| At a glance — According to the recent Small Business Administration statistics, New Jersey has 908,209 small businesses, accounting for 99.6% of the state's businesses. The state’s small businesses employ more than 1.8 million workers or 49.9% of the private workforce. According to the Small Business Administration (SBA) New Jersey District office, the 2019 FY lending for small startups topped $805 million. Read on to learn about the top funding opportunities in New Jersey for small businesses. |
Top 6 New Jersey Small Business Loan Options
Do you have a startup in mind that needs funding to get started? Or do you have an existing startup that needs funding in order to expand? There are several local fund options you can apply for in New Jersey. The state’s small loan option comes mainly from nonprofit organizations, government agencies, online lenders, and more.
Here are a few companies that offer tailored lending packages to startups in the state.
1. Advance Point Capital
Advance Point Capital is one of the top local lending institutions for small businesses in New Jersey. Since the institution’s inception, they’ve been known to provide adequate funding to help improve startups. The lending institution understands that the needs and purposes of each startup are unique. Due to this, they offer several varieties of funding options for small businesses, in the form of alternative business loans.
While traditional fundings such as bank loans are usually difficult for small businesses to get, Advance Capital has many options for you. When you are ready to apply for a loan, their finance expert will discuss your goals and needs with you, and will provide you with the options that best suit your business requirements.
The most common types of loans include:
- Business term loan: Its limit is between $10,000 and $1,000,000,
- A business line of credit: The business line of credit offers a loan amount between $10,000 and $1,000,000.
- Short-term business loan
- Small business loan: The lending institution also offers small business loans between $10,000 to $1,000,000.
2. Funding Pilot
Funding Pilot is another top lending institution that you can consider when you need a startup loan. Regardless of your business type or credit score, the institution has loan programs that will cater to your needs. The Funding Pilot loan application process is fast and flexible. Additionally, the lending institution offers benefits such as low interest rates and monthly payments. The different startup loan options available include:
Unsecured Loan
An unsecured loan is the most popular lending program at Funding Pilot. An unsecured loan is a type of startup funding that offers startup owners access to capital with great flexibility relating to time in business, credit score, industry type, quick access to funds, and more. You can opt-in for an unsecured loan if you need funding to:
- Acquire new contracts
- Get working capital
- Develop a new service or product
- Pay off existing debt
- Purchase new real estate
- Hire new employees, and any more
Secured Loan
Secured small business loans offer unique funding opportunities for startup owners. Unlike other commercial lending options, it can be funded with no income documentation, low credit score rate, no minimum time in business, and more. Additionally, it comes with other benefits like a low interest rate of at least 4.25% and a repayment duration of up to 30 years.
As a small business owner, you can use this funding option for:
- Funding a new startup
- Purchasing existing startups
- Working capital
- Business expansion
- Purchasing an investment property
Business Line of Credit
Funding Pilots offer a wide range of funding options for businesses seeking a business line of credit. Each business line of credit has its benefits so that you can choose based on your needs. The types of line of credit available at Funding Pilot include: startup business line of credit, startup business credit card, no docs business line of credit, and more.
3. The Capital Lenders
The Capital Lenders are a private lending institution that offers creative funding for businesses. If you need working capital, project financing, franchise funding, lines of credit, or any other loan type, this lending institution is an option to consider.
The Capital Lenders will help you find the best financing options for you. The institution offers funds of up to $5,000,000 with repayment terms of over 25 years, and they specialize in franchise financing. The funding timeline is 48 hours. If you’re unsure how you can benefit from the institution’s services, they offer a free analysis of your startup needs.
4. Ready Capital Lending
Ready Capital is a non-bank small business and real estate lender that has provided more than $3 billion in capital nationwide. The institution offers secured and unsecured loans for small businesses in NJ. The institution provides funds between $350,000 and $5 million with competitive interest rates and flexible payment plans.
Its loans have benefits like longer terms, flexibility, lower down payment, and other financing benefits to improve your cash flow as you start or expand your startup.
5. Lakeland Bank
Lakeland Bank came into existence in 1956, and it’s owned by three local businessmen who recognized the need for a local bank that can serve the community conveniently. Lakeland Bank is a subsidiary of Lakeland Bancorp, Inc., and it has over $7.6 million in assets. The bank has extensive and commercial lending centers throughout the state. The lending institution offers various funding opportunities for startup owners.
Whether you need funds for long-term capital investments or working capital to grow, Lakeland Bank has what you need to take your business to the next level. They offer term loans and small business lines of credit. Term loans are credit lines from $5,000 to $500,000 at a fixed rate and payable over 1 to 15 years. It also offers funding from $10,000 to $500,000 on a revolving credit basis.
Summary of New Jersey Small Business Loans
Financial Institution | Amount of Loan | Interest rates | Requirements |
Advance Point Capital | Based on the kind of funding you’re applying for. For instance, small business loans offer between $10,000 and $500,000. SBA loans offer between $30,000 and $5 million | Based on the kind of funding you’re applying for. For instance, small business loans have an interest rate of at least 7.99%. SBA loan interest rates range from 4.75 to 8.99% | A one-page application A bank statement is needed for review All credit types are considered |
Funding Pilot | It’s based on the kind of funding you’re applying for:
| The rate depends on the loan you’re applying for: Real estate loans: rates start at 4.5$ APR Business loan: rates start at 5.49% APR. Lines of credit loan: rate start at 7.99% APR | It’s based on the kind of funding you’re applying for:
|
The Capital Lenders | Up to $5,000,000 | The rate is based on the kind of loan you’re applying for. | You’ll be required to fill a form and submit it on the site. And one of their loan experts will get across to you. |
Ready Capital Lending | $350,000 up to $ million | Up to $25,000:
$25,000 to $50,000:
$50,000 or more:
| The lender doesn’t provide the borrower requirement for its loans directly on its website but stated that the Debt Service Coverage Ratio (DSCR) is 1.15 to 1.30 |
Lakeland Bank | Term loans: $5,000 to $500,000 Small line of credit: $10,000 to $500,000 | The rate depends on the loan you’re applying for | The company must have been running for at least two years |
