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North Carolina is a state that holds significant appeal for its residents, with its growing and diverse economy, scenic beauty, diverse geography and wonderful recreation opportunities. The U.S. Census Bureau indicates that more than 10.1 million residents currently reside in this state, and its population has increased by more than six percent over the least five years. With this incredible population growth and the strong economic conditions in the state, it is understandable why entrepreneurial activities are popular in North Carolina. You may be one of the many small business owners in this state who have successfully launched a business, and you may now have incredible plans to grow and further develop your project. However, capital is a necessity for most types of business growth, and you may currently be turning your attention to small business loans as a funding source for your expansion needs.

Learning How to Use Small Business Loan Funds

While most small business lenders will not dictate how you can use loan funds, most will need to see a detailed plan before issuing loan approval. With this in mind, you may want to brainstorm all of the possibilities for your use of funds. Keep in mind that many small business loans may be several hundred thousand dollars, providing you with significant capital for most needs. A small business loan can be used for hiring new skilled workers to better serve your customers, purchasing new equipment for your facility, investing in new vehicles, updating your marketing scheme, opening a new branch and more. After you have learned more about how to use small business loans to effect growth, you may be wondering what the estimated loan terms available are.

Exploring North Carolina Small Business Loans

As you might imagine, small business loans are available from almost all banks and credit unions serving the state, and this provides you with an exceptional selection of loan choices. You may wish to start your research with some of the top lenders in the state. The North Carolina small business lenders who make the majority of these loans to local business owners include First Bank, Yadkin Bank, The Fidelity Bank, The Union Bank and Trust Company, First Citizens Bank and Trust Company and others. Many financial institutions publish business loan rates and terms online, making it easy to shop around for a great program. However, published rates are generally provided to the most qualified applicants. Most people may find that their rates and terms are slightly less favorable than what is advertised.

Planning Your Business Growth

When you contact a small business lender in North Carolina, you will quickly be asked about your desired loan amount and how you plan to use the funds. With this in mind, it is important to make this determination before you begin shopping for a loan. Updating your business plan is a great way to develop your growth plan. This requires you to think through all aspects of growth and to research the costs associated with each stage of growth. This can help you to confirm your financial need. Once you have a desired loan amount in mind, take the next step to ensure that your loan amount is affordable. Online loan calculators can be used to generate an estimated monthly payment. Revise your future income and expense with the new expense of the loan payment. This will help you to determine before you speak with a lender if your loan request is reasonable and affordable.

Getting Ready for the Loan Application

As soon as you begin getting loan quotes from small business lenders in North Carolina, you may turn your attention toward gathering required documentation. Each small business lender has their own unique underwriting process, but most will require similar documentation. It can take some time and effort to pull together all of the required documentation, so you may consider getting the process started soon. A few of the common items required by most lenders include personal and business bank statements, personal and business tax returns, current and future operating statements for the business, a current business plan and more. Many small business loans also require collateral, and you may consider thinking about which assets you can pledge as collateral. Keep in mind that the value of your collateral may be confirmed through an appraisal.

Small businesses can easily become stagnant without an infusion of extra capital. You may have grand dreams in mind for the growth of your small business, but funding may be getting the way. As you can see, you may have access to a considerable amount of capital through a small business loan. You can begin exploring the loan options and developing your plan for the use of funds today as a first step.