• Viking Advisory Group

More than ever, business owners are reviewing their processes, making unfamiliar changes to operations, and even reaching out virtually to remain in contact with clients and customers. There are other not so obvious strategies that businesses can employ to increase cash flow and promote greater flexibility.

Interest rates are currently at historic lows and make borrowing, from both banks and private sources, an attractive option to access additional working capital for operations or funds for expansion of the business.

For our clients, here are three of the more popular financing options:

1. SBA 504 Loan

The use of proceeds from 504 Loans must be used for fixed assets (and certain soft costs), including:

  • The purchase of existing buildings

  • The purchase of land and land improvements, including grading, street improvements, utilities, parking lots and landscaping

  • The construction of new facilities or modernizing, renovating, or converting existing facilities

  • The purchase of long-term machinery

  • The refinancing of debt in connection with an expansion of the business through new or renovated facilities or equipment

504 Loans are typically structured with SBA providing 40% of total project costs, a participating lender covering up to 50% of the total project costs and the borrower contributing 10% of the project costs.

2. SBA 7(a) Loans

  • Loans up to $5,000,000

  • SBA guaranty for 75% (85% for loans up to $150,000)

Unlike the 504 Loan, the 7 (a) Guaranty Loan can be used for most business needs.

3. Working Capital (Conventional)

  • Term of 1-3 years, can be renewed

  • Interest only

  • A/R and inventory are used as collateral

  • The borrowing base is typically calculated from 80% of A/R and 50% of Inventory

More than ever, it is incumbent for small businesses to utilize all tools available to facilitate growth and stability.The experts at Viking can partner with you and help match your business with the correct product to facilitate increased growth and profitability. The Viking team has placed over $100,000,000 of loans for our clients and are confident that we can help you as well. For assistance in navigating the loan process or any questions related to financing for your business, contact us today.

  • Viking Advisory Group

Updated: Jun 24

The first and second quarters of 2020 provided challenges to all businesses as we entered an uncharted economic landscape. When the federal government offered Economic Injury Disaster (EIDL) loans and grants, and Paycheck Protection Program (PPP) loans, business owners had questions.

Fortunately, with our many years of experience supporting startups and managing transitions, Viking Advisory Group was in a unique position to answer those questions and help new and existing clients navigate and secure both EIDL and PPP financing. In some extreme cases, Viking was able to provide new clients with organized financials when there were no previous formal bookkeeping practices in place. We were able to work quickly and create the systems and reports necessary to obtain SBA financing. Clients experiencing unforeseen downturns in revenue were also able to adjust course with the financial guidance provided by the Viking team. 

Navigating an Evolving Processes

While securing funds may be the first step in stabilizing through turbulence, Viking is uniquely positioned to help clients through the process of loan forgiveness. 

Recent Updates to the PPP:

  • Additional time to allocate funds: Businesses now have up to 24 weeks (up from 8 weeks) from the date you receive the loan.

  • Additional time to restore your payroll: You now have until December 31, 2020 (instead of June 30) to rehire employees and/or bring wages back to 75% of pre-COVID levels.

  • Additional spending flexibility: Up to 40% of your loan (up from 25%) can be spent on eligible non-payroll expenses (business rent, utilities, mortgage interest) and still be eligible for forgiveness.

  • Additional time to pay, PPP loans now have a repayment term of five years instead of two years.

Securing Loan Forgiveness

Although the process and guidelines for loan forgiveness are constantly evolving, our in-house experts are communicating with our network of banking relationships to provide clients with the most current information available. For the most up-to-date information contact your Viking representative or visit the SBA’s PPP website.

If you have secured a PPP loan for your business and need help ensuring loan forgiveness, Viking can provide additional support with all the accounting and reporting necessary to simplify the process and work directly with your bank to reduce the burden.

There is no better time to thank our loyal customers as we continue to weather the most unique cycle of our business careers. Each of us at Viking also extends an invitation to anyone in need of CFO, accounting, or bookkeeping services. We look forward to meeting and helping your business prosper.

  • Viking Advisory Group

Updated: May 19

Welcome to the new and improved Viking Advisory Group website! As many of us are adapting to working remotely, we have been continuing to develop alternative ways to communicate with our clients and associates. It has also given us the opportunity to step back, listen and evaluate how we connect moving forward. With that, we have updated our logo, website, and online presence. Take a look and let us know what you think.

We will also be providing news and updates via our new blog. This will include things like company and client success stories, changes in our industry, and other relevant topics. Please visit our site periodically, as we continue to share information that you will find helpful.

As our business continues to grow, we thank each of our clients for your trust. We also invite any new visitors to contact us with any questions that you may have regarding our CFO, accounting, capital raise, and valuation services.

As always, stay safe and we hope to hear from you soon. The Viking Team.

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