SBA Loans Halted-August 2015

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If you’re a small business owner looking to the government to help out with a business loan for new equipment or to expand your business, get in line. As of the end of August 2015, the Small Business Administration has already reached its $18.75 billion ceiling for fiscal 2015. Unless Congress* agrees to raise the ceiling, small business owners will have to wait until October 1 for approval.

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The demand for SBA loans has been increasing due to an improving economy and a growing propensity for Americans to start new businesses. Due to increased regulations, most banks only want to provide financing for large multi-national businesses. The downside for small businesses that have annual revenues between $1 million and $50 million dollars is that they need that financing now. Waiting until 2016 is usually not an option so they will need to consider another alternative for financing.

Typically when businesses want to grow and take advantage of new opportunities, they have several options aside from bank and SBA loans.

They can use Credit cards which come with a rate of 10 – 20% or
They can use merchant account financing with a rate of 8-10%. Or
They can bring in new investors, which means giving up 5-50% ownership in the business.

Our solution, on the other hand, involves invoice factoring, which is just selling some or all of your outstanding invoices, that typically costs one-half of a percent, to 3%.

Obviously, selling your outstanding invoices is the most cost effective financing solution. All you need is a great invoice factoring company like Universal Funding to partner with, monthly revenue of $50 thousand to $5 million dollars per month, and invoices for goods or services that have already been delivered.

So, if you can’t wait months for the SBA to get funding or you just want a quick and inexpensive solution to financing, give Universal Funding a call at 1-800-405-6035.

*After this article was published, President Obama signed an emergency bill, increasing the lending limit for the fiscal year of 2015.

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