SBA Loan
While partially backed by the government, SBA loans assist businesses in obtaining working capital with the benefits of low-interest rates and extended repayment terms.
What is a SBA Loan?
The Small Business Administration Loan (“SBA Loan”) is a program managed by the Small Business Administration, receiving partial government backing. Collaborating with various financial institutions, this initiative aims to provide small businesses with access to working capital featuring extended terms and lower interest rates. SBA Loans prove advantageous for businesses seeking capital to purchase inventory, sustain operations, or expand their enterprises.
Ideal Financing For Your Business
Numerous companies face diverse business needs, such as technological or geographical expansion, meeting payroll requirements, and launching new marketing initiatives. These endeavors often necessitate access to working capital featuring extended terms and reduced interest rates. SBA Loan approvals generally result in amounts ranging from $5,000 to $2 million. The government’s partial guarantee of SBA Loans mitigates the lender’s risks, facilitating lower interest rates and more extended repayment terms.
Working Capital
Entrepreneurs seeking funds for operational expenses can find SBA Working Capital loans to be an excellent option. These loans are classified under the umbrella of SBA 7(a) loans.
Debt Consolidation
Offering cost-effective lending solutions for small and expanding firms, SBA loans provide refinancing options for debt with rates ranging between 5-8% and terms spanning 5-25 years, contingent on the program and intended use of the loan.
Equipment Purchases
When it comes to financing long-term equipment, SBA 7(a) Loans emerge as a compelling solution. Additionally, SBA International Trade loans serve as a viable option for acquiring fixed assets, including construction, building, and real estate equipment, specifically designed for export transactions.
Loan Amount From $5,000 - $2,000,000
SBA Loan Details
Qualifying Criteria:
- 650+ credit score
- 24+ months in business
- $10,000+ average monthly bank deposits
Required Items:
- Signed one page funding application
- 3-5 most recent business bank statements
- Business tax returns & more
No Collateral Requirements
Advantages
- Lower interest rates
- Enhanced cash flow flexibility allows you to allocate your remaining funds towards immediate operational expenses and unforeseen emergencies.
- Long term payment structure
- Qualifying for it can pose more significant challenges.
Disadvantages
- Enhancing your credit limit can pose a challenge.
- Lines of credit frequently feature more modest borrowing limits, and if used imprudently, additional fees and charges can accumulate.
- Qualifying for business lines of credit may pose greater challenges compared to alternative financing options.
Why Choose Us?
Different from conventional banks and other alternative lenders, BHS Business Funding places genuine importance on your business. Your prosperity holds the utmost significance for us, and we are committed to avoiding excessive financial commitments that your business might find challenging. Our uncomplicated application process, coupled with swift approvals, facilitates the seamless acquisition of the working capital essential for your business. Moreover, our seasoned funding consultants are dedicated to guiding you through every stage of the process.