Types of Available Business Financing

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Types of Available Business Financing

Published By Credit Suite at February 15, 2016

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There is a massive amount of financing currently available for small businesses.

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 $50,000-150,000 on these accounts, and they work for businesses with no financials, even startup businesses can qualify.

Over 80% of US businesses us Equipment financing to obtain equipment.  Business owners can get financing, even leasing to help with the purchase of equipment, even 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 that 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 obtain signage for their business.

Stocks and securities can be used as collateral for a business owner to obtain a line-of-credit 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 401k can use that 401k as collateral and get financing for up to 200% of the 401k value. Plus, rates are typically less than 2% for 401k financing.

Merchant advances are another type of financing business owners can qualify for 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 get approved within 72 hours or less in most cases.

Business owners with account receivables can get financing within 24 hours at rates less than 2%, even with credit challenges.

Account receivable financing is perfect for many industries including the medical and construction industries, and any other that has receivables with their customers.

Companies can also get purchase order financing to obtain letters-of-credit to fulfill purchase orders.

Inventory financing can be obtained to purchase inventory, or borrower against inventory a business owner already has and get a working capital line-of-credit.

SBA offers two main programs that can really help business owners. Loans can be obtained 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, sometimes private money is the best way to go when lenders say no.

Business owners can also qualify for commercial real estate financing. Money can be obtained to purchase real estate, and cash-out refinances are also readily available.

Business owners can even obtain 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. With this financing can be obtained 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 to clients through the Business Finance Suite.

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