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HELPING YOU NAVIGATE THE COMPLEX SBA LOAN PROCESS
The U.S. Small Business Administration is often a great ally for entrepreneurs and small businesses. But did you know that the SBA may recommend that your business try to qualify for a conventional loan first before turning to the SBA and its guaranteed loan products? Many small businesses don’t realize this and understandably so. You’re busy running your operation, getting new clients and growing your business, not becoming an SBA expert.
That’s where Betterway Capital USA comes in. Not only are we experts at understanding the various types of SBA loans available for different types of small businesses, we help you determine whether an SBA loan is the best option for you. Because there are a variety of stipulations associated with obtaining an SBA loan, Betterway Capital works to understand your overall financial situation and whether it fits within the SBA framework. We then help you navigate the complex SBA loan application process in a way that can help speed up the decision and get your business the funding it needs fast.
While the SBA offers up to 12 different types of loan products, there are 2 types of SBA loans that work for the majority of companies we work with.
SBA Loan Programs
- The SBA’s most common loan program, the 7(a) loan offers a maximum amount of $5 million. It’s ideal for business startups as well as established businesses to meet short and long-term needs, such as working capital, equipment purchases and inventory. Betterway Capital USA has over 40 nationwide preferred lender provider banks we work with and can close fully underwritten loans in 30 days or less.
- With a maximum loan amount of $350,000 and an SBA guarantee of up to 50% of the loan, the SBA Express can be configured as a revolving line of credit or long-term loan. Express also features fast approval and turnaround, often within 36 hours. Furthermore, lenders and borrowers may negotiate the interest rate, as long as it does not exceed the SBA maximum. Business Capital Consultants USA can assist your business with this loan’s fast turnaround and streamlined application process.
The SBA’s 7(a) small loans are any 7(a) loans of $350,000 or less. The primary difference here is collateral. Normal 7(a) loans require lenders to take as much collateral as possible to cover the loan. For 7(a) small loans, the lender must only follow its own collateral policies and procedures for non-SBA loans of similar sizes.
If your business exports products to other countries, Export Express loans offer you a fast method to get SBA-backed funding up to $500,000 in order to support those operations. Lenders have the ultimate say in whether or not you’ll be approved for an Export Express loan. You can usually get approved for an Export Express Loan with 24-36 hours.
Export Working Capital loans are essentially larger versions of Export Express Loans, but they’re tailored to meet your working capital needs. You can borrow up to $5 million in Export Working Capital loans. Unlike Export Express Loans, the SBA must approve your Export Working Capital loan. Additionally, your export-related inventory and receivables serve as collateral for this type of loan. Lastly, owners with 20% or more of an ownership stake in the business must sign a personal guarantee.
International Trade loans are a long-term financing vehicle for businesses whose export sales are causing them to expand. They’re also designed for businesses whose operations have been hurt by imports and need to modernize to stay competitive. The SBA offers International Trade loans up to $5 million. Term lengths can be up to 10 years for permanent working capital, 10 years for machinery and equipment (up to 15 years if the useful life is longer than 10 years), and 25 years for real estate.
The SBA can designate lenders as Preferred Lenders. These lenders can approve SBA loan applications themselves, instead of sending them to the SBA like nonpreferred lenders have to — meaning faster turnaround times for you. Additionally, SBA loans from Preferred Lenders tend to have favorable interest rates, longer repayment terms, and no prepayment penalties. Business Capital Consultants can find a Preferred Lender for you so you can reap the benefits of an SBA loan without waiting too long.
Small businesses in which 51% of the owners are veterans of the US Armed Forces can take of Veterans Advantage loans. These reduce upfront guarantee fees for veteran entrepreneurs. Amounts up to $150,000 have no guarantee fees. Loans from $150,001 to $500,000 have a 1.5% guarantee fee for a maturity longer than 12 months, and a 0.125% guarantee fee for less than 12 months. After that, fees never exceed 3.75%.
CAPLines is an overarching program (consisting of 4 CAPLines) that assists businesses with short-term and cyclical working capital solutions. Seasonal CAPLines are meant to help businesses in seasonal industries, such as lawn care, finance their seasonal operations. They can either revolving or non-revolving lines of credit, and they go up to $5 million. Seasonal CAPLines must be used to finance seasonal increases in accounts receivable, inventory, or labor costs — they can’t be used to maintain working capital during the slow season.
Contract CAPLines are lines of credit that companies can use to cover their direct materials and labor costs that are associated with assignable contracts. These CAPLines can be either revolving or non-revolving, and the amount you can borrow goes up to $5 million. Businesses must have proven experience, profitability, and the ability to complete any contracts, subcontracts, or purchase orders in order to qualify for a Contract CAPLine.
Builders CAPLines are revolving or non-revolving designed for construction contractors, home builders, and similar businesses. These businesses can use their Builders CAPLine (which can be up to $5 million) to finance direct materials and labor costs associated with constructing, rehabbing, or renovating commercial or residential buildings. The Builders CAPLine is secured by the building the company is working on. Businesses must have proven experience, profitability, and ability to successfully complete projects on time.
Working CAPLines are revolving lines of credit up to $5 million set aside for businesses that can’t meet underwriting standards for most forms of long-term credit. You can use a Working CAPLines to finance recurring/short-tem needs, cyclical growth, and similar working capital needs. To repay a Working CAPLine, you convert short-term assets (such as accounts receivable or inventory) into cash, then remit that cash to your lender. Lenders may charge additional fees on your Working CAPLine.
Business Capital Consultants is here to help if you aren’t sure which short-term financing source is right for you. We’ll deal with the paperwork and phone calls for you so you can get the funding you need without wasting valuable time.
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Helpful Tips & Information
The Pros and Cons of SBA Loans
Are you eligible for a better rate? Loan TypeTerm LoansSBA LendingLine Of CreditAsset Based LendingCommercial Real State MortgagesEquipment FinanceHedge Fund CapitalRoyalty Capital FundingSaas CapitalYearly RevenueUnder $100,000$100,000 - $250,000$250,000 - $500,000$500,000 - $750,000$750,000 - $1,000,000$1,000,000 - $2,000,000$2,000,000 - $3,000,000$900,000 And Above$3,000,000 And AboveTime in Business2 or more years1-2 years6 months - 1 yearStarting a businessCredit ScoreExcellent (720+)Good (680-719)Fair (640-679)Poor (639 or less) First Name Last Name Email The Pros and Cons of SBA LoansSmall Business Administration (SBA loans) are loans backed by the Small Business Administration. The SBA doesn’t lend the money; banks and other lenders do that. The SBA simply guarantees a large portion of each loan to reduce the lender’s risk. Types of SBA Loans There are several SBA loan types. SBA 7(a): The main type of SBA loan. You can borrow up to $5 million in 7(a) loans. SBA Express: A smaller 7(a) loan with a faster approval process. SBA 504: Designed for acquiring fixed assets. CAPLines: An SBA line of credit. There are several types of CAPLines, each for a different purpose. Export Working Capital: Used to fund operations related to export sales. Export Express: A faster turnaround version of the Export Working Capital loan. Microloans: Small [...]
The Pros and Cons of Term Loans
Are you eligible for a better rate? Loan TypeTerm LoansSBA LendingLine Of CreditAsset Based LendingCommercial Real State MortgagesEquipment FinanceHedge Fund CapitalRoyalty Capital FundingSaas CapitalYearly RevenueUnder $100,000$100,000 - $250,000$250,000 - $500,000$500,000 - $750,000$750,000 - $1,000,000$1,000,000 - $2,000,000$2,000,000 - $3,000,000$900,000 And Above$3,000,000 And AboveTime in Business2 or more years1-2 years6 months - 1 yearStarting a businessCredit ScoreExcellent (720+)Good (680-719)Fair (640-679)Poor (639 or less) First Name Last Name Email The Pros and Cons of Term LoansTerm loans are much like a personal loan. You take out a fixed sum of money at a specified interest rate — either fixed or variable — and then repay the loan amount in monthly installments. Many businesses can make great use of term loans, but they certainly aren’t for everyone. Our goal at Fundvisor is to ensure you get the best funding vehicle for your business. Of course, you’re likely too busy running your business to spend hours researching term loan details and jargon. To that end, we’ve compiled a list of the pros and cons of term loans. If you feel that a term loan could be right for you, please reach out to us. The Pros of Term Loans Large Amounts Available Term loans have [...]
The Pros and Cons of Lines of Credit
Are you eligible for a better rate? Loan TypeTerm LoansSBA LendingLine Of CreditAsset Based LendingCommercial Real State MortgagesEquipment FinanceHedge Fund CapitalRoyalty Capital FundingSaas CapitalYearly RevenueUnder $100,000$100,000 - $250,000$250,000 - $500,000$500,000 - $750,000$750,000 - $1,000,000$1,000,000 - $2,000,000$2,000,000 - $3,000,000$900,000 And Above$3,000,000 And AboveTime in Business2 or more years1-2 years6 months - 1 yearStarting a businessCredit ScoreExcellent (720+)Good (680-719)Fair (640-679)Poor (639 or less) First Name Last Name Email The Pros and Cons of Lines of CreditSometimes, your business is short on cash right when you need it most. It might be that a supplier is selling inventory at a discount, and you want to take advantage. Perhaps you have a potentially lucrative project sitting in front of you. Or maybe you need emergency cash to repair or replace old equipment. A business line of credit is an excellent solution for any of these situations. They work like credit cards. You can borrow up to a specified limit whenever you want. You then must make at least the defined minimum payment each month — although you should strive to pay it off in full to avoid interest. At Fundvisor, we’ve helped many small business secure lines of credit that have helped them grow. [...]
The Pros and Cons of Commercial Real Estate Mortgages
Are you eligible for a better rate? Loan TypeTerm LoansSBA LendingLine Of CreditAsset Based LendingCommercial Real State MortgagesEquipment FinanceHedge Fund CapitalRoyalty Capital FundingSaas CapitalYearly RevenueUnder $100,000$100,000 - $250,000$250,000 - $500,000$500,000 - $750,000$750,000 - $1,000,000$1,000,000 - $2,000,000$2,000,000 - $3,000,000$900,000 And Above$3,000,000 And AboveTime in Business2 or more years1-2 years6 months - 1 yearStarting a businessCredit ScoreExcellent (720+)Good (680-719)Fair (640-679)Poor (639 or less) First Name Last Name Email The Pros and Cons of Commercial Real Estate MortgagesBusiness is booming. You have strong cash flows, and you’re looking to expand. Whether you’re seeking new office space, a warehouse, or refurbishing an existing building, a commercial real estate loan may be your ideal funding vehicle. But finding the right new piece of real estate is hard enough without trying to understand the complicated commercial lending world. You can rely on the commercial real estate mortgage experts at Fundvisor. We’ll clear up the complexities of commercial lending and find the right funding source for you — after all, your time is best spent on business operations. We strive to ensure all of our clients are informed borrowers, so we’ve explained the pros and cons of commercial real estate mortgages below. Don’t hesitate to call us [...]
The Pros and Cons of Equipment Financing
Are you eligible for a better rate? Loan TypeTerm LoansSBA LendingLine Of CreditAsset Based LendingCommercial Real State MortgagesEquipment FinanceHedge Fund CapitalRoyalty Capital FundingSaas CapitalYearly RevenueUnder $100,000$100,000 - $250,000$250,000 - $500,000$500,000 - $750,000$750,000 - $1,000,000$1,000,000 - $2,000,000$2,000,000 - $3,000,000$900,000 And Above$3,000,000 And AboveTime in Business2 or more years1-2 years6 months - 1 yearStarting a businessCredit ScoreExcellent (720+)Good (680-719)Fair (640-679)Poor (639 or less) First Name Last Name Email The Pros and Cons of Equipment FinancingEvery business needs equipment to operate, let alone grow. Copiers, computers, desks, machinery, trucks, and appliances are just a few examples across many industries. As a small business, however, saving enough cash to buy or repair equipment outright can take years. That’s years of foregone growth. Expensive short-term debt isn’t your only answer, though. Equipment financing offers you an affordable way to purchase, repair, upgrade, or refinance your business’s equipment. At Fundvisor, we examine your balance sheet and recommend equipment financing based on your situation. Before we work together, we urge you to read about the benefits and drawbacks of equipment financing so you can be an informed borrower. Contact us if you think equipment financing is right for you. The Pros of Equipment Financing Predictable Payments Like [...]
The Pros and Cons of Hedge Fund Capital
Are you eligible for a better rate? Loan TypeTerm LoansSBA LendingLine Of CreditAsset Based LendingCommercial Real State MortgagesEquipment FinanceHedge Fund CapitalRoyalty Capital FundingSaas CapitalYearly RevenueUnder $100,000$100,000 - $250,000$250,000 - $500,000$500,000 - $750,000$750,000 - $1,000,000$1,000,000 - $2,000,000$2,000,000 - $3,000,000$900,000 And Above$3,000,000 And AboveTime in Business2 or more years1-2 years6 months - 1 yearStarting a businessCredit ScoreExcellent (720+)Good (680-719)Fair (640-679)Poor (639 or less) First Name Last Name Email The Pros and Cons of Hedge Fund CapitalSince you’re busy running your business, you may not realize the full spectrum of financing opportunities available to you. You may have heard of credit lines, term loans, SBA loans, and other conventional funding vehicles. However, you may not want to pursue these “traditional” loans — or you might be shut out of them due to falling short of lending standards. That’s where hedge fund capital comes in. Hedge funds consist of high-net-worth investors seeking specific investment opportunities with higher potential returns than traditional investments (such as publicly-traded stocks and bonds). Your small business may be able to attract the investment it needs from a hedge fund if you can demonstrate future earning potential. Fundvisor has a strong understanding of hedge funds, and we’re able to connect [...]
The Pros and Cons of Royalty Capital Funding
Are you eligible for a better rate? Loan TypeTerm LoansSBA LendingLine Of CreditAsset Based LendingCommercial Real State MortgagesEquipment FinanceHedge Fund CapitalRoyalty Capital FundingSaas CapitalYearly RevenueUnder $100,000$100,000 - $250,000$250,000 - $500,000$500,000 - $750,000$750,000 - $1,000,000$1,000,000 - $2,000,000$2,000,000 - $3,000,000$900,000 And Above$3,000,000 And AboveTime in Business2 or more years1-2 years6 months - 1 yearStarting a businessCredit ScoreExcellent (720+)Good (680-719)Fair (640-679)Poor (639 or less) First Name Last Name Email The Pros and Cons of Royalty Capital FundingTraditional lending solutions don’t work for some businesses. Perhaps the company doesn’t meet the underwriting standards. Or maybe they do, but they can’t negotiate the terms that they want. If that sounds like your situation, you shouldn’t try to make it work. Instead, you can seek out alternative funding sources like royalty capital. Royalty capital funding is a financing method where you get capital in exchange for a slice of your future revenues. Of course, you’ll want to talk with an expert before you pursue royalty capital — both to understand if it’s right for your business and find lenders offering it. Fundvisor can examine your financial situation and determine if royalty capital funding suits your business. We also recommend reading our royalty funding pros and cons [...]
The Pros and Cons of SaaS Capital
Are you eligible for a better rate? Loan TypeTerm LoansSBA LendingLine Of CreditAsset Based LendingCommercial Real State MortgagesEquipment FinanceHedge Fund CapitalRoyalty Capital FundingSaas CapitalYearly RevenueUnder $100,000$100,000 - $250,000$250,000 - $500,000$500,000 - $750,000$750,000 - $1,000,000$1,000,000 - $2,000,000$2,000,000 - $3,000,000$900,000 And Above$3,000,000 And AboveTime in Business2 or more years1-2 years6 months - 1 yearStarting a businessCredit ScoreExcellent (720+)Good (680-719)Fair (640-679)Poor (639 or less) First Name Last Name Email The Pros and Cons of SaaS CapitalThe software industry is fast moving away from one-off purchases into subscription-based models. This shift is helping software companies stabilize revenues with recurring income while driving down manufacturing/distribution costs. Plus, customers benefit from flexibility (they can pay less up front and cancel before costs eclipse an equivalent one-time purchase) and automatic updates as the software evolves. Although your SaaS company might offer an excellent product delivered almost entirely online, there’s room for more growth in this exciting space. Saas capital funding could be your ticket to this growth. Fundvisor USA can help you determine for sure if that’s the case. Below are the pros and cons of Saas capital so you can be as informed as possible when working with us. The Pros of SaaS Capital You’re Attractive [...]