Funding For All Your Business Needs
Business Line Of Credit
A business line of credit is revolving, so rather than receiving a lump sum, you can access the money as many times as required. There’s no pressure to dip into the money, but it’s always there. Whether you’re using it to purchase equipment, add inventory, hiring staff, expand to a new location, pay invoices, or add a vehicle to your fleet, you’ll only pay interest on the exact amount of money you use.
The SBA assists small businesses that are disadvantaged and might not be able to get help otherwise. SBA loans are unique because the aforementioned agency isn’t actually the lender. Rather, it guarantees a substantial portion of each loan, which reduces other lenders’ risk and makes them more willing to approve your request.
The SBA offers an array of loans to small business owners. Here are a few of the most popular options:
- SBA 7(a) Loan: This loan is the most popular and can be used for all kinds of purposes. If you’re seeking less than $25,000, you might not be asked for collateral. $350,000 or higher, you might need significant collateral to address the risk of default. 7(a) loans can be awarded for as much as $5 million to those who meet all the qualifications.
- SBA 504 Loan: These loans are mainly used to fund projects, so they require more research and examination for approval. Normally, your business must have a net worth above $15 million and an average net income of $5 million or less. Qualifying projects include buying an existing building, building a new facility, buying land, and buying long-term machinery. The benefits to these loans include fixed interest rates, 90% financing, longer amortizations, and no balloon payments.
- SBA Express Loan: As the name implies, this type of small business loan is extra fast. As long as you meet the requirements, you can finance up to $350,000 with an SBA Express. Expect to have your application reviewed in 36 hours or less.
Short Term Loan
Many entrepreneurs use short term loans for times when they need quick solutions to pressing circumstances. So whether you need to pay for unexpected expenses, hire new staff, endure a sales slump, replace a broken piece of equipment, or take action on an exciting business opportunity, a short term loan can be a solid option. Because they’re built for speed, the amounts for these loans only go up to about $500,000. You’ll also need to pay that amount off quickly, generally within 1-3 years.
Business Term Loan
The loan amounts range from $5,000 all the way up to $2,000,000.
Plan on your business term loan repayment terms to be somewhere between 1-5 years. These loans have a fixed interest rate or flat fee, so the payments will never go up during the lifetime of the loan.
Merchant Cash Advance
With a merchant cash advance, you borrow against your future earnings to secure the financing you need. Once you’ve been approved and the funds are advanced to your account, you’ll begin repaying the loan by having an agreed upon percentage of your daily credit card deposits withheld for the lender. Your advance can be used for myriad purposes, so this type of financing has earned a reputation among entrepreneurs for being very flexible.
Equipment loans fall into the all purpose financing. With amounts available up to $5,000,000, you can use them to purchase any kind of equipment your business might need. And that’s where the name is a little deceiving. When most people hear the word “equipment,” they think of things like backhoes, trucks, forklifts, tractors, cubicles, refrigerators, trailers, conveyor belts, and trash compactors.
This type of financing can also be used for less obvious equipment, such as payment processing programs, solar panels, or accounting software for your office. The point is, if the purchase will help to equip your business for its needs, it probably meets the criteria.
One great thing about this type of small business loan is that you can access the money quickly. After submitting your application, you may see funds in as little as 24 hours.
You can use a commercial mortgage to get out of a lease and begin the next stage of property ownership. You can leverage the financing to purchase a business location you’ve always wanted. If you’d prefer to build, you can use a commercial mortgage to pay for the construction costs. For those looking to expand their existing property, you can use it to add square footage. And if you’re working with an older location that needs some updating, such a restaurant or retail store, this financing can be just the ticket. Finally, you can use a commercial mortgage to refinance to extend your payment term or secure a better interest rate.
This financing option is an asset-based loan, so the amount and rate of your commercial mortgage will be based on your credit and the value of the property you’ll be using as collateral. You can expect amounts ranging from $250,000 to $5,000,000. The interest rates are usually on the lower end, starting around 4.25%, with terms in the neighborhood of 20-25 years. These terms make it an affordable type of financing that will save you a hefty sum over the lifetime of the loan.
Business Acquisition Loan
A business acquisition loan is one of those small business loans designed for a specific purpose: buying an existing business or franchise. With a business acquisition loan, you’ll get anywhere from $5,000 to $5,000,000. The terms can be revolving or for 10-25 years.
Accounts Receivable Financing
If you’re like most businesses, you frequently deal with unpaid invoices. The situation is so prevalent that experts estimate our nation’s businesses have a total of about $825 billion in unpaid invoices. Having people owe you money is part of business, but when those people never pay you, it can be a business killer.
Accounts receivable financing (sometimes referred to as factoring) is tailor-made for the times you need money but have money held up by unpaid invoices. With this type of financing, you’ll receive the money you need by selling your purchase orders or receivables. The amounts vary, but you can often get up to 80% of your receivables. The money arrives in as little as 3 days, and the loan term can last up to a year. As for the factor rate, it’s as low as 5%.