Frequently Asked Questions
Do you fund start ups? No, we do not. Businesses are required to have a business checking account with at least 3 months of bank statements.
What factors do lenders consider when evaluating my eligibility for financing? Lenders typically consider factors like personal and business credit history, business plan, revenue projections, collateral, industry type, and your ability to repay the loan.
How does my personal credit score impact my ability to secure business financing? Your personal credit score can significantly influence your loan eligibility and interest rates. A higher credit score generally improves your chances of securing favorable financing terms.
What documents and information will I need to provide during the loan application process? Commonly required documents include financial statements, tax returns, bank statements, identification, and legal business documentation.
Are there any specific loans or programs designed for first-time business owners or startups? Yes, there are SBA loans specifically designed to assist startups and first-time business owners. These loans offer favorable terms and may require less collateral.
What are the interest rates and repayment terms associated with the financing options available to me? Interest rates and repayment terms vary based on the type of financing and the lender. Generally, SBA loans offer competitive rates, while other options like merchant cash advances may have higher rates.
Can I qualify for financing without providing collateral or a personal guarantee? It may be challenging to secure unsecured financing without collateral or a personal guarantee, especially for first-time business owners. Lenders often require some form of security to reduce risk.
Are there any fees or hidden costs that I should be aware of before taking out financing? Yes, some loans may come with application fees, origination fees, prepayment penalties, and other costs. It's crucial to understand all fees associated with the loan before proceeding.
How long does the loan approval process typically take, and when can I expect to receive the funds if approved? The loan approval process duration varies among lenders. It can range from a few days to several weeks. Once approved, you can expect to receive the funds shortly after completing all required documentation and agreements.
