News & Tips

Maybe you’re dealing with unexpected business expenses, experiencing a need for new equipment, or looking for an opportunity to expand your small business in exciting new ways. In each of these cases, unless you have cash funds at hand, you’re likely exploring small business loans to see what’s right for you. We’ll guide you through what to look for to obtain optimal funding through small business loans at Space Coast Credit Union (SCCU). 

Lending for Business: High-Level Considerations

As you consider your financial needs, you’ll want to think about how:

• much money you need
• you would use the funds
• long it would take to pay it back

It can be easier to get small business loans when you’ve been in business for a while and have a track record that’s in reasonably good financial shape. You might need loans for real estate, construction, vehicles, and equipment, as well as ways to make smaller purchases and manage operations and cash flow. Small business loan lenders include banks, credit unions, and alternative lenders. 

Commercial Real Estate and Construction Loans in Florida

When you need a building for business purposes—and you’ve decided that renting or leasing space doesn’t suit your needs—then you may decide to weigh the pros and cons of buying versus constructing a building. Here are some items to consider: 

Cost

When you buy a building, you’ll need to consider the price, along with what you’ll need to pay in closing costs. Plus, because you may need to do some remodeling to make the space fit with your requirements, additional costs may come into play. If so, this can involve a loan to purchase the building and remodel its structure. 

When you decide to build a structure from the ground up, you’ll need to buy the land and pay for architectural plans. If the land isn’t yet developed, there may be additional costs to meet zoning requirements, connect to utilities, and so forth. Then, you’ll need to pay a contractor to build the structure.

When conducting a cost analysis between the two options, note how buying a building can come with fewer risks than construction—but building your own structure from scratch gives you more control over the finished product.

Timeline

If you need to get into your building quickly, then buying one is the more practical choice. Perhaps you can even use part of the space while you’re doing your remodeling. Construction can take 6-18 months—assuming there aren’t any delays with zoning or designing and that you don’t encounter any significant weather problems or supply chain issues. 

Location

You may love a particular building—but not its geography. Perhaps there isn’t enough traffic or parking available. Whatever the issues, if you decide to build a structure, you will likely have more flexibility in choosing a piece of land for your business’s location.

Availability

Are there any buildings that interest you enough to consider buying them? Depending upon your needs, the market conditions, the location, etc., your answer may vary. To help decide between buying and building, you could see how closely your requirements match with an already-existing building; if that isn’t panning out, then construction may be the most feasible route.

Tax Breaks

Learn more about potential corporate income tax incentives in Florida.

Commercial Refinance in Florida

Perhaps you already own a building but want more favorable financing than your current loan on the property. Maybe you’re looking for lower interest rates and better loan terms. You might be looking to pay off a loan that has a balloon payment coming due. Or you may want to cash out on the equity to get funds for a range of purposes. 

When interest rates go down through a refinance, this can lower the payment, which can help you improve your business’s cash flow. You can also lower the payment by lengthening the term although that would cause you to pay back more in interest over the life of the loan.

Best Commercial Real Estate Loans

When you’re looking for a commercial real estate loan, here are some factors to consider when comparing loans: the interest rate, the term, the down payment requirement, any fees, penalties, etc. 

Also find out what you need to qualify—such as credit score, documentation, time in business—and how quickly you can get the funding.   

Just like with loans for your personal needs, find out what small business loan lenders offer and require, and compare choices. We think you’ll find that SCCU offers small business loans with real value.

SCCU: Small Business Loan Lenders for Real Estate

Whether you need a loan to buy a building or to refinance an already-existing one—or you’re investigating construction loans in Florida—SCCU has outstanding small business loans for real estate. We understand the local market landscape and focus on helping our business members to succeed by offering member-friendly loan products, competitive interest rates, and flexible terms to help your business save money, operate more efficiently, and grow. 

Specific lending for business real estate programs includes commercial mortgage loans for purchasing or refinancing owner-occupied properties and investor-owned properties. Plus, we offer SBA 504 loans and commercial construction loans to build, remodel, or expand your property. Our construction loans convert to permanent after construction is complete. 

SCCU does not penalize our members for making additional payments towards their principal or paying off the loan early using their own means.

Commercial Vehicle and Equipment Loans in Florida

Commercial vehicle loans can allow you to get the new or used cars, trucks, vans, or other vehicles you need to operate your business. Just like a real estate loan is secured by the property, vehicle loans are secured by the assets that you’re purchasing or refinancing. 

Closely related to vehicle loans are equipment loans that, as the name implies, allow you to obtain the equipment required to run your business. These can include specialty machines, heavy equipment, tools, and more kinds of tangible assets for your specific type of business. 

Best Commercial Vehicle and Equipment Loans

You’ll want to make sure that small business loan lenders will loan on the types of vehicles and equipment you need and investigate their interest rates, terms, fees, and so forth. The financing process can be similar to what you might experience when personally buying a car in that you need to determine what you can afford and how you fit within a lender’s qualifications. 

Just like you’re asked to provide documentation about your personal finances when buying a car for your family, the lender will ask you for certain pieces of verifiable information before making a lending decision. In general, good credit helps. Without it, the lender may approve the loan with a higher interest rate and more stringent repayment terms. In this situation, making on-time payments can help your business to boost its credit score.

When seeking a commercial vehicle and/or equipment loan, it can make sense to look at credit union loans because, as a non-profit cooperative, the credit union can offer better rates and lower fees as a way to return what would be profit to its members. When choosing a credit union for small business vehicle and equipment loans, you typically will get a faster lending decision. 

SCCU: Small Business Loan Lenders for Vehicles and Equipment

At SCCU, you can get financing to purchase or refinance business vehicles and/or equipment with competitive interest rates and flexible terms. This includes commercial vehicle financing for cars, trucks, vans, and other types of commercial vehicles along with specialized machinery and heavy equipment for your business operations. 

Some business owners may think about getting a personal loan, instead, to purchase or refinance a vehicle they use for business purposes. Using small business loans, though, allows you to separate personal and business finances, which can be especially important at tax time. 

Credit Cards for Business Owners in Florida

A credit card is a must-have for many businesses for both planned and unplanned expenses. The business can use credit cards to pay for expenses like office chairs, supplies, business-related meals, traveling costs, and so forth. Depending upon the credit limit and card balance, credit cards for business owners may make allowances for larger purchases. If you want to make a large purchase, it can be helpful to do so initially during the time of the special introductory rate.

Using a credit card makes paying for expenses more seamless while providing a record of transactions and assisting with cash flow. They allow business owners to keep their business and personal expenses separate, while helping to boost the creditworthiness of the company with on-time payments. Business credit cards may also offer the same perks, maybe even more, as personal credit cards.  

Best Business Credit Cards

When considering the best business credit cards for your needs, think about how you’d use yours. If you expect to carry a balance from month to month, then the interest rate and annual percentage rate matter. Also, check to see if there’s an annual fee required or other fees charged. See what benefits and rewards the credit card offers for business owners—to check all of the boxes, we invite you to look at our Visa® Platinum Business Credit Card.

Visa® Platinum Business Credit Card

The Visa® Platinum is an attractive credit card for business owners because of the competitive interest rate and special introductory rate that’s available for the first six months⁵⁷. There is no annual fee, no cash advance fee, and no balance transfer fee. A broad range of redemption options are available, including cash back, gift cards, entertainment, travel, and much more. 

With the Visa Platinum Business Credit Card, you’ll benefit from Visa’s Zero Liability Protection¹⁴—which means that you aren’t liable for unauthorized charges that you report on time—and you'll have seamless access to a secure digital wallet to make contactless payments. All of that put together can make the Visa® Platinum Business Credit Card the best business credit card for your needs. 

Choose a Credit Union for Small Business Needs

When you need a small business loan, a credit union makes an excellent choice as your small business loan lender. 

Although banks focus on making a profit and satisfying stockholders by paying them dividends, credit unions focus on their member-owners by returning surplus income in the form of higher dividends, better rates on loans, and lower fees.  

In addition to lower interest rates and fees, our credit union loans typically come with flexible terms—and we focus on providing quality customer service. Learn more about the difference between a bank and a credit union here.

Benefits of Choosing SCCU for Business Lending

These are the small business loans available at SCCU:

• Commercial Real Estate and Construction Loans
• Commercial Vehicle and Equipment Loans
• Visa® Platinum Business Credit Card

Besides offering outstanding credit union loans, SCCU also provides a range of excellent business savings and business checking options to help your company succeed. 

To manage your business expenses through a checking account, SCCU offers two options:

• Free Business Checking: Yes, it’s absolutely free: no monthly maintenance fees, no minimum balance or direct deposit requirements, and no transaction or volume limits. Here’s what else is free: statements, Online and Mobile Banking⁶⁰, a debit card, account alerts, access to SCCU ATMs, 2Way Text Fraud Alerts, bill payer, and telephone banking. Plus, you can open this account with only a $50 deposit by applying online here. 
• Business Interest Checking: Multitask with this business account by earning interest while still having your funds available for daily business expenses. This checking account also comes with plenty of free features and benefits. Apply online here. 

To help your business reach its goals, SCCU offers three different options to save, keeping them straightforward so you can focus on business management and growth:

• Business Savings: Opening a business savings account establishes you as a member of the credit union, with all the benefits to boot. This interest-bearing account has no transaction or cash processing fees or limits and gives you quick access to your cash. Additional free services include account alerts, 2Way Text Fraud Alerts, statements, and Online and Mobile Banking⁶⁰. Apply online here. 
• Business Money Market Savings: This account pays a higher interest rate than the regular business savings account while still offering the flexibility that businesses like yours need. By keeping a minimum daily balance of $2,500, you can enjoy all of the benefits this account has to offer with access to cash for emergencies. Apply online here. 
• Certificates of Deposit (CD): For as little as $500⁶, you can open a CD with terms ranging from three to 60 months. These CDs offer a guaranteed rate of return. Note that, early withdrawal may incur penalties. A CD can be an excellent component of your business savings portfolio of accounts. Apply online here. 

SCCU also offers an online business resource center where you can access free business webinars, informative articles, and useful calculators. Plus, you can find information about merchant services, payroll, and accounting software. For even more information about what’s available at SCCU, check out “Your Complete Guide to SCCU’s Small Business Services.”

Now you know all about finding the best small business loans and the benefits of choosing a credit union for small business services!

Reach out today to get more information about SCCU’s Small Business Loans!