Professional Service Business Loan 

Professional Service Business Loans Can Help Your Business

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How a Professional Service Business Loan Can Help Your Business

Every company has to start somewhere. Some of the most successful businesses in the world began out of their home, or in a small office. But as a business grows and expands, so does the need for extra space and for working capital to finance daily operations.

Your service business needs extra working capital to meet the growing demands for success. A professional service business loan can help you cover the costs of hiring new employees, renovating your office spaces, moving into an additional or a larger space, or launching promotional campaigns, just to list a few.

There are many ways you can utilize a service business loan. Whether you’re ready to expand your business, buy new tools, or upgrade your marketing efforts, a professional service business loan through the experts at SMB Compass will help you reach each and every milestone.

At SMB Compass, we understand the challenges of running a professional service business. That is why we’re committed to working with you through the good times and the bad to make sure you have access to the capital you need. At SMB Compass we will work to find the right loan product to fit your needs.

SMB Compass has funded hundreds of professional service businesses, belonging to various industries all over the United States, including:

  • Accounting
  • Law
  • Marketing and Advertising
  • Insurance

Ways to Use a Professional Services Business Loan

Running a business is hard, but if you have a reputable funding partner that believes in your potential, you will have a shot at success. Just like any other business, service businesses can use the help of extra working capital in order to maintain business operations.

Here are some of the ways you can use the funds from a professional service business loan:

Supplies and Inventory

Businesses need a constant supply of materials and inventory for daily business operations. Without adequate supply, you won’t be able to offer the quality of service your customers expect from you. If you don’t have enough inventory, you’re compromising additional revenue.

Advertising and Marketing Campaigns

Customers are the backbone of your business. While you may already have loyal clients, a successful and growing business always strives to gain more customers. The right advertising and marketing campaigns can help bring more people in the door or onto your websites, which means more business opportunities.

Cashflow Problems

There are certain periods when business is slower than usual. Off-seasons are a reality for all businesses. You still have to regularly pay for business expenses, despite the occasional lack of cash flow.

Fortunately, the right business loan will provide you with the funds you need to fill in cash flow gaps. You can use these funds to meet payroll, pay for daily operating expenses, or add to your working capital when your business is in a seasonal slump.

Business Expansion

When your business and customer base are growing, it might be time to consider expansion. Do you need more offices? Or perhaps need to purchase commercial real estate to open a new location? The thought of expanding your business is exciting, but it can also be financially draining. A professional service business loan can cover the costs incurred during expansion.

How Long Does Profession Business Loans Take?

SMB Compass offers quick approval for your professional service business loan. Our company has provided more than $160,000,000 to small businesses all over the country. We will work with you to tailor your loan plan to your specific needs to make sure you get the best option for you.

We offer fast and flexible funding. In four easy steps, your business will receive the funding you need:


Apply for a service business loan online

Our simple online application lets you fill out and submit your request for funding. The process is pretty simple, but if you need help along the way, you can contact us via phone, chat, or email.


A friendly 5 to 10-minute introduction

The next step is an introductory conversation with one of our account executives. We will go over your needs and begin to discuss the different options available.


Documentation and underwriting

Once you make a decision and reach an agreement, we’ll provide closing documents to review the terms. We’ll also answer any final questions you might have.

Approval and funding in less than 24 hours

When your loan has been approved, we immediately send the funds to your business bank account within 24 hours.

Best Types of Loan Programs for Professional Service Loans

SMB Compass offers different types of financing options for your professional service business needs. To ensure that your business gets nothing but the best, our trusted financial advisors will help you find the right loan based on your business’ specific needs and goals.

Here are the most common types of financing products for professional service businesses:

SBA 7(a) Loans

The Small Business Administration (SBA) created SBA loans for small businesses looking to obtain long-term financing. These loans work similarly to traditional loans. The only difference is that it’s easier for small businesses, professional services included, to qualify for an SBA loan, because the SBA guarantees up to 85% of the loan.

Asset-Based Loans

Another way to obtain affordable financing is to use your business’ assets as collateral. The most commonly used asset for a professional service business is their accounts receivable.

An asset-based loan can be structured similarly to a line of credit or a term loan. The terms and conditions set by the lender depend on the type of collateral available. Most lenders consider the following as collateral for an asset-based loan:

  • Accounts Receivable
  • Inventory
  • Equipment
  • Intellectual Property
  • Real Estate
  • Marketable Securities

Invoice Factoring

Invoice factoring is a type of financing that involves selling your pending invoices or accounts receivables to factoring companies or asset-based lenders. Your business typically receives 90% of the total value of the invoices immediately, then, after your customers pay the invoices to the factoring company, you receive the rest, minus a fee to the factoring company.

Business Line of Credit

Similar to a credit card, a line of credit provides funds to help businesses bridge gaps in revenue. Lenders determine the interest rate and the credit limit of your loan, based on your creditworthiness and your business operations. The benefit of a line of credit is that you’ll only have to pay for the money you’ve withdrawn, not the total credit limit. As you pay toward your amount owed, your amount available will go back up.

Best Types of Loan Programs for Hotel Business Loans

SMB Compass offers different types of financing options for your hotel business needs. We have financial experts on hand, ready to help answer any question to make sure you find a loan product that fits your needs.

Here are the most common types of financing products for hotels:

SBA 7(a) Loans

The Small Business Administration (SBA) gives incentive for lenders to offer loans to small businesses by guaranteeing a percentage of the funds immediately. This makes SBA loans ideal for small businesses.

The SBA 7(a) loan is also ideal for hotel financing because it has low-interest rates, long repayment terms (10 to 25 years), and you can borrow up to $5,000,000. The SBA 7(a) loan is flexible, and you can use it to fund any hotel financing need, such as purchasing commercial real estate, construction, renovations, equipment purchasing, additional working capital, and more.

Asset-Based Loans

If your business doesn’t have enough revenue or cash flow to qualify for other forms of business financing, you might want to look into asset-based loans. Asset-based loans are ideal for businesses with a high value in assets or on their balance sheets.

Businesses can use their assets as collateral to secure financing. Most lenders consider the following as collateral for an asset-based loan:

  • Accounts Receivable
  • Inventory
  • Equipment
  • Intellectual Property
  • Real Estate
  • Marketable Securities

Merchant Cash Advance

A merchant cash advance is a good option if your hotel business needs working capital ASAP, or if you don’t have good credit. Technically, a merchant cash advance is not a loan; as the name suggests, it’s more of a cash advance.

With a merchant cash advance, lenders provide you with the funds you need in exchange for a percentage of your daily credit/debit card transactions. While a merchant cash advance isn’t a loan, it still offers similar benefits. It also has a higher approval rate than other traditional loan programs.

Equipment Financing

Buying new equipment for your hotel is expensive. Equipment financing provides you with the money you need to purchase new beds, washers and dryers, vehicles, or any other equipment your hotel needs. Typically there are two equipment financing options: equipment leasing and equipment loans.