Types of Funding Options
To make sure you have a better understanding of the various types of funding we provide, we have added more information below. Make sure to note that every application for funding is a case by case evaluation. Your best option is to talk with one of our specialists, who will make sure that you get the best offer possible to fund your business needs.
What Are Term Loans?
A traditional term loan is a set amount of capital that you pay back with scheduled repayments at a fixed interest rate. The word “term” stems from the agreed on set repayment term length, the length of a term loan is usually between 1 & 5 years. Generally speaking business owners will use the proceeds of these term loans to finance a certain, individual investment for their business.
What Are Factoring Loans?
Factoring is a financial transaction where a “factoring company” buys your open invoices. These invoices are ones for which you usually receive payment for within 24 hours. You can choose yourself which invoices to sell to the factoring company and you will in exchange receive an advance on each of them. Some of these factoring companies can advance up to 97% of the total amount of the invoice. Keep in mind that since the factoring company will then own these invoices, they will be responsible for collecting the payment from the customer the invoice has been made out to.
What is a Merchant Cash Advance?
MCA or Merchant Cash Advances are not technically loans. With an MCA, a private company offers you cash in exchange for a percentage of your (future) daily credit card and debit card sales, plus a set fee. These cash advances can be an effective and quick ways to get your business fast cash with no need for collateral (regardless of credit score!).
What is a Business Line of Credit?
A business line of credit offers you access to funds to draw from when you need capital. Unlike traditional business loans, you have the option to borrow up to a set amount (typically anywhere from $50k to $500k), repaying only the amount you withdraw, with interest. You can use your business line of credit to deal with cash flow gaps, get additional working capital, or handle emergencies or opportunities.
What is Collateral Funding?
Collateral financing helps you finance up to 100% of the new or used physical assets you need for your business. Applying for collateral funding is typically a fast and easy way to finance the purchase of most types of real estate or equipment—computers, machinery, vehicles, or whatever else you need.
These are just brief overviews of what you may expect with these specific types of funding. We highly recommend talking to one of our funding specialists to make sure you get the best offer possible for your business’ financial needs! Do not hesitate to contact us, we’re here to help you find your best option.