Subprime SBA loans are designed for non-conforming businesses. You can seek loans up to $0.5 million under this program without the need for collateral. Higher loans require collateral but can attract up to 150% LTV. The loan amount can be used towards various purposes including working capital, buying equipment, buying a business, or purchasing commercial real estate. The funds can also be used for refinancing debt or consolidating merchant cash advances by transforming to the affordable monthly payments.
If your business is finding it difficult to secure commercial financing, we can assist you through our vast network of lenders.
What is Subprime SBA Loan?
Subprime credit refers to a type of loan where the borrower poses a higher risk than most lenders are ready to take. There are no fixed criteria for a business to qualify for this type of loan. However, businesses or business owners with the following credit profiles can be ideal candidates for it:
- Credit scores less than 640
- Short business history
- Lacking collateral
- Missed lender payments
Subprime SBA loans have the following features that make them attractive:
- 10 years to 25 years of amortization
- Access to unrestricted working capital
- No prepay penalty options
- Make monthly payments
- Interest rates starting from 6.5%
- Minimum 1 year of business presence
- Most industries are accepted
The loan amount can also be used for financing construction.
We at Mid-Atlantic Commercial Capital, LLC offer commercial loans through our network of lenders to different types of businesses. Our subprime SBA loan solutions are designed for businesses with lower credit scores, limited documentation, and zero collateral. However, it is required to have an active business bank account.
Types of Subprime Commercial Loans
There are different types of subprime SBA loans, including the following:
Private Business Loans
These subprime SBA loans are offered by non-bank lenders. This includes:
- Private business lenders
- Institutional investors
- Online lenders
They may not even require profitability.
This type of loan monetizes the assets on your balance sheet. Here, you can pledge the following assets as collateral:
- Commercial/personal real estate
- Unpaid invoices
- Accounts receivables
- Business inventory
This option allows you to access financing that may not be possible otherwise.
As the name suggests, the invoice is used as the collateral for the funds. Here, a factory company will provide your business with a significant percentage of your invoice value. It will charge you a fee and after the invoice is paid, the remaining amount is forwarded to you.
Are you seeking working capital or invest in a business or equipment? You may be looking to purchase commercial property or refinance your existing debt. Whatever your goals for your business, we can help you find a commercial loan that ideally addresses all your needs. We have years of experience in this industry, a vast network of lenders, and a large portfolio of loan programs to choose from. Feel free to call us today at (540) 825-9800 or write to us at firstname.lastname@example.org for more information on subprime SBA loans.