Utah is situated in the heart of the western United States. Widely known for having an arid climate and wide expanses of natural areas, it also provides its many residents with tremendous opportunities for financial prosperity. The U.S. Census Bureau states that more than three million people reside in Utah, and the state has enjoyed a ten percent population growth rate over the last five years. While it is one of the least densely populated states in the country, it ranks second in terms of population growth. Its economy is strongly diversified in areas such as mining, information technology, education, government, communications, transportation and more. Utah ranks first in the country in terms of entrepreneurial activity. Small business loans are a popular way for local small business owners to obtain funding needed for growth, and you may be wondering if this is the right funding solution for your current needs.
How Can You Use Small Business Loan Funds?
Small business loans in Utah are highly common, and there are approximately 57 loans issued for every 100,000 residents. Loan amounts may be as high as several hundred thousand dollars in some cases, and this means that you may be able to achieve most or all of the growth plans you have in mind through this source of funding. Small business loan funds have been strategically used by others for various purposes. This includes enhancing advertising and marketing campaigns, expanding into new markets, bringing new products and services online, hiring new skilled workers, investing in new machines to improve productivity and more. With these and other great options available for the use of funds, you can see that your vision of growth can become a reality when you apply for a small business loan.
Exploring Small Business Loans in Utah
While small business loans in Utah are popular, loan terms can vary substantially from lender to lender. Exploring loan terms available is a great way to learn more about the affordability of this source of funding. Many financial institutions in Utah make small business loans to their customers, but there are a few top lenders that make the majority of the loans. These include American Express Bank, The Pitney Bowes Bank, WEX Bank, Transportation Alliance Bank, Wells Fargo Bank Northwest, GE Capital Retail Bank and others. When you are borrowing hundreds of thousands of dollars, a difference in the interest rate of even a quarter-percent or less can result in substantial savings over time. With this in mind, it is important for all potential loan applicants to thoroughly shop around for the best rates and terms available.
How Much Money Do You Need to Borrow?
Some of the first questions a small business lender will ask you when you are applying for a loan related to the requested loan amount and the specific use of funds. In addition, during the loan process, the lender will need to review a fully updated business plan that outlines the detailed use of funds. Therefore, before you apply for a loan, spend time revising your business plan to reflect your growth project. Each stage in the project should be fully detailed, and it should also be analyzed for cost. Savvy entrepreneurs will take the time to shop around for quotes for various stages of the growth project so that they can shore up costs included in their estimate. The more accurate your business plan is, the more likely you are to proceed with your growth project without delay. In addition, use your final loan amount figure to calculate an estimated monthly payment. The monthly loan payment should be incorporated into your future financial statement to ensure its affordability.
Preparing for the Loan Process
Once you have finalized these preparatory steps, you may be ready to proceed with the loan process. The small business loan process in Utah may take several weeks or longer to complete, and a large portion of the timing lies in your ability to provide required documentation in a timely manner. With this in mind, it may be wise to gather together required documentation before the loan process begins. Each lender will require unique items for the loan process, but most will require personal and business tax returns and bank statements, operating statements for the business, your business plan and information about the collateral you are pledging, if any.
While the economic climate in Utah may be ideal for small business growth, this is often not enough. Funding is necessary to promote growth as well, and you can easily apply for a small business loan to obtain the funds needed for your business. Take time to analyze your financial needs and growth plans as well as to research loan rates and terms. By doing so, you will be able to determine if this is the right funding solution for your business’s needs.