Business Financing Options

Southern Capital Funding Network provides business owners with multiple financing options to use the assets of their business (rather than cash flow) as collateral. Established businesses can use Purchase Orders, Receivables, Service Contracts, Financial Contracts, Inventory (in tandem with AR line) and business equipment to acquire working capital.

In today’s current economic environment, it’s become very difficult for many local small businesses to find the working capital they need from their local banks and other traditional lenders. Southern Capital Funding Network has access alternative financing opportunities for small businesses in the form of working capital loans. Local banks and credit unions will continue to serve a specific segment of the market, but our alternative financing options give us the ability to provide more flexible lending options for the small business owner.

Our main sources of working capital include:

Lines of Credit - Loans amounts from $25,000 to $750,000, with credit scores as low as 600. Minimum 6 months in business, and $10,000 per month revenue.

Term Loans – Loan amounts from $100,000 to $3 million, with credit scores as low as 650. Minimum 6 months in business, and $25,000 per month revenue. 

Short-term advances up to $50k – short-term working capital loans up to $50,000+ with credit scores as low as 500. Minimum 6 months in business, and $10,000 per month revenue. 

Southern Capital Funding Network only works with SBA "preferred lenders" which shortens the time it takes the loan to get approved and does not have to be submitted to the SBA for final approval.  The SBA's loan programs are designed specifically for small business owners who don't have access to other reasonably termed financing and may not qualify for traditional financing. 

7(a) loan programs:  This is the SBA's primary program to help startups and existing small businesses obtain financing. 7(a) loans are the most basic and most commonly used type of loan, as well as the most flexible. The money can be used for a variety of general business purposes, including working capital, machinery and equipment, furniture and fixtures, purchasing or renovating land and buildings, leasehold improvements and debt refinancing. Loan maturity is up to 10 years for working capital and generally up to 25 years for fixed assets. SBA Express Loan and SBA Export Express loans come with a 36-hour approval turnaround time. 

CDC/504 loan program: This program provides businesses with long-term, fixed-rate financing for major assets, such as land and buildings. The loans are typically structured with the SBA providing 40 percent of the total project costs, a participating lender covering up to 50 percent and the borrower putting up the remaining 10 percent. Funds from a 504 loan can be used to purchase existing buildings, land or machinery, and to construct or renovate facilities. These loans cannot be used for working capital or inventory. Under the 504 programs, a business qualifies if it has a tangible net worth of less than $15 million and an average net income of $5 million or less after federal income taxes for the two years before application. The maximum amount of a 504 loan is $5 million.

Microloan program: This program offers very small loans to startups, or newly established or growing small businesses. The loans can be used for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery or equipment. The SBA makes funds available to specially designated intermediary lenders, which are nonprofit organizations with experience in lending and technical assistance. Those intermediaries then make loans of up to $50,000, with the average loan being about $13,000. The loan cannot be used to pay existing debts or to purchase real estate.

Disaster loans: The SBA offers this option to businesses that have been affected by a declared disaster. These low-interest loans can be used to repair or replace damaged real estate, personal property, machinery, equipment, inventory and business assets.

SBA Community Advantage Loans:  target businesses that operate in underserved communities. The program encourages local, mission-based lenders such as nonprofit organizations to make loans of up to $250,000 by guaranteeing up to 85 percent of the loan amount. 

Veteran’s Advantage. SBA loans specifically for veteran-owned businesses of up to $350,000. These loans come with reduced fees on financing. up to $350,000 in capital.