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We provide a loan finder service for businesses to connect with the best lenders that fit their needs. Our loan finder service is paid for out of loan proceeds after funding. Through our syndication platform business owners can apply once and receive multiple funding offers secured or unsecured. Terms as short as 3 months up to 36 months unsecured, now with fixed daily fixed weekly, fixed bi-weekly, and fixed monthly payment options. We provide direct and brokered funding in 1st- 10th positions for business with Good Credit, Bad Credit, and No Credit. The minimum time in business required for funding is only 6 months for certain types of businesses. We will fund businesses with bankruptcies, tax liens, and judgements that are on a payment plan. Previous defaulters are welcome to apply, but must pay a service fee upon funding. Our in house funding that we provide is a form of factoring called merchant cash advance or future receivables purchase agreements. Some of the financing options we provide do not require a personal guarantee. *We do not provide any type of consumer financing* Other types of business financing are offered through syndication as a merchant cash advance or in a broker capacity for a short or long term loan.
A merchant cash advance with us, however, is as easy as filling out our one-page application, and we’ll approve you in 24 and fund you within 48 hours. Funding is available from $10,000 to $6,000,000. Businesses access working capital centered on their cash flow and approval is based on purchase of future receivables. In this case, the future deposits of the business. Funding is based on the aggregate cash flow through the business’s operating accounts. Repayment is made by automated electronic debits (ACH) over specified terms. This allows businesses to use future cash flow in the future to obtain the working capital they need to grow now.
SBA and Term Loans:
What Makes SBA Loans Different From a Traditional Bank Loan
SBA loans come from participating banks, credit unions, and licensed non-bank lenders but they are partially guaranteed by the U.S. Small Business Administration (SBA), a federal agency that promotes small business ownership in a variety of ways.
Small businesses are viewed as higher risk for lenders. The SBA loan guarantee program encourages lenders to work with small businesses. In return the lenders adhere to specific lending terms, interest rate caps, and other criteria set out by the SBA.
The loan guarantee is in effect credit insurance – typically, it means that the SBA will cover a portion of any loan losses incurred by the bank, up to 90%. Note: these programs don’t mean that a business owner who defaults on his loan won’t be expected to eventually pay off his or her balance.
The sharing of risk is what makes SBA loans attractive for banks, who are in turn asked to provide loans to a sector of the economy that is higher risk: small businesses.
SBA loan terms can be more flexible, meaning borrowers can be approved even if they have fewer assets than required by commercial lenders. So if you are just starting out and don’t own a home or other big ticket asset to offer as collateral, you still have a good chance at getting a loan.
Note: SBA guaranteed loans are based on a working arrangement between the SBA and the bank. The SBA doesn’t lend money, and it doesn’t interface with borrowers. Banks and other participating lenders decide whether or not to approve loan applications, and then they apply directly to the SBA for the guarantee. Note: not all banks participate with the SBA.
The (Almost) All Purpose 7(a) Loan
The most popular SBA loan program is the 7(a) loan, designed to provide funds for a broad list of businesses. These loans target “small” companies, defined according to the North American Industrial Classification System (NAICS), which determines whether a company is small by its annual revenues or number of employees.
The maximum loan amount available under the 7(a) program is $5 million.
The 7(a) loan is a general purpose loan, and the funds may be used for almost any business need, including:
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Starting a new business
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Funding working capital
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Buying land and a building
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Acquiring another company
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Refinancing existing obligations of your business.
Most 7(a) loans are used to purchase assets, such as real estate and equipment, due to favorable terms that let you repay the loan over the useful life of the asset: up to 25 years for real estate and 10 years for equipment. These longer repayment terms keep payments lower, meaning more capital stays in your business to fund operations and growth.
SBA loans do have some restrictions on how they’re used. Funds guaranteed by the SBA can’t be used to fund an investment, or any passive business activity, like purchasing a building that will be leased to another business. They also can’t be used to reimburse a business owner for money previously invested, or repay any money owed to the government, such as taxes.
How to Know If a 7(a) Loan Is Right For You
If you can answer, “yes” to any of the below, a 7(a) loan may be right for you.
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Are you a small business?
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Is your business based in the U.S. or its territories?
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Do you have capital to invest in the business?
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Are you current with all debt payments to the U.S. government, including income taxes?
Helping you choose the right loan for you and your business.
CHOOSE THE RIGHT ASSET BASED LENDER:
The decision to use an asset based financing solution for your company is strategic and should be made carefully. The right financing partner can be critical in helping you achieve your corporate objectives. Consider asking the following questions as part of your due diligence process:
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How long have they been in business?
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How do they get their funding?
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Do they have experience financing companies in your industry?
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What collateral are they comfortable financing?
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Will clients be notified of the relationship? If so, how?
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How will customer payments flow?
How does a business line of credit work?
A business line of credit is what’s called revolving credit, meaning you can use it over and over rather than just once (like you would with a term loan). You only pay for what you use.
Here’s how that works:
First, you have to get approved for your business line of credit. When you get approved, you’ll get a certain credit limit―or the amount of money you can borrow. Your business’s credit limit will depend on things like your lender and your borrower qualifications (such as credit score and revenue).
Then you can borrow against your credit limit. Now, you don’t have to borrow your maximum amount. If you have a $50,000 credit limit, for example, you can draw $10,000 one day and another $5,000 a few days later. (These transactions are often called draws from your credit line.) Or, yes, you can borrow the whole $50,000 at once.
Either way, whatever amount you borrow becomes its own term loan, with its own interest rate, fees, and repayment term. So if you do multiple draws, you basically have multiple term loans
But unlike normal term loans, once you pay those draws back, the money becomes available again. So if you borrow $10,000 from your $50,000 credit line, you’ll have another $40,000 you can borrow. But once you’ve repaid that $10,000, you’re back up to $50,000. And there’s no need to get re-approved to borrow more. (Some credit lines do expire, so you’ll need to eventually get re-approved.)
That makes business lines of credit a great kind of working capital to have on hand. If you’ve got an established credit line, you can quickly borrow funds without needing to go through a loan approval process. And since you can make draws of many sizes, you can use your credit line to take care of smaller and larger business expenses.
What is a merchant cash advance?
As opposed to a traditional loan where a lender provides funds in exchange for an interest-based repayment plan, a merchant cash advance (or MCA), sometimes called split funding, is a purchase of future credit and/or debit card sales in exchange for a fee.
In addition to this, a MCA is generally much faster than a traditional loan, with the ability to be approved and have your account funded in as little as 24 hours in some cases.
And you can use split funding for virtually anything, including:
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Inventory purchases
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Equipment upgrades
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Hiring and training
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Payroll
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Taxes
For those who need capital fast, who don’t have great credit, or don’t have any applicable collateral that could be placed down to secure a traditional loan, an MCA may be the perfect funding solution.
As small business financing alternatives go, split funding is one of the most convenient when it comes to repayment.
How a merchant cash advance works
An MCA is an advance on future credit card sales. Therefore, it’s best for businesses who function mostly off credit and debit card sales.
What is convenient about split funding is the advance is repaid, typically via an ACH or automatic withdrawal, based on a percentage of those daily sales. The amount which is automatically paid towards the loan is typically called the “holdback” amount.
That means if you have a dip in regular sales, the amount taken out for those days will also be reduced, making it easier to pay back the advance when business is down.
The most unique aspect of an MCA is that it doesn’t use a typical APR interest fee but rather what is typically called a factor rate.
Asset Based Lending:
Asset based financing enables your company to capitalize its assets. It provides you with immediate funds which can be used to cover operational expenses, finance new purchase orders, or make strategic investments. Asset based loans are an ideal alternative for small and middle-market companies who need a flexible financing solution.
HOW DOES ASSET BASED FINANCING WORK?
Most asset based lending facilities operate like a revolving line of credit that is secured by specific collateral. The collateral is used to determine a borrowing base – the amount of funding that you can obtain. The line allows you to withdraw funds as you need them, based on the value of the assets in the borrowing base. The line is paid back as the assets are converted in to cash, through your normal operations.
The borrowing base is determined as a percentage of the value of the collateral that has been pledged. Usually, companies can finance 75% – 85% of the value of their commercial accounts receivable. The borrowing base of inventory and equipment is often 50% or less. In general, the actual percentages depend on the quality of the assets and how liquid they are. The borrowing base usually changes regularly as assets – namely, accounts receivable – fluctuate.
BENEFITS AND ADVANTAGES
Asset based financing solutions have a number of advantages, including:
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Improved liquidity for your company
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Flexibility – lines can be used for many purposes
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Speed – lines can be deployed faster than other solutions
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Fewer covenants than most alternatives
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Lower costs than comparable options
COMMON USES
We can work with companies that offer products and services to other businesses or government entities. Industries we work with include:
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Business services
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Manufacturing
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Staffing
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Transportation and Trucking
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Logistics
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Technology
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Security guard companies
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Resellers
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Oil and gas
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IT consultants
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Import
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Office supplies
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Distributors
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Wholesalers
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Government contractors
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And others…
INDUSTRIES
We can work with companies that offer products and services to other businesses or government entities. Industries we work with include:
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Business services
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Manufacturing
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Staffing
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Transportation and Trucking
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Logistics
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Technology
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Security guard companies
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Resellers
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Oil and gas
-
IT consultants
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Import
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Office supplies
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Distributors
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Wholesalers
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Government contractors
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And others…
CHOOSE THE RIGHT ASSET BASED LENDER:
The decision to use an asset based financing solution for your company is strategic and should be made carefully. The right financing partner can be critical in helping you achieve your corporate objectives. Consider asking the following questions as part of your due diligence process:
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How long have they been in business?
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How do they get their funding?
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Do they have experience financing companies in your industry?
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What collateral are they comfortable financing?
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Will clients be notified of the relationship? If so, how?
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How will customer payments flow?