The loan
Sanity check
Results
Principal—
Monthly payment—
Total repaid—
Total interest—
First-payment interest—
Payment as % of revenue—
DSCR—
Monthly cash after debt—
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A standard amortising loan. SBA 7(a) rates float with prime, so run the high end of the band as well as the quoted rate. Blue Whale USA sells equipment outright and does not originate financing.
Equipment financing versus SBA 7(a)
Equipment financing is faster, usually 3–7 years, secured by the machines, and often approved in days. SBA 7(a) runs cheaper and longer — up to 10 years on equipment and working capital — but takes 45–90 days and buries you in documentation.
The number underwriters look at
DSCR. Net operating income divided by debt service. Below 1.25× most lenders decline. Getting there is usually about the loan amount, not the rate — which is exactly why the equipment line matters.
Blue Whale USA sells outright and does not originate financing. What we can do is make the amount you need to borrow smaller. See financing options for the paths owners actually use.
Straight answers
Common questions
Yes. Equipment financing secured by the machines is the most common route, typically 3–7 years. SBA 7(a) is cheaper over a longer term but takes far longer to close. Some sellers also carry paper on an acquisition.
No. Equipment is sold outright — 35% down with the order, balance before shipment. Larry can point you to lenders who have funded Blue Whale purchases before, but the financing relationship is yours.
Equipment lenders generally want 650+ with two years in business; startups usually need a personal guarantee and more money down. SBA 7(a) typically wants 680+ plus 10–20% injection.