Commercial financing types are loans like invoice factoring, purchase order advances, credit card receipt advances, secured working capital credit lines, inventory financing, franchise financing, and import/export letters of credit.
To get approved for commercial financing, it is typically a requirement to have income in place, good underlying asset, and a few years of experience. For example, a commercial finance lender will look much harder at the credit worthiness of the client for invoiced accounts receivable than the lender would look at the borrower. For that purchase order you want to finance, a commercial finance loan will require that the company issuing the purchase order has good credit.
If a commercial finance lender is going to approve your business for a secured line of credit, they will want to know that the assets liquidation value is enough to pay back the loan. So if they have to sell your crane or backhoe, they want to be sure they can get paid back.
If you are thinking about getting a commercial loan, come in and talk to one of our advisors today or contact our office to get more infromation.