Small Business Funding Options

Business Funding Options Eligibility
DreamSpark Plan
  • Access existing retirement funds to invest in a new or existing business
  • Tax-deferred and penalty free
  • Funds can be obtained in about 3 weeks
  • Can use funds as capital for down payment on an SBA loan
  • Retirement savings plan
Based on:

  • Availability of sufficient qualified retirement plan (401K, IRA, PSP, 403(b), SEP IRA, or Gov 457(b))
  • Roth accounts are not eligible
  • Minimum $20k required
Small Business
Administration
Loan – SBA 7(a)
  • Use for any legitimate business purpose such as working capital
  • Business funding options available from $100K to $5M
  • Longer terms/amortizations available
  • Easier credit requirements
  • Lower payments
  • No renewal fees or balloon payments
Based on:

  • Strong personal credit
  • Industry experience
  • For profit business
  • Collateral
Unsecured
Line of Credit
  • Unsecured personal line of credit
  • No collateral required
  • Access to line of credit when needed
Based on:

  • Strong personal credit and no bankruptcy
  • FICO score of 680 or higher
Marketable
Securities
  • Use of stock portfolio as collateral for a loan
  • Low interest rates
Based on:

  • Eligible investments
  • Collateral required in the form of securities
Accounts
Receivable
  • Use of receivables (invoices) to generate steady cash flow without borrowing
  • Not a business loan––a buy/sell agreement between two parties
  • Can be used for any aspect of running a business
Based on:

  • Established business
  • Good individual credit
  • FICO score of 650 or higher
  • Start-ups are not eligible
Equipment
Funding
  • Equipment leasing of $10K or more
  • No additional collateral
  • Fixed rate financing
  • Longer repayment terms
Based on:

  • Strong business model
  • Good individual credit
  • FICO score of 650 or higher
Conventional
Bank Loan
  • Can be used for any aspect of running a business
  • Secured or unsecured
  • Fixed business loan term and annual percentage rate
Based on:

  • Strong personal credit
  • FICO score of 680 or higher

Contact us for your free consultation!