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Understanding the benefits and cost of our Business Loans

Where does working capital come from?

Working capital is calculated by subtracting current liabilities from current assets. It is essentially the lifeblood of any business, without it businesses will sink.

What are the benefits of a working capital loan?

Cash flow is king in business and due to insufficient funds, about 35% of businesses are unable to grow their business or expand operations, 14% are unable to finance increased sales, 13% cut employment, and 9% are unable to increase inventory to meet demand. With small business funding, your business is better prepared to handle any challenges or opportunities that arise. Even a business that has billions of dollars in fixed assets will quickly find itself in bankruptcy if it can’t pay monthly bills. Under the best of circumstances, poor working capital leads to financial pressure on a company, increased borrowing and late payments to creditors – all of which result in a lower credit rating. A lower credit rating means lenders charge a higher interest rate on money borrowed. Applying for and using a  small business working capital loan when you need it most can keep you in business when shortages in resources occur. A small business loan is one of the easiest ways to harness the potential of your business. Proper application of working capital will enhance a company’s’ profitability in the long run by managing day to day expenses in avoiding any operational failures. Working capital increases the chances that collection from trade receivables are paid on time as receivables is a key part of working capital which would also make for a lower case of default in paying the trade payable on due date because of proper management and allocation of cash. Lastly, it can also be a great solution for businesses that are small, just starting out, don’t have traditional collateral or are simply in a period of low cash flow.

 You can maintain ownership of your business.

If you were to receive funding from an equity investor, you would likely have to give up a generous percentage of your company in return. In turn, you are giving up a portion of your decision-making power. If you borrow funds from the bank or another financial institution, you are obligated to make the agreed-upon payments on time – but that’s where your obligations end. You can run your business without outside interference. In the words of Mark Cuban, “These investors know what you don’t, they are not telling you; the minute you ask for money, you are playing in their game, they aren’t playing in yours. You are at a huge disadvantage and it is only going to get worse if you take their money. The minute you take money, the leverage completely flips to the investor; they control the destiny of your plan; not you. Investors don’t care about your plans and goals. They love that you have them, but investors care how they are going to get their money back, and then some.”

6-24 months revolving working capital terms are ideal for quarterly and bi-quarterly needs.

Small business working capital loans are designed to infuse money into your business for 6-24 months as revolving capital to meet your needs. You won’t have to plan for years of monthly payments to pay back what you borrowed.

Use the money however you see fit.

Banks and other lenders have few – if any – restrictions on how you use the money. Whether you need to maintain your operations or make an investment, how you use the funds is your decision.

The application process is straightforward.

Applying for a typical business or personal loan can take up a lot of your valuable time and may not end in an approval. It often includes extensive paperwork, a lengthy approval process, putting up collateral, making fixed monthly payments and having restrictions on how you use the money. A small business working capital loan online is a great way to access funds without the long-waiting period hassles associated with a traditional bank loan. Qualification is generally determined within a few hours, if not sooner, of applying resulting in a faster turnaround when compared to traditional lenders. This makes online small business funding more appealing for those who need quicker access to capital.

It’s your call, when you are ready we will package together the funding package neatly for the underwriting department on a silver platter and get you the funding you need fast within 24 hours

Understanding the cost

Before managing the risk of taking on funding, you must be able to predict the amount of time that the capital deployed takes to make a return on your investment. Whether that intention being a short term fix from a business hiccup or an offensive purchase of inventory, whatever the case maybe; case in point is that the capital should be used to help generate more revenue, which results in more profit.  Next is understanding the cost, as cost is determined by both time the funds are borrowed and risk to the lender based off the merchant’s profile. A Traditional Bank Loan at 8% APR over 5 years is equivalent to our 6-24 month Revolving Working Capital Loan at 40% without prepayment penalties, collateral, extensive paperwork, not revolving, etc. Reason being, the Bank Loan is 40% over 5 years, and our Working Capital Loan is 30-40% over 6-18 months. The key difference here is the term length. Don’t let a Traditional Bank fool you with single digit interest rates as that is interest rate paid annually and certainly adds up over the year. Take your house for instance over a 15-30 year mortgage and multiply the percentage; it’s a lot! We give you the cost with simplicity and total transparency. As mentioned if your business is predicted to make a return every 6-12 months it wouldn’t make sense to take on a Traditional Bank Loan at the same cost and a lower amount offered if you’re predicted profits are substantially less than that. For example, a merchant gets approved from a bank for $100k for 5 years after a 90 day process and we are able to approve a merchant for $200k for 12 months (We are able to lend 100%-500% more than Traditional Banks) after a 24-48 hour process. For example we are able to offer $200k every year with prepayment discounts, that is $1M over 5 years because we are able to offer you $200k every year compared to $100k over 5 years from a bank with prepayment penalties. As your business grows, this amount is subject to substantially more. In the given example, that is 1000% more capital put to work for your business at the same cost, just shorter repayment periods. In fact the 6-24 month repayment lengths are statistically better for small businesses as there is a lower default ratio and higher growth in annual revenue.

Our small business funding is designed to keep your business sailing in deep water and infused with the lifeblood of business working capital; every 3-6 months. Not to mention we are able to get you more capital after your term is 40%-50% paid down. Our capital is ideal and designed for businesses nationwide as the funding is given in large enough amounts and given frequently to put to work at approximately the same cost. Traditional Banks are not only lending less, but also can take a lot of time to close up to 90 days. Timing is crucial in this fast paced business world we live in today. Our capital is also tax deductible and there are prepayment discounts not prepayment penalties. Unlike banks which is backed by the government, our funds are from Private Investors and Venture Capitalists who not only believe your business will be able to repay the termed loan, but be able to grow from it as well.

VIP Capital Funding strives to build long term relationships across all of their clients and graduate their clientele to better terms and rates along the way.

The primary focus is you. Let’s move forward and get the funding you want. Give us a call, fill out the funding application or fill out the form above for a brief consultation and we will be in touch with you shortly. We are available 24-7, and there are multiple ways to contact us.

Writer: Joshua Triplett | CEO Of VIP Capital Funding

Less is more here, over the years our company have spoken with and have done business with 1000s of  business owners, but one thing that comes to mind as the top two industries in financially servicing high dollar amounts in no order is Healthcare and Construction Companies to meet their Financial Needs.  A 3rd one on the list is a tie for IT/Staffing/Restaurants., and although we have helped fund business loans to a multitude of industries Healthcare and Construction of all verticals benefit from our capital the most. Reason being, these have high profit margins to negate the cost of our capital and both industries are in constant need of supply, material. This means time is of the essence, these clients can’t afford to wait 40–90 days in with a low 1% approval ratio and I wouldn’t recommend it to business owners as it’s a shot in the dark in this economy in doing so. At VIP Capital Funding each an everyone of our Financial Officers understand this and we beat your bank in dedication, 95% approval ratios, high funding amounts, and speed to get your business loan delivered within 1-3 days. This is all to increase Profits/ROI for the business owner and everyone wins!

Respectfully

Joshua Triplett

It’s very important to have sufficient capital when you own a small business. But if you plan on truly being successful, it’s equally important to have both fixed and working capital. What else is important? Knowing the difference between them. That way, with maximum efficiency, you’ll be able to better operate your business. For more cost-effective day-to-day operations, efficient use of both fixed and working capital is essential.

Let’s take a look at the differences between these types of business capital.

Working Capital

Working capital is more fluid compared to fixed capital. Deduct your liabilities (what you owe) from your assets (the value of what you have) to figure out your amount of working capital. This is what you’ll use to keep your business functioning, pay bills, etc. – they are your liquid assets. You’ll be able to expand business operations and buy more inventory as your working capital increases. You will also be able to increase your profits and pay off debts as you increase your working capital.

Fixed Capital

All of your tangible business-owned property is included in fixed capital. Meaning, items that are not liquidated or sold off quickly. It includes long-term business assets such as the following:

• Tools
• Inventory
• Commercial equipment
• Real estate
• Property
• Equipment

Investments that depreciate over time are also included in fixed capital. Your fixed capital will also increase as your business grows.

The Need For Both Fixed and Working Capital

Lots of fixed assets are a great thing to have. However, if you require funds to keep the utilities on or pay your employees, they won’t do you much good. Your business will be able to steadily grow with the right amount of working capital. For your company to function well on a day-to-day basis, and pay off all the bills you acquire, you’ll have sufficient money. Also included in this would be things like paying your taxes and paying our employees. Acquired profits can be reinvested in your business as your business becomes more efficient. This will allow you to expand and grow.

Need Working Capital? Contact VIP Capital Funding

We work with top-tier United States investors and are a leading Fin-Tech Firm in the country. We are VIP Capital Funding. With our unrivaled business approach and working capital, you can gain a competitive advantage. With minimal paperwork, we can help to facilitate substantial amounts of working capital to aggressively improve cash flow for small to midsize businesses. Check out our reviews to see what past clients have to say about us.

Need working capital? Turn to VIP Capital Funding. We offer tailored consultation from experienced financial officers and an easy application. When banks say no, we say yes. We currently boast a 95% approval ratio. Rather than valuing credit scores, we value cash.

For no upfront fees, early prepayment discounts, a tax deductible interest rate, and more, speak to one of our representatives at 800-735-7754 or email us at [email protected].

You can also hit the “Apply Now” tab on our homepage and use our convenient online form to get started.

No matter how experienced you may be as a business owner, it’s no simple task to take your business to the next level. You need to make sure there’s enough money. But when you need financial answers, where do you go? When you need funds, there are different steps you can take. The solution for your business could well be a merchant cash advance.

Once your account receives the money from this cash advance, you can use it for whatever business purpose you choose: enhance your marketing campaign, hire staff, pay for products, etc. If you have a good plan crafted, and you follow it, in no time at all, you’ll be able to earn your money back. When you see the final outcome, you’ll be assured you made a good investment decision.

Let’s examine the benefits of a merchant cash advance.

Expand Your Business to a New Location

Maybe you’ve outgrown the location you’re in. Maybe you want to keep your current store, but expand your business to another location as well. That takes money. To grow your business, a merchant cash advance will come in very handy. The new store location will not only need to be purchased, but the store itself will need to be stocked, employees need to be hired, etc. All of that is going to take a significant amount of cash flow.

Refresh and Revitalize Your Store

For a store redesign, remodel, refresh, etc., money talks. Don’t skimp on the rejuvenation of your store simply because you don’t have the funds to pay for the best construction items. Your customer experience will be affected by the atmosphere in which they shop. If you’re expanding, you’ll want to fill the space with more products, so you need money for that, as well.

Additional Team Members Can Be Hired

You may need to hire more people if your business is busy, if you’re expanding, you have a busy season coming up, etc. The best way to overcome the problem of paying your new team members could be to take out a merchant cash advance. Orders will be processed more efficiently and quickly, and more customers will likely be attracted by having extra people on hand.

Buy More Products

Do you have a busy season coming up? If so, you will probably need to buy more products. With your fast merchant cash advance, you can. To support the demand of your customers, you must make sure you have enough products on hand.

Your Marketing Campaign Can Be Expanded

Get your message in front of more eyes by expanding your marketing campaign with your quick business loan. You can work wonders with both off-line and online advertising platforms.

Looking for A Merchant Cash Advance? Contact VIP Capital Funding

For a vast array of reasons, sometimes a business needs a bit of extra cash. We are VIP Capital Funding. If you need a merchant cash advance, working capital, a small business loan, etc., turn to us before you go anywhere else.

For no upfront fees, a tax deductible interest rate, early prepayment discounts, and more, speak to one of our representatives at 800-735-7754 or email us at [email protected].

You can also hit the “Apply Now” tab on our homepage and use our convenient online form to get started.

Why do some businesses apply for small business funding? Reasons can include the following:

• To reduce monthly costs, refinance existing loans
• To hire more staff
• To purchase machinery
• Loans and business grants for working capital

A recent study showed that in the last three years, nearly 45% of small businesses sought some type of funding externally. But why? Let’s look at the most common reasons for finance applications.

Debt Reconstructing

You can make your business finances more manageable by acquiring a loan for the reduction of costs and consolidation of funds you’ve borrowed. What you’re doing is taking your company’s current debt and restructuring it. By reducing your monthly payment amount, a loan can help you restructure existing debt.

Growth Funding

You may need funding if you want to execute business plans, take your business to the next level, and grow. A growth finance loan can help with the following:

• Expand internationally
• Hire additional staff
• Move to a new premises
• Expand your services or product range
• Increase sales and more

You may be better able to make your ambitions a reality and take advantage of new opportunities if you have the right growth finance.

Starting a Business

To get a starting business off the ground, funding is frequently needed. Small businesses need good cash flow. Though some people manage to start a business with their own funds, many need to seek external funding because it’s hard (if not impossible) to self-fund  a company to profitability with just your own on-hand cash.

Asset Purchase

Vehicles, machinery, and other assets usually need to be purchased if you plan on increasing sales and growing your business. Your company’s working capital expenses may be covered by the cash you have on hand. But, so your business can expand, when you need to purchase new assets, you might look for a loan to cover expenses.

Working Capital

A company’s financial health relies on any number of factors, one of which is sufficient working capital. The future of your business can be seriously impacted if you don’t have enough working capital. So businesses can fulfill their ambitions for growth, to create working capital, some choose to apply for external funding.

Looking for Small Business Funding? Contact VIP Capital Funding

We are VIP Capital Funding. With our unrivaled business approach and working capital, you can gain a competitive advantage. We work with top-tier investors and are a leading Fin-Tech Firm in the United States. With minimal paperwork, we can help to facilitate substantial amounts of working capital to aggressively improve cash flow for small to midsize businesses.

Need small business funding? Turn to VIP Capital Funding. We offer early prepayment discounts on flexible business loans. If you need funding for payroll, day-to-day operational expenses, expansion, marketing, inventory, etc., apply for business funding with us. To yield great ROI, the loan is designed to cover bi-quarterly and quarterly expenses and investments as it is revolving working capital.

Check out our reviews to see how pleased our past clients are with our services.

For no upfront fees, a tax deductible interest rate, early prepayment discounts, and more, speak to one of our representatives at 800-735-7754 or email us at [email protected].

You can also hit the “Apply Now” tab on our homepage and use our convenient online form to get started.

There are any number of industries served by loans. New business owners may need to borrow money to start their company. Established businesses may need money to cover costs.

At times, it can be difficult to determine which version of a loan is best. They can be tricky. Let’s consider the basics: In order to pay off your loan, there will be a specific timeframe. Whether from a couple of months to a couple of years, it might be on the shorter side. Then again, you may decide to take a decade or more to completely pay back the money. For each of these options, there is an upside and a downside. Depending on your loan scenario and other factors, one may be a better fit for you and your company.

Here we will examine short-term vs. long-term loans and how they differ.

Interest Rates

High interest loans are more likely to be offered for short-term borrowers. Though significantly higher interest rates apply here, these types of loans from private lenders do tend to be more flexible and lenient. As much as possible, shorten the repayment period.

Lower interest rates frequently apply to longer-term loans. Remember, however, the longer you take to pay off that loan, the more interest you’re paying (over time). Clearly, paying a loan off as quickly as possible is the best way to go – regardless of whether it’s long-term or short-term.

The Process for Approval

Both the application process and the approval process are usually quicker for short-term loans, generally speaking. A lender might be more apt for short-term loan approval because the commitment is shorter. Regardless, the lender wants to know for certain that the borrower will pay the money back – the risk just seems less if the payback duration is shorter.

To prove to the lender your company is a good risk, more documentation may be required for a long-term loan. More research and more documentation means more time before you can actually receive the loan.

Schedule for Repayment

You may need to make more frequent payments with a short-term loan because it doesn’t go on for as long as a long-term loan does. You might need to make biweekly payments or even more frequent payments if the loan is only, for example, for a few months. Long-term loans, on the other hand, may require monthly payments, or every few months, or even quarterly. So it’s not a good idea to do a short-term loan if your company doesn’t generate a steady income.

Amount of Your Loan

Ordinarily, you will borrow a smaller amount of money with a short-term loan. Lenders may not be willing to shell out a large amount of funding if the payback time is considerably brief. They worry you may not be able to pay back such a large amount so quickly.

Because far more borrower research is done on the part of the lender for a long term loan, and they’re relatively assured the borrower is low risk or no risk, larger amounts are not uncommon with long-term loans.

Small Business Loans and More Are Available through VIP Capital Funding

We are VIP Capital Funding and we want to help you get the small business loan you need. We work with top-tier investors and are a leading Fin-Tech Firm in the United States.

For a tax deductible interest rate, no upfront fees, early prepayment discounts, and more, speak to one of our representatives at 800-735-7754 or email us at [email protected].

You can also hit the “Apply Now” tab on our homepage and use our convenient online form to get started.

Whether the head of a company is a small business owner, midsize business owner, or big business owner, it’s very likely they all have one thing in common – at one time or another they have probably needed a loan. Many entrepreneurs acquire a startup loan to begin the process of creating a business. During the operation of a business, it isn’t at all uncommon to run into a bit of a “funding issue” here and there – so loans come in handy for already-established businesses, as well.

There are countless types of loans that business owners may turn to, including the following:

• Merchant cash advances
• Micro-loans
• Commercial real estate loans
• Invoice financing or invoice factoring
• Equipment loans
• Business line of credit
• SBA loans and more

One kind of loan business owners may turn to is that of a term loan. There are, however, different types of term loans. Here we will examine a term loan in general and then look at the various types.

Term Loans – What Are They?

In exchange for pre-specified borrowing terms, a set amount of cash is provided to a borrower courtesy of a term loan. Very often, if a business has a sound financial statement and is already established, term loans are far more likely to be granted. The business owner/borrower agrees to specific terms (i.e., fixed interest rate, a flowing interest rate, repayment schedule, etc.) in exchange for a predetermined amount of cash. To reduce the total cost of the loan as well as the payment amounts, a considerable down payment is sometimes required.

Term Loan Types

There are three types of term loans. The payback time of the loan is more or less reflected in the name:

• Long-Term Loans – quarterly or monthly payments are required from either cash flow or profits, and collateral in the form of company assets is also required. These types of term loans can run from three years up to as many as 25 years. There will be a limit to financial commitments the business may take on including principles’ salaries, other debts, dividends, etc. To be earmarked for loan payment, the lender may specify the borrowing business is to set aside a predetermined amount of profit.
• Intermediate-Term Loans – paid back from the cash flow of the borrowing company, these loans are repaid in monthly installments and, more times than not, apply to a run of 1 to 3 years.
• Short-Term Loans – if the borrowing business can’t qualify for a line of credit, these kinds of loans may be offered. Short-term loans can apply to a loan up to and in excess of 18 months, but they are usually paid off in less than a year.

Contact VIP Capital Funding For a Small Business Loan

When you need a small business loan, before you go elsewhere, turn to us. We are VIP Capital Funding. We offer early prepayment discounts on flexible business loans. If you need funding for day-to-day operational expenses and more, apply for a small business loan with us.

For early prepayment discounts, no upfront fees, a tax deductible interest rate, and more, speak to one of our representatives at 800-735-7754 or email us at [email protected].

You can also hit the “Apply Now” tab on our homepage and use our convenient online form to get started.

Do you own a small business? Could you use a little cash now and then to cover payroll, day-to-day operational expenses, expansion, marketing, inventory, and more? We all need help here and there. But what can you do?

From hiring staff and buying goods to renting production or office space, you need money to run a small business. Unless some benevolent relative left you a nest egg or you’re independently wealthy, some funding will likely be necessary along the way.

What kind of assistance is there for funding small business owners when they need it? Let’s find out.

Product Presales

You’re less likely to have a crowded warehouse and/or make too many products if you pre-sell your products. It’s a great way to make money if your business is based on a single product and its sales.

Contests

It’s true. For entrepreneurs and businesses, financing and monetary rewards are sometimes offered by organizations through contests.

Loans from Family and Friends

There are numerous pros and cons, and it can be tricky, taking money from family and friends. Before using a loan from these people, make sure you scrutinize the situation closely and have everything written and signed.

Financing From a Vendor

With one or more of your vendors, you may choose to negotiate longer payment terms if the sale of your product determines whether or not you can pay your bills. Before implementing penalties and late fees, 30 days may be given for payment on invoices by some vendors.

Finance Purchase Orders

So a business can get the materials needed urgently, an advance is essentially extended by an organization that finances purchase orders. Once the goods are sold, the money is paid back.

Personal Financing

Keep in mind that unfortunate consequences may arise, but if you want to take out a second mortgage, or are willing to refinance your home – or if you have significant savings – personal financing may be an option.

Micro-loans

For individuals who might not ordinarily qualify for a bank loan on a traditional level, some institutions grant micro-loans. Note: Nonprofit organizations are frequently the benefactor in this instance.

SBA (Small Business Administration)

So the small business sector can grow and succeed, a vested interest has been shown by the United States government. To help entrepreneurs get started, numerous small business loan types are offered by the SBA.

Venture Capitalists And Angel Investors

Angel investors and venture capitalists are somewhat similar. If an up-and-coming, young business has a high potential for monetary returns and growth, venture capitalists and angel investors may want to invest in them.

In exchange for their investment, a share of equity may be asked for by venture capitalists. In the direction of the company, however, they may also want to have a voice.

Always on the lookout for the next great business investments, angel investors are different from other funding option types. Angel investors have funded some of the biggest companies today including Yahoo and Google. Some share of company equity will likely be required if you take money from an angel investor.

Crowdfunding

With the general public, many entrepreneurs, inventors, etc., especially over the last couple of years, have created crowdfunding sites for the funds needed. Some of these include Fundable and Fundly, Rocket Hub, Indiegogo, and Kickstarter. Your goals and needs will help to determine the right platform for you.

Alternate Sources for Loans

Lenders such as these fall just outside the perimeters of government institutions or banks. Make sure if you’re doing business with one of these alternate lenders, they are legitimate. Be sure to investigate all of the conditions and terms.

Need Funding for Your Small Business? Contact VIP Capital Funding

Turn to VIP Capital Funding when you need small business funding. We offer early prepayment discounts on flexible business loans. With minimal paperwork, we can help to facilitate substantial amounts of working capital. When you need help funding your small business, before you turn to someone else, confer with us.

For early prepayment discounts, no upfront fees, a tax deductible interest rate, and more, speak to one of our representatives at 800-735-7754 or email us at [email protected].

You can also hit the “Apply Now” tab on our homepage and use our convenient online form to get started.

Are you a business owner or are you considering starting your own business? At one time or another, more often than not, business owners need loans. While there are numerous types of funding available, one method is through term loans. Here, we’ll take a look at term loans, what they are, types of term loans, and more.

First things first – what’s a term loan? In exchange for specific borrowing terms, a lump sum of cash is provided to a borrower through a term loan. Frequently, if a business has a sound financial statement and is already established, term loans are used. The borrower agrees to certain terms in exchange for a specified amount of cash: i.e., a flowing interest rate, fixed interest rate, repayment schedule, etc. To reduce the total cost of the loan and reduce the payment amounts, substantial down payments are sometimes required.

Term Loan Types

There are several varieties of term loans. The lifespan of the loan is basically reflected in the name:

• Long-Term Loans – From either cash flow or profits, quarterly or monthly payments are required and collateral in the form of company assets is required as well. These can run from three years up to as much as 25 years. Any other financial commitments the business may take on will be limited including principles’ salaries, dividends, other debts, etc. Specifically for loan payment, the lender may require the business to set aside a precise amount of profit.

• Intermediate-Term Loans – From the cash flow of a company, these loans are paid in monthly installments and generally apply to a time span of 1 to 3 years.

• Short-Term Loans – If a business doesn’t qualify for a line of credit, these kinds of loans are usually offered. While they can apply to a loan up to and in excess of 18 months, repayment terms ordinarily run for less than a year.

Term Loans – Why Would a Business Get One?

Typically paid off between one year and 25 years, a term loan is frequently used for working capital, real estate, or equipment. A small business, in order to purchase fixed assets, often uses term loan cash. Example: For a business needing a new building or equipment for its production process.

In some cases, from month to month, a business will borrow the cash they need. Many banks, in order to help companies in this manner, have established term loan programs.

When You Need a Small Business Loan, Turn to  VIP Capital Funding

We are VIP Capital Funding. With our unrivaled business approach and working capital, you stand to gain a competitive advantage.

Need a small business loan? Turn to VIP Capital Funding. We offer early prepayment discounts on flexible business loans. If you need funding for payroll, day-to-day operational expenses, expansion, marketing, inventory, etc., apply for a business loan with us.

Check out our reviews to see how pleased our past clients are with our services.

For no upfront fees, a tax deductible interest rate, early prepayment discounts, and more, speak to one of our representatives at 800-735-7754 or email us at [email protected].

You can also hit the “Apply Now” tab on our homepage and use our convenient online form to get started.

Companies that provide cleaning services or other building services sometimes have a low entrance barrier. However, maintaining business operations involves frequent investments in your company, including bulk purchases of cleaning supplies, attracting new clients, and routine upgrades to cleaning tools like vacuums and industrial carpet steamers. While you wait for payments from clients or make payroll, you could need to fill cash flow gaps. Your cleaning service business may benefit from financing. Learn more about the different types of loans for cleaning business that help you acquire cleaning supplies or equipment or manage your financial flow.

Business Line of Credit

You have access to flexible, revolving funds through a business line of credit whenever you require them for your cleaning company. With a line of credit, you can take out as much money as you need, pay off the balance, and then have more money added to the line so you can use it again. A line of credit is typically used by cleaning companies to pay for upfront supply expenses or to bridge the gap in cash flow in between bills.

Short-Term Business Loan

Numerous online lenders provide quick business financing for startups like cleaning services. This kind of financing enables a business to borrow cash and repay it quickly, frequently resulting in a lower total dollar cost than a loan with a longer term. Terms range from three months to three years. A short-term business loan from an internet lender can be obtained much more quickly than a standard loan from a bank. Normally, the applicant can submit an application in a few minutes and receive funding within a few days. Many cleaning companies will take out a short-term business loan to fund marketing or advertising initiatives or to buy cleaning products in bulk at a discount.

Equipment Funding

Another approach to pay for the purchase of business equipment is through equipment financing (besides just using a loan or line of credit). Equipment for a firm can be any physical object needed in daily operations. This could be a vacuum cleaner, a professional rug cleaner, or the van that a cleaning service company uses to commute to client appointments. Many cleaning firms use equipment loans to expand their collection of business equipment without using up their cash reserves.

Bank Loan

The type of funding you are probably most familiar with as a business owner is a typical bank loan. In general, collateral is needed to receive a bank loan, and the application procedure can take several weeks. The loan term can range from two to twenty years. Even though bank loans’ interest rates can be alluring, many cleaning companies might have trouble being approved and discover that the application process is too time-consuming for their cash flow requirements.

SBA Loan

Although the Small Business Administration does not lend money directly, it does so through partner banks and credit unions. However, in some cases, the SBA Loan Guarantee Program will allow a borrower to qualify even if they do not otherwise meet the stricter requirements set forth by the bank. This can be an option for your business if your cleaning company is a well-established enterprise with a few years under its belt and your personal credit score is higher than 680.