Best Small Business Loans in Nashville, TN

How to get a business loan in Nashville

Nashville’s entrepreneurial, healthcare and start-up scene is booming. With resources such as the Nashville Entrepreneur Center, Wond’ry and WeWork, Nashville entrepreneurs have a wealth of assistance for their ventures at their fingertips. As such, entrepreneurs also look to business loans for capital to launch their new company or organization.

There are multiple types of business loans available in Music City. Some of the most common are:

• Term loans: Business owners receive a lump sum upfront and repay the loan with interest over an agreed upon period of time.
• Business lines of credit: A business owner can access funds up to a specific credit limit and pay interest only on the money taken out.
• Equipment loans: This loan is ideal if your business requires special equipment. The loan terms are associated with the lifespan of the equipment, and the purchased equipment serves as collateral.
• Merchant cash advances: Similar to a term loan, merchant cash advances allow business owners to receive cash upfront. However, payments are made by either withholding a percentage of credit/debit card sales each day or fixed daily/weekly bank account withdrawals.

When applying for some loans in Nashville, it’s possible your bank will set up a meeting to discuss the loan before approving it. To make sure you’re prepared for your meeting, bring:

• Accurate, up-to-date financial statements
• Financial projections
• A business plan or explanation for the loan need and goals
• A list of assets which can serve as collateral (equipment, inventory, cash deposits, etc.)
• Proof of business license

After speaking with you and reviewing these documents, the lender will decide if you are a qualified candidate for a loan in the amount you are requesting.

Before agreeing to a business loan, make sure you clearly understand the repayment terms and that you have them in writing. Common repayment terms include fixed payments with interest over a specific period of time. However, this schedule may vary depending on the type of business loan you secure.

If you have bad credit, lenders in Nashville may require additional collateral to reduce their risk, or they may offer a business loan with higher interest rates.