How to Get a Small Business Loan in Charlotte


There are many reasons why you might need a small business loan in Charlotte. Whether it is for purchasing equipment, covering cash flow shortages, investing in future projects, developing a website, or for advertising and marketing purposes, there are various paths available to you.

Proving Your Income

Whichever type of lending program you go with, you will need to show proof of income to the lender. So, before you apply for a small business loan, make sure your accounts are up-to-date and you have recognized documentation like invoices and paystubs. If you need to quickly make paystubs to prove your income, it is simple to do so with an online paystub creator. In addition to proving your income, you will need to provide other documents such as personal identification. Make sure you know what documentation a lender requires before you start the application process.

Local Lending Programs

There are several local lending programs in Charlotte and Mecklenburg County that you could consider applying for. The City of Charlotte offers small business loan programs, which help existing businesses to enhance their performance and new businesses to get off the ground via financial assistance. Another option is to apply for the Self-Help Ventures Fund, which includes the SBA 504 loan program that can provide up to 90% financing for owner-occupied commercial real estate. Also, Mecklenburg County has launched a small business loan program that can provide funds of up to $75,000 with fixed interest rates to small businesses within the county. One good thing about the latter is the loan has non-standard lending features, including taking into consideration the experience and sophistication of the business owner and helping disadvantaged business owners and veteran-owned businesses.

Federal Programs

You could qualify for a state or federal loan for your business. The United States Small Business Administration assists small business owners with starting up or expanding by helping them to get loans via private banks and financial institutions. There are a number of low-interest programs available to small business owners who have difficulty getting traditional loans.

The Best Traditional Loan Options

If you go down the route of obtaining a business loan with a traditional lender such as a bank or private financial institution, you still have many different options. Carefully consider the following best options to find the right one for you.

Short Term Business Loans

With a short-term small business loan in Charlotte, you typically need to repay it within six to eighteen months. You get an upfront lump sum with a fixed payback amount. That amount is worked out using a factor over a short period of time. So, the rates are not interest and principal. Instead, you pay the factor rate, which is usually more than the costs incurred from other types of loans.

Long-term Business Loans

A long-term small business loan exceeds two years. Small businesses in Charlotte are offered a fixed upfront amount and charged principal and interest. You cannot draw money as you go along with long-term loans, so they are best utilized when you need additional capital for expansion or for financing one-off projects.

Business Lines of Credit

One of the best options for Charlotte small business owners is to obtain a loan in the form of a business line of credit. That enables you to draw funds as and when required. As with most other loan types, you pay principal and interest. Business lines of credit also come with limits that may not be exceeded without the lenders’ approval. Lines of credit in Charlotte are typically affordable and flexible.