Small Business Loans in Utah

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    Small Business Loans Utah: Top Loan Options for Utah Businesses

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    Utah might not be the first state that may spring to mind when you think about a healthy business environment with plenty of employment opportunities. But according to the U.S. News and World Report, the state has the 3rd best economy in the country. One reason could be attributed to the excellent collaboration between the government and small businesses in Utah, which makes up 99.3% of all companies in the state.

    Utah is also one of the states with the lowest tax burden, and a highly educated workforce, making it one of the best places to start a business. However, despite having an extremely healthy business environment, business owners will eventually need more seed capital to sustain their business. That being said, a small business loan can give them the cash flow boost needed to sustain their business operations.

    Technology Business Loans in Utah

    Technology is becoming a huge part of Utah’s economy. Cloud computing, software development, FinTech, and big data are rising in prominence in the state, specifically in Salt Lake City. Because of this, many startups and established technology businesses are considering moving to Utah to start their business.

    SMB Compass serves several industries, including the technology industry. We understand that businesses in this sector struggle with high operating costs. With 25 years of experience in the financing industry, we’re confident that we can help technology businesses gain access to the most affordable loan program to help them cover the costs of any business initiative.

    Medical Practice Loans in Utah

    Utah has one of the best healthcare systems in the United States. In fact, it finished second in the best healthcare rankings in the country. With high-end medical services, private practices and other healthcare businesses in the state must keep up with the demands and continue providing top-notch care to its people.

    With medical funding programs, private practices in Utah can afford equipment upgrades, expansion, renovations, and more and ensure their company remains competitive.

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    Top Business Financing Options Options in Utah

    There’s no such thing as a one-size-fits-all option for business loans. Each business is unique and has different needs. The best way to know what type of business loan you need is to evaluate your business's current needs.

    Below, we’ll outline a few of the most common types of loans available for small businesses in Utah and how they work.

    SBA Loans

    SBA loans are among small business owners' most popular and sought-after loan options. Since it's backed by the Small Business Administration, an SBA loan offers excellent terms to small business owners. Once approved, businesses can get up to $5 million in funding, which they can put towards any business initiative. The interest rate is also lower than other small business loans, making it an excellent financing choice for most small businesses.

    However, SBA loans are notorious for haveing a lengthy processing time and strict eligibility requirements. To qualify for the loan, your business must have an excellent credit score - at least 680, two years of business history, and solid financials. With that, startup businesses or those who are still in the process of building credit may not be able to be eligible for this affordable financing.

    Business Line of Credit

    A business line of credit is a revolving credit that gives businesses access to a credit line with a predetermined credit limit. The credit available to the company goes down as they draw money and back up as they make repayments. Once the credit is restored to its original amount, business owners can tap into it again if the need arises.

    One of the biggest benefits of business lines of credit is their flexibility. Whether the business needs more working capital to invest in product expansion or replace broken equipment, business owners can use the line of credit to cover almost any business-related cost.

    Equipment Financing

    Buying equipment outright can cause a significant strain on the business's cash flow. Equipment financing is designed to help companies to buy the equipment needed to run their business. It could be a large oven, freezers, computers, or heavy equipment like bulldozers and cranes.

    The biggest advantage of equipment financing is that it doesn’t require you to pledge another asset for collateral. Instead, the equipment financed will serve as the collateral for the loan. If you default on the repayments, the lenders will seize the equipment, sell it at a lower price, and use the proceeds to pay the remaining loan balance.

    Business Term Loans

    Business term loans provide a lump sum of cash upfront that you can in installments over a specific period. Depending on the repayment period, it can be a short-term, medium-term, or long-term loan. The rates for term loans are usually fixed, which means that they won’t change over the entire period of the loan. This makes it easier for business owners to predict the month-to-month payments.

    Inventory Financing

    Inventory financing is a short-term loan that allows businesses to use their existing inventory to get additional capital. The amount you’ll get in funding will depend on the total value of the inventory you pledge. Moreover, the percentage will be influenced by different factors, including your industry, type of inventory, and inventory churn.

    While you can use the proceeds to buy more inventory to sell at a later date, you may also use it for other business purposes, such as meeting day-to-day expenses, payroll, and more.

    Invoice Financing

    Invoice financing allows businesses to leverage their invoices in exchange for upfront capital. The lenders will typically advance up to 90% of the total value of the invoices, holding the remaining 10% until the customers settle their balances. You won’t have to wait 30 to 90 days for your customers to pay you with invoice financing. The financing will free up cash tied up in the unpaid accounts receivables so the business can cover day-to-day expenses and other financial obligations.

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    Additional Business Resources in Utah

    Because small businesses play an essential role in Utah’s economy, their local and state governments have set up and arranged different resources that small businesses can utilize. Utah is teeming with mentorship programs, networking opportunities, grants, and other resources designed to help small businesses succeed in their respective industries.

    Here are a few other resources for small business owners in Utah:

    Women’s Business Center in Utah

    Women entrepreneurs often find it tougher to secure resources for business growth. With the population of female entrepreneurs rapidly growing in Utah, access to resources has never been more vital. The Women’s Business Center in Utah helps underserved female entrepreneurs access essential business resources. This includes business training, webinars, and other learning resources on starting and growing a business.


    SCORE is an organization composed of an extensive network of volunteers that offer mentorship to small business owners. They provide free consultation services and advice to small business owners, giving them a broader sense of how they can grow and expand their business.

    Small Business Administration (SBA) – Utah

    Utah’s local Small Business Administration branch is situated in Salt Lake City. The branch offers different business resources for both startups and established businesses. They also serve as an information hub for companies and offer information on starting and scaling their business. The SBA also hosts business events to help companies gain more exposure and establish their network.

    How to Use Small Business Loans in Utah

    If you operate a business in Utah, consider yourself lucky. The state is one of the few with readily available working capital opportunities you can take advantage of to sustain and grow your business. With the cash flow boost, you can:

    • Purchase equipment
    • Acquire real estate
    • Cover construction and renovation costs
    • Buy office supplies and fixtures
    • Fund marketing and advertising strategies
    • Stock up on inventory
    • Fund product expansions
    • Open another branch
    • Refinance existing debts

    Ready to apply for a Business Loan?