Small Business Administration (SBA) 7(a) loans provide up to $5 million in financing to small, United States-based, for-profit businesses. They feature relatively low-interest rates ranging from 7.75% to 10.25%. SBA 7(a) loans are good for businesses needing long-term capital to fund working capital, equipment purchase, or commercial real estate acquisition. If the COVID-19 pandemic has…
SBA 504 Loan: Buy Commercial Real Estate With SBA/CDC Loans
The SBA 504 loan program combines two loans―one from a lender, one from a community development corporation (CDC)―that can be used for commercial real estate, and other fixed assets like equipment. The lender portion covers up to 50% of the loan, the CDC portion covers 40%, with the borrower providing the remaining 10%. What an…
Franchise Financing: Costs, Features & Providers
Franchise financing is used to fund the purchase of a franchise or provide working capital to an existing franchise. The costs and terms associated with franchise loans vary by the type you choose. Small Business Administration (SBA) loans for franchises have interest rates from 7.75% to 10.25%, and loan terms of up to 10 years….
100 Top SBA Lenders For Loans Under $150K
Between 2010 and 2018, based on data we obtained from the Small Business Administration (SBA), lenders collectively issued 493,843 SBA 7(a) loans to small businesses. Of these loans, 57% were for amounts of $150,000 or less. We’ve compiled a list of the 100 top SBA lenders for loans under $150K. 100 Top SBA Lenders for…
6 Best Working Capital Loans 2020
A working capital loan is short-term business funding used to finance a company’s day-to-day operations, like buying inventory or covering payroll. Common small business working capital loans are lines of credit, term loans, invoice financing, and merchant cash advances. We reviewed working capital loan providers on costs, terms, and qualifications to identify the top six….
6 Best Working Capital Lines of Credit 2020
Businesses can use a small business working capital line of credit to cover temporary gaps in working capital resulting from seasonality or unexpected expenses. In contrast to term loans, it’s best used for smaller gaps in funding rather than large one-time payments. The best lenders offer flexible terms to small businesses for working capital management….
SBA Microloans: What They Are & Who They’re Right For
The Small Business Administration (SBA) makes microloans of up to $50,000 available to small businesses through nonprofit lenders. Interest rates for SBA microloans range from 8% to 13%, with terms of up to six years. SBA microloans are available to startups and established businesses, and provide funding much faster than other SBA loans. What is…
Angel Investor vs Venture Capitalist Funding: Which Is Best?
When considering raising funding from an angel investor compared to a venture capitalist, the deciding factor is your startup stage. Startups ready to scale are best served by venture capital, which can provide more funding for equity. However, startups in earlier stages may not need as much funding and are better served by angel investors….
Purchase Order Financing: What PO Financing Is & How It Works
Purchase order financing (PO financing) is an advance from a financing institution that pays your suppliers for goods you’re reselling or distributing to a customer. Purchase order funding requires a written purchase order. You can finance up to 100% of the purchase order costs, with typical rates falling between 1.15% and 6% per month. What…
Interest Rate vs APR: How They Differ & When They’re Used
An annual percentage rate (APR) and interest rate both represent the annual cost of borrowing as a percentage of the borrowed amount. Lenders use your interest rate to calculate monthly payments and disclose the APR. APR includes some fees in addition to interest resulting in a more comprehensive annualized cost of borrowing. What an Interest…
7 Best Cash Flow Lenders 2020
The best cash flow lenders offer business term loans and lines of credit, invoice financing, and merchant cash advances. They’re used by businesses to meet obligations or replenish inventory. Cash flow loans can be approved in minutes with an online application, funded in 24 hours, and have rates that start at 9% APR. 7 Best…
How to Refinance Your Business Loans in 4 Steps
A business loan refinance can lower your current APR, reduce the frequency of your payments, and even unlock additional working capital for your business. The most common loans used for business refinancing are SBA loans and traditional small business term loans. In this article, we’ll show you how to refinance business loans in four steps….