Loans provided via the U.S. Small Business Administration (SBA) are a great way to start or grow a company and are often used as a supplement to other forms of business financing.
Navigating the complexities of applying for an SBA loan calls for specialized knowledge and experience. To ensure that your application is complete, accurate, and puts your business in the best possible light, many entrepreneurs turn to an SBA loan specialist.
As seen in the recent post, SBA Loans: What They Are and How to Get Them, understanding the types of loans, eligibility requirements, loan amounts, and repayment terms is essential. With an experienced SBA loan specialist, you will have access to the funding you need for your business. Here are six benefits of working with an SBA loan specialist.
1. Optimal Interest Rates. The SBA works with financial institutions to provide different loan types, which carry variable or fixed interest rates. The SBA allows the banks to establish their own rates within the set limitations of the program. These rates are based on factors such as an applicant's credit score, start-up vs. existing business, equity injection and collateral. Payment terms are also usually extended, giving borrowers more time to pay. Working with an SBA loan specialist gives you access to a larger network of loan providers that have strong reputations and experience with businesses like yours.
2. Experience with SBA Loans. You want to work with an SBA loan specialist that has extensive experience helping small businesses through the SBA programs. At Benetrends, for example, we bring more than 35 years of SBA Loan Program experience supporting entrepreneurs with securing the right financing for their benefits.
3. Access to Capital. As a small business, you want access to your capital as quickly as possible. With an SBA loan specialist working on your behalf, you can be sure your paperwork is thorough and complete, allowing your loan application to be processed faster. At Benetrends, we provide a dedicated loan closer to help get you to "yes" more quickly and get you the capital you need to launch or grow.
4. Lower Down Payments. Nearly every small business loan requires some down payment. With SBA loans, the size of those down payments is usually much smaller than for other business loans, typically 10 percent to 20 percent of the total project costs. An SBA loan specialist can help you reduce the size of the cash injection you need to start.
5. Usage Flexibility. Understanding how you can use borrowed money is critical. With SBA loans, there are often fewer restrictions than with traditional business loans. For example, the 7(a) is the most common SBA loan and can be used to start up a business, to refinance existing debt, leasehold improvement, purchase a building or upgrade facilities. Your specialist can help point out the right loans for your needs.
6. Complementary Financing. If you are using other forms of financing for your small business, you may find yourself a little short. That is where SBA loans can come in handy, supplementing 401(k) funding or commercial funding amounts.
How to Choose an SBA Loan Specialist
For over 35 years, Benetrends has worked with small business owners to secure SBA loans. Working with Benetrends gives you access to our experienced SBA loan specialists that help develop a customized solution for your unique business needs. To learn more about how Benetrends can help finance your small business, schedule a consultation.