Best Small Business Loans in Washington | Your Gateway to Success


Steve Bennett
Steve Bennett
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The Best Washington Small Business Loans

Best Small Business Loans in Washington: If you’re looking to start an LLC in Washington, you’ll probably need some financial assistance to get your business up and running. That’s where small business loans come in. With various lenders and loan options available, it can be overwhelming to determine the best fit for your LLC.

In this article, Webinarcare Editorial Team will explore some of the Best Small Business Loans in Washington to help you make an informed decision and get your business off the ground. Whether you need funds to purchase equipment, hire staff, or cover operating expenses, these loans provide the financial support you need to succeed in your LLC.

What is a Small Business Loan in Washington?

Small business loans in Washington are an essential resource for entrepreneurs looking to start or grow their businesses. Various lenders offer loans tailored to small businesses, including banks, credit unions, and online lenders. Many of these loans are backed by the Small Business Administration (SBA), making them easier to obtain for businesses that might not qualify for traditional bank loans. SBA loans typically have lower interest rates, longer repayment terms, and higher borrowing limits than other small business loans.

If you would like to start a business in Washington, applying for a loan is a great option for your business.

Types of Small Business Loans

Loan terms, interest rates, and qualifications vary by lender, but here are the features you can expect to find with the different types of small-business loans in Washington.

Traditional Bank Loans

One of the most common funding sources for small businesses is traditional bank loans. Many banks and credit unions in Washington offer small business loans with competitive interest rates and terms. These loans can be used for various purposes, such as purchasing equipment, inventory, real estate, or working capital needs.

  • Loan amounts: $10,000 to $1 million.
  • Approximate APR range: 4.90% to 9.83%.
  • Ideal for: Working money and business expansion.

Small Business Administration (SBA) Loans

The U.S. Small Business Administration (SBA) is a federal agency that provides support and resources to small businesses. One of the SBA’s primary functions is guaranteeing loans from banks and other lending institutions to small businesses. This guarantee reduces the risk for lenders and encourages them to provide loans to small businesses that might not otherwise qualify for financing.

sba

Many participating lenders, including banks, credit unions, and other financial organizations, offer SBA loans throughout Washington. SBA loans are available in various formats, including the well-known 7(a) loan program, which can be used for several things, including purchasing goods, real estate, or equipment.

  • Loan amounts: $30,000 to $5 million.
  • Approximate APR range: 10.25% to 12.75%.
  • Ideal for: Significant one-time and long-term investments, buying property or equipment, taking over an existing company, and debt restructuring.

Business Term Loan

Internet lenders in Washington currently provide up to $500,000 term loans. While the normal payback duration for a short-term loan is three to 18 months, in rare situations, the repayment period for a long-term loan might go up to ten years or longer. Washington company owners can also receive funding for specialized products like inventory or equipment.

  • Loan amounts: Up to $500,000.
  • Approximate APR range: 6% to 99%.
  • Ideal for: Substantial one-time investments

The Business Line of Credit

Access to flexible funds is made possible via a business line of credit. Washington lenders provide you access to a certain amount of credit (let’s say $100,000), similar to a credit card, but you only pay something or accrue interest once you use the money.

  • Credit line range: $1,000 to $250,000.
  • Approximate APR range: 10% to 99%.
  • Ideal for: Controlling financial flow, dealing with unforeseen costs, and funding momentary business requirements.

Equipment Financing

Asset-based finance, known as “equipment financing,” uses the actual equipment as security for the loan. Depending on the lender and your company’s criteria, you can obtain an equipment loan for up to 100% of the cost of the equipment you want to buy. You will then have to repay the loan over time with interest.

  • Loan amounts: Up to 100% of the value of the equipment, plus soft costs.
  • Approximate APR range: 4% to 30%.
  • Ideal for: Purchasing tools and machines.

The Best Small Business Loan Providers in Washington

Here are the top 5 small business loan providers in Washington that will help you with your business.

1. Bluevine

bluevine

As a leading bank in Washington, Bluevine offers a variety of small business loan options, including traditional term loans, lines of credit, and SBA loans. With competitive interest rates and dedicated support for small business customers, Bluevine is an excellent option for entrepreneurs seeking financing in Washington.

bluevine

Pros 👍

  • No setup, upkeep, upfront, or closing costs.
  • Accepts applicants with as little as a six-month business history
  • Accepts mediocre credit ratings (from the upper 500s to the mid-600s, depending on the credit-scoring model)

Cons 👎

  • Same-day bank wire transactions include a $15 cost.

To qualify for a Bluevine line of credit, your business must be an LLC or Washington S-corporation that has been in operation for at least 24 months (issued by Celtic Bank, a Utah-based financial institution). A credit score of at least 625 and a minimum monthly income of $40,000 are also required. To learn more about Bluvine, click the button to apply for their loans.

2. OnDeck

ondeck

As a member-owned, not-for-profit financial institution, OnDeck supports small businesses in Washington. They offer competitive rates on small business loans and lines of credit and provide personalized assistance throughout the application process.

OnDeck rewards its clients’ fidelity and thrift with prepayment and loyalty perks. If you sign a new contract, get a new loan, or pay off your current loan early, the company will waive its remaining interest.

ondeck

Pros 👍

  • Same-day funding without fees in several states
  • No draw, opening, closure, or prepayment costs
  • Rewards for staying loyal when you request a new loan and pay off 50% of your current one.

Cons 👎

  • Only accessible in specific jurisdictions and for loans up to $100,000, same-day funding
  • Needs a personal guarantee and a company lien.

To qualify for a short-term loan with OnDeck, you must have a minimum FICO score of 625, at least $100,000 in annual revenue, and have been in business for at least one year — a longer period of time than other lenders require. However, the company claims that its average customer has been in business for over three years, has an annual revenue of $300,000, and has a credit score of 650 or higher. You may want to explore Ondeck loans by clicking the button below.

3. Fundbox

fundbox

Fundbox provides short-term loans, lines of credit, and merchant cash advances to small businesses in Washington. Their flexible requirements and fast approval process make them attractive for businesses needing quick capital access or less-than-perfect credit.

Fundbox Insights forecasts cash flow for qualifying businesses based on transaction history. This feature forecasts future revenue and alerts when cash flow falls below a predefined threshold.

fundbox

Pros 👍

  • A three-day grace period on payments made on a line of credit
  • There are no prepayment penalties or origination fees.
  • There are no inactivity fees for credit lines.

Cons 👎

  • Cash Flow Insights are in beta and unavailable to all businesses.
  • Charges a draw fee for credit lines
  • Funds will be available in two business days.

To be eligible for a loan or line of credit from Fundbox, your Washington company must have used a compatible business bank account for at least three months before applying. You must also have been in business for at least six months, have a credit score of at least 600, and have annual revenue of at least $100,000. To learn more about Fundbox, click the button to apply for their loans.

4. Biz2credit

bizcredit

Biz2credit is an online business loan marketplace known for its BizAnalyzer tool. This tool gives business owners a scorecard based on their creditworthiness and financial health, personalized feedback, and financial recommendations.

biz2credit

Pros 👍

  • Connects small businesses with bank and non-bank financing options.
  • There are no application fees.
  • Loan programs tailored to women, veterans, and minorities

Cons 👎

  • Most bank financing products have an origination or closing fee.
  • Charges an underwriting fee for the majority of non-bank financing products.

To qualify for a working capital loan through Biz2credit, you must have a minimum credit score of 575, be at least six months old, and have a minimum annual revenue of $250,000. For term loans, you’ll need the same minimum revenue but a credit score of at least 660 and at least 18 months in business. You may want to explore Biz2credit loans by clicking the button below.

5. Lendio

lendio

Lendio is one of the few marketplaces that provide startup loans with competitive interest rates and terms of up to 25 years.

lendio

Pros 👍

  • Loans for startups of up to $750,000
  • Compare more than 75 banks and online lenders.
  • Up to $2 million for merchant cash advances and term loans
  • Up to $5 million in other loan types and for company acquisitions

Cons 👎

  • Prepayment fees vary depending on the lender.
  • Several documents, including three months’ worth of business bank statements, are needed for the online application.

Lendio provides a wide selection of loan choices as a marketplace. The most important of these are startup loans, which not all lenders provide but are essential for starting a new company from scratch. Lendio offers startup loans of up to $750,000, durations of up to 25 years, and interest rates ranging from 0% to 17%. To learn more about Lendio, click the button to apply for their loans.

Webinarcare Editorial Team selects these Small Business Loans through thorough research and market study. You must cross-check all the factors before choosing the right one for your Washington business.

Tips for Applying for a Small Business Loan in Washington

Research Your Options: Before applying for a small business loan, it’s essential to research the various types of loans available and determine which one is best suited for your business’s needs. Consider interest rates, loan terms, and eligibility requirements when comparing loan options. It is a great idea to do research, especially if you have Agricultural Products, Electric Car Charging Stations, Information Technology Services, Ridesharing, or even Commercial Fishing. It will benefit your business if you dig into stuff first. 

Prepare Your Financial Documents: Lenders will want to see various financial documents, such as bank statements, tax returns, and financial statements, to evaluate your business’s ability to repay the loan. Be prepared to provide these documents as part of your loan application.

Develop a Strong Business Plan: A well-prepared business plan can help demonstrate to lenders that your business has a clear path to success and a plan for using the loan proceeds effectively. Include detailed financial projections and thorough market analysis in your business plan.

Before that, if you are still wondering what business is good for you, you can form an LLC since it has limited liability protection or Washington Corporation.

Build Your Credit: If you have a low credit score or limited credit history, improve your credit before applying for a small business loan. This may include paying down debts, establishing a history of on-time payments, or disputing any inaccuracies on your credit report.

Seek Professional Advice: Navigating the world of small business loans can be complex, and it’s essential to seek advice from professionals who can help guide you through the process. Consider consulting with a business advisor, accountant, or Washington Business Attorney to help you prepare your loan application and ensure that you make the best business decisions. You can also seek advice from your Registered Agent since your Registered Agent does your paperwork and knows much about how to do this kind of business.

However, if you still don’t have a Registered Agent, you can find Washington Registered Agent Services for your business.

How Do Loans For Small Businesses Operate?

With most small-business loans in Washington, you take money from a lender and pay it back over a specified time period along with interest. Depending on the sort of business loan, the lender you’re working with, and your company’s qualifications, the maximum loan amounts, interest rates, and repayment terms may change.

How Much Money Do You Need To Borrow For Your Business?

For business loans and lines of credit, many lenders impose minimum annual revenue requirements ranging from $50,000 to $250,000 in Washington. Consider checking out business credit cards or SBA microloans if your revenue needs to be higher to apply for those loan products. It is still better to consult with Washington CPA for your business.

How Does a Novice Obtain a Company Loan?

To be eligible for a small business loan at a bank, you must have good personal credit, strong business finances, at least one year in business, and in some instances, collateral if you have never received a business loan before. Less demanding criteria apply to online lenders. Consider alternatives like business credit cards if you’re beginning out.

FAQs

What are the eligibility requirements for a small business loan in Washington?
Eligibility requirements may vary depending on the lender, but common requirements include at least two years in business, a certain credit score, and a minimum annual revenue.
How much can I borrow for a small business loan in Washington?
This will depend on the lender and your creditworthiness, but some lenders may offer up to $250,000 or more.
What types of small business loans are available in Washington?
Common small business loans available in Washington include SBA loans, business lines of credit, equipment financing, and invoice financing.
What is the interest rate for a small business loan in Washington?
Interest rates will vary depending on the lender, the type of loan, and your creditworthiness. However, rates can range from single to double digits.
Can I apply for a small business loan online in Washington?
Most lenders provide online application options, which makes it quick and easy to apply for a small business loan in Washington.
How long does it take for a small business loan to be approved in Washington?
The approval and funding process can vary depending on the lender and the type of loan, but it can take as little as a few business days or up to a few weeks.
Can I get a small business loan with bad credit in Washington?
It is still possible to get a small business loan with bad credit in Washington, but it may be difficult and you may have to pay higher interest rates.
Do I need collateral for a small business loan in Washington?
It depends on the lender and the type of loan. Some loans may require collateral, while others do not.
Does my business need to be registered in Washington to qualify for a small business loan?
It is not required for your business to be registered in Washington, but some lenders may require that your business is incorporated and authorized to do business in the state.
Can a startup business get a small business loan in Washington?
Yes, some lenders offer startup business loans in Washington, but you may need good credit and a solid business plan to qualify.
What documents do I need to apply for a small business loan in Washington?
You will generally need financial statements, business tax returns, personal tax returns, and the loan application.
Is there a maximum age limit for a small business owner in Washington to be eligible for a loan?
No, there is no maximum age limit for eligibility.
What does a typical small business loan application process entail for Washington businesses?
The application process typically entails filling out an application and providing documents such as financial statements and tax returns.
What are the fees associated with small business loans in Washington?
Fees will vary among lenders and are specific to each loan, and may include origination fees, maintenance fees, and prepayment penalties.
Can I get a loan to buy an existing business in Washington?
Yes, there are small business loans available that can be used to purchase an existing business in Washington.
What is the turnaround time for receiving small business loan funds in Washington?
Funding times may vary based on the lender and can range from a few days to a few weeks.
Can a non-US citizen apply for a small business loan in Washington?
Yes, a non-US citizen can apply for a small business loan in Washington if they have all the necessary legal documentation required to run a business in the United States.
What industries are eligible for small business loans in Washington?
Most industries are eligible for small business loans in Washington.
Are there grants available for small businesses in Washington?
Yes, there are grants available for small businesses in Washington, but they can be competitive and available only for specific types of businesses.
Can I use a small business loan to pay for personal expenses in Washington?
It is not recommended as the money received in small business loan can only be used for business-related expenses.
Can I refinance a small business loan in Washington?
Yes, you can refinance a small business loan in Washington with additional lenders.
What is the typical repayment period for a small business loan in Washington?
Repayment period can range from a few months to several years depending on the type of small business loan, you choose, and the lender’s terms.
Where can I get assistance in finding the best small business loan options in Washington?
There are several government and non-governmental organizations in Washington, such as SBA and SCORE, that offer free business advice and assistance for finding the best small business loan options.
Can I use a small business loan to buy inventory in Washington?
Yes, you can use a small business loan to purchase inventory in Washington.
What happens if I default on a small business loan in Washington?
If you default on a small business loan in Washington, the lender may assess penalties, send your loan to collections, or take legal action.
Is crowdfunding a viable option for getting a small business loan in Washington?
Yes, some companies offer crowdfunding loans, where investors contribute capital to fund a small business’s loan.
Can I get a small business loan to start a home-based business in Washington?
Yes, you can get a small business loan, but it might be difficult due to you not possessing any collateral or credit infrastructure.
How will I determine if my small business in Washington is likely to qualify for a small business loan?
Evaluate the eligibility criteria offered by the lender and see if you meet the standard eligibility to determine if you can proceed with applying for a Washington small business loan with the lender.
What is the best small business loan option for companies in Washington?
That depends on your specific business needs and financial profile, but there are many lenders and loan programs designed specifically for small businesses in Washington.
Are there any special small business loans in Washington available to minority business owners?
Yes, there are several loan programs and grants available specifically to minority- and women-owned businesses in Washington, such as those offered by the Washington State Department of Commerce and the Minority Business Development Agency.
How do I apply for a small business loan in Washington?
The application process will vary depending on the lender and loan program you choose. Generally speaking, you’ll likely need to provide financial documentation, a business plan, and other information about your company and its history.
What are the interest rates for small business loans in Washington?
Interest rates for small business loans in Washington vary depending on the lender and loan program. SBA loans, for example, typically have rates adapted to market conditions.
What kind of collateral do I need to provide for a small business loan in Washington?
The collateral required for a small business loan in Washington will depend on the lender and the nature of your loan. Some loans are secured with property or equipment, while others may require a personal guarantee.
How long does it take to get approved for a small business loan in Washington?
The timeline for approval of a small business loan in Washington will depend on several factors, including the lender, your financial health, and the amount you’re requesting.
Can I get a small business loan in Washington with bad credit?
It may be more difficult to get a small business loan in Washington with bad credit, but there are still lenders and loan programs that specialize in working with small businesses and entrepreneurs who have less-than-perfect credit scores.
Can non-citizens qualify for small business loans in Washington?
Yes, non-citizens can typically apply for small business loans in Washington as long as they meet other lending criteria and have legal residency status.
Is there a maximum amount I can borrow for a small business loan in Washington?
The maximum amount you can borrow for a small business loan in Washington will depend on the loan program and lender you choose, as well as your financial qualifications and needs.
What is the repayment period for small business loans in Washington?
Repayment periods for small business loans in Washington also vary depending on the lender and loan program. SBA loans often have longer repayment periods, while lender-specific loans may have shorter terms.
Does Washington offer any small business incentives or tax breaks for companies that create new jobs?
Yes, the state of Washington offers a variety of incentives and tax breaks for businesses that create new jobs in certain regions or industries. Some of these include the New Employer Tax Credit, the Rural County Economic Development Program, and Opportunity Zone tax incentives.
Are there any grants available for small businesses in Washington?
Yes, there are several federal, state, and private grants available to help small businesses in Washington cover expenses like equipment, hiring, marketing, and training.
What is the best small business loan for start-ups in Washington?
There are many small business loan options for Washington start-ups, including SBA microloans, local bank loans, equipment financing, and crowdfunding.
Is it hard to get a small business loan in Washington?
It can be hard to get a small business loan in Washington if you have poor credit or lack the necessary collateral or business history. However, there are many loan programs and lenders specifically designed to help small businesses and startups.
Can you get a small business loan without a business plan?
Many lenders will require a business plan as part of the loan application process in Washington. However, some lenders may be willing to forego a formal business plan if you can demonstrate strong financial and operational projections in other ways.
Are there any small business loans available without collateral?
Some lenders specialize in unsecured small business loans in Washington, which do not require collateral in exchange for funding.
What options are available to small business owners in Washington who do not have sufficient financial documentation or business history?
Some lenders may be willing to provide small business loans in Washington with limited documentation or history, but these will often carry higher interest rates or less favorable terms.
What types of fees can I expect to pay when obtaining a small business loan in Washington?
Fees for small business loans in Washington can include origination fees, closing costs, application fees, and loan servicer fees, among others.
Are online lenders a good option for small business loans in Washington?
Online lenders may be a good option for small businesses that need quick access to capital, though they tend to carry higher interest rates than traditional bank loans in Washington.
Can I obtain a small business loan for my home-based business in Washington?
Yes, many lenders offer small business loans to home-based businesses in Washington, as long as you meet other financial and operational qualifications.
Is prepayment penalty typically included with small business loans in Washington?
Prepayment penalties may be included in some Washington small business loans, so it’s important to review your loan agreement carefully before signing.
Can I apply for a small business loan before my company is officially registered in Washington?
Some lenders may be willing to work with you before your company is officially registered, but it may be harder to secure funding without legal documentation.
Can I use a small business loan in Washington to pay for expenses not directly related to my business?
Most small business loans in Washington require that funds be used for business-generating purposes only, though some lenders may allow for more flexible use of the funds.
Can I get a small business loan if my personal credit is bad, but my business credit is good?
Your personal credit will often be taken into account when applying for a small business loan in Washington, but a strong business credit profile may also help you secure funding.
Are there any benefits to working with a credit union for a small business loan in Washington?
Credit unions may offer advantages to some small business borrowers in Washington, including more flexible small business lending requirements and local decision-making power.
Do I have to be a Washington resident to apply for a small business loan in the state?
You don’t have to be a Washington resident to apply for a small business loan in the state, but you may need to provide additional documentation to prove your business’ connection to the state.
What are the qualifications necessary for obtaining a small business loan in Washington?
The qualifications for small business loans in Washington will depend on the lender and specific loan program you choose, but generally require that you have a strong financial profile and a solid operational and/or business plan.

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Conclusion

Finding the best small business loan in Washington can be a critical step in starting or growing your Washington business. By understanding the various types of loans available, meeting the necessary qualifications, and preparing a strong application, you’ll be well on your way to obtaining the funding you need to achieve your business goals. So, research your options, prepare your documents, and take the next step toward making your entrepreneurial dreams a reality in Washington.

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