Business Lines of Credit
While there are many advantages to a line-of-credit for a business, the most advantageous may be the fact that a LOC allows a company to borrow as much money as they need without having to go through an approval process with a lender. The financing is pre-approved and is readily available to draw upon until they reach the maximum allowed.
What makes a line of credit most advantageous is the fact that in many cases, interest is only paid on the amount that is drawn from the line of credit, and not from the overall size of approved funding related to the financing facility.
- Unsecured Lines-of-Credit to $1,000,000.
- Secured Lines of Credit can exceed $10,000,000
While there are many advantages to a line-of-credit for a business, the most advantageous may be the fact that a LOC allows a company to borrow as much money as they need without having to go through an approval process with a lender. The financing is pre-approved and is readily available to draw upon until they reach the maximum allowed.
What makes a line of credit most advantageous is the fact that in many cases, interest is only paid on the amount that is drawn from the line of credit, and not from the overall size of approved funding related to the financing facility.
Reverse Consolidations
Does Any of the following apply to your business?
If you answered Yes to any of these questions, we can help!
Our reverse consolidation process provides business owners a way to consolidate outstanding MCA or Cash Advance positions and improve cash flow by up to 50%
- Is your business revenue down?
- Is your business cash flow down?
- Is your business struggling to pay invoices on time?
- Are you using credit cards to pay bills?
- Is your business delinquent on any of it's bills?
- Are you receiving collections calls or notices from creditors?
- Are you barely paying yourself to keep the business operating?
- Is your business not able to qualify for a more traditional bank loan right now?
If you answered Yes to any of these questions, we can help!
Our reverse consolidation process provides business owners a way to consolidate outstanding MCA or Cash Advance positions and improve cash flow by up to 50%
MCA - Merchant Cash Advance
Merchant cash advances are not loans but instead a business-to-business transaction that involves the selling of a company’s future credit card sales or a portion of the company’s bank deposits to a commercial lender in exchange for an upfront lump sum of funding at a discount. Since this type of commercial financing is cash flow driven, a company may get approved even with poor personal and business credit. This financing tool is usually used by small and medium-sized businesses that have a time-sensitive cash crunch, because approvals for merchant cash advances can take as little as 2-24 hours, with same day funding.
You can turn your future sales into the financing you need right now to run your business.
Merchant cash advances are not loans but instead a business-to-business transaction that involves the selling of a company’s future credit card sales or a portion of the company’s bank deposits to a commercial lender in exchange for an upfront lump sum of funding at a discount. Since this type of commercial financing is cash flow driven, a company may get approved even with poor personal and business credit. This financing tool is usually used by small and medium-sized businesses that have a time-sensitive cash crunch, because approvals for merchant cash advances can take as little as 2-24 hours, with same day funding.
You can turn your future sales into the financing you need right now to run your business.
Term Loans
Term Loans are a standard debt financing facility with standard payments (usually monthly) with a maturity and amortization schedule, ranging from anywhere in 6 months to 30 years in length (depending on use). Term loan sizes for small and medium-sized businesses can be as small as a few thousand dollars, and can range up to $5,000,000 for loans with SBA-enhancements, and well above that for other traditional facilities.
The repayment associated with most term loans are made monthly, although some alternative lenders will require payback be made on a weekly or even daily basis.
Term loans vary in size, structure and uses depending upon the commercial lending institution. A term loan from a bank may have a very different underwriting criteria than that of a mid prime lender that specializes in buying-out high-interest merchant cash advances. Term loans are usually collateralized with the borrowing company’s assets (building, land, equipment, accounts receivable, cash flow, etc.). While each lender has their own requirements, its common for a blanket lien to be placed on all the company’s assets when a term loan is provided to the business.
While each lender is different, a term loan provided by a conventional, private investment bank or SBA-preferred lender usually requires and extensive amount of business and personal financial documentation for due diligence during the underwriting of the loan. Traditional commercial lenders will require that the business prove it has an acceptable debt-service-coverage-ratio to ensure the lender will get paid back.
Term Loans are a standard debt financing facility with standard payments (usually monthly) with a maturity and amortization schedule, ranging from anywhere in 6 months to 30 years in length (depending on use). Term loan sizes for small and medium-sized businesses can be as small as a few thousand dollars, and can range up to $5,000,000 for loans with SBA-enhancements, and well above that for other traditional facilities.
The repayment associated with most term loans are made monthly, although some alternative lenders will require payback be made on a weekly or even daily basis.
Term loans vary in size, structure and uses depending upon the commercial lending institution. A term loan from a bank may have a very different underwriting criteria than that of a mid prime lender that specializes in buying-out high-interest merchant cash advances. Term loans are usually collateralized with the borrowing company’s assets (building, land, equipment, accounts receivable, cash flow, etc.). While each lender has their own requirements, its common for a blanket lien to be placed on all the company’s assets when a term loan is provided to the business.
While each lender is different, a term loan provided by a conventional, private investment bank or SBA-preferred lender usually requires and extensive amount of business and personal financial documentation for due diligence during the underwriting of the loan. Traditional commercial lenders will require that the business prove it has an acceptable debt-service-coverage-ratio to ensure the lender will get paid back.
424-245-0588
info@wfa.money
This is not an offer to lend or extend credit. Credit approval is subject to credit standards, and actual terms (including actual loan amount) may vary by applicant. Advisory Services USA requires certain supporting documentation with each new application and offers no guarantee of funding or loan offers and the terms thereof. All Loan decisions are made by our lending partners and subject to their specific underwriting criteria and approval processes.
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