Small Business Loans
The best loan options for
your small business
Can my small business qualify for a loan?
Many small business owners depend on borrowed money to launch, fund, and expand their operations; however, they frequently think their credit is insufficient to qualify for a loan.
There are more possibilities than ever depending on the type of company requirement, a business’ credit history, revenue, length of operation, possession of sufficient collateral, and other variables. And every small company lender assigns a different weight to each factor.
Small enterprises have traditionally gotten their loans from local banks, which are still an option for those that can meet their occasionally rigorous requirements. Once you comprehend the range of potential loan options, including interest rates, loan amounts, and term lengths, there are other possibilities that might make sense for your company.
Key benefits of small business loans
Fueling Growth: Many small business owners wish to expand their enterprise, but doing so may call for a large financial outlay. You can make investments in your company without using up all of your capital with a small business loan. You may use the money to expand to a new site, fund marketing initiatives, recruit more workers, and other things.
Purchasing Equipment: When business-critical equipment breaks down, a short-term small business loan can let you resume operations without having to commit to a four-year or longer credit term.
Renovation and other project investments: Occasionally, starting a new project needs upfront costs that may be above a company’s cash flow capacity, but which will be recovered in 60 or 90 days as the customer(s) pay their invoices. In that situation, it would make more sense to be able to swiftly enter and exit the financing at a lower overall cost than to make payments on a loan with a longer duration over a number of years.
Bridging seasonal cash flow gaps: During the downtime between their busy seasons, many seasonal firms borrow money to cover transient cash flow needs. In order to do this, the company must be sure that it will have enough cash flow during that lean time to cover the bigger recurring payments frequently associated with a short-term loan.
Unexpected challenges and opportunities: Running a small business can be full of surprises, both possibilities and challenges that are unanticipated. A small company loan can help you make sure you don’t pass up an opportunity because you don’t have the cash on hand, or that you can cover unforeseen costs when they arise. For instance, a short-term small business loan can be an excellent way to buy product at a discount that will sell quickly and enable your company to make more money, or to hire extra staff to handle a surge in demand.
How to decide which loan is right for you
Today’s small businesses have more financing alternatives than ever before, but selecting the best loan and lender for your company can be difficult due to the confusing array of loan kinds and lenders. The time when getting a small company loan from the bank was a one-stop shop is over. As a result, business owners must evaluate their lending options more carefully, taking into account factors including loan amount, term, and interest rates.
Before applying for a small company loan, you should ask yourself the following questions: What do I need the additional operating capital for? How much money do I require? How would you describe my credit profile? How soon do I require the money?
Term Loan
Receive a one-time lump sum of money up front with the option to request additional when your debt is half-paid off.
Line of Credit
Get a credit line that can be used to
access money whenever
you need it.
Applying for a small business loan at Business Capital Resource is quick and simple
Step 1. Complete the application
All of your information is kept safe and we only ask for basic information about your business and 3 months of your most recent bank statements.
Step 2. Get a decision
Your dedicated loan advisor will review small business loan options with you to find the one that best suits your needs.
Step 3. Receive your funds
Once you complete the online checkout, you can receive your funds as soon as same day.
Types of small business loans
Unsecured Small Business Loans
Simply put, an unsecured business loan is one from a lender that does not need any kind of security from a company or its owner. This totally depends on the applicant’s creditworthiness.
Many small business owners are interested in borrowing money for their enterprise, but often lack the precise collateral that a bank might demand, such as specifically-identified real estate, inventory, or other physical assets. Fortunately, there are lenders like Business Capital Resource who depend on a general lien on the company’s assets rather than requiring specific property as security for their loans. These could be wise choices for numerous businesses.
• Short Term Business Loan
• Business Line of Credit
• Working Capital Loan
• Commercial Loans
• Expansion Loans
Secured Small Business Loans
Banks typically favour secured business loans over unsecured ones. Loans that are secured by property such as equipment, real estate, or other valuable business assets that the bank may seize and sell if the loan is not repaid.
The loan-to-value ratio of your collateral is often determined by banks (or other lenders who require specified collateral) based on the type of asset. In other words, your banker might permit you to borrow money against up to 75% of the appraised value of real estate or between 60% and 80% of the value of what they refer to as ready-to-go inventory. You should always inquire about a possible lender’s methodology for determining loan-to-value ratios because different lenders may view them in a variety of ways.
• Equipment Financing
• Merchant Cash Advance
• Factoring
• Micro-Loans
• Inventory Loans
SBA Loans
A small number of business loans are directly offered by the SBA (Small Business Administration), often through government-backed emergency loan programmes. In order to issue specific business loans that are later backed by a government guarantee, the SBA more frequently collaborates with traditional lenders like banks and credit unions. The guarantee is made to make it simpler for the bank to grant loans to business owners whose creditworthiness may be just a little bit below the standard requirements for bank qualifying customers. Additionally, there are a variety of SBA loan kinds designed for various business needs.
• What You Need to Know
• Qualifications
• Tips on Qualifying
Small Business Loans for Different Industries
Your needs as a business owner could be sector-specific, like acquiring kitchen supplies in advance or bridging cash flow while you wait for insurance payment. At Business Capital Resource, we comprehend this need and provide customised loan alternatives (with a variety of loan types, amounts, and payback terms), allowing you to choose the loan that is most appropriate for your business and industry. Here are a few of the sectors we work with most frequently and the small company finance solutions that are available to them.
• Loans for Restaurants
• Loans for Auto Repair Shops
• Loans for Medical Practices
• Loans for Trucking
• Loans for Retail
• Loans for Contractors
• Loans for Beauty Salons
• Loans for Landscapers
• Loans for Cleaning Services