Distributor businesses play a vital role in the supply chain and the United States economy. The movement of goods from manufacturer to consumer is critical to keep our economy growing.
The Small Business Administration (SBA) loan programs provide a chance for distributors to grow their business.
If you own a distribution small business, an SBA loan could help you reach your business goals faster.
Business Funding Group LLC (BFG) is a loan packaging company with decades of experience. SBA loans for distributors are attractive options because of their favorable terms and eligibility standards, and the incentives they make to banks to accomplish your loan.
Our team at BFG assists with every part of the application process. From the first phone call through the distribution of funds, we will be there so you can focus your energy on your business.
SBA loans are partially backed by the government, which lowers the financial risk for lenders. Because of this, distributors who might not be able to get funding through traditional bank sources can successfully secure the money they need.
Distributing businesses may have significant expenses like purchasing inventory in bulk or keeping up with transportation costs. An SBA loan can enable a distributor to make purchases and business decisions that would not be possible otherwise.
SBA loans are good for distributors because they offer:
The often upfront and large financial demands of running a business in the distributing industry make SBA loans a great option.
Distributors can utilize funding from SBA loans for:
At BFG, we know what the loan can and cannot be used for and can help you determine which loan program is right for you based on how much you need and for what.
For example, if a distributor wanted a loan to restructure debt, hire some employees, and purchase a warehouse, the SBA 7(a) loan program would be the best fit.
But if a distributing business owner was seeking a larger loan—say $5M—solely to purchase a warehouse, the SBA 504 loan program may be better aligned with their goals.
Eligibility for an SBA loan takes multiple factors into account.
To secure an SBA loan, a business must meet various eligibility criteria outlined by the SBA. An applicant’s small business must be:
The SBA is not physically lending you the money, they are providing a guarantee on your behalf to a lender. Lenders principally only care about one thing, will we get paid back?
The way a lender answers that question is by looking at:
BFG can discuss your distribution business with you over an obligation-free phone call. We will review what you want to use funding for, how much you need, loan program options, and how to start the process.
We are experienced in helping distributors with loan applications and receiving the best possible loan terms.
Call us to learn more about SBA loans for distributors and see if it could be the solution to growing your business.
(917) 593-5013