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Small Business Administration (SBA) loans for wholesale businesses could be a solution to grow your business to its full potential. If you own a wholesale business, you are familiar with the substantial costs of inventory, rent, or FBA (fulfillment by Amazon). Securing funding, backed by the SBA, with accommodating terms can be the boost you need to grow!
At Business Funding Group (BFG), we have a decades-long track record of helping wholesale businesses specifically apply for, and secure SBA loans.
During a free 15-minute phone call, we can talk about your wholesale business needs, eligibility requirements, and if and how much you might qualify for.
SBA loans are backed by the government, making it less risky for lenders. The guarantee from SBA is particularly beneficial for businesses, such as wholesalers, because conventional lenders do not always like warehouse businesses.
Compared to the much harsher terms of merchant cash advance loans and the like, SBA loans have much more favorable terms!
The loans are paid back over a lengthy period of time, enabling businesses to use the cash conveniently without the stress of unaffordable payments. Depending on the type of loan, repayment periods can average between 10 and 30 years.
An SBA loan grants wholesale business owners a lot of flexibility when it comes to use of funds.
SBA loans are generally easier to qualify for than traditional business loans. Eligibility is broad, and the requirements are easier to meet.
Financing business growth is especially important for wholesale business owners due to the nature of the business and the costs that come with it.
Wholesale businesses can utilize money from SBA loans for many different purposes, such as:
To drive growth in a wholesale business, a business owner may use loan proceeds to purchase products in bulk. Purchasing inventory is typically the largest business expense, and not all business owners have the cash on hand to buy all they need to minimize pricing.
Keeping costs low is critical for wholesale businesses to maximize profit while maintaining a quality product.
An example would be a clothing brand that purchases products in bulk after receiving an SBA loan. Instead of paying $50/unit at market price, the business purchases at the bulk price of $30/unit. Cutting costs allows the business to decrease supply costs by 40%, increasing profit margins.
BFG’s loan experts are experienced with every aspect of the loan application process and are very experienced when it comes to the intricacies of running a wholesale business.
Preparing a strong application involves:
Working with BFG gives you access to our well-established relationships with lenders, making the application process as smooth as possible.
An SBA loan is a great option if you have a wholesale business and are looking to accelerate growth. With reasonable interest rates, long repayment terms, and flexible use of funds, these loans offer useful benefits to business owners who take advantage of them.
Ready to get started?
Call us today to find out how an SBA loan could benefit your wholesale business. You can also use our SBA loan calculator to get a quick estimate of your potential loan amount before speaking with our team.
(917) 593-5013