Small Business Loans in Arizona

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Financing for Companies in Arizona

Arizona has numerous industries and opportunities that help drive business in Arizona state’s economy. Arizona is famously home to The Grand Canyon, one of the most visited tourist locations in the country. Although tourism is an important factor, Arizona’s local economy is reliant on small businesses and middle market companies. And if there’s one thing the Arizona businesses share, it’s their need for working capital.

SMB Compass provides business loans in Arizona and specializes in many types of Arizona small business loans in Phoenix, Az industries, and businesses.

Cities such as Phoenix, Tucson, Scottsdale, Mesa, and Tempe are the main hubs of small business and commerce in the state. The dry climate in Arizona has a negative effect on some industries, leaving businesses to operate as seasonal businesses, depending on the products or services they provide.

Small business lending in Arizona allows businesses to bridge the gap between the slow and busy seasons of the year.

Agriculture Loans and Mining Loans in Arizona

The warm weather in Arizona presents unique opportunities for farmers and small business owners within the agriculture industry in Phoenix, Az. The state relies on agricultural products to provide jobs and revenue for the local economy. Crops are a source of revenue for many different farmers, logistics, and packaging companies. Lettuce is the largest crop produced, and the state currently ranks 10th on cotton production nationally on an annual basis. Beyond the Agriculture industry, the mining industry is also prevalent in Arizona, producing a large amount of copper. Arizona small business loans help small business owners cover expenses and grow their respective small businesses.

Hotel Loans and Restaurant Loans in Arizona

It is no surprise that the tourism industry is thriving in Arizona. With magnificent tourist attractions and beautiful weather year-round, visitors come from around the world. This has resulted in 170,000 jobs in the travel and lodging industry. Hotels and restaurants use small business loans in Arizona for a wide variety of purposes including expansion, commercial real estate investments, and overhead expenses. 

Restaurant loans in Arizona help business owners with expenses such as marketing and inventory. Small business loans allow these companies to market and target specific demographics and attract more business. 

Several loan options are great financial resources to help hotels in Arizona remodel and keep their facilities up to date. A business loan offsets these expenses by allowing for an extra cushion in small business loans Arizona the company’s cash flow and daily operations.

Small Business Loans in Arizona

Business Line of Credit Arizona

Small businesses looking for small business financing that offers flexibility can benefit from business lines of credit. Business lines of credit are revolving credit where businesses get a credit line they can draw from on an as-needed basis. They can use the resource for a wide variety of business needs, including working capital, equipment purchase, inventory, new facilities, and more. Business lines of credit can be secured or unsecured business lines of credit. With secured lines of credit, businesses might need to pledge collateral, while unsecured business lines of credit do not have the same requirement.

SBA Loans in Arizona

The Small Business Administration (SBA) is a federal government designed to assist small businesses and enable them to effectively compete in the American economy. The SBA Loan program is intended to help small businesses gain access to comprehensive, low-cost, and long-term business financing. The most common SBA Loan Programs include SBA 7(a), SBA CDC/504, and SBA Express Loans. While SBA 7(a) and SBA Express loans offer flexibility, SBA CDC/504 Loans are exclusively intended for hard-asset investments like real estate and equipment purchases. SBA Express Loans fall under the SBA 7(a) loan but differ in terms of approval time.

To qualify for loans offered by the Small Business Administration (SBA), business owners must have a credit score of at least 650, 2 years of business history, and annual revenue of $100,000. It’s also worth noting that the Small Business Administration doesn’t originate the loan. But the SBA works with a private SBA lender (i.e., banks, credit unions, or online lenders).

Asset-Based Lending in Arizona

Asset-based lending relies mostly on the assets the business owns. That means your cash flow won’t be the main consideration when it comes to eligibility. With asset-based loans, you can pledge business assets like equipment, inventory, invoices, or commercial real estate to secure the loan. Unfortunately, tying up your loan to the assets also means that if you default, the lenders will be able to seize the pledged collateral. 

Invoice Financing

Invoice financing allows businesses to leverage their customer’s outstanding invoices in exchange for upfront cash. The financing company then takes charge of the customers’ invoices - including payment collection. One benefit of invoice financing is that the business owner’s credit score won’t be the main consideration for eligibility. The lenders are more concerned about your clients’ creditworthiness as the payment for the funded amount will depend on their repayment capabilities. 

That said, one surefire way to improve your chances of getting approved for invoice financing is to work with creditworthy clients. 

Business Term Loan Arizona

Business term loans are the traditional type of loan wherein the company gets a lump sum of cash upfront. The business then repays the loan in weekly or monthly increments within a fixed termBusiness term loans are classified into three based on their repayment terms. They can be short-term loans, medium-term loans, or long-term loans. Once approved, businesses can get anywhere from $5,000 to $5,000,000. The proceeds can be used to fund a variety of business initiatives, including business acquisitions, partner buyouts, real estate acquisitions, and other business resources.

Equipment Financing Arizona

Equipment can be one of the biggest investments a company has to make. In fact, buying one out-of-pocket can be debilitating, especially if their cash reserves are limited. Equipment loans allow businesses to finance the equipment they need so they don’t have to dig into their reserves and avoid straining their cash flow. The equipment financed will serve as collateral for the loan. With that, the financing company can seize the equipment and use it as payment if they default on the repayments. 

Purchase Order Financing Arizona

With Purchase Order Financing, small business owners use their customers’ purchase orders to obtain financing and cover the cost of the project. However, unlike the typical financing options, the money doesn’t go through the business owner's hands. Instead, the lender pays the supplier directly. 

Inventory Financing Arizona

If your business carries a large inventory and your cash is tied up on your unsold stocks, you can apply for inventory financing. With this financing option, the inventory you carry will serve as the collateral for the loan. Lenders can fund up to 60% of the total value of inventory. 

Commercial Real Estate Loan Arizona

Commercial Real Estate Loans are Long-term financing options specifically tailored to help small businesses invest in real estate. Properties can be expensive, and the business would most probably need additional resources to be able to afford the investment. In that case, real estate loans can cover your financial needs. 

Here are the many ways to use a small business loan in Arizona

  • Acquire small business loans
  • Refinance existing loans and credit card debt
  • Purchase or refinance commercial real estate
  • Buy or lease machinery and equipment
  • Purchase inventory and raw materials
  • Improve cash flow
  • Marketing and advertising campaigns
  • Upgrade technology and business software
  • Renovate existing office space
  • Day-to-day operating expenses

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