FAQ – Business Funding Questions

How do I sign up?

Just fill out our form on the homepage or call our 800 number to get started. Signing up is easy and free. Once you submit your application, a customer service representative will be in contact with you within hours to ask a few simple questions to get you on your way!

What types of products are available?

  • Merchant Cash Advances
  • Unsecured Business Loans
  • Asset Based Loans (Real Estate, Equipment, Vehicles)
  • Factor Financing

When am I eligible to refinance?

Typically, a refinance option is available once the entire total amount due to repay plus any return fees are paid to 65%.

Is the process difficult?

The process is not difficult at all. We want to make applying as simple and easy to understand as possible. You fill out the application and we work hard to fulfill the rest of the requirements to get you set up with a lender. Once we have compared multiple lenders, we will match you with loan options so you can decide which best suits your needs.

How does the program work?

Small Business Funding will match you with a lender that will either advance you up to 200% of your average monthly credit card sales or provide you with an unsecured cash loan based on your individual business history and other criteria. Both of these options are unsecured financing which means there is no collateral or personal guarantee from the merchant. The idea behind this is that the lender is taking the risk on you and your business. There are agreed upon fixed percentages on your future sales that go towards paying back your balance. With the credit card type of loan, also known as a Merchant Cash Advance, these loans are paid back on a performance basis. As your business makes money, you pay the lender. Unsecured cash advance loans offer a structured daily payment that will be clearly outlined by the lender.

Do you offer start-up business loans?

Under almost all circumstances, our lenders would like to see some historical performance in order to offer you a loan based on future performance expectations. In some situations, if you have been in business for at least 3 months or you are starting a restaurant/bar and can meet certain criteria, a loan can be offered.

How much money can I Borrow?

Our lender network will fund between $3,000 – $500,000. It is entirely based on your current and past success of your business.

Can I pay back the advance early?

Yes, most lenders will accept payment in full at any time during the term of your loan without penalty. You will have to check with your lender what your payoff amount is, but most of the time, writing a check and sending it to them will work perfectly.

What is the interest rate?

For Merchant Cash Advances, there is no interest rate. Most lenders use a Factor Rate. A factor rate is a onetime cost on the money based on the length of the program. The longer the program is, the higher the factor rate will be and there are no penalties or late fees.

For unsecured cash advances, the fee is a set percentage of the money borrowed, or cost of money, based on multiple factors. Things like FICO, Length of time in business, banking history, and industry are important. Because Small Business Funding has the largest network of private capital sources, we are able to find you the best rate possible. Our lenders compete for your business, thereby driving down the rate you pay. You will see any rates, fees and interest rates before signing/accepting your loan.

How do I pay back the advance?

For unsecured small business loans, the lender will pull a very small, pre-agreed upon amount from your bank account daily or weekly. Because the amount is so small and takes place often, you will barely notice it. Our lenders want to make sure you continue to prosper and will work with you regarding a flexible repayment structure that fits your needs.

If you are approved for a Merchant Cash Advance, the lender will put a Holdback Percentage on your future credit card sales. Sometimes, lenders will request a 10% Holdback Fee which means at the end of the day if you had $500 in credit card sales, $50 would go to paying back the loan and your business would take the remaining $450 as usual. There will be a daily holdback taken until the loan is paid off.

How much does this cost?

The overall cost or payback of the loan depends on many factors, some of which different from lender to lender. Some examples of how much you pay back will be dependent on what industry you are in, what your credit score is, how long the loan program will be, what your bank statements look like, etc. Factors that determine cost all are centered around your past business performance and future ability to repay.

What is the hold back percentage?

What is the hold back percentage on future credit card sales? When you are matched with a lender that is going to give you a Merchant Cash Advance, the hold back percentage is dependent on what type of program you decide upon. If you are looking for a short term payoff, the percentage will be higher since it is over a smaller period of time whereas a longer term loan will have a lower percentage with more payments.

How long are the advance programs?

The advance programs in our network of lenders typically range from 4 to 12 months long. Some programs can be shorter and some can be as long as 24 months long, but you usually must have a higher FICO score and a larger loan amount to qualify for a longer term.

Do I have to accept credit cards or change my processor?

Do I have to accept credit cards or change my processor? No. Accepting credit cards is not a requirement of funding. However, if you do, our lenders have excellent relationships with many different processors so you will not have to change your current system. If you do not want to change your processors, the lender will set up an ACH program or a lockbox. An ACH program will apply the holdback percentage to your credit card deposits into your bank account. This option has a 24 hour delay but will not affect your business. The Lockbox is a 3rd party bank account that your credit card deposits will get batched out to. After 24 hours, the lender will take the holdback percentage and the remainder will be deposited into your business bank account.

Why would I use Small Business Funding instead of my bank?

In today’s economy, banks just aren’t lending like they used to. It has become more and more difficult to be approved for a small business loan though traditional banks unless you have a perfect credit score or 3+ year in business. Our lenders can approve you. We can get you approved and funded in a matter of days instead of weeks/months. Also, at Small Business Funding, we have a large network of lenders, giving you the best possibility to be matched for the loan you desire.

Do you take my personal credit score into consideration?

While your personal credit score is a factor, it is not the main factor. Each of our lenders in our network weighs credit score differently and most evaluate your current and future business performance more heavily. Even if you have less than perfect credit, you can still get approved! We have various lenders with many different funding options so don’t be discouraged just because you have less than perfect credit.

How secure is my information?

Our website is completely encrypted and secured in the same manner as a traditional bank’s website would be. Your information is safe and we do not sell any of your data to third party agencies.

How long does it typically take for the funding process?

How long does it typically take for the funding process? The application process is quick and should only take you a few minutes. Once that is received, one of our representatives will be in touch with you by phone or email to obtain further information. Approvals usually happen within 24 hours. Once you are matched with a lender, the time span varies but normally you will have the capital you need within 48-72 hours.

Are you a direct lender?

No, Small Business Funding is a matching service that connects you with our large network of lenders looking for small businesses to invest in. Basically, we do the hard work of finding the perfect lender for your industry and personal desires. We want you to focus on your business while we match you with the best lender for your needs!

Are there any state restrictions?

No. Our lenders process loans in all 50 states.

What are the fees associated with your service?

There are no fee’s to work with Small Business Funding. The loan fees will vary based off the needs of your working capital, the amount requested and other industry related stipulations that will be laid out for you prior to signing any documents.

What can I use the money for?

Typically most of our lenders will allow you to request more funds once 50-60% of your program has been paid. Not only that, but they will offer more money, longer repayment terms, and lower rates and fees! There are different refinancing options for each individual loan and you will have to check with your lender for specific details.

What are the basic requirements?

  • Have been in business for >3 months
  • Process at least $5,000 (VISA/MC) a month or grossing at least $8,000 a month
  • Make at least 5 deposits a month with no more than 5 NSF’s
  • In order to get qualified we typically will request:
    • 1 page application filled out and signed by owner(s)
    • 6 months of most recent bank statements
    • 4 months of most recent credit card statements
    • Driver’s license and voided check

When can I get more money?

Typically most of our lenders will allow you to request more funds once 60-65% of your program has been paid. Not only that, but they will offer more money, longer repayment terms, and lower rates and fees! There are different refinancing options for each individual loan and you will have to check with your lender for specific details.

Who should I call if I have any questions?

Call any one of our Funding Specialists at Small Business Funding. We are here to help you and answer any and all questions you may have.