Small Business Loans in Virginia

Business Line of Credit Virginia

A business line of credit is a flexible credit option where a small business is granted access to a credit line with a set credit limit, like business credit cards. A Virginia business can tap into the credit line on an as-needed basis as long as they don’t exceed the credit limit. They then have to pay what they owe back, plus interest and draw money from the pool of funds again as needed. Business lines of credit may be obtained from a local bank, credit union, or an alternative financing company.  It can be a secured or unsecured line of credit, which essentially means that you have the option to choose whether you want to pledge collateral or not.

SBA Loans in Virginia

SBA Loans are low-cost loans guaranteed by the Small Business Administration (SBA). The federal organization works with private and commercial banks and lenders to offer the loan guaranty program, so small businesses can get access to small business loans in Virginia. The loan proceeds can be used as working capital, cover building construction, inventory, etc. Loans offered by the Small Business Administration come with high loan amounts, low interest rates, low down payments, long repayment periods, and a maximum guarantee of 80%. Once approved, Virginia small businesses can get a maximum loan amount of $5 million in funding with interest rates not exceeding 10% of the total loan amount. The repayment terms vary depending on where the loan was used. To qualify for an SBA Loan guarantee program, you must have a stellar personal credit score, at least $100,000 of annual revenue, and your Virginia-based small business must be at least 2 years old. Note that the application process for the funding program can be lengthy and the documentation requirements can be extensive. Plus, you will need a winning business plan to increase your chances of qualifying.

Asset-Based Lending in Virginia

Asset-based lending is a small business loan that focuses on the value of the assets owned by the borrowing company. While cash flow is still important, it won’t be the main consideration for the eligibility of small businesses. Asset-based loan options can be used to support a wide variety of business initiatives. This includes working capital, real estate purchases, expansion, and more. 

Bridge Loans Virginia

Bridge loans are excellent temporary financing options for businesses looking to address a time-sensitive business need. It’s usually utilized when small businesses are still in the process of securing a more permanent comprehensive loan. Small business bridge loans are usually short-term, with repayment periods not exceeding one year. Approval is quick and the funds can be in your bank account within 24 hours. 

Factoring for Virginia Businesses

Invoice factoring is a form of invoice financing where companies use their customer’s outstanding invoices to advance cash. It’s a great way to free up capital tied up in unpaid invoices. With more working capital, businesses can cover business needs like day-to-day expenses, equipment purchases, and other growth investments. Once approved, businesses can set up their invoice financing as lines of credit or as a term loan (they will receive a lump sum).

Business Term Loan Virginia

Term loans are traditional small business loans in Virginia where a company receives a lump sum of cash, which is then repaid within a specific period, or ‘term’. A Virginia business can use the loan’s proceeds towards several initiatives, including machinery and real estate purchases, day-to-day expenses, inventory, renovations, or bridging cash flow gaps. Business term loans can be short-term, medium-term, or long-term. Each is classified according to the length of its repayment period. The loan proceeds can be used to address a range of business needs including building construction, working capital, inventory, payroll, and others. 

Business Equipment Financing Virginia

If you’re looking for Virginia small business loan options that will help you finance expensive equipment, equipment financing is worth a shot. Small business loans in Virginia offer financial protection, so you won’t have to dig into your cash reserves and pay for the equipment upfront. The machinery or tool financed with the loan will serve as collateral, which means that you won’t have to pledge an additional asset to secure the loan. However, this also means that banks and other lenders can seize the machinery in the event of a default. Once approved, banks and alternative lenders can fund up to 100% of the equipment cost. The repayment terms for the loan option usually run from 3 to 5 years, depending on the estimated lifespan of the equipment. 

Purchase Order Financing Virginia

Small business owners in Virginia often find themselves short on cash rendering them unable to take on large projects. In situations like this, they can apply for purchase order financing to help them cover the cost of a large transaction. With PO financing, the lenders will transfer the amount directly to the supplier. The supplier then fulfills the order and sends it directly to the customers. The small business (borrower) then invoices the customers, and the customers pay their balances directly to the financing company. Once the invoice is settled, the PO financing company deducts the loan amount, plus the interest rate, and wires the remaining balance back to the business owner. 

Inventory Financing Virginia

Inventory financing is a small business financing that allows business owners to leverage their stocks or inventory to get upfront cash. Carrying a large volume of unsold inventory ties up capital, which can limit the company from investing in business growth opportunities. With inventory small business financing, small businesses can free up cash, and use the proceeds towards revenue-generating initiatives, including buying more inventory to prepare for the busy season, machinery purchases, renovations, payroll, etc. While inventory financing can be a good source of additional capital, it’s worth noting that the inventory pledged will be on the line if the business owners default on the loan. 

Commercial Real Estate Loan Virginia

Small business owners looking to invest in commercial real estate or renovate an existing space can benefit from applying for commercial real estate loans. Small businesses need to expand at some point, and with the cash from this small business financing option, they can cover costs like buying materials, equipment, commercial spaces, commercial mortgages, and other expenses related to commercial real estate.