Frequently Asked Questions | FAQ
Quick Answers for FAQ’s for Business Owners
How do I sign up?
What types of products are availabe?
- Merchant Cash Advances
Unsecured Business Loans
Asset Based Loans (Real Estate, Equipment, Vehicles)
When am I eligible to refinance?
Is the process difficult?
How does the program work?
Do you offer start-up business loans?
How much money can I borrow?
Ensure You Receive Same Day Funding for a Merchant Cash Advance
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?
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?
How long are the advance programs?
Do I have to accept credit cards or change my processor?
Why would I use Small Business Funding instead of my bank?
Do you take my personal credit score into consideration?
How secure is my information?
How long does it typically take for the funding process?
Are you a direct lender?
Are there any state restrictions?
What are the fees associated with your services?
What can I use the money for?
What are the Basic Requirements?
- Have been in business for >6 months
- Have revenues of at least $15,000 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)
- 3 months of most recent bank statements
- 4 months of most recent credit card statements
- Driver’s license and voided check