Thinking about financing a new business? Read this first.

  • September 3, 2019

✔ New Business Idea
✔ Business Plan
✔ Business Financing ?

Whether you’ve been thinking about turning your marketable skills into a profitable business for a while or recently opened your doors, business financing is a topic you’ll revisit throughout the lifecycle of your business. Outside funding may be necessary if you plan to start or purchase a business, buy additional equipment, or need help with cash flow.

Using a U.S. Small Business Administration (SBA) Preferred Lender for your financing needs makes the lending process more accessible while providing additional benefits unavailable through traditional commercial loans.

While SBA loans are guaranteed by the U.S. Small Business Administration, SBA Preferred Lenders can make the lending decision locally. This means borrowers benefit from the personal service available through a local lender.

Business financing isn’t limited to entities with large annual revenue or several years of glowing financial statements. Many smaller, for-profit, creditworthy businesses meet initial eligibility standards for program loans.

Here are five additional reasons an SBA loan may be a great fit for your business financing needs.

Funding isn’t limited to existing, local businesses

Small companies and startups can access the funds they need to open their doors. Loan proceeds can be used to start a local business or grow your business.

Loans are available when they may not be otherwise

If you have little credit or lack cash for a high down payment, qualifying for a conventional business loan can be challenging. SBA loans make borrowing possible for many new business owners when it may not otherwise be possible.

Borrowing limits are greater than most people realize

With loan sizes up to $5 million, entrepreneurs can dream big. Most franchise businesses and for-profit small businesses are typically eligible for SBA guaranteed loans. And keep in mind that “small business” can still mean 500 employees in certain industries.

Loan terms are affordable

When compared to conventional loans, an SBA loan offers longer terms, which often means lower monthly payments. Loan fees, which vary by loan amount, can even be financed into the loan. Affordability is of primary importance to a business owner who must keep an eye on cash flow. With competitive interest rates and lower down payments, starting a business becomes less about “how” and more about “when.”

Use funds where your business needs them

There are a variety of ways you can use an SBA loan to support your business. Your loan can be used to:

  • Purchase machinery, inventory and office equipment
  • Fund a business acquisition or franchise
  • Cover the costs of technology upgrades
  • Expand facilities
  • Finance real estate for your business location
  • Provide working capital
  • Restructure existing debt obligations
  • And more…

SBA lenders understand the unique needs of small business owners. Whether you’re still in the planning stages or looking to expand your business, financing is available. As an SBA Preferred Lender, The Bank of Missouri can help your business tackle new opportunities with fiscal confidence. We have a dedicated SBA team of lending professionals who will review your loan application for faster approval and processing. Visit our website to learn more and let us complete your SBA loan from start to finish.

Live Well, Bank Well