Line of Credit
Business Line of Credit
Get access to cash you need when you need it at better rates than a credit card
FAST AND AFFORDABLE BUSINESS FINANCING:
- Competitive rates
- 5-minute application
- Approval in as little as 4 hours
- No origination fee
MINIMUM BUSINESS REQUIREMENTS:
- 650 credit score
- 2+ years in business
- $180K average annual revenue
Copyright 2022 Strategic Funding Source, Inc. All rights reserved. Kapitus and the Kapitus logo are registered trademarks of Strategic Funding Source, Inc.
Why Consider a Business Line of Credit?
Having additional access to working capital is always a best practice when running a small business. For the times you don’t want or need a large lump sum and the long-term commitments that come with a small business loan; or the times when a business credit card is just not the right choice for the health of your business, a business line of credit may be exactly what you need. With an expedited application process, affordable rates, and flexible repayment schedules (weekly or monthly), having reliable and continuous access to cash flow has never been simpler.
Stabilize Cash Flow
Have access to working capital reserves to manage daily operations or cover unexpected business expenses, even during your slow seasons.
Small Business loans require payment even if you aren’t using the cash; but with a business line of credit, you only pay for what you use.
Easy Access
Lines of credit have less stringent requirements than a term loan. Businesses can qualify with a 650+ personal FICO, and funds can be disbursed in as little as 24 hours.
Lines of credit are a revolving type of financing, meaning that businesses can pay off balances as they go and then use the credit again as needed.
Save Money
While the overall interest rate of a line of credit can be higher than a term loan, you only pay interest on the portion of the available money you use.
Credit card rates and fees can be astronomical, but rates associated with a line of credit are typically lower, starting at just 13%.
Increase Adaptability
Whether you’re facing a crisis or an opportunity, a line of credit gives you on-demand access to working capital to navigate almost any situation.
Business seasonality can cause a cash crunch during slow times. Lines of credit all you to balance cash flow off-season and keep your operations running smoothly.
Business Lines of Credit – What You Need to Know
Running a business can make life very unpredictable, with unforeseen equipment repairs, seasonality disruptions, unanticipated growth, and everything in between. But with a business line of credit arranged by Kapitus, unpredictability does not have to mean a lack of sustainability and stability. You have the flexibility to cover business expenses that are too large for a credit card at a lower interest rate or cost too little for a small business loan while only paying interest on the amount you use. Having continuous access to working capital and ensuring balanced cash flow – even during the craziest of times – has never been easier.
Do I Qualify for a Line of Credit?
Qualifying for a Line of Credit is not as difficult as you might think! Depending on the amount you are looking to secure, there are minimal criteria that you must meet (perfect credit not required!), including:
- You must have a personal credit score of at least 650
- You must have established business credit
- Your business needs to have been operating for at least 2 years
- You need to have an average annual revenue of $180,000
How To Apply?
Applying for a line of credit through Kapitus is simple, taking only minutes to get started. Simply fill out our online application, upload your three most recent bank statements…and you’re all set! Upon receipt of your application and bank statements, your Financing Specialist will be in touch letting you know the credit line size for which you qualify and walk you through the next steps.
Who Should Use a Line of Credit?
Kapitus lines of credit are available to businesses in virtually every industry and are useful when unexpected expenses arise. Here are the industries that most frequently use our Line of Credit Program:
- Business Services
- General Contractors
- Trucking
- Real Estate
- Retail
- Plumbing & Electric
FAQs
Q: Does a business line of credit impact my personal credit score?
A: In most cases, there will be a hard credit pull performed when you apply for a line of credit to determine your credit limit, so just applying can have a short-term negative impact on your credit score. In addition, line of credit lenders typically report to the three major credit bureaus, which can help to increase your score when payments are made on time. Finally, the amount of your revolving credit line that you use at any given time can have an impact on your credit utilization ratio (similar to the way a credit card would), which does count for 30% of your credit score in the current models used by FICO.
Q: How does a business line of credit work?
A: A business line of credit works similarly to a credit card. You will be approved for a certain amount and you will be able to draw on and repay funds as many times as you wish, so long as you don’t exceed your credit limit.
Q: How long do you have to pay back a line of credit?
A: Payment terms for a line of credit are very similar to those that you see with a credit card or other revolving credit options. You only pay the principal and interest on the part of the line that you’ve used. Once you’ve paid back what you’ve drawn, that amount is available for use again. Different from credit card payments, is that your payment schedule can be daily, weekly or monthly (though, it usually falls under weekly or monthly payments), depending on the product you select.
Q: How long does it take to get approved for a business line of credit?
A: Getting approved for a line of credit can be an extremely quick and painless process. As long as you have all your documentation ready to submit, you can get approved within 24 hours. Upon approval, you can expect to get access to your credit line, again, within 24 hours.
Q: How large of a line of credit do I need?
A: Overall, the size of your credit line is dependent on what you plan to use the funds for, and only you can determine this amount. However, it’s important to remember, that the size of the line that you would like to get and what you are approved for may be very different. When determining your credit line size, several factors are considered, which can include:
1. Your revenue
2. Your time in business
3. Your business and personal credit scores
4. Your industry
Lines of credit arranged through Kapitus can range from $10,000 to $250,000.
Q: How is a business line of credit different than a business credit card?
A: There are a few major differences between a business line of credit and a business credit card. For starters, a standard business credit card functions similarly to a personal credit card, in that you can’t just draw cash directly from the card account into your operating account to cover an expense (i.e. you can’t use a business credit card to cover your payroll). When it comes to credit limits and terms, business credit card approval is mostly based on your personal credit score. A line of credit, on the other hand, offers more flexibility on approval amounts, typically has lower interest rates, and can be used to pull cash into your operating account to cover operational expenses or address seasonal revenue shortages. There are, however, more defined terms on a line of credit. While a business credit card will continue to revolve so long as you make the minimum payment, a line of credit must be paid back within the amount of time agreed upon with your lender and expires after an agreed period. Both credit cards and lines of credit have a credit limit that can’t be exceeded.
If you’re trying to decide between a business line of credit or a business credit card, think about what expenses you are looking to get covered. If the expenses require cash-on-hand, then a business line of credit would be a better option for you. However, if the expenses can be covered with credit, you may prefer to go with a credit card.
Resources – Understanding Business Lines Of Credit
The Benefits of Business Lines of Credit
For small business owners that have ongoing business expenses and uneven cash flows, a business line of credit may be the most convenient and useful financing method in your toolbox…
Pros and Con Of Secured Business Line of credit
Before you apply for one, however, one of the first questions you need to ask is whether a secured or unsecured business line of credit is for you…
READ MORE
How to build business credit, and why it’s so important!
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5 Things You Don’t Know About Working Capital But Should
Working capital – the amount left over after subtracting current liabilities from current assets – is the lifeblood of a small business.
Purchase Order Financing
Purchase Order Financing
Financing to Get Your Suppliers Paid & Orders Fulfilled
FAST AND AFFORDABLE BUSINESS FINANCING:
- Monthly factor rates as low as 1.25%
- Flexible terms to fit your business needs
- 5-minute application
- Approval in as little as 4 hours
EASY ACCESS TO CASH FLOW:
- No personal credit requirement
- Fund up to 100% of the total cost of goods
- Factoring lines from $200K – $7 Million
Copyright 2022 Strategic Funding Source, Inc. All rights reserved. Kapitus and the Kapitus logo are registered trademarks of Strategic Funding Source, Inc.
Why Consider Purchase Order Financing (PO Financing)?
PO financing is a short-term financing option where a lender will pay your suppliers directly to cover materials and production of your order. In some cases, if your gross margin is expected to be large enough, 100% of the cost can be covered. This financing product allows you to accept orders that you may not have been able to otherwise, without you having to take on large amounts of new debt.
Grow Your Business
The goal of most companies providing physical goods is to grow – they want to get their product everywhere. However, the cost of materials and production can be prohibitive, taking up all available working capital. PO financing allows you to take on these big orders and grow your business without sacrificing cash flow.
Keep Your Reputation
One of the primary ways to ensure a successful business is by fostering good relationships with clients, vendors, and employees alike. PO financing makes it possible to fulfill orders and cover supplier costs without impacting your ability to cover operational costs (like payroll) – keeping your relationships and good reputation intact.
Improve Cash Flow
With PO Financing, you’re able to accept and fulfill orders without dipping into your existing funds or taking on new debt. This means you can continue to bring in sales revenue with little to no upfront costs and no interruption in day-to-day operations due to a lack of working capital.
Outsource Invoice Collection
A little recognized benefit of PO financing is that your lender will actually take on the responsibility of payment collection from your customer order. This saves you the time, resources, and money you would typically need to put into following up on client invoices.
Everything you need to know about PO Financing
At first glance, PO financing can seem a bit complicated, involving many parties – you, your lender, your suppliers, and your customers. But, in reality, it’s quite simple and a great financing option for businesses that don’t have available cash, can’t (or prefer not to) get a business loan, and/or have limited credit with suppliers. Here’s how PO Financing works, step by step:
1. A customer places a purchase order with you for the product.
2. You get a written proposal from your supplier on the cost of the order.
3. You apply for PO Financing.
4. Once approved, your financing company submits a purchase order to your suppliers.
5. Your supplier sends your financing company an invoice.
6. Your financing company pays your supplier.
7. The supplier fulfills the order and provides your customer with the goods.
8. You invoice your customer and also send the invoice to your financing company.
9. Depending on your agreement, your customer pays you and you pay your financing company, or your customer pays the financing company directly, and your financing company will send you your remaining balance minus any fees.
Yes, there are a few more steps to the process than what comes with traditional financing; but the entire transaction is seamless, and the outcome is a win-win for all. You make a great sale, your suppliers get paid and your customers get their product.
Do I Qualify for PO Financing?
One of the best things about PO financing is that, similar to invoice or accounts receivable factoring, approvals are not based on your personal credit score. Because funds are being fronted directly to your supplier, and payment is received directly from your customer, approvals are based on their creditworthiness.
General approval requirements for PO Financing include:
- You must have a B2B (business-to-business) or B2G (business-to-government) company.
- You must provide physical goods.
- Your supplier must have good business credit.
- Your customer must have good business credit, trade, and payment history.
- Your order must have a profit margin of a minimum of 1 percent.
How To Apply?
Applying for PO financing arranged by Kapitus® is simple, despite the number of steps that come along with this type of financing! Completing the application should only take minutes.
To get started, simply fill out our online application, upload your three most recent bank statements, the Purchase Order from your customer, and cost estimate from your supplier…and you’re all set! Once your package has been submitted, a Kapitus Financing Specialist will be in touch with a decision and next steps.
Who Should Use Purchase Order Financing?
Kapitus PO Financing is available to any B2B and B2G business that provides physical goods to its customers. Here are the industries that most frequently use PO financing:
- Manufacturers
- Wholesalers
- Distributors
- Outsourcers
- Resellers
FAQs
Q: What is factoring?
A: Factoring is a type of financing where a lender provides a monetary advance based on outstanding invoices for services and goods that have already been provided. They do this by purchasing invoices from you at a discounted rate. Factoring is used to mitigate cash flow problems that arise from slow-paying customers.
Q: How is PO financing different from factoring?
A: Invoice factoring and purchase order financing (also sometimes referred to as supplier financing, purchase order funding, trade financing, or accounts payable financing) are often confused with one another. However, there are some very significant differences:
- Timing: You use invoice factoring after you have submitted an invoice to your customer for goods and/or services already provided, while purchase order financing is used prior to delivering finished goods to your customer. Essentially, factoring is used for accounts receivables, and PO financing is used to cover the supplier costs for an orders that has not yet been filled.
- Uses: Invoice factoring can be used by companies that provide goods and/or services, whereas purchase order financing is available only to those companies that provide physical goods.
- Release of Funds: With invoice factoring, funds are given directly to you, the business owner. With PO financing, funds are dispersed directly to your suppliers to provide materials and produce the goods.
Q: Am I required to finance all of my customer’s purchase orders?
A: No, there are no requirements around which purchase orders you finance. Most businesses choose to use PO financing only on those orders that would place a significant and debilitating strain on their available cash flow.
Q: How much of my supplier costs can I get covered?
A: The amount of supplier costs that you can get covered through PO financing depends upon the expected profit margin of the order and the creditworthiness of both your suppliers and your customer.
Resources – Understanding Purchase Order Financing
Should I Use Purchase Order Financing? When Does It Make Sense?
There is a great deal of misinformation and erroneous assumptions around purchase order financing. You know what a purchase order is but how do you finance it?
Purchase Order Financing For Government Contracts
If you do decide to try and take a slice of the government pie by bidding on a contract, you’re most likely going to need PO financing, since most government contracts require a large amount of materials…
The 5 Fundamentals of Alternative Financing
What are your alternative financing options?
Every business needs capital to sustain and grow, and alternative financing can help when you most need it. you need.
Financing for Business Expansion
How do you find financing for business expansion, when the time is right?
Business Loans
Kapitus®Small Business Loans
Get the working capital loan you need to run the business you want
FAST AND AFFORDABLE BUSINESS FINANCING:
- Competitive industry rates
- Flexible terms to fit your business needs
- 5-minute application
- Approval in as little as 4 hours
- Funding in as little as 24 hours
MINIMUM BUSINESS REQUIREMENTS:
- 625 credit score
- 2+ years in business
- $250K average annual revenue
Copyright 2022 Strategic Funding Source, Inc. All rights reserved. Kapitus and the Kapitus logo are registered trademarks of Strategic Funding Source, Inc.
Why Consider a Business Loan?
Business loans are one of the most versatile forms of business financing available to owners on the market today. They are available in a large range of sizes, come with an array of payment options and there is no limit on the way you can use the funds for your business. Whether you’re looking to grow, maintain daily operations, or build yourself a cash flow safety net to manage the unexpected, Kapitus can help you build the right loan product for your unique business needs.
Business Flexibility
Kapitus business loans can be used for any business purpose, unlike business loans provided by traditional lenders and the SBA which often have restrictions on use associated with them.
With competitive rates and a variety of terms and payment plans available, you have the ability to build out a loan product that is created specifically for your business needs.
Wallet-Friendly
Competitive rates mean you might end up paying less than a traditional bank loan, keeping more of your hard-earned revenue in your business account, not ours.
With a range of payment terms available, we will work with you to build a payment plan that works with the ebb and flow of your business revenue.
Time Sensitive
Additional bandwidth and free time are not a perk that comes with running a small business; so we established an underwriting process that requires minimal documentation for approval.
With an expedited underwriting process, you can receive approval in as little as four hours and have the funds in your bank in less than three days, so you can get the working capital you need quickly and securely.
Business Loans – What You Need to Know
Business loans are a great working capital resource, regardless of the current priorities of your business. Whether your focus is expanding your business, ensuring you have cash reserves for slow periods or unanticipated disruptions, or you’re looking for additional cash flow to help maintain daily operations, you’ll be able to find exactly what you need with a Kapitus Small Business Loan.
Do I Qualify for a Business Loan*?
Qualifying for a business loan through Kapitus is easier than you think! Depending on the amount you are looking to secure, there are minimum criteria that you must meet (perfect credit not required!), including:
- You must have a personal credit score of at least 625.
- Your business needs to have been operating for at least two years.
- You need to have a minimum of $250,000 in annual revenue.
Kapitus financing products vary by state, so business loans may not be available to everyone. Not to worry! We have a product for every business in every state. Please contact a Kapitus Financing Specialist to discuss your particular circumstances.
How To Apply?
The Kapitus business loan application process is quick and painless! It should only take you about 5-10 minutes to get your full application package submitted. Simply fill out our online form, and provide your three most recent bank statements, and…that’s it, you’re done! Once your package has been submitted, a Kapitus Financing Specialist will be in touch with a decision or, when necessary, to learn more about your business. Once approved, your Financing Specialist will work with you to build out terms and a payment plan that works best for your business.
Who Should Use a Business Loan?
Kapitus business loans are available to businesses in almost every industry (though some exclusions do apply) and are useful when unexpected expenses arise. Here are the industries that most frequently use our Business Loans:
- Personal Services
- Business Services
- General Contractors
- Restaurants
- Retail
- Specialty Trades
FAQs
Q: What is the minimum credit score needed for a small business loan with Kapitus?
A: At this time, the minimum credit score requirement for our small business loans is 625.
Q: What are the current interest rates on Kapitus Small Business Loans?
A: When calculated, our small business loans have competitive industry rates. However, our loans don’t technically have a rate; instead, we charge one fixed price that does not change. Our pricing may change depending on a number of factors, including your credit score, revenue, your industry, and terms of the loan you choose. Because our loans are short term, when you calculate the “rate,” it will be higher than some other options, but the overall cost is often much less than long-term financing options such as SBA loans or equipment financing.
Q: How are repayment terms structured for business loans?
A: Depending on which financing products you qualify for, Kapitus offers up to a five-year term and monthly, bi-weekly, weekly, and daily payment options. However, many of our customers use our business loans for short-term working capital needs and opt for a shorter payback period, making daily or weekly payments.
Q: How do general small business loans differ from standard SBA loans?
A: There are many differences between a general business loan and an SBA loan. The most obvious of these differences is that an SBA loan is backed by the Federal Government, which takes some of the risk associated with the loan away from the lending institution, resulting in much lower interest rates. However, because the loan is backed by the government, qualifying is much more difficult, and the application and approval processes are much longer. In fact, approval for most non-PPP SBA loans is contingent on a business owner having exhausted all other financing options along with being able to show that they have invested their own time and money into the business.
Q: What can small business loans be used for?
A: Small business loans can be used for virtually any purpose – from covering day-to-day business expenses to purchasing new equipment to refinancing existing debt. However, with a wide variety of financing options available to business owners, you should always do your research on which financing options are best for each of your needs. For example, just because you can use a business loan to purchase equipment does not mean that you should, equipment financing may be a better fit.
Q: How is using an alternative lender to get a business loan a better option than traditional banks?
During the 2008 recession, online lenders gained prominence as an alternative option for many small businesses to obtain financing when traditional bank funding opportunities dried up. Since then, these lenders have become a common-place resource for business funding. While your specific needs should dictate where you seek financing, there are some well-known advantages to using alternative lenders, including:
- Qualification Requirements: Alternative lenders tend to have less stringent requirements for approval. Typically, alternative lenders have lower requirements for an applicant’s revenue, time in business, and credit score.
- Shorter Timelines: Because of the applications are shorter and fewer documents are required for underwriting, alternative lenders can review, approve and fund business loans in a matter of days – sometimes even in as little as 24 hours depending on how quickly you’re able to get your full application package submitted.
- Loan Size Flexibility: Alternative lenders have more flexibility with the funding amounts they will approve, so they are able and willing to finance both smaller and larger amounts than traditional lenders. For example, many banks will not consider loans above $1 Million and the use of those funds is often limited. However, with many alternative lenders, loans are available in amounts up to $5 Million and the funds can be used for any business purpose. If you need less capital, many banks aren’t as willing to lend out lower amounts because it is not economically feasible for them to do so, while alternative lenders are willing to finance amounts as low as $10,000.
- Higher Approval Rates: Because of their easier qualification requirements and simpler application process, alternative lenders approve financing for more small and medium-size businesses than traditional lenders.
Resources – Understanding Business Loans
What Small Businesses Should Do in Light of Another Painful Rate Hike
More bad news for small business owners – for the fifth time since March, the Federal Reserve Board has hiked the overnight rate, this time by 75 basis points (0.75%) as part of a year-long effort to tame inflation… READ MORE
Small Business Loan Application Checklist | Updated for 2022
Building and running a small business is hard. It takes conviction, leadership, sound management and, every so often, a much-needed injection of financing. In both good and lean times businesses are often faced with the decision to pursue some type of financing…
Best Sources for Short-term Finance (Updated For 2022)
Every small business owner deals with capital and cash flow management, which can include capital shortages. Whatever the reason for a shortage may be, it’s the owner’s job to find ways to infuse additional capital into their business when one occurs. Short-term financing can be a viable solution in such instances…
5 Key Reasons to Forecast Your Cash Flow
Projecting your cash flow can help you plan for the future, avoid unexpected shortfalls and even qualify for a small business loan.
Many overextended small business owners are weary of cash flow analysis.
Where Businesses Can Find Small Loans
Every day, business owners across America need small loans to help keep their business running.
What is Staffing Factoring And How Does it work?
Staffing factoring is a subset of invoice factoring, a type of business financing commonly used by several industries to maximize cash flow and more effectively fund day-to-day operations by allowing businesses access to expedited cash without taking on debt…
Helix Healthcare Financing
Kapitus Helix® Healthcare Financing Program
Business Financing Created Exclusively for Medical Practices
FAST AND AFFORDABLE BUSINESS FINANCING:
- Competitive industry rates
- A wide selection of financing options
- Flexible terms to fit your business needs
- 5-minute application
- Approval in as little as 4 hours
- Funds in as little as 3 days
MINIMUM BUSINESS REQUIREMENTS:
- 625 credit score
- $250k average annual revenue
- Licensed Healthcare/Medical Practitioner
Copyright 2022 Strategic Funding Source, Inc. All rights reserved. Kapitus and the Kapitus logo are registered trademarks of Strategic Funding Source, Inc.
Why Consider Helix Healthcare & Medical Practice Loans?
Paragraph: Having additional access to financing is critical for any healthcare practice – whether you’re a general practitioner, a pediatrician, a dentist, and everything in between. For the times when your business credit card is not the right fit, the Helix Healthcare Financing Program offers you financing alternatives with risk models, underwriting processes, terms and payment plans that address the specific nuances associated with running healthcare and medical practices.
Variety of Financing Options
From traditional term loans for medical practices to equipment financing for new technology, to lines of credit – you can choose the right option for your practice’s needs.
With flexible financing amounts, extended terms available, and customizable payment plans, you’re able to build out a financing plan that bridges gaps between insurance payouts.
Easy Access & Quick Approvals
Our proprietary risk models consider the irregularity that comes along with practice revenues, and the implications this can have on credit scores; meaning less stringent credit and revenue requirements.
As a healthcare or medical professional, you’re busy. You don’t have time for a long and complicated approval process. Our simple application and specialized underwriting significantly reduce application prep and approval wait times.
Save Money on Financing Costs
The overwhelming majority of practice owners are forced to resort to using business credit cards with exorbitant fees and to cover expenses that credit cards are not designed for. With Helix Healthcare Financing, you can qualify for the preferred pricing we offer medical professionals.
Many of the financing options available through the Helix Healthcare Program can be used to consolidate existing debt, allowing you to lower your financing costs resulting in significant savings and increase cash flow.
Enjoy Cash Flow Health
Delayed insurance reimbursements, bringing in new patients, and mandated medical equipment upgrades no longer have to be a source of stress or reasons to deplete your cash reserves.
If your focus is on meeting long-term growth goals, Helix Healthcare Financing can be used to hire staff, cover payroll, run marketing campaigns, and expand your practice without detrimentally impacting cash flow.
Kapitus Helix Healthcare Program – What You Need to Know
Access to financing is critical to successfully running an independent healthcare practice. With Helix Healthcare Financing, you have access to a variety of financing options to give you the options you need to keep your practice successful. We can offer flexible financing amounts, rates, terms and repayment options (including variable repayment amounts, or fixed payments on a daily, weekly or, through trusted partners, monthly payments) that allow you to build a financing plan to cover both the short – and long-term needs of your practice.
Do I Qualify for Helix Healthcare Financing
Qualifying for Helix is not as difficult as you might think! While qualification requirements will vary depending on the amount and type of financing you are looking to secure, there is minimum criteria:
- You must have a minimum 600 FICO
- You practice must be at least 6 months old
- You must have an average monthly revenue of $120,000
- You must be a licensed practitioner
How To Apply?
Applying for Helix Healthcare financing is quick and easy. It takes about 10-15 minutes to get started. Simply fill out our online application and upload the required documents! Upon receipt of your initial application, your Healthcare Financing Specialist will be in touch, letting you know the financing options for which you qualify and walk you through the next steps.
Who Should Use Helix Healthcare Financing?
Helix Healthcare Financing was created for all professionals in the healthcare industry (including those who help our furry and scaly friends) who are running an independent practice. Here are the practice areas that most frequently use Helix Healthcare Financing :
- Ambulatory, Surgical & Emergency Centers
- Dentists
- Family Planning Centers
- General Practitioners
- Home Health Care Services
- Mental Health Practitioners
- Optometrist
- Pharmacies
- Podiatrists
- Veterinary Services
Top 3 Reasons to Choose the Helix Healthcare Financing Program
1. Finally – You Have Options!
Due to the unique and very regulated nature of running a practice, access to traditional forms of financing has historically been difficult for healthcare and medical professionals. And alternative options coming onto the market over the last two decades weren’t much better. Kapitus saw there was a need for financing programs created specifically for healthcare practices that took into account these unique needs and created Helix Healthcare Financing.
2. You Can Keep Your Independent Practice…Independent
It’s a sad fact that all too many independent practices are being forced to close due to the costs of overhead, insurance, adhering to regulations and staying on top of technology improvements and requirements. Without truly consistent cash flow, keeping up with these expenses can be daunting. Helix Healthcare Financing provides you a reliable and trustworthy financial partner to help you manage issues so you can keep your practice independent and successful.
3. No Financial Smoke & Mirrors
With Helix, what you see is what you get. We believe in being up-front and transparent about every aspect of the application and funding process – from fees you may encounter to the costs of financing, to repayment terms.
FAQs
Q: What is medical practice financing?
A: Medical practice financing is a variety of loan and other funding options made available to independent practices to keep them running and growing. It is available to help bridge gaps in insurance payouts, to upgrade new equipment, and help manage the day-to-day operations that come along with running an independent practice.
Q: How would I use medical practice financing?
A: Medical practice financing is available to cover any expense that comes along with operating a practice and to help regulate cash flow. Depending on the product you choose, you can use medical practice financing to purchase new equipment, cover your insurance premiums, expand or renovate your practice, hire new staff, cover payroll, consolidate existing debt, etc
Q: Is collateral required for medical practice financing?
A: Whether or not collateral is required is dependent on the type of financing you are looking to secure. For example, a medical equipment loan does not require you to use existing fixed assets as collateral because the equipment, itself, is considered the collateral. If you are looking for a working capital medical practice loan, security from your personal assets is not typically required. But, if you opt for a government-backed SBA loan, you could be required to offer personal real estate as collateral depending on your intended use of funds.
Resources – Understanding Medical Practice Financing
7 Tips and Strategies for Marketing Your Healthcare Practice
Marketing your healthcare practice is essential in attracting new patients and keeping your business “in the black”. Yet, putting together the right strategies, plan and technology to keep a busy practice growing can be challenging.
5 Tips for Strategically Growing Your Healthcare Practice
If growing your healthcare practice is on your agenda, it’s important to prepare for every challenge. You may encounter obstacles along the way that can make expansion more difficult.
Decrease Medical Practice Overhead In These 7 Areas
As an independent practitioner, you focus on providing high quality healthcare to your patients. But, you’re also a business owner with a wide range of expenses.
5 Steps to Improve Your Medical Practice’s Local SEO
The age of the internet has dramatically changed how people receive medical information. When it comes to an initial medical diagnosis, most will forgo a doctor’s visit and instead go online, type in their symptoms and search through the results for a medical practice.
Overcoming Claim Rejections and Insurance Denials
Are your staff’s efforts overcoming claim rejections costing your practice money?
According to a recent study by the Medical Group Management Association (MGMA), reworking a rejection or denial claim averages a cost of $25.
Beyond the Exam Room: How a Top Chicago Cosmetic Surgery Practice Manages Payment for Care
Most cosmetic surgery practices operate far from primary care’s recurring billing models. Patients come and go and are often one-and-done, creating a practice that’s more transactional than built on repeat business.
Revenue Based Financing
Revenue-based Financing
Business Financing Based on Business Sales…Not Personal Credit
FAST AND AFFORDABLE BUSINESS FINANCING:
- Competitive industry rates
- A wide selection of financing options
- Flexible terms to fit your business needs
- 5-minute application
- Approval in as little as 4 hours
MINIMUM BUSINESS REQUIREMENTS:
- 625 credit score
- 2+ years in business
- $250k average annual revenue
Copyright 2022 Strategic Funding Source, Inc. All rights reserved. Kapitus and the Kapitus logo are registered trademarks of Strategic Funding Source, Inc.
Why Consider Revenue-based Financing?
Sometimes, you just need $20,000 to run a marketing campaign. Or you may need $45,000 to buy some inventory. Or maybe your roof started leaking, or your AC system went down, and you need cash FAST to make repairs. Or, maybe, you fall into an industry that traditional lenders just don’t understand or deem too risky, so they automatically disqualify you…because of your industry. In these and many other situations, revenue-based financing can provide the working capital lifeblood you need.
Rapidly Respond
Revenue-based financing allows you to take advantage of opportunities that you otherwise would have had to miss out on because of a lack of available funds.
Both big and small disasters happen throughout the life of a business, revenue-based financing can quickly give you the money you need to quickly address any unexpected issues that arise.
Holistic Underwriting
Unlike traditional loans, a lower credit score will not automatically disqualify you. Revenue-based Financing looks at your business’s stability and success overall.
There are very few industry limitations with revenue-based financing and our financing specialists are trained to understand the ins and outs of many industries that are typically turned down for loans.
Personal Security
Absolute personal guarantees are not required, nor will your home be used as collateral.
Revenue-based financing is one of a few types of business financing that limits the personal exposure of the business owner and looks to the business – not personal assets or credit score – when making underwriting decisions.
Expedited Access
Because your sales history is the most heavily weighted when it comes to approval, there is very little documentation needed. In some cases, all you will need to submit is three months of business bank statements.
With little documentation required, the underwriting process can be very quick, and you can receive approval in as little as three hours. Once approved, you can have the funds in your bank within 24 hours.
Everything you need to know about Revenue-based Financing
Revenue-based Financing is not a loan and therefore does not come with a fixed term or an APR. Instead, with revenue-based financing, a party purchases the future output of a business at discount. As you make those sales or your accounts receivable pay during your normal course of business, you pay a percentage of your revenue to the party that purchased your receipts. In addition to this, there are a few major differences between revenue-based financing and loans:
Cost of Financing:
As with loans, there is a cost associated with revenue-based financing. But, with this option, instead of an interest rate that accrues every day, it comes with a total, fixed cost of capital that remains the same regardless of how long it takes to pay it back.
Payments:
Traditional loans typically come with a fixed monthly payment for a fixed amount of time. With revenue-based financing, you can:
- use a fixed ACH payment that debits an amount from your bank account based on the estimated receipts. ACH payments can be made daily, weekly, or biweekly.
- have your credit card processor split credit card batches and provide a percentage of revenue purchased to Kapitus. Split batch payments are made daily.
- use variable ACH payments where you link your bank account to Kapitus and our proprietary system will adjust your payment to your revenue every day.
With credit card splits and the variable ACH payments, the amount of your payment is based on a fixed percentage, so the amount can fluctuate. If your sales are lower, your payment will be lower. If your sales are higher, your payment will be higher.
Terms:
Loan terms are more rigid – if a payment is due that you cannot make you will be in default – and often come with a pre-payment penalty. Because revenue-based financing is the purchase of a percentage of sales, there is no term and if the sales don’t materialize, you are not obligated, and because the cost is fixed, there are never pre-payment penalties assessed.
Do I Qualify for Revenue-based Financing
Of all of our financing options, revenue-based financing is the easiest to qualify for! Depending on the amount you are looking to secure, the criteria is minimal with your sales history carrying the most weight:
- You must have a minimum personal credit score of 575
- Your business needs to have been operating for at least 1 year
- You need to have a minimum of $10,000 in monthly sales
How To Apply?
Applying for revenue-based financing with Kapitus is fast and painless! It should only take about 10-15 minutes to complete the application and provide the required documents. To get started, simply fill out our online application, upload your three most recent bank statements…and you’re all set! Once your package has been submitted, a Kapitus Financing Specialist will be in touch with a decision or, when necessary, to learn more about your business.
Who Should Use Revenue-Based Financing?
Kapitus’s revenue-based financing products are available to businesses in virtually every industry. The industries that most frequently use revenue-based financing are:
- Personal Services
- Business Services
- General Contractors
- Restaurants
- Retail
- Specialty Trades
Top 3 Reasons to Choose Kapitus
1. We silence the noise on the internet
There is SO. MUCH. INFORMATION. on business financing available through the internet. Determining what information is correct, who is trustworthy, and what financing options are right for you can seem like an impossible task. We’re here to put an end to the noise. As specialists in the small business financing industry for close to 15 years, we’ve stayed on top of this ever-changing landscape, and our financing specialists rigorously trained to have in-depth knowledge on how each financing product works and the situations in which each product is best applied.
2. …And in your head
We value and use data just as much as the next guy. But we also know that businesses are run by humans, and many times a fully data-driven scenario is not appropriate. This is why we take a consultative approach when helping small businesses seeking financing. We listen to your situation. We get a thorough understanding of your needs. We prioritize your wishes around the type of funding you are looking to acquire. We put your mind at ease, by helping you find the best possible financing solution for your business.
3. No Financial Smoke & Mirrors
With Kapitus, what you see is what you get. We believe in being up-front and transparent about every aspect of the application and funding process – from both the standard and one-time fees you may encounter to your cost of capital, to the repayment terms of your loan.
FAQs
Q: Is Revenue-based Financing Right for My Business?
A: Revenue-based financing is a great option for all businesses that need quick access to working capital to take advantage of an opportunity or to cover unexpected expenses. It is also a great option for businesses within industries that are often overlooked for traditional financing. Finally, it is a great option for businesses who would typically be declined for traditional financing due to 1) the amount of financing being requested (either too low or too high for traditional financing) or 2) their current credit situation.
Q: How flexible revenue-based financing repayment terms
A: Revenue-based financing offers one of the most flexible repayment options available. Because payments are an agreed-upon percentage of daily or weekly sales, they fluctuate based on your incoming revenue. For example, if your sales revenue is lower, your payments will be lower.
Q: Why is revenue-based financing a better choice than equity financing?
A: There is no one financing option that is overall better than another. There are, however, financing options better suited for specific situations. And each business faces its own unique situations, so what is best for one business may not be the best for another. For example, if you are not looking to give up a percentage of ownership in your business, then revenue-based financing would be a better option for you than equity financing because with equity financing you give away ownership of a portion of your business in return for working capital.
Q: What are the disadvantages of venture capital?
A: Venture capital is a form of equity financing provided to small businesses with a large amount of long-term potential. As with all forms of equity financing, a potential disadvantage could be losing full control and ownership over your business. Receiving funding through venture capitalists also requires an extended period of due diligence, so you should not expect to receive access to working capital quickly. Finally, in some situations, you do not get access to the full amount of funds at once. They are, instead, released conditionally and over time. While these aspects of venture capital funding may be disadvantageous to some businesses, it is the right mix for others. Always fully consider your specific situation and the pros and cons of all financing options and lenders before deciding.
Resources – Understanding Revenue-based Financing
How It Works: Revenue Based FinancingEvery business is unique.
This is by far the most frequently used option for small business financing. Revenue-based financing allows small businesses to take financing against their continued business success.
Financing for Business Expansion
How do you find financing for business expansion, when the time is right? No matter how successful a business might be, the decision to proceed with expansion inevitably comes with more spending, not less, and therefore a need to identify funding sources early in the process.
Small Business Loan Application Checklist | Updated for 2021
Building and running a small business is hard. It takes conviction, leadership, sound management and, every so often, a much-needed injection of financing.
6 Business Alternatives for Bank Loans and When They Make Sense
Borrowing money is an essential part of building a small business. But when you need a loan, traditional lenders like the bank might not be an option.
SBA Loans
SBA Loans Government Backed Financing
Work with Kapitus to Get an SBA 7(a), Express Loan, Micro Loan and More.
MULTIPLE SBA LOAN PRODUCTS AVAILABLE:
- Rates as low as 6.25%
- Longer pay back periods than a traditional term loan
- Quicker Approval with Kapitus
MINIMUM BUSINESS REQUIREMENTS:
- 685 credit score
- 2+ years in business
- $250k average annual revenue
Copyright 2022 Strategic Funding Source, Inc. All rights reserved. Kapitus and the Kapitus logo are registered trademarks of Strategic Funding Source, Inc.
Why Consider SBA Loans as a Business Financing Option?
SBA loans, particularly the 7(a) and Express Loans, are very versatile and can be used for almost any business purpose. With a variety of term loans available (up to 25 years upon loan approval) and a maximum loan amount that can go up to $5,000,000, your business is sure to find an option that can meet your most basic or your most complex needs. And, because of the government guarantee that comes with these loans, interest rates are very favorable.
SBA Loans Can Be Used For All-Purpose Financing
Working Capital to finance almost any business need you can dream up.
You can get one loan and work with one lender for all of your needs.
The Gold Standard in Small Business Loans
Low down payments interest rates that help keep inflation costs down (thanks to that government guarantee decreasing lender risk).
Long terms and flexible payment schedules allow you to keep your cash reserves intact.
Not Just Money
Some SBA backed loans come with hard to find resources and access to mentorship programs.
Whether you get a loan or not, the SBA has a number of services to help small business growth.
Fueling the Economy
The SBA backs billions of dollars in loans to small businesses each year, keeping businesses running. The SBA doesn’t typically cost tax payers a penny; The SBA funds itself with the guarantee fee it collects.
SBA Loans Pros and Cons – What You Need To Know
Every small business owner knows the importance of working capital and keeping a healthy amount of cash in reserve to keep their business operational. But just because it’s important, doesn’t mean it’s always possible. Enter SBA Loans, a low-cost option available to both established and new businesses across the U.S. But, there are a few downsides: SBA loans are not easy to get – there are stringent requirements that have to be met and the application process can be timely, arduous and down-right confusing at times. Kapitus is here to help you navigate the process – from determining eligibility, to building out your application package through final submission and approval!
Does Your Business Qualify For An SBA Loan?
Qualifying for an SBA Loan is based on a huge number of factors, including the type of loan you are trying to secure and varying types of business-specific information based on your industry. This already seems a bit overwhelming, no? So, let’s start with the minimum basic qualifications required!
- You must have a U.S.-based, for profit business
- You must have a personal credit score of at least 680
- You must have established business credit
- Your business needs to have been operating for at least 2 years
- You must be able to show profitability
Already knocked out of the running? Don’t panic! There are a number of other affordable business funding options available to you
Things still looking good for you? Reach out and we’ll help you get the application process started.
How To Apply For An SBA Loan?
Applying for an SBA Loan requires a lot of documentation and paperwork, so gear up for a bit of a long ride and a lot of time going through business records. The end result is worth it, though. To get you started, fill out our short online application, which provides us with the basics about your business. Our Financing Specialists will perform a complimentary review of your application and determine what else is needed. This allows us to streamline the process for you so that you know exactly where to spend your time on gathering the appropriate documents. Your Financing Specialist will then take you through each step of the application and funding process, serving as your guide the entire way.
SBA Loans Offered By Kapitus
At Kapitus we specialize in two SBA Loan products– the SBA 7(a) loan program and the SBA Express Loans Program.
SBA 7(a) loan
This is the most commonly used SBA program because there are very few limitations around how small businesses can use the loan. Meaning you can use if for real estate purchases, and partner buyouts…or anything in between. Loan amounts in the SBA 7(a) program range from $100,000 to $5,000,000, with terms that can go as far out as 25 years and affordable rates ranging from Prime plus 2.7% to 3.7% (current prime rate is 3.25%).
SBA Express Loan
The loans in the SBA Express Loan program are great for businesses who need access to financing quickly, as they offer an expedited application process where loans can be closed and funded in just 14 days. Similar to 7(a) loans, there are very few limitations around how the loan can be used. Loan amounts in the Express Loan Program can go up to $350,000.
FAQs
Q: What are the SBA Economic Injury Disaster Loans?
A: As part of President Trump’s and the Federal Government’s disaster relief efforts surrounding the COVID-19 global pandemic, billions of dollars have been earmarked for low-interest disaster loans for small businesses and non-profits who have seen economic impacts from the coronavirus. To learn more about the SBAs disaster loans and other local and state disaster relief initiatives, please visit our COVID-19 resource center.
Q: What is the Small Business Administration?
A: The Small Business Administration (SBA) is a government agency that provides support and resources to U.S. small business owners and entrepreneurs. The SBA is not a direct lender, but instead connects business owners to approved lenders to help them run and grow their businesses.
Q: What are the different types of SBA Loans?
A: The SBA provides whole menu of loan options, the most popular of which are the the SBA 7(a) Loans, the SBA Express Loans and the SBA 504 Loan. Others include:
- Community Advantage Loans, which are provided to businesses in underserved communities
- Veterans Advantage Loans, which are reserved for businesses who have served in any branch of the US armed forces
- SBA CAPLines, which provide business owners with lines of credit
- Export Loans, which includes both the SBA’s Export Express and Export Working Capital programs, that are available to U.S. based exporters
- CDC/504 loans (more commonly known as the SBA 504 Loan Program), which is primarily use for real estate purchases, land improvements, facility renovations and long-term fixed asset purchases.
- Microloan Program, which provides loans to intermediary nonprofit entities, who in turn lend the money out to minority and disadvantaged groups
At Kapitus, we work with businesses to get loans through the SBA 7(a) and Express Loans Programs specifically. For the latest SBA Programs visit sba.gov.
Q: What type of collateral is used for SBA Loans?
A: There are no collateral requirements for some of the SBA 7(a) and Express Loans. Whether or not it is a requirement is dependent on the actual loan amount. However, having collateral can help a business to actually secure one of these loans. Some of the more common collateral used by businesses for these loans is equipment, commercial real estate, residential real estate, and Inventory.
Q: What documents are required for SBA Loan approval?
A: To get the application started, you will need to be able to provide the following documents:
- Completed Application
- 2 most recent tax returns (business + personal)
- Year-to-date financials, including profit and Loss and a balance sheet
- Current Debt Schedule
It’s important to note that more documents will be requested after you are qualified and the approval amount and use of funds has been confirmed.
Q: What credit score is needed for an SBA Loan?
A: The minimum personal credit score for an SBA loan is a 680
It is important to note that we conduct a soft credit pull that will not affect your credit score. However, in processing your loan application, the lenders with whom we work will request your full credit report from one or more consumer reporting agencies. This is considered a hard credit pull, which happens after
Q: How long does it take to get an SBA Loan?
A: The application process for an SBA Loan varies depending on the loan program and the business; but generally you can expect it to take around 14 days for an Express Loan and anywhere from 3 to 6 months for a 7(a) loan.
Resources – Understanding SBA Loans
How It Works: Small Business Administration (SBA) Loans
Every business is unique.
What works for one may not work for another. With a range of choices, each with its own unique requirements and mechanisms, how do you identify…
What Are SBA Collateral Requirements?
Those seeking an SBA loan are likely familiar with the association’s sometimes confusing collateral requirements. Small business owners are required to name some amount of collateral when applying for an SBA loan, but it can be difficult to determine ahead of time how much collateral may be expected to finalize a loan or what necessarily constitutes collateral.
Understanding the SBA Microloan
The SBA Microloan program can provide small business owners with small-scale, low-interest loans with very good repayment terms to either launch or expand a business. Here is what prospective borrowers need to know.
How the SBA May Help You Recover From Natural Disasters
Hurricanes, wildfires, earthquakes, volcanoes, mudslides — all can be devastating to the health of your small business.
Surprise! 7 Businesses You Know That Grew With an SBA Loan
Is your business ready to expand to the next level? If so, when considering options for financing your organization’s growth, don’t overlook the Small Business Administration (SBA) — they aren’t just for starting new businesses.
Everything You Need to Know About the Small Business Administration
As a small business owner, you’ve probably heard of the Small Business Administration (SBA) – in passing, at the very least. For most people, SBA loans are the first thing that comes to mind. The SBA is one of the largest loan backers to small business owners in the country. The reality? they have a lot more to offer than you think.
Can I Get Approved for the 7(a) Loan Programn
Any small business owner who spends time searching for small business loans–both through banks and online–has likely come across the SBA 7(a) loan program. It’s one of the more popular small business lending options out there. With that, many small business owners look to the Small Business Administration (SBA) to help with financing.
Equipment Financing
Equipment Financing
Purchase Equipment Without Dipping into Cash Reserves
FAST AND AFFORDABLE EQUIPMENT FINANCING:
- Competitive industry rates
- Terms Up To 60 Months
- Funding in as Little 24 Hours
MINIMUM BUSINESS REQUIREMENTS:
- 675 credit score
- 3+ years in business
- Equipment Invoice
Copyright 2022 Strategic Funding Source, Inc. All rights reserved. Kapitus and the Kapitus logo are registered trademarks of Strategic Funding Source, Inc.
Why Consider Equipment Financing?
Getting the equipment you need to remain competitive doesn’t have to be a nightmare. With a simple application process, competitive rates and monthly payment schedules and terms that extend through the life of the equipment, keeping your business moving forward has never been easier.
FINANCIAL HEALTH
Improve your business credit with on-time payments
Upgrade your equipment without disrupting cash flow
EASY QUALIFICATION
Qualify for up to $150,000 with a 675 FICO & 3 years in business
Only 1 Year in business needed if you have Excellent Credit (775+)
ADDITIONAL PERKS
Simple application and qualification process with quick access to funds.
Equipment financed or leased may qualify for the Section 179 Tax Deduction.
Popular Equipment We Finance
- John Deere Mowers
- Cat Construction Equipment
- Tractors
- Front End Loaders
- Dozers
- Excavators
- Forestry Equipment
- Skid Steers
- Trucking
- John Deere Lawn & Garden
- Kobelco Equipment
- Row Crop Tractors
- Seeding Equipment
- Utility Vehicles
Equipment Financing – What You Need to Know
Every business needs high quality, modern equipment – without it, you wouldn’t be able to operate, let alone make a profit. But the huge cost of equipment and the prospect of dipping into your available capital has you feeling uneasy. With Kapitus Equipment Financing, there’s no need to put up with outdated and malfunctioning equipment. You can get financing up to the full cost of the equipment to cover equipment expenses – with no down payment requirement and flexible monthly payments – at the lowest rates in the industry. Whether you’re a construction company, a landscaper, a restaurant owner, or you work in the B2B services space, keeping your business running has never been easier with Kapitus equipment financing.
How To Apply?
Applying for equipment financing from Kapitus is easy; and should only take you about 5-10 minutes total. Simply fill out our online application, upload your vendor invoice at the end of the application…and you’re all set! Once your package has been submitted, a Kapitus equipment finance specialist will be in touch with a decision or, when necessary, to learn more about your business. Upon approval, your finance specialist will work with you to establish a payment amount and plan that works best for your business.
Take Advantage of our App-Only program for financing under $150,000!
If your equipment cost and expenses are under $150,000, the only paperwork required is the completed application and the invoice from your equipment vendor. That’s it – no additional paperwork will be needed to qualify!
1. Select the equipment you want to purchase for your business
2. Get Equipment Financing with Kapitus
3. Kapitus pays your vendor for the equipment
4. You take delivery of equipment from your vendor
6. You make payments to Kapitus
Who Should Use Equipment Financing?
Equipment financing can be used in virtually any industry, however there are some industries that utilize this more often than others. Here are the industries that most frequently use Kapitus equipment financing:
- Medical/Dental Practices
- Construction
- Manufacturing
- Agriculture
- Transportation/Trucking
- Restaurants
FAQs
Q: What is equipment financing?
A: Simply put, Kapitus Equipment Financing is a loan that you use to purchase business-related equipment. It allows business owners to purchase the equipment they require to keep their business running and successful without the need to pull from existing working capital.
Q: How is equipment financing different from a business loan?
A: Equipment financing is, actually, a type of business loan. Similar to the traditional business loans that you are used to seeing, Kapitus Equipment Financing has monthly payments that include interest and principal over a fixed term. With equipment financing, however, the full equipment cost is paid directly to the vendor/seller upfront.
Q: How is equipment financing different from equipment leasing?
A: While both equipment financing and equipment leasing can be used to acquire new equipment for your business, they do have some very distinct differences. The main difference between these two options is the ownership of the equipment. When you use equipment financing, you are purchasing the equipment from a vendor and you are, therefore, the owner of the equipment. With equipment leasing, however, you do not own the equipment outright. Instead, you are renting equipment through a leasing company for an agreed upon amount of time, with the option to purchase at the end of your lease agreement.
Q: What are the benefits of equipment leasing v. equipment financing?
A: Equipment Financing is a collateralized loan that allows you to purchase equipment for business use. There are many benefits to equipment financing, including:
- Preserve existing working capital
- Tax advantages through the Section 179 Tax Deduction*
- Improve your credit score with timely payments
An equipment lease is, essentially, a rental agreement between an equipment vendor and a business, where you rent equipment from a vendor for a monthly payment. You do not own the equipment during the lease term (think along the lines of leasing a car for personal use – it’s just like that!). There are many benefits to equipment leasing, including:
- Preserve existing cash flow
- Permits regular upgrades to your equipment
- Tax advantages through the Section 179 Tax Deduction*
* Always consult your tax advisor as to any tax advantages that may be available with equipment financing and leasing, as the tax code may change each year (or even mid-year) without notice.
Q: What types of equipment can I finance?
A: Kapitus equipment financing is not just for heavy machinery. In fact, you can finance almost any type of equipment, vehicle or software you need to run your business. Here are just some of the business equipment needs that you can get covered:
- X-Ray Machines, Autoclaves, CAD/CAM Technology, Dental Treatment Units and more
- Bull Dozers, wheel loaders, telehandlers, aerial platforms, trenchers, pavers and more
- Solar Panels and HVAC Units
- Commercial mowers, front-end tractors, loaders, back hoes, excavators and more
- Forklifts, workbenches, flow racks, case sealers, conveyor belts and more
- Office furniture
- Trailers, delivery vans, company cars, food trucks,
- Commercial ovens, freezers, refrigerators, grills, food processors and more
Q: Can I use the Section 179 tax deduction with equipment financing?
A: Section 179* of the tax code allows small businesses to deduct the full amount of the purchase price (up to certain limits) of general business equipment. This deduction allows you to substantially lower the amount that you pay for business equipment. You can see additional benefits when your new equipment is leased or financed using Section 179 qualified financing. To be eligible for this deduction, you must have purchased/ leased/financed your equipment and have it placed into service during the year in which you plan to take the deduction.
This use-it-or-lose-it write-off is a great incentive for businesses to purchase, finance or lease the business equipment they need. However, ever-changing federal and state tax laws and tax and stimulus acts can always affect Section 179, so it is critical to speak with your accountant PRIOR to a purchase to determine whether or not your equipment meets eligibility requirements for these tax benefits.
* Always consult your tax advisor as to any tax advantages that may be available with equipment financing and leasing, as the tax code may change each year (or even mid-year) without notice.
Resources – Understanding Equipment Financing
The Ins and Outs of Equipment Leasing
Suppose you need expensive equipment to run or grow your business. If you pay cash for it, your employees’ paychecks would bounce.
Financing for Business Expansion
How do you find financing for business expansion, when the time is right?
Small Business Loan Application Checklist | Updated for 2021
Building and running a small business is hard. It takes conviction, leadership, sound management and, every so often, a much-needed injection of financing.
Loans for Dentists: When a Credit Card Won’t Cut It
If you’re one of the nearly 200,000 dentists in the U.S., building and maintaining a thriving practice is certainly a key goal.
Everything You Need to Know About the Small Business Administration
As a small business owner, you’ve probably heard of the Small Business Administration (SBA) – in passing, at the very least.
Can I Get Approved for the 7(a) Loan Programn
Any small business owner who spends time searching for small business loans–both through banks and online–has likely come across the SBA 7(a) loan program.
Invoice Factoring
Invoice Factoring
TURN YOUR ACCOUNT RECEIVABLES INTO CASH – FACTORING LINES FROM $200K – $7 Million
FAST AND AFFORDABLE BUSINESS FINANCING:
- Competitive Industry Rates
- Wide Selection of Financing Options
- Flexible Terms To Fit Your Business.
- 5 Minute Application
- Approval in as Little 24 Hours
Copyright 2022 Strategic Funding Source, Inc. All rights reserved. Kapitus and the Kapitus logo are registered trademarks of Strategic Funding Source, Inc.
Features & Benefits
Cash Flow Without Debt
Since invoice factoring is cash provided to you based on outstanding invoices, it is not a loan and will not add liabilities to your balance sheet. With invoice factoring you don’t have to wait 30- 90 days to get payment for services/goods delivered and you don’t have a monthly loan payment.
Quick Access to Cash
The total time it takes to access financing through invoice factoring is typically anywhere between 1-2 weeks. The easy application and underwriting processes will range between 5-10 days and once your invoices are approved, funds are usually provided with 24-48 hours.
Flexible Terms & Reasonable Rates
People also applied for…
Purchase Order Financing
Purchase Order Financing is designed to provide businesses with the cash they need to fulfill a customer order. With this option, the financed amount goes directly to your supplier to cover the manufacturing and delivery of goods to your customer. The larger the transaction amount, the lower your rates will typically be. You will have a starting rate that is determined during the underwriting process, and after the first month the rate will increase.
Business
Loans
Available for both short- and long-term needs. Our business loans provide you with an agreed upon sum of money that you will pay back over a specified amount of time, with interest. The amount of interest paid and the total overall cost will depend on whether you opt for a short-term loan, which typically has a higher interest rate but a lower overall cost or a long-term loan, which tends to have a lower interest rate but a higher overall cost.
Revenue Based Financing
Revenue Based Financing is an up-front sum of cash that is based on a business’s future sales. Though not technically a loan, this is a great option for businesses that need access to cash quickly. Because this is not a loan, there is no APR or compounded interest associated with this product. Instead, borrowers agree to pay a fixed percentage in addition to the amount provided.
Concierge Services
Concierge Services
FAST AND AFFORDABLE BUSINESS FINANCING:
- Competitive Industry Rates as Low as 6.25%
- Wide Selection of Loan Options
- Flexible Terms To Fit Your Business.
ESTIMATED APPROVAL TIME:
- 5 Minute Application, Approval in as Little 4 Hours
MINIMUM BUSINESS REQUIREMENTS:
- 625 credit score
- 2 plus years in business
- 250k average annual revenue
Copyright 2022 Strategic Funding Source, Inc. All rights reserved. Kapitus and the Kapitus logo are registered trademarks of Strategic Funding Source, Inc.
Features & Benefits
Processor Conversions
Choosing a new credit card processor can be a daunting task. We can help with that. Our long-standing partnerships with established processors of all sizes allow us to not only find the right solution for your business’s needs, but to also assist you in the actual conversion.
Custom Equipment Consulting
When it’s time to upgrade your existing POS system, our custom consulting services can help you match the right system to your store’s specific needs. We work with fully-vetted POS partners, which also allows us to negotiate, on your behalf, the best rates for your new system.
Revenue Generation
Have Multiple Locations? Get Financing for your new POS
Revenue Based Financing
Revenue Based Financing is an up-front sum of cash that is based on a business’s future sales. Though not technically a loan, this is a great option for businesses that need access to cash quickly. Because this is not a loan, there is no APR or compounded interest associated with this product. Instead, borrowers agree to pay a fixed percentage in addition to the amount provided.
Equipment Financing
If your business needs new equipment, but you don’t have enough available cash to make the purchase then this is a great option for you. Our equipment financing product allows you to choose between purchasing your new equipment or leasing it with rights to renew. Equipment loans involve regular payments that include both the principal and interest. Equipment leasing is similar to leasing a car where you pay “rent” for use of the equipment over a specified amount of time.
Business Loan
Available for both short- and long-term needs. Our business loans provide you with an agreed upon sum of money that you will pay back over a specified amount of time, with interest. The amount of interest paid and the total overall cost will be depend on whether you opt for a short-time loan, which typically has a higher interest rate but a lower overall cost or a long-term loan, which tends to have a lower interest rate but a higher overall cost.