Financing and Capital Markets

Get Financing that Fits Your Business

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The best capital sources are the ones that fit your business, its risk profile and its future capital needs. When it comes time to look for financing for your business, consider all your options for finding the one that fits you best.

Alternative Lending Programs

Small Business Administration (SBA) loans

  • Issued by banks and non-bank institutions, i.e., peer lending groups and community-based organizations
  • Typically, available to companies that don’t qualify for traditional lending, and offer longer terms for repayment and preferred rates
  • Variety of terms, amounts and uses, all with flexible terms
  • Clear documentation, including a business plan, is needed
  • Working with a motivated and experienced banker who has small business expertise is best for securing favorable terms and rates

Supplier Financing

Vendor financing

  • Attractive, low-cost alternative for established businesses with strong suppliers and significant purchasing power
  • Can provide flexible payment terms, discounts for early payment and financing options to free up working capital
  • Purchasing scale and vendor credit may limit the total impact on working capital, but low cost makes this option appealing for many companies

Co-investing

Owner equity requirement in order to close a deal

  • Existing cash, retained earnings, stock, real estate or any other substantive item of value agreed to by you and your bankers can be considered equity
  • Traditional bank loans typically require a 25 to 30 percent cash down payment, while SBA guaranteed loans can have a down payment as low as 10 percent.
  • Lenders want to feel the owner is sharing the risk with them with a substantial stake in the financing. They may be more willing to offer more favorable terms and rates

Collateral

Lender protection against default

  • A highly liquid or saleable asset such as cash, investments, equipment or a vehicle that is required by traditional bank loans in case of loan default
  • The use of collateral can improve the terms and rates of the loan, because the bank is essentially receiving a backup for re-payment
  • Often offer lower interest rates than private lenders
  • Criteria for acceptance considers how the loan proceeds will encourage entrepreneurship, improve an area’s economy and/or quality of life
  • For example, financing programs run by the U.S. Department of Agriculture can offer very flexible rates and terms if your business fits the requirements

Government Programs

Loan offerings administered on the federal, state and/or county level

  • Often offer lower interest rates than private lenders
  • Criteria for acceptance considers how the loan proceeds will encourage entrepreneurship, improve an area’s economy and/or quality of life
  • For example, financing programs run by the U.S. Department of Agriculture can offer very flexible rates and terms if your business fits the requirements
  • Other types of government programs include disaster relief financing, loans for veterans and business/industrial financing

Find the funds to position your company for success

Talk to your SunTrust Relationship Manager for the financing you need to keep your business on the best path forward.

This content does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.

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