CASH FLOW LOAN
Benefits: Perfect credit not required, Collateral not required, Short time to funding, little paperwork.
Drawbacks: Higher cost, Sometimes daily or weekly automatic payment
2 years tax returns (if requesting $75k+)
4 months bank statements
4 months credit card processing statements
BUSINESS CREDIT CARD
Benefits: 0% intro APR's, Spending Rewards.
Drawbacks: Variable rate, Possible annual fee.
3 years tax returns.
4 months bank statements.
4 months credit card processing statements.
LINE OF CREDIT
Benefits: Only pay interest on funds drawn, Credit is available when you need it, It is suitable for the majority of business needs.
Drawbacks: May require collateral in some cases, Higher interest rates if you have a low credit score, There is a personal guarantee.
3 years tax returns.
4 months bank statements.
4 months credit card processing statements.
TERM LOAN
Benefits: Loans are approved quickly, No collateral may be needed, Little paperwork, Lower rate.
Drawbacks: Excellent personal credit is required, Shorter repayment term than bank loans.
1 year tax return
6 months business bank statements
4 months credit card processing statements
Year-to-date financials (P&L and BS)
MERCHANT CASH ADVANCE
Benefits: Short time to funding, No collateral required, Repayment adjusts to how well business is doing.
Drawbacks: Higher cost depending on qualifications, Revenue and sales history required.
3 years tax returns.
4 months bank statements.
4 months credit card processing statements.
FACTORING
Benefits: Immediate cash to cover funding gaps, No required credit check, Spend less time collecting from customers.
Drawbacks: Customer may rather deal directly with business, Depending on the situation can be a higher cost.
3 years tax returns.
4 months bank statements.
4 months credit card processing statements.
SMALL SBA
Benefits: Low APR, Fixed or variable rate.
Drawbacks: Longer application process, Require a personal guarantee or collateral.
3 years tax returns.
4 months bank statements.
4 months credit card processing statements.
EQUIPMENT
Benefits: Lowest interest rate to buy equipment, Tax deductible and depreciation benefit, Own the equipment outright.
Drawbacks: Equipment with loan can become outdated, Higher downpayment than lease.
3 years tax returns.
4 months bank statements.
4 months credit card processing statements.
LARGE SBA
Benefits: Lowest interest rates of all types, Longer terms, Can borrower larger amountSeeking.
Drawbacks: Application is time consuming, Long time to approval and funding, Down payment required.
3 years tax returns.
4 months bank statements.
4 months credit card processing statements.
COMMERCIAL REAL ESTATE
Benefits: Low APR, Earn equity on property, Built in collateral.
Drawbacks: Must include plans to build a structure, Longer application process.
3 years tax returns.
4 months bank statements.
4 months credit card processing statements.