Expansion Loans
Get a Loan for Expanding Business
Do you already own your own business and want to open another location? Maybe want to buy out a competitor? If you have at least two years worth of acceptable cashflow you may be eligible to finance either or with as little as zero percent down! This all depends on the deal and subject to underwriting parameters. Talk to a guru today to discuss you financing needs!
The lender will likely ask for your personal financial statement, most recent personal tax return, last three years business tax returns, projections and a short business plan describing the expansion and projections.
Expansion of an existing business can have many moving parts. You may need constructions (ground up or leasehold improvements). You may need funds for working capital, FF&E and inventory Etc. SBA financing is perfect for a project like this as it can cover all of the above. An SBA loan can act as a one stop shop for most of you business financing needs.
You should have a very good idea on what you want to accomplish prior to financing so that the lender can give you a quote that they think is best for you. What you want to avoid is going back to the lender for an increase in funding because you forgot that you need an extra $100,000 for a piece of equipment you accidentally left out. This gives the impression to the lender that you aren’t organized and may be a “Character” issue. Do your best to include everything you can think of to see if you’ll need financing for that particular part of the project.
10 Year or 25 Year Loan?
If the majority of your loan request includes real estate than you can benefit from a 25 year term and amortization! This is pretty incredible in the world of commercial financing. If your loan request is mostly for anything other than real estate you will more than likely be given the option of a 10 year loan. Still a great option and beats most commercial lending competition out there.
These longer term loans assist your business in allowing them to cash flow more than a shorter term loan giving your business more working capital to grow and or expand your business. You also have the option of paying down your debt more aggressively during times of abundant cashflow or the minimum amount when you may be in a tighter cash crunch.
If you are looking to expand your business through buying purchasing a competitor or merging with another business that you are buying, visit our business purchase page for more info.