SBA lenders give you the funding your business needs.
SBA lenders are approved by the Small Business Administration to lend your business money. The SBA guarantees the loans that SBA lenders give to your business. The guarantee eliminates the need for large amounts of collateral, so it increases the likelihood of approval for capital.
SBA lenders give out loans to both struggling and thriving businesses each and every day. Many people believe that a business has to be on its last legs before it will be approved for an SBA loan. This is far from the truth. There are many benefits to an SBA loan. They include the following:
- Lower capital requirements
- No points or balloon payments
- Longer amortization periods (up to 25 Years on standard 7a SBA Loans)
- Increased loan-to-value financing
The funds from an SBA loan can be used for nearly any need your business may have. This includes marketing expenses, machine upgrades, purchasing of inventory, regular operating capital like salaries and utilities, debt refinancing, and facility renovations to name a few options
The majority of for-profit businesses qualify for an SBA loan. To almost guarantee your funding request is approved by SBA lenders it is important for you to have some money invested into your business as they believe that you will work harder because more is at stake. Also having excellent personal credit scores will go a long ways in helping you get approved. The SBA lenders want to see that you have good character and that you will pay the loan back. Finally, make sure you have a quality business plan prepared for the lenders. In the plan explain the amount of capital you are requesting, show step-by-step how that money will be spent, and have a plan for how you plan to pay the loan back.