Since 2010, Minnesota has become a hub for startups. In addition, close to 30,000 people move to Minnesota every year in search of success and community.
We have a flourishing business market, from Fortune 500 companies to startups, that is accompanied by a lively arts scene and affordable yet world-class quality of life. If you’re looking to move your startup here, or start your own small business, Minnesota is the perfect place for you. And Crown Bank knows just how to help you and your business.
How Crown Bank can support your startup’s growth
The Small Business Administration reports that one-half to two-thirds of small businesses use bank financing to start and subsequently grow their business. If you do choose to finance your business, the bank you do business with, is not just an economic choice. Interest rates, fees, bank loan options, are important, but equally as important is the relationship you have with your banker.
At Crown Bank we will help you and your business lay a strong foundation for long-term growth while providing you fast and personalized access to the capital you need to get your business off the ground. Here’s how!
You’re going to need capital to build your business, and credit is a loan form that can keep your cash flow consistent. Here at Crown Bank, we offer convenient and fast access to various business lines of credit: letters of credit, corporate lines, and business credit cards.
Corporate line of credit
With a corporate line of credit, we offer a convenient source of additional funds to draw upon when needed. It is essentially a revolving loan that provides access to a fixed source of capital. What is advantageous about a corporate or business line of credit is that you pay interest only on the amount you use rather than the lump sum of the line of credit.
This can be used to meet short-term business needs, finance consistent purchases or surprise expenses, you can use it for large purchases like equipment or to manage cash flow.
A business card is a great first step in developing a relationship with a bank. With a business credit card, you can build a portfolio of purchases and demonstrate borrowing and returning.
Credit cards are perfect for managing business expenses with a consistent line of credit. A credit card will also provide pristine record keeping, as you can manage itemized expenses, and monthly expenses. It is a starting point for budgeting and understanding your financial expenses. It can also be a good indicator to your bank what your loan needs might be.
Credit is a way to ease into a relationship with a bank, build the trust necessary to be considered for a loan.
Startup success depends on access to capital and strategic business plans. That looks like access to the rights accounts, financing options, loans and renewed access to working capital, both professionally and personally.
At Crown Bank we offer three different small business loans: long and short-terms loans, Small Business Administration (SBA) loans, and personal loans.
Long and short-term loans
A long or short-term loan refers to the time in which a loan is paid back. The benefit of a short-term loan when starting a business, is that it is one way to secure access to small amounts of money in a timely manner, and can help you build trust in your capacity to repay loans. The average short-term loan amount is $20,000, which can be the jolt of startup funds necessary to move your business from an idea to an actuality.
Once in business for a couple of years, with consistent income, your business can qualify for a long-term loan. This can help you scale your business, branch out and expand. Having a relationship with a banker will help you get access to the best loan rates, and sage advice on which loaning instrument is best suited for your needs and capacities.
An SBA loan provides a reduced risk to lenders and greater and easier access to capital, which is great for your business when you partner with a certified lender like Crown Bank! The most common loan is the SBA 7(a) loan, which can be used for the widest array of purposes: working capital, real estate, equipment, refinancing, business acquisition.
These loans can help you start your business or be a part of growing your business, and have varying repayment periods.
A personal loan can sometimes be the quickest access to cash flow for every day expenses. This loan can take form as a personal loan or as a personal credit line.
What makes this financing option advantageous is how quick it is, and can help you build a rapport and trust with a crediting institution, all the while advancing your startup. You must not exceed the maximum amount you agree to, and must make timely payments with interest.
There are three dos for startup success:
1. Build a relationship with a bank now. We are more likely to provide a loan if you have a solid, existing borrowing relationship with a bank and an outstanding personal credit score.
2. Solicit seasoned advice. Crown Bank offers senior level bankers who can help you navigate financial success both personally and professionally. You will have a consistent banker who will answer your call in a timely manner and offer you solid, quick advice.
3. Keep your expectations tempered. Success is not temporal, it’s linear and long-term. Startups require patience and lots of capital.
As a community bank, we want to partner in your success. Our team will get to know your business so they can provide insight to help you make the best banking decisions for business growth. Best yet, our bankers are always a phone call away to get you what you need as quickly as you need it.