Iowa Business Loans: How and Where to Source Funding
The state of Iowa has prioritized expanding entrepreneurship, attracting business, and moving from a primarily agricultural business model to a diversified market. Imagine the state with a solid base in media and marketing, manufacturing, engineering, software development, entertainment, apparel design, and game design, all in addition to its traditional agricultural base.
That’s the vision, but how does the state plan to get there? Major economic development. The challenge is that many entrepreneurs in Iowa don’t meet the standards for bank financing and don’t have the assets to secure other types of traditional loans. So how can Iowan’s source funds to launch and grow their business concepts?
Hint: there’s not enough grant money to go around.
It depends on the type of operation you run or that you are planning to launch. The reason? Just like Iowa wants to diversify its market, lending is a thousand times more diverse than it was even a decade ago. Cash flow-based loans, asset-based loans, factoring invoices and contracts, even unsecured options are on the table, depending on your scope and scale.
Where to get business loans for a startup in Iowa?
Startup financing is one of the most challenging categories, as traditional lenders want to see three years of financials for your organization. The fastest and best route to funding is often working with a commercial loan broker like Commercial Capital Midwest.
We start with an audit of your current financial scenario and bring a number of financing options to the table, then once you’ve provided direction, we source and negotiate loan options. With so many providers, you can prioritize what’s most important – low down payment, short application cycle, fixed or variable interest, 3, 5, 10, or 25-year term. We source choices so you can avoid knee-jerk financing options just because someone offered you a loan.
How to get business loans when you’ve been denied in Iowa
The truth of the matter is that 80% of business loans are denied on the first application. There are a host of reasons for that – incomplete information, FICO score, lack of books to support the application, and insufficient experience in the business domain.
Lenders rarely provide the underlying reasons a decision was made or clarity on what you can do about it. The best way to prepare for lending is with a comprehensive financing audit to get to know how your current scenario will be perceived by lenders so that you can approach the right ones.
Once you know the lay of the land, the second step is proper packaging. Having an experienced partner to pre-screen your business proposal, loan application, and documentation significantly improves application success.
After making an application, sometimes questions come up. Again, a valued partner, like the team at Commercial Capital Midwest, facilitates the deal, aiding in timely and on-point responses to lender queries.
While we operate in Iowa, we maintain a national network of quality traditional, private, and alternative financing solutions that are available to Iowa businesses.
Contact us or start your application and a team member will reach out to conduct your pre-assessment.