What types of businesses qualify for small business loans and what are typical loan terms?

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Any type of business could potentially qualify for a business loan, depending on a few factors of course; borrowers history, industry, time in business, cash flow ratios, debt ratios, and credit. The main industries most “non-bank” or alternative lenders look for, would be: auto shop, liquor store, manufacturing, medical & dental, restaurant, retail, salon & spa, wholesalers & distributors. Types and sources of business loans may vary wildly. For example, the terms can vary from 30 days to 30 years, and the amount borrowed could range from a few thousand to many millions. Businesses use this money to ensure access to working capital when they need to hire employees, purchase inventory, or make other investments that support business growth.

But since you asked, here’s short list of “low risk” small business that are good candidates for small business financing:

  • Animal training, grooming, boarding
  • Landscape services
  • Art, picture frames & decorations retail
  • Lock & key services
  • Beach & water sports equipment rental & services
  • Luggage & leather goods
  • Beverage stores, non-alcoholic - retail
  • Meat & fish markets - retail
  • Bicycle & motorcycle rental services
  • Medical equipment repair
  • Boiler & heating repair
  • Music & drama schools
  • Bridal shops - retail
  • Nurseries & garden centers - retail
  • Candy & chocolates - retail
  • Nutrition specialists
  • Chiropractors Optical goods - retail
  • Commercial photography
  • Optometrists
  • Computer maintenance & repair
  • Packaging & labeling services
  • Personal development schools
  • Pets & pet supplies - retail
  • Customized clothing & apparel - retail
  • Psychiatrists & psychoanalysts
  • Dairy products - retail
  • Psychologists, psychotherapists & hypnotists
  • Dance studios, schools & halls
  • Shoe repair, shoeshine parlors
  • Dentists (licensed) Shoes - retail
  • Door & Window Products - retail
  • Spas
  • Drugstores
  • Specialist physicians
  • Dry cleaning
  • Specialty hospitals
  • Electrical repair (not contractor)
  • Speech specialists
  • Florist - retail
  • Sporting goods - retail
  • Formal wear - retail
  • Swimming pools, hot tubs & sauna - retail
  • Gifts & novelties - retail
  • Tourist attractions, amusement park concessions & rides
  • Gourmet food stores - retail (not deli)
  • Veterinary Services
  • Hardware - retail
  • Waste cleaning services
  • Household appliance repair
  • Welding repair
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“Higher risk” industries would be:

  • Home Based Businesses
  • Sole Proprietorship
  • Construction & Contractors
  • Bail Bonds
  • Rental or Sales Agencies
  • Collectibles & Memorabilia
  • Computer Hardware Sales, Service and Repair
  • Educational Materials, Seminars & Self Help
  • Adult Entertainment
  • Internet Businesses
  • Lead Lists
  • MLM - Multi Level Marketing
  • Modeling Agencies & Talent Agencies
  • Moving Companies
  • Online Malls
  • Online or Mail Order Event Ticket Sales
  • PI's - Private Investigators
  • Public Relations Services
  • Real Estate Related Industries
  • Security and Surveillance Equipment
  • Travel Agencies
  • Web Advertising

The Nation's Go-To Funding Company for High Risk Small Business Loans

Nobody faces more challenges on a daily basis than business owners. In fact, for owners of small and medium sized businesses, handling many different challenges is the source of great satisfaction and some headaches, too.

But when business owners are asked to name their greatest challenge, one thing tends to top the list most often; accessing working capital to manage cash flow. In other words, making sure there is enough capital flowing in to cover everything that needs to flow out.

There are a variety of reasons why cash flow can be a steep challenge for small business owners. Needs can precede revenue. Or perhaps you’re getting paid more slowly than you’d like. Or, if you’re a seasonal business, a garden center, for example, or specialize in hardy, cold weather clothing and you have peak sales months which require that revenue to stretch across your off-season months.

Often, business owners can optimize cash flow by negotiating longer payment cycles with creditors and encouraging debtors to pay in shorter time periods. But there are other solutions that can help you sail through the lean months with plenty of working capital on hand.

I hope you found this useful. If you would like to read more on this topic, I would suggest the following link: 3 Ways to Access Working Capital Fast

As always, we’re here to help