Capital Financing

Every business relies on financing of some type. In fact, we see the goal of any company is to be investment grade, whether they actually accept equity investors or not. We help members know the right type of financing and use it to maximize business potential.

Debt

There are six loans that we feel help business owners best. Some loans, like merchant cash advances and personal loans for the business should be avoided because selling your products or services should be the main focus.

SBA Loans
A long-term, low-interest small business loan partially guaranteed by the government. To qualify, applicants typically need 2 years in business, 640+ credit score, and $100,000+ in annual revenue. Decision in 2 weeks.

  • $5k to $5m
  • 5 to 25 years
  • Rates from 6.5%

Term Loan
A lump sum of cash you pay back, plus interest, over a fixed period of time. To qualify, applicants typically need 2+ years in business, 620+ credit score, and $75,000+ in annual revenue. Decision in as little as 48 hours.

  • $25k to $500k
  • 1 to 5 years
  • Rates up to 30%

Equipment Loan
A loan that helps you purchase new business equipment by using that equipment as collateral. To qualify, applicants typically need 600+ credit score, and use the money to buy equipment. Decision in as little as 48 hours.

  • Loans up to 100% of value
  • Pay over life of equipment
  • Rates up to 30%

Line of Credit
A flexible “revolving” amount capital that works almost like a credit card, except you get access to cash and, in some cases, lower APRs. To qualify, applicants typically need 6 months in business and $50,000+ in revenue. Decision in 1 day.

  • $10k to $1m
  • 6 months to 5 years
  • Rates up to 25%

Invoice Financing
Accounts receivable financing lets you get paid for your outstanding invoices right away—for a fee. To qualify, applicants typically need 6 months in business and $50,000 in annual revenue. Decision in as little as 24 hours.

  • ~50 to 90% of the invoice
  • Taken when invoice is paid
  • Rates from 3%/wk of total

Short-Term Loan
Like a traditional term loan, but you pay back the money, plus interest, with daily or weekly payments payments over 3 to 18 months. To qualify, applicants typically need 6 months in business, 500+ credit score, and $100,000 in revenue. Decision in 24 hours.

  • $2,500 – $250,000
  • 3 to 18 months term
  • Starting at 10%

Equity

The method of raising capital by selling company stock to investors. In return for the investment, the shareholders receive ownership interests in the company. For the entrepreneur, equity financing is a method to raise capital for the company before it is profitable in exchange for diluted ownership and control of the company.

Venture Capital
A form of private equity (pooled financing), now regulated by the SEC and most states, that provides financing to small, early-stage, emerging firms that are deemed to have high growth potential.

Angel Investor
An affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.

Crowdfunding
Crowdfunding is the funding a project or venture by raising monetary contributions from a large number of (usually non-accredited) investors, typically by providing products or services in return.

Get in touch for my recommendations on best capital financing sources.

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