Why SBA Is A Great Choice For Small Businesses
An SBA loan can be the best choice for small businesses because SBA’s tend to be more flexible (and) understanding of what startups and what current businesses would need.
Portfolio commercial loans, which are typical of traditional lending institutions (banks), are more for established businesses that have been in the business for at least three years and (have an) established track record for us to come in and offer certain lending. Now SBA, they’re a little bit different.
They will actually look at a lot of the – what we call performance or projections,
what you’re projecting your business will be and just a little bit of support,
whatever your past history from other businesses that you’ve started in a similar field, or your current business, and using the projection to help with starting up new businesses or expansion.
Definitely most businesses need to purchase equipment and we can come in and help (with that). (The) second thing that’s most important, before they can even open the door, would be inventory.
Through SBA loans, WPFSI can help them and support them in inventory, because a lot of times when they buy goods, they have to pay their vendors (who) can drag it (out) for half a year, or maybe even a year, if it takes that long to sell them specific inventory.
As the customers come in and (the business starts) building up their accounts receivables and accounts payable, we want to make sure we give them enough working capital too, because the bills come due and they need to pay it, but at the same time they may or may not be collecting their funds in time to pay the bills that they need to pay. So we (can provide) a working capital.
You can use our funds to help pay for whatever bills they have to pay for first,
and then they slowly collect their accounts receivables and turn them into cash.
Whenever we visit one of our clients’ facilities, it feels amazing. It feels like we’re a part of their business. It goes beyond just a transactional business relationship and that’s what WPFSI is all about.
West Philadelphia Financial Services Institution is very heavily invested in building a relationship. Go here to learn more about our SBA loan opportunities.
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