When you think of small business loans, the first thing that may come to mind are long-term, high-value loans from lenders like banks or the Canada Small Business Financing Program. While this type of traditional small business funding may be exactly what your business needs, many different types of small business funding exist, and long-term loans are not always the best choice.

For newer businesses that are seeking working capital, short-term asset-based funding is typically more practical. Long-term financing tends to come later, when a business has established a strong cash flow, a healthy financial history, and a good credit score.

If you aren't sure whether you need a long- or short-term business loan, the first question to ask yourself is "why do I need a loan?". Understanding the purpose for your loan is essential to selecting the right funding, from how much you need to borrow, what loan terms make the most sense, and what type of lender is best for you. Once you have a clear idea of why you need funding, you can consider the other factors that influence whether you need short- or long-term funding, including:

• The amount you need to borrow
• How quickly you need funding
• The type of lender you are working with
• Whether you have collateral to offer
• Your business's overall financial health

In this post, we'll explain the differences between long- and short-term funding to help you decide which option is best for your business.

Let's get started.

Short-term small business funding is designed to meet the more immediate needs of a business, including ventures where businesses can expect to see a return in the near future, such as purchasing equipment or hiring staff to keep up with additional demand.

Short-term loans tend to be for smaller amounts-up to $500,000-but they are typically easier to acquire with faster application turnaround than long-term loans-sometimes in as little as 24 hours-and they have flexible approval requirements that don't require collateral. Rates are often higher, but it's important to remember that terms are much shorter, so the cost of short-term funding is often lower than long-term funding over the lifetime of the loan.

Short-term small business loans are typically repaid over a span of months rather than years, but terms can be as long as three years (sometimes called a medium-term loan).

Some banks and traditional lenders may offer short-term funding options, but most types of short-term financing are available from alternative lenders, including direct online lenders like Bluerock Options®. Alternative lenders typically offer asset-based financing options that don't require collateral, including:

1. Merchant cash advances: Merchant cash advances are not technically loans-they are a form of asset-based financing known as a "purchase of future receivables". You get working capital when you need it, and your lender receives a percentage of your daily or weekly credit card sales until the advance is repaid. Learn more what MCA is & what they is used for.
2. Invoice factoring: Invoice factoring is another non-loan form of financing known as accounts receivable financing. Instead of providing a business with a lump sum that will be repaid over a certain term, a business will essentially sell their unpaid invoices to a lender, called a "factor". The factor then "owns" the invoice(s) and will advance the money that your clients already owe you, typically between 70-90% of the invoice's value. The remainder of the invoice's value will be paid out to you once your client pays, minus any lender fees. Learn more about invoice factoring.
3. Alternative lines of credit: Alternative lenders offer business lines of credit that operate similarly to traditional lines of credit, but with different approval requirements.

Short-term small business funding rates tend to be higher than long-term small business funding, but this does not mean your total loan cost will be higher-because terms are much shorter, loan costs have less time to accumulate and often end up lower than funding with 5 or 10+ year terms.

Many forms of short-term funding, including merchant cash advances, use a factor rate to determine fees instead of a traditional interest rate. Factor rates are simple decimal figures that show how much "extra" you will owe on the original amount of the loan. They are based on your risk assessment, so the stronger your business's financial history, the lower your rate should be.

Learn more about factor rates.

Alternative lenders, including direct online lenders, often have flexible approval requirements that are more favorable to businesses that may not qualify for long-term funding from a traditional lender, including younger businesses, businesses with lower credit scores, and businesses in "high-risk" industries.

Approval isn't based on your credit score alone-instead, these lenders focus on the overall health and potential of your business. While your personal and business credit score will be factored into your application, these lenders will consider it alongside criteria such as:

• Business revenue
• Cash flow
• Vendor payment history
• Years in business
• Public records

Short-term small business funding is best used for investing in opportunities that have a more immediate return on investment, such as:

• Project start up costs
• Bridging seasonal cash flow gaps
• Purchasing inventory in bulk for a discount
• Covering costs of emergency repairs or other unexpected expenses
• Hiring new employees
• Purchasing equipment
• General working capital

• Businesses who need fast funding
• Businesses who need smaller funding amounts
• Younger businesses
• Businesses with lower credit scores
• Businesses with no collateral

Long-term small business funding is designed to meet the longer term financial needs of a business, such as expanding, acquiring another business, purchasing real estate, or other ventures that aren't expected to generate an immediate profit.

Long-term small business loans tend to be granted for higher amounts-sometimes up to $2M, depending on the lender. Rates tend to be lower and monthly payments tend to be smaller than short-term funding. Smaller monthly payments may be beneficial for managing your cash flow, but approval requirements for this type of funding are often much stricter, and collateral or a down payment is often required.

Long-term business funding is typically repaid over several years, with term lengths sometimes as long as 10-20 years.

Long-term small business loans are offered by traditional commercial banks and the Small Business Administration.

There are two main types of long-term funding:

• Term loans: Term loans are the most common type of long-term business funding. With a term loan, business owners are given a lump sum of money that is paid off in set monthly installments, plus interest and fees, over a predetermined period of time.
• Business line of credit: Business lines of credit are also available for longer term periods. Businesses can draw from and repay the line as needed, and will only ever pay interest on the amount borrowed.

Long-term small business loans typically use a standard interest rate. The rate is often lower than short-term funding options, but that doesn't necessarily mean the loan will be cheaper-since term lengths are typically much longer, you may end up paying significantly more over the lifespan of the loan.

Long-term business loans are typically only approved for wealthy businesses with strong financial histories, exceptionally high credit scores, and collateral.

Long-term small business loans are best used for investing in longer-term ventures that may not have an immediate return on investment, such as:

• Purchasing real estate
• Acquiring another business
• Building or renovating facilities
• Product development

• Established businesses with strong credit and financial histories
• Larger loan amounts

Short-term funding offered by alternative lenders offers a number of advantages over financing options offered by traditional lending institutions, including a simplified application, faster processing and approvals, and unique financing options that suit the needs of your business.

Many types of short-term alternative funding are available to businesses who need funding quickly, don't meet the strict criteria of the SBA and other traditional lenders, or would prefer not to seek funding from friends or family members. With funding from as little as $3,000 up to $500,000, business owners can access alternative funding that suits their unique needs, including merchant cash advances, online invoice factoring, and business lines of credit.

There are over 43,500 small businesses in Puerto Rico, accounting for 99.7% of all businesses on the island and $60.6B in total exports.

Businesses in Puerto Rico face a number of unique challenges that can make it difficult to access the funding they need to thrive and grow, including:

• Fragile economy: The state of the territory's economy is the top recurring concern for over half of small business owners in Puerto Rico. According to the most recent available data, Puerto Rico's economy contracted at an annual rate of 3% to $1.1B in 2018.
• Lack of access to capital: Puerto Rico's commercial banks are notoriously conservative, private equity and venture capital are stingy, and alternative lending is limited. Bluerock Options® is one of the only alternative lenders to fund businesses in Puerto Rico, funding over 165 deals on the island.
• Natural disaster: Hurricanes Irma and Maria did significant damage to businesses in Puerto Rico. Special funding and grant programs emerged after these events, but this funding has since dried up and many businesses are still struggling with the island's poor infrastructure.
• Labor shortage: Increasing outmigration, especially among younger workers, has contributed to an overall labor shortage across the island.
• COVID-19: Leisure and hospitality businesses were among the hardest hit by the COVID-19 pandemic. 67% of jobs lost in leisure and hospitality in mainland United States in April 2020 were recovered by October, compared to just 41% in Puerto Rico.

Small business funding can help business owners in Puerto Rico overcome these challenges and continue to grow. But between different federal programs, grants, bank loans, and alternative lenders, it can be hard for business owners to understand their funding options and determine which option is best for their business.

In this post, we'll compare two sources of funding in Puerto Rico: SBA loans and alternative funding. Let's jump in.

The Small Business Administration (SBA) offers the same funding programs to businesses based in Puerto Rico as they do in the mainland United States. They are facilitated by commercial banks that operate in Puerto Rico, such as First Bank and Banco Popular de Puerto Rico.

SBA loans offer the longest terms, largest loan amounts, and lowest rates, but they are the most difficult to acquire with very strict approval requirements that exclude many small businesses. Preferred Lenders offer an expedited loan approval process, but SBA loans can still take weeks or months to approve with no guarantee of approval.

The SBA offers a number of funding programs for businesses in Puerto Rico, including:

• 7(a) Guaranteed Loans: The SBA's flagship program offers up to $5M in funding. Funding is disbursed by commercial banks and guaranteed by the SBA up to 85%, depending on the amount of the loan.
• 504 Community Development Loans: This program provides loans to small businesses to cover fixed assets, such as real estate, buildings, renovations, or machinery. The commercial lender provides up to 50% of the project's financing, an additional 40% comes from the SBA, and the remaining 10% is provided by the applying business. 504 Loans are available through certain commercial lenders and community development corporations in Puerto Rico.
• Express Loans: Express Loans offer an accelerated turnaround time for SBA review (within 36 hours) and a maximum loan amount of $350,000 with a maximum SBA guarantee of 50%.
• Export Express Loans: These loans provide exporters and lenders with a streamlined method to get SBA-backed financing for loans or lines of credit up to $500,000. These loans are guaranteed up to 90% depending on the amount of the loan.
• Veterans Advantage: A funding program that offers veteran-owned businesses reduced fees.
• Small Loan Advantage: This program offers up to $350,000 and is guaranteed up to 85% depending on the amount of loan.

These forms of SBA funding can be used for:

• Starting up or expanding your business
• Acquiring a business
• Purchasing machinery or equipment
• Purchasing inventory
• Purchasing or improving commercial real estate
• Refinancing existing business debt
• Working capital

Depending on which funding program you opt for, there may be restrictions on how you're able to use your funding.

Learn more about SBA funding.

In conjunction with local agencies, the Small Business Administration also oversees a number of specialized funding programs for businesses in Puerto Rico, including:

Also known as "America's Seed Fund", the SBIR/STTR funding programs are highly competitive sources of funding designed specifically to encourage small businesses to engage in Federal Research or Research & Development with the potential for technology commercialization. These programs are ideal for high-technology businesses engaging in research or research and development with intent to commercialize, as well as businesses with partnerships with nonprofit research institutions.

The PRSBTDC offers "tangible solutions to establish or expand a business, and offers assistance for the commercialization of technology and innovation projects through the Center for Innovation and Technology". The Center also offers consulting services and technical support to apply for or administer a grant from SBIR/STTR programs free of cost. This funding is ideal for STEM businesses and businesses seeking support in addition to funding.

The Puerto Rico Science, Technology & Research Trust offers multiple technology development and commercialization initiatives to help researchers, scientists, tech entrepreneurs, university officials, and investors meet business development objectives, including Innovation & Technology Resources and Funding, the Advanced Research Grants Program (ARG), and the Catalyzer Research Grant Program (CRG). This funding is ideal for tech businesses in one of Puerto Rico's targeted industries, as well as businesses seeking funding to support research and development activities in these industries.

Alternative lenders offer a different portfolio of lending options, with simpler applications, faster turnaround times, and more lenient approval requirements that are more favorable to businesses in Puerto Rico.

With a streamlined online application and approval requirements that focus more on the health of a business rather than it's financial history, alternative lenders are able to make funding available to more small businesses that might not be able to access the financing they need through the SBA and banks.

While alternative lenders do offer some financing options similar to traditional lenders, including collateral real estate loans, lines of credit, and alternative small business loans, these lenders typically specialize in non-loan forms of financing such as:

• Merchant cash advances: MCAs are a non-loan form of financing known as an asset purchase or a purchase of future receivables. This means that a lender will essentially purchase a portion of your business's future revenue in exchange for cash up front. You'll receive an advance of working capital when you need it, and your lender will receive a portion of your daily or weekly debit and credit card sales until the advance has been repaid. Learn more about merchant cash advances.
• Invoice factoring: Invoice factoring is a non-loan form of financing known as accounts receivable financing. Instead of receiving a lump sum that will be repaid over a certain term, a business will sell their unpaid invoices to a lender, called a "factor". The factor owns the invoices and will advance the money your clients already owe you, typically between 70-90% of the invoice's value. The remainder of the invoice's value will be paid out to you once your client pays, minus any lender fees. Learn more about online invoice factoring.

Because of unique economic and regulatory factors, commercial loans in Puerto Rico can be especially difficult to obtain from traditional lenders. With a streamlined online application and flexible approval requirements, alternative lenders like Bluerock Options make more funding available to small businesses in Puerto Rico. Funding from as little as $3,000 up to $500,000 is available, including merchant cash advances, online invoice factoring, lines of credit, and other alternative business loans, with funding delivered in as little as one business day.

The best medical practice loan option for you ultimately depends on your practice’s goals, the challenges you’re facing, and your financial history. Between traditional lenders like the SBA and commercial banks and newer forms of alternative funding, it can be difficult to decide which type of funding best suits your needs and goals.

To help you understand your funding options and select the right funding for your practice, we shared our expertise on medical practice loans with Physician’s Practice, an online resource dedicated to helping independent and hospital-owned practices navigate non-clinical medical practice management issues and challenges.

Read the full article for our advice on which kind of medical practice funding suits you best, including if you:

When you apply for small business funding, it's important to understand the cost of your loan or advance before you sign a contract. But because different funding options come with different fee and cost structures, comparing your options and understanding the total cost of your funding can be a challenge.

Many funding options, including SBA loans, term loans, and other traditional forms of financing use an interest rate or "annual percentage rate" (APR) to represent the total cost of your loan. Other types of funding, including alternative funding options like merchant cash advances or invoice factoring, use something called a factor rate. Factor rates may seem confusing, but they are actually quite simple. We'll explain how they work and how to calculate them below.

Most of us are familiar with the concept of an interest rate, but let's take a moment to review what interest rates are before we dig into factor rates.

An interest rate is the percentage of principal charged by your lender to represent the total cost of borrowing. It's applied to your remaining balance each month and compounds as you pay off your loan. The total interest accrued over the life of your loan will vary depending on your term length and whether you miss payments or are able to accelerate your payment schedule.

Interest rates are not the same thing as APR. APR reflects the total cost of your loan as a percentage, including interest and any additional fees that may apply. Interest is simply the cost of borrowing, and does not include any other fees.

Factor rates, like interest rates, represent the cost of your funding. However, instead of being expressed as a percentage, factor rates are expressed as a decimal number. Most factor rates fall between 1.1 and 1.5.

Unlike interest rates, factor rates apply only to the original amount borrowed. Your factor rate is built into your payment schedule, and the cost of borrowing does not compound or change as you pay off your funding.

Factor rates are most often applied to merchant cash advances (MCAs) and other forms of alternative small business funding. They are specifically used for business funding, while interest rates and APR can also apply to personal loans.

Factor rates depend on a number of factors, including:

• Your industry: Some industries carry more risk than others, such as seasonal industries or industries in decline. Businesses in these fields may have a higher factor rate.
• Your length of time in business: MCA lenders require you to be in business for a minimum of six months to qualify (compared to 2+ years for traditional lenders and term loans). The longer you've been in business, the lower your factor rate will be.
• Stability of sales and growth: Your sales and growth will help your lender assess your ability to repay your merchant cash advance. More stable sales and consistent growth may result in a lower factor rate.
• Average monthly credit card sales: Merchant cash advances are repaid as a percentage of your daily or weekly credit and debit card sales. Your monthly average shows how likely you are to be able to repay your advance, so if you have high monthly sales, your rate should be lower.
• Risk assessment and creditworthiness: Your business's financial history and credit rating won't factor into your approval as heavily as they would with a traditional lender, but these criteria can impact your factor rate. Businesses with low credit scores are often able to qualify for alternative funding, but they may have a higher factor rate.

To calculate the cost of your funding using a factor rate, simply multiply the loan amount by your factor rate. For example, on an advance of $10,000 with a factor rate of 1.3, you will owe $13,000.

Funding amount x factor rate = total payback amount

If you're considering multiple types of funding, calculating how much each funding option will cost can help you understand your options and make the right decision for your business. Here's how to convert a factor rate to APR so you can compare your options with confidence:

Advance amount x factor rate = total payback amount

$10,000 x 1.3 = $13,000

Total payback amount – advance amount = cost of advance

$13,000 – $10,000 = $3,000

Cost of advance / advance amount = percentage cost

$3,000 / $10,000 = 0.3

Percentage cost x 365 (days in a year) = X

0.3 x 365 = 109.5

X / expected repayment period (in days-you may have to estimate here) x 100 = annualized interest rate

109.5 / 90 days x 100 = 121% annualized interest rate

Even though an annualized interest rate like 121% may seem higher than the interest rates offered by banks, it's important to note that your total loan costs may actually not be that much higher if you opt for funding that uses a factor rate.

Interest rates compound as you pay off your loan, which means they can add up to a significant amount over the term of your loan, especially if you have a fixed term, a large loan, miss payments, or prime lending rates change. Some loan terms also stipulate that you can't repay your funding earlier than your fixed term length, so you're either locked into their payment schedule or you may be subject to additional fees if you opt to pay early.

Factor rates are typically used for lending products that have no fixed term, which means you can pay them back in your own time and your cost of funding will not change. There are also no fees for paying back this type of funding earlier than expected.

Factor Rate	Interest Rate
Expressed as a decimal figure (eg. 1.3)	Expressed as a percentage (eg. 5.25%)
Applies to original funding amount	Applies to remaining balance and compounds as you pay off your loan
Used for merchant cash advances and other forms of short-term or alternative funding	Used for term loans, lines of credit, and credit cards, as well as personal lending products

Ultimately, whether a factor rate or interest rate works better depends on your business and why you're seeking funding.

Financing with a factor rate is typically ideal for:

• Businesses who need fast funding
• Businesses who need smaller loan amounts with shorter terms
• Businesses with lower credit scores
• Younger businesses
• Businesses that don't have collateral

Financing with an interest rate is typically ideal for:

• Businesses who need larger loans with longer terms
• Businesses in operation for 2+ years
• Businesses with strong credit histories
• Businesses that don't need funding quickly and have time to navigate the longer application process of the SBA and other commercial lenders

Factor rate funding like merchant cash advances and other forms of alternative funding offer a number of advantages over financing from traditional lending institutions, including:

• Simplified applications with less paperwork and less rigorous approval requirements.
• Faster processing and approvals, with funding available in as little as one business day in some cases.
• More flexibility and more room to negotiate terms.

Many types of alternative funding are available to businesses who need funding quickly, don't meet the strict criteria of the SBA and other traditional lenders, or would prefer not to seek funding from friends or family members. With funding from as little as $3,000 up to $500,000, business owners can access alternative funding that suits their unique needs, including merchant cash advances, term loans, invoice factoring, and business lines of credit.

Between traditional SBA and bank loans and newer forms of alternative business funding such as merchant cash advances and invoice factoring, determining what medical practice funding is best for you can be a challenging task.

To help you understand what medical practice funding options are available to you and which physican business loan is right for your needs, we shared our expertise with Physician’s Practice, an online resource dedicated to helping independent and hospital-owned practices navigate non-clinical medical practice management issues and challenges.

Read the full article to learn more about 6 popular medical practice funding options, including:

• SBA loans
• Bank loans
• Alternative funding
• Business lines of credit
• Practice acquisition loans
• Equipment financing

Choosing the right medical practice loan can be intimidating. Between traditional lending options like the SBA and banks and newer alternative lenders like Bluerock Options®, it can be difficult to understand the differences between each type of funding, and even harder to determine what kind of medical practice loan best suits your needs.

Every medical practice has a different financial history and faces a unique set of challenges and goals. These factors can impact what funding you qualify for, as well as what kind of funding is the most ideal for your purposes. Keep reading for our advice on what kind of medical practice funding suits you best, including:

• If you need fast funding
• If you need a large loan amount over $500,000
• If you have a strong financial history and great credit
• If you have low credit or no collateral
• If you are a newer practice
• If you need working capital
• If you are investing in real estate or purchasing an existing practice
• If you are purchasing equipment

Let's jump in.

Medical practices can use additional funding for a number of purposes, including:

1. Purchasing inventory: Medical supplies are expensive but essential, and maintaining inventory can be tough if cash flow is limited because of slow insurance payments or difficulty collecting payments from clients. Working capital funding like a merchant cash advance, invoice factoring, or a business line of credit can provide the capital you need to purchase medical inventory.
2. Purchasing or repairing equipment: Medical equipment can be prohibitively expensive to purchase and repair, and medical practices may need funding to help support these purchases or cover unexpected expenses. Medical equipment financing from traditional lenders or other alternative funding products like merchant cash advances are ideal for purchasing or repairing equipment.
3. Upgrading technology: Digitizing medical records can boost efficiency by improving billing, streamlining patient communication, and making it easier to share information with other physicians. However, upgrading technology requires an upfront investment in new software that can strain your practice's cash flow. Working capital funding can supply the funding you need to keep providing top-notch care while your team adjusts to the new technology.
4. Collections: Slow-paying insurance companies, delays in getting Medicare and Medicaid reimbursements, or non-paying clients can all create cash flow concerns for medical practices. Invoice factoring and other forms of working capital funding can help bridge the gap between payments.
5. Insurance: Medical practices have unique insurance needs, such as malpractice insurance and worker's compensation for illness. This can make insurance especially expensive for medical businesses.
6. Investing in real estate: Purchasing your office space can lower your monthly expenses and expand your assets. You may also want to invest in real estate to grow your practice to a new location or renovate your existing office to create a more comfortable environment for patients. Traditional and alternative lenders offer funding options that will enable you to invest in real estate.
7. Acquiring another practice: Purchasing an existing practice from a retiring physician is a good alternative to starting your own. It may also be an easier way to expand your practice by enabling you to serve new territories, offer new services, or acquire new patients without other investment in marketing. Traditional lenders offer practice acquisition loans designed specifically for this purpose. Alternative lenders also offer funding options that can help you acquire another practice.
8. Hiring staff: Adding additional doctors, nurses, and support staff will enable you to take on more patients without compromising quality of care. However, finding talented clinical staff can be difficult for smaller practices who may not have the budget to compete with the pay and benefits for larger organizations. Alternative funding like a merchant cash advance or a business line of credit can supply the funding you need when you need it to support your team's growth.
9. Marketing: Advertising your practice, creating or updating a website, or using direct mail to reach can help you reach new patients, whether you're opening a new practice, expanding to a new one, are concentrating on growing your patient roster, or have hired new staff and can take on new patients or are offering new or expanded services. Merchant cash advances and other alternative funding products are ideal for boosting marketing and growing your medical practice.
10. Patient services: Offer the most up to date and sought-after patient services to keep your practice competitive, such as online booking, online paperwork, real-time wait times, quick responses to inquiries, free wifi, or extended hours. Traditional and alternative lenders offer funding options that can help you improve your patient services and continue to grow your medical practice.

Traditional lenders like the SBA and banks offer the lowest rates and longest terms, but they have the most restrictive approval requirements and most applicants are rejected. Alternative lenders, on the other hand, can approve more medical practice loans than traditional lenders. They can also approve medical practice loans faster, with funds deposited in as little as 24 hours. Multiple types of physician funding are available from alternative lenders, including merchant cash advances, online invoice factoring, alternative business credit, collateral business loans, and term loans, with funding from as low $3,000 up to $500,000.

Bluerock Options® funds all medical specialties. Our expert Funding Advisors will work closely with you to determine which funding option will help you achieve your goals without compromising your practice's cash flow.

Small businesses make up approximately 98% of businesses in Canada, employing about 70% of the Canadian workforce.

There are many small business funding options available to help small businesses in Canada get started, manage expenses, and continue to grow. Between government-supported programs and lenders like the Canada Small Business Financing Loan program and the Business Development Bank of Canada, commercial banks, and alternative lenders, it can be difficult to choose the right funding for your business.

To help you find the right funding for your needs, we've outlined 4 of the best small business loans in Canada including CSBFL loans, BDC loans, bank loans, and alternative funding.

The Canada Small Business Financing Loan (CSBFL) program is administered by the federal government, similar to the Small Business Administration (SBA) in the United States. The government shares the risk with the lender by guaranteeing up to 85% of the loan, making it easier for small businesses to get financing from financial institutions.

Up to $1M in funding is available, but CSBFL funds can only be used for specific purposes, including:

• Purchasing or improving land or buildings used for commercial purposes, typically with up to 15 year terms
• Purchasing or improving new or used equipment, typically with up to 10 year terms
• Purchasing new or existing leasehold improvements, such as renovations to a leased property by a tenant, typically with up to 7 year terms

No more than $350,000 can be used for purchasing leasehold improvements, improving leased property, or purchasing or improving new or used equipment. Past purchases made within the last six months are eligible for financing. Funds cannot be used for goodwill, working capital, inventory, franchise fees, or research and development.

To help you find the right funding for your needs, we've outlined 4 of the best small business loans in Canada including CSBFL loans, BDC loans, bank loans, and alternative funding.

Canada Small Business Financing Loans are available to both established small businesses and start-ups operating in Canada with gross annual revenues of $10M or less. Farming businesses are not eligible.

Collateral or a personal guarantee may be required, potentially up to 25% of the loan amount.

Business owners must apply for a Canada Small Business Financing Loan through partnering financial institutions, including most major commercial banks. These institutions deliver the program and are solely responsible for approving your application. If you are approved, the financial institution will disburse the funds and register the loan with Innovation, Science, and Economic Development Canada.

Business owners must apply for a Canada Small Business Financing Loan through partnering financial institutions, including most major commercial banks. These institutions deliver the program and are solely responsible for approving your application. If you are approved, the financial institution will disburse the funds and register the loan with Innovation, Science, and Economic Development Canada.

Rates and fees for Canada Small Business Financing Loans are determined by the partnering financial institution. Rates may be fixed or variable depending on the loan amount, as well as your business's creditworthiness and risk assessment.

All Canada Small Business Financing Loans are subject to a registration fee that equals 2% of the total loan amount. The borrower must pay this fee to the lender, but it may be financed as part of the loan. Other fees, such as document preparation and application fees, may apply and will depend on the lender you're working with.

Canada's five major banks-TD, RBC, Scotiabank, BMO, and CIBC-all offer loan programs for small businesses. Some of these banks offer funding through the Canada Small Business Financing program in addition to other funding options such as term loans, business lines of credit, asset-based financing, operating credit, equipment financing, commercial mortgages, and more.

Every bank offers different loan options with different amounts, terms, and fee structures. Short term and operating loans, mid term, and long term loans are available with loan amounts starting at $10,000. 7-10 year repayment terms are common, but some loan options have terms up to 30 years.

Depending on the type of funding you're seeking, funding from commercial banks (excluding Canada Small Business Financing Loans) may be harder to acquire than other lenders. Most small businesses lack the credit history or don't have the collateral required to qualify, especially if they're in the start up phase. In this case, alternative lenders may be the best option, especially if you've been in business for at least six months.

Commercial banks typically do not offer an online application, and require business owners to speak to a representative in-person or on the phone to initiate an application. Application fees may apply.

Fixed and variable rates are available depending on the specific type of funding you're seeking.

The Business Development Bank of Canada (BDC) is wholly owned by the government of Canada. The BDC offers a number of funding options for businesses at every stage of the growth process, including loans for businesses in operation for less than 12 months, between 12-24 months, and for longer than 24 months.

Funding up to $100,000 is available, and in some cases can be deposited within 24-48 hours. A number of funding options are offered depending on how you intend to use the funds. Funding is available for a number of purposes, including:

• Supporting small projects
• Buying or renovating facilities or real estate
• Working capital
• Purchasing or transferring a business
• Purchasing equipment
• Fulfilling large purchase orders
• Investing in new technologies

Special financing for tech companies is also available, as well as financing programs for black and indigenous business owners.

The BDC also offers advisory and consulting services, including leadership and management coaching, business strategy, financial management, operational efficiency, e-commerce, digital technology advice, and more.

BDC loans are available to businesses in Canada at all stages of growth, including start-ups. Eligibility requirements depend on how long you've been in business and what type of funding you are seeking.

To apply for a BDC loan, you must be a Canadian citizen or permanent resident and have reached the age of majority in the province or territory in which you live.

Business owners can apply for BDC loans online using the BDC's step-by-step application process. Be prepared with information about your business and your business's project. Once you submit the online form, a representative will reach out to you to discuss financing options.

Rates and fees will depend on the specific type of funding you're seeking, as well as your funding amount and your business's credit and financial history.

Alternative lenders like Bluerock Options® emerged after the 2008 recession in response to a growing need for accessible small business financing. These lenders base approvals on more than just your credit score, making it easier for more businesses to get small business loans they need. They also generally offer the simplest application forms with fewer paperwork requirements, making alternative lenders ideal for business owners who don't have time to put together an extensive application or who need funding quickly.

Alternative lenders offer multiple types of funding, including traditional lending options like terms loans and lines of credit, as well as innovative new funding options like merchant cash advances and invoice factoring. Keep reading to learn more about these funding options.

There are no restrictions on how funds can be used. Common uses for alternative funding include:

• Working capital funding or extra cash flow. Alternative funding can be used however you need, whether it's for payroll or rent, or to kickstart marketing or other growth strategies, or respond to unexpected expenses.
• Financing the purchase of equipment or inventory
• Remodelling or renovating, purchasing a new location, or moving to a new location
• Hiring and training new employees

Eligibility requirements vary by lender. Most lenders require businesses to be in operation for at least 6 months and meet a minimum monthly revenue threshold for 3 consecutive months.

Alternative lenders base approval on more than just a business's credit score, and will consider other factors like revenue and cash flow, vendor payment history, and online reviews. This means that even businesses with low credit scores can be approved for funding from these lenders.

Business owners can apply for alternative funding online using a simple, streamlined application form. Once you submit your form, a representative will contact you to discuss your funding options. Depending on how quickly you are able to supply the requested paperwork, you may even receive your funding in as little as one business day.

Because approval requirements are more flexible, rates and fees may be higher. However, it's a common misconception that rates and fees are always higher than other forms of funding. Ultimately, your rates will depend on your business's creditworthiness and risk assessment.

Multiple types of funding are available through the Canada Small Business Financing Loan program, commercial banks, the Business Development Bank of Canada, and alternative lenders. Here are 5 of the best small business loan options in Canada:

With a term loan, a lump sum of funding is given to a business and is repaid over a set term length, typically in monthly instalments. Term loans often have longer term lengths depending on the purpose of the loan-real estate loans, for example, may have longer term lengths than equipment loans. There may be restrictions on how the funds can be used.

Funding limits, rates, and fees for term loans depend on your lender, your business and personal credit history, your overall risk assessment, and the purpose of the loan.

Term loans are ideal for:

• Businesses seeking larger loan amounts to finance specific purchases

Business lines of credit are similar to business credit cards, but with longer terms and higher limits. With a line of credit, you can draw and repay from the line as needed, and you only ever pay interest on the amount you borrow.

Business lines of credit are ideal for:

Businesses that want a flexible cushion for cash flow troubles or access to extra working capital to manage unexpected expenses

Learn more about alternative business credit.

A merchant cash advance (MCA) is not technically a loan. It's a non-loan form of financing known as a purchase of future receivables. With an MCA, you'll receive cash up front in exchange for a percentage of your business's daily or weekly debit and credit card sales until the advance has been repaid. There are no restrictions on how funds can be used.

Merchant cash advances are ideal for:

• Businesses that have a large number of card transactions
• Businesses with lower credit
• Businesses seeking flexible working capital funding

Learn more about merchant cash advances.

Whether you're a fresh grad looking to start up your own dental office, an experienced dentist ready to grow or expand your existing practice, or an established practitioner looking to upgrade your equipment or renovate your space, many dental practices seek additional funding to support their operations or fuel their growth.

Loans for dentists are generally considered to be a safe investment by lenders, in part because dentists earn an income that's well above the average small business owner-in 2020, the median salary for dentists was $164,010, compared to $56,590 for food service managers, and $56,900 for electricians. Some lenders even offer special funding options that factor in the unique borrowing needs of dentists, such as student debt.

Dental practice loans can benefit practices in all sizes and specialties, including:

• Family dentistry
• Orthodontists
• Periodontists
• Endodontists
• Prosthodontists
• Oral surgeons

To help you find the right funding for your needs, we've outlined 6 of the most popular business loans for dentists, including SBA loans, bank loans, alternative funding, and more.

Small Business Administration loans are actually provided by partnering lending institutions, but are guaranteed up to 90% by the SBA. This reduces the risk to the lender and results in lower rates and longer terms for borrowers. Loans from $5,000 up to $5M are available with terms ranging from 5-25 years.

For just about every industry, funding offered through the SBA's various loan guarantee programs is often considered to be the best option. While there are compelling advantages to SBA loans, such as longer terms and lower rates, there are drawbacks to consider as well.

SBA loans have very strict approval requirements with the most rigorous documentation requirements of any lender, including several years' worth of detailed financial documentation and a business plan that outlines why you are seeking funding and how you plan to repay it. It can take weeks or months to process your application, and approval is never guaranteed. Collateral and/or a personal guarantee are also required.

The SBA and their partnering lenders typically prefer to grant large loans to wealthy businesses, and often reject applications for smaller loan amounts or applications made by businesses with healthy financial profiles but which still don't quite meet their strict approval requirements. These requirements exclude many businesses, including successful dental practices with strong cash flow.

Commercial banks offer a number of funding options for dentists. Some commercial banks, including Bank of America, Wells Fargo, and U.S. Bank, have even partnered with the American Dental Association to offer lending options designed specifically for dentists that feature unique advantages such as reduced fees and other special offers for ADA members.

Loans from $30,000 up to $5M are available with terms up to 25 years. The exact terms of your dental practice loan will depend on the purpose of the loan and the loan amount, as well as your financial history and creditworthiness. Start-up loans are also available, with interest-only and graduated payment schedules.

The application process for a bank loan is as selective as SBA loans, but with potentially shorter timelines. However, it could still take weeks to process your application, and approval is never guaranteed. Collateral and/or a personal guarantee are often required, and it may also be difficult to get funding from a traditional bank if you don't already have a relationship with that institution.

Also called online lenders, alternative lenders like Bluerock Options® offer funding up to $500,000, typically for shorter term lengths ranging from three months to five years. These lenders provide a number of funding options that can benefit dental practices, including:

• Merchant cash advances
• Invoice factoring
• Business lines of credit
• Alternative small business loans
• Collateral real estate loans

The application process is more streamlined and less restrictive than the SBA and traditional banks, and in some cases it can even be handled entirely online. Funding can be deposited in as little as one business day, making alternative lenders an ideal option for dental practices looking for fast funding.

Approval requirements are also less restrictive than the SBA and traditional banks, making alternative funding available to more businesses, including:

• Newer practices (in operation for at least 6 months)
• Practices with a strong financial history but which don't quite meet the strict requirements of the SBA or a bank
• Practices with low credit
• Practices looking for shorter term funding or smaller loan amounts.

Unlike SBA and bank loans, alternative lenders typically do not require collateral or a personal guarantee. However, because approval requirements are more lenient and terms are shorter, rates may be higher.

Business lines of credit function similarly to business credit cards, but with higher limits and longer terms. Available from both traditional and alternative lenders, lines of credit offer the most flexibility by providing your practice with an ongoing source of working capital that can be drawn from and repaid as needed. This makes lines of credit ideal for responding to unexpected expenses, purchasing supplies and equipment, or repairing equipment. You only ever pay interest on the amount you borrow.

Dental practices have significant equipment needs, including dental chairs, lighting, x-ray and imaging equipment, basic instruments, office computers, and PPE for staff. This equipment can be very costly to purchase, and regular maintenance and unexpected repairs can also put a strain on your practice's cash flow.

Equipment financing is designed specifically to fund the purchase of new equipment. This type of funding may require a down payment to purchase new equipment, but because the equipment acts as collateral to secure the loan, equipment financing may be easier for newer businesses still establishing a credit history or businesses with lower credit scores to acquire.

Some lenders offer funding options that are designed specifically to help you purchase a dental practice, whether you're just starting out or are ready to expand to a new location. However, because they are typically for higher loan amounts and longer terms, dental practice purchase loans often require significant paperwork and many applicants are rejected.

The best dental practice loan ultimately depends on why you're seeking funding and how you intend to use it.

For larger loan amounts and longer terms, SBA or bank loans are the best option for businesses with healthy financial histories and extremely strong personal and business credit. Alternative lenders also offer longer-term funding options if your dental practice doesn't meet the strict requirements of these lenders.

For short-term funding, alternative lenders can provide an infusion of working capital that can help you meet immediate cash flow needs such as payroll or repairing equipment, as well as growth strategies like boosting your marketing or hiring staff.

For fast funding, alternative lenders are the best option. These lenders have a streamlined application process with fewer documentation requirements and can provide funding in as little as one business day.

For flexible funding, business lines of credit are an ideal source of working capital. You can draw from and repay the line of credit as needed to cover everyday or unexpected expenses, and you only pay interest on the amount you borrow.

Some lenders, including the SBA and banks, as well as certain funding types, will restrict how you can use your funds. Unless specified, business loans for dentists are commonly used for:

• Working capital: Covering day-to-day expenses like payroll, supplies, rent, utilities, and insurance.
• Expanding or renovating: Opening a new location or sprucing up your current office with new fixtures, decor, or equipment.
• Acquisition: Dental practice purchase loans can be used to acquire an existing practice or buy into one as a new partner.
• Purchasing equipment: Dental technology is always evolving. Investing the latest technology can keep your practice on the cutting edge.
• Starting a practice: From equipment to office space to hiring employees, starting a practice can be very costly. Many dentists, whether they're new to the career or are branching out on their own, need funding to help cover these expenses.

Multiple types of business loans for dentists are available from a variety of lenders, including the SBA, banks and other traditional lenders, and alternative online lenders like Bluerock Options. The best dental practice loan ultimately depends on your goals and your practice's creditworthiness.

The SBA and other traditional lenders may offer the best rates and longest terms, but these lenders have very strict approval requirements and most applications are rejected. Alternative lenders have flexible approval requirements and a variety of innovative funding options that make more funding available to more dental practices, including newer practices, practices seeking lower loan amounts, practices with lower credit scores, and practices looking for fast funding.

Compiling the paperwork you need to apply for a small business loan can be time consuming and challenging, especially if you aren't sure what loan documentation you'll need before you apply. Having all of your documents organized before you apply for funding can significantly reduce the time you spend waiting for approval. Some lenders are even able to approve and deposit funding in as little as 24 hours if you're able to provide your loan documentation in a timely manner.

Loan documentation requirements vary based on the type of lender and the type of funding you're applying for. Traditional lenders like the Small Business Administration (SBA) and banks have much stricter documentation requirements, requiring years of personal and business financial information, while alternative lenders like Bluerock Options® typically ask for much less paperwork and have a faster, more streamlined process that can save you hours when compiling your loan documentation.

Our loan documentation checklist will help you understand how to apply for a small business loan, whether you're applying for funding from the SBA or an alternative lender.

SBA loans have the most rigorous application process with the most comprehensive loan documentation requirements. Here's what you'll need to apply for an SBA 7(a) loan:

This loan application form is used to profile the applicant who is seeking the loan, including details like contact information, identifying company qualities, loan intent, business principles, and an overview of previous or outstanding loans. You'll need to submit one for anyone who owns 20% or more of your business, as well as all officers and directors, managing members, anyone who manages day-to-day operations, and any one who might be guaranteeing the loan.

These forms are used to ensure your personal credit is strong and verifiable, and will include a list of assets and liabilities to give your lender an idea of your current net worth and your history with investments. You'll need to supply each of these forms for partial owners, general partners, proprietors, and managing members of your business.

You'll need to provide the following:

• A profit and loss statement current within 180 days of application, including supplementary schedules for the last three fiscal years.
• Projected financial statements, including a detailed one-year projection of income and finances with a written explanation of how you intend to achieve your goals.
• Year-end balance sheet for the last three years, including a detailed debt schedule.
• Reconciliation of net worth
• Interim balance sheet
• Interim profit and loss statements

Including a list of names and addresses of any subsidiaries and affiliates, concerns in which you have a controlling interest, and concerns that may be affiliated by stock ownership, franchises, proposed merger, or otherwise.

You'll need to supply the original business license or certificate of doing business. If you are a corporation, stamp your corporate seal on the SBA Borrower Information Form (SBA Form 1919).

Include records of any loans you may have applied for in the past.

You'll need to provide signed personal and business federal income tax returns for the previous three years.

Include personal resumes for each principle, tailored to the loan application process. This is a great opportunity to flaunt your skills and ability to run a successful small business.

Supply a brief history of your business and its challenges, including an explanation of why you're seeking an SBA loan and how it will help your business.

If your business has a brick-and-mortar location, include a copy of your lease or a note from your landlord explaining the terms of the lease.

If you are purchasing an existing business, you will also need:

• A current balance sheet and profit and loss statement for the business to be purchased
• Previous two years of federal income tax returns for the business to be purchased
• Proposed bill of sale, including terms of sale
• Asking price with schedule of inventory, machinery and equipment, and furniture and fixtures

You may also be asked to provide a detailed plan for how you intend to deal with the ongoing COVID-19 pandemic. Lenders have grown more conscious of security for loans in the pandemic, and are more likely to subject your application to a stricter review to ensure you can tolerate extra stress by considering questions like "what if this business needs to operate at 50% capacity?" or "what if this business cannot operate with clients indoors?".

Lenders may also review COVID-19 trends in your area and base their lending decision on when your business segment will return to normal, as well as the likelihood of avoiding future shutdowns.

Banks, credit unions, and other traditional lenders also have lengthy paperwork requirements. If you're applying for funding from a bank, prepare all the documentation you'd need for an SBA loan. You may not need all of it, but it's a good idea to have it prepared just in case.

Alternative lenders, including direct online lenders like Bluerock Options®, have streamlined online application forms that require less extensive paperwork. Applying for funding from these lenders often begins with a simple online form that will collect information such as:

• How much funding you're seeking
• Monthly revenue
• Time in business
• Company name
• First name, last name, and contact info of applicant

You'll also be asked to submit:

• Tax returns: You may be asked to submit up to three years worth of signed personal and business federal income tax returns, depending on the age of your business.
• Bank statements: Collect three most recent bank statements for your business and personal accounts.
• Cash flow statements: Include a balance sheet and profit and loss statement.
• Personal identification: Including social security, driver's license, or any current government-issued photo ID.
• Business lease: If your business has a brick-and-mortar location, include a copy of your lease or a note from your landlord explaining the terms of the lease.

If you're purchasing a business:

• Current balance sheet and profit and loss statement for the business
• Federal income tax returns
• Proposed bill of sale
• Asking price with schedule of inventory, machinery and equipment, and furniture and fixtures

• Online application form
• Federal income tax returns
• Bank statements
• Cash flow statements
• Personal identification
• Business lease

Loan eligibility and documentation requirements vary by lender and funding type, which can make it difficult to know how to apply for small business funding when you need it.

Compiling all the necessary documentation before you apply can significantly streamline the application process, especially if you're applying for funding from an alternative lender. These lenders require less paperwork, and can approve your application and deposit funds in as little as one business day if all the documentation is supplied in a timely manner.

Do you have more questions about how to apply for small business funding? Read our guide:

The construction industry is a major contributor to the country's economy, with more than 680,000 employers and over 7 million employees creating nearly $1.3 trillion worth of new structures each year across the USA.

A number of specialties fall under the general umbrella of "construction", including:

• New building construction
• General contractors
• Plumbers
• Electricians
• Remodelers and renovators
• Landscapers
• Carpenters
• Painters
• Roofers, and more.

No matter what specialty you operate in, every construction business may occasionally need access to additional working capital in order to manage unexpected expenses, shore up seasonal cash flow, or fuel new growth strategies. Working capital loans for construction businesses can be used for a number of purposes:

• To bid for a new project: Opportunities for new projects may come along unexpectedly, and you may need fast working capital up front in order to pitch new clients that will allow you to grow.
• Fill seasonal gaps: Construction businesses are among the most susceptible to inclement weather and seasonal demand, making it difficult to maintain cash flow in the off-season.
• Maintain cash flow during long billing cycles: Some clients may not pay till a project is completed. In the meanwhile, you still need to pay your employees and acquire supplies.
• Purchase raw materials needed to start a project: Raw materials can be expensive, and you may need to foot the cost until you're paid in full for completing the job.
• Open a new business: Between business formation fees, office space, inventory and equipment, and other expenses, the average start up costs for a construction company are more than $42,000. Unless you have savings to draw from, you'll need small business funding to open a new construction business.
• Expand your existing business or: Boosting your marketing campaigns and courting new business may require an investment of capital.

If you search online for "construction loans", your search results will likely feature a number of resources talking about loans designed to help property owners-not construction business owners-finance specific projects, such as building a new home or office.

Aside from these "self-build" loans, multiple types of working capital loans for construction companies are available to help construction business owners in any field and at any stage in their business's life cycle overcome challenges and continue to grow, including including long- and short-term funding, as well as secured and unsecured loans.

Here are 6 of the most common construction company loan options:

1. SBA loans for construction companies
2. Bank loans for construction companies
3. Merchant cash advances
4. Invoice financing and invoice factoring
5. Business line of credit
6. Equipment financing

Let's take a closer look at each of these options.

SBA loans for construction companies are not actually provided by the SBA. Instead, the funding is supplied by a commercial lender like a bank or credit union, and the loan is guaranteed by the SBA up to 85%. This reduces the risk to the lender and encourages lenders to offer more construction company loans.

SBA loans typically offer the lowest rates and the most favorable terms, but the business loan application process is significantly more difficult, with very strict eligibility requirements and extensive application forms that require years of detailed personal and business financial information. It can take weeks or months to process your application without any guarantee of approval, and most applicants are rejected.

The SBA offers several loans options for construction companies:

• 7(a) Guaranteed Loans: These are the most commonly sought SBA loans for construction companies. Up to $5M is available with fewer restrictions on how funds are used, longer repayment terms, and lower interest rates, and typically require collateral. The 7(a) loan program also includes Express loans, which have a turnaround time of 36 hours or less and don't require collateral for loans under $25,000.
• 504 Local Development Company Program: These are long-term, fixed rate loans that are typically used to purchase real estate or equipment. 504 loans are provided by CDCs through commercial lending institutions, requiring the borrowing business to use funding to create or retain jobs or uphold other public policy goals like supporting minority-owned businesses, rural development, or revitalizing a business district.

Bank loans for construction businesses typically offer favorable terms and rates similar to the SBA depending on the size of the loan and your business's credit history. Lending requirements are strict but may not be quite as strict as the SBA, especially if you have an existing relationship with your lender.

Similar to the SBA, it can take weeks or months for a bank to process your application, and approval is never guaranteed. Banks often prefer to grant large loans to established businesses, and typically consider the construction industry to be a high risk industry thanks to seasonal volatility and unstable cash flow. For these reasons, it can be tough for construction companies to access the funding they need from a traditional bank, especially if they're a smaller business, a newer business, or are looking for a smaller loan amount.

Merchant cash advances (MCAs) are technically a non-loan form of financing called an "asset purchase". This means that instead of providing a lump sum that is repaid over a fixed term in pre-determined instalments, your lender will purchase a portion of your future sales in exchange for an infusion of working capital up front.

MCAs are available from alternative online lenders like Bluerock Options®. These lenders have flexible application requirements that focus less on factors like credit score and financial documentation and more on the health and potential of your business. Approval can be made in as little as one business day, making MCAs ideal for construction businesses that need working capital fast.

Instead of repaying a merchant cash advance in fixed installments like a term loan, payments are automatically deducted from your daily and weekly credit and debit card sales until the advance is repaid, plus any fees. This makes MCAs ideal for businesses that process a large number of credit card transactions such as plumbers, electricians, or other consumer-facing construction businesses.

Learn more about merchant cash advances.

Invoice financing provides fast access to working capital in exchange for your business's unpaid invoices. Available through alternative online lenders as well as traditional lenders, invoice factoring is also technically not a loan-it's a form of accounts receivable financing in which you sell your outstanding invoices at a discounted price in exchange for the net amount in cash (typically between 70-90% of the invoices' value).

There are two main types of invoice financing:

• Invoice financing: You, the business owner, are responsible for collecting payment on the outstanding invoice.
• Invoice factoring: Your lender is responsible for collecting payment. Once your client pays the invoice your lender will send you the remainder of the invoice value (minus any fees).

Because the invoice acts as collateral to secure your funds, invoice factoring typically has less strict application requirements than other forms of funding, with less focus on your credit score and financial history and more on your business's revenue and other indicators of health and future potential. When you apply for invoice factoring with an alternative online lender, approval can be made in as little as one business day.

Learn more about online invoice factoring.

Business lines of credit function similarly to business credit cards, but with longer terms and lower rates. Unlike a lump sum of funding like an SBA 7(a) loan or a merchant cash advance, business lines of credit provide a maximum credit amount from which funds can be drawn and repaid as needed.

Available from both traditional and alternative online lenders, business lines of credit offer the most flexibility by allowing you to draw and repay with no restrictions on how the funds are used. You'll only ever pay interest on the amount you borrow. Payments are typically monthly and will cover both the interest and the principal.

Lines of credit can be secured or unsecured depending on the strength of your application and the credit limit you're seeking. They can also be based on fixed or revolving terms. With a fixed line of credit, the term length is set in advance and will not reset when you repay the balance; with a revolving line of credit (also called an open-ended line of credit), your credit line will reset when you pay the balance in full.

Their flexibility makes lines of credit ideal for managing a number of expenses unique to construction businesses, including:

• Responding to unexpected emergencies
• Restocking raw materials
• Purchasing new equipment or technology
• Bidding for new jobs
• Shoring up seasonal cash flow
• Other major expenses that don't require a loan but which may drain your cash flow

Equipment financing is a special form of construction company funding designed to help fund the purchase of expensive construction equipment, such as bulldozers, lifters, excavators, loaders, forklifts, and any other heavy machinery or costly equipment. The lender will typically supply 80-100% of the cost of the equipment, with the equipment serving as collateral to help secure the loan.

Funding from an equipment financing loan can only be used to purchase the specific equipment it's being sought for, but because equipment financing is secured, it typically has lower rates than other forms of construction company funding. Equipment financing is repaid in regular instalments, typically monthly, with the term length dependent on how long the lender anticipates the equipment will last.

The right construction company funding depends on a number of factors, such as how much funding you need, why you are seeking funding, and your business's age and financial history.

Bank and SBA loans for construction companies typically offer the best rates and terms, but the application process for these loans is extensive with very strict requirements that exclude most business owners. As an alternative lender, Bluerock Options can approve more working capital loans for construction companies in as little as 24 hours. We provide several types of small business funding to help grow your construction business, such as merchant cash advances, invoice factoring, and business lines of credit, with funding from as low as $3,000 up to $500,00 available.

We fund businesses in all construction specialties. Our expert Funding Advisors will work closely with you to determine which funding option will help you achieve your goals without compromising your business's cash flow.