Q. What is alternative lending?
A. Alternative lending refers to non-traditional financing methods, typically outside of conventional banks, including online lenders, peer-to-peer lending, and merchant cash advances.
Q. How does alternative lending differ from traditional bank loans?
A. Alternative lenders often have faster approval processes, more flexible qualification criteria, and can provide funding to businesses that might not qualify for traditional bank loans.
Q. What types of businesses can apply for alternative lending?
A. Generally, any business can apply, but the specific criteria depend on the lender. Typically, small to medium-sized businesses, startups, and businesses with less-than-perfect credit seek alternative lending.
Q. What types of business loans do you offer?
A. We offer term loans, lines of credit, equipment financing, invoice financing, and SBA loans.
Q. What are the interest rates and fees?
A. Interest rates and fees vary based on the type of loan, the creditworthiness of the borrower, and the lender’s policies. Rates can range from single digits to higher percentages.
Q. What are the eligibility requirements for a business loan?
A. Common requirements include a minimum credit score, minimum three months of time in business, a minimum of $5,000 in monthly revenue, and minimal documentation
Q. How long does it take to get approved and receive funding?
A. Approval times can range from a few hours to a few days, with funding often available within a week, depending on the lender and the complexity of the application.
Q. Can I repay my loan early?
A. Many alternative lenders allow early repayment, but it’s important to check if there are any prepayment penalties or fees.
Q. What is business capital funding?
A. Business capital funding refers to various financing options that provide businesses with the necessary funds to cover operational costs, growth, and expansion.
Q. What are the common uses of business capital funding?
A. Common uses include purchasing inventory, hiring staff, marketing, expanding operations, and managing cash flow.
Q. How much capital can I qualify for?
A. The amount you can qualify for depends on factors such as your business’s revenue, creditworthiness, and the type of funding you seek.
Q. What is a merchant cash advance (MCA)?
A. An MCA provides businesses with a lump sum of cash in exchange for a percentage of future credit card sales or daily sales deposits.
Q. How is the repayment structured for an MCA?
A. Repayment is typically a percentage of daily credit card sales or daily deposits until the advance and fees are fully repaid.
Q. What are the costs associated with an MCA?
A. Costs are usually higher than traditional loans and are expressed as a factor rate, which can range from 1.1 to 1.5 times the advance amount.
Q. How quickly can I receive funds from an MCA?
A. Funding can often be received within 24 to 48 hours after approval.
Q. What are the eligibility criteria for an MCA?
A. Eligibility is based on your business’s credit card sales volume, time in business, and sometimes personal credit score.
Q. Are there any restrictions on how I can use the MCA funds?
A. Generally, there are no restrictions on how you can use the funds, giving you flexibility to use the money where it’s needed most.
Q. What is a business line of credit?
A. A business line of credit is a flexible financing option that allows you to draw funds up to a predetermined limit. You only pay interest on the amount you draw.
Q. How does a business line of credit work?
A. Once approved, you can access funds as needed, repay them, and borrow again up to your credit limit. It works similarly to a credit card but is typically used for business expenses.
Q. What are the benefits of a business line of credit?
A. Benefits include flexibility, interest savings (since you only pay interest on what you use), and the ability to manage cash flow more effectively.
Q. What are the interest rates for a business line of credit?
A. Interest rates vary depending on the lender and your creditworthiness. Rates can range from low single digits to higher percentages for riskier borrowers.
Q. Are there any fees associated with a business line of credit?
A. Fees can include application fees, annual fees, and withdrawal fees.
Q. What are the eligibility requirements for a business line of credit?
A. Requirements typically include a minimum three months time in business, at least $5,000 in monthly revenue, and a satisfactory credit score. Financial statements and tax returns may also be required.
Q. Can I use a business line of credit for any purpose?
A. Yes, funds from a business line of credit can generally be used for any business-related expenses, including inventory, payroll, and operating costs.
Q. What is a traditional term loan?
A. A traditional term loan is a lump sum of money that a business borrows and repays with interest over a fixed period, usually with regular monthly payments.
Q. What are the typical terms for a traditional term loan?
A. Terms can range from one to ten years, depending on the loan amount, lender policies, and the purpose of the loan.
Q. What are the interest rates for traditional term loans?
A. Interest rates depend on various factors, including the lender, the loan term, the creditworthiness of the borrower, and current market conditions. Rates can vary from low single digits to higher percentages.
Q. What are the fees associated with traditional term loans?
A. Common fees include origination fees or application fees
Q. What are the eligibility requirements for a traditional term loan?
A. Requirements typically include a minimum credit score, at least 3 months in business, and $5,000 in monthly revenue. Financial statements, and tax returns may also be required.
Q. Can I use a traditional term loan for any purpose?
A. While many lenders allow term loans to be used for a variety of business purposes, some may have restrictions based on the loan type or amount.
Q. How will this loan affect my credit score?
A. It depends on the lender and the type of loan. Some lenders report to credit bureaus, which can impact your credit score.
Q. Is collateral required for these loans?
A. Some loans are unsecured and don’t require collateral, while others, especially larger loans, might require collateral.
Q. Can I apply if I have a poor credit history?
A. Many of our lenders consider factors beyond credit scores and may approve loans for businesses with less-than-perfect credit.