such an important role, sometimes these small businesses need a little help when it comes to corporate finances. Fortunately, there are several small business loan resources in New Hampshire.

How a Small Business Loan Can Help Your New Hampshire Business

If you’ve never taken out a business loan, you might not know what to use one for. A small business loan can be used for a number of expenses for your business. If you need working capital to invest in marketing, inventory, or payroll, a loan is a great tool. If you want to buy another business or invest in real estate, there are loans for that too.

Even if you have a temporary liquidity crisis, financing can ensure you get over the hump until the money starts flowing again.

Types of small business loans to choose from

When it comes to small business loans, there are many different options and many different lenders. Which one you choose depends on what your funding needs are and what you qualify for. Here is a selection of the loan programs available to you in New Hampshire.

bank loan

For companies with excellent credit ratings, bank loans are a good choice as they offer low interest rates to those who qualify. Start your search with the bank you already have a relationship with, but don’t limit yourself to them. Here are other banks that offer great loans.

SBA loan

The US Small Business Administration also offers low-interest loans with long terms. Lending programs include 7(a), 504 and microcredit programs. The New Hampshire county office for the SBA is in Concord, although corporations statewide can qualify for SBA loans. Visit SBA.gov to find lenders in your area or explore:

Commercial Real Estate Loan

A specific category of financing is available in New Hampshire for entrepreneurs looking to purchase high-priced commercial real estate. These loans use the property you are buying as collateral for the loan, which can keep interest rates low.

Merchant cash advance

New Hampshire startups may not qualify for the above options. Banks and the SBA often want a higher credit rating and two or more years in business. If you do not have these qualifications, you may still qualify for a merchant cash advance. This is not a loan, but an advance on future credit card transactions.

What it takes to get a small business loan

I’ve given you a taste of what it takes to qualify for a loan through the SBA or banks. They usually have the highest criteria when it comes to approving a loan. In addition to a specific credit history and time in business, you may also be required to provide your business plan and financial documents such as tax returns and income statements.

Other options such as merchant cash advances, business credit cards, and invoice financing may have less stringent requirements to qualify.

How to choose the right loan for your New Hampshire small business

Start by determining how much you want to borrow, and then see what programs fit that amount. Some banks will lend as much as $10,000. So if you only need a small amount of financing, you should look into a microcredit.

Next, find out what you qualify for based on the criteria the lender has. This will remove some options from your list.

Look for the loan program with the lowest interest rate and terms that you qualify for.

Small Business Scholarship Options in New Hampshire

You may also be able to receive financial assistance in the form of a small business grant. Unlike loans, this money does not have to be repaid. In New Hampshire (and the US in general), you can find scholarships offered by nonprofits, corporations, and governments such as those listed below:

Additional resources for small businesses in New Hampshire

Let’s wrap up this article with a few small business resources and support programs that can provide you with free training and workshops, mentoring, consulting, and networking.

With so many loan programs for borrowers in New Hampshire, you’re spoiled for choice! Narrowing down the right loan for your business needs is something you should take seriously. You want a loan from a lender who will be there for you for the duration of your business relationship and will work with you to find the right loan for your needs.

This article was originally written on March 16, 2022.

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