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What kind of business financing do you need?

It goes without saying that financing takes time, which is not the most convenient factor when your business needs working capital- fast. Before putting a loan package together, straightening up your company’s financials, and researching your lender, there’s one major question to answer…WHAT KIND OF FINANCING DO YOU NEED?

Every industry has different needs, so when it comes to commercial financing, different funding types work better – depending on the industry. Start by figuring out the initial needs of your business and what aspect particularly requires funding. Below is a breakdown of financing that works well in each industry, as well as the assets being funded.

Trucking And Transportation Industry

Equipment Leasing is probably the most popular form of financing for Trucking and Transportation companies. Equipment Leasing can help increase liquidity as well as improve cash flow. On the other hand, if the company prefers to have ownership of their assets then Secured loans are the best option for businesses looking to purchase new or used equipment. SBA Loans and Asset based lines of credit are also options for trucking and transportation companies depending on which aspect of the business they are funding.

Manufacturers and suppliers

Factoring, Contract finance, and Purchase Order Funding are the most popular forms of financing used in the Manufacturing and Supplier Industries because they help fulfill purchase orders and invoices while keeping the business from losing profit and running into debt.  SBA loans and Equipment Leasing may also be used for startup costs or helping the business update and expand without breaking the bank.

Fitness

Equipment Leasing, SBA Loans, Commercial Real-Estate Financing, and Asset Based Lines of Credit are all forms of financing used for Fitness Organizations, Recreation, and Gyms to keep their equipment constantly up to date and to help with necessary product repairs, as well as property expansion.

Restaurants and Food

Equipment Leasing is great for restaurants that do not have the capital to purchase new equipment. Leasing can help them ‘borrow’ the equipment needed so that they do not hurt their revenue in the process.  SBA Loans and Commercial Real-Estate Financing are wise choices for restaurants particularly in their startup phase. Finding financing for restaurants may be difficult because lenders are hesitant to lend due to the high failure rate, so it is important to research exactly what you need and which lenders are willing to fund your expense for a reasonable rate.

Retail

Due to the fact that the retail industry offers so many different kinds of products, they are capable of applying for almost any type of loan depending on the businesses need. SBA Loan,Bridge/Hard Money Loans, Commercial Development, Contract Finance, and Consumer Finance are just a few examples of financing used in the Retail industry.

Hotel & Hospitality

Commercial Development and Real Estate Financing are primarily used in the Hotel industry to help with construction or expansion of the hotel property. Furniture, Fixtures & Equipment (FF&E) financing is generally used for all other hotel asset needs.

Franchise

Regardless of the business type your franchise is, Franchise Financing is specifically designed for ‘helping’ Franchise owners lease or purchase equipment and real estate for their business. Franchise financing provides funding for any new construction, remodels, and acquisitions regarding the business as well. Also look into Commercial Development and other financing areas specific to which industry your franchise falls under.

Real Estate

Commercial Real Estate Financing and Mezzanine Financing are obviously the best options when it comes to funding office space or residential buildings because it is treated like equity on the company’s balance sheet. Bridge/Hard Money Loans are another real-estate financing option for business owners who need to spend their capital elsewhere in the business or on another vital project, and do not want to struggle to make property payments.

Medical

The Medical Industry is another large area field where almost any type of financing may be required at some point. Whether it is for obtaining new or used equipment, working capital, practice acquisitions, or debt consolidation. The Medical Industry mainly uses Equipment Leasing, SBA Loans, and Contract Finance for most of their demands.

Generally

Regardless of your industry, many business owners are able to satisfy their working capital needs with an unsecured business line of credit. The owner will need a good credit score to qualify. This type of loan is perfect for start-ups, requires no collateral, and no financial when applying. In most cases, depending on your credit score, a 0% rate is offered for the first year.

You can also contact us at any time with your business capital needs and we will help you find the right financing option for you!