Top Five Business Financing Options in South Florida

Sunbelt Business Brokers know that when considering your financing options to buy a business, it is important to consider both your short- and long-term needs. Failing to consider long-term financing needs may impact the viability of future business plans. Sunbelt Business Brokers of West Palm Beach can help you identify possible financing sources and provide options that are suitable for the long-term success of your business.

Sunbelt Of West Palm Beach shares our insights on the top five business financing options in South Florida, from traditional bank loans to alternative financing options.

Top 5 Business Financing Options:

• SBA Financing

  Bank financing for Main Street businesses typically is through SBA loans, which has become increasingly popular in recent years. The 7a SBA program, most commonly used to purchase a business or expand an existing business, provides financing for business purchases or acquisitions, and it allows lenders to offer more favorable terms. Loans are originated and approved by SBA participating lenders, and in turn, the SBA agrees to guarantee some percentage of the principal balance.

• 401(k) Business Financing

  Using retirement assets to fund your business has some major advantages when compared to loans, including no penalties or taxable distributions, no interest payments, no monthly fees, no collateral needed and protection of personal assets.

• Seller Financing

  Seller financing is considered to be the largest and least risky way to buy a business in South Florida. Seller financing is when a seller agrees to finance a majority of the price, making the buyer more confident in the purchase decision, as well as providing regular wages to cover start-up expenses.

• Venture Capital Financing

  The EFI-sponsored Florida Opportunity Fund provides venture capital for start-up and early-stage businesses. State Venture Capital Programs usually take one of the following two forms: a state-run venture capital fund investing directly in businesses; or a fund investing in other venture capital funds, which then invest in individual businesses. Many factors are taken into Florida’s decision on which form to choose.

• Online Lending

  Online lending services have become a popular alternative to traditional business loans, having the advantage of speed on their side. Lender services such as OnDeck and Kabbage allow borrowers to complete applications in under an hour and are able to make a decision and issue funds within days. Former U.S. Treasury Secretary Larry Summers said he expects online lenders to eventually reach more than 70 percent of small businesses.

Upon deciding the best business financing options in South Florida to suit your specific needs, Sunbelt Business Brokers of West Palm Beach will ensure the issues and requirements of the financing request processes are addressed appropriately. Your Sunbelt Of West Palm Beach business broker will provide assistance with the financing process and negotiations, and throughout the process will work to make sure all parties are working towards the same timelines and goals.

With 30 years of experience, Sunbelt Business Brokers has developed strong relationships with banks, private equity firms, venture capital firms and other specialized lenders. Contact Sunbelt Business Brokers of West Palm Beach today to discuss your business financing options in order to buy a business in South Florida!