Loan types and FAQs

Loan Types and Financing

Description and Frequently Asked Questions

Equipment Financing

1. What is equipment financing? Equipment financing allows businesses to acquire necessary equipment without making a large upfront payment. Businesses make manageable monthly payments over a specified period to obtain the equipment they need.
2. Who is eligible for equipment financing? Businesses with a minimum personal credit score of 580, a Paydex business credit score of 70 or above, or startups with a minimum score of 680 and a mortgage reporting on the credit are eligible.
3. Are there any restricted industries for equipment financing? Yes, industries such as planes, ships, boats, and guns are not eligible for equipment financing.

SBA Microloan

4. What is the SBA Microloan program? The SBA Microloan program provides up to $50,000 backed by the SBA, which can be used for working capital or purchasing equipment.
5. What are the top industries served by the SBA Microloan? The top industries include construction, landscaping, engineering, mechanics, and accounting.
6. What are the benefits of the SBA Microloan? Benefits include longer repayment terms, preservation of cash flow, competitive rates, and no prepayment penalty.
7. What are the key features of the SBA Microloan? Key features include loan amounts up to $50,000, terms up to 10 years, funding within 1-2 days, and interest rates of Prime Plus.

SBA Loan

8. What is the Low Document Express SBA loan? It is a loan program designed to support and promote the growth of small businesses by providing financial assistance with minimal documentation.
9. What is the interest rate for the Low Document Express SBA loan? The interest rate is Prime + 3.75%.
10. Who is eligible for the Low Document Express SBA loan? Businesses must have been in operation for a minimum of 3 years, have more than $60k in annual gross revenue, and a credit score above 675.
11. Who is not eligible for the Low Document Express SBA loan? Restricted industries include startups, adult industries, airlines, auto dealerships, bitcoin companies, churches, collection agencies, check cashing companies, bail bond companies, and debt consolidation companies.

Business Line of Credit

12. What is a Business Line of Credit? A Business Line of Credit gives businesses ready access to a predetermined amount of capital that they can draw upon as needed, unlike a traditional loan.
13. What is the interest rate for a Business Line of Credit? The interest rate ranges from 18% to 22%.
14. Who is eligible for a Business Line of Credit? Businesses must have been in operation for a minimum of 6 months, have more than $60k in annual gross revenue, and no major unsatisfied credit judgments. There is no minimum credit score requirement.
15. Who is not eligible for a Business Line of Credit? Restricted industries include startups, adult industries, airlines, auto dealerships, bitcoin companies, churches, collection agencies, check cashing companies, bail bond companies, and debt consolidation companies.

Accounts Receivable Factoring

16. What is accounts receivable factoring? Accounts receivable factoring involves selling unpaid invoices to a third-party company at a discounted rate, allowing businesses to access cash immediately.
17. Who is eligible for accounts receivable factoring? Eligibility is based on the strength of the invoices and the business or government that will be paying them, not on the borrower.
18. Who is not eligible for accounts receivable factoring? Restricted industries include startups, adult industries, airlines, auto dealerships, bitcoin companies, churches, collection agencies, check cashing companies, bail bond companies, and debt consolidation companies.

Term Loan

19. What is a term loan? A term loan provides a fixed amount of money upfront, to be repaid in regular installments over a specified term for various purposes such as expanding operations or purchasing equipment.
20. Who is eligible for a term loan? Businesses must have been in operation for a minimum of 3 months, generate more than $20k a month in revenue, have no major unsatisfied credit judgments, and typically need a credit score above 660.
21. Who is not eligible for a term loan? Restricted industries include startups, adult industries, airlines, auto dealerships, bitcoin companies, churches, collection agencies, check cashing companies, bail bond companies, and debt consolidation companies.

Working Capital

22. What is a working capital loan? A working capital loan provides businesses with quick access to capital for various purposes, such as expanding operations or refinancing higher rate financing options.
23. What are the top industries served by working capital loans? Top industries include construction, manufacturing, transport, e-commerce, and medical.
24. What are the benefits of a working capital loan? Benefits include same-day funding, no minimum FICO score, flexible requirements, and approval despite bad credit and liens/judgments.
25. What are the key features of a working capital loan? Key features include terms of 2 to 5 years, funding within less than 1 day, and interest rates starting at 8.9%.