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SBA LOANS

These loans are guaranteed by the Small Business Administration because of this they offer some of the lowest rates on the market, as well as long repayment terms and the ability to borrow up to $5 million. Repayment ranges from 7- 25 years based upon how you plan to use the money. SBA loans are best for strong credit borrowers who have been operating for 2 years and are willing to work on the long application process to expand their business or refinance debt.

Pros:

  • Lowest rates on the market 

  • Borrow as much as $5 million

  • Longer repayment terms 7-25 years
     

Cons:

  • Long application process 

  • More qualifications required
     

Best for:

  • Expanding businesses or refinancing debt 

  • Business with good credit willing to wait for funding

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Our 3 Step Process:

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1. Apply

Fill out our Quick Apply application.

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2. We review your application

We review your goals and present you with programs matching your needs, getting an offer in 24 hours.

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3. Receive funding

Choose the program that fits you best and receive funding within 48 hours.

RISK

Risk Avoidance

Risk aversion is part of human nature for doing an activity. If a shop owner has a supply chain that consists of only one supplier that delivers products to the store, the owner might consider adding another supplier to the supply chain if the first supplier cannot provide products on time. By doing this, the store owner avoids the risk that his store will not be without an ample supply of needed products. The owner’s main reason for doing this is to keep cash flowing through the sale of required products.

Risk Aversion

In the case of securities (stocks and bonds), portfolios with low risk due to risk aversion may not perform with stellar results. The risk of a loss in the portfolio's value is minimized because of risk aversion. One reason for risk aversion could be the age of the investor. Because securities usually take time to produce the desired results, an older investor might want to avoid that risk, holding less risky stocks in the portfolio.

Risk aversion affects a stock's rate of return since the investor is unwilling to risk more significant loss by investing in a stock with a higher beta score, which would return a higher yield due to the existing conditions of the company in question. Maybe too much debt on the balance sheet is making it riskier in this case, especially a stand-alone stock.

However, with a portfolio of stocks, avoiding risk may hinder the overall performance of the portfolio. This safe approach means that the investor is missing out on an opportunity that a risky stock with a high beta score may outperform the expected results and increase the portfolio's value. Conversely, the risky stock may diminish the portfolio's rate of return. This protection comes at a cost and is a managerial decision.

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