Small Business Loans in New Mexico

Business Line of Credit

A business line of credit is a great option for business owners looking for flexibility. Eligible businesses are given a predetermined credit limit, allowing you to withdraw funds from it as needed. With a business line of credit, you only need to repay the money you've drawn, plus the interest. It's a revolving line, so you can repeatedly access the funds as long as you don't exceed the limit.

SBA Loans

The Small Business Administration (SBA) created SBA loans to provide low-interest rates, extended repayment terms, and high loan amounts to small businesses that would otherwise disqualify from bank-rate financing. The SBA guarantees up to 85% of the loan, meaning that the Small Business Administration will pay the lender the guarantee if a default happens. An SBA loan is one of the most highly-coveted loan programs among small businesses.

Asset-Based Lending

Asset-based loans rely on a business' valuable assets rather than cash flow and credit, such as inventory, invoices, real estate, equipment and machinery, or purchase orders. This loan program is easier to qualify for since the collateral offered mitigates the risk for lending institutions. The repayment terms, interest rates, and loan amount depend on the value of your assets. But remember that the more liquid your assets are, the better it is for lenders.

Invoice Financing

Invoice financing lets you sell unpaid invoices to a third-party company for upfront cash. Lenders typically advance up to 90% of the total invoice value and will send the remaining percentage once your customers pay them, minus a small fee. With invoice financing, you don't have to wait months for your customers to pay. You'll receive payment immediately.

Business Term Loan

The structure of a business term loan is what usually comes to mind when you think of a loan. Lenders give you a lump sum that's payable in regular installments within a set period of time. Depending on the lender's discretion, the payments can be weekly, bimonthly, or monthly.

Equipment Financing

You can apply for equipment financing if your business needs company vehicles, heavy equipment, or even kitchen appliances. This funding option gives you the loan funds required to purchase or lease equipment and machinery. The equipment is collateral for the loan, so you don't have to pledge a personal guarantee. However, the lender may repossess the equipment in case of a default.

Purchase Order Financing

Purchase order financing gives you the business resources needed to fulfill large purchase orders from your customers. The PO financing company usually covers 100% of the purchase order cost. Once approved, they will pay your suppliers so they can manufacture and deliver the goods to your customers. The PO financing company will receive your customer's payment, subtracting the loan repayment along with it, before giving you your profit.