Term Loans
Working Capital Loan
Expansion Loan
A TERM LOAN is a one-time payment that must be repaid with interest over a set period of time.
- Up to $2,000,000
- In as fast as one day
- Simple interest as low as 9%
- Terms from 3 months to 3 years
- Daily, weekly, monthly payment options
- Up to $500,000
- In as fast as one week
- Interest as low as 4.99%
- Terms from 6 months to 10 years
- Weekly, bi-weekly, monthly payment options
HOW DO THEY WORK?
A working capital loan is a solution that combines the advantages of expansion loans with merchant advances. Product with no collateral and a fixed simple interest rate. Although there is no interest rate and no set payments are required, the length is only an estimate based on the business’s expected gross revenue.
Expansion Loans function precisely like traditional term loans, with the difference that you will not be able to obtain them from your local bank. In some cases, you may be required to provide collateral to support an expansion loan. You receive a predefined sum of money with a predetermined interest rate, which you repay in installments over a predetermined period of time.
WHAT DO THEY COST?
Because there is frequently no collateral and no profitability analysis, working capital loans are typically more expensive, have shorter terms, and need more frequent payments. Working Capital loans are created for speedier turnaround, therefore it makes no sense to pay them off early because simple interest is only a cent-on-the-dollar repayment and so does not fully amortize.
Expansion loans often feature lower interest rates, longer terms, and more flexible payment schedules because they are used for larger-scale goals.Expansion Loans, like standard term loans, have comprehensive amortization schedules that include principal and interest payments. As a result, if you pay it off early, you will only owe the interest that has already accumulated.
WHEN WOULD THEY MAKE SENSE?
WORKING CAPITAL LOANS – FOR SHORT-TERM PROJECTS WITH IMMEDIATE PROFITS LIKE:
- Marketing Campaigns And Advertising
- Storefront Renovations
- Seasonal Hiring
- Bulk Inventory Purchases
EXPANSION LOANS – FOR LONG-TERM PROJECTS WITH DELAYED RETURN ON INVESTMENT, SUCH AS:
- Physical Expansion Or Additional Locations
- Equipment Financing
- Product Development
- Debt Consolidation
WILL I QUALIFY?
Small businesses may often meet the minimum requirements for a working capital loan due to its significantly more flexible approval criteria, which are holistically based on time in business, industry, cash flow, and more, rather than merely on credit. You can apply for this form of funding by simply submitting your company’s bank statements.
Expansion Loans have the most stringent approval standards. The usual borrower has outstanding personal credit, a low debt-to-income ratio, and a well-established, thriving business that will allow them to make periodic payments despite revenue swings over the typically longer term. Financial statements for your company and for yourself are frequently asked.
