As with any other type of loan, you will need to complete an application form and have your financial and legal documentation at hand. This could include your business and personal tax returns, personal financial statements, and business license and permits, among others. Term loans are disbursed as lump sums and paid over a predetermined period, also known as term. Term loans can have fixed or variable interest rates and repayment terms of up to five years.

Small Business Customer Financing

Customers shopping for expensive products or services may seek out a company that offers contractor financing. By offering contractor financing your company can become a more valuable option. Close more sales, provide affordable financing options to your customers, and no fees for you.

Other Government Funding Options for Your Business

Since 2006, Driven has empowered more than 17,000 Canadian businesses to survive, thrive, and grow to their full potential. The SBA offers online courses related to business financing, general information on loans and grants, and a list of approved lenders. The federal 504 loan program through the Small Business Administration is a versatile option for small businesses.

  • These firms invest in phases, or “rounds,” putting hundreds of thousands, or even millions, into a company they believe has the potential to make them a lot of money.
  • For more tips on how to fund and grow your small business, check out the Viably blog.
  • In conclusion, Acorn Finance can help contractors offer financing for customers.
  • Banks were the primary lender for 43% of equipment financing deals.

You pay a fee for this service, interest on the overdraft amount, and you are required to repay the loan under the terms and conditions stipulated in the agreement. Financing equipment will cost you more than paying cash outright. The lender may impose a lien upon some of your other business assets or require a personal guarantee.