Small Business Loans in Louisiana
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Financing for Companies in Louisiana
The state of Louisiana is filled with rich traditions and history. Its economy relies on prideful business owners to bring much-needed revenue to the local economy. The state is continuing to look for ways to boost its local economy and business loans in Louisiana are vital to the success of the state's economy. While new industries are expanding, the state is dependent on a few key industries, such as agriculture, oil, natural gas, chemical production, and commercial fishing.
SMB Compass provides business loans to a wide range of industries and businesses to help continue to grow the local economy.
Agriculture and Mining Loans in Louisiana
The agriculture industry contributes a significant amount to the state's annual revenue. The warm climate allows small businesses to take advantage of planting, growing, and harvesting crops all year round. The most popular crops in the state are cane, sugar, rice, soybeans, and cotton, while the most common livestock are cattle and calves.
Although they are both equally important, crops bring in more revenue than livestock. Louisiana relies on its fertile farmland and natural resources such as oil and gas to bring added revenue to the local economy. Small business loans in Louisiana provide those businesses a way to overcome any short-term expenses or challenges they may face.
Fishing and Restaurant Loans in Louisiana
Louisiana is conveniently positioned on the gulf coast, providing local restaurants and large franchises around the country with their famous seafood. Commercial fishing generates a large sum of revenue and jobs for the food industry and the state's economy.
Small business owners can benefit greatly from restaurant business loans. They can use the money to invest in their business, fund day-to-day operations, and more.
Tourism and Hotel Loans in Louisiana
Louisiana's major tourist destinations are New Orleans and Baton Rouge, which bring a large amount of revenue to the tourism industry. New Orleans, home to the famous Mardi Gras, has over one million visitors each year - that's roughly three times the entire city population! The New Orleans Saints and the LSU athletic program attract visitors from around the country, providing a large revenue stream for the local economy.
A business loan helps small business owners prepare for busier seasons, as well as operate efficiently during the slower months.
Business Line of Credit Louisiana
Business lines of credit are revolving lines that provide small business owners with easily accessible financing. Once approved, lenders assign you a predetermined credit limit which you can draw funds from as needed, given that you don't exceed said limit. Unlike other loan options, you don't have to repay the entire loan limit. Instead, you only have to pay for the amount you've withdrawn.
A business line of credit is an ideal financing solution for companies that want to build a safety net for unforeseen expenses and businesses that frequently need cash.
SBA Loans in Louisiana
The Small Business Administration is a government agency that created SBA loans to provide bank-rate financing to small businesses. The SBA loan guarantees a portion of the financing, which means the SBA will still pay the SBA-accredited financial institutions in case of a default.
SBA loans are one of the most sought-after financing options because it provides high loan amounts, low interest rates, and longer repayment periods. However, it can be challenging to qualify for SBA loans. To qualify, you must be able to prove that you are a strong borrower in terms of revenue, credit score, time in business, collateral, and more.
Asset-Based Lending in Louisiana
Asset-based loans rely on the value of your assets to determine the terms of your loan, instead of cash flow and credit. You can use the following collateral to secure an asset-based loan: purchase orders, commercial real estate, inventory, equipment and machinery, accounts receivable, intellectual property, and marketable securities.
These loans typically offer lower interest rates and provide a better chance of approval because the collateral lowers the lender's risk. It's best for existing businesses that have valuable assets but don't have enough credit or cash flow to qualify for a small business loan.
Factoring for Louisiana Businesses
Invoice financing is a funding solution that allows small businesses to use unpaid invoices as collateral in exchange for immediate financing. A small business usually receives up to 80% to 90% of the total invoice value. Once your customers pay their invoices, you'll receive the remaining percentage minus a small transaction fee.
With invoice financing, you won't have to wait for 30 to 90 days to receive payment from your customers. You can immediately use the money for almost any business purpose, such as capital, payroll, and other investments.
Business Equipment Financing Louisiana
Equipment financing Louisiana provides you with the financial assistance necessary to acquire much-needed equipment for your business. There are two types of equipment financing: equipment loans and equipment leases.
An equipment loan is similar to a business term loan where the borrower makes fixed monthly payments until they've repaid the loan in full. The borrower will own the equipment at the end of the term.
For equipment leasing, instead of borrowing money to purchase equipment, the borrower pays a fixed fee each month to rent the equipment. After the lease is over, the borrower can either continue the contract, cancel it, or purchase the equipment.
Business Term Loan Louisiana
A business term loan is your classic small business loan where you receive a lump sum of money that needs to be repaid in fixed installments within a specified period. The maximum loan amount for business term loans is up to $5 mullion and loan payments are charged monthly. However, some lenders ask for weekly or bimonthly payments.
Purchase Order Financing Louisiana
Louisiana small business purchase order financing is best for businesses that need extra capital to fulfill large purchase orders. The PO financing company (lender) will directly pay your suppliers to manufacture and deliver the goods to your customers. Once your customers pay, the PO financing company will deduct its service fee before sending the remaining amount to you.
However, keep in mind that PO financing is only available to companies that sell completed products. Those who sell services or materials are not eligible.
How to Use Louisiana Small Business Loan
Acquire a small business in Louisiana
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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