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Acquiring a business loan is important to supporting and maintaining your business. With a business loan service from Business Funding Firm, our team of lending experts can help you secure a loan to finance your business and offer consultation about your lending options.
Why a Business Loan?
Business Loans are arguably the best option when it comes to business funding. With interest rates ranging as low as prime plus 1% for SBA Loans to private lenders with an interest spectrum anywhere from 6 -12%. Repayment terms are typically paid back within a term period ranging from 1 to 30 years, making them ideal for a substantial amount of upfront capital with minimal immediate sacrifice of liquidity.
It is important to do your research before applying for a loan, because there are many options out there and it can be overwhelming. For instance, Merchant Cash Advances can be a life changer if you are in a pinch, but with an average interest rate of 20-250%, many businesses have bankrupt themselves trying to keep up with the payments.
Realistic Expectations
The fact of the matter is, lending money to a business can be very risky, especially for the lender. If we don't study the past, then history will inevitably repeat itself. Many a business have borrowed money and defaulted on the repayment terms in America over the last few centuries, making it virtually impossible to receive funding without proper criteria first being met. Alas, there is hope as long as you have done your research and can properly prepare yourself for the bank!
It is always wise to have a plan in place when considering borrowing money for your business. You will want a plan in place for the following items:
Proper Planning
- What the money will be used for
- What type of loan your business is considering
- What type of repayment terms you are looking to receive
(Once we have addressed the above items, it is time to determine which type of loan will work best for our business!)
Business Loan Service
1. SBA Loan
The main purpose of the Small Business Administration (SBA) is to aid and assist businesses in location and resources to find the funding they need.
The (SBA) is the cream of the crop when it comes to business loans. They aren't the actual lender, but they do insure a large percentage of the loan, eliminating much of the risk of the financial institution providing the loan.
SBA Loans range from $50,000 - $5,000,000 and repayment terms are on average of 10-30 Years. The Most Common Types of SBA Loans are as follows:
Types of Business Loans
Most Common SBA Loan Types
SBA 7(a)
- SBA 7(a) Loan Program, SBA’s most common loan program, includes financial help for small businesses with special requirements. This is the best option when real estate is part of a business purchase, but it can also be used for:
- Short and long-term working capital
- Refinance current business debt
- Purchase furniture, fixtures, and supplies
The maximum loan amount for a 7(a) loan is $5 million. Key eligibility factors are based on what the business does to receive its income, its credit history, and where the business operates.
SBA 504
- SBA 504 Loan Program provides long-term, fixed rate financing of up to $5 million for major fixed assets that promote business growth and job creation.
504 loans are available through Certified Development Companies (CDCs), SBA's community-based partners who regulate non-profits and promote economic development within their communities. This Loan is typically more difficult to get approved for since it is geared towards development projects in the community encouraging new job opportunities. Due to the strict application of funds from the loan, the underwriting generally requires a far more thorough examination for approval.
SBA Express Loan
- SBA Express Loan Program provides exactly what its title implies. The SBA Express Loan is a loan that providing you meet the requirements, is processed within 36 hours and is approvable for up to $350,000.
2. Short Term Loan
Short Term Loans are an amazing option if you need up to $500,000 in a short period of time and don't mind repaying it within 1 - 3 years. Similar to SBA Express loans, Short Term Loans can be processed in as little time as 24 hours and typically carry rates of about 8%.
The underwriting criteria is generally pretty relaxed as long as you have good personal credit, have been established for a couple of years, and have proven revenue. In some cases, the short-term loan may need to be secured with collateral. This could be a vehicle, a home or property, or any sizeable asset.
3. Business Term Loan
Business Term Loans are exceptional if you are trying to gain access to up to $2,000.000 with terms between 1 and 5 years for repayment. Business Term Loans are probably the most common Loan type used for small business owners.
The interest rate on a Business Term Loan usually starts at 6% and is fixed, so you can count on the payment to stay the same throughout the tenure of the loan. They are pretty fast to fund also, so you can see the payment to your account as early as a couple of days.
One of the most noteworthy features of this loan is, it's easy to identify how much you are able to afford to borrow while remaining less stressful to pay back.
4. Bridge Loan
Bridge Loans are short term financing that allows the borrower time to establish long term financing or remove the existing obligation. It will allow the borrower to meet current obligations by creating immediate cash flow. Bridge loans are short term, (Usually up to 1 year) have high interest, and typically require some sort of security (real estate or inventory).
When securing funding, Bridge loans can be the deciding factor of whether or not your business is "fundable".
Apply for Bridge Loan
Apply For a Business Loan Now!
One of our business funding experts will reach out to you directly to let you know what you qualify for.
We do not rent, sell, or share your information.
What if I don't Qualify for a Business Loan?
Of the different types of funding that are available, Business Loans are of the most difficult to receive an approval. This is specifically due to the requirements for being approved.
Not every business is going to have established time in business with tax documents, high revenue and bank statements showing that they meet these criteria.
That is precisely why we have identified alternative funding methods for your business!
Business Loan Alternatives
Business Credit Card Funding
With our proven strategy, this strategic option allows us to help your business secure $50K - $150K in business credit card approvals! Many of the business credit cards also have amazing introductory terms consisting of 0% APR for a period of 9 -18 months! Due to the relaxed underwriting criteria and the added bonus of introductory terms, this can be a great option to help your business gain access to the funding you need!
This Method will require a minimum of a 700 personal credit score as well as a minimum of $25,000 in available credit card limits.
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I don't qualify for Business Loans or Credit Card Funding
Non-PG Business Credit Course
Our Business Credit Course was developed for clients that may or may not have good personal credit, may be a newly established business, or maybe it's an established business that needs to secure business credibility.
A business still has access to build business credit without meeting any of the required qualifications for business credit cards. We can teach you how to secure up to $50,000 in brand new, non-personally guaranteed business credit approvals in a 6-month time frame!
The only requirement for this funding method is a properly structured business and a tax identification number to get started!
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