Small Business Loans up to $500,000
Choose the solution that best fits your needs
Trusted by our customers
Top rated in our Industry
Making loans since 2006
In financing provided to small business
We have funded over 2 billion dollars to businesses across America.
Start your application
Begin your application if you need to manage day-to-day expenses, expand your business or have a nice safety cushion. To qualify for a loan you must have enough years in business and enough revenue to support working with a small business lender.
One of our funding specialists will give you a call to go over your application to ensure that you will be offered the best possible funding option for your situation.
Be prepared to submit an updated bank statement of the last 90 days to your funding specialist.
Accept your offer
Receive your small business loan offer. Review the terms and conditions and accept your offer.
Receive your money
We deposit the funds into your account for you to grow your business.
Guide to Small Business Loans
What are the requirements for a small business loan?
Tight lending standards by banks, large financial institutions, makes getting a business loan nearly impossible for a small business. The top requirements for a business to receive a business loan are your time in business, annual revenue, and credit score. The more prepared you are to obtain a business loan from business lender requirements, the faster you will get your funding.
Time in business
You need to have over 1 year in business to qualify for a small business loan. If you do not meet this requirement, please check our small business resources below
A business lender will pay close attention your annual revenue. This will help determine what product you qualify for, the amount of the loan, and the repayment schedule.
Make sure you have a clean credit report before applying for a loan or you will need verify that the information is in fact erroneous; this will impede the process of quickly receiving your business loan. Remember that your businesses payment history has the biggest impact on your FICO score. As always with business loan approval process, credit checks do not hurt your credit score.
How to Get A Small Business Loan:
There is a ton of information out there about small business loans (and small business financing – in general), which can make the process of obtaining a business loan feel overwhelming. What types of loans are there? Which type of business loan is right for you? What do you need to apply for a business loan? What do you need to be approved for a business loan? The questions seem endless, and the sheer volume of information available online can make it very difficult to make the right decision for your business. We get and we’re here to help you make sense of it all so that you can make the right call.
Clearly Understand Why You Need a Business Loan:
Of course you’re looking into applying for a business loan because you need some additional cash to run your business – but, what do you plan to use that money for? Do you need to purchase a new piece of equipment or modernize your technology infrastructure? Are you looking for an “insurance policy” to keep you afloat during the off-season or slow periods? Do you have some repairs you need to make or are you looking to move locations?
For example, if you are in need of a new piece of equipment, a better strategy may be to look into equipment leasing instead of a loan.
What are The Primary Types of Small Business Loans
There are dozens of financing options available to small business owners, but in this piece we are focusing on business loans. There are 3 main types of business loans:
- Bank Term Loans
- Online Term Loans
- SBA Loans
While each of these loans do share similar characteristics, they each differ in their application requirements, how they are underwritten and approved and the type of payment plans available for each
What is a Bank Term Loan:
When you think of a small business loan, a bank term loan is probably what first comes to mind and, because of their existing working relationships, it is often times the first place a business owner will go when looking for financing.
A bank term loan is a loan that comes from a bank or credit union where a specific amount of money is loaned out for a specified period of time, known as a “term”. A typical bank term loan for business purposes will range from 4-10 years, though this can vary slightly, and will usually be dependent on the assets being purchased with the loan. For example, a loan to purchase a new truck for your business will have a different term than a loan used to construct a commercial building.
There is a specified repayment schedule set for the term of the loan (typically monthly) that comes with a fixed or floating interest rate. Traditional bank term loans usually are for amounts over $150,000 and require an in-depth review of your business and your personal and business credit during the approval process.
What is an Online Term Loan:
Similar to bank term loans, you receive a specified amount of money that has to be paid back within an agreed upon amount of time. This, however, is where the similarities end. Terms for an online loan typically range between 3 and 18 months. Because of this short time period, you rarely see an interest rate or APR associated with them. Instead, there will be a fixed cost of capital. Online term loans are also usually for small amounts, have less paperwork required during the application process and creditworthiness is based on a combination of your personal credit score and the health of your business over the past 3-9 months. In addition, you don’t typically need any kind of high-value collateral to secure the loan.
What is an SBA Loan:
There is often a misconception that SBA loans are provided by the Small Business Administration. This, however, is incorrect. Instead, the SBA partners with banks that provide small business loans and it guarantees a portion of the loan, posing less risk to the bank. Because of the guarantee, banks are able to offer much lower rates for these loans. But along with these rates comes a more stringent application and review process. One of major criteria for qualifying is that a business has exhausted all other possible means of financing their business – including getting help from family and friends.
With that being said, if you’re able to qualify for an SBA loan, it is a great option. The SBA offers a variety of loan types, including:
- SBA 7(a) Loan: The most popular of the SBA loan programs, businesses can get up to $5 million in working capital
- SBA CDC/504 Loans: This loan program is used when purchasing owner-occupied commercial real estate
- SBA CAPLines: SBA backed line line of credit
- SBA Microloans: SBA loan program that is geared toward businesses that need less than $50,000 in financing
- SBA Disaster Loans: SBA loan program that provides financing to businesses in areas that have been impacted by a natural disaster.
The best questions businesses ask us.
What financial documents are needed in a small business loan application?
A business lender’s requirements become more extensive when longer terms (and lower prices) are requested. Below is a general understanding of the documents needed for small business loan applications. Remember that small business loans are very extensive applications and intensity of the application depends on the loan product you apply for.
Business bank statements
Bank statements are a document you will always be expected to provide from the last 12 months of business. Be prepared to submit whatever history length a business lender asks for if you want your loan.
Statements of financial position are requested by business lenders. They will request an updated balance sheet to view the ‘financial snapshot’ of your company’s financial health.
Profit and loss statement
Business income statements are commonly known as profit and loss statements. Business lenders will want to know your P&L for the last year, as well as the business Year to Date, YTD, version that has been updated within 45 days. This will determine the cash flow of the business and if your company can meet existing and proposed debt obligations from the underwritten loan.
Business debt schedule
Business lenders want to know if your current business is in debt and the details of that debt. If you do, they will ask for your debt schedule to determine your current cash flow is able to meet existing and proposed deb obligations from the underwritten loan.
Business tax return
Business lenders will request to see your business tax returns from the last year. They will use your business tax return to verify revenue and key performance indicator, KPI, of your businesses financial health. Sole proprietors, LLC, and smaller corporations will be asked to submit paperwork tied into formation and ownership of your business.
What are the details of your business loan offer?
Transparency is a fundamental principle in our business process. When you receive your business loan offer we want to ensure that you understand the terms and cost of the financial product you’ve been approved for. Details you can expect in your offer are fees, borrowing cost, term, and payment schedule and as always, our specialists are ready to assist with any further questions you may have.
How do you analyze my credit report?
Your credit history explains your likeliness of paying back any borrowed money. FICO scores analyze how much of your available credit you have used, your payment tardiness, how long have you been using credit, what is your mix of credit types, and your ability to access new credit.
Why do we ask how long you have been in business?
A business lender will be hesitant to work with a new business that is not able to prove financial stability. New businesses are a risky endeavor for lenders until the business has at least 1 year of continuous operation. The largest risk for the lender is if a new business cannot remain open, they will not be able to complete their loan repayment.
Why do we ask how much money is coming into your business?
Business lenders will use your annual revenue to determine if you qualify for their products. How much money coming into your business will determine the amount and repayment schedule of a small business loan. A lender will not extend your loan if your repayment amount exceeds the amount your business brings in every month. On average you will qualify for a small percentage of your yearly revenue as this reduces the risk to the lender that your business will not have cash on hand to make loan repayment.
What are the fees associated with small business loans?
Cheat sheet of fees you need to understand when applying for small business loans. So when you have a few different loan options on the table, it’s important to think critically about which will be best for you—this means looking at each loan’s cost, term, and repayment structure. But when you are shopping small business loans, it can be very difficult to compare the various products on an apples-to-apples basis.
This is quoted by a percent of the principal amount. An origination fee tells the cost a business lender incurs to make a loan.
A business lender will charge you an application fee to recoup the cost of resources used to run background checks, credit checks, as well as the time invested to underwrite a loan. This fee is normally upfront or when the loan is closed.
Small business loans and SBA loans are not the same. If you have a Small Business Association loan, you pay a guarantee fee. The SBA does not directly create small business loans. A business lender must pay a portion of the SBA loan’s guaranteed amount to the government. This allows the lender to make loans to small businesses that it might otherwise ignore. This fee is often a percent of principal.
Late payment fee
Automated payment schedules prevent lat payment fees. It is no surprise that if your business lender does not ACH your banking account for payment, you are responsible for timely repayment of loan.
Check processing fee
A business lender may request their repayment schedule be processed through ACH. If you prefer to send your payments through another payment method, some companies charge you a fee to process your prefered the payment method. Discuss payment methods with a business lender before completing the deal.
How to choose the best small business loan for you?
The most important decisions in choosing a small business loan are:
- Can you repay the loan?
- Decide your comfort-ability with your repayment schedule
- Have confidence and be diligent deciding on your loan company
- Know all of the potential fees associated with the loan
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