South State Bank Small Business Loans

South State bank is the largest bank in South Carolina and is a subsidiary of South State. The bank headquarters are in Columbia, South Carolina, and there are offices in North Carolina, Georgia, and Virginia as well. The bank was founded in 1933 in Orangeburg, South Carolina, and has assets worth one billion dollars.

South State bank also offers several borrowing and lending options such as business and commercial loans. In addition, the bank also offers SBA loans, and we have discussed them below.

18.SBA (7A)

The SBA (7a) loan program is the most common time of SBA loan, and only small businesses are eligible for this loan.

Types of Loans offered by South State Bank

1. SBA (7A)

The SBA (7a) loan program is the most common time of SBA loan, and only small businesses are eligible for this loan.

2. Capital Expenditure Financing

The Capital expenditure financing offered by South State bank will help grow your business by providing experts. The bank offers strategic financial solutions that are cost-effective and practical. These are the ways the bank can help you:

3. Working Capital Line of Credit

The South State bank working capital lines of credit are designed for commercial businesses and offer them flexibility and a consistent cash flow.

4. Public Sector Financing

The South State bank public sector financing is designed to meet all the challenges faced by the public. The bank will also provide experts who will help find financial solutions. This financing is for:

5. Acquiring Finance

The South State bank offers acquisition expertise through acquisition financing.

South State Bank Interests, Fees, and Loan Options

55.SBA (7A)

56.Capital Expenditure Financing

57.Working Capital Lines of Credit

58.Public Sector Financing

59.Acquiring Finance

What Lending Criteria does South State Bank Have?

Below is the basic lending criteria that all the banks follow:

Credit Score

Credit is the most important component of all types of businesses, whether they are small or large. Lenders will always analyze the business's credit score and then decide whether it can pay the loan or not. Therefore, the best way to maintain a healthy credit score is to pay your dues on time.

Credit scores can also be easily obtained from several agencies such as Equifax, Dun & Bradstreet, and Experian. Another way of maintaining a positive credit score is to have a low debt-to-income ratio. Lenders will not invest in businesses that don't have a good credit score.

Annual Revenue

Another important factor that the lenders will review is the annual revenue of the business. Most lenders will only lend to those businesses that have been profitable for the last two years or more. Businesses need to make sure that all the financial statements are accurate and up to date.

Lenders will also look at specific details such as the current account (current assets divided by liabilities) and ask for copies of bank statements and transactions. However, businesses will only be eligible for a loan if their cash flow is growing.

Business Plan

A minority of lenders might not ask for a business plan, but most of them do, and businesses need to come with a clear and concise proposal. Usually, lenders require the business plan to know the purpose of the loan and discuss the business's stability.

One of the main components of business plans is the resumes of managers and staff. However, despite having a clear business proposal, the lenders will still ask for proof of the staff's ability and relevant credentials and experience.

Collateral

Collateral is an essential requirement, and most lenders will not provide a business loan if it cannot give collateral. Collateral can be anything like equipment or property. The collateral will also decrease the risk for the lender as it will have an asset in hand, so if the company fails to pay the loan, the collateral can be paid to fund the damages.

The owner of the company needs to provide a personal guarantee and will also need to submit some essential documents:

Time in Business

Most banks are hesitant to lend loans to new companies that have been active for just a few months. Lenders cannot trust small businesses or startups that have just entered the market because they don't have a proper credit score and the cash flow is usually unstable. Banks will most likely lend to businesses that have been active for more than two years.

South State Bank Application

Following is the application procedure of all the banks that borrowers have to follow:

Before you apply for a loan, ensure that all your documentation is up to date. Also, organize all the documents properly, and if some essential documents are missing, contact the relevant authorities. Collect all the financial information about your business and pay all the dues as soon as possible.

For more information, check out the website of South State bank.

Requirements for SBA Loans

For more information on SBA loans, click here.

Summary of South State Bank Loan Options

South State Bank is one of the largest banks in the state of Southern California; it was founded in 1933 in Orangeburg, South Carolina, and has assets worth one billion dollars. The bank is also committed to helping small businesses during these testing times, offering SBA-backed loans. South State bank also offers a variety of different loans, and they have been listed below:

SBA 7(A)

Working Lines of Credit

Capital Expenditure Financing

Business Acquiring Financing

Public Sector Financing

While the interest rates and fees of most loans are unavailable, unfortunately, there are a few important details that borrowers should consider. The SBA loan will charge a small % of the loan, usually 0.25 or 0.50 %, and the interest rate is variable. Lines of credit don't have any fees attached to them; they will provide the business with the capital it needs for a specific period, however, the borrower cannot exceed that limit.

As far as the other loans are concerned, their fees depend on the bank, and their interest rates are dependent on the market. Therefore, borrowers should keep these important details in mind before they apply for a loan.

Before choosing a loan, make sure that you read the eligibility details. Prepare all the necessary information, improve your credit history and make arrangements for the collateral as well. If some documents are missing, inform the bank or contact the necessary authority. If important documents are missing, the bank will not lend the loan to you, especially if you have a small business or a startup.

For more information regarding loans, learn more.