Small Business Loans in New Mexico

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    Financing for New Mexico Businesses

    New Mexico's economy has primarily been centered on the oil and gas industry. With oil and gas at the forefront of the local economy, there is a constant need for labor. Both initiatives provide over $2 billion in tax revenue for New Mexico annually.

    The state is the eighth largest energy supplier in the United States, making New Mexico's climate and open terrain a great supplier of energy. One of the state's most significant resources is The San Juan Basin, the largest natural gas reserve in the country. These industries

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    Oilfield Service Loans New Mexico

    Outside of oil and gas, the state relies on small business owners. When oil prices drop, the state's economy may experience hardship. Small business loans in New Mexico have helped businesses successfully make it through tough times. SMB Compass provides business loans in New Mexico to a wide variety of industries. Manufacturing, distribution, logistics, and transportation are all vital industries in New Mexico.

    Manufacturer Loans in New Mexico

    The manufacturing and distribution industries in New Mexico use business loans to finance and grow their operations. These industries must have the necessary equipment and machinery, raw materials, and other supplies to service their clients better.

    Over the last two years, job growth has increased in the manufacturing and distribution industries. The state government has offered tax credits and technical assistance to support job growth. As the New Mexico economy continues to surge, business owners are using small business loans for expansion.

     

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    Hospitality Financing New Mexico

    New Mexico is also reliant on the tourism and hospitality industry to contribute to its local economy. Tourism spending supports over 8% of all jobs in small business loans new mexico the state.Small businesses in New Mexico have been taking advantage of the tourism that the state sees every year. In 2016 alone, New Mexico had more than 35 million visitors that spent over $6 billion dollars. Businesses in the hospitality and tourism industry in New Mexico use small business loans. These businesses use loans to bridge the financial gap during slow months and to prepare for the busier months.

    SMB Compass has loan programs in New Mexico staring from just $25,000. SMB compass specializes throughout New Mexico in equipment financing, SBA loans, asset-based loans, bridge loans, invoice factoring, and business lines of credit. Schedule a call with a Lending Advisor today to learn more about the business loan options in New Mexico.

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    Small Business Loans in New Mexico

    Business Line of Credit

    A business line of credit is a great option for business owners looking for flexibility. Eligible businesses are given a predetermined credit limit, allowing you to withdraw funds from it as needed. With a business line of credit, you only need to repay the money you've drawn, plus the interest. It's a revolving line, so you can repeatedly access the funds as long as you don't exceed the limit.

    SBA Loans

    The Small Business Administration (SBA) created SBA loans to provide low-interest rates, extended repayment terms, and high loan amounts to small businesses that would otherwise disqualify from bank-rate financing. The SBA guarantees up to 85% of the loan, meaning that the Small Business Administration will pay the lender the guarantee if a default happens. An SBA loan is one of the most highly-coveted loan programs among small businesses.

    Asset-Based Lending

    Asset-based loans rely on a business' valuable assets rather than cash flow and credit, such as inventory, invoices, real estate, equipment and machinery, or purchase orders. This loan program is easier to qualify for since the collateral offered mitigates the risk for lending institutions. The repayment terms, interest rates, and loan amount depend on the value of your assets. But remember that the more liquid your assets are, the better it is for lenders.

    Invoice Financing

    Invoice financing lets you sell unpaid invoices to a third-party company for upfront cash. Lenders typically advance up to 90% of the total invoice value and will send the remaining percentage once your customers pay them, minus a small fee. With invoice financing, you don't have to wait months for your customers to pay. You'll receive payment immediately.

    Business Term Loan

    The structure of a business term loan is what usually comes to mind when you think of a loan. Lenders give you a lump sum that's payable in regular installments within a set period of time. Depending on the lender's discretion, the payments can be weekly, bimonthly, or monthly.

    Equipment Financing

    You can apply for equipment financing if your business needs company vehicles, heavy equipment, or even kitchen appliances. This funding option gives you the loan funds required to purchase or lease equipment and machinery. The equipment is collateral for the loan, so you don't have to pledge a personal guarantee. However, the lender may repossess the equipment in case of a default.

    Purchase Order Financing

    Purchase order financing gives you the business resources needed to fulfill large purchase orders from your customers. The PO financing company usually covers 100% of the purchase order cost. Once approved, they will pay your suppliers so they can manufacture and deliver the goods to your customers. The PO financing company will receive your customer's payment, subtracting the loan repayment along with it, before giving you your profit.

    How to Use a Small Business Loan New Mexico

    • Acquire a small business
    • Refinance existing loans and credit card debt
    • Purchase or refinance commercial real estate
    • Get additional capital
    • Buy or lease machinery and equipment
    • Purchase inventory and raw materials
    • Improve cash flow
    • Purchase real estate
    • Marketing and advertising campaigns
    • Upgrade technology and business software
    • Hire new employees
    • Finance renovations
    • Day-to-day operating expenses

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    Frequently Asked Questions About Small Business Loans New Mexico

    What credit score is needed for an SBA loan?

    Generally, you'll need a minimum credit score of 640, but having a score of 680 or higher can increase your chances of approval.

    What are the 4 eligibility requirements for an SBA loan?

    The sba.gov lists the following requirements for an SBA 7(a) loan:

    To be eligible, small businesses must:

    • Operate for profit

    • Be engaged in, or propose to do business in, the U.S. or its territories

    • Have reasonable owner equity to invest

    • Use alternative financial resources, including personal assets, before seeking financial assistance

    REMEMBER: These are just the basic criteria and the lenders you'll work with may have additional requirements.

    How can a small business get a loan for a beginner?

    When getting a loan as a beginner, you'll need to prepare your personal credit score, be at least two years in business, bank statements, and collateral. It's easier to qualify if you apply from an online lender because they have more lenient requirements.

    If you need assistance, SMB Compass can connect you with lenders who can give you the best rates suitable for your business. Filling this out is free and won't hurt your credit score.