Guide to Middle-Market Business Financing

two middle market business executives, guide to middle market financing

Estimated reading time: 4 minutes

Middle-market companies, also known as mid-market companies, often require capital to support their growth goals, investment initiatives, and expansion needs and to help them stay competitive in the market. Two popular financing strategies for middle-market companies are equipment financing and commercial business loans.

By exploring these financing options, middle-market business owners, chief financial offers, and controllers can find the solution that best suits their needs and helps them achieve their strategic goals. This Balboa Capital blog article discusses middle-market business financing, including how it works, what it is used for, and where to find it. We also include some recent information and statistics about the U.S. middle market industry you will find interesting.

U.S. middle-market industry at a glance.

Before we explain the ins and outs of middle-market financing, we want to provide a brief overview of the U.S. middle-market industry and its important role in our nation’s economy. The National Center for the Middle Market reports that approximately 200,000 U.S. middle-market businesses represent one-third of the private sector gross domestic product (GDP) and employ nearly 48 million people.1

Middle-market companies typically fall between small businesses and large corporations regarding revenue and employee count. Their annual revenues range from $10 million to $1 billion,2 and they employ anywhere from 100 to several thousand employees. These companies significantly drive economic growth, create jobs, and innovate across various industries.

Middle-market financing options.

Middle-market financing plays a crucial role in supporting the growth of mid-market companies in countless industries nationwide. These companies often require funding solutions tailored to their unique needs, such as funding to finance equipment or a commercial business loan to purchase inventory or supplies, cover operational costs, or address cyclical/seasonal cash flow challenges. 

Equipment financing

Equipment financing offers numerous advantages for middle-market companies looking to acquire new or used equipment, vehicles, machinery, software (including cloud software applications), and technology. Financing equipment instead of purchasing it outright can help conserve working capital and maintain cash flow

Additionally, equipment financing offers potential tax deductions under Section 179, providing the equipment is eligible and put into business use on or before midnight, December 31, in the year it is acquired.

Commercial business loans

Commercial business loans bridge the gap between traditional small business funding and large corporate loan options, enabling middle-market companies to thrive and succeed in today’s competitive market landscape. Some lenders specialize in collateral-free (unsecured) commercial business loans up to specific dollar amounts. 

Unsecured loans offer middle-market companies a flexible financing option without having to provide assets as security. They provide quick access to funds, require minimal documentation, and can be used for various business purposes such as working capital, inventory, employee payroll, and marketing.

Where to get middle-market financing.

Commercial banks and business lenders cater to the financing needs of middle-market companies. Business owners, CFOs, and controllers should research the options available to determine the best fit. Obvious considerations include interest rates and repayment term options. However, middle-market expertise is a critical asset in the world of commercial finance.

A lender with industry knowledge can structure financing solutions, including complex transactions, that meet the needs of mid-market companies. Drawing on their experience in commercial lending, experts in this field can offer invaluable guidance and support to help businesses thrive and grow.

Business lenders have emerged as popular options for middle-market businesses seeking financing. For example, Balboa Capital, a Division of Ameris Bank, has structured and delivered equipment financing solutions to middle-market companies in myriad industries. By leveraging proprietary technology and data analytics, Balboa Capital can provide efficient access to funding with competitive rates and flexible terms to finance many types of equipment and assets.


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Balboa Capital, a Division of Ameris Bank, is not affiliated with nor endorses The National Center for the Middle Market. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.