Small Business Loans in South Dakota

Business Line of Credit

A business line of credit is structured like a credit card. Lenders give you a predetermined credit limit, and you can withdraw from it as needed. You only need to pay for the amount withdrawn, plus interest - not the entire credit limit. It's a revolving line of credit, so your limit goes back up once you repay your dues.

SBA Loans

The Small Business Administration created SBA loans to help small businesses access affordable financing. It's one of the most popular options among small business owners because the Small Business Administration guarantees up to 85% of the loan, incentivizing lenders to approve your application. These loans have higher loan limits, lower interest rates, and extended repayment periods compared to other forms of financing.

Asset-Based Lending

Asset-based loans rely on the value of your assets rather than cash flow and credit. You can use inventory, accounts receivable, equipment and machinery, purchase orders, and commercial real estate as collateral. It's an excellent option for small business owners with valuable assets who can't qualify for other business loans.

Invoice Financing

Invoice financing allows you to use outstanding invoices in exchange for working capital. Lenders give you up to 90% of the total invoice value upfront, and you can use it for any business expense. You'll receive the remaining percentage (minus a fee) once your customers pay their dues.

Business Term Loan

A business term loan is a classic loan where lenders give you a lump sum that you need to repay within a fixed period, plus interest. It's usually repaid on a monthly basis, but some lenders may require weekly or bimonthly payments. Many business owners like the simplicity of a term loan and its spending flexibility.

Equipment Financing

Equipment financing is an excellent option for businesses in South Dakota that heavily rely on equipment, like medical practices, construction, agriculture, and hospitality. This small business loan gives you the resources to purchase or lease equipment, including heavy machinery, furniture and fixtures, office equipment, and company vehicles.

Inventory Financing

Inventory financing uses your inventory as collateral to secure a loan. This means you don't need to pledge any personal and business assets to get funding, but lenders may repossess your inventory in case of a default. Borrowers typically receive up to 80% of their inventory's appraised value.