Small Business Financing
Guide to Financing Your Small Business in St. Louis
Everything you need to know get funding for your business in St. Louis
You’ve got your business plan completed and a great idea for a new small business in St. Louis. What’s your next step? Financing! Luckily, there are many options for financing your St. Louis business.
Your financing will be determined by a few factors, including personal credit score, projected revenues, and collateral. The best financing options for your new business also depend on how soon you need funding and how your customers will pay you (invoices, credit cards, etc.).
You can see an overview of the options for your different St. Louis financing options below.
Small Business Bank Loans
In St. Louis, you can apply for a SBA 7(a) loan between $5,000 and $5 million by applying with a lender or bank that partners with the St. Louis SBA.
You can see what you need to qualify for a 7(a) loan here.
You can also apply for a standard bank loan or line of credit in case your bank does not partner with SBA. If you are looking for banking options, here’s a list of the top small business banks in St. Louis:
Small business bank loans are typically inexpensive, with low APRs depending on the size of the bank and the size of the loan. There’s also flexibility with long and short-term loans, so your monthly payments are smaller.
Commercial Real Estate Loans
If you’re planning to have a brick-and-mortar business or industrial warehouse in St. Louis, a commercial real estate loan can help provide funding for the actual property.
These loans are also taken out through a bank or an SBA fund, but you’ll want to consult with a commercial real estate agent or company in St. Louis so you know where to buy and how much of a loan you will need.
You can choose to browse commercial real estate in St. Louis with an online service like CityFeet, or you can contact some of the following St. Louis real estate agencies:
Like standard bank loans, commercial real estate loans tend to have a low APR and long-term options.
For newer businesses or lower-capital startups in St. Louis, credit cards can be an inexpensive and convenient way to finance your company. You can even use multiple cards and combine them for a lower rate and higher credit line. An advantage to using credit cards is avoiding collateral or down payments for financing.
For a business credit card, banks like the Business Bank of St. Louis offer Visa business cards for startup and ongoing expenses. You can also apply for a business credit line at First Community Bank or Neighbors Credit Union.
Peer Lending Loans
These loans connect individual business owners with investors looking to finance small businesses. For new companies, your financial projections should be strong to attract a solid investor.
In St. Louis, your best resource for peer lending loans is the International Institute, which offers a Peer Lending Circle for new business grants.
If your business will rely on invoicing large companies, this might mean a slower turnaround for profits. Factoring companies can help convert processing invoices into capital.
You have several options for factoring companies in St. Louis, like Elite Factoring, or you can use a service like Factor Finders. This option allows for a quick turnaround of financing, but has a higher APR than other options.
Home Equity Credit
You can secure a line of credit by your home if you’re a homeowner in St. Louis. This can be an inexpensive option, but presents the risk of losing your home in you default.
For a home equity line of credit, you’ll want to work with a St. Louis bank in addition to a mortgage company like Cornerstone Mortgage on Gravois Ave.
There are additional sources of financing that can be used to supplement the funding options explained above:
These options will typically help enhance any kind of financing that you find in St. Louis.
Once your financing is secured, you’ll want to start looking for commercial space as well as starting to market your business with a website. Check out our guides for St. Louis real estate and our how-to on website creation!