Small Business Loans Versus Mid-Sized Business Loans

There’s a large variety of financing options for Boca Raton business owners, each with its own benefits and drawbacks. However, the size and age of the business can greatly limit those prospects. That’s why it’s best to turn to the most reputable business lenders for inventory and purchase order financing needs: Ace Biz Funding.

What are the difference in chances for small businesses and larger businesses to obtain loans?

It’s important to understand the different in small business loans and mid-large sized business loans. Larger businesses have more access to financing than smaller businesses for several reasons. For starters, small businesses don’t have the number of assets that larger businesses possess. This is important in the eyes of banks and small business lenders when they are considering loan applications. Business lenders want to ensure that they receive timely payments on loans and small businesses present more of a risk factor when it comes to payments. The assets that larger businesses hold can be used as collateral or sold to pay back loans, giving them more of an advantage over smaller businesses.

Additionally, larger companies possess a longer business history with established sales. This is a major advantage that they have over small businesses. Every small business owner is going to see struggles with inventory and purchase order financing, and must figure out how to obtain the capital needed to keep their business moving forward. Larger business owners have figured this out already, making them more investable in the eyes of lending institutions.

Reputations also play a strong factor in business financing. For instance, a Boca Raton lending institution may review an application from a small business owner whose company has only been operating for a year and a half. Although they’ve only been in business for a short period of time, their brand name has managed to spread among consumers in a manner that competes with established companies of over 20 years. Due to that brand recognition, they are more likely to be approved for a business loan.