Startup business grants can help small businesses grow without debt. But if you want free money to start a company, your time may be better spent elsewhere. Competition for small-business grants is fierce, and many awards require time in business — often at least six months.

Some grants are open to newer businesses or true startups. And even if you don’t qualify now, it can pay to know where to look for future funding. Here are the best grants for small-business startups, plus alternative sources of startup funding to consider.

Some government programs offer direct funding to startups looking for business grants, but those that don’t may point you in the right direction or help with applications:

Grants.gov. Government agencies routinely post new grant opportunities on this centralized database. If you see an opportunity relevant to your business idea, you can check if startups are eligible. Many of these grants deal with scientific or pharmaceutical research, though, so they may not be relevant to Main Street businesses.

Local governments. Lots of federal grants award funding to other governments, like states or cities, or to nonprofit economic development organizations. Those entities then offer grants to local businesses. Plugging into your local startup ecosystem can help you stay on top of these opportunities.

Small Business Development Centers. These resource centers funded by the Small Business Administration offer business coaching, education, technical support and networking opportunities. They may also be able to help you apply for small-business grants, develop a business plan and level up your business in other ways.

Minority Business Development Agency Centers. The MBDA, which is part of the U.S. Department of Commerce, operates small-business support centers similar to SBDCs. The MBDA doesn’t give grants to businesses directly, but these centers can connect you with grant organizations, help you prepare applications and secure other types of business financing.

Some local business incubators or accelerators offer business grants or pitch competitions with cash prizes. To find these institutions near you, do an online search for “Your City business incubator.”

Even if you don’t see a grant program, sign up for their email newsletter or follow them on social media. Like SBDCs and MBDAs, business incubators often provide business coaching, courses and lectures that can help you develop your business idea.

Lots of corporations and large nonprofits, like the U.S. Chamber of Commerce, organize grant competitions. Some national opportunities include:

iFundWomen. iFundWomen partners with other corporations to administer business grants. You can fill out a universal application to receive automatic notifications when you’re eligible to apply for a grant.

Amber Grant for Women. WomensNet gives two $10,000 Amber Grants each month and two $25,000 grants annually. Filling out one application makes you eligible for all Amber Grants. To qualify, businesses must be at lesat 50% women-owned and based in the U.S. or Canada.

National Association for the Self-Employed. Join NASE, and you can apply for quarterly Growth Grant opportunities. There are no time-in-business requirements for these grants of up to $4,000, but you’ll need to provide details about how you plan to use the grant and how it will help your business grow.

FedEx Small Business Grant Contest. This annual competition awards grants to small-business owners in a variety of industries. You can sign up to receive an email when each application period opens. To be eligible, you’ll need to have been selling your product or service for at least six months. Be mindful, though, that each grant cycle receives thousands of applications.

Fast Break for Small Business. This grant program is funded by LegalZoom, the NBA, WNBA and NBA G League and administered by Accion Opportunity Fund. You can win a $10,000 business grant plus free LegalZoom services. Applications open during the NBA season, which runs from fall to early summer each year.

New businesses likely won’t be able to rely on startup business grants for working capital. The following financing sources may help accelerate your growth or get your startup off the ground:

SBA microloans offer up to $50,000 to help your business launch or expand. The average microloan is around $13,000, according to the SBA.

The SBA issues microloans through intermediary lenders, usually nonprofit financial institutions and economic development organizations, all of which have different requirements. You can use the SBA’s website to find a lender in your state.

Asking friends and family to invest in your business may seem daunting, but it’s very common. Make sure you define whether each person’s money is a loan and, if so, when and how you’ll pay it back. Put an agreement in writing if possible.

Business credit cards can help you manage startup expenses while your cash flow is still unsteady. You can qualify for a business credit card with your personal credit score and some general information about your business, like your business name and industry.

You’ll probably need to sign a personal guarantee, though, which is a promise that you’ll pay back the debt if your business can’t.

If your business has a dedicated customer base, they can help fund you via crowdfunding. Usually businesses offer something in exchange, like debt notes, equity shares or access to an exclusive event.

There are lots of different crowdfunding platforms that offer different terms, so look around to find the model that works best for you.

Small-business loan terms determine how long a small-business owner has to pay back their borrowed money, plus interest. Typical loan terms, also referred to as repayment terms, can vary from a few months to 25 years — it depends on your lender and the type of business loan.

You and your lender will establish a repayment schedule that shows how much you’ll pay per week or month. While reviewing repayment terms, consider eligibility requirements and annual percentage rates, which take into account interest rates and other fees associated with the loan.

Small-business term loans provide a lump sum of cash upfront that borrowers pay back over time. Online lenders and traditional banks offer them, and maximum amounts range from $250,000 to $500,000. Term loans fall into either the short-term or long-term category — for example, a long-term loan may have a repayment term of 10 years while a short-term loan from an online lender might only give the borrower from three months to two years to pay it back.

Nonprofit, community-driven lenders offer microloans to small-business owners in specific regions and underserved communities. While smaller loan amounts typically mean shorter repayment terms (and this is true for some microloans), SBA microloans have terms of up to six years.

SBA loans range anywhere from thousands of dollars to $5 million and generally have low interest rates. The maximum 7(a) loan term for working capital is 10 years, although according to the SBA, seven years is common. Borrowers have up to 25 years to pay off loans used for real estate.

With a business line of credit, small businesses pay interest only on the money that they borrow, and funds can be available within days. Some business lines of credit require weekly repayments instead of monthly repayments.

Invoice financing provides businesses with a cash advance while they wait on their unpaid invoices. Like a business line of credit, invoice financing is a quick way to access cash and is one of the shortest-term financing options available. Terms mostly depend on how long customers take to pay their invoices.

Equipment financing is used to pay for large equipment purchases, and then that same equipment serves as collateral. Terms vary and usually depend on how long the equipment you’re financing is expected to last.

A loan repayment term describes how much time you have to repay the loan, plus interest; you might also hear this referred to as loan maturity. This is not to be confused with the loan maturity date, which is the final day of your repayment term. On the loan maturity date, the entirety of the loan and any extra associated costs should be paid.

The bottom line: Accion loans are a good option for borrowers who’ve been in business for three months or more and have been turned down by other lenders.

• A broad range of loan amounts from $5,000 to $100,000.

• Loans are available to businesses in operation for as little as three months.

• Expanded credit guidelines for borrowers.

• Customized loan terms.

• No prepayment penalty.

• It can’t be used to get a business off the ground.

• Shorter loan repayment periods of one to five years.

• Slow processing speed compared to online lenders.

• Not available in all U.S. states.

Accion Opportunity Fund is a nonprofit community lender offering customized loans to small business owners throughout most of the U.S.

Over 80% of Accion clients identify as women, people of color or immigrants. In addition to small business loans, educational resources and coaching support in English and Spanish are also provided.

• Prefer customized options. Loan terms are structured based on your business needs.

• Don’t have perfect credit. Factors other than your credit score can be used to determine qualification.

• Have new businesses and can’t get funding elsewhere. Businesses only need to be in operation for three months to apply.

Accion says that most of its borrowers have not been able to get loans with traditional lenders because they have poor credit, no credit history or require a small loan amount. Accion can use more than a borrower’s credit score to determine qualification for a business loan.

Accion can structure a loan to meet your specific business needs. After submitting an application, you may be able to choose from several loan options with different term lengths, interest rates and payment amounts. In addition, if Accion can’t provide a loan, it will refer you to one of its partners or provide other financing options for you to explore.

Accion does more to help small businesses than just offering loans. Business coaching and mentoring are also available. You can set up an appointment for one-on-one assistance provided by a business expert. Your coach can also help you enroll in training programs to enhance your leadership skills. In addition, its resource center offers videos, articles, and interactive learning materials.

Accion loans are designed to support existing small business owners. But, again, your business must be in operation for a minimum of three months to qualify for an Accion loan. That means you won’t be able to use loan funds to start a business.

Accion loans are available in most U.S. states, but you won’t be eligible if your business is located in Montana, North Dakota, South Dakota, Tennessee or Vermont. Also, Southern Opportunity and Resilience (SOAR) funding is limited to businesses located in Alabama, Arkansas, Delaware, Florida, Georgia, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Texas, Virginia, or Washington, D.C.

• Credit score: No minimum required.

• Time in business: Minimum of 3 months in business.

• Annual revenue: Varies depending on the loan program.

After completing an application online, you’ll receive a quote. Accion says that the quote won’t affect your credit score. You will need to provide some basic information about your business, including revenue and expenses. Accion will then review your loan options with you, including interest rates, repayment amounts and the repayment period. If there are no options that work for you, Accion can refer you to other resources.

If you decide to move forward with the loan offer, you’ll be asked to provide documents that Accion can use to verify the information you provided on your application. After that, your loan will be finalized; you’ll sign loan documents and then receive funds.

An SBA loan is another option to consider. These loans are offered through banks but partially guaranteed by the Small Business Administration. This can make it easier to qualify because the lender takes on less risk. In addition, funds from an SBA loan can be used to start a business. This differs from an Accion loan, which requires your business to operate for a minimum of three months to qualify. SBA loans also offer flexibility when a borrower has less-than-perfect credit.

Kiva is another nonprofit that is an option to ponder. You can get up to $15,000 at 0% interest if you qualify. Kiva loans don’t require a minimum credit score or collateral. Still, there are other eligibility requirements, such as the business must be based in the U.S. and you can’t currently be in foreclosure, bankruptcy or under any liens. One unique Kiva provision is that borrowers are asked to demonstrate their strength of character by having friends and family make loans to them.

Not everyone wants to take on the challenge of building a business from the ground up. An attractive alternative can be to step into a business that’s already up and running by purchasing it from the current owner. Some advantages of buying a business may include easier financing, an established customer base and an existing cash flow.

Buying a business is different from buying a franchise. Franchises have a set business model that’s proven to work. However, when you buy an independently operated business, it’s important to show the lender that you, your previous business experience and the business you want to buy are a winning combination.

Because lenders can view the performance record of an existing business, it’s typically easier to get a loan to purchase an existing business compared with startup funding. However, your personal credit history, experience and details about the acquisition business still matter.

Through credit reports and credit scores, lenders are able to assess how you’ve managed debt in the past and potentially gain insights into how you will handle it in the future. Your education and experience will also be evaluated.

Solid credit history: Lenders look to see if you have a history of paying your debts. Foreclosures, bankruptcies, repossessions, charge-offs and other situations where you haven’t paid off the full amount will be noted.

Business experience: Having worked in the same industry as the business you want to purchase is helpful. Related education can also be viewed as a positive.

Having a track record of operating other successful businesses can have a positive influence on lenders when it comes to buying a new operation.

Record of generating revenue: Business financial statements can help a lender document that your current or past businesses were well-managed and turned a profit.

Positive credit record: Lenders review business credit scores and reports to verify creditworthiness and to identify liens, foreclosures, bankruptcies and late payments associated with your other businesses.

Just because a business is operating doesn’t mean it’s a good investment. Lenders will ask for documentation, often provided by the current owner, to assess the health of the operation.

Value of the business: Like you, your lender will want to ensure that you’re buying a business that has value and that you’re paying a fair price.

Past-due debts: Lenders will be interested in the business’s past-due debts, which may include liens, various types of taxes, utility bills and collection accounts.

Most lenders will let you know what they want included in the loan application package, but there are some personal documents that are typically requested, as well as ones related to the business you want to purchase.

The following documents are used to evaluate your personal finances, business history and plans for operating the business after its purchase:

• Personal tax returns.

• Personal bank statements.

• Financial statements for any of your other businesses.

• Letter of intent.

Documents from the current business owner will also be evaluated. Some common ones requested by lenders include:

• Business tax returns.

• Profit and loss, or P&L, statements.

• Business balance sheet.

• Proposed bill of sale.

• Asking price for inventory, machinery, equipment, furniture and other items included in the sale.

Compared with finding a loan to start a business, getting funding to buy an existing business may be easier. Here are three popular funding options to check into for a business loan:

Banks generally offer the lowest interest rates and best terms for business loans. To qualify for this type of loan, you’ll typically need a strong credit history, plus the existing business will need to be in operation for a certain minimum of years and generate a minimum annual revenue amount set by the lender.

If borrowers don’t qualify for a traditional bank loan, then SBA loans, ones partially guaranteed by the Small Business Administration, may be the next option to explore. Because there is less risk to the lender, these loans can be easier to qualify for. Banks and credit unions frequently offer SBA loans in addition to traditional bank loans.

Many of the same SBA loans are available to both self-employed people and more formally structured businesses, such as limited liability companies and corporations. However, self-employed individuals, like sole proprietors and independent contractors, might face a higher barrier to entry for having limited credit history, inconsistent revenue or no collateral. If they can’t qualify for an SBA loan, other business financing options are available.

Sole proprietors, independent contractors and partnerships all fall under the self-employed category. In these cases, there is no legal distinction between the business owner and the business itself. Sole proprietors, for example, are solely responsible for their business’s gains and losses, while LLCs and corporations are legally distinct from their owners. This distinction helps protect the owners’ personal assets if their business runs into legal or financial issues.

While a sole proprietorship is much easier to set up than an LLC or corporation, lenders may be more hesitant to finance them for a few reasons:

• Self-employed business owners are legally responsible, as individuals, for any debt and liabilities that their businesses take on. If someone sues their business, for instance, their personal assets — not just their business — could be at stake. This makes it riskier for lenders to finance them.

• Sole proprietorships and independent contracting businesses may have lower revenue or less collateral to offer since they’re often a business of one. This could make it more difficult for them to prove that they can pay back the loan, plus interest. And it may require more paperwork.

• Some banks set lending minimums that surpass what a self-employed business owner is looking for, either because the business owner doesn’t need that much funding or doesn’t qualify for it.

• Since there is no legal distinction between the self-employed business owner and their business, they may lack business credit history. To establish business credit, you’ll want to register the business, obtain an employer identification number and open a separate business bank account and credit card to keep your business and personal finances separate.

Applying for an SBA microloan is a great option for self-employed business owners, especially if they’ve been turned down by traditional banks and don’t need more than $50,000 in funding. In fact, the average SBA microloan is around $13,000, according to the SBA. SBA microloans are administered by nonprofit, community-based organizations that can also help train applicants in business practices and management. And because the loans are small, the application process may be easier — applicants may have limited credit history and typically don’t need as high of a credit score as they do for an SBA 7(a) loan.

Funds from the SBA’s most popular 7(a) lending program can be used for a variety of business-related purposes, such as working capital or purchasing equipment. While the maximum SBA 7(a) loan amount is $5 million, SBA 7(a) small loan amounts don’t exceed $350,000. And if the 7(a) small loan is for $25,000 or less, the SBA doesn’t require lenders to take collateral.

SBA Express loans are a type of 7(a) loan for businesses that need quick financing and no more than $500,000. The SBA responds to these loan applications within 36 hours as opposed to the standard five to 10 days, which may speed up the process for borrowers working with non-SBA-delegated lenders. Additionally, borrowers might not have to fill out as much paperwork — the SBA only requires Form 1919. Beyond that, lenders use their own forms and procedures.

Self-employed business owners turned down for SBA or traditional bank loans may be able to qualify for financing with an online lender. These lenders offer options such as term loans and lines of credit, and they often process applications faster and have more lenient requirements. However, applicants should expect to pay significantly more in interest than they would with an SBA loan.

Not only can business credit cards help build your business credit history and pay for everyday business purchases, but they can also help finance larger purchases (within your approved credit limit). And if you qualify for a credit card with a 0% introductory APR offer, you’ll have multiple months to pay off the balance interest-free. Just make sure you’re able to pay off your purchase before the intro offer ends and a variable APR sets in.

When deciding between a business bank loan and an SBA loan, the right fit will depend on the number of years your business has been in operation, your annual revenue, your credit history and a handful of other factors.

Generally, bank loans offer the lowest interest rates and best terms on business loans, which make them the first stop for many borrowers seeking financing. However, if a borrower doesn’t qualify for a bank loan, a Small Business Administration loan with competitive interest rates and terms can be a good alternative. Take a closer look at bank loans and SBA loans to understand how each works.

Banks, credit unions and other financial institutions offer small-business loans. The amounts, interest rates, fees, eligibility requirements and other terms of these loans vary depending on the bank and its guidelines. The repayment period for these loans may be as short as 12 months or as long as 20 years.

Bank loans can be hard for many small businesses to qualify for because the lender takes on the full risk from nonpayment of the loan. Each bank sets its own qualification standards for the loans it offers. However, some general requirements include the following:

• At least two years in business.

• Minimum annual revenue amount.

• Strong credit history.

While they may be branded with specific names, the following are some common types of small-business bank loans:

• Business lines of credit.

• Term loans.

• Equipment loans.

• Commercial real estate loans.

Bank loans can be used for a number of purposes including, but not limited to, the following:

• Purchase of land or commercial property.

• Expansion or remodel of an existing business.

• Working capital to improve business cash flow.

• Purchase of equipment and machines.

• Funds to consolidate debt.

Business loan interest rates vary by lender, but a range from 2.5% to 7% is common for small-business loans from banks. Typically, your lender will base your interest rate on factors such as the following:

• Loan amount.

• Loan term.

• Your creditworthiness including credit score.

• Business relationship with the lender.

Some situations where a bank loan may be a good option for your business include:

• Established business: You’ve been in business for more than two years and have a proven track record.

• Strong annual revenue: An annual revenue amount of over $100,000 can meet the qualification requirements of some bank loans.

If you’ve been turned down by a bank for its loan program, you may still qualify for an SBA loan. These loans are not offered directly through the SBA, but are instead handled by approved lending partners. Some of these lending partners may even be the same lenders that you looked at for a bank loan. Qualification for an SBA loan can be easier for borrowers because SBA loans are guaranteed by the Small Business Administration, meaning there’s less risk to the lender in the case of nonpayment of the loan.

The SBA’s Lender Match tool can help you find a lender in your area. After answering some questions about your business, you’ll receive a list of lenders that are interested in your loan. This gives you the opportunity to compare rates, fees and terms for lenders before submitting your application.

Eligibility requirements are determined by the loan program and the lender. A complete list of requirements will be given to you by the lender, but some general eligibility requirements for SBA loans include:

• The size of your business must meet SBA standards.

• Your business needs to be for profit and officially registered.

• Your business should be located and operating in the U.S. or its territories.

• You’ve invested time and money in your business.

• You can’t get financing from other lenders.

SBA loans can be used to start or expand your business. There are three main types of SBA loans available to borrowers:

• SBA 7(a) loans including standard 7(a) loan, 7(a) Small Loan, SBA Express, Export Working Capital, International Trade, Preferred Lenders, Veterans Advantage and CAPLines.

• 504 loans.

• Microloans.

How you use the funds from your SBA loan can depend on the type of loan you get. For example, SBA 7(a) loans can be used for working capital, while 504 loans cannot. Here are some common uses of SBA loans:

• Working capital or revolving funds.

• Real estate, equipment, machinery, furniture, supplies and materials purchases.

• Construction or renovation of buildings.

• Establishing a new business; acquiring or expanding an existing business.

• Refinancing existing business debt.

• Improvements to existing facilities including land, streets, parking lots, landscaping and utilities.

Depending on the type of SBA loan you get, the interest rate could be tied to the prime interest rate, the Libor rate, U.S. Treasury issues or something else. For example, the interest rate for a $60,000 fixed-rate 7(a) loan would be the prime rate plus 6%, while the interest rate on a microloan depends on the lender. The SBA sets maximum interest rates and you can negotiate with your lender on the interest rate you pay.

Situations that make an SBA loan a good option for business financing include the following:

• Startup financing: The SBA’s 7(a) loan can be used to establish a new business.

• Credit flexibility: There’s the potential that you can qualify even with poor credit ratings.

• Continued support: Some SBA loans offer counseling and education to help you get your business off the ground and continue to operate it.

A business plan can improve your chances of being approved for a loan by helping to persuade lenders that your business is worth investing in and that you have the ability to repay the loan. Many lenders will ask that you include a business plan along with other documents when submitting your loan application.

When applying for a business loan, you want to highlight your abilities, justify the need for your business and define your financial needs. A well-thought-out business plan gives you the opportunity to do that.

A traditional business plan format is typically what lenders are looking for as part of your loan application. This comprehensive layout gives you space to provide detailed information about your business.

The executive summary is used to spark interest in your business. It may include high-level information about you, your products and services, your management team, employees, business location and financial details. Your mission statement can also be added here.

The company overview is an area to describe the strengths of your business. If you didn’t explain what problems your business will solve in the executive summary, do it here. Highlight any experts on your team and what gives you a competitive advantage. You can also include specific details about your business such as when it was founded, business entity type and history.

Use this section to demonstrate the need for what you’re offering. Describe your products and services and explain how customers will benefit from having them. Explain any patents or copyrights here.

Here you can demonstrate that you’ve done your homework and showcase your understanding of your industry, current outlook, trends, target market and competitors. You can add details about your target market that include where you’ll find customers, ways you plan to market to them and how your products and services will be delivered to them.

If you didn’t cover marketing strategies in your market analysis section, you can devote an entire section to the topic. The main goal is to provide details on how you plan to attract your customers and build a client base. You can also explain the steps involved in the sale and delivery of your product or service.

The operational plan section covers the physical requirements of operating your business. Depending on your type of business, this may include location, facility requirements, equipment, vehicles, inventory needs and supplies. Production goals, timelines, quality control and customer service details may also be included.

This section illustrates how your business will be organized. You can list the management team, owners, board of directors and consultants with details about their experience and the role they will play at your company. This is also a good place to include an organizational chart.

This is where you explain the loan amount you want and how the funds will be used. You can add details about how the money will be spent. Also include your strategy for paying off the loan.

Financial statements can indicate the financial health of a business and also demonstrate to the lender that you have the ability to repay the loan. Include three to five years of actual or projected income statements, cash flow statements and balance sheets. For an existing business, consider also including an expense analysis and a break-even analysis. When using forecasted statements for a new business, explain your projections. Graphs and charts can be useful visual aids here.

Finally, if necessary, supporting information and documents can be added in an appendix section. This may include letters of reference, product pictures, licenses, permits, contracts and other legal documents.

A lender will typically evaluate your loan application based on five C’s — or characteristics — of credit: character, capacity, capital, conditions and collateral. While it won’t contain everything the lender needs to complete its assessment, your business plan can highlight your strengths in each of these areas.

A lender will assess your character by reviewing your education, business experience and credit history. This assessment may also be extended to board members and your management team. Highlights of your strengths can be worked into the following sections of your business plan:

• Executive summary.

• Company overview.

• Management team.

Capacity centers on your ability to repay the loan. Lenders will be looking at the revenue you plan to generate, your expenses, cash flow and your loan payment plan. This information can be included in the following sections:

• Funding request.

• Financial statements.

Capital is the amount of money you have invested in your business. Lenders can use it to judge your financial commitment to the business. You can use any of the following sections to highlight your financial commitment:

• Operational plan.

• Funding request.

• Financial statements.

Conditions refers to the purpose and market for your products and services. Lenders will be looking for information such as product demand, competition and industry trends. Information for this can be included in the following sections:

• Market analysis.

• Products and services.

• Marketing and sales plan.

Collateral is an asset pledged to a lender to guarantee the repayment of a loan. This can be equipment, inventory, vehicles or something else of value. Use the following sections to include information on assets:

• Operational plan.

Finding and applying for business financing can be time-consuming and complicated, especially if you don’t have much experience with the process. Business loan brokers can save you time, offer industry knowledge and hopefully help you get the best small-business loan offer. But they aren’t necessary for every business.

Here’s what you need to know about business loan brokers to decide if one is right for your needs.

What is a business loan broker?

A business loan broker is an intermediary between small businesses and different lenders. After learning about your business and financial goals, the business loan broker uses industry knowledge, experience and working relationships with lenders to find loan offers with the most favorable terms and competitive interest rates.

Instead of applying directly to lenders on your own, business loan brokers reach out to them on your behalf, help you complete and submit your loan applications and answer any questions throughout the funding process.

Although these professionals can save you time and help you access lower interest rates, you may have to pay a broker’s fee for their services.

Ideally, the lender pays the business loan broker, but in some cases, these fees are charged to the borrower. Anecdotally, fees typically range from 1% to 6% of the total loan amount but can reach as high as 17%.

Some business loan brokers will add their fees onto the interest rate of your financing, while others will charge you separately after you close on your loan. A reputable broker will never ask for payment upfront before you’ve secured a loan.

When to use a business loan broker

A business loan broker can offer personalized assistance when searching and applying for small-business funding. Although working with a broker isn’t necessary for all businesses, startups that are looking for a first-time business loan — or companies that need specialized financing, like a commercial real estate loan — may find it particularly beneficial.

You might benefit from a business loan broker if you:

• Don’t want to spend time searching for and comparing lenders on your own.

• Want a personal relationship with someone who understands your financial needs and can help you get more competitive interest rates.

• Want assistance submitting loan applications and general advice throughout the financing process.

• Are applying for a business loan for the first time.

• Need a specialized type of financing, such as commercial real estate loans, SBA loans or business acquisition loans.

How to find a business loan broker

To find a loan broker for your small business, you have a few options:

Starting with an internet search can be a fast and direct way to locate business loan brokers in your area. You might also visit your local secretary of state’s website and search for brokers that are registered or licensed in your state, although not all states require licensure.

Professional association websites, such as the American Association of Commercial Finance Brokers and Small Business Finance Association Broker Council, can also be useful resources to help connect you with reputable brokers.

Local Small Business Administration offices, Small Business Development Centers or similar business organizations might be good resources for finding business loan brokers. These organizations offer a variety of free resources and advice to help you finance and grow your business.

You can schedule an appointment with your local center to discuss your funding needs. Staff can help you decide if a broker is right for you and offer guidance for connecting with a reputable one.

Talk to fellow small-business owners in your area or in online communities and ask if anyone has worked successfully with a business loan broker. Getting a direct referral from another entrepreneur who had a positive experience can help you feel more confident that the broker is reputable.

Reading reviews on websites like Trustpilot or the Better Business Bureau can also give you a sense of what other business owners have said about working with an individual broker or brokerage.

How to choose the right business loan broker

A good business loan broker should have relevant experience, work with a wide network of lenders and be able to meet your unique financing needs. It can also be helpful to research or ask about a broker’s credentials and training, especially since licensure isn’t required and the profession isn’t subject to federal oversight.

Here are some questions you can ask a broker to help determine if they’re the right fit for your business:

• How many lenders will see my application? A broker should have a sizable network and be able to submit your application to several targeted lenders to help you get the best possible loan offer.

• What does your process look like? Before agreeing to work with a broker, you’ll want to understand exactly what’s included in their services and how they operate. If you want someone who will complete loan applications on your behalf, for example, make sure you express that upfront.

• How long does it normally take to get funded? Timelines may vary depending on the broker and their lender network. If you need financing quickly, you’ll want to make sure the broker has access to lenders who offer fast business loans.

• Do you make more money working with specific lenders? You want to make sure that regardless of the potential payment, your broker is still looking out for your interests and trying to get you the best loan offer.

• How long will I have to decide once I receive a loan offer? A broker should give you time — typically a few days — to consider an offer before you need to give a decision. If someone is pushing you to make a decision faster, you’ll probably want to find another broker.

• How do you charge fees? A broker should be upfront and transparent about the way they charge fees and how much their services will cost. Avoid brokers that won’t provide this information or ask you to pay their fees before securing you a loan.

• Do you sell my information to third parties? Make sure that your information is protected before agreeing to work with a broker. A business loan application contains a variety of personal data, and a broker should be transparent about what they do with that information when you ask.

Unfortunately, not all small-business loan brokers are reputable. As you research and compare different brokers, look out for anyone with these red flags:

• Isn’t concerned about your credit. Brokers need to check your credit to match you with a lender. Any broker claiming that they can get you a loan without a credit check is likely a scammer.

• Has limited contact information available. You should be able to find multiple ways to contact a broker — a phone number, email address, physical address and a website. If it’s difficult to find information about the broker, go elsewhere.

• Doesn’t have reviews or references available. A broker should have a list of previous business owners that they’ve funded and be able to provide reviews or contact information for references if you ask. If you can’t find reviews online, or the broker can’t provide any of this information, that’s a big red flag.

Alternatives to working with a business loan broker

Not all businesses need to work with a broker to get a loan.

Established businesses may be able to qualify for equally competitive interest rates on their own, and some small-business owners may prefer to handle the application process themselves. Other businesses simply may want to avoid paying a broker’s fee.

Here are two alternatives to consider when looking for small-business financing.

A business loan marketplace helps you streamline the process of applying for financing and comparing lenders. You fill out a basic loan application and the marketplace uses their technology to match you with potential lenders.

Some marketplaces help you submit your information to small-business lenders and can provide you with potential loan offers, whereas others simply pass your information along to their partners. Unlike a business loan broker, these marketplaces typically do not charge the borrower a fee.

Using a business loan marketplace can be a good option for accessing faster funding, although you likely won’t receive the same level of personalized attention as you would with a broker.

You always have the option of applying to individual lenders directly, whether submitting a simple application to an online lender or working with a bank to apply for an SBA loan.

Established businesses with strong credit and solid financials will likely be able to access competitive interest rates even without a business loan broker, and they can avoid paying a broker’s fee by applying with a lender directly.

Similarly, if you have a previous relationship with a lender — or are certain of the one you want to work with — you can save time and avoid additional fees by applying with it first.

Finding the right banking partner is crucial for entrepreneurs, as this relationship forms the backbone of how you process and manage your company’s finances. And if you call the Centennial State home, you probably want to learn more about the best banks for small business in Colorado.

The good news is that the best bank for small business needs in Colorado depends on what you’re looking for out of your banking relationship. The best banks for small business in Colorado each offer something unique and help them stand apart from their competitors. Whether that means getting a hassle-free SBA loan, finding a local business banking partner, or tapping into the resources of a national banking partner.

Here are a few of the best banks for small business in Colorado, defined by what gives each of them an edge against their competitors.

Before we dive straight into the banks for small business in Colorado, let’s first examine some of the key differentiators between business bank accounts. This can help you decide which is the best fit for your business, as you’ll be able to forecast your needs and desires from your account.

A local bakery that operates in all cash is vastly different than a small law practice that mostly accepts checks. Whereas the bakery needs the flexibility to make deposits and withdrawals frequently, a law practice might be better suited to open a business bank account that provides it with a path to grow into more feature-filled accounts as time goes on.

Before you consider the best banks for small business in Colorado (or any state, really), be sure you understand how your company’s financials work. If you don’t conduct a ton of transactions, you may not want to consider banks that give you this kind of flexibility at the expense of lower monthly balance minimums to waive fees. Alternatively, you might prioritize quick ATM access if you need to make cash deposits on the fly but would benefit from a bank’s online profile more greatly if ATM access isn’t as much of an issue for you.

Knowing how, when, and why you use your banking provider can help you whittle down choices, and give you a better chance of finding the right bank account.

The best banks for small business offer tiered checking accounts. The entry-level tier is perfect for new businesses with less cash in hand and fewer banking needs. Mid- and high-level checking accounts offer an increasing array of features, free items, and other options that help you run your business’s financials more efficiently.

Make sure you pick a bank that has several account options if you anticipate your company will grow, or if its financials might outgrow the bread-and-butter options provided with most basic tier checking accounts. Switching banks once your business is humming can be a frustrating experience, so choose wisely at the onset and spare yourself the hassle of opting for a new bank later on when you’re busier.

Larger banks may reward their business checking customers for staying loyal to the firm. If you have a credit card or personal bank account with a bank, they may offer incentives like monthly fee waivers, additional items (like deposits and wire transfers), or make balance transfer a smooth and pain-free process.

If you haven’t already opened a business credit card, think about applying for one at the bank where you do your daily business checking. You may receive a few perks just for keeping your financials under one roof.

The truth is that most business checking accounts are more alike than they are dissimilar. Each offers a debit card, a set number of free withdrawals and deposits, and just about every one of them provides some level of online banking for their customers’ convenience.

Since most banks for small business in Colorado share similar features, the best way to rank each of them is by looking at one specific area in which they shine. That’s why we’ve paired one positive attribute with each of the banks below, helping you decide which one might be right for you based on your specific business needs.

The Bank of Colorado offers a one-two punch for small business owners. The bank’s Business Free Checking is free from fees and offers 500 free transactions per month, including debits, deposits, and checks. Plus, they’re only found within Colorado, making them an attractive option for small business owners in Colorado who would prefer to bank with a local company than a nationwide chain.

Bank of Colorado isn’t just one of the best banks for small businesses in Colorado because of its free checking and local presence. The bank also offers two other account tiers—Corporate Business Checking, which is designed as the Bank of Colorado’s middle option, offers credit on its account holders’ balances, which offsets service charges. This account’s $8 monthly fee and lack of a minimum balance requirement make it a great option for companies that need a little extra support. On the higher end of the spectrum, Bank of Colorado’s Commercial + Interest Checking helps you earn interest on your account balance and only costs $12 a month.

Banking locally isn’t perfect for every business, of course. That’s where U.S. Bank can be a perfect fit as a small business bank in Colorado. U.S. Bank can be found in 40 states with 3,013 branches spread across them. There are at least 20 U.S. Bank ATMs in Colorado alone, which makes banking on the go an easy process.

U.S. Bank offers four business account levels—Silver, Gold, Platinum, and Premium. U.S. Bank Silver checking provides account holders with the everyday staples they need to run their business. You’ll get 150 free transactions per month, with additional charges costing $0.50 each. You’ll also get 25 free cash deposits and won’t have to pay a monthly fee to keep the account open. U.S. Bank Gold and Platinum options cost $20 and $25 each, but come with 300 and 500 free transactions per month, as well as 100 and 200 monthly free cash deposits, respectively. Premium accounts come with terms that are determined on a case-by-case basis since they’re designed for larger companies that need additional support.

Community Banks of Colorado offers local banking solutions for Colorado’s small business owners. The bank is part of a network of regional banks in other states, which means that it has a slightly different outlook than some of the larger, national banking providers. At the heart of Community Banks of Colorado’s mission is simplifying the banking process for its clients, which is an additional perk for small business owners who may not have the kind of time or resources to actively monitor their banking relationship.

Community Banks of Colorado offers five levels of checking support for small business owners. Its entry-level tier, Small Business Checking, only requires an initial $100 deposit to open an account. The $10 monthly service charge gets waived with a $1,000 minimum daily balance, an average daily balance of $2,000, or by spending $1,000 per month through debit card purchases. In return, you’ll get mobile deposit support, bill pay help, and 150 free transactions per month. Small Business Interest Checking, Business Checking, and Business Performance Checking come with different levels of free transactions, listed fees, and monthly cash deposit and withdrawal limits.

The Colorado Business Bank aims to give its clients the personalized attention that comes with banking locally, all while having the same product range of a larger banking institution. Their strategy helps back up this claim too: the Colorado Business Bank offers a ton of variety within each of its business banking options. Colorado Business Bank Basic Checking offers the run-of-the-mill features you’d expect from most entry-level bank accounts, while Business Banking Essential Checking and Business Complete Checking each provide tailored products to help medium- and large-scale companies reach their goals.

There are plenty of other options out there as well, specifically for non-profits and high-balance business accounts. If you want to sign up with a bank that can grow alongside your business, Colorado Business Bank might be the right option for you.

Chase is a great option for companies that plan to expand. This bank offers accounts with plenty of great features, and a local branch or ATM can be found almost anywhere across the United States. With Chase, you’ll be able to count on the support of a nationwide bank, as well as enjoy the flexibility of withdrawing or depositing money when you’re on the go.

Chase also offers three business checking accounts to fit your need depending on where your business is at the moment—as well as where it’ll go in the future. Chase Business Complete Banking is the bank’s entry-level checking product that provides access to free, unlimited non-wire electronic deposits which can be great for people who do most of their transactions electronically.

Chase Performance Business Checking takes the perks of the Business Complete Checking a step further, offering 50 fee-free transactions per month. Any additional transactions cost the same $.40 cents. You’ll also get unlimited electronic deposits and incoming wire transfers. You can also make $20,000 in cash deposits every month with no fee. Chase Platinum Business Checking is the top-tier option, providing 500 free transactions every month. You can deposit $25,000 in cash every month without a fee, and accept four incoming domestic wire transfers without encountering a fee.

If you’re looking for the best banks for small business in Colorado, the good news is that you’re awash in a ton of great options. Most account offerings are similar in their own right, but each bank offers a competitive edge that sets it apart from its competitors. The best way to decide which Colorado bank is best for your small business comes down to what you and your business need the most—if that’s personalized attention, national scope, or a wide variety of options, there’s a bank out there to help you focus on what matters.