Account Receivable Line of Credit
An Accounts Receivable Line of Credit is a flexible financing solution that allows businesses to borrow money using their outstanding customer invoices as collateral.
Instead of waiting for customers to pay, you can access a percentage of the value of those invoices upfront, providing immediate cash flow to manage operations, seize opportunities, or cover expenses.
As customers pay their invoices, the borrowed amount is repaid, and the credit line replenishes, offering a continuous source of working capital based on your sales.
This type of financing is available in 1 to 2 year terms, and up to $10 Million, although the amount financed is based on the cash flow.
Equipment Financing
Equipment financing offers businesses a crucial avenue to acquire essential assets like machinery, vehicles, and technology without depleting valuable cash reserves.
By securing a loan or lease with the equipment itself serving as collateral, businesses can spread the cost over time through manageable payments. This financial solution provides numerous benefits, including preserving working capital for other critical needs, gaining access to the latest technology to enhance efficiency and competitiveness, offering flexible payment structures, and potentially providing tax advantages through deductions for interest or lease payments, ultimately enabling businesses to grow and optimize operations.
This type of financing is available in 1 to 5 year terms, and up to $5 Million and 100% financing. There is also the option between leasing the equipment or purchasing it after the terms are complete.
Business Term Loan
A business term loan provides a lump sum of capital upfront, repaid over a fixed period with predictable, regular payments, making it a favorite for planned business investments.
These loans are flexible, commonly used for purchasing equipment or real estate, funding business expansions, consolidating debt, or boosting working capital.
They offer the significant advantages of predictable budgeting due to consistent payments and generally feature lower interest rates compared to more flexible financing options, especially when secured by collateral.
Consistently making on-time payments helps build strong business credit, paving the way for future financial opportunities. While the application process can be more extensive and they lack the revolving flexibility of a line of credit, term loans are an ideal solution for businesses seeking substantial, one-time funding for strategic growth and long-term stability.
This type of financing is available in 1 to 2 year terms, and up to $10 Million and 100% financing. There is no prepayment penalty, and there is the option to refinance up to 2 loans.
SBA Loans
SBA loans are a category of small business loans guaranteed by the U.S. Small Business Administration (SBA). It's important to understand that the SBA itself generally does not directly lend money (with the exception of disaster loans).
Instead, it partners with a network of private lenders (like banks and credit unions) and offers a government guarantee on a portion of the loan. This guarantee significantly reduces the risk for lenders, encouraging them to provide financing to small businesses that might not otherwise qualify for conventional loans due to factors like limited operating history, lower credit scores, or insufficient collateral.
The application process for SBA loans can be more detailed and take longer than conventional loans (often 60-90 days), as it involves preparing extensive documentation and undergoing thorough underwriting by both the lender and potentially the SBA itself.
However, for eligible businesses, the favorable terms and lower risk to lenders often make them a highly attractive and cost-effective financing solution.
SBA 7a financing is available in up to a 10 year term, and 504 up to 25 years. Maximum funding amount is up to $5 Million, and while an approval can come as quick as 1 to 5 days, the funding may take up to 4 to 10 weeks.