Collateral refers to assets that a business owner pledges to secure a loan. Essentially, collateral acts as a safety net for the lender, ensuring they can recover their investment if the borrower defaults.
In the case of a secured business loan, the lender has the legal right to seize the pledged assets to recover the outstanding loan balance. Collateral
Buying an existing laundromat can be less costly and time-consuming than starting a new one from scratch. The purchase price can range from $18,000 to $3 million, depending on the location, size, and profitability of the business. While purchasing a laundromat requires a significant investment, it often saves you the time and expense associated with building a new facility.
Acquiring
Inventory financing is a specialized type of small business loan that helps business owners purchase essential inventory for their operations. It’s a form of asset-based lending (ABL) in which the inventory acts as collateral, reducing the risk for lenders. Inventory financing can also refer to using current inventory as collateral for business funding for other operations, such as working capital
Commercial loan interest rates fluctuate due to various factors, including economic conditions and shifts in the federal funds rate. Over the past several months, the commercial mortgage market has experienced some volatility as the Federal Reserve has adjusted the interest rate to control inflation.
As of January 10, 2025, the average interest rate for a 5-year commercial mortgage loan is
Some lenders offer business loans with EIN only, meaning they evaluate the business’s credit history rather than the owner’s personal credit. This approach benefits business owners who want to separate personal and business finances or have less-than-perfect personal credit. While not all lenders provide this option, alternative business financing providers and online lenders may consider applications based solely on business
Your construction, landscaping, or building maintenance company relies on heavy equipment to get the job done. Whether it’s a bulldozer to excavate a foundation or a crane for new construction, you need heavy machinery as dependable as your work ethic.
Construction companies often turn to equipment financing to solve the dilemma of needing new equipment without the capital to purchase
Considering buying business aircraft? You can use planes or helicopters for various needs, such as transporting clients, executive travel, or shipping goods. However, you need to consider the cost and the risks.
Aircraft finance options and prices vary as widely as the planes available. One possible way to finance aircraft is with an equipment loan.
There are several SBA loans; most take weeks to months to get approval and receive funding. However, as its name implies, the SBA Express Loan significantly shortens the application process and funding time.
The faster funding time results in lower borrowing amounts and higher interest rates, but it might be worth it if your business needs quick funding.
SBA 504 loans – or CDC/504 loans – are a specialized subset of the SBA loan program that provides long-term financing for major fixed assets that promote business growth. 504 loans also require working with Certified Development Companies (CDCs) and a third-party lender (TPL) to process the application and receive funding.
The drawback is that SBA loans also carry the steepest qualification requirements. That becomes even more muddled as there are no exact requirements, and each lender sets their own standards.
If you’re considering SBA 7(a) loans but aren’t sure if you qualify or how to qualify, we can help with this essential guide.
Fraud Disclosure:
Please be aware that individuals have been fraudulently misrepresenting to business owners (and others) that United Capital Source, Inc. (“UCS”) can assist small businesses in receiving government grants and other forgivable business loans, when in fact those grants or loans do not exist or are not available. These individuals have ulterior motives and are engaging in the unauthorized use of the names, trademarks, domain names, and logos of UCS in an attempt to commit fraud upon unsuspecting small business owners.
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