Small Business Loans in Kansas City
What financing options are available for small businesses in Kansas City? Find out about possible loans and which ones might fit your business.
Loan types available in Kansas City.
Kansas City business owners enjoy one of the lowest state business tax rates in the country. That can help ease up your finances to make a small business loan even more affordable. Here are five different types of financing to explore.
SBA loans
SBA loans are business loans that are partially backed by the Small Business Administration (SBA), a federal agency. These loans are serviced by private lenders, but are popular because they generally have good interest rates.
Line of credit
Use a line of credit as a flexible form of financing. Unlike with a loan, this option does not involve a big disbursement upfront that you must repay, providing a flexibility that better fits many entrepreneurs’ needs.
Term loan
Term loans are common small business loans in which you would apply for a large disbursement of capital and then repays it over several years, along with fixed or variable interest.
Equipment finance
With equipment financing, you receive a piece of equipment and then pay off the cost of the equipment in installments. This way, your business can make money off the equipment immediately, even if you don’t have the funds to buy it at the sticker price.
Accounts receivable financing
Accounts receivable financing is an alternative form of business financing in which your unpaid invoices serve as collateral for a lump disbursement of funds.
Local Kansas City business loan options.
Discover local organizations and lenders that specifically work with small businesses in Kansas City.
The newly launched Kiva Kansas City offers interest-free microloans of up to $15,000.
The KC CDFI Coalition has partnerships across the region to connect small businesses with financing. They particularly work with underserved communities.
Mainstreet Credit Union has business loans that can be used for a variety of purposes, including vehicle and equipment purchases, inventory, operating expenses, and more.
Sunflower Bank has a variety of financing structures for small businesses, including a line of credit, term loans, equipment financing, and commercial real estate loans.
Four simple steps to funding.
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Find the funding option with the terms that best fit your small business goals.
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Once you accept, funding can hit your bank account in as little as 24 hours.
FAQs
The Kansas City Area Development Council has a comprehensive list of small business resources and incubator programs in the area. Also check out the KC Small Business Capital Program for local financing opportunities.
Micro businesses with less than 10 employees can apply for grants between $10,000 and $25,000 to expand their businesses in Kansas City. Missouri Grant Watch is also a helpful resource for exploring business grant opportunities in the area.
Start by establishing your business with the Missouri Secretary of State and obtain a KC business license. Then look at lenders’ eligibility requirements, including personal or business credit score, annual revenue, and time in business.
It depends on how you want to use the business loan funds and repay them. If you plan to purchase a hard asset, equipment financing may be a good choice. A term loan can be helpful for an expansion opportunity or other one-time use. A line of credit is good for a financial backup or uneven cash flow.
A Kansas City business loan can help you grow your business at a faster rate than without financing. Alternatively, it can also help keep your business afloat during periods of financial difficulty.
Ready for funding?
See what you can qualify for on the Lendio Marketplace.