New Bedford Economic Development Council and Commercial bank loans don’t require entrepreneurs to turn over equity or company control. In general, banks prefer to make loans of more than $10,000 for those with a banking history and the NBEDC can be more flexible with start-up ventures. The NBEDC and banks like to see:
- Good credit
- A solid business plan
- Ability to repay the loan
Line of Credit is an arrangement in which a bank extends a specified amount of credit to a specified borrower for a specified time period. A line of credit is best suited to help cover expenses that tend to fluctuate throughout the course of a year.
Home equity loans are a cost-effective alternative to other types of loans because they offer good interest rates available. But you may not want to risk your family home to launch your business venture.
Equipment lease financing gives you access to many types of equipment — computers, copiers, fax machines, cars and trucks — without tying up your cash or credit lines. Although it doesn’t bring in cash, leasing reduces the amount of cash you otherwise have to raise to start.
Cash advances from credit cards are an easy and quick way to gain access to cash. But as a long-term financing method, they can be expensive — credit card interest rates typically run much more than you would likely pay on a bank loan.
Factoring allows a company to “sell” its accounts receivables to an outside company at a discounted rate. This allows the company to receive funds immediately to fund operations and ease cash flow. Factoring is done by private companies.
The SBA provides a summary of their loan products.
NBEDC Lending Program
The New Bedford Economic Development Council has a portfolio of lending products to assist your business needs. Our financing programs include but are not limited to: Entrepreneurial Loan Fund, Fishing Assistance Loan Fund, and a Community Loan Fund. Additionally, we are a Micro-Loan lender for the U.S. Small Business Administration.
Our Senior Loan officer can tell you which loans would be best for you and can guide you through the application process.
Once you’ve determined that an SBA or traditional bank loan is the right kind of financing for your business, you’ll need to package your financial information in a way that makes it easy for a banker to make a favorable decision. At the most basic level, you will need to provide:
- Basic information about your business
- Basic information about the loan you are requesting
- Financial information about your business
We highly recommend that you work with one of our network Resource Partners who are skilled in helping business owners prepare themselves to approach funding sources. Simply search for financing assistance in the Resource Navigator to find the right organization near you.
Statewide Loan Funds
- MassDevelopment, the state’s finance and development agency, works with businesses, nonprofits, banks, and communities to stimulate economic growth.
- Massachusetts Growth Capital Corporation (MGCC) functions as a one-stop resource for debt financing for small businesses.
- South Eastern Economic Development (SEED) is a lender and business assistance provider to all entrepreneurs with their start-up, small and micro businesses in the region.