Mihir Patel’s Post

Have you considered an SBA loan to consolidate debt and improve cash flow? Business Scenario:Example of debt refinancing with an SBA 7(a) Loan A small retail business has two existing loans:  Equipment Loan: $80,000 at a 15% interest rate, payment of $1,920/month  Short-Term Loan: $40,000 at a 18% interest rate, payment of $1,150/month  These loans have a high monthly payment, totaling $3,070. Objective: reduce these payments and free up cash flow.  Solution:  Refinance the debt with an SBA 7(a) loan at an 10.75% interest rate. Apply for a new SBA loan of $120,000, which covers both existing loans.  Results: Lower Interest Rate: The new 10.75% interest rate is lower than the previous rates, resulting in a reduced monthly payment of $1,602. This results in monthly savings of $1,468.  Consolidated Debt: The two loans are consolidated into one, simplifying debt management.  Improved Cash Flow: With the lower interest rate and longer repayment term, the business has better cash flow, allowing for reinvestment into the business. However, your business may get approved for a working capital loan that exceeds the amount of debt you wish to refinance, leaving you with additional working capital to grow your business. Bummer:) [email protected] 805.588.5383 IntegrityPayments.com #commercialloans #realestateloans #equipmentfinancing #cashflow #businessexpansion #businessaquisition #lineofcredit #renovation

Cash…The oxygen of every business.     SBA 7a Loans … a highly leveraged lending product.   How are these two statements connected?   The SBA allows banks to lend at a 90% LTV effectively, giving businesses a huge cash injection.   The downside is that there is a large amount of principal that businesses pay interest on every month.   Most SBA lenders price their deals at a variable rate.   In 2020, the most a lender was allowed to charge for the SBA 7a product was Prime + 2.75%.   Businesses with an SBA 7a loan were paying a 6% APR max.   With the rise of the Prime rate, those same borrowers are now paying a 11.25% APR. A 5.25% increase!   A deal that cash flowed in 2020 can now be struggling to meet their debt obligations.   Here’s a solution: Refinance the debt into a lower fixed rate loan.   Lenders in our network are refinancing existing SBA 7a debt into low fixed rates.   Are you feeling the squeeze from your 7a debt?   Reach out and find out how we can help.

Discover the flexibility of SBA loans! Not only do they provide breathing room for borrowers in a tricky economy, but they also offer lenders a savvy solution. With SBA financing, commercial loans can be smoothly refinanced, helping both borrowers and lenders navigate financial hurdles. Let's unlock these benefits together! 🔓 https://bit.ly/3tqf2a9 #SBALoans #FinancialSolutions #ServionCLR Total SBA, Brian Mielke

1st Capital Financial's SBA 7(a) Loan Guide for 2024 is here! There aren't many loan options as flexible and affordable for small businesses as the SBA's 7(a) program. Read about the latest pros and cons, requirements, rates, application process, and more: https://lnkd.in/ghR29u8Q. #sba #sbaloans #sba7a #smallbusiness #businessloans #1stcapitalfinancial

📊 Comparing Interest Rates: Merchant Cash Advance vs. Unsecured Loans vs. SBA Loans 📊 Navigating the world of business financing can be complex, especially when comparing different options. Let's break down the interest rates and key differences between Merchant Cash Advances (MCAs), Unsecured Loans, and SBA Loans to help you make an informed decision. 🔹 Merchant Cash Advance (MCA): MCAs provide quick access to capital but often come with high costs. Instead of a traditional interest rate, MCAs use a factor rate, typically ranging from 1.11 to 1.49. This can translate to an APR of 40% to 350%, depending on the repayment terms and the health of your business. 🔹 Unsecured Loans: Unsecured loans, which don’t require collateral, generally have higher interest rates compared to secured loans. These rates can range from 10% to 30%, depending on your creditworthiness and the lender’s terms. While more affordable than MCAs, they require a solid credit history and consistent cash flow. 🔹 SBA Loans: SBA loans, backed by the Small Business Administration, offer some of the lowest interest rates in the market, usually ranging from 7% to 12%. These loans are highly competitive and come with stringent qualification criteria, but they provide favorable terms and longer repayment periods, making them a cost-effective choice for many businesses. Key Takeaways: Cost Efficiency: SBA Loans > Unsecured Loans > MCAs. Speed of Access: MCAs > Unsecured Loans > SBA Loans. Qualification Requirements: SBA Loans > Unsecured Loans > MCAs. Choosing the right financing option depends on your business's immediate needs, financial health, and long-term goals. Assess each option carefully to find the best fit for your business. 💼 If you have any questions or need guidance on selecting the right loan for your business, feel free to reach out #BusinessFinance #MerchantCashAdvance #UnsecuredLoans #SBALoans #InterestRates #SmallBusiness #Entrepreneurship #FinancingOptions

Considering a short-term loan for your business? Here's what you need to know: Urgent Cash Needs: Short-term loans can be a lifeline for businesses facing unexpected expenses or cash flow gaps. Whether it's covering payroll, purchasing inventory, or handling emergency repairs, a short-term loan can provide quick access to much-needed funds. Flexible Repayment Options: Unlike traditional bank loans, short-term loans typically have shorter repayment terms, ranging from a few months to a year. This flexibility allows businesses to repay the loan quickly, minimizing interest costs and freeing up cash flow for other needs. Fast Approval Process: Short-term loans often have a streamlined application and approval process, making them ideal for businesses in need of rapid funding. With minimal paperwork and quick decision-making, entrepreneurs can access funds in a matter of days, if not hours. Higher Interest Rates: While short-term loans offer convenience and speed, they often come with higher interest rates compared to long-term financing options. It's essential to weigh the cost of borrowing against the potential benefits and ensure that the loan terms are manageable for your business. Evaluate Your Needs: Before pursuing a short-term loan, carefully assess your business's financial situation and determine if borrowing is the best course of action. Consider alternative funding options, such as lines of credit, business credit cards, or seeking investment from stakeholders. In conclusion, while short-term loans can provide immediate relief for pressing financial needs, they should be approached with caution. Evaluate your business's cash flow, repayment ability, and long-term goals to determine if a short-term loan aligns with your needs and financial strategy. #ShortTermLoans #BusinessFinance #CashFlowManagement

RIP THE RECOVERY LOAN SCHEME (RLS) The RLS scheme was launched on 6th April 2021 replacing the CBILS facility created during the Covid period. It closed on 30th June. At the time, the name was very appropriate, but had become increasingly less so as time progressed. Over the last 12 months, I’ve arranged a little over £2m of RLS loans, almost all to enable SME businesses to deliver growth opportunities. Therefore, the rebranding to the new Growth Guarantee Scheme from 1st July seems appropriate with its title more accurately describing its main purpose. All other features remain unchanged: ·      Available through accredited lenders ·      Products covered include invoice finance, asset finance, and working capital loans. ·      Personal guarantees are required, but the lender cannot distrain on the guarantor's main residence, your home is therefore not at risk. It also means that homeowners and tenants are treated equally. ·      Lenders obtain a 70% guarantee from the government. ·      Existing Bounce Back Loans, CBILS, or RLS do not prevent consideration under the new GGS. Would the Growth Guarantee Scheme enable you to take forward planned growth or to replace and modernise existing equipment? Please message me, call 07557 980473, or email [email protected] to start a conversation. 

⚖️ The Double-Edged Sword of Short-Term Business Loans ⚖️ When unexpected expenses strike or opportunities arise, short-term business loans can seem like a tempting solution. However, these loans come with both advantages and drawbacks that every entrepreneur should carefully consider. Pros: 🚀 Quick Access to Funds: Short-term loans offer a fast approval process, providing the cash you need to tackle urgent challenges or seize time-sensitive opportunities. 💰 Flexible Repayment Terms: With short repayment periods, typically ranging from 3 to 18 months, you can quickly clear the debt and move forward. Cons: 💸 Higher Interest Rates: The convenience of short-term loans often comes with steeper interest rates, which can add up over time and eat into your profits. 📉 Potential Debt Cycle: If not managed properly, the cycle of taking out new loans to pay off old ones can lead to a dangerous debt spiral. Before diving into short-term business loans, it's crucial to weigh the pros and cons carefully and ensure you have a solid repayment plan in place. Call to Action: Visit www.creditbizpro.com to explore alternative financing options and make an informed decision for your business's long-term success! CONTACT us TODAY and our Finance Team will walk you through everything step-by-step from ensuring your business is set credibly to meeting lending guidelines before you apply by clicking the link below: 💰 https://lnkd.in/gctddGU9 💰 #ShortTermBusinessLoans #BusinessFinancing #CashFlowManagement #EntrepreneurTips #BusinessLoans #WorkingCapitalLoans #SmallBusinessFinance #AlternativeLending #DebtManagement #FinancialPlanning #EntrepreneurLife #BusinessCredit #EntrepreneurTips

"SBA Loans 101📚" Securing funding for your biz? Get an SBA loan guaranteed by the US government. Lower interest rates and longer repayment terms💰. Good character, solid biz plan and loan repayment ability are musts😉. Patience and paperwork are key🔑. https://lnkd.in/gTYsNUtR #GrowthHack #BusinessGrowth #SmallBusinessLoans #BusinessGrowth #SBALoans101 #SBA7a #SBAExpress

Business loans can be categorized into two main types based on the security provided by the borrower: SECURED and UNSECURED. Each type has its advantages, considerations, and suitability depending on the business's financial situation, borrowing needs, and risk tolerance. Secured Business Loans: 💥 Collateral Requirement: Secured loans require collateral, such as real estate, equipment, inventory, or accounts receivable to secure the loan. The collateral serves as a guarantee for the lender against default, reducing the lender's risk and potentially enabling lower interest rates and higher loan amounts. 💥 Lower Interest Rates: Due to the reduced risk associated with collateral, secured loans typically offer lower interest rates compared to unsecured loans. Making them a cost-effective financing option for businesses with valuable assets. 💥 Higher Loan Amounts: Secured loans often allow businesses to borrow higher loan amounts based on the value of the collateral provided. Providing greater access to capital for expansion, investment, and growth initiatives. 💥 Longer Repayment Terms: Secured loans may offer longer repayment terms, spreading the loan payments over a more extended period. This reduces the monthly payment burden and improves cash flow management for the business. 💥 Asset Risk: The primary risk associated with secured loans is the potential loss of collateral in case of loan default. It's essential to carefully assess the business's ability to repay the loan to avoid losing valuable assets. Secured loans provide access to higher loan amounts, lower interest rates, and longer repayment terms but require valuable collateral to secure the loan. #commercialfinance #securedbusinessloans #businessloans