As the owner of a small business, it’s important to know that sometimes cash flow can be off and financial issues arise. A piece of equipment may have broken down, a leak in your office has caused extensive damage, or a busy month has depleted your inventory. If your small business is in need of additional funds, whether for new equipment, an expansion or more inventory, there are many different types of loans available that can help. Below are three types of alternative financing that can help keep your small business afloat.
Commercial Real Estate Loans: These loans are used to purchase or refinance commercial, industrial or investment property. They are typically $25,000 to $7,500,000 per transaction with terms up to 15 years. A commercial real estate loan has up to 80 percent loan-to-value for owner or user properties and up to 75 percent loan-to-value for investment properties.
SBA Business Loans: Financial institutions can be approved for partnership with the Small Business Administration (SBA) to administer two specific types of loans, SBA 7 (A) and SBA504.
- – SBA7 (A): This product can be used for business start-ups, business expansions, business acquisitions, commercial real estate purchase, machinery and equipment purchase, working capital and debt refinance.
- – SBA504: This product provides a growing business with long-term financing for major fixed assets such as land and building purchase or expansion, or machinery and equipment purchase. A portion of the financing offers fixed rates up to 20 years.
Lines of Credit: Lines of credit are available for any general business purpose. They are usually for $50,000 to $500,000. The first UCC filing is together with a loan security agreement on accounts receivable, inventory, machinery, equipment, general intangibles, or any other available collateral that will fully secure the loan. Lines of credit are generally reviewed on an annual basis, and rest period requirements may vary.
Telhio Credit Union is fourth for overall banking institutions, a category that includes large national and international banking institutions, in SBA lending. To learn more about the small business loans available at Telhio and for more information about Telhio’s other financial services, contact our business services representative at 614-221-3233, option 6.
Telhio Credit Union is open to anyone who lives, works, worships or goes to school in Franklin, Fairfield and Delaware counties and the surrounding communities including Dublin, Johnstown, London, Orient, Pataskala and Reynoldsburg. Founded in 1934, originally as the credit union for the Columbus Telephone Co., Telhio is a not-for-profit financial cooperative where its members are also its owners. Driven by its philosophy that members come first, Telhio is committed to the highest standards of responsibility and conduct. Telhio offers a variety of innovative programs, services and products to support its members’ financial needs. Telhio offers six branching offices throughout central Ohio and nearly 4,000 shared branching locations nationwide. Additionally, Telhio credit union participates in the highest level of combined federal and private share savings insurance available, insuring deposit accounts up to $500,000.*
* Federally insured by NCUA. Additional coverage up to $250,000 provided by Excess Share Insurance Corporation, a licensed insurance company.