The funding options your business needs will vary based on many factors, but most of those can be summed up based on the length of time the business has been in operation and the industry you operate in. What matters most is that we’re here to help you along the way and help you get what your company needs, which might not always be what it wants.
Operating Lines of Credit
A credit facility that will give you ‘revolving’ access to credit, up to a certain limit. You use the credit when you need it, and repay it when you don’t, only paying interest on the amount you’ve borrowed and only for the length of time it was borrowed. Great to help companies that have a gap between their Accounts Receivable and their Accounts Payable.
Term Loan
This sort of loan provides a business with a lump sum of cash, which is expected to be paid off over a predetermined timeline, at an agreed upon interest rate. Typically these sorts of loans will only be a percentage of the total amount needed to purchase something, or it can be used as an injection of capital into the business to be paid off via the existing cash flow. Lots of options are available when we’re talking about a term loan.
Real Estate/Commercial Mortgage
You may be used to a conventional mortgage for your personal property, but really, these aren’t that much different than what you’re used to in your personal life. The terms, interest rates and overall factors to determine how much can be borrowed vary from that of a personal mortgage but the overall nature of them is the same.
Factoring
This form of borrowing is really more of a ‘purchase’ as this is a financial transaction in which the company sells its accounts receivable to another company at a discount. This is best used when the company is growing and has lots of invoices/accounts receivable that aren’t meant to be paid for 30-60-90 days but the business needs to get paid (the cash flow) in order to continue to grow or handle day to day expenses.
Merchant Cash Advance (MCA)
For businesses that have strong monthly cash flow, such as a retail store who accepts credit card payments, this ‘loan’ type is really more of an advance on its future sales. The Merchant Cash Advance (MCA) company will review the cash flows coming through the accounts and be willing to advance a percentage of sales ahead of time to be paid back in a shorter time than a typical loan. Businesses that typically benefit from these loans include; restaurants, e-commerce stores, retail stores. If you think this is the best option for you we’ve partnered with an MCA company and you can complete the simple application here.
Other Lending Options
There are always other types of loans or reasons why a company might need to access credit and we want you to reach out if you do! Here are some of the other common ways we help businesses access credit.
- Start Ups (everyone has some ideas, or you’ve bootstrapped it for long enough, an injection of capital to continue the growth of your business)
- High Growth Businesses (typically in the digital and/or subscription space)
- Law Firm Lending (Law Firms/Lawyers looking to increase their firm’s cash flow due to disbursements eating up their existing credit or partners’ capital)
- Private Equity (An alternative form of private financing, not in the public markets, where the investor(s) directly invest in your company, or engage in buyouts of such companies)
- Real Estate Development
- Medical Professionals (start up, purchase, expand – we do it all)
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