Entrepreneurs and small business owners need access to capital to start new enterprises, grow capacity and keep businesses running. You’ll want to find a business loan with reasonable interest rates, low fees and a small or no prepayment penalty. Our partners at ConsumerAffairs researched the best business loans in Bakersfield to find the ones that will help your company grow.
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Bakersfield is a growing city, and business loans help small businesses grow to cater to the needs of an expanding population. Start-up businesses need capital to bring ideas to market and reach potential customers.
Some Bakersfield residents have chosen to take advantage of the county’s many acres of rural land, and small farm and agriculture businesses are popping up in the area. Vineyards, horse ranches, hobby farms and other types of entrepreneurial ideas are taking shape. Special types of business loans are available for agricultural businesses in Bakersfield.
Types of business loans
Loans in which the borrower receives upfront funding and repays it over a specified term.
Business lines of credit:
Loans that are similar to credit cards. The borrower can use funds up to a predetermined limit and only owes interest on the funds they use.
Loans that are partially guaranteed by the U.S. Small Business Administration and offered through partner lenders.
Small loans that are generally under $100,000. Microloans are often available from alternative and online lenders.
Loans used to purchase business equipment. These loans usually require a down payment and use the purchased equipment to secure the loan.
Many lending institutions have financial advisors to help you determine which type of loan works best for your business. There are also additional business resources available in Bakersfield, including The California State University Small Business Development Center, located on the CSU-Bakersfield campus, which offers guidance and resources for aspiring entrepreneurs in Kern County.
To apply for a business loan, a business owner must prepare for an examination of the company’s finances. Factors lenders may look at when considering your business for a loan include:
How long the company has been in business
The credit history of the business
The borrower’s personal credit history
The company’s annual revenue and cash flow
Any documentation of finances (ledger, bank statements, etc.)
The company’s business plan
Available collateral or personal guarantee
Secured loans are tied to collateral, which may be equipment, stock, vehicles or unpaid invoices. Unsecured loans are granted without collateral and generally have higher interest rates because the lender is at more risk. Some types of loans require a down payment, such as U.S. Small Business Administration (SBA) loans and equipment loans.
Small business borrowers often choose short-term loans for quick access to capital and the brief repayment periods. Long-term loans have a more rigorous application process and an extended repayment period. Terms range from six months to ten years or longer, depending on your loan. Be sure to ask about prepayment penalties for both types of loans.
Online and alternative lenders offer options for borrowers with poor credit. Online lenders provide funding from in-house or work with a network of lenders to find the right match for your business. Banks and lending institutions set their own requirements, so some lenders are more likely to work with borrowers with poor credit than others.
In 2018, California adopted the nation’s first truth in small business lending law, which is designed to create transparency by requiring lenders to clearly communicate the terms of the loan. At the time the financing is
offered, the lender must disclose:
The total amount of financing
The total cost of financing
The term length of the loan
The frequency and amount of payments
Policies regarding loan prepayment
The annualized rate of the loan
This information lets you compare offers to find the best loan for your business. By partnering with the right lender, you’ll take advantage of the current growth in Bakersfield and help your company flourish.
Seek Business Capital
Seek Business Capital is a national online lender that offers business funding procurement. Start-ups in Bakersfield appreciate the company’s range of services, including viability assessment and business plan protection. Reviewers praise the professionalism of customer service agents and say they were able to get new businesses off the ground with the company’s help.
Imperial Advance works with lenders to find the best loan options from third-party lenders. Bakersfield business owners hoping to expand their construction or landscaping businesses to take advantage of the booming homebuilding here will appreciate the range of industries that receive funding through Imperial. Local reviewers praise the helpful customer service team.
National Business Capital is an online lender that can secure funding in 24 hours in some cases. They have no minimum credit score requirement and will lend to new companies that have been in business for as few as six months. Bakersfield borrowers say they appreciated the personal follow-up on their business loans.
Bank of the Sierra
Bank of the Sierra serves Central California with several locations and offers small business loans starting at $1,000. Bakersfield business owners can take advantage of their agricultural lending, which offers multiple types of loans designed for agribusinesses. Reviews from Bakersfield laud the company’s customer service, especially at the central Bakersfield location.
Union Bank offers small business financing in California, Oregon and Washington. The bank offers loans beginning at $5,000 and has three locations in Bakersfield. Some Bakersfield clients found customer service to be friendly, but others said they had trouble getting assistance from the bank’s staff.
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