FINANCING A SMALL BUSINESS

Explore the loan and credit options for your new company

As you establish your new business, discover how financing can help you reach your goals. 

Access to capital can be a key element to support your company’s growth

When you’re a small business owner, it’s not uncommon to rely on financing to help you establish your business and reach your goals. If you don’t have all the assets you need on your own, financing can benefit the future of your business. 

When financing helps

When a business adds product lines or staff, or wants to spend money on equipment, real estate or other business investments, expenses often increase before new revenue arrives. In these cases, a small-business owner may benefit from financing. 

Types to consider

Term loans offer a lump sum with a fixed term and repayment schedule. Equipment loans provide a fixed loan to purchase needed machinery. A business line of credit is a revolving line of credit with a maximum limit you can borrow. 

Getting your loan

When you apply for a business loan, you generally need good credit, and a solid business plan that includes a complete set of financial projections for the coming years, as well as all related documentation (leases, contracts, etc.). Every situation is unique – have a conversation with a business banking specialist to determine what financing option could be the right fit for you.

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Debt Financing vs. Equity Financing

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Business Line of Credit vs. Business Loan

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SBA Loan vs. Conventional Business Loan

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How to Get a Loan to Start Your Business

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Personal Loan to Start a Business

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Restaurant Business Loans

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Medical Practice Loans

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Farm Business Loans

Resources & Insights

Options for Financing Your Business

Understanding your business’ financial needs can help determine the funding sources that best meet those needs.
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Resources & Insights

How Small Business Owners can Benefit from the SBA

As a small business owner, it’s important to know of the valuable resources the Small Business Administration (SBA) provides to help you both start and grow your business.
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Resources & Insights

Tips for Preparing Your Business Loan Application

Whether you’re looking for a loan or a line of credit, navigating the process may seem complex, but there are some things you can do to make it go more smoothly.
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Resources & Insights

The Importance of Building Business Credit

Explore the advantages—and caveats—of establishing your firm’s credit profile.
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Resources & Insights

Behind the Scenes with Underwriting

Have you ever wondered what happens after you apply for a business loan and it gets sent to Underwriting? Hear directly from Nick Gentile, M&T Bank Regional Manager for Business Banking Credit on what some key items are that are looked for during the underwriting process.
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Top questions, answered by our experts.

There is not a limit to how many times you can apply for a Small Business Administration (SBA) loan. In fact, you can have multiple and concurrent SBA loans to fund various parts of your operation.

SBA loans are backed by the federal government, allowing partnering lenders to absorb more risk in financing businesses that don’t qualify for conventional loans. If the borrower defaults on the loan, the lender is protected by the government’s guarantee. SBA loans give new businesses or those without strong credit histories a fixed- or variable-rate financing option to fund things like startup expenses, inventory, real estate purchases, construction and working capital. There are options for both secured and unsecured SBA loans. M&T Bank is a top 10 national SBA lender and is top ranked in Baltimore, D.C., Philadelphia, Delaware and Buffalo/Rochester.

Are you trying to decide which small business financing option is right for you? Learn more about:

 

 

Both secured and unsecured small business loans are available from M&T Bank. The amount of money you want to borrow, your credit history and your assets will dictate which loan option will be a fit for your business plan.

With non-real estate assets as collateral, you could qualify for a secured term loan of at least $10,000 with fixed or variable interest rates and a flexible term length of up to 10 years. A secured small business loan gives you the advantage of easier qualification, better terms and greater flexibility.

Conversely, you can leverage your strong credit history to get an unsecured loan without putting up any assets. While the loan amounts may be more limited than with a secured loan, an unsecured loan has the advantage of faster underwriting decisions because there is no collateral to appraise.

Are you trying to decide which small business financing option is right for you? Learn more about:

 

Both fixed- and variable-rate small business loans are available from M&T Bank. We offer competitive interest rates on a variety of business lending options, including secured and unsecured installment and term loans, SBA loans, equipment loans, real estate loans and business lines of credit.

A fixed-rate small business loan, for which the interest rate remains the same throughout the term of the loan, allows business owners to set their budget knowing the exact amount due each month. Variable-rate loans, on the other hand, could save you money with a more competitive initial interest rate and if interest rates go down during the term. Your business plan, personal credit history, collateral and other variables will factor into determining what type of loan, interest rate and term length is available to you.

Are you trying to decide which small business financing option is right for you? Learn more about:

If you personally guarantee your debt, which is common with startup financing for sole proprietors and partnerships, your repayment of your loan will have a direct impact on your personal credit. If your business is structured as a corporation, your personal credit is protected and kept separate from the business’s credit.

If you have enough business assets to serve as sufficient collateral on a secured loan, you may be able to limit your personal credit exposure. For unsecured loans and SBA loans, most lenders will require a personal guarantee.

Remember, having your personal credit tied to your business loan can be a good thing. While it’s true that late payments or defaulting on your loan will hurt your credit score, if you pay off your debt on time, you’ll enhance your credit and bolster your ability to borrow more money in the future. You can also deduct the loan interest that you pay from your taxable income. 

Are you trying to decide which small business financing option is right for you? Learn more about:

Learning Modules

BANKING FOR ENTREPRENEURS

How to Use Business Credit

Learn about the different types of credit that can help support your business operations. 

BANKING FOR ENTREPRENEURS

How Businesses Obtain Credit

Learn what’s needed to obtain credit, so that you’re better prepared when you’re ready to apply.

BANKING FOR ENTREPRENEURS

Financial Wellbeing for Entrepreneurs

Learn more about the financial basics of entrepreneurship.