Key Success Element #5 - Pre-Qualified Funding
10 Ways To Pre-Qualify Your Business For Funding
The Business Success Scan focuses on 10 primary small business loan programs. Together, these products service about 90% of the business financing needs of small business owners nationwide, and these are the programs with the highest percentage of closing.
Run Your Free Business Success Scan NowThe 10 Primary Small Business Loan Programs
Here are the top ten small business finance programs and what each one takes to pre-qualify:
Unsecured Financing
A spectrum of corporate credit cards available from many providers. You could apply on your own, but without knowing a lender's underwriting and approval guidelines, your potential for getting declined is high — and three declines on any business lending product will get you declined for all business lending products for at least the next six months. Typical approvals for business credit cards are $25,000 to $150,000.
Revenue Based Loan
Your gross revenue is the primary concern. If your business has consistent gross monthly revenue, this program is easier to get approved for than business credit cards. Repayment is made Monday through Friday via automated clearinghouse from your business checking account. Typical approvals are $10,000 to $250,000, normally funding about 10% of your annual gross revenue.
Business Term Loans
If your business has tax returns for the last two years showing at least $250,000 in gross annual revenue, you may be a good candidate for this program. It funds between $50,000 and $500,000 to existing businesses planning to use the funds for growth.
Equipment Financing
For business owners seeking financing to buy "things" — computers, office furniture, software, vehicles, forklifts, machinery, or other hard goods — most of which can be financed without using valuable cash flow. Equipment financing is available from $10,000 to $5,000,000 and can be bundled with other funding programs.
Investment Rollover
A little-known provision in the tax code allows small business owners to roll their retirement investment accounts into an investment in their own business and avoid the tax penalties for taking the money out. If you have at least $35,000 in retirement investment accounts, this business financing product may be for you.
Account Receivable Factoring
If your business has open invoices from other businesses that owe you money, those invoices can be turned into cash. This gives you fast access to cash, removes the burden of chasing payment, and lets you offer Net 30 day credit terms to your clients. Available from $10,000 to $30,000,000 and can be bundled with other funding programs.
Purchase Order Financing
If you have an open purchase order for finished goods you're having trouble filling, Purchase Order Financing may be right for you. Available from $10,000 to $30,000,000 and can be bundled with other funding programs.
Credit Union Loans
Credit Unions have started to come back into business lending in a big way. Rates are usually lower than other types of loans, terms may be better, and they tend to be easier to qualify for.
SBA Express Loans
The SBA Express program provides quick reviews and smaller loan amounts, with the SBA responding within 36 hours. The loan range is $25,000 to $350,000. Funds can be advanced as working capital, a line of credit, or a commercial real estate loan, and the program can move very fast for $50,000 and less.
Vendor Trade Financing
95% of all business lending is done business-to-business, not lender to business. Once you complete the Business Success Assessment, you gain access to a searchable database of over 3,000 vendors that offer Net 30, 60, and 90 day payment terms.
Why Business-To-Business Financing Matters
95% of all business lending is done business-to-business and not lender to business. That means many of your best funding options — like vendor trade financing — come from the businesses you already work with, not just from banks.
The Bottom Line
Once you complete the Business Success Assessment, you'll know which of these funding programs your business pre-qualifies for now — and exactly how to pre-qualify for the rest in the future. These 10 programs cover about 90% of nationwide small business financing needs and carry the highest percentage of closing.
Find out which of these 10 funding programs your business pre-qualifies for right now.
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