My Business Credit Lines

Business Lending Guide

What is Business Lending?

Businesses require adequate capital for normal operations, and often need additional capital for many reasons. A business loan is a way for companies to obtain the necessary finances to continue to operate successfully and to grow. A business loan is any kind of debt that has terms and conditions of repayment in place. Business loans can be in the form of debt, equity, or a combination of both. Structuring debt terms is based on the industry, assets of the business, track record of successful operation, the business owner’s financial strength, and many other factors.Small businesses are diverse in purpose and scope. Because of this diversity, their financial needs vary a great deal from business to business. There are many ways to obtain business loans, and choosing the right loan product depends on your specific business needs and goals. Successful borrowers should first determine their financing needs, the purpose for the funds, their ability to repay the loan, and determine what type of loan is best for their needs.Most small businesses need additional financing and seek loans for a few basic reasons:

  1. Business Startups. Startups are expensive, take time and often require more money than the owner has in savings or can borrow from family and friends. When a business is in startup mode, often cash is burned much faster than anticipated as unexpected problems and delays arise. Access to capital or lack thereof, is often the reason for many startups success or failure. Our lenders work with startups to determine capital needs, timelines, and help put together a roadmap for success.
  2. Inventory Purchase. Small businesses tend to run lean, meaning they try to hold as little inventory as possible, thus reducing their need to outlay cash. This can become a problem when a business grows and the demand for its product exceeds its inventory. When this occurs, it can make sense to borrow capital to purchase sufficient product to allow for growth. Many companies run into problems as they grow, but with foresight and financial planning, growth can be planned for and managed successfully.
  3. Business Expansion. Growth is often a factor for needing additional capital. A common form of growth is when a business expands into new product or service offerings. This can be an expensive undertaking, and can require capital infusion. When businesses expand they need new products, new ways of producing and delivering the new products, and training for employees. All of these things cost money and may require a business loan. A lending partner who understands growth and expansion can be a very valuable asset.

Historically, business lending has been up and down, depending on the strength of the economy. Economic downturns and crashes can have a strong negative effect on business lending, which particularly hinders small businesses. Currently we are seeing a general improvement in borrowing conditions, for both small businesses and larger commercial undertakings. Banks are starting to loosen up restrictions and are lending more, but small businesses are still having a hard time obtaining the capital they need.

Established businesses find it easier to borrow capital than startups or young companies. Banks generally like to see a track record of success and improvement when deciding to lend. Revenues need to have increased steadily, month over month, or quarter over quarter. If a business has struggled, even if the owner has pristine credit, banks will still often turn down a funding request. Weak income statements or periods of slow or negative growth can derail an otherwise strong funding application.

Bank credit and owner investment have been primary sources of funding for many businesses over the years. Young and growing companies rely on external debt to a large degree, and utilize lines of credit and credit cards to meet their capital needs. When this is not available to small or startup business, many owners do not know where to turn for their capital needs.

Thankfully, banks are not the only source of business funding available. Many people turn to banks first and give up when their request is rejected. This site seeks to outline many other funding options and helps you, the business owner determine which is right for you and your company.

Remember that obtaining a loan for your business is a large undertaking and there are many issues and factors you will need to consider. Communication with your lending partner is crucial to a successful loan funding. Be prepared to answer their questions and provide documentation supporting your answers. Help them understand your business and the marketplace and industry where you work. The more they understand the easier it will be to obtain funding and create a successful working relationship.

Who are we?

We understand that businesses need capital to survive and grow, and we know how to best match up lenders and borrowers. Many business owners think that obtaining funding for their business needs is impossible in this economy. Some have been to banks and have been turned down; others don’t even know how to get started. We are here to help.We have been successful in helping companies obtain capital funding. We partner with small to medium sized businesses, and understand that even strong companies need capital infusion from time to time. The founders of this website are dedicated to the idea that even when banks and other lenders have turned you down, there are still options to get the money you need for your business. We have relationships with funding sources in many industries who can work with you to structure your loan in a way that works for everyone involved.We understand that small businesses keep this country going, and are the backbone to a healthy economy. Small businesses should be helped and embraced in their efforts to grow and thrive. Our mission and our passion is to help small business owners, and aspiring business owners, reach their goals and achieve their dreams by getting the capital they need.Our website is designed to be all inclusive, and to provide you with the information you need to find the lender that is right for you. We strive to create and manage a comprehensive and useful list of business lenders in every state in the U.S. The lenders we recommend are reliable and are able to provide the service they advertise. They will work with you to get you the funding, in the amount and structure that you need.

Our site has more than 500 business lenders listed. Each lender has been researched and a full review is included, outlining their industry of focus and their ability to meet your needs. Each lender profile is complete with contact information and a list of lending services each lender provides. You can search based on state, general location, lending type and contact methods.

We provide lender reviews based on first-hand experience from business owners like you who have used their services. We work with business lenders who demonstrate professionalism and expertise in their fields of lending. We strive to be user friendly and helpful and welcome your feedback and reviews.

We also feature a guide to business lending that will walk you through the steps to obtaining a loan for your business. The guide highlights benefits to you and your company that each loan type provides. Sometimes there are multiple loan products that can fit your needs; we try to lay out the pros of cons of each so you can find the best fit. The purpose of this guide is to aid you as you seek to grow your business.

On our site you will find an online application. You can fill out this form at your convenience and submit the information directly through the website. Once submitted, your information will be analyzed by our lending professionals and you will be directed to lenders who might fill your needs.

Not only can you reach out to the lenders on our listings, but when you fill out the online application you will also be contacted by lenders who are interested in working with you. Please fill out the application completely and with as much detail as possible so we can best assist. With the online application submission, you can potentially get funding in as little as 24 to 48 hours.

Please also review our blog posts to learn more about what is going on in the business lending industry as a whole. The more up to date you are with the state of the economy and with lending trends, the more prepared you will be to move forward with your lending needs. Pay attention to new or changing regulations that may affect you and your business. Also be aware that your location, the state you live it, or other factors can determine what types of lending are available and how long the process with take.

This guide will help you understand the lending process and let you know what to expect as you move forward. We are dedicated to the success of our partners, both the lenders and the businesses they support. We look forward to helping you achieve your financing needs so you can grow your business and achieve your goals.

How it works

Working with one of our financial partners, you and your business could qualify for up to $750,000 in business capital. Not only can you receive the money you need, but you will be partnered with a lending group that understands your business and your needs. They will work with you to tailor the loan product to your individual and unique circumstances. The repayment amount and period will be set up in a way that does not negatively affect your business, but can be taken care of through normal business operation.As you probably already know, obtaining capital from a bank or other traditional lending source is very difficult in today’s economy. We have partners with multiple products that banks just can’t offer due to their stringent regulations and unwillingness to take risks. Our funding partners will open the door to opportunities you won’t find anywhere else. Take advantage of their expertise and willingness to lend to you and your business.We understand that running a business is difficult, and if you don’t have the working capital you need, it can be impossible. Our lending partners understand that needing money does not necessarily mean your business is in trouble. They also understand that you don’t have time for a long, drawn out application and approval process. We work quickly to get you the money you need and our approval rate is excellent.Our services come with absolutely no application fee

We can get you a loan approval in less than 24 hours

Merchant cash advance approval rate is 97%

No collateral required with your application

If you have bad credit, we can still work with you and help you get the money you need

Apply online today

Simply fill out our online form and answer six simple questions. Submit your application and someone will contact you shortly. Get the funding you need in as little as 24 to 48 hours. It’s that easy, get started now.

Do you have a lending program that fits my business needs?

Will my business qualify for a loan?

Are you concerned that your business may not qualify for a loan? If you’ve been to a bank seeking capital and were rejected, you aren’t alone. This has happened to many business owners, even those with strong companies and solid business plans. You may think you don’t have any chance at getting a loan. That is simply not true.We offer a variety of loan programs and partner with lenders in all industries, so we can help find a capital solution that is right for you and your business. Our lending partners are standing by to speak with you and analyze your business and discuss your capital needs. Contact us now and see how we can help.

How do I need to use the capital once I receive it?

You can use the capital in any way you choose to grow your business. Capital can be used to purchase additional inventory as your company grows. You can expand your business into new product or service offering. Hire more staff to fill needs as your company grows and expands. Train existing staff to meet new customer needs or changes in the marketplace. Renovate your warehouse or workspace, or add on to existing facilities.It is up to you how you put the capital to work. You know the needs of your business, and how to place capital to give you the best chance at success. Our professional lenders can also help you draw out a road map to success when determining where additional capital should be used. Remember, when you succeed our lenders benefit as well. We foster a team focused working environment and look forward to working with you.

How much can I borrow?

Some businesses need just a small amount of additional capital to take the next step in growth. Others need much more and can justify taking on that large amount of investment by their past success or market size. Our lending partners can get you anywhere from $3,000 to $750,000 depending on many factors.They will look at how much you need, how your business is currently doing, and the expected future success of your business. You want to make sure you borrow enough to do what you need to do, but not so much that you unnecessarily burden your business. Our lenders can help you find that balance and put together a funding product that works for you.

Can I borrow more at a later date?

Yes, once you’ve working with a lending group, you develop a working relationship with that group that carries on as your business grows and develops. You can build your business credit, and work with your lending partner to draw additional capital as the growth of your business requires it.We want to see you succeed, so if additional capital is needed and can be justified, we can help make it happen. Many times businesses go through several rounds of growth and each round has unique capital needs. Finding a finding partner that will work with you through the various stages of your business development is very valuable.

Are payment plans fixed or flexible?

Our lenders understand that your business won’t succeed if burdened unnecessarily with debt repayment. Sometimes structured financing works for a business, but other times having a set monthly payment is too difficult. Some business are seasonal, others are very dependent on a market driven by consumer choice.Our lenders can set up payment plans based on your daily credit card receipts or on your daily, weekly or monthly gross revenue. Payment plans are set up to come out automatically based on your daily sales, so it is hands off and easy to manage. When you make more, you pay more toward your loan. When times are lean, your payments are smaller and not difficult to make.

Does my business qualify for a loan if it doesn’t accept credit cards?

Yes, we have a variety of programs suitable to most needs. We have lenders who can fund your company based on invoices or accounts receivable. You can qualify for a bridge loan, or a short term loan for special projects or under certain circumstances. If a disaster has affected your business you may qualify for special SBA financing.There are many options for funding. Contact us now to find out more.

Terms, timelines, costs and locations

No Application Fee

We never charge an application fee. Feel free to send in your information and talk with a lending professional at no obligation and at no cost to you. Many other companies charge upfront fees, and then never deliver. When you need capital you don’t want to have to deal with paying for advice that may or may not fit your needs.We don’t need to charge upfront fees because we get loans closed, and that’s when everyone wins. Our lending partners want to talk about your situation with you directly and determine if they can help you before you or they commit to anything. When a loan funding process works as it should, you get the money you need without coming out of pocket for fees. The lender makes their money when you successfully pay off the loan and move on with your successful and growing business.

We Lend Nationwide

We have lending partners in all 50 states. Every state is different, and some have more stringent lending regulations than others. Our lenders are licensed in the states where they lend, so they understand the rules of the road and can guide you through the lending process in your area.States have different usury laws, limiting lenders in the amount of interest they can charge for any given type of loan. Repayment structures also vary from state to state. What works for a business in one area may not be a fit for a business in your state. Discuss regulations and limits placed by state law with your lender. Contact us today to get started in your area.

Approvals in 24 Hours

When you think of getting a business loan, you probably think of reams of paperwork and weeks if not months of delays. Our lending partners understand that you need money now, and you don’t have time to play games. Our goal is to get you in front of lenders who know what they’re doing, know what to look for, and know what questions to ask so they can make a decision quickly.Once you are approved you can have your money in less than a week. Our underwriting team works fast, and once you are approved your funds are wired direct to your bank account. This save you time and effort and lets you do what you do best, run your business. Fill out our online application and submit your information, and you could have money in your account in as little as 72 hours.

Loan Terms

Each business is unique, and each funding solution is different. Our lenders tailor your loan, and the terms of your loan, to your individual needs. Lenders understand that you may not be able to start payments for a few months. Often payments start small and increase as your business grows and can handle the larger payment amount. Lenders can structure payment amount and due dates that work for your business.Some repayment plans are based on a fixed weekly or monthly rate. Each week or month the same amount is due at the same time, which can keep things simple if the business can handle the payment. Other plans require you to pay a percentage of daily credit card sales or monthly revenue. This type of repayment takes into account seasonality of some businesses and allows companies to ride through slow times by paying less on the loan.Contact us now and speak with a lender who understands your business needs and can structure a loan that is right for you.

How does credit effect business lending?

We understand that credit issues can arise for a variety of reasons. Bad credit does not mean you have a bad business, nor does it automatically disqualify you to obtain funding. Businesses go through cycles and are dependent to some degree on the local economy and the marketplace as a whole. Other metrics can be used to determine the credit worthiness of your business than simply pulling a credit score.We also understand that the owner’s personal credit issues often have no bearing on the success of the business. For this reason, we do not considers the business owner’s credit score when determining what type of funding your business can qualify for. You need a financial solution now, not after you have time to fix your credit. We have business loans for you, no matter what personal credit situation you finds yourself in.Since the financial crisis of a few years ago, many business owners are dealing with credit issues. Banks use this reason often as an excuse not to lend money to small businesses. We know that many business owners have run into this issue in the past, and we have worked hard to find lending partners who will lend despite credit issues. Often smaller businesses have more trouble getting capital, but we work with businesses of all sizes and in many different industries. Contact us to see what is possible for your business needs.Capital needs in businesses exist for any number of reasons, and these capital needs are not always brought on by slow business growth, lack of sales or other negative reasons. Sometime businesses are doing well and simply need capital to continue to grow. Hiring and training new employees to keep up with demand costs money. Purchasing inventory or expanding into new business areas costs money. Upgrading equipment or renovating your work space costs money. We understand capital needs don’t have to have anything to do with bad credit.

We utilize many forms of alternative financing to get you the capital you need in your current circumstances. Banks are rigid and do not think outside the box, but our funding partners know how to structure loans to meet your needs. Our financing options do not rely on credit; instead we take into account other factors that point to a successful and healthy business.

We look at bank deposit history to determine a track record of successful business operations. We utilize credit card sales history and also work with your credit partners. We understand what metrics point to a healthy and potentially successful business and we utilize these factors to qualify you for the funding you need for your business. The following paragraphs outline the reasons to use these metrics in evaluating your business.

Bank Deposits

Cash flow is king in business, especially in smaller or startup companies. When a business has regular bank deposits, it points to a healthy cash flow and cash management practices. Our lenders can use this information to put together a revenue-based loan for your company. Lenders look at bank deposits over a certain period of time, and anticipate what this means for future growth and revenue realization.With this type of funding a business can expect to be able to obtain a loan at about 10% of its gross annual deposits, regardless of credit history or credit score. This is also a quick process, and can usually fund in 7 to 10 business days. When time is money, you can’t afford to wait for long, drawn out lending process. Loan terms with this product can be up to 18 months and interest rates are typically a little higher than the going bank rate.No collateral is pledged with a revenue based loan. The only requirement is a bank account that shows a steady history of deposits. There is also no monthly or weekly bill to worry about, instead payment is made direct from the borrower’s bank account via ACH payments. This helps businesses because they only pay back based on what they make, so the pressure of repayment is lessened.

Credit Card Sales

This can also be called a merchant cash advance loan, and it is also not determined by individual or business credit worthiness. With this program, the lender analyzes your credit card processing history to determine how much revenue is coming into your company through normal business activities. They lend cash against future credit card sales, so you can realize future revenue now and take care of your capital needs.This can be an expensive alternative to traditional financing, with rates as high as 40% in some cases. You need to make sure to research potential funding partners to determine what a good fit for your business needs is. Some of our funding partners lend at a rate of only 12%, so make sure you know what the costs will be.Repayment also varies between lenders. Some take a percentage of your credit card volume on a daily basis, while others offer a monthly installment plan with a fixed payment. In both instances the lender works with you to determine what amount or percentage will work for you as you grow your business and pay off the loan at the same time. These loans are intended to grow your business and your credit, not weigh you down with a burdensome repayment.

Credit Partner

Another way to overcome a personal credit issue, or challenging business credit, is to work with a credit partner. Business partners can step in as credit partners to help you obtain a business credit card or a line of credit. You can work with an existing partner in your business, or look to someone unrelated to the business to step in and participate with you in obtaining funding. These can both be viable solutions to helping you get the cash you need quickly without going through a lengthy application process.Keep in mind that using this method can bring risk to the person acting as a credit partner, as they are in effect cosigning on the loan and will be liable along with you for the repayment. This type of loan will not appear on any kind of personal credit report for the credit partner, unless the loan is not serviced and enters default. Keep your credit partner informed of the status of the loan at all times to avoid any misunderstanding or other issues.

Let Us Help

Yes, many business owners have poor credit, especially in this economy. Tell your story in a way that demonstrates to lenders your ability to succeed and pay them back. Provide audits or documentation highlighting positive cash flow and growth trends. Be prepared to describe ways you are working to increase the strength and health of your business.We understand that this should not exclude you and your business from obtaining necessary capital to grow and support your business. We are pleased to work with you, whatever your credit situation, to find the funding solution that is right for your business. Contact us today and see what we can do for you. Our lending partners are standing by with tried and proven solutions. Not only can you get the capital needed for your business, but you can improve your credit along the way.

Is my privacy protected?

We know that your personal information is confidential, and we will maintain that confidentiality. We try to hold all business communications in the strictest of confidence and understand that this is of upmost important to our partners and anyone in our network. Your business is your business. We share information only with our partners who are in a position to help you obtain the financing you need for your business.Our online forms do collect some or all of the following information:

  • Your name
  • Your phone number
  • Your email address

We do not harvest non-submitted emails nor do we spam or add email addresses to any bulk email lists. We use information submitted via our online forms only to provide you with the materials or contacts that you request. We provide you contact information to our lending partners so they can contact you directly to discuss your funding needs.

Information obtained through our online form submissions are shared with our partners and affiliates. The purpose of this sharing is to help you achieve your capital goals and to assist us in better suiting your financial needs. We do not disclose any information from our customers or our partners that is nonpublic or personal in any way.

If you wish your information to be removed from our site, or to not be shared with our partners and affiliates, you can contact us and request your information be removed. We will be happy to remove your information from our site and you will not be contacted by other lenders or affiliates for the purpose of business funding.

What is required of borrower?

Most lenders require certain criteria to be met when considering and approving a business loan. When a business owner understands the criteria and is prepared, the lending process can move quickly and seamlessly. Many times delays in funding are due to borrowers not having required paperwork prepared beforehand or not being prepared in other ways. This can cause lenders to have to wait until requested documents are submitted or other requirements are met.The main things lenders look for when considering a business to lend to are credit, equity, a business plan, experience and collateral. Some businesses have all of these and can find capital rather easily. Other businesses have challenges in one or more of these areas, and have run into problems seeking funding. We have lenders that can work with you in your unique circumstances. It is helpful to understand what will be looked at and how to be prepared.The good news is that each of these categories can be quantified, or can be understood in a numerical way. This can help a business owner set goals to overcome challenges, and be more prepared when requesting a loan. Each criterion has a range of acceptable scores or value, and this range varies from lender to lender. Be prepared to discuss each of these topics and be able to provide paperwork backing up your claims. The more prepared the business owner is before requesting a loan, the easier it will be to secure the needed capital.The following section will go through the five general criteria. We will look at what may be expected, why these categories are important, and how to be prepared. Knowing what will be expected beforehand will help you be more successful in getting funds for your business.

Good Credit

In order to obtain traditional bank financing, and often other forms of alternative financing, a business and the business owner need to have good credit. This is not only a single score on a piece of paper, but also includes credit history. Credit history looks at how well a business or business owner has paid their bills, on time and in full. This demonstrates the creditworthiness of the borrower, and minimizes risk of default to the lending institution. The score needs to not only be good but to be on the outstanding side of the scale.Banks and some lenders employ underwriters who make decisions to lend capital that does not belong to them. The money being lent belongs to the institution or to investors who trust the bank or lender to make good decisions with their money. In order for the underwriters to make these decisions, and to defend their decisions, the first thing, and sometimes only thing, they look at is credit score.Recently credit has been categorized into a scale system that ranges from a low end of 300 to a high end of 850. These scores are generalized and are based on a range of criteria from late payments to debt ratios. Good credit is thought to be a score of at least 700 or higher. After the economic difficulties of the past few years a high credit score is not as easy to come by as it has been in times past. Thankfully for many business owners, there are funding options available that do not rely on credit score, instead other factors are considered that relate more directly to the health and creditworthiness of an individual business.

Equity

When purchasing a house, many times you are required to pay a down payment in order to secure the mortgage. Equity in a business can be looked at in a similar way. The lender wants to see a borrower with skin in the game. They want to see the business owner has put their own time and money into the venture and that they have a financial commitment to the success of the business. This goes a long way to ensure the lender that the borrower will do whatever is necessary to make payments and keep the business running smoothly.When quantifying equity, banks and lenders usually want to see business owners with at least 10% to 20% equity. That means if a business is requesting funds for growth, the lender will require that at least the required equity percentage is met before providing the funds. Lenders do not want to engage with a 100% financing request. This means that only the lender’s funds are at risk in the venture, and in this situation borrowers have less urgency to make the business succeed. With at least the small equity requirement met, lenders are much more comfortable proceeding with a funding request.

Business Plan

A business plan is more than a one page summary of the business and its capital needs. A business plan is a well-researched and thought out document that introduces the business, and also explains the industry and market climate. It describes the products offered or the services provided and outlines where the products come from and how they are ultimately sold to customers. Competition is explored and strategies for growth are explained. Management is introduced and an explanation of employees needed is included.The business plan includes an outline of the business progress over time, from startup to current operations. If there have been issues impeding growth, the business plan with address these issues and outline steps to overcoming challenges faced. The business plan analyzes all aspects of business operation and makes it understandable. It is used primarily as an aid in obtaining funding through soliciting investors or funding partners.Business plans also include financial data, analysis, and forward looking pro forma worksheets.
The primary financial documents included in a business plan are the income statement, the balance sheet, and the cash flow statement. These are basic financial tools used by investors to assess the health of a business, and to determine how to structure financing. Any business looking for a loan needs to have these documents updated and available. The following paragraphs describe each of these documents.The income statement shows the revenue of the business for the preceding year. It also includes an itemized list of the expenses of the business. The net income of the business is found by taking the difference between the revenue and the expenses of the business over the preceding year, or over the period being reported in the statement.

The balance sheet shows the financial health of a company at a moment in time. Think of it as a snapshot of the business, showing how it’s doing at any one point in its existence. This snapshot is normally taken at the end of the year, or the end of the company’s fiscal year. The balance sheet shows the assets and liabilities of the company. The assets are what the business owns, such as equipment, cash, or accounts receivable. The liabilities are what the company owes, including invoices, accounts payable or other debt. The balance is shown in this document between the liabilities and the owner or shareholder equity.

The cash flow statement shows whether a business is cash positive or negative over a certain period, usually month to month. It outlines the revenue coming into the business, and the payments sent out to pay expenses as the business operates. When a lender looks at this statement, they want to see a positive cash flow, so they know that there is cash available to service the loan once it is given. Lenders typically want to see a positive cash flow for at least 6 months previous to a loan being given.

Business plans also include other necessary supporting documentation. These documents are there to back up any claims made in the business plan. Such documents may include LOIs or contracts for purchase of product, inventory reports, personal financial statement of the owners, or credit reports demonstrating credit worthiness. Lenders may request additional documentation to assist them in their analysis.

Experience

In order for a lender to be comfortable giving money to a business owner, the lender needs to see that the borrower knows how to manage the business. Without experience, it will be difficult if not impossible to obtain outside funding. The lender needs to see that the owner has been running the business and knows what they are doing.The experience and expertise of the borrower needs to be easy to see and be easily demonstrated. A business owner needs to be able to answer questions related to the business and the industry as a whole. A lender may want to tour a factory or facility and see the business in action to ensure them that the owner has the experience and ability to run the business successfully. A lender wants to know they will be repaid, and in order to be repaid from a business loan, the business needs to be run successfully.The longer a business owner has been in business, and the more expertise that can be demonstrated, the more comfortable a lender will be in making a loan. This is a way lenders mitigate risk and is necessary in nearly every business lending scenario. A standard that is often sought is a business owner with at least 3 years’ experience in their field. This doesn’t mean 3 years as a business owner or manager, but at least 3 years in the field, as an owner, manager or even an employee.

Collateral

For some lenders, when a business owner has good credit and has experience running a successful business, collateral may not be required. In other cases, where one of the other factors is weak, collateral can be a good way to fill the gaps and make a lender comfortable making a loan. Good collateral can cover many deficiencies, as it is something a lender can lien and ensure them of a full repayment.Collateral can be any asset that has a value that can be measured or demonstrated and that can be pledged by the borrower. This means the borrower must hold the asset free and clear, or own a stated percentage that can have a lien placed against it. Assets that can be used as collateral include real property, cash in savings or on deposit, inventory held by the business. Assets have to be assignable to be utilized as collateral.The value of the collateral often needs to be 100% or more of the loan amount. This allows lenders to collect their money back as well as any interest, penalties, and points in case of default. The percentage amount depends on other risk factors determined by the lender. The value placed on collateral is often estimated by the lender, or is required to be appraised to determine market value.

Does it matter what state I’m in?

Some states have a Department of Business Oversight. Other states call this division their Department of Labor, Licensing and Regulation. Another office name is the Department of Financial Services. The bottom line is that no matter the name of the office, each state has a department focused on oversight of lending. Some states vary greatly in their practices and procedures. Some states are very lender friendly and some are overly consumer protective.When lending in a specific state, the lender needs to be licensed through that state’s governing body. The licensing process can be difficult and time consuming, especially when lenders attempt to license in states other than where their main place of business is located. Forms are filled out and sent in, often via mail. Once the forms are received, they are reviewed by various departments and then questions or requests for further information are returned. Depending on the lender’s preparation, this process can be smooth and quick or very time consuming.State usury laws vary and are set up to protect borrowers from being charged too high an interest rate. Most states allow lenders to charge up to about 10% per year, but there are differing rates and allowances depending on the state and its regulations. Not only do laws vary by rate of interest, but also from commercial to private lending. Some states different laws for commercial lenders than others and depending on the state regulation may make getting a loan easier or more difficult in the commercial or private arena.Keep in mind that processing and approval as well as loan servicing can be different from state to state. The lending industry as a whole has gone through a consolidation in the past few years, but this has not been the case for small businesses. The market for this type of lending seems to still be more local and as such is more affected by state guidelines and regulations. Make sure to know and understand the rules and nuances of your particular state as you go through the funding process so you’re well prepared.

We have partnered with lenders in all 50 states to take the guesswork out of lending in different areas. You don’t need to spend hours searching for a lender in your industry with the specific loan product you need in the state where you’re located. Simply search our listings for the right lender for your business needs. Contact us now to get stated, our lenders are happy to help you navigate the various state laws and regulations your will encounter.

Types of Lending

When thinking of a business loan, many business owners automatically think of their local bank. Banks are a common source of business capital, but lending restrictions are still tight, especially for smaller businesses. Banks usually only specialize in a few specialized types of loans and do not understand or take time to educate their customers on other available options. The fact is there are many different types of loans that can fill business capital needs, and these loans have different requirements for qualification and offer a wide variety of terms and pay back options.Capital is the lifeblood of any business, especially for small businesses that depend on their cash flow to maintain operations. In order to grow or expand into new service or product offerings, businesses need access to capital. When seeking capital, business owners can go one of two routes. Seek investor funding or obtain a loan. Both options have their own strengths, but with small businesses the most common choice is to seek a loan rather than go through the process of acquiring an equity investor.Loans are chosen more frequently for a variety of reasons. With a loan, there is not as much input of influence placed on your business as when you partner with an investor. Rates are usually lower and there is usually not an equity requirement, so you don’t have to give up a piece of your ownership. Interest on business loans can be tax deductible, and terms can be much more flexible. Repayment can be structured as a percentage of revenue or receivables instead of a fixed monthly amount.Because of all of the available loan options, it is important to understand the basics of each. You as a business owner need to weigh the pros and cons of each option before deciding how to proceed. The more prepared you are and the more knowledge you have when starting the funding process, the easier it will be to find a loan that fits your needs. The following section outlines a few different loan types.

Short-Term Loans

Short-term loans do not usually involve a regular payment schedule, such as monthly or weekly. These loans, because they are designed to meet a short-term need, are generally due to be paid in full after a specified amount of time. These loans can also be structured to be paid in full after an agreed upon event or completion of a contract or project, with a secondary timeline figured in. Short-term loans are designed to help companies fill a specific and urgent need, such as acquiring inventory, funding accounts payable, or completing a small project. Seasonal businesses, including landscape companies and seasonal sales groups, utilize these loans often to enable flexibility and to allow them to take advantage of fast evolving opportunities.

Long-Term Loans

Long-term loans are very common and are the type of loans typically given by institutional or larger commercial lending groups. These loans can be used for many purposes including growing or expanding a business, acquiring a new business division, or funding working capital needs. These loans are paid back on a set regular schedule, usually monthly, for the life of the loan. These loans are usually cheaper than short term money, and are usually funded in larger amounts. With a solid business and experienced owners, these loans are easier to get and make more sense.

Lines of Credit

Lines of credit can be more flexible and allow businesses access to capital while only using what they need at a given time. These loans are not lump sum payments, rather a credit line is opened that the business owner can draw against to fund capital needs. The fees on this type of loan can be high, and often interest is compounded, making this a more expensive option. The advantage is it can be used only when needed, and can help a business recover from an unexpected challenge or fill the gap in a capital shortfall. These loans are not commonly used for planned business growth or inventory purchase as other options make more sense for planned strategic growth of the business.

Alternative Financing

Many non-institutional options exist to meet your capital needs. Even if you’ve been turned down by a bank, there are still plenty of options for your business. We understand that cash shortages are common in business, and access to capital is important to growing and running your business smoothly. The following section has in-depth reviews on several alternative financing options.Review these options carefully and consider which might be a fit for your business funding needs. Once you have an idea of what you’re looking for, contact us and let us help you take the next steps. Our lending partners stand ready to help you obtain the funding you need and will work with you to set manageable terms and repayment expectations.

Business Cash Advance

A business cash advance loan consists of a business getting an advance on future receivables, usually via credit card sales. The lender advances the capital that the business needs in return for a percentage of the future credit card sales of the business. This continues until the loan, or the advance, is paid off. Not only is the principal amount returned via credit card processing, but the lender also makes money off of a set interest rate.Payment is set up to be automatic, and is usually a fairly small percentage of the credit card processing. The business owner does not have to remember to make weekly or monthly payments. The amount is small enough that the repayment does not have a negative effect on the business or on cash flow. These loans are ideal for businesses with a high volume of credit card sales, because the daily repayment amount is barely be noticed in most cases.Small businesses often need alternative financing solutions, and a business cash advance is often much easier than trying to borrow from a bank. Cash advance programs can be tailored to the individual needs of each business, with flexible repayment plans and schedules. Cash can also be received by the business very quickly. Once the loan in approved, funds are directly deposited into the business account, sometimes in a matter of hours.Collateral is also usually not required in these loan scenarios which is a benefit to many business owners. Instead, the repayment is directly linked to the credit card processing of the business, which acts as its own form of collateral. Without having to worry about a long, drawn out lending application process, and not having to pledge assets, this solution can be simple and worry free for business owners in need of capital.

Seasonal businesses or businesses with cash flow that fluctuates a great deal can have trouble obtaining a more traditional loan. Banks attach many terms and conditions to their loan processes, and jumping through all the hoops can be time consuming and frustrating. With a cash advance loan, the process is streamlined and nothing is tied up as collateral through the life of the loan as a bank would do.

Our cash advance lenders will work with you to help your business grow and succeed. With no strict monthly payment schedule and fast access to the capital you need, a cash advance loan could be just what you’re looking for. Contact us now to take advantage of one of these great loan programs.

Business Cash Advance – Success Story

A flower shop owner running a successful and fast paced business reached out to a cash advance lender when a difficult situation arose. One of the coolers and one of the delivery trucks broke down shortly before Mother’s Day. Not an ideal time for a flower shop to run into equipment trouble. There was no extra capital in the business to make the necessary repairs, and without the cooler and the truck this would not be the successful Mother’s Day they were counting on.The owner reached out to a few of the local banks, assuming this would be the best and only option to get a loan for repairs. The applications she submitted were promptly rejected; the banks saw her businesses only as a series of numbers and figures and had no interest in helping her through a tough time. Without the bank loan she was counting on, she worried this might spell the end of her once successful business.A friend advised her to try a cash advance loan, but she was initially hesitant to pursue alternative financing. She worried there would be a catch, or some hidden charge that would make taking the loan a big mistake. She made some calls and asked a lot of questions, and finally felt comfortable moving forward.She was able to get the money she needed to repair the cooler and the truck, and was ready for the Mother’s Day rush. Not only was the lender able to help with this situation, but they developed a relationship that helped the flower shop many more times in the future as capital needs arose. The flower shop is bustling today thanks to access to capital and an owner not afraid to try something new in order to save her business.

Working Capital Loans

Businesses need working capital to function properly. Without working capital, a company couldn’t afford to purchase inventory to sell. There could be no payment of wages or salaries, so there would be no employees. Growth is also an expensive pursuit in business. Without working capital to expand operations or move into new product lines, a business wouldn’t be able to grow and evolve to compete in an every changing environment.When a business finds itself short on working capital, often a solution is to seek a working capital loan. This enables the business to pay for its needs and still maintain normal operations. Additional working capital can also allow a business to grow and to compete more effectively in its industry or marketplace. Obtaining a working capital loan from a bank can be problematic, especially if the business isn’t in perfect health. Banks can be slow and the application process can be tedious, making a fast turnaround impossible.Alternative loan options exist in many varieties for working capital needs. Some loan products are specific to the particular industry or even product that is being produced or sold by a company. Some working capital loans are more like lines of credit, allowing a business owner to draw only the amount needed. The credit can be repaid, and then drawn down again as the need arises. The flexibility and fast access to needed capital make this type of loan product attractive to business owners in need of working capital.Some businesses have seasonal needs and when these needs arise there often isn’t cash available to cover additional costs. Other businesses experience lean times when the market is down or run into other unforeseeable events that require cash. Our lenders understand that access to capital is necessary for your business, and they work with business owners to find the right working capital loan.

Working capital loans can be very flexible and payment schedules can be created that work for you. Our lenders can get you the money you need in a matter of days. Contact us now to see what options are available to you and your business.

Working Capital Loans – Success Story

A catering firm was in need of working capital to overcome a cash shortfall. This company specialized in providing food and beverages to summer camps and specialty camps throughout the southwest. The firm was busy and had plenty of clients, but many of the clients were state run camps that had to receive state funding before they could pay their bills. Some of the camps were 60 to 90 days out from being able to pay for the catering services they had received.Banks wouldn’t lend money to the catering firm because their accounts receivable aging reports did not fit into their strict lending guidelines. Plus the catering firm had high interest credit card debt that the owner initially used to start the company. Without funding from a bank, the business owner thought there was no way to cover the cash shortfall brought on by clients unable to pay their bills for months.The owner then looked into alternative financing options and started talking to a working capital lender. The reviewed the situation and came up with a plan to take care of the short term capital needs of the company. The lender was able to fund the business enough to pay off the original high interest credit card debt and still have money left over for working capital. The extra cash, combined with not having to service the high interest debt was enough for the company to continue to function until their invoices were paid.The loan was payable over a 10 year period, so the monthly repayment schedule didn’t burden the business unnecessarily. The debt could be managed and normal working conditions continued. Not only was the company able to survive a short term capital shortfall, but with the infusion of working capital they were also able to add a new service line to their company.

If you think a working capital loan may be right for your business, contact us today. Our lending partners can discuss the advantages and challenges of this type of loan with you and determine if it would be a fit. Call us or reach out to one of our listed lenders directly to see if a working capital loan can meet your needs.

Business Lines of Credit

A business line of credit is different than a business cash advance or a lump sum loan. A business line of credit is money set aside by a lender that can be used multiple times by the borrower. A line of credit is a flexible way to have extra capital available for business needs without having to continually apply for loans.When you pay off the line of credit, it is still there available for use again, but you do not continue to pay on it when the balance is zero. These types of loans usually have a lower interest rate that other forms of alternative financing and are more commonly used for short term situations. A business line of credit helps you manage your capital needs at a lower cost and with greater flexibility that other lending options.It is a good idea to obtain a business line of credit before you actually need the cash, so when you do need it, it’s ready for use. Businesses can run into capital shortfalls for various reasons at any given time. Businesses can be affected by seasonal downturns, or have an unexpected issue cause a need for cash. When capital is lacking, a business cannot run normally and many times lack of available cash negatively affects the future growth and viability of a business. With a line of credit available, these situations can be handled without disrupting the business operations.Business lines of credit give you more control over how your capital is distributed. Remember you only pay for the funds when they are in use, so you have the line of credit available at no cost should you ever need it. You decide how much to draw and you can have access to the funds immediately in most cases. You can also use the funds for any reason; there is no restriction on the use of funds.

Business lines of credit can help you with your working capital needs. The application process is quick and our lenders are standing by to help you. A line of credit can help you reduce your cost of capital and can be effectively managed by a business owner with very little hassle. Approvals are fast and the line can be available for use in a matter of days. Contact us now to get started with your business line of credit.

Business Lines of Credit – Success Story

The owner of a software company understood the importance of cash flow, and managed his company with positive cash flow as a major priority. During a successful period of business operation and software sales, money was pouring into the company and it seemed cash flow would never be an issue. When your business is healthy and profits are rolling in, it’s easy to assume you won’t ever have a need for outside funding. But unfortunately, and for many diverse and unexpected reasons, this isn’t always the case.After a successful software release, the company geared up for the next venture. A new client signed on and a fresh round of programming and problem solving ensued. However, the client’s needs were far more complex than those of previous clients, and the release date of the new program was continually pushed further out as more and more issues were uncovered. More employees were hired to handle the increasingly difficult and time consuming tasks, and cash was flying out the door to keep up with the project.The owner of the software company quickly realized that the company was going to be in big trouble in a very short amount of time if they didn’t get a handle on their expenses. The contract stipulated payment in full upon successful delivery of the software, and launch was weeks away at best. Liquidity was becoming increasingly tight as employees were paid, contract workers were brought in, and the lights were kept on in the building.The owner turned to alternative financing to help bridge the gap and keep his company functioning smoothly. He was able to acquire a business line of credit and keep his employees paid until the project was completed successfully. Lessons were learned and growth continued, but a little more smoothly with the help of a line of credit ready and available when the need arose with future projects.

Growth is the goal of many small businesses, and it’s also expensive and can be unpredictable. With a business line of credit, the challenges of growth can be overcome and capital can be available as needed to make taking the next step with your company a reality. Contact us today and see if a business line of credit makes sense for your company.

Transportation Industry

The transportation industry is currently seeing a shortage of available truck drivers. This corresponds with a rise in demand for transportations services, especially in the trucking field. With a rise in demand for service, there is a great opportunity for growth. Growth can be an expensive and time consuming endeavor, and to grow successfully capital has to be available.Transportation companies will need new trucks and other additional equipment including axels, wheels, brakes and additional trailers. Parts and servicing needs will rise, taxes and fuel costs will also increase, and more tolls will need to be paid as more trucks are on the road. Not to mention the need to hire and train additional drivers and other employees who understand the industry and can help your company meet demand.Our transportation lenders understand the challenges that come with running a transportation company and are here to help you manage your business and grow to keep up with the industry. Studies estimate that the demand for trucking and other transportation services will continue to grow over the next decade or more. An expected 30% increase in demand had been forecasted. This presents a solid opportunity, but in order to take advantage of it, you need a funding partner that understands the nuances of the industry and is willing to work with you in your unique and individual circumstances.Our lenders work with taxi services, private car services, delivery van companies, limousine agencies, moving truck companies, bus companies, and many more. Whether you deal in the retail or wholesale market, are a distributor or manufacturer, we have lending partners that understand your business.

Qualified transportation companies can receive funds in amounts up to $2 million to keep up with the growth of the industry. These funds can be available in less than a week in order to help you meet the demands your business faces. Our lenders understand the transportation industry and know what to look for in your business plan to help structure the financing in the best way possible for you and your business.

Our lenders can work with you to structure terms from 12 to 84 months, and payment schedules that meet your needs including seasonal payment structures. They can help with financing new equipment and refinancing your existing equipment. Term loans, lines of credit and lease purchase agreement are all potential funding solutions. Whatever your capital needs, contact us now to see how we can help.

Transportation Industry – Success Story

A family-owned transportation company was dealing with slow payments from its clients. The company had been owned and operated for 30 years and had a fleet of more than 14 vehicles. They routinely dealt with import and export clients moving freight across the country, and had a solid track record of successful deliveries and positive dealings with their partners.Their clients were mostly long-term partners and they intended to pay, but they themselves were waiting on payment from their clients. Instead of risking the relationship and losing clients by demanding payment, they allowed them to pay late. This put them into a position where they were not able to keep up with their own operating expenses.Running into a cash flow issue was not something the trucking company could handle internally, and so they decided to look into alternative financing to find a solution. They had a solid record of accounts receivables that could be verified. The found a lending partner that could use their invoices to structure a loan based on factoring.The funders were able to take the invoices from accounts receivable and turn them into immediate cash for the trucking company. The lenders paid a percentage of the amount due, and then collected on the invoices themselves for the full amount. This enabled the business owner to meet payroll and pay other expenses before they were past due.

After weathering the cash shortfall brought on by slow payment of invoices, through the services of a transportation lender, the company was able to again focus on growth. Their credit was intact, their relationships with their various venders did not suffer, and they did not lose any staff due to inability to make payroll. A short term funding solution not only helped with the immediate cash need, but enable to company to stay on its path to growth.

Liquor Store Financing

Liquor stores experience seasonality, much like other specialty item stores and services. Holiday seasons can stretch a liquor store owner’s cash reserves when large or unexpected orders are made and deliveries to customers are required. With financial assistance in the form of a capital loan, liquor store owners can prepare for upswings in business by stocking up on inventory before a busy season hits.Liquor stores have to have capital to cover payroll and overtime, which can pile up with seasonal fluctuations. Taxes are always an issue to consider, and as business booms the tax burden becomes more substantial. Liquor stores need to have reserves to advertise, especially when seasonal lags negatively affect the volume of sales. Other unplanned expenditures or planned expansions and other project can require additional capital. Obtaining a loan for a liquor store from a bank or other institutional lender can be difficult. A lot of paperwork can be involved and most traditional lenders will require collateral to cover the loan. Liquor stores are often considered high risk to banks, so there are always extra hoops to jump through when approaching banks for a loan. Many liquor store owners don’t even consider the possibility of a loan in tight times because of past negative experiences with banks.We have lending partners who work with liquor store owners and can structure a loan that is right for you and your business. Not only can you get the capital you need, but you can work with the lender to structure flexible repayment options so servicing the loan doesn’t cause problems for your business. A variable repayment plan works well for seasonal businesses, you pay more when you make more, and don’t have the burden of a fixed payment when business is slow due to seasonal slumps.

Our lenders understand that speed and flexibility are what you are looking for to fund your liquor store capital needs. We can help you get approved in a matter of hours, and get the money you need in a week or less. There are no application fees or other upfront or hidden fees, so you don’t pay for anything you don’t get. Instead of wasting time dealing with long applications, you can focus on your business. Contact us today and let us help you put a funding plan together and get the capital you need for your liquor store business.

Liquor Store Financing – Success Story

A liquor store manager ran the business successfully for more than 10 years, and was given the opportunity to purchase the business from the owner when the owner decided to retire. When he purchased the store he kept everything the same, except he changed the LLC to his own company for tax and liability reasons. Nothing else changed, not even the DBA or the name of the business.About a year after taking over the business, the new owner was seeing success and decided to expand operations. In order to do this he needed to build on to the existing store and he needed capital for construction. He had saved some money and cash flow was positive, but he didn’t have enough for the entire project.The new owner went to the same bank that the liquor store had been using for the entire 10 plus years it had been in business. He applied for a loan and was denied because the bank said he had insufficient experience owning the business, and not enough time under his belt. Regardless of the fact that he had managed the business before owning it, and the business was in essence the same company the bank had been working with for years.The new owner turned to alternative financing options, lenders who understand how small business work and what really points to a successful company. The lenders analyzed the liquor store’s cash flow and credit card sales, and were able to structure a business cash advance that covered his expansion needs. This entire process took less than a week and the new owner was on his way to starting his project.

After another two years of booming business, the owner of the liquor store came back to the funding group with a new plan. He wanted to purchase two additional stores in the area. Again, a bank would have taken weeks or months to reach a decision, and would most likely have found a reason to deny the request. Thanks to an established positive relationship, the same lenders worked with him on his business plan and funded him the capital needed to purchase the two stores and realize his dream.

Medical Industry Lending

The goal of a doctor or a dentist, or any other healthcare professional is to take care of their patients. But when a healthcare provider opens or runs their own business, they have many other things to worry about at the same time. Healthcare needs include equipment and supplies, building leases, employee payroll, insurance and many other things which all cost money. In order to run your medical industry business you need capital.You want to be able to focus first on your patients and delivery quality care. When you run into a capital shortfall you shouldn’t have to deal with that all on your own. We have teams of lending professionals in your area who understand the medical industry and can help you meet your capital needs. Working with a lending partner will take the worry out of getting a loan and allow you to focus on your top priority, your patients.Getting started with a medical practice can take time and cost a lot of money. A successful medical practice that is looking to grow will also experience issues that take time and money. A doctor’s office or a dental clinic may run into capital shortfalls for any variety of reasons and simply need cash to cover payroll, leases, or even marketing expenses. Starting, growing and even running your medical business may cause you to need a business loan from time to time.Our lenders understand the challenges you face with your medical business. They can help structure a funding option that works for you now and in the long term. Often times getting a bank loan isn’t an option because cash is needed now, not in 2 months. Or a bank simply won’t approve your loan request for any variety of reasons. Our lenders can get you the capital you need fast and can structure repayment terms that meet your business needs.

Your goals should be the same as your lending partner’s goals, to keep your business running smoothly and growing in the right way. Payment requirement that stretch your medical business to the breaking point don’t make any sense. Long drawn out application processes don’t solve your problem today. Contact us now to get a loan with no application fees or upfront costs of any kind. The paperwork is minimal and the results are fast and flexible.

Medical Industry Lending – Success Story

A medical practice that had been in operation for more than 15 years was operating profitably and had a long track record of success. Due to changes in the business climate of the area, and thanks in large part to the real estate crash and subsequent recession, when their office lease came up for renewal the bank chose not to continue the lease. The medical practice was instead required to pay a balloon payment on the lease in order to sign for a new term.The medical practice was not expecting this payment and was not in a position to cover the cost. They turned to another bank in the area for help, but were told that such a loan was out of the question when the payment would be applied to devalued real estate. The medical practice then turned to alternative financing options and found a much different reception.They contacted a lender that was experienced in dealing with medical practices and also understood the local economy and real estate situation. The analyzed the current value of the building and put together a proposed loan structure that would allow the medical practice to buy out the mortgage and service the loan as it would have a monthly lease payment.The lender was able to do this not based on the real estate value or potential for appreciation on the building. Instead they looked at the medical practice’s tax returns and cash flow statements and determined that the medical practice itself was viable and set up for long term success. The lenders were able to put the funding in place based off of the medial practice’s value and utilizing a personal guarantee from the doctor who owned the practice.

The loan was put in place quickly enough to keep the practice in their current location without any down time. The doctors did not have to come out of pocket for any costs or fees associated with the loan. Payments were set up to meet the needs of the practice and to ensure long term success. If you own a medical practice and need capital, contact us today and see how we can help you meet your cash flow needs.

Restaurant Loans

Owning and running a restaurant can be a very demanding job, especially considering all that goes in to the normal day to day operations of the business. Many restaurant owners manage cash flow very tightly, paying employees and purchasing supplies with not much left over for a rainy day fund. When issues arise that require additional capital, often it is not available from normal functions of the business.Banks consider restaurants to be risky investments, and getting a bank loan to cover an unforeseen capital need can be very difficult and frustrating. Even restaurants that are running well and want additional capital to grow or expand find it difficult to obtaining financing from banks. Alternative financing options exist for restaurant owners, whether they run into issues requiring cash or they simply want to grow and improve operations.Some basics of potential loan options are as follows. You can potentially get up to 200% of the gross average income of the business in the form of a cash advance loan. The term of the loan can be anywhere from 2 to 12 months, with possible extensions beyond that time frame as needed. Approval can be given in a matter of hours with a limited amount of paperwork or documentation required. No upfront fees or application fees will be required, there is nothing out of pocket required to get the capital you need.Repayment structures are put in place by financial experts familiar with the restaurant business, and are customized to meet your cash flow needs. Restaurant loans can be structured against credit card sales or other receivables. The repayment matches your income, so servicing the loan does not bring on any financial difficulties. When payments are tied to sales, you only pay a percentage of what you make and you’re not burdened by unrealistic monthly payment plans that simply won’t work for your growing business.

Let our lending partners help you find the loan product that works best for your restaurant. Instead of spending all of your time filling out applications and running from one bank to another, you should be creating food that inspires rave reviews from your customers. Contact us today and see how we can help you with your restaurant capital needs.

Restaurant Loans – Success Story

A restaurant owner’s son had grown up in the business and learned the ropes by working with his family. He was an entrepreneur at heart and wanted to open his own restaurant and continue the family tradition. With money saved and an investment from his family he purchased an older, run down restaurant and began to renovate the space. As is usually the case with this type of project, he ran into unforeseen issues and the project took longer and cost more than he was anticipating.He reached out to a local bank for a loan, and was denied because he had no track record of his own success. Banks see restaurants as risky investments, and new owners have an especially difficult time obtaining traditional financing. He looked to investors, but was not willing to give up the amount of equity in his business that they were requiring. He also didn’t want a partner that wasn’t going to be a part of running the business on a day to today basis.He turned to alternative financing options and found a lender who would work with him. The lender understood the restaurant business and saw the value in what the new owner was trying to do. Taking into account the equity already in the building, as well as the owner’s experience, the lender contributed a separate down payment towards getting a SBA loan for the repairs and working capital for startup costs.The new restaurant owner was able to secure a loan using his own collateral and the invested capital of the lender. The rate of the loan blended with the rate required by the lenders was under 6% and was set at a 25 year term. These payments were easily managed, and as business began to grow the owner was able to pay off the entire loan early with no prepayment penalty.

Our lenders are ready to work with you to help you fulfill your dream of owning a restaurant or growing your restaurant business. They can structure loan terms and repayment schedules that will work for you and allow you to grow without sacrificing quality of service. Contact us today to see how we can help.

SBA Bridge Loan

An SBA bridge loan is a good tool for business owners who are trying to purchase commercial real estate. Often a piece of land will require a down payment to secure the property before the full loan comes through. When short term cash is needed to cover a funding shortfall in the interim before a loan funds, a bridge loan may make sense. Another good use for a SBA bridge loan is to pay off a delinquent tax note or a tax lien on your business or other assets. Liens and tax issues don’t wait for a loan to fund, so in this case a bridge loan may be a more viable option than taking the penalties for late payments.SBA loans are available through commercial and alternative lenders, and are government backed. There are guidelines in place for how the funds are received and what the money is to be used for once funded. Lenders can step in and provide guarantees for the business against the SBA loan, increasing the likelihood of qualifying for the loan.SBA loans are not made directly to small businesses or the owners; instead they are funded through an intermediary lender. This is not the case in instances of disasters which cause economic damage, but in most other situations. SBA helps reduce lender’s risks, enabling them to loan money in situations where they might otherwise decline a loan request. The purpose is to help small businesses expand and improve local economies.A bridge loan based on future SBA financing is a great way to cover a short term capital need while waiting for a full loan to fund. When the loan comes through, the first use of funds is set aside to pay back the bridge along with any interest or points incurred. Then the remainder of the funds can be used for their specified purposed. This interim funding can help in many situations when cash shortfalls can cause damage to a business.

A bridge loan in usually more expensive than other financing options, and is designed to be short term. Bridge funding will usually only work when other financing has been committed in advance. Some bridge loans, due to the higher level of risk, also require an equity share be given to the lender. Sometimes this equity piece can be bought out at a certain return, other times it remains until the company is sold.

Contact us now to see if a bridge loan will work for your unique capital needs. Our experts will walk you through the process and explain the pros and cons of this type of financing. We can help you make a good decision for your business.

SBA Bridge Loan – Success Story

A contractor had a growing business and wanted to purchase his own building instead of continuing to rent warehouse and office space. He felt renting was throwing money away, and instead wanted his own property that could appreciate over time. He located a building that would fit his needs and negotiated a price to purchase the building.He also set aside a budget for renovations to make the building suitable for his needs. Once the renovation was completed he would only need a portion of the finished space for his business. He planned to lease office space to other companies, and was thus able to create an attractive future income stream.The bank giving the loan to purchase the building required a large down payment amount, and offered a 15 year loan term. The loan and the payment schedule worked well for the contractor’s cash flow projections, but after making the down payment there wasn’t enough cash left over for renovations.The contractor was able to line up a bridge loan against the funding of the purcount, so the blended rate of the financing did not exceed 6%. This was acceptable for his long term strategy so the bridge was a good option in this situation.

Our lenders understand the complexities of bridge loans and how they work with other traditional financing. They can help you put a plan in place to get the long term financing you need to purchase real estate or building, or for other planned capital expenditures. Call us today and see how we can help with your bridge loan needs.
hase loan and the future income stream of the leased spaces in the building. The conventional purchase loan had a rate of about 4% and the bridge loan came in higher but at a lower principal amount, so the blended rate of the financing did not exceed 6%. This was acceptable for his long term strategy so the bridge was a good option in this situation.

Our lenders understand the complexities of bridge loans and how they work with other traditional financing. They can help you put a plan in place to get the long term financing you need to purchase real estate or building, or for other planned capital expenditures. Call us today and see how we can help with your bridge loan needs.

Short Term Business Capital

Short term business capital makes sense for business owners who don’t want to have to deal with a long term loan payment schedule. If the capital need is short term or a one-time instance, and can be paid off quickly, a short term capital loan is a good fit. Usually with these kinds of loans, the payoff amount is a small percentage of daily revenue. This type of structure can be easier for businesses to handle compared to larger monthly payments.Short term loans are usually easier to get and also have the benefit of helping build your credit as you pay them off quickly. If you have need for a larger, longer term loan in the future, a short term loan now can help you be more qualified when that time comes.With quicker approvals, the need for extended paperwork and applications is erased so you can spend more time running your business. Collateral is usually not required for short term business capital loans. This alleviates the headache of arranging assets and setting up liens against non-payment. These loans are designed to help you meet your unique and specialized needs and to get you the capital you need quickly to get things done.Some other benefits of a short term business capital loan include an automatic payment schedule that is set up once and not managed daily or monthly by the business owner. These loans don’t look at credit, so your past issues don’t apply. There are no restrictions on how the funds are used, which gives you flexibility when deciding how to best run your business and accomplish your goals.

If you need to purchase inventory to meet a spike in demand, or hire and train new employees quickly, look to a short term business loan. Our lending experts can help you decide if this is the right step for your business, and they will help you craft a payment plan that works for you. Contact us now to see how we can help.

Short Term Business Capital – Success Story

A staffing company for nurses and physical therapists was working under a state license in a geographical area. Business was going well and the company applied to the state to increase their service area. After going through the application and approval process, they were granted a larger coverage area that nearly doubled their potential clientele.After a ramp up period in the new service area, the company found they were turning patients away and were not able to accept new contracts with healthcare providers because they were understaffed to meet demand. The hiring and training process was time consuming and expensive. The company was paying new hires full salaries during training periods when they were not out working and brining in revenue.In addition, the state payment system had a 60 hold on all billings in a new service area for the first year of a contract. This wait period greatly decreased cash flow, as services were being provided and staff was being paid, but invoices were not being collected for two months. The staffing company had to find a way to cover the costs of growth without decreasing the services they provided to patients and their healthcare partners.They found a viable option for covering the cash shortfall when they looked into a short term business capital loan. The found a lender who would advance them a portion of their accounts receivable based on patient billing. This enabled the staffing company to continue to pay their employees and other bills while waiting for the state to make their payments.

If you are in a similar situation where you are waiting for invoices to be paid, but you need money now, contact us and see how we can help. Our lending partners understand that billing does not always mean direct payment, but those invoices have value now. We have a wide variety of potential funding solutions; let us help you find the one that works best for you and your growing business.

Factoring for Businesses

Factoring is a good example of the flexibility of alternative financing. No debt is taken on by the receiver of the funds. Instead, a business owner actually sells the invoices of the business, or the accounts receivable, to a financier. The business owner does this because they need cash now, and cannot wait the 60 to 90 days it may take for their invoices to be paid.Business proceeds as normal from the customer’s point of view, but the owner doesn’t have to wait until the customer pays their invoice before they get paid. When a business runs into a cash flow problem, factoring can be a good solution to keep things going.The lending party is willing to purchase the invoices or accounts receivable for several reasons. First, they purchase the receivables at a discount, and then collect the full amount from the customers. This is how they make money in this scenario. Factoring companies are also assured of repayment because they have the actual invoice and can demand payment from the customer when the invoice is due. The actual invoice or bill of sale acts as their collateral or guarantee for fronting the funds to the business owner.There are three parties involved in a factoring transaction. The factor is the lending party that purchases the invoices or receivables from the business owner. The business owner is the one holding the invoices, who is willing to sell them at a discount for cash up front. And the debtor is the end customer or client who is being billed for the service or product. The invoice becomes the financial asset in this situation, and is collected on behalf of the factor.

Factoring is commonly used in industries such as manufacturing, where the need for raw product is greater than cash on hand. The company needs raw product to continue to meet demand from its customers, but cannot purchase enough up front. The manufacturing company can use factoring to draw capital out of future invoices in order to purchase the needed product and to keep up with customer demand.

When the factor purchases a receivable, they will usually collect on the payment themselves. At the time the invoice is purchased, the customer is notified that they will be paying the third party instead of the original company they purchased from. The factor can recognize the invoice as a financial asset on their books, and can exchange or promise the invoice as an asset without any restrictions set by the borrower or the debtor.

When a factor takes on ownership of the invoice, this usually occurs without recourse. Meaning it is up to them to collect, and if they are unable to collect they bear the loss. If however the factor receives the invoice with recourse, they can collect any unpaid invoices from the original borrower. Non-recourse factoring is usually discounted more deeply than recourse factoring.

In a factoring scenario, there are fees that will need to be paid. There will be an interest expense paid to the factor for the advance of the money. There is also a fee paid to the factor for services rendered. There is also a bad debt portion held back as a reserve to compensate for any unpaid invoice due to the factor.

Depending on the structure of the factoring scenario, the fees and expenses associated with factoring can be worked into the discount rate paid by the factor to the borrower. This takes away the need for any fees to be paid up front. In most cases, when a business owner considers factoring it is due to a capital shortfall, and paying upfront fees in this situation does not make any financial sense.

Many companies, even financially sound companies, take advantage of factoring from time to time, or as unexpected issues arise. Cash flow is king in running a business, and if all of your cash is tied up in future receivables, you will be unable to effectively run your business. Even if you have enough cash on hand to run your business, you may want to tap into the value of your invoices for expansion or growth of your business.

Yes there is a cost associated with factoring. You will not realize 100% of what you bill for your products or services. But if you have the chance to effectively use capital to grow your business, the tradeoff can be well worth it. Or if you run into financial difficulties, the loss you take on future earnings can easily be justified by avoiding late fees, loss of customers if you can’t deliver what they order, or loss of employees if you can’t meet payroll.

We have many lending partners who understand factoring and can help you get started if you think this lending type is right for your business. Contact us today and let up help you understand the basics of factoring and together we can determine if factoring is right for you.

Factoring for Businesses – Success Story

A company that manufactured cell phone components received two large orders for product. The company had sufficient cash reserve to purchase raw materials and hire enough employees to cover the orders. Using internal financing, they geared up and got the production done and the products were shipped successfully and on time to the two customers. The customers were pleased and all seemed well.They then got another three larger orders, but the customers wanted the product before the invoices sent to the two initial customers were due to be paid. Cash reserves were depleted as a result of the two large orders they had successfully filled. The company had a difficult decision to make – turn down the three large orders, or try to borrow money from a bank or investors to get the orders fulfilled on time.The owner of the company looked into alternative financing and found that factoring could potentially be a solution to the problem. He contacted a factoring firm and spent time on the phone asking questions and going through the funding scenario. When he felt comfortable with the options they presented, he jumped in and took advantage of their services.The factoring company was able to fund him 80% of the total invoice amount of the first two large customers. This was enough cash to buy the necessary raw product and keep the business running productively to meet the next three large orders. The business owner was able to not only keep the doors open, but to keep growing his business in spite of a cash flow issue.

If you have a cash flow shortage and think factoring may be a solution for you, give us a call. We can line you up with factoring experts who will analyze your business and your capital needs and help you come up with a funding scenario that is right for you. You can have the capital you need in a matter of days to keep you company running strong.

Bad Credit Business Loans

Many business owners in today’s economy have less than stellar credit. A business owner with bad credit will have a very difficult time obtaining any kind of loan from a bank or a traditional lender. Alternative funding options exist for business owners with poor credit, and these types of loans usually carry a higher interest rate to make up for the increased risk taken on by the lender when making such loans.When applying for a bad credit business loan, business owners need to make sure all other aspects of their business are in order. If they can present a compelling story to the lender, the can demonstrate why they are worth the risk. A solid business plan outlines use of capital and steps to repayment of the loan. It has financial data showing projections of what the business will accomplish with the invested funds and a timeline to success.Our lending partners are skilled at getting loans approved for businesses that other funding groups turn down. We understand what lenders are looking for and can help you create a story about your business that makes sense and is attractive to lenders. Open communication is vital to a successful funding process. Make sure you anticipate questions lenders will have, and be sure the answers and supporting documentation is at hand.Something that will help you when attempting to secure a bad credit business loan is collateral that can secure the loan. This can be any asset owned free and clear that can be pledged in the case of non-repayment of a loan. The lender will want to see collateral that is liquid and usually at least 110% to 150% of the value of the loan amount.

Make sure to demonstrate how you manage your cash flow. Lenders want to know you will be responsible with the money they loan you and they want to see how the increased capital will affect the bottom line. Be able to show use of funds and create a pro forma worksheet outlining how the capital will positively affect your business. Be able to demonstrate how you will repay the loan with interest without hindering ongoing business activities.

Our lending partners can help you open a line of commination to determine what loan product is best for your business needs. Our partners know what to look for and know what aspects of your business point to future success. Contact us now if you have poor credit, but have a good business that needs capital to grow and thrive.

Bad Credit Business Loans – Success Story

A small family owned auto dealership ran into a difficult situation when one of the sons had some personal financial issues that negatively affected his credit. When the business needed some extra capital the bank they commonly used informed them that they could no longer approve a business line of credit due to the son’s credit issues. They had to seek alternative funding to maintain their operations.They owned the lot that the dealership was on. Using this as collateral they were able to obtain a bad credit business loan from an alternative lender that understood their business and the value of their property. The lender placed a lien against the property and was able to lend the business 65% of the appraised value of the lot. The payment schedule they agreed upon was a monthly payment at 6.5% interest and it was serviced just like a mortgage would be.When asked about this transaction later, the lender did not mention the collateral as the deciding factor in giving the loan. Instead the lender described how the business owners told a compelling story of their investment into the company and their drive to succeed. They showed cash flow management, use of funds, and explained their plan to repay debt. The borrowers thought like the lender did, focusing their analysis on repayment of principal plus interest.The borrowers were very good at keeping lines of communication open. They returned requested documents to the lender promptly, often before end of business on the day of the request. They were quick to answer questions and kept the lender in the loop of any changes to the business and the market as a whole.

The loan is now paid off and the business is growing. The lender has offered to loan against the property again if the need arises. The lender also expressed willingness to lend against any of the owned inventory on the lot now that a solid business relationship has been established. The borrowers were smart and prepared, and they were able to overcome a credit challenge by working with a lender that understood their business and their needs.

Unsecured Business Loans

An unsecured business loan requires less paperwork than a traditional loan. It usually comes with a higher interest rate because it is riskier to lenders. It also has higher points and closing costs associated with the loan. Some benefits of this type of funding are that there is rarely a need for collateral, and business owners with poor credit can still qualify.The application process is simple and approvals are given much faster than bank loans. The funds can be in the business account in a week or less. Borrowers need to be sure to have a solid business plan in place since this will be the main point of focus. Lenders don’t look at credit or collateral; instead they analyze the business itself in determining if a loan makes sense and is worth the risk taken on.These loans are usually given in the form of a working capital loan or a business cash advance. Lines of credit are also common and can be used more than once, as the business needs the capital. Other forms of unsecured business loans include personal loans to business owners, credit cards and corporate bonds.Payment terms can range in length from 6 months to 60 months, but are usually on the shorter end of the scale. The length of the term will be determined by your business and your need for capital. Credit score can be a factor, with higher credit scores getting lower interest rates on the loans. Repayment plans can be set up as fixed monthly amounts, or as a percentage of credit card sales or daily revenue.

Make sure to discuss all aspects of the loan with your lender before moving forward. There are many options available and it’s important to find the one that best fits your business needs. Let us help you find a lender who has the right product for you. We are here to help, so contact us today about an unsecured business loan.

Unsecured Business Loans – Success Story

A small online marketing company was growing quickly and its growth was costing too much to be managed with existing cash flow. New clients were signing up quickly and each new client’s first invoice wasn’t due until 30 days after billing. As new clients signed up and work was done on their sites, the company was losing money every day until the billing caught up with the services provided.The company was online and had no collateral to speak of. They were not in a position to get a secured loan, because there were no hard assets that could be used to secure the loan. They had been in business for less than 2 years, so getting a traditional loan wasn’t a strong possibility. Plus with a traditional loan they would have had at least a month, if not 2 to 3 months, of waiting before funds were available.The company was not set up as an LLC; the owners were using a simple DBA and using their own names, their own invested capital, and their personal credit to fund the business. They did not have any established business credit that a traditional lender would require. This limited the amount of loans available for their needs.They spoke with an alternative lending professional who introduced them to the idea of an unsecured business loan. This loan was not cheap, the interest rate was in double digits and repayment was expected in 120 days. On the surface, this seems like an expensive and unfavorable loan. But in the circumstances, it was just what the company needed to bridge their capital shortfall until their invoices were paid by the new clients.

If you think an unsecured business loan might be right for your business, contact us today. Our lending partners will look at the needs of your business and help you decide what loan product best fits your needs.

Veteran Business Loans

Veterans who own or want to start their own business can receive support and assistance from the VA. Our lenders understand the VA loan process and can help you find a loan product that meets your needs in terms of interest rate and payment schedule. Veterans can also take advantage of special SBA financing options, as long as certain qualifications are met.The VA also stands ready to help current business owners in other ways, not just obtaining a loan. You can reach out to them for advice on how to handle a business problem or growth opportunity. They have business counseling services available to help guide you and your business through a tight economy. Emergency loans are also available as needed on a case by case basis for veterans.Often companies are affected negatively when employees or business owners are called into military duty. There are loan programs set up specifically to help your business in this type of situation. Contact us today if you or one of your employees is called into active service and see what options are available to help.If you are a veteran and have a great idea for your own business, but don’t know where to start to obtain funding, start here. If you are a veteran with a current business that is on the verge of expansion and growth, but you need funds to make that happen, call us today. If you are a veteran with your own business and your find yourself in need of emergency capital, there are programs specifically designed with you in mind. Reach out to us now.

We understand that veterans are a significant benefit to the national economy. Veterans employ more than six millions people in America today. One out of every 10 small businesses is veteran owned or run. Veteran owned businesses bring in more than $1 trillion in annual sales and earnings. We are proud to work with veteran business owners and look forward to helping you find the funding you need for your business.

Veteran Business Loans – Success Story

Congress has approved several programs that benefit veteran business owners or entrepreneurs. One of which is called the Patriot Express Loan Program. This program was designed to help veterans start and run their own business by guaranteeing banks against default when lending to veterans under certain circumstances.A veteran had always had the dream of opening her own pet shop. She looked into various bank financing scenarios, but because of the high-risk startup nature of her endeavor she was turned down at every bank. She was close to giving up on her dream when she heard about the Patriot Express Loan Program.She reached out to a lending partner she trusted who could help her through the process of obtaining a loan through the program. Using the same forms as an application for a regular SBA loan, she took the necessary steps to apply for the funding. She was able to get approved quickly and the funds were made available in less than 3 weeks.Her business plan was already prepared and the location she had chosen was ready to go. The capital she borrowed went into the lease payments, equipment purchases; marketing and hiring two employees to help her get started. Since then she and her pet shop have become a fixture in the neighborhood. The loan is long since paid off and business is good.

Thanks to special programs for veterans, this dream can become a reality for you as well. Our lenders know how to work within the approved veteran lending system and consider it an honor to help you get started on your dream. Contact us today to take the first step.

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