Published By Credit Suite at February 15th, 2016
There is a massive amount of financing currently available for small businesses. It’s a veritable smorgasbord of types of business financing.
Business credit is one financing type that works perfect for many businesses. The business can build its own credit score and profile and use that to qualify for business credit cards in the business name which require no personal credit check or personal guarantee to qualify.
There are also unsecured credit cards and lines that consumers with good credit can qualify. It’s common to see approvals range from $50,000 to $150,000 on these accounts. And they work for businesses with no financials. So even startup businesses can qualify.
Over 80% of US businesses use equipment financing to buy equipment. Business owners can get financing, even leasing to help with the purchase of equipment. This is even for heavy equipment.
And business owners can also use equipment they already own as so collateral and get cash back through an equipment sale-lease-back.
Vehicle wrap financing is a specialized niche type of financing. It gets business owners funding to put a graphic wrap on their vehicle.
Commercial signage financing is another nice program that business owners can use to get signage for their business.
Stocks and securities can be used as collateral for a business owner to get a line of credit. So, this is for up to 90% of the value of the stocks. Rates on these programs are the lowest of all type of business financing, even as low as 1.6%.
Business owners with a 401(k) can use that 401(k) as collateral. And they can get financing for up to 100% of the 401(k)’s value. Plus, rates are typically less than 2% for 401(k) financing.
Merchant advances are another type of financing business owners can qualify for. This is if they accept credit cards now. These are not loans, but actual cash advances against future credit card sales.
Revenue lending is a similar program that uses future cash flow as collateral for financing. Even business owners with bad personal credit can qualify. And they can get an approval within 72 hours or less in most cases.
Business owners with account receivables can get financing within 24 hours. So this is at rates less than 2%. And that’s even with credit challenges.
Account receivable financing is perfect for many industries. This includes the medical and construction industries, and any other that has receivables with their customers.
Companies can also get purchase order financing to get letters of credit to fulfill purchase orders.
You can get inventory financing to buy inventory. Or you can borrow against inventory you, the business owner, already have. This way, you can get a working capital line of credit.
The SBA offers two main programs that can really help business owners. You can get loans for up to 12 million dollars. SBA 7a loans are great for working capital, while 504 loans are perfect for real estate purchases.
There are many private investors, crowd sourcing groups, and angel investors who also have money to lend. If a business owner has a make sense project and needs funds, this can work. Because sometimes private money is the best way to go when lenders say no.
Business owners can also qualify for commercial real estate financing. You can get money to purchase real estate, and cash-out refinances are also readily available.
Business owners can even get auto vehicle leasing in their business name through many types of business leasing programs.
Real estate flippers can take advantage of a very special program known as a house reseller program. You can get financing for 100% of the purchase and rehab costs of properties.
There are a multitude of financing options a business owner has access to if they know what to look for. It’s also important to note that ALL of these programs, and many more, are available there. Clients can get them through the Business Finance Suite.
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