Term Loan
One lump sum, a fixed rate, and a repayment schedule you can plan against.
- Amount
- $20,000 – $1,000,000
- Cost
- From 5.5%
The six programmes
Business Line of Credit
A facility you draw on when you want it and pay for only when you use it.
- Amount
- Up to $1,000,000
- Term
- 6 months – 3 years
- Cost
- From 4.5%
- Funded in
- 1 – 2 days
Line of credit
What it is, and where it fits badly
A line of credit is an approved amount you draw against as you need it, paying interest only on what is drawn. Repay, and the room comes back. Undrawn, it costs nothing.
Lenders usually look for about six months trading, $50,000 a year in revenue and a credit score around 560. Some ask for a personal guarantee, which is worth establishing before you are comparing offers rather than after.
- What to ask the lender
- Ask whether there is a fee for having the line open and undrawn, and whether a personal guarantee is required.
What it gives you
Why an owner takes this one
- Interest on what is drawn, not on what is approved
- Draw, repay, and draw again on the same facility
- No obligation to use it once it is open
- No restriction on what a draw is used for
The application
One application. 80+ lenders. Fifteen minutes.
About fifteen minutes. One application reaches 80+ lenders, costs nothing, commits nothing, and leaves no mark on the owner's credit score.
Rather talk to somebody first? (844) 528-8696, Mon–Fri, 8am – 8pm.
The six programmes
Where it sits among the six
Business Line of Credit
A facility you draw on when you want it and pay for only when you use it.
- Amount
- Up to $1,000,000
- Cost
- From 4.5%
Short-Term Business Loan
A term loan on a short runway, for something that will pay itself back quickly.
- Amount
- $10,000 – $1,000,000
- Cost
- From 6%
Working Capital
Funding for payroll, rent, stock and the weeks that do not line up.
- Amount
- Up to $1,000,000
- Cost
- From 4.5%
Equipment Financing
The longest term here, and the only programme secured on what it buys.
- Amount
- Up to $250,000
- Cost
- From 8%
Business Cash Advance
A sum against future sales, repaid as a share of them.
- Amount
- $5,000 – $500,000
- Cost
- 10% – 35% factor
The cash advance is priced as a factor and the other five as a rate, and the two do not compare. A factor of 1.2 on $100,000 is $120,000 to repay whether it clears in six months or eighteen — settling it early does not make it cheaper. Interest falls when the balance does. Any comparison that puts a factor beside a rate is comparing two different things.