Top Uses for Professional Services Financing:
We understand the value in meeting your unique needs. At Clarify, we make financing easy, so you can focus on achieving your business objectives.
Businesses have wide-ranging equipment needs. A dentist may need X-Ray machinery, while an accountant may need to purchase special software for tax season. Some businesses need desks, printers, or computers for their office space. Loans can be used to purchase new and used equipment. That way, you can finance what you need, without using up all your cash reserves.
Many small businesses have been hard hit by COVID. Some have been forced to temporarily shut down, drastically impacting sales. Others have been dealing with inflated operation costs, purchasing Personal Protective Equipment (PPE) and related sanitation supplies to keep employees, patients, and customers safe. If you’ve experienced a hiccup in your business cycle due to Coronavirus, or are dealing with unexpected pandemic-related costs, financing can provide financial relief and bridge cash flow gaps.
Periods of growth are an exciting time for business owners. They can also be expensive. Funds can be used to acquire new practices, purchase commercial real-estate, on-board and train new staff members, place bulk inventory orders, and more. Having the resources necessary to scale company development is essential for long-term success.
Payroll and Staffing:
Many professionals secure financing to offset the cost of labor. Loans can be used for staffing purposes and making payroll. Securing financing helps companies to avoid depleting whatever financial resources they have available. During tough times, business funds can help companies to avoid layoffs and furloughs. In light of pandemic, the Payroll Protection Program is available to qualified Small Business owners.
Tax Bills and Tax Season:
Getting squared away with Uncle Sam can come at a high price. When money is tight, paying taxes can strain the company. Professionals have the option of using loans to cover a large tax bill. This gives professionals the benefit of repaying taxes on a fixed schedule, in small payments, rather than as a lump sum. The flexible payment schedule can reduce stress and eliminates the need to use up whatever liquidity a company may have on hand.
The unexpected occurs all the time in business. Unfortunately, when an emergency happens, it often comes with additional costs. Whether you’re experiencing an unanticipated dip in revenue, have to replace or fix broken equipment, or are dealing with legal matters, we’ve got you covered. An infusion of working capital can be allocated towards your most pressing and immediate business needs.
Commercial Real-Estate and Rent:
Rent is one of the largest operational expenses business owners incur. If your company is located in a high-cost of living area, making rent can seem daunting. Small business owners often choose to allocate a portion of borrowed capital to rent, utilities, and other company bills. During COVID, many entrepreneurs rely on financing to make rent and keep business afloat.
What are Professional Service Loans?
Professional business financing is a type of funding for business owners who have undergone specialized training or possess sector-specific skills. Small business owners who fall under this category might have special licenses, board-accreditations, titles, certifications, or professional degrees.
Funding is designed to meet the needs of business owners who fall are considered industry professionals. Business owners use the working capital to scale business, free up cash flow, cover costs during slow periods, purchase and lease sector-specific equipment and more.
Which Professionals Can Receive Business Financing?
Qualified applicants come from many disciplines. They’re lawyers, tax accountants, IT consultants, nurse practitioners, doctors, engineers, and more.
Funded professionals provide tangible or intangible products, drawing from their knowledge-base and career background. Some professionals leverage their network and industry experience and provide fee-based consultations. Others provide expert advice after years of standardized education and training.
Professional service firms eligible for loans include law and legal firms, outpatient medical practices and health centers, insurance companies, financial planning centers, consulting companies, engineering organizations, accounting firms and other businesses for professionals.
Regardless of the niche, each firm typically serves customers in need of specialized services. Customers typically seek out professional businesses to accomplish a narrow objective or goal.
Eligibility for Industry Loans
Eligibility for professional loans for business varies depending on the lender. The following criteria is a general overview of top qualification factors.
Have your most recent bank statements, from the last 3 months, ready for review. Bank statements are used to verify financial information and operating cash flow.
The amount of outstanding debt your business carries can impact loan offers. Lenders look at debt-to-income ratio (DTI) in order to determine risk. Companies that are highly leveraged are generally considered riskier than those with no outstanding debt.
Credit scores are only one of many factors considered when determining financing eligibility. Having a strong business credit score will matter more than your personal credit. A history of responsible borrowing will help you secure the most competitive professional loans for business.
Time in Business:
The longer you’ve been in business, the better. Professionals who own companies that have been around a minimum of 6 months will have the best approval odds.
If your professional services company generates a lot of revenue, you’ll be eligible for larger financing amounts. Loan sizes max out at a top percentage of company revenue. Approved applicants are able to demonstrate a minimum of $10,000 monthly business revenue, on average.