What Are SBA Marketplace Loans?
SBA marketplace loans are some of the most affordable and convenient business funding programs in existence. You can borrow from $50,000 to $10,000,000 with interest rates ranging from 6.25% to 7.25%. Traditional SBA loans must be repaid in 12-18 months, whereas borrowers can take up to 25 years to repay SBA Marketplace loans. There is no pre-payment penalty, and paperwork is minimal relative to a traditional business loan.
The payment system for a SBA Marketplace loans is highly similar to that of a standard business term loan. Fixed payments are made each month, though they will most likely be substantially lower than payments for a business term loan or SBA Loan accessed through a bank. And unlike the bank, United Capital Source is able to develop terms that account for fluctuations in cash flow due to circumstances like seasonality.
Applicants interested in long repayment periods would be wise to prepare a business plan that outlines projected cash flow, since such applicants will likely rely on projected cash flow to make future payments. This business plan should ultimately explain how the funds will be used to generate the cash flow that is needed to pay off the loan in full. We understand, however, that it is virtually impossible to perfectly predict revenue over a long time frame and will not develop terms that would only benefit you if you achieve specific projections.
Funds from SBA Marketplace loans can be used in a number of ways since the terms are so flexible and the approval process is so short.
What Do I Need An SBA Loan For?
SBA Marketplace loans are typically tailored for businesses looking for large sums of cash for large investments. Examples include remodeling, purchasing bulk inventory, increasing staff, developing a new product, or launching an expansive marketing campaign. You can even use the funds to pay off an existing balance with a higher interest rate or cover regular expenses during a slow period.
But no matter how you choose to use the funds, gradually increasing revenue and stabilizing cash flow should be a top priority. If you need to get through a temporary slump, you should use the extra time and monthly cushion to actively pursue long-term revenue goals. Cash flow should be back on track by the time you are well into your repayment plan.
Let’s Start Our Partnership Today!
Our dramatically-shortened approval process makes our SBA Marketplace loans particularly advantageous for unforeseen challenges or opportunities. You can act quickly on significant investments without having to worry about making large, monthly payments immediately afterwards. Apply now to see how much you qualify for!