2 To 3 Years Real Projections.
It's important to provide realistic and well-supported projections to the lender to demonstrate that your business has a viable plan for growth and repayment of the loan. When applying for an SBA 7(a) loan, you'll typically be required to provide several types of projections to help the lender assess the financial viability of your business.
These projections may include: Profit and Loss, Cash Flow, Balance Sheet, and Sales Projections
Profit and loss projections: These projections provide a forecast of your business's income and expenses over a specific period, typically 12-24 months. They can help the lender assess the expected profitability of your business and its ability to generate sufficient cash flow to repay the loan.
Cash flow projections: Cash flow projections show the expected inflows and outflows of cash in your business over a specific period. They provide insight into your business's ability to meet its financial obligations, such as loan payments, and ensure that it has sufficient working capital to operate effectively.
Balance sheet projections: Balance sheet projections provide a snapshot of your business's financial position at a specific point in time. They show your business's assets, liabilities, and equity, which can help the lender assess its overall financial health and capacity to repay the loan.
Sales projections: Sales projections show the expected revenue from your business's products or services over a specific period. They can help the lender assess the growth potential of your business and its ability to generate sufficient revenue to repay the loan.
SBA 7(a) Loan
Use of Funds: Working capital, debt restructure, business acquisitions, franchising, equipment, startup, payroll, marketing, expansion, lease hold improvements, commercial property, and the list goes on...
Terms: Up to 10 Years
SBA 504 Loan
Use of Funds: Commercial property for owner use. Must be 51% owner occupied. Not for real estate investing. Can include land, construction, furniture, fixtures, lease improvements.
Terms: Up to 25 Years
SBA Express Loan
Use of Funds: All the same use as the SBA 7(a) loan. It is an SBA 7(a) loan but only up to $500,000 and fast tracked. Very few banks participate and they create unique programs around it. Minimum 1 to 2 years in business.
Terms: Up to 10 Years