This product is better described as unrestricted cash working capital, that is fully tax deductible and paid back on monthly payments over 5 years - while not counting as a funding position.
With Business-credit loans you will never have to personally guarantee the financing. Your business will guarantee it, and you will only sign as the owner of the business and not as yourself personally.
With our Business-credit loans product the payments will be monthly and NEVER weekly or daily like merchant cash advance payments. The first payment will be larger as it will include a pro-rate for the first partial month as well as the first full month, and a set up fee of no more than $250. However, the first payment will not be due for more than 30 days from the time of funding. After that they payments will be due like clockwork each month.
It is always great when you get what you are promised. Our business-credit loans program will always be a 5 year term. There will not be any of the bait and switch tactics which are commonly used in the business funding arena. When we say “5 years”, we mean five years. The only downside to our long term funding is that we cannot guarantee a traditional prepayment discount. This is because the product is a non-traditional, specialty financing method for obtaining business-credit loans.
What are the basic qualifications?
(Based on American SBA previous clients)
Now, let’s be clear. The business-credit loan is amazing, and that’s why we have reserved it for amazing clients.
These are are the basic qualification guidelines to help you determine if your business to qualify:
After tax deductions taken year by year over a 5 year term, this business-credit loan product will cost about 20% per year (simple interest). That is also with no personal guarantee attached; so your personal credit and assets are never at risk.
If you compare that with merchant cash advance rates it is night and day.
A. With a merchant cash advance there is no tax deduction.
B. With a 2nd or 3rd position merchant cash advance, by the time your business is done paying off the money (after all fees), the cost could be as high as 100% per year or more. For example: with origination and other fees, a 1.33 factor rate advance given for 4 months really costs about 40% (10% per month). If renewed twice in a year that is now close to 120% interest in just 12 months for 3 fundings of about the same amount each. Each of those fundings will also require a personal guarantee, and may even require a confession of judgment, all while being paid back daily or weekly at best.
When you work with business-credit loans you can count on getting affordable no personal guarantee working capital if your business qualifies.
With business-credit loans there will be no restrictions on how your business uses the funds.
A. You will not be required to pay off any merchant cash advance balances or other funding or loan/line of credit balances. The money is yours to use for your business any way you like.
B. If your business is currently in any type of restrictive situation such as a reverse consolidation or even an SBA loan application, this particular funding product will be undetectable to your creditors. That is because the money is strategically funded via business check and not via bank deposit by ACH or wire. The UCC will show a zero dollar amount and will not show that it is a loan or advance. This will allow your business to receive this funding without having to sacrifice any current or future financial opportunities.