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Professional Services Business Loan 

Professional Service Business Loans for Your Business

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How Professional Service Business Loans Can Help

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.

SMB Compass wants nothing more than to see your business succeed with the help of our professional service loans. Our expert staff will walk you through the application process and pick the perfect funding option for you. We have funded numerous professional service businesses in the United States, including:

  • Accounting
  • Law
  • Marketing and Advertising
  • Insurance

Uses of a Professional Services Business Loan

A business loan is an integral part of running a professional service business. With a reputable partner like SMB Compass, your business has a higher chance of success. You can use the funds from a professional service business loan to maintain and improve business operations. Here are four ways to use a 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 professional services business loan will 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.

Top 4 Professional Service Business Loans

The lending experts of SMB Compass knows that one size does not fit all when it comes to professional service business loans. We make sure that our services are tailored to your business’ needs, preferences, and goals. Here are four of the most common professional service business loans:

Professional Service Loans

SBA 7(a) Loans

SBA 7(a) loans are specifically created for small businesses looking to obtain long-term funding. 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 depending on the type of collateral available. SMB Compass accepts the following collateral for asset-based loans:

  • Accounts Receivable
  • Inventory
  • Equipment
  • Intellectual Property
  • Real Estate
  • Marketable Securities
Professional Services Business Loan
Asset-Based Loans

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 credit worthiness and your business operations. With this type of loan, you only have to repay the money you’ve withdrawn, not the total credit limit.

medical business loans

Top 4 Professional Service Business Loans

The lending experts of SMB Compass knows that one size does not fit all when it comes to professional service business loans. We make sure that our services are tailored to your business’ needs, preferences, and goals. Here are four of the most common professional service business loans:

Professional Service Loans

SBA 7(a) Loans

SBA 7(a) loans are specifically created for small businesses looking to obtain long-term funding. 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.

Professional Services Business 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 depending on the type of collateral available. SMB Compass accepts the following collateral for asset-based loans:

  • Accounts Receivable
  • Inventory
  • Equipment
  • Intellectual Property
  • Real Estate
  • Marketable Securities
Asset-Based Loans

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.

medical business loans

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 credit worthiness and your business operations. With this type of loan, you only have to repay the money you’ve withdrawn, not the total credit limit.