Omahans are entrepreneurs, and almost all entrepreneurs need funding at some point. If you’re starting or growing a business, a business loan helps you purchase equipment and inventory, expand your offices or increase your marketing budget. Our partners at ConsumerAffairs researched the best business loans in Omaha to help your company succeed.
Warren Buffett and 10 Fortune 1000 companies call Omaha home, but it’s also a place where small businesses thrive. According to the U.S. Small Business Administration, small businesses employ nearly half of the Nebraska workforce. The city is known as the Midwestern mecca for tech and is a startup hub for all industries.
Business loans are useful for companies at any stage of growth. Small businesses can use them to expand operations and reach more customers. Start-up companies, which are increasing in Omaha’s growing tech sector, can use the funds for operating costs while building their product or service.
Types of business loans in Omaha
The loan that’s right for your Omaha business depends on the amount, your financial projections and the purpose of the loan. The most common business loans are:
The most common type of business loan, where money is borrowed and paid back on a set schedule. These can be short-term or long-term loans.
Business lines of credit
Similar to credit cards, these loans allow you to access funding up to a specified amount. Interest only accrues on the amount used.
Real estate loans
Allow you to buy or lease property for your company.
Real estate being purchased
10% - 30%
Small loans, usually $50,000 or less, for startups, newer businesses and companies in disadvantaged communities.
Used to buy equipment for your business.
0% - 20%
A loan that uses unpaid invoices to get a cash advance.
Business’s outstanding invoices
Merchant cash advances
An upfront lump sum of cash that is paid back from a percentage of debt and credit card transactions.
Small Business Administration loans
A loan offered by third-party lenders that is secured by the U.S. Small Business Administration. These are generally long-term loans with a rigorous application process.
Applying for a business loan in Omaha
The application process for business loans in Omaha will vary by lender. Traditional lenders may put more weight on your credit history and revenue, while alternative lenders might focus on your business plan and viability. Regardless of where you apply, documents you are likely to need include:
Tax returns for your business
Income statements and balance sheets
Budgets or financial projections
Articles of incorporation, business licenses and a business plan
Many online lending brokers will also have business consultants who can help you create a business plan and gather the necessary information to apply for loans. The Omaha Small Business Network also has consulting services and other resources for startups and small businesses.
Business loan fees in Omaha
When comparing loans, make sure you have a clear understanding of all fees and costs in the contract. Many lenders charge several fees in addition to interest on a loan. The major types of fees associated with business loans include:
Origination fees cover the cost of processing the loan.
Prepayment penalties are sometimes incurred for paying off the balance of your loan before the completion of the agreed term.
Referral fees are charged by loan brokers for referring you to a lender.
Packaging fees cover the cost of preparing a loan application to a lender.
Some fees are taken out of the amount of funding you receive from the loan, so ask for loan amount large enough for its intended purpose after paying all fees.
Seek Business Capital
Seek Business Capital is a business investment firm that specializes in funding for startups and small business owners. The company approves more than 92 percent of its loan applications and provides loans ranging from $5,000 to $500,000. Omaha reviewers say they appreciate the company’s personal approach and set of online tools.
Imperial Advance has secured more than $150 million in funding for more than 50,000 business owners since 2010. The company is an online loan marketplace that focuses on providing small businesses with a variety of financing options. Omaha customers appreciate the staff’s responsiveness and the company’s easy application process.
National Business Capital
National Business Capital is a New York-based business financier that provides term loans, equipment financing and lines of credit for small businesses. National Business Capital often works with Omaha business owners who have difficulty qualifying for loans because of poor credit. Reviewers from Omaha say the customer service staff is friendly and helpful.
Mutual of Omaha
Mutual of Omaha Bank is a local Fortune 500 banking and insurance company with more than 110 years of experience. The bank has 24/7 online business banking and offers business lines of credit, SBA loans, term loans and commercial real estate loans. Omaha customers give Mutual of Omaha positive reviews for its excellent customer service.
Core Bank is a locally owned bank that offers business banking products and expertise. Core Bank is one of Omaha’s leading lenders for short- and long-term business loans. The bank also provides commercial real estate loans, SBA loans and lines of credit. Omaha customers say the helpful staff takes the time to understand your needs.