Small Business Loans in New Mexico

New Mexico’s economy has primarily been centered on the oil and gas industry. With oil and gas at the forefront of the local economy, there is a constant need for labor. Both initiatives provide over $2 billion in tax revenue for New Mexico annually.

The state is the eighth largest energy supplier in the United States, making New Mexico’s climate and open terrain a great supplier of energy. One of the state’s most significant resources is The San Juan Basin, the largest natural gas reserve in the country. These industries

Outside of oil and gas, the state relies on small business owners. When oil prices drop, the state’s economy may experience hardship. Small business loans in New Mexico have helped businesses successfully make it through tough times. AB Funding provides business loans in New Mexico to a wide variety of industries. Manufacturing, distribution, logistics, and transportation are all vital industries in New Mexico.

The manufacturing and distribution industries in New Mexico use business loans to finance and grow their operations. These industries must have the necessary equipment and machinery, raw materials, and other supplies to service their clients better.

Over the last two years, job growth has increased in the manufacturing and distribution industries. The state government has offered tax credits and technical assistance to support job growth. As the New Mexico economy continues to surge, business owners are using small business loans for expansion.

New Mexico is also reliant on the tourism and hospitality industry to contribute to its local economy. Tourism spending supports over 8% of all jobs in small business loans new mexico the state.Small businesses in New Mexico have been taking advantage of the tourism that the state sees every year. In 2016 alone, New Mexico had more than 35 million visitors that spent over $6 billion dollars. Businesses in the hospitality and tourism industry in New Mexico use small business loans. These businesses use loans to bridge the financial gap during slow months and to prepare for the busier months.

AB Funding has loan programs in New Mexico staring from just $25,000. AB Funding specializes throughout New Mexico in equipment financing, SBA loans, asset-based loans, bridge loans, invoice factoring, and business lines of credit. Schedule a call with a Lending Advisor today to learn more about the business loan options in New Mexico.

Business Line of Credit

A business line of credit is a great option for business owners looking for flexibility. Eligible businesses are given a predetermined credit limit, allowing you to withdraw funds from it as needed. With a business line of credit, you only need to repay the money you’ve drawn, plus the interest. It’s a revolving line, so you can repeatedly access the funds as long as you don’t exceed the limit.

SBA Loans

The Small Business Administration (SBA) created SBA loans to provide low-interest rates, extended repayment terms, and high loan amounts to small businesses that would otherwise disqualify from bank-rate financing. The SBA guarantees up to 85% of the loan, meaning that the Small Business Administration will pay the lender the guarantee if a default happens. An SBA loan is one of the most highly-coveted loan programs among small businesses.

Asset-Based Lending

Asset-based loans rely on a business’ valuable assets rather than cash flow and credit, such as inventory, invoices, real estate, equipment and machinery, or purchase orders. This loan program is easier to qualify for since the collateral offered mitigates the risk for lending institutions. The repayment terms, interest rates, and loan amount depend on the value of your assets. But remember that the more liquid your assets are, the better it is for lenders.

Invoice Financing

Invoice financing lets you sell unpaid invoices to a third-party company for upfront cash. Lenders typically advance up to 90% of the total invoice value and will send the remaining percentage once your customers pay them, minus a small fee. With invoice financing, you don’t have to wait months for your customers to pay. You’ll receive payment immediately.

Business Term Loan

The structure of a business term loan is what usually comes to mind when you think of a loan. Lenders give you a lump sum that’s payable in regular installments within a set period of time. Depending on the lender’s discretion, the payments can be weekly, bimonthly, or monthly.

Equipment Financing

You can apply for equipment financing if your business needs company vehicles, heavy equipment, or even kitchen appliances. This funding option gives you the loan funds required to purchase or lease equipment and machinery. The equipment is collateral for the loan, so you don’t have to pledge a personal guarantee. However, the lender may repossess the equipment in case of a default.

Purchase Order Financing

Purchase order financing gives you the business resources needed to fulfill large purchase orders from your customers. The PO financing company usually covers 100% of the purchase order cost. Once approved, they will pay your suppliers so they can manufacture and deliver the goods to your customers. The PO financing company will receive your customer’s payment, subtracting the loan repayment along with it, before giving you your profit.