SECURED BUSINESS LOAN TYPES
Explore our guide to various types of Secured Business Loans. Whether you’re considering collateral-based options or seeking insights into secured financing solutions, we’ve got you covered.
Factoring
Benefits: Perfect credit not required.
Drawbacks: Customer may rather deal directly with business, Depending on the situation can be a higher cost.
Invoice
AR Aging Report
P&L
BS
One (1) year tax return (most recent)'Six (6) months Bank Statements
Small SBA Loans
Benefits: Low APR, Fixed or variable rate. Start Up Financing. Commercial property financing. low down payment.
Drawbacks: Longer application process, Require a personal guarantee or collateral and down payment.
Full financial package + year-to-date financials
and FICO score
higher requirements. Net worth is a must.
Financing and Leasing
Benefits: Lowest interest rate to buy equipment than MCA ,Tax deductible and depreciation benefits, Own the equipment outright. Monthly payment.
Drawbacks: Equipment can become outdated. Higher down payment for bad credit. No early payoff discount.
1-2 years tax returns (only if request is over $75
000)
3 months business bank statements
Invoice or Quote for equipment to be financed
Large SBA
Benefits: Lowest interest rates of all types, Longer terms, Can borrower larger amountSeeking.
Drawbacks: Application is time consuming, Long time to approval and funding, Down payment required.
3 years tax returns
personal financial statement
year-to-date financials
and FICO score.
Commercial Loans
Benefits: Investment 4+ Unit Commercial Real Estate is still booming. Earn equity on property, Built in collateral.
Drawbacks: LTV is never 100%. Must include plans to build a structure. Longer application process.
Borrower Financial Statement (PFS)
Personal Tax Return(s)
Business Federal Tax Return(s)
Business Financial Statement(s)
Interim Balance Sheet (Partial Year)
Notes Payable Schedule
Projections
Rent Roll (Investment or Multi-Family Commercial Real Estate)
Appraisal(s)
Environmental Site Assessment(s)
Site Visit / Pictures
Survey(s)
Title Policies