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      "When can you look at your financing?" 

because business credit changed with financial tech and easy access to capital for your business ... and your customers

      Eighty-two percent of business owners are planning for growth —with 35% saying they intend to borrow the money to expand.    

     SBA loans are 100% online where you can qualify in one day for up to $350,000 at 7% funded in 7 days -- with no fees and no effect on your credit score.   Qualify for a ten-year business loan faster than driving to the bank.  Expand, refinance or consolidate existing loans.

    Consider specific capital strategies for your unique business instead of searching online for generic instant funding offers -- because your competitive leverage for growth is superior access to capital.

     Business owners spend 33 hours searching online and applying for working capital funding because their banks decline two thirds of small business loan applications.   They pay higher rates and needless fees because they do not find the right funding for their unique business.

To secure the right funding for your unique business, you need a capital advisor.  

A professional capital advisor does not charge fees; their service is free, and you save time and money when you get the right funding for your unique business.  Your cost of money is the same (or even less) as dealing directly with the funding source, if you could.


     Understanding where your company fits within the dynamic new world of small business financing is still the most important information. The funding options available vary by sources who focus on different industries, loan size, interest rate and term length depending on the type, age and size of your business – and your specific unique needs and timing requirement. Though one thing is certain; today there is such a wide array of options available that most business owners should be able to secure funding easily - for any reason.


SBA Business Loans

SBA (Small Business Administration) loans are considered some of the best funding options available for their low interest rates, though their detailed paperwork and lengthy approval process tend to limit the types of firms who can secure these loans. There are three different types of loans offered by the SBA; 7(a) SBA Loan Program, CDC/504 SBA Loan Program and the less used Microloan Program. We will delve deeper below but these loans are designed for companies with very good credit, collateral and a solid business plan. The loans are not delivered directly by the SBA, the SBA acts as a guarantor so the banks can then allocate some of their small business lending to the SBA programs. Some of the top lenders in this space include Wells Fargo, US Bank and JP Morgan Chase; national, regional and community banks are the main lenders of SBA Loans.

7(a) SBA Loan

Loan Amount – $5,000 – $5,000,000
Loan Term – 5 – 25 years
Interest Rates – 6 – 13%

This is the most well known and most commonly used loan that the SBA program offers. This loan can be used to expand a company, finance equipment, purchase real estate or to make an acquisition. Businesses consider SBA loans as the top financing product to get approved for, however the process of applying and ultimately being approved is quite extensive. Companies need to provide financial statements, explanation of use of proceeds, details on collateral and full business descriptions. The process is still very similar to getting a traditional loan through a bank as the entire period can last about 90 days.

CDC/504 SBA Loan

Loan Amount – $5,000 – $5,000,000
Loan Term – 10 – 20 years
Interest Rates – 5 – 8%, rate determined after 45 days

This can be considered one of the more complicated loans a small business can apply to get. The 504 program as it is more commonly known, is not used nearly as much as the 7(a) program and is focused on companies who need the capital to acquire assets, expand or update certain aspects of their business. The loan consists of three parts; 10% from the borrower, 50% directly from a bank and the remaining 40% is funded by a Certified Development Corporation. The interest rate is not calculated at the time of the loan because the CDC groups all of their loans into a pool for investors to buy at auction, when the auction takes place an interest rate is then calculated based on the investor credit model.

Unsecured Short-term loans

Loan Amount – $2,500 – $5,000,000
Loan Term – 3 – 18 months or 1 – 5 years
Interest Rates – 9 – 30%

Short-term unsecured loans tend to be the most common loans and easiest to understand – a business borrows money for a specific reason then repays the loan over a period of time. These loans can typically be divided up into long term or short term options. Long term loans are typically for companies with better credit and more collateral. More established companies receive the long term loan and usually pay back monthly with an interest rate that can be fixed or variable. Short term loans are often used by companies with less than stellar credit, they fill a short term need and cost a great deal more than long term loans. Short terms loans are typically paid back with daily payments, though the structure can be different for each loan.

Working Capital Funding

Working capital is the most diverse grouping of funding as small businesses can secure cash today in return for discounted future revenues, accounts receivable or invoice financing, merchant cash advance financing or supply chain financing (also known as factoring - one of the oldest forms of business financing.). Each type of financing does have one thing in common: sales at your business – cash flow from selling products or services. If you search for business loans online, this is mainly what you will find, and since it is an unregulated marketplace with a similar products generally offered to every applicant, regardless, you will pay higher rates and needless fess when you do not find the right funding for your business. This is an area where a trustworthy capital advisor can save you considerable time and money.

Accounts Receivable/Invoice Financing

Loan Amount – up to 85% of invoice amount
Loan Term – businesses pay per week outstanding
Interest Rates – 5 – 12%

Accounts receivable or invoice financing allows businesses to use their sales to borrow capital for a short period of time. Invoices are usually sent to customers with due dates of 30, 60, 90 or 120 days; companies in turn need steady cash flow to meet different needs and lenders can fill this void by using the invoice as a form of collateral. Financing your business this way can be expensive though, as lenders typically charge processing and factor fees. There are many different ways financing within this space as some lenders operate in a more traditional sense where they pay you upfront for close to 85% of your invoices and other lenders use your business activity to tailor a specific financing option.

Business Capital Funding / Merchant Advance

Loan Amount – $5,000 – $250,000
Loan Term – 3 months – 24 months
Interest Rates – 8 – 40% or more

Merchant advance financing is a quick but expensive option for a business to use, there is no collateral required and even those with poor credit can qualify. While this tends to be an expensive option, it does serve a sizable need for companies who cannot get approval for more traditional working capital. The big advantage to using this type of funding is flexibility of payments because daily repayment is done by allowing the lender to deduct a percentage of daily credit card sales. On slow days the payment is less, on days with higher sales, the payment is higher. While this type of funding is useful for short term needs, it is typically not seen as a good long term option for companies to continue to use.

Supply Chain Finance

Loan Amount – up to 95% of the invoice
Loan Term – short duration
Interest Rates – negotiated between buyer and seller

Supply chain finance is a growing option for companies who are looking for financing options but do not want to incur large fees that usually accompany invoice financing. This option is not a traditional means of lending but rather an alternative for companies who usually have large buyers. Companies are able to essentially sell their invoices for close to full value and in return the lender is able to collect when the invoice reaches full maturity. Companies are typically able to get about 95% of the value of an invoice in return for rapid payment, Fees are usually small as buyers tend to be bigger corporations.

Lines of Credit

Loan Amount – $1,000 – $1,000,000
Loan Term – 6 months – 20 years
Interest Rates – 7 – 30%

Line of credit financing is a flexible way for businesses to draw on cash when needed and are only required to pay interest on the amount used. This type of financing is good for companies who have seasonal sales or bumpy sales cycles. There are two types of Line of Credit Financing, the traditional pool of capital to draw on and a business credit card which can act like a line of credit for purchases. Businesses with good credit can secure lines of credit from banks with preferable rates, or more expensive online lenders.

Equipment financing

Loan Amount – up to 100% of equipment value
Loan Term – 12 – 72 months
Interest Rates – 8 – 45%

Equipment financing is used by businesses to buy a piece of equipment or device to help them produce more goods and increase revenue. This type of financing can be one of the easiest to secure, though this is not always the case, as the equipment acts as collateral for the lender in case the business in unable to pay back the loan. Lenders tend to not extend repayment terms for fear of equipment becoming out of date and borrowers should be careful to borrow for equipment that can last. Loans can be expensive depending on the company’s credit profile, though most companies see this type of funding as worth the cost because of the increased production that accompanies the new equipment.

Business Credit Cards

Card Limits – dependent on credit profile
Interest Rates – 8 – 25%

Business credit cards are a form of financing every small business needs; companies use cards for purchases, travel, equipment and to help pay invoices. Rates on cards will vary based on the personal credit profile of the business owner and are offered by the main card companies like AMEX, Chase, Capital One and Bank of America. This form of financing is something that many business owners rely on and tends to be the most popular form of financing for companies who are just starting to gain traction.

Consumer Funding 

Businesses are dropping their old customer financing because of excessive turndowns and fees
     If you use an older company for customer financing, their outdated systems and service will slow you down and cost you money because they are not keeping up with the smart new financial tech platforms with multiple lenders via one digital application at the time of sale, deep FICO for more approvals across Prime, Near Prime and Sub Prime, 100% paperless online with any device, competitive low rates, zero risk, no minimums and no fees.  


Small businesses have plenty of options when they need working capital for any reason. When looking at outside sources of capital, business owners should consider why they need the financing, how long they need the money, and when they need the funding. 

Understanding your business, how and when sales are generated, and the cycle of your revenue stream will help a lender determine the best option.  Determining the total cost of funds in dollars and the payment structure - not just the interest rate or APR - is crucial to knowing if the new financing makes sense -- if it will help you accomplish your project or achieve your goal.


Our advice: Use an experienced business capital advisor to get the right funding for your business; don’t just take whatever is offered online to everyone on a website calculator or instant "loan application", or a direct mail offer that is sent to everybody, regardless.

Remember that online “loan applications” and "loan calculators" often are collecting your data to be sold and resold as a “sales lead.”  Who are you really dealing with? Your business ID, financials and personal information could be exposed widely on the Internet and you won’t know who has your data. You probably will be inundated with robotic sales calls and telemarketers who may not have your best interests as their priority and who do not take the time to learn specific details about your unique business and your needs.

Further, established competitive sources of capital tend to specialize in various business categories, types and size of financing or credit risks, and they are not easily found by searching online because they do not want a flood of unqualified applicants.  They primarily work with and rely on professional business capital advisors.   

A professional capital advisor will not charge additional fees or upfront fees. Professional capital advisors do not sell products and services; they provide advice, consulting and guidance; they can identify trusted sources with the right funding for your unique business, and their service is free to you so your cost of funding is no more than dealing directly with the funding source, if you could.  



Online lending: Two misconceptions clarified

Not too long ago, making decisions about small business capital was straightforward. That is not the case today.

With all the available options, business owners need to become better informed and more savvy about small business capital. The last few years have seen a lot of changes in how small businesses access capital — which makes it difficult to stay on top of what’s available and make sense of the type of business-use cases where you might consider applying for an online business loan, a traditional loan at the bank, or some other type of business funding for working capital.


“While speaking to small business owners all across the country, I’ve recognized two common misconceptions about online business lending.”


Misconception: Online funding is just too expensive

While this may be the case in some situations, depending upon why you are borrowing and the individual lender, this might not be an accurate blanket description. In my opinion, loan purpose (or the reason you are borrowing) informs a lot of the decisions you’ll have to make, particularly regarding the cost of capital and whether a particular funding option makes sense.

The Electronic Transactions Association (ETA) recently commissioned Edelman Intelligence to conduct an online survey of 592 small business organizations to learn more about their experience with online funding. The results are quite interesting.

Although it might feel counter-intuitive, the lower total dollar cost of some online funding options were a determining factor in why a small business chose online business funding. Total cost of financing is a very important metric for financing growth initiatives or other loan purposes with a defined or reasonably expected return on investment. Depending upon the term, it’s possible for a higher-APR loan to carry a lower overall dollar cost and make sense given a particular business use-case.

The majority of the small businesses surveyed were more focused on the total dollar cost of the loan than the APR when facing a hypothetical short-term opportunity to capture additional ROI. In fact, 57 percent of them chose a six-month loan over a nine-month loan (with a lower APR) in order to minimize the total fees and expenses. While APR is a reasonable way to compare two loans of the same term, it does not provide the total dollar cost of the loan.



“The business owners in the survey additionally reported they expect an average return of $5 for every $1 borrowed—which may be why they are so focused on total cost.”



Misconception: Online funding is a last resort

You might assume that online capital is a last resort. It’s a common misconception. Nevertheless, today many small businesses turn first to online business funding for financing with the three primary reasons identified by the ETA survey being:

1. They can access the capital quickly (63 percent);

2. The application process is simple and straightforward (57 percent); and

3. The costs are reasonable (51 percent).

Admittedly, not all online funding sources are created equal, and as is the case in every industry, there are good players and those you may not want to do business with. However, it’s really a matter of looking at small business creditworthiness through a different lens and with a different paradigm — not a disregard for good credit practices — that allow them to approve small business loans that might have been rejected by a more traditional approach that is largely driven by a personal credit score.

While for most small business owners their personal credit score will likely always be part of the equation, I’m not convinced it should be a go/no-go metric for credit denial when there are so many other data points available that may provide greater visibility into a business’ creditworthiness. What many of these online lenders are doing is leveraging technology and big data to go beyond a credit evaluation based largely upon a business owner’s personal credit score.

These are important considerations that are reflected by the 96 percent of those surveyed who identified they were borrowing to enable growth. Access to capital can be a major challenge to many of the small business owners. Online business funding is one of the options available to help them find the capital they need.


How much money am I looking for?

This is a straightforward question. Unfortunately, popular culture has many business owners convinced that a lot of money will solve all their problems. When I have occasion to ask a borrower how much they’re looking for and the reply is, “As much as I can get,” I cringe. This answer tells a potential lender that you haven’t really thought through your loan purpose. Your loan purpose should drive the answer to this question.

I disagree with the idea that you should borrow as much as you can at any opportunity you have because you never know when you won’t be able to borrow again. There are costs associated with borrowing that should be thoughtfully considered every time you seek borrowed funds. In fairness, I look at this process from a very conservative point of view. In my opinion, if the borrowed funds will drive increased returns on investments (“ROI”) or add value to the business, a small business loan could make a lot of sense—if not, I wouldn’t suggest borrowing. In other words, borrow what is required to fulfill your business need, but no more.

96 percent of the ETA survey respondents say the loan they secured enabled them to drive business growth. In my opinion, a loan purpose that will generate a positive ROI or growth of some kind is a good reason to consider a small business loan.

Determining the amount of money you need can also help you determine which lender to approach. Over the last several years many traditional lenders have moved upstream, looking for bigger businesses and bigger loans. Banks, for example, would rather lend $500,000 or $1 million than $50,000. It’s hard to blame them; they both carry about the same administrative and regulatory costs associated with underwriting the loan.

Fortunately, many capital funding sources specialize in smaller amounts, which are specifically geared towards small businesses. According to the ETA survey, the average amount for online business funding was $25,000. And the average number of times those business owners had borrowed over the past five years was three.

To find the right funding for your unique business, you need a professional capital advisor.



No products or services are sold on this educational informational resource website. No fees are charged.