Private Business Loans for Florida Entrepreneurs
Private Business Loans
Florida is a great place to own your own business, but every day in Florida, otherwise well-prepared entrepreneurs and innovators walk into a commercial bank with exciting business ideas but don’t get the money they need to grow. They’ve taken the time to prepare and present a thoroughly developed business plan but, because the bank doesn’t understand the business model or market sector, the business leader walks out without a loan. Private business loans are the answer to this dilemma.
Private Business Loans Fuel Small to Mid-Sized Businesses
Financial institutions probably won’t loan money to a small to medium-sized business (SME) unless it presents sufficient capital to secure the loan. Of course, that’s a bit of the chick versus egg scenario. The high-growth business needs capital and the highest rate of return is achieved by investing in the business. Private business loan types vary, but some of the benefits include easy applications, flexible payment terms, and rapid funding.
Business lending isn’t one-size-fits-all. Fortunately, many SMEs can get the financing they need with small business financing from a private lender like Miami, Florida-based GoKapital.
Private Lenders Fund Growing Businesses
Although venture capitalists and angel investors are putting more capital into an array of startups these days, some entrepreneurs don’t want to give up a significant percentage of the business to the financiers. The venture capitalist might want a seat on the board of directors or wield day-to-day control.
In that case, a private lender is a financial alternative that’s definitely worth investigating.
Private lenders need the same information as the commercial bank to consider approving a private business loan. It conducts due diligence to arrive at a positive funding decision. The difference between the conventional lender and a private funder is essential: the alternative private lender wants to fund a great business idea—with a thorough business plan—at the right time.
If that sounds like your business, present an airtight plan, including realistic forecasts and contingent earnings scenarios, supported by professionally experienced persons with a stake in the business. GoKapital’s quick business financing team funds invoice factoring, business loans for women, unsecured business loan, merchant cash advance, equipment financing, commercial real estate, residential property loans, and business loan services can help your business grow.
Private Lenders and Specific Market Segments
Many private lenders know certain markets very well. They’re specialists with insight about certain markets because they assess both opportunity and risk for a specific business type or market segment.
That’s great news for businesses. A private lender funds some projects that a traditional banker rejects because it’s possible to structure a more flexible loan repayment schedule. In addition, the private lender’s insight may be an additional resource to the high growth business. It may provide funding to rescue a business or in an emergency situation.
For instance, a private lender may have deep insight into the automotive marketplace. The lender may fund auto dealers, transport or trucking businesses, or manufacturing vendors for the auto sector.
Another private lender might have experience in medicine and health care. The lender may provide capital to professional medical practice because 1) there’s a shortage of doctors in Florida; and 2) physicians are usually responsible borrowers.
Yet another private lender with deep traction in the winery business might have wineries or craft beer businesses as clients. These companies have a high percentage of capital in assets (i.e., they are high asset-based, and that offers greater security to the lender.
If you need a private business loan in Florida, GoKapital offers:
- Quick commercial loans Jacksonville
- Quick commercial loans Tampa
- Quick commercial loans Orlando
- Quick commercial loans Brandon
- Quick commercial loans Tallahassee
- Quick commercial loans Clearwater
- Quick commercial loans Fort Lauderdale
- Quick commercial loans Cape Coral
- Quick commercial loans West Palm Beach
- Quick commercial loans Miami Beach
- Quick commercial loans Boca Raton
How Does a Private Lender Decide to Make a Private Business Loan?
Private lenders perform due diligence about the company. It carefully reviews the business’ cash flows, revenues, debt-equity, payment history, and business plan/projections.
Long-term, successful private lenders understand that some businesses perform well while others fail. If the private lender has deep experience in one or more market sectors, it’s often said that the business learns more from failures than winners. Because of this, the private lender continues to refine its evaluation methods to select those businesses with the greatest probability of sustainable long-term profits.
Some alternative lenders are difficult to find, however. That’s one of the reasons a growing SME might use a capital broker to begin the search for debt financing. That can be an advantage to the private lender.
The highly accessible capital broker reviews literally thousands of relationships with investors and lenders. Because the capital broker is developing relationships for the future, he or she is likely to refer only those private loan proposals with the likelihood of approval. It’s important for prospective borrowers to get the capital broker excited by the project so that the broker conveys enthusiasm to an array of lenders or direct investors.
That said, not all capital brokers are created equal. The prospective borrower must do some homework. Carefully check references and privacy policies. Ask the capital broker at the start about the cost of money, including any fees or charges the broker adds to the agreement.
The good news for Florida companies is simple. It’s possible to “go direct” to the lender. Contact GoKapital if your Florida business needs a private debt funding now.
What Documents Are Needed to Get a Private Business Loan?
Now, let’s talk about you. Consider the purpose of the private business loan. Is it needed for operating capital for a start-up or is it to finance a growing company’s expansion?
The entrepreneur or innovator can increase his or her chances of getting a business loan by arriving prepared to meet the lender’s expectations. To understand why, put yourself in the lender’s seat for a moment.
If you, the entrepreneur, was asked by someone you know to underwrite a small business loan, you’d need to know why the money was necessary as well as the chances that the business would repay on time and in full.
That’s why one of the best ways to get a business loan involves preparation. Gather all the documents needed to persuade the lender to approve the business loan. Show that you’re a good risk. Provide the following documents to GoKapital for a private business loan application:
- GoKapital Business Loans application
- Bank Statements: 4 months of business or personal statements
- Driver’s license
- Tax returns: your most recent business or personal returns
- Detailed list of available collateral: such as equipment, machinery, or vehicle
- Proof of income: receipts, invoices, pay stubs, etc.
- Images of the place of business: both interior and exterior
Before you apply, consider GoKapital’s requirements:
- The business must have a minimum of six months’ activity.
- Your business must have a monthly income of at least $5,000, as reflected in business or personal bank statements.
- Ideally, you offer collateral worth at least $5,000 (vehicles, equipment, machinery, etc.)
Preparation and proof of successful business operations are the keys to getting approved for a private business loan.