Types of Funding
At Business Development Company, we understand that every business is unique, which is why we offer customized solutions tailored to your specific needs.
Whether you’re looking to build, buy or expand your business, we work with you to create a funding strategy to support your goals.
Term loans are lump sums that borrowers typically use to finance an immediate need.
Term loans are ideal for:
- Financing equipment purchases
- Providing growth capital
- Restructuring debt (for example, paying down a line of credit)
- Making acquisitions
Term loans are typically repaid monthly over a period of 5 to 7 years using the business’s operating cash flow. Interest rates on term loans can be fixed or floating.
An example of The Business Development Company’s flexibility is our ability to provide initial interest-only periods that give businesses that are in a growth stage the time they need to build momentum before beginning repayment of the loan principal.
Additionally, our tiered loan options allow for Term Loan funding to be provided in stages to support immediate needs and then provide additional funds in the future once established targets are met.
As an approved SBA 7a and Express lender, we offer Small Business Administration loans which help reduce a loan request’s risk profile because 50% to 75% of the loan amount is guaranteed by the U.S. government. We can help determine if these loans are a good fit for your business and guide you through the application process.
Lines of Credit
A line of credit is a revolving credit facility (this means borrowers can repeatedly borrow and repay the credit). A line of credit makes funds available for short-term working capital needs, such as timing of receivables collections, inventory purchases, and vendor payments.
Lines of credit are ideal for growing, seasonal, and cyclical businesses that experience sporadic cash flow. In most cases, the availability and amount of a line of credit will be based on account receivables and inventory.
Are you looking for capital right away?
We understand the need for speed when it comes to financing your business.