Archive September 2023

BEST LOAN PROGRAM FOR RURAL COMMERCIAL REAL ESTATE

BEST LOAN PROGRAM FOR RURAL COMMERCIAL REAL ESTATE

 

USDA BRIDGE LOAN

 

Get funds faster with BRIDGE2USDA

Bridge the gap between application and approval with a short term bridging loan of $2m to $15m*. Get fast access to the capital your business needs and start your growth plans today.

We work collaboratively with your USDA lender to provide funds before the USDA has approved the guarantee. These fast and flexible funds mean that you can start your project quickly, instead of waiting several months for your approval to come through.

We support loans across the full suite of USDA guaranteed business programs including the Agriculture Innovation Center Program, the Business and Industry Guarantee (B&I) programs, the Rural Business Investment Program (RBIP), the Community Facilities Guaranteed Program and the Rural Energy for America Program (REAP).

 

BRIDGE2USDA can accelerate cash ahead of your USDA loan in two different ways:

  1. Your USDA lender has approved your loan and you are waiting for the USDA to provide a guarantee – this takes three to six months, so we bridge the gap
  2. You do not have a USDA lender yet, but need cash to start your project (property purchase, machine equipment) – in this instance we work with a USDA approved lender and bridge the gap until the USDA provides a guarantee

 

We Arrange Financing to all industries and most situations eligible for the USDA guarantee. Our key criteria are:

  • 3-9 months term
  • $2m-$15m facility size
  • 100% qualifying asset cover
  • Clear assets and spending plan
  • Corporation in good standing
  • Approved or starting loan process with a USDA lender

APPLY NOW

 

 

Peak Capital Funding® Official Website | When Banks Say NO, We Say YES

Peak Capital Funding® Official Website | When Banks Say NO, We Say YES

How Much Can I Borrow?
Without Collateral – Up to $5 million
With Collateral – Up to $10 million

How Long Do I Have to Pay Back Borrowed Funds?
Choose from term lengths between 6 months – 25 years, with
fixed or flexible repayment options available.

How Long Until I Receive Funds?  Your funds can be in your account as fast as 72 hours.

 

**Each situation is unique, and additional information may be requested at
any time, depending on each individual business. After offers are
presented, your client may be required to provide additional verification.
documents, including their driver’s license and/or voided business check.

What Do We Offer?

Business Line of Credit

Business Term Loan

Equipment Financing

Cannabis Financing

Healthcare Business Loans

Business Merchant Advance

Best small business loans for under $100,000

Best small business loans for under $100,000

Apply in minutes. Get funded fast.

With lower rates, you can boost your business while saving thousands on payments

Business Loans: What You Need To Know

It’s not unusual to need a business loan to cover expenses you can’t handle with your current budget. Seasons and circumstances change, impacting daily cash flow and your ability to support continued growth. Before approaching a lender, educate yourself on the types of loans available, the terms you can expect, and what documentation will be required to determine eligibility.

5 Best Small Business Loans of 2023

5 Best Small Business Loans of 2023

 

Our Top Picks for Best Small Business Loans

 

Types of small business loans

Business loans is more like a catch-all term for a variety of business financing products. The term includes loans, lines of credit, merchant cash advances, invoice financing and invoice factoring. The best funding solution depends on the type of business, the purpose of the loan, the owner’s credit profile and the business’s financial history.

Commercial real estate loans

Commercial real estate loans are used to purchase or renovate commercial property. Typically, lenders require business owners to occupy at least more than half of the property to qualify for this type of loan.

Invoice factoring

With invoice factoring, you sell your outstanding customer invoices to a factoring company at a discount. The company will give you a portion (say 90%) of the total outstanding amount and then collect payment directly from your customers. Once the company has collected payment from your customers, the factoring company will release the rest of the funds to you, minus a factoring fee.

Invoice financing

Not to be confused with invoice factoring, invoice financing involves borrowing against your unpaid invoices. Say you’re strapped for cash and have a stack of unpaid invoices. You can go to an invoice financing company, use the invoices as collateral and access a cash advance equivalent to the invoice’s value. When your customers pay their outstanding balances, you use that money to pay the invoice financing company.

The key difference between invoice financing and invoice factoring is that invoice factoring involves selling unpaid invoices to a third party while invoice financing does not. You still own the invoices and are responsible for collecting payment from your customers.

Equipment loans

Equipment loans are commercial loans that allow you to buy or lease the equipment you need without putting any money upfront. These loans use the equipment itself as collateral; if you can’t repay the loan, the lender will seize your equipment.

Business lines of credit

Business lines of credit are revolving loans, which means more funds become available to you as you repay what you borrow — similar to a credit card. Lines of credit are a good alternative for companies that need funds quickly to cover emergency expenses. You pay interest on what you borrow, and repayments are scheduled daily, weekly, or monthly.

Business credit cards

Business credit cards keep commercial credit card expenses separate from the owner’s personal credit activity. Cardholders benefit from higher credit limits, free employee cards for authorized users and rewards programs for regular business expenses like office supplies or ads on social media. Typically, business card issuers will report your credit activity to business credit bureaus so this is also a useful tool to boost your business credit history.

Term loans

Term loans are disbursed as lump sums and paid over a predetermined period, also known as term. Term loans can have fixed or variable interest rates and repayment terms of up to five years.

Merchant cash advances

A merchant cash advance allows you to get a lump sum amount in exchange for a percentage of your future credit and debit card sales. You can get same-day funding with a merchant cash advance, which makes this a great option for emergencies. However, MCA rates can be extremely high, and repayments must be made daily or weekly.

Franchise loans

Franchise loans allow you to get upfront financing to cover franchise fees, legal fees, real estate costs and other day-to-day expenses related to becoming a franchise.

 

How to get a small business loan

When looking for small business funding, consider the following tips.

1. Decide which loan type is best

Financing an expansion or covering cash flow issues, payroll and other overhead costs require different loan types. Take time to evaluate which lending institution is the right fit for your business too, be it an SBA-backed bank, an online lender or a peer-to-peer lending platform.

2. Look into various lenders

Business financing is available from banks, credit unions, online banks and peer-to-peer lending platforms. First, narrow down your options by choosing lenders based on their reputation and reliability. Once you’ve got a shortlist, finding the right match depends on what you qualify for, the type of financing your business needs and which banking service you prefer, whether online or traditional.

3. Compare interest rates

Shop around and compare funding options from different lenders to get the lowest rate. Keep in mind that revolving loans, business credit cards, accounts receivable financing and merchant cash advances can have higher interest rates than other funding options. Additionally, non-bank online lenders tend to offer much higher rates than banks. Don’t forget about the lender’s maximum loan amounts and term length options while you’re comparing interest rates.

4. Look into fees

Take into account any fees associated with the lender or the loan type. Most lenders will charge an origination fee, yet many will waive prepayment penalties and closing fees. Other fees may include funding, opening, closing, draw, maintenance and wire transfer fees.

5. Prepare to apply

To qualify for a small business loan, you will need a good business or personal credit score (rates of 660 or above are preferable) and a business checking account. You will also need to meet a minimum revenue requirement (most online lenders require at least $100,000) as well as business, legal and financial documentation:

  • Loan application form
  • Evidence of business history
  • Business plan
  • Business credit report
  • Personal and business tax returns
  • Bank statements
  • Accounts receivable and accounts payable
  • Collateral in the form of business or personal assets
  • Legal documents such as articles of incorporation
Small Business Owner, get the working capital you need.
If you want more flexibility than a commercial bank might offer, an alternative source like Peak Capital Funding is ready to offer you a loan. Click on your state and take the first step today.

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Best Small Business Loans Of September 2023

Best Small Business Loans Of September 2023

Tips for Comparing Small Business Loans

Consider these tips when comparing small business loans:

  • Where possible, prequalify. Some business financing lenders offer a prequalification process. This means prospective borrowers can share details about their financing needs, revenue and other relevant information to find out what loan amounts, rates and repayment terms they may qualify for. This process typically only requires a soft credit inquiry, which has no impact on your credit score.
  • Determine how you want to receive your funds. Two of the most common ways you can receive and access your business funds are through a lump-sum payment or on an as-needed basis. If you want to receive your funds up front, choose a traditional working capital or term loan. However, if you want to use funds only as you need them, consider a business line of credit.
  • Consider the repayment terms and flexibility. Each business financing lender has its own repayment structures. While some types of financing require monthly payments, others may require daily or weekly payments. Take this into account when choosing your preferred lender and business loan.
  • Look out for additional fees. Some lenders offer fee-free business loans that don’t require borrowers to pay origination fees, late payment fees, prepayment penalties or any other common loan costs. However, this is not always the case. Be sure to confirm a lender’s fee structure when shopping for the best terms. Factor in additional fees into your decision-making process.
  • Evaluate the lender’s customer support options. If you’ve found a lender that’s prepared to offer the money you need at acceptable terms, consider the lender’s support options before signing the loan agreement. Customer support can make a huge difference down the line if you encounter issues with repayment. Research the lender’s customer service resources and read reviews to make sure it’s a good fit.

Best Small Business Loans Of 2023

How To Choose a Small Business Loan

Just as certain types of loans are more appropriate for certain businesses, some lenders may be better suited to your business than others. Consider these factors to choose a small business loan:

  • Lender reputation. Check online reviews so you’re aware of any red flags or potential issues before you sign on the dotted line. If you plan to work with a local bank or credit union, check with other local business owners to see which institutions have the best reputation.
  • Qualification requirements. Most small business loans are underwritten based on the business owner’s personal credit score and are personally guaranteed. The minimum credit score required to qualify for a small business loan depends on the lender and the type of loan. So, it’s generally a good idea to check your personal credit score and then research each lender to compare minimum credit score requirements.
  • Available loan amounts. Loan amounts vary by lender and loan type. Before choosing a small business lender, evaluate your business’ borrowing needs and shop for a loan that fits those parameters.
  • Underwriting and funding speed. The amount of time it takes to process an application and receive funds varies widely by lender and loan type. In general, it can take anywhere from a couple of days (in the case of a merchant cash advance) to several months (for an SBA loan) to receive funds after submitting an application. If you need a loan quickly, choose a loan type and lender that can meet those time constraints.
  • Annual percentage rate. APRs also vary by loan type and lender, but generally range anywhere from 5% to 99%. The most creditworthy applicants qualify for the lowest rates, but some lenders are more competitive than others.
  • Additional costs. Many lenders charge origination fees that cover the costs of processing applications and underwriting loans. Likewise, some lenders charge prepayment penalties for borrowers who opt to pay off their loans early, while others charge draw fees on lines of credit. However, borrowers should not be charged application fees, and any fees levied prior to loan approval are a red flag.

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