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Florida Business Loans: Top Loan Options for Florida Businesses

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The Sunshine State offers plenty of growth opportunities for Florida small business owners – both aspiring and established. Aside from the fact that its economy is the fourth largest in the country, it’s also one of the seven states with the lowest tax burden. For instance, Florida doesn’t have a personal income tax or other tax nuisances in other states. These tax benefits are primarily why many entrepreneurs start or move their businesses to Florida.

But to start or run a business in Florida, you need to have sufficient capital. Florida business loans can help you get the funding you need to cover business expenses. This could include startup costs, equipment purchases, real estate acquisitions, marketing efforts, and other growing pains.

Tourism Business Loans in Florida

Florida is one of the most popular tourist destinations in the country. But the problem with tourism businesses is that they’re highly prone to seasonality. As for Florida’s case, spring and summer prove to be the most challenging seasons as people may prefer spending their time and money in the northern area of the country where the weather is nicer. Aside from that, hurricanes could also threaten brick-and-mortar stores as they may cause significant damage to establishments.

Small business loans in Florida can help the extremely seasonal tourism businesses in Florida bridge the seasonal cash flow gap. They can get the funds needed to cover the repairs and damages, payroll expenses, or inventory reordering to prepare for the busy season.

Tech Business Loans in Florida

Metropolitan areas like New York or Silicon Valley aren’t the only ones generating a buzz in the technology industry these days. As more and more people move to the Sunshine State to establish or expand their tech business, the state, specifically Miami, is definitely getting the gains.

Technology businesses are capital-intensive. The payroll expenses alone can take up most of the business’ budget, and it can quickly drain the cash reserves without backup financing. You can cover the cost of running your tech business in the state with Florida business loans. You can pay for the licenses, equipment, marketing, staff, and other business initiatives, without worrying about using up most of your limited financial resources.

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Small Business Loans Florida 

Florida-based businesses have plenty of options when it comes to business financing. Although it’s home to many venture capitalists and angel investors, companies looking for debt-based financing may choose among the wide range of small business loan options.

Business Term Loans

Business term loans are a traditional financing that offers a lump sum of cash upfront, which is then paid in fixed increments over a specific period, or term. These loans usually come with a fixed interest rate, so you will know exactly how much they owe in repayments each month.

Term loans are classified into three different types according to their repayment term. Short-term loans usually mature within a year (or 18 months for some lenders) and may come with lower loan amounts. Medium-term loans have a repayment period of two to five years, while long-term loans have up to 20 years.

SBA Loans

SBA loans are backed by the Small Business Administration. offered to small businesses that can’t qualify for loans elsewhere. It’s the most coveted business loan because it offers higher loan amounts and the interest rates are among the most affordable in the market. With SBA loans, businesses can get up to $5 million in funding with repayment periods of up to 25 years.

It’s worth noting that there are a lot of different SBA loan products. The most popular, SBA 7(a) loans, are the most flexible, which means you can use them for any business purpose – including working capital. If you’re looking to apply for loans specifically to acquire real estate or purchase equipment, the SBA CDC/504 loans might be a more suitable choice for them.

Business Lines of Credit

Business lines of credit work a lot like business credit cards, where you are given access to a set amount of capital. Companies can repeatedly draw money from the credit line as long as they don’t exceed the pre-established credit limit.

One of the main selling points of business lines of credit is that you only have to take the amount you need and pay that same amount back. It also goes on to say that the interest charged will only apply to the amount borrowed. Once approved, you can use your lines of credit toward any business purpose, such as working capital, equipment purchase, renovations, or other business opportunities.

Invoice Financing

Unpaid customer invoices can stall cash flow, slowing company growth. Invoice financing is a type of business financing that lets you advance the cash using your invoices as collateral, so you won’t have to wait for the customers to settle their dues. You can get as much as 95% of the total value of your invoices financed. With that, you can cover your monthly payables and take advantage of business opportunities.

Depending on the lender, they may insist on taking over your accounts receivable ledger and collecting the payments from your customers. While this can be a deal-breaker for some, others find this to be a helpful feature, especially if they lack the resources to handle the payment chasing and collection.

Equipment Loans

Equipment can be expensive for many businesses, and paying for it outright could drain your cash reserves. Equipment financing is tailored specifically to help companies to purchase much-needed equipment without causing a strain on their cash flow. With it, companies can get between 85% to 100% of the equipment’s value financed.

With equipment financing, the equipment itself will serve as the collateral for the loan. In other words, the financing company can repossess the equipment if your business cannot meet the required repayments.

Asset-based Loans

Asset-based loans are a type of business financing secured by collateral. Unlike other business loans, it looks at your collateral before your cash flow. It’s an excellent option for businesses with many assets sitting on their balance sheets. With asset-based financing, they can free up cash through their assets and keep up with the company’s increasing capital requirement.

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Ways to Use Florida Small Business Loans

Small businesses in Florida will eventually find themselves in need of additional cash to cover business initiatives. Among the most common uses for these loan programs include:

  • Working capital
  • Buying equipment
  • Acquiring another business
  • Commercial real estate purchases
  • Inventory reordering
  • Construction
  • Renovations
  • Product expansions
  • Marketing and advertising
  • Cash flow cushion
  • Refinancing debt

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