The word leverage “refers to a factor by which force is multiplied,” but it also has financial significance. When it relates to finance, it usually means “an investment strategy of using borrowed money—specifically, the use of various financial instruments or borrowed capital — to increase the potential return.” It also refers to debts used to finance assets, and by any of these definitions, SBA loans can be put to use.
As one expert explained, getting SBA loans can “help you grow your business without taking on possibly crippling debt” because they come with low-interest rates and flexible terms. Among the most popular of the different SBA loans and programs are the 7(a) loans, and though popular, they can be very challenging to obtain.
The Challenges of Obtaining SBA Loans
Many say that applying for 7(a) loans via the SBA takes a bit of prep work and some know-how. You will need a long list of documents (borrower details, personal history, financial statements, three years of tax returns, business certifications, copies of leases, loan application histories, and so on). You will then have to be matched with a potential lender because these banks only follow SBA guidelines while also using their own criteria to evaluate and approve loans. There is an expedited process, as well, but this features a limit to financing and is capped at a 50% guarantee by the SBA.
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Getting SBA loans rates as one of the savviest ways to fund a company of almost any size or status, but it often requires expert help. If you are eager to obtain such a loan and enjoy expedited processing and negotiation, contact BizCap Commerical Finance online or by phone at 833-224-9227. Specializing in flexible financing for any industry, they are ready to help you along the road to growth and success.