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Find the Best Business Loan Companies in Billings, MT

Whether you need funding for a startup in Lockwood or want money to expand your farming business in Worden, it’s important to find a business loan with the right terms. The Billings Gazette has partnered with ConsumerAffairs to create this guide by comparing customer reviews and loan selection of 23 businesses and choosing seven favorites from the top commercial lending companies in Billings.

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Compare Billings Commercial Lending Companies

Types of business loans in Billings

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Just like there are many different types of businesses, there are many different types of business loans. The loan that makes the most sense for your business depends on how much money you need, the payment terms that work for you and what you plan to use the money for. Here is a breakdown of some of the most common business loans Billings entrepreneurs and business owners use to fund their businesses:

  • Equipment financing loans: Businesses that require heavy specialty equipment, like construction, forestry and oil and gas equipment, use equipment financing loans to help them pay for the machinery that they need. This type of loan can also be used to purchase business vehicles that transport your goods and services throughout the city.
  • Startup business loans: This type of loan is designed to get first-time business owners the money they need to start their business. One type of startup loan is an SBA Microloan. These loans can give business owners up to $50,000 for their new business and can be used to buy supplies or as working capital.
  • Business term loans: When it comes to business term loans, you have two options: short-term and long-term. A short-term loan is repaid quickly. A long-term business loan gives you up to 10 years for repayment. The business term loan you choose depends on how much you need and your plan for repayment.
  • Commercial mortgage loans: If part of your business plan is building an office space or buying an office space, you may need help paying for the property. Commercial mortgage loans and business real estate financing help Billings entrepreneurs and business owners pay for the space they need to do business.
  • Merchant cash advances: A merchant cash advance is a way for business owners to get a lump sum of money in a short amount of time. The repayment of the cash advance is based on revenue. When sales are up, you'll be paying more back to the lender. The annual percentage rate (APR) on a merchant cash advance ranges from 40% to 350%, so merchant cash advances are an expensive form of borrowing money for a business.
  • Business lines of credit: Business credit cards and lines of credit allow business owners only to spend what they need, instead of taking out a large lump sum that has to be repaid plus interest. The flexibility of business credit cards allows entrepreneurs and business owners to stay on top of their expenses while taking advantage of reward programs and points. Business lines of credit have lower interest rates than business credit cards but don’t come with rewards programs.
  • SBA loans: An SBA loan is designed to help small businesses operate, start or expand their business. This loan can be used for commercial real estate, mortgages, working capital and any other expenses associated with starting a business. SBA loans are popular because they have lower down payment requirements.

How to get a commercial loan in Billings

Once you've done the research and have decided which business loan is right for you, it's time to start the application process. This process varies throughout Billings, as different lenders have different requirements for approval. For example, some lenders have a strict requirement when it comes to lending to people with bad credit, while others are more flexible. Here's what you can generally expect when applying for a business loan in Billings:

  • Documentation: Lenders will want to have as much information about your financial history as possible before approving you for a business loan. You will be required to provide documentation proving your financial history and current financial status. Some documents you may be required to present include bank statements, loan application history, income tax returns, business leases, projected financial statements and bank statements.
  • Credit Score: Credit score requirements vary between different types of loans. For example, you typically need a minimum credit score of 640 for an SBA loan, while a business term loan may be available to borrowers with a lower score. Just like with any loan, the better your credit, the lower your interest, and the more flexible your repayment terms.
  • Application process: If you are seeking a business loan from a local bank, you'll need to make an appointment with a loan officer so they can look over your documents and application. If you are thinking about using an online marketplace like SmartBiz Loans, the application process is typically a lot faster and you know whether or not you're approved soon after.
  • Collateral and fees: Business loans are designed to give business owners the capital they need to start their business, but there are fees associated with this assistance. Before you apply for a loan, ask about some of the most common fees associated with business loans, such as:
    • Origination fees
    • Prepayment penalties
    • Late payment fees
    • Withdrawal fees
    • Transfer fees

The annual interest rate on an SBA loan is between 7% and 10%. You also must consider what you have to put up as collateral for your loan, if necessary. It is important to consider all of the costs and risks associated with taking out a business loan to make sure it’s a smart financial decision for your business.

Billings business loan FAQ

How do you qualify for a small business loan?

A lender will examine a variety of aspects to determine if you qualify for a loan. It will look at your credit score, credit history, business plan and current financial situation. Apply with various lenders to get a loan with the most favorable terms.

How much can I borrow for a small business loan?

Billings business owners can borrow up to $5 million with an SBA standard 7(a) loan. The maximum loan amount depends on your qualifications and the lender.

What is a 7(a) loan?

A 7(a) loan is an SBA loan designed to offer financial assistance to small businesses. An SBA 7(a) loan has a maximum amount of $5 million and a maximum term of 25 years.

What business development resources exist in Billings?

Business development resources in Billings come from the Billings Chamber Of Commerce, the Montana Small Business Development Center and the Billings Chapter of SCORE.

Billings business loan company information

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SmartBiz Loans

SmartBiz Loans offers SBA and bank term loans online. You can see if you pre-qualify by filling out a short form on its website, which does not impact your credit score. With SmartBiz Loans, you can get an SBA loan for between $30,000 and $5 million and repayment terms ranging from six months to 25 years.

SmartBiz Loans (866) 283-8726
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National Business Capital & Services

National Business Capital & Services connects Billings business owners with an expansive network of over 75 trusted vendors. You can fill out an application online and get approved in 24 hours. Small business loans offer flexible financing and payment terms from six months to 10 years. The company also offers equipment financing. Loans up to $5 million are available.

National Business Capital & Services

Currency

Currency offers financing for heavy machinery and special equipment. Business owners can apply online in less than three minutes and use the funds to buy equipment anywhere in the U.S. There are no prepayment penalties. Currency offers 72-month terms and loans up to $500,000.

Currency

Western Security Bank

Western Security Bank offers equipment loans, commercial real estate and construction loans, SBA loans and agricultural loans. The agricultural loans can be used for all types of farming and livestock operations, the acquisition of farmland and the purchase of machinery. To apply, you can meet with a staff member at one of the bank’s locations or apply online. Western Security Bank’s downtown location is at 2812 First Ave. North, Billings, MT 59101.

Western Security Bank

First Interstate Bank

First Interstate Bank helps Billings business owners with financing for commercial real estate. The company also offers SBA loans to help with equipment purchase or working capital. If you have an existing business, the SBA loan can be used to make major business improvements. For farmers and ranchers, the company offers agribusiness loans that can be used to purchase livestock, crops, machinery and farm equipment. Visit First Interstate Bank at 830 Shiloh Crossing Blvd., Billings, MT 59102.

First Interstate Bank

First Federal Bank and Trust

First Federal Bank and Trust assists growing businesses in many ways. The company’s term loans can be used for commercial vehicle financing, computer equipment, or manufacturing production and equipment. The company offers business lines of credit to help with short-term capital needs and flexible payment plans and leasing for computers, construction equipment, medical equipment, office equipment and more. Short- and long-term SBA loans are available. Visit First Federal Bank and Trust at 1575 Shiloh Road, Ste. H, Billings, MT 59106.

First Federal Bank and Trust

Beartooth Bank

Beartooth Bank offers business loans for a variety of industries, including construction, commercial and agriculture. The company has specialty loans designed for livestock, equipment and operations for the farmers and ranchers of Montana, and can also help with the purchasing of rental properties or lines of credit for commercial business owners. Beartooth Bank is located at 4130 King Ave. West, Billings, MT 59106.

Beartooth Bank