Small Business Funding is a provider of working capital loans between $5000 and $250,000. We provide needed capital for small businesses to help them maintain and keep their business growing. Whether it’s for payroll, inventory, supplies or expansion small business funding can get you the capital you need in days. While a traditional bank loan may be more cost effective, almost 85% of small businesses that apply for a bank loan are declined. Traditional lenders put a lot of weight on personal credit and time in business. The alternative lenders that we work with do not. Our lending partners can provide lending decisions in just 24 hours with minimal paper work.
Working Capital Loan Requirements
To receive a working capital loan requires just 6 months of business bank statements, 4 months of credit card processing statements (processing credit cards is NOT a requirement), our one page application, driver’s license, voided check, and copy of your lease or mortgage statement (if you’re a home based business). With this in hand we will determine which one of our lending partners is best suited for your needs. Some alternative lenders specialize in certain industries and have a better understanding of how your business works. Our expertise in finding working capital loans for small business owners is due to our strong relationships with the countries top alternative private lenders and knowing what type of industries they like to work with. Each has their own minimum thresholds relating to average daily balances, time in business, capital needs, FICO scores, industry, and cash flows. The minimal requirements are:
*Time in Business at least 3 months
*Minimum monthly revenues of $8,000
*Must have a business checking account
Expectations of A Working Capital Loan
When receiving an alternative working capital loan you should be mindful of several things. These are short term business advances ranging between 3 and 12 months. These are primarily for small businesses that cannot get traditional bank funding and therefore deemed high risk. The cost of capital will be higher. They will range between 15% and 48% but average closer to 30%. The repayment of these loans is via a daily ACH debit from your bank account, Monday through Friday, or through your credit card processing (again accepting credit cards are not a requirement). If through credit card processing the lender will hold back a percentage of daily credit card receivables.
The amounts that you can be approved for will be based on your revenues. Usually 30% to 200% of your monthly revenues or 10% to 20% of gross yearly revenues. It all depends on the lender that approves your working capital loan. Again, these are short term loans for short term business issues such as paying taxes, making payroll, buying inventory, expansion, etc… Most importantly, these working capital loans are a way of getting capital fast. Many small business owners having pressing issues that require fast solutions. Small Business Funding provides fast solutions. You can receive capital in as little as 48 hours after submitting the few documents that are required. A working capital loan is for businesses that are already operating and generating revenues each month (minimum $8000). These are not for start ups or for buying an existing business. Underwriters are viewing you as a business owner and your experience at running the specific business as a way of determining how much to advance.