Situated in the scenic Appalachian Mountains in the eastern region of the United States, West Virginia offers its residents a laid-back living experience with access to a wide range of job opportunities. West Virginia has a strong economic base in logging and mining that dates back for centuries. In addition, today’s economy is more diverse, and it also includes tourism, green energy, manufacturing, retail and more. West Virginia is home to approximately 1.84 million residents, based on U.S. Census Bureau data. The population has decreased slightly over the last few years, and this may be related to the economic recession. However, Morgantown was rated as one of the top ten cities to open a small business in the United States in a recent issue of Forbes magazine. This indicates the incredible opportunities available to entrepreneurs in the state. If you are a small business owner in West Virginia, you may be scouring the Internet in search of capital sources for your business. A small business loan is a wonderful source of capital available to many entrepreneurs, and a closer look will tell you if this is the right option for your current needs.
How You Can Use a West Virginia Small Business Loan
Many entrepreneurs are surprised to learn how much capital they can obtain through a small business loan. The typical loan amount in West Virginia may range from tens of thousands to hundreds of thousands of dollars, and you can easily imagine all of the incredible possibilities for growth for your small business with a loan amount of this magnitude. Other small business owners have used their loan proceeds in strategic and well-planned ways. In fact, most lenders will need to see a detailed plan for your use of funds before approving your loan request. Other business plans have included opening a new branch location to expand into new markets, hiring more workers, purchasing better equipment and machines, increasing inventory, launching new products, increasing marketing efforts and more. Most business plans will include multiple uses of funds.
What Are Estimated Loan Terms in West Virginia?
The projected loan terms for a small business loan will vary based on numerous factors, including the financial strength of your business, your business and personal credit scores, how you plan to use the funds and more. You can research advertised rates and terms for small business loans in this state to give you a rough idea of the terms you may be approved for. However, bear in mind that advertised rates are usually only available for the most qualified borrowers. A few of the top West Virginia business lenders include Main Street Bank Corp., Calhoun County Bank, The First State Bank, First Sentry Bank, The Bank of Monroe Clear Mountain Bank, Williamstown Bank and others. Many of these and other business lenders publish interest rates and loan terms online, making it easy for you to compare estimated rates and terms. This preliminary information can be used to help you to determine if a small business loan is an affordable solution for you to pursue.
Is a Small Business Loan Affordable?
A small business loan payment may remain on your budget for many years, so you understandably need to determine if it is affordable for your budget. In order to accomplish this, you must carefully research your desired loan amount. This begins when you develop a plan for the use of funds. List step-by-step plans, and research the costs associated with each step in the process. This effort will tell you how much money you need to accomplish your plans for business growth, but you will need to take the additional step of determining if you can afford a loan of that size. Use an online loan payment calculator to estimate your monthly payment. Review your budget with this loan amount in place to determine if you can afford to make this payment for the entire term of the loan. There may be instances when the desired loan amount is unaffordable. You may need to adjust your loan amount lower and revise your growth plan accordingly. Another idea is to request a loan amount that is affordable and to seek alternative sources of funding to obtain the full amount of money needed. For example, crowdfunding could be used in conjunction with a small business loan.
Applying for a small business loan in West Virginia is not something to rush into. You should carefully define your growth plans and research loan options available to ensure that this is a funding solution that will meet all of your current financial needs. With many lenders available to turn to for a small business loan, you have a great opportunity to find competitive loan terms for your small business loan in West Virginia.