Small Business Loans in Arizona

Business Line of Credit Arizona

Small businesses looking for small business financing that offers flexibility can benefit from business lines of credit. Business lines of credit are revolving credit where businesses get a credit line they can draw from on an as-needed basis. They can use the resource for a wide variety of business needs, including working capital, equipment purchase, inventory, new facilities, and more. Business lines of credit can be secured or unsecured business lines of credit. With secured lines of credit, businesses might need to pledge collateral, while unsecured business lines of credit do not have the same requirement.

SBA Loans in Arizona

The Small Business Administration (SBA) is a federal government designed to assist small businesses and enable them to effectively compete in the American economy. The SBA Loan program is intended to help small businesses gain access to comprehensive, low-cost, and long-term business financing. The most common SBA Loan Programs include SBA 7(a), SBA CDC/504, and SBA Express Loans. While SBA 7(a) and SBA Express loans offer flexibility, SBA CDC/504 Loans are exclusively intended for hard-asset investments like real estate and equipment purchases. SBA Express Loans fall under the SBA 7(a) loan but differ in terms of approval time.

To qualify for loans offered by the Small Business Administration (SBA), business owners must have a credit score of at least 650, 2 years of business history, and annual revenue of $100,000. It’s also worth noting that the Small Business Administration doesn’t originate the loan. But the SBA works with a private SBA lender (i.e., banks, credit unions, or online lenders).

Asset-Based Lending in Arizona

Asset-based lending relies mostly on the assets the business owns. That means your cash flow won’t be the main consideration when it comes to eligibility. With asset-based loans, you can pledge business assets like equipment, inventory, invoices, or commercial real estate to secure the loan. Unfortunately, tying up your loan to the assets also means that if you default, the lenders will be able to seize the pledged collateral. 

Invoice Financing

Invoice financing allows businesses to leverage their customer’s outstanding invoices in exchange for upfront cash. The financing company then takes charge of the customers’ invoices - including payment collection. One benefit of invoice financing is that the business owner’s credit score won’t be the main consideration for eligibility. The lenders are more concerned about your clients’ creditworthiness as the payment for the funded amount will depend on their repayment capabilities. 

That said, one surefire way to improve your chances of getting approved for invoice financing is to work with creditworthy clients. 

Business Term Loan Arizona

Business term loans are the traditional type of loan wherein the company gets a lump sum of cash upfront. The business then repays the loan in weekly or monthly increments within a fixed term. Business term loans are classified into three based on their repayment terms. They can be short-term loans, medium-term loans, or long-term loans. Once approved, businesses can get anywhere from $5,000 to $5,000,000. The proceeds can be used to fund a variety of business initiatives, including business acquisitions, partner buyouts, real estate acquisitions, and other business resources.

Equipment Financing Arizona

Equipment can be one of the biggest investments a company has to make. In fact, buying one out-of-pocket can be debilitating, especially if their cash reserves are limited. Equipment loans allow businesses to finance the equipment they need so they don’t have to dig into their reserves and avoid straining their cash flow. The equipment financed will serve as collateral for the loan. With that, the financing company can seize the equipment and use it as payment if they default on the repayments. 

Purchase Order Financing Arizona

With Purchase Order Financing, small business owners use their customers’ purchase orders to obtain financing and cover the cost of the project. However, unlike the typical financing options, the money doesn’t go through the business owner's hands. Instead, the lender pays the supplier directly. 

Inventory Financing Arizona

If your business carries a large inventory and your cash is tied up on your unsold stocks, you can apply for inventory financing. With this financing option, the inventory you carry will serve as the collateral for the loan. Lenders can fund up to 60% of the total value of inventory. 

Commercial Real Estate Loan Arizona

Commercial Real Estate Loans are Long-term financing options specifically tailored to help small businesses invest in real estate. Properties can be expensive, and the business would most probably need additional resources to be able to afford the investment. In that case, real estate loans can cover your financial needs.