Small-Business Loans

 

As a Small Business Owner, you need to solve challenges daily and invest money in your business to grow it, while setting aside enough money to cover operational costs. Fortunately, you have the option to make use of business loans and other financing programs to cover expenses. There are many different types of loans and programs that can be used for a variety of expenses, from equipment, to inventory, to cash flow, and expansion. Below you can learn about some of the finance programs available to Small Business Owners.

 

SBA 7(A)

This is the most popular basic loan program available from the Small Business Administration. SBA 7(A) loans can be taken out in the maximum amount of $5 million and the terms of these loans are seven years for working capital and equipment, and 25 years for real estate. 

 

Funds from the loan can be used for equipment purchases, working capital, construction, rehabilitation, debt consolidation, or refinancing existing loans and acquisitions.

 

SBA 504

This is another small business-friendly loan from the Small Business Administration, with low-interest rates, a 10% to 20% down payment, and 10 to 25 year terms. The funds are capped at $20 million and can be used for expenses including machinery, equipment and real estate. Most 504 loans are approved for established businesses. 

 

USDA – B&I

This is a loan program geared toward credit-worthy rural businesses, to assist with securing credit for necessary business expenses. B&I loans can offer better terms and pricing than many conventional loans, with variable or fixed interest rates, and can be used for refinancing, construction, and acquisitions. 

 

Unsecured Commercial Line Of Credit

This type of line of credit provides a revolving credit limit without requiring the borrower to offer up collateral to secure it. A business line of credit is different from a term loan, which provides a one-time lump sum of cash that is repaid over a fixed period of time. With a business line of credit, you can keep reusing it and repaying it as often as you like, as long as you make payments on time, and don’t exceed your credit limit. 

 

Merchant Cash Advance

A Merchant Cash Advance isn’t technically a loan, but it’s a financing option that allows your business to get access to capital by utilizing future credit card sales. This type of program offers flexible financing based entirely on your sales, and you can receive funding without putting up personal assets or real estate as collateral. 

 

Business owners can use this money for business growth, such as buying new equipment or inventory, business expenses, such as working capital, or business opportunities, like expansion or opening a second location.  

 

Purchase Order Financing

If a business is struggling with the required cash flow to pay for supplies or inventory, purchase order financing can be used to help. This type of loan is unique because instead of transferring funds into the business’s bank account, the lender sends an advance directly to the company’s supplier to fulfill the order. 

 

Commercial Mortgage Loans
Commercial mortgages help business owners to buy or refinance land or a building that is used for business. Most commercial mortgages are fixed-rate, meaning the interest rate will remain the same throughout the term of the mortgage. Commercial mortgages can help business owners to buy a new building, upgrade or refinish a building, or even to purchase a new location. 

 

Dental and Medical Practice Loans

There are a variety of special loan programs specifically geared toward business owners who are medical and dental professionals. There are loan programs for working capital, operating expenses, as well as unique programs for medical equipment financing. 
 

Franchise Financing

Franchise loans and financing programs help franchise owners to both capitalize on new opportunities and cover upcoming expenses. Franchise owners looking to serve more  customers may need funding to expand their locations, perform mandatory remodeling, or to upgrade their equipment, and franchise loan programs can help franchise owners to access the financing they need without tapping into their working capital. 

 

Accounts Receivable Financing
This type of financing helps business owners to obtain capital by using receivables as collateral, so companies can finance their accounts receivable from clients they offer terms to. Basically, a business sells their invoices to a lender, which serves as collateral, so the business owner does not have to put up assets or real estate to qualify for this type of funding. A major benefit of Accounts Receivable Financing is the dependable cash flow it provides. 

 

Bridge Loans

A Bridge Loan is a financial product that functions as a short-term amortizing loan to support projects or investments that are expected to generate returns. This product is intended for businesses with an investment objective that is  expected to generate a high return, and for short-term financial support. When considering this type of loan, a business owner should evaluate their objectives for short and long term growth, consider expected seasonal fluctuations, and investigate sources of conventional funding before applying for a bridge loan. 

 

CannaBusiness Financing

This lending program gives aspiring cannabis entrepreneurs in all areas of the industry the resources they need to grow their business. In an industry where most applicants had received rejections in the past, this financing solution is a new choice for cannabis companies seeking cost-effective financing.