An SBA (Small Business Administration) loan is a small business loan that is partially guaranteed by the government. This eliminates some of the risk for the financial institution issuing the loan. The SBA offers numerous loan programs to assist small business owners to start, manage, and grow their business. Below are the main uses of an SBA loan and parameters.
- No equity injection required
- Must save at least 10% on current debt service to qualify
- Up to 25-year term
- 90% financing, 25-year term
- 51% or more owner-occupied
- SBA 7a or 504 loans
- Can include working capital, equipment, improvements, and closing costs
Up to 100% financing for:
- Practice start-up
- Practice expansion
- Practice acquisitions
- Partner buyout
- Can include working capital, equipment and improvements
- Must be in business at least two years
- 90% financing, up to 25-year term
- 80% financing (10% can be seller note on standby)
- Up to 100% financing for partnership buyout
- Up to $1.5 million Goodwill
- Buyer must have related experience
- Equity injection can come from HELOC
- Positive trends, no significant concentrations
- Can include working capital
Accounts Receivable and Invoice Factoring
Financial inflow is an essential part of running a business. It can become frustrating when your company’s cash flow is unable to cover your operating expenses. This problem is common for many business owners who operate successful companies but run into cash flow problems from time to time.
Account Receivable Financing provides any business with the necessary capital and cash flow to operate and run day-to-day operations. A factoring loan assists your business to grow by injecting working capital without creating debt or adding an equity partner.
The financing company will buy invoices that it is reasonably sure to collect in full on. The financing company will provide up to 90% advance on an invoice. Funding is fast, typically five business days from when a complete application with supporting documentation is received.