The Best Business Loan & Financing Resources For Indiana Small Businesses
In past years, Indiana’s economy has mainly centered around steel production and manufacturing. However, since the 1990s, the state’s economy has become more diverse, expanding into sectors including banking, education, financial services, and information technology. Combined with a growing population — particularly in the Central Indiana region — this has opened up new opportunities for entrepreneurship.
In Indiana and across the nation, more people are leaving their 9-to-5s and setting out on their own entrepreneurial path. Maybe you’ve already taken this step, or perhaps you’re just waiting to take the leap. No matter where you are in your journey, though, one of the most important resources for a small business is capital. In order to operate a successful small business, you have to have access to capital. But a big question plaguing many small business owners and aspiring entrepreneurs is where to find this capital.
If you’re a small business owner in Indiana, this post is for you. In this post, we’ll review small business loans that Indiana entrepreneurs just like you can use for funding startups, paying operational costs, or growing their businesses. Read on to learn more about the financing opportunities and resources available to you.
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Online Business Lenders For Indiana Businesses
As a small business owner, your plate is already loaded down with daily tasks. Managing your business, ordering inventory, hiring and training employees…the list goes on. When you’re in need of capital, finding the time to gather documentation and head over to your local bank may seem impossible. Fortunately, online business lenders have made it easier than ever to get the capital you need for your business.
With an online lender, you can apply for small business financing from your home or office on your computer or smartphone. You can submit documentation, communicate with the lender, and even sign your loan documents without ever stepping foot into a bank or financial institution.
Depending on the financial product you select and the lender you work with, borrower requirements may also be far less stringent. This means that startups, borrowers with personal credit challenges, or businesses with no credit history have options that wouldn’t be available through traditional lenders.
In some cases, you may even be able to complete the entire process from application to funding in as little as 24 hours — a great option for businesses that need cash immediately.
There are thousands of online lenders to choose from, but start your search with the following lenders, which provide financial solutions to small businesses in Indiana.
Unsure of which financial solution is right for your business? Fundera helps you find the best options for your business. With Fundera, you’ll be able to compare lender offers with just one application.
To get started, all you have to do is fill out a quick application. Submitting your application has no impact on your credit score. Once your application has been received, you’ll work one-on-one with a financial specialist to evaluate the financial needs of your business and review lender offers. Your financial specialist will help you select the product that’s the best fit for your business. Best of all, this service is absolutely free.
There is a wide array of financial products available to you through Fundera. This includes:
- Small Business Administration (SBA) Loans:S $5,000 to $5 million
- Lines Of Credit: $10,000 to $1 million+
- Term Loans: $25,000 to $500,000
- Startup Loans: Up to $150,000
- Equipment Financing: Up to 100% of equipment value
- Short-Term Loans: $2,500 to $250,000
- Invoice Financing: Up to 100% of invoice value
- Merchant Cash Advances: $2,500 to $250,000
- Personal Loans For Business: Up to $35,000
Borrower requirements, rates, and terms vary based on the products you qualify to receive. Options such as short-term loans and merchant cash advances are easier to qualify for, but these come with less favorable rates and terms than SBA loans, which are more difficult to receive.
The good news is that your financial specialist will work with you to review the options you qualify for and help you choose the product that’s best for you.
Small Business Administration (SBA) loans are extremely popular with small business owners. This is because you receive low rates and very favorable terms, similar to bank loans. However, because SBA loans are backed by the government, lenders feel more secure in giving them to small business owners. Even if you’ve been turned down for a low-cost bank or credit union loan, you may still qualify for an SBA loan.
One of the drawbacks of SBA loans is the application and approval process. The process can seem overwhelming, especially if you’ve never applied for a loan before. Receiving an SBA loan can also take weeks. In some cases, getting the funds in your bank account may even take months.
Fortunately, there is a solution. SmartBiz simplifies and expedites the SBA loan process. You can prequalify for your loan in as little as 5 minutes. You may also receive your funds in just 7 days.
Through SmartBiz, you can qualify for an SBA working capital and debt refinancing loan. Funds can be used to refinance existing debt, hire employees, purchase equipment or inventory, or expand your business. These loans are available in amounts from $30,000 to $350,000. Interest rates are 8.25% to 9.25% with repayment terms up to 10 years.
To receive this loan, you must meet the following requirements:
- At least 2 years in business
- U.S. citizen or legal permanent resident
- Personal credit score of 640 or above
- Sufficient cash flow
- No bankruptcies or foreclosures within the last 3 years
- No outstanding tax liens
- No past defaults on government-backed loans
If you’re looking to fund a major expansion, consider applying for an SBA 7(a) commercial real estate loan through SmartBiz. These loans provide funding from $500,000 to $5 million. Interest rates are 7% to 8.25% with repayment terms up to 25 years.
Fund from these loans can be used to refinance your commercial real estate mortgage or purchase commercial real estate. Funds can’t be used for new construction or for investment properties.
Borrower requirements for the SBA 7(a) commercial real estate loan are as follows:
- At least 3 years in business
- At least 51% of the property must be owner-occupied
- U.S. citizen or legal resident
- Personal credit score of 675 or above
- Property must have a purchase price of $500,000 or more
- No bankruptcies or foreclosures within the last 3 years
- No outstanding tax liens
- No past defaults on government-backed loans
It’s your loan, so why does the lender get control of setting the rates and terms? Shouldn’t you have control? With LoanBuilder, you can “build” your own loan, creating a financial solution that’s best for your business.
You can apply for $5,000 to $500,000 through LoanBuilder. After filling out a quick questionnaire, you’ll be presented with a financing offer. You can adjust the amount of your loan and the duration to get the most affordable option for your business. Once you’ve customized your loan, you’ll finish the application and submit any required documentation. If approved, you could receive your funds in as little as 24 hours.
Prequalifying for a loan offer has no impact on your credit score. However, personal credit and public records will be assessed if you decide to proceed with a loan offer.
LoanBuilder loans have repayment terms of 13 to 52 weeks. Weekly payments are made toward your principal balance plus the fees charges by the lender. LoanBuilder charges a single fixed fee for its loans. Fees start at just 2.9% of the loan amount. LoanBuilder loans can be used for any business purpose.
To qualify for funding through LoanBuilder, you must have:
- A time in business of at least 9 months
- At least $42,000 in annual revenue
- A personal credit score of 550 or above
- No active bankruptcies
Whether you need a specific amount of money or a more flexible financing option, you can find both with Fundation. Through Fundation, you can apply to receive a term loan or line of credit to fund your business expenses.
Fundation offers term loans up to $500,000 for use on equipment, improvements, or business expansion. Loan terms are up to 4 years with repayments made twice per month. The APR for term loans starts at 7.99%.
If you need cash for working capital or short-term cash flow needs, consider Fundation’s lines of credit. You may qualify for as much as $150,000 with repayment terms up to 18 months. Your balance is repaid once per month. APRs start at 7.99%.
To qualify for Fundation’s financial products, you must have:
- A time in business of at least 12 months
- At least $100,000 in annual revenue
- Personal credit score of 660 or above
- At least 3 full-time employees
If you need a line of credit to cover emergencies, operational costs, or other business expenses, you may qualify for a line of credit through BlueVine. This online lender provides lines of credit up to $250,000.
With a BlueVine line of credit, you can receive funding in just minutes. You’ll only pay for what you borrow, and you’ll have the option to repay the lender through monthly or weekly payments over 6 to 12 months. Rates start at 4.8%.
To qualify, you must meet these requirements:
- At least 6 months in business
- At least $100,000 in annual revenue
- Personal credit score of 600 or above
If unpaid invoices are causing cash flow issues in your business, BlueVine also offers an invoice factoring service. You can receive up to $5 million for your unpaid invoices with rates starting at just 0.25% per week. BlueVine provides up to 90% of your invoice amount upfront. The remaining amount — minus fees ––will be given to you once the invoice is paid.
To qualify for invoice factoring, you must own a B2B business and meet these additional minimum requirements:
- At least 3 months in business
- At least $100,000 in annual revenue
- Personal credit score of 530 or above
Amex Business Loans
If you’re an American Express cardholder, you could qualify for a low-interest, fixed-rate business loan of $3,500 to $50,000. Your loan can be used for any business purpose, and you can receive funding in as little as 3 business days.
Your loan is repaid over terms of 12, 24, or 36 months. Interest rates range from 6.98% to 19.97%.
To qualify for American Express Business Loans, you must be a pre-approved Business Card Member. Additional minimum requirements are:
- At least 18 years old
- U.S. citizen or permanent resident
- Be in good standing with American Express
Funds can’t be used for personal purposes. You also can’t use your Business Loan proceeds to pay off debts to American Express.
Amex Merchant Financing
Business loans aren’t the only type of financing offered through American Express. If your small business accepts American Express cards, you may qualify for a different financial solution: American Express Merchant Financing.
You could receive a business loan of $5,000 to $2 million. Your loan comes with a single fixed fee of 1.75% to 20% of the borrowing amount. If you repay your loan early, you may even receive a rebate of up to 25% of your fee.
Repayment terms are 6, 12, or 24 months. You can have a fixed amount debited from your business bank account each day. If you’d rather have a more flexible option, you can choose to have a percentage of your daily receivables deducted instead. You can use your receivables from American Express or from all credit and debit transactions if you go this route.
To qualify, you must meet these minimum requirements:
- At least $12,000 in annual credit and debit receivables
- At least $50,000 in annual business revenue
- Time in business of at least 24 months
- Must accept American Express
If time in business requirements are holding you back from getting the capital your business needs, consider applying for a personal loan. In most cases, you can use the funds from a personal loan for business purposes. This eliminates time in business, annual revenue, and business credit history requirements.
While you can certainly apply for a personal loan through your bank, online lenders make it quicker and easier than ever to access funding. One online option is Prosper, which has loaned $14 billion to nearly 900,000 borrowers.
With a Prosper loan, you’ll have fixed 3- or 5-year repayment terms. Personal loan APRs range from 6.95% to 35.99%. Loans are available in amounts from $2,000 to $40,000.
Borrowers must meet the following minimum requirements:
- Debt-to-income ratio below 50%
- A source of income
- No bankruptcies within the last 12 months
- Less than 5 credit bureau inquiries within the last 6 months
- At least 3 open trade accounts
Banks, Credit Unions, & Nonprofit Lenders In Indiana
Of course, online business lenders aren’t your only option. You can get the financing you need from a bank, credit union, or nonprofit lender. Find out the options available through your own financial institution, or check out one of the following lenders in the state of Indiana.
1st Source Bank
1st Source Bank was founded in 1863 in South Bend. Since its founding, it has won multiple local awards and has received recognition from Forbes, BauerFinancial, and Bank Director Magazine. This financial institution now operates 80 banking centers located across 18 counties.
Through 1st Source Bank, you can apply for a variety of financing options including:
- Commercial Mortgage Loans: Terms up to 15 years
- Term Loans: Terms up to 10 years
- Business Acquisition Loans: Terms up to 10 years
- SBA Loans
- Lines Of Credit
- Equipment Financing
- Farm Loans
- Business Specialty Financing
You can also sign up for business checking accounts, business and commercial insurance, and retirement plan services. Visit your local branch for more information.
Indiana Members Credit Union
Indiana Members Credit Union has 26 locations to serve residents in Indiana. This member-owned financial institution was first established in 1956 and has since grown to serve over 125,000 members throughout Central Indiana.
IMCU offers business checking, savings, CDs, and health savings accounts. You can also apply for financing, including:
- Commercial Real Estate Loans
- Lines Of Credit
- Equipment & Inventory Financing
- Business Credit Cards
- Construction Loans
All borrowers must be IMCU members. To join the credit union, you must meet one of the following requirements:
- Live or work in an eligible Central Indiana county
- Work for an affiliated employer
- Have a family member that is an IMCU member
Downloadable loan applications are available on the IMCU website. You can complete the loan application and send it with all required documentation to the IMCU Business Services & Lending Department, or you can drop your packet off at your local branch.
Indiana Statewide Certified Development Corporation
The Indiana Statewide Certified Development Corporation has assisted thousands of small businesses in the state in receiving funding through the Small Business Administration’s 504 loan program.
Under this program, you can qualify for financing for fixed asset purchases. This includes commercial real estate, machinery, and equipment. The Indiana Statewide CDC provides up to 40% of your project costs, while up to 50% is provided through a traditional lender. Then, you’re responsible for the remaining 10% of project costs.
SBA 504 loans come with fixed rates over terms of 20 years for real estate or 10 years for equipment.
Small Business Grants In Indiana
If you don’t want to take on debt but need financing for your business, consider exploring small business grants. Small business grants provide the capital you need for your business without the requirement of repaying the funds. Yes, that means no monthly payments, no interest rates or fees, and no debt for your business.
However, scoring a small business grant isn’t as easy as filling out a quick online application, running your credit score, and getting financing. You’ll face a lot of competition to receive a small business grant. The application and approval process can often be quite extensive. You may even have to meet very specific requirements, such as being a veteran-owned business or operating within a certain industry.
In other words, there’s no guarantee that you will receive or even qualify for a small business grant. However, there are a few opportunities available to small business owners in Indiana that may be a fit for your business. Start with these options.
Elevate Ventures High Potential Startup Grant
Elevate Ventures is one of Indiana’s largest venture capital firms. This organization provides multiple financial opportunities for businesses, including High Potential Startup Grants. High-potential startups in communities throughout Indiana may qualify to receive awards of $5,000 to $25,000. Elevate Ventures also offers Small Business Innovation Research and Small Business Technology Transfer grant matches up to $150,000. To learn more about requirements and the funding application process, submit an inquiry through the Elevate Ventures website.
GoGlobal Grant Export Acceleration Program
The GoGlobal Grant Export Acceleration Program is a collaboration between the Indy Chamber and JPMorgan Chase. Through this program, matching grant funding of up to $5,000 is available to support export activities of qualifying businesses. Funds can be used for trade show attendance and conference costs, export plan development, and other company expenses related to export activities.
To qualify, you must:
- Be in business for at least 2 years
- Have primary operations based in the Indianapolis metro area
- Participate in a one-on-one business coaching session
Priority is given to businesses with fewer than 250 employees and less than $20 million in annual revenue. You can learn more and apply for the grant by sending an email inquiry through the Indy Chamber website.
The Startup Ladies
Women-owned businesses can join The Startup Ladies for a small fee and have access to resources for starting and growing their businesses. Through The Startup Ladies, female entrepreneurs can attend events, access educational materials, and connect with potential clients and investors.
The Startup Ladies also offers funding opportunities. Members can apply for funding through The Startup Ladies Fund. The organization can also help members identify federal SBIR/STTR grant opportunities that are best for new businesses.
Loans & Resources For Startups In Indiana
Startups don’t always have access to the same financial opportunities as established businesses. Startups are seen as “risky” by lenders simply because they do not have a proven track record of success. A lack of revenue, business credit score, and history all spell big risk to lenders.
However, this doesn’t mean that there’s a lack of resources for startups. We’ve already reviewed a few lending options available to startups, such as personal loans for business. Now, let’s explore other resources available to startup businesses in Indiana, from mentorships to workshops and educational materials. Best of all, these resources are available to you for free or for a very low fee.
Indiana Small Business Development Center
The Indiana Small Business Development Center offers small business advising and services at no cost to small business owners in Indiana. There are 10 regional offices located throughout the state.
This organization can advise you on a variety of business topics including:
- Market Research
- Business Planning
- Loan Assistance
The Indiana Small Business Development Center also offers workshops and events for small business owners for no cost or a small fee.
If you need a business mentor, look no further than SCORE. Through one of the organization’s 300 chapters throughout the nation, you can connect with a business mentor at no cost. There are multiple chapters located in the state of Indiana.
SCORE’s business mentors can answer your questions and offer guidance in starting or growing your business. You can connect with your mentor through email, video chat, or face-to-face.
SCORE also offers educational opportunities and other free services to startups and established small businesses. This includes live and recorded webinars, online courses, and workshops.
Launch Indiana provides resources to help increase entrepreneurialism throughout the state. The organization’s goal is to foster innovation and growth for entrepreneurs and startup businesses.
Through Launch Indiana, you can take advantage of mentorships with coaches and experienced business owners. Other resources include videos, case studies, events, and other business tips and advice to help you grow your business and network with other entrepreneurs and businesses. Launch Indiana is also working to build co-working spaces and Internet of Things labs throughout the state to open up even more opportunities for business owners in Indiana.
What To Consider When Choosing A Lender
With thousands of lenders to wade through, which option is best for your business? Unfortunately, every business has different financial needs, so there’s no one-size-fits-all option when choosing a lender. The good news is that with a few factors in mind, you can more easily cut down your list of options to choose the lender that’s right for your business.
Type Of Financing
What type of financing do you need? Let’s say you don’t need money right now but would like an option for emergencies or expenses that arise in the future. In this case, you’d apply for a line of credit or business credit card. Seek out lenders that offer this type of financing. If you’re unsure of which type of financing is best for you, consider working with a lender that offers multiple financing options. These lenders can work with you to help find the best, most affordable solution for your business.
How much do you need to borrow? If you need $250,000, not all lenders offer this amount. Others have much lower borrowing limits. These lenders can be crossed off your list.
When you receive small business financing, you don’t just pay back the amount that you borrow. Instead, you’ll have to pay interest on borrowed funds and/or additional fees required by the lender. Make sure that you understand the cost of working with each lender on your list, and make sure that the rates, fees, and terms work for your business. Learn more about how to determine if your business can afford a small business loan.
Do you meet all borrower requirements? Pull your free credit score online before you apply with any lender. Check your credit history to ensure there’s nothing that could prevent you from qualifying with a lender, such as a recent bankruptcy or a high number of credit inquiries. Run your financials to make sure you meet annual revenue requirements. If you don’t meet all requirements of one lender, move on to other options.
As a small business owner in Indiana, there are financial options open to you, whether you’re just getting started or you’re ready to expand your existing business. Unable to find an option that’s best for you? No problem. Check out our other resources to find the small business loan that’s best for your situation.