Loan Options for Your Business…Editor
If you’re reading this, it’s likely that you don’t want to, or can’t, go the traditional bank route. Companies, like Fast Capital, offer several program options, as mentioned in previous articles.
Approvals for short term loans tend to be the easiest to get and the most common programs. These programs typically have a term of 4-6 months with a daily payment. Documents you’ll need include the application, 4 months of bank statements and the current month to date report*. Decisions are reached within a few hours and funds are released within 24-48 hours. Upon approval. underwriters will request a additional items. Examples of post approval items are a copy of your license, a voided check, lease, proof of ownership, etc.
Everybody wants long terms and low interest. It’s a no brainer. Unfortunately, not everyone qualifies for that style loan. That’s not to say you won’t qualify. These programs offer lower interest (starting at 7.99%) and terms that range from daily to monthly for anywhere between 8-24 months. Further documents are required for premium style loans and approvals take slightly longer, however it will be worth the time.
If you hold other loans, the new loan will be in a second or third position. Rates and terms on a second/third position loan will have the same or higher paybacks as that lender holds a higher risk. A loan consolidation is an option that’s worth inquiring about with your adviser about as well. This allows you to have one loan with one rate and some capital left over. All cases are individual and vary on circumstances. Ask a business adviser to help you with what you qualify for and if this is the best choice for you.
Don’t be afraid to ask questions. Knowledge, as they say, is power. The goal for you, and your funder, should be getting you the best possible terms and rates and making your business money.
*Required documents vary depending on circumstances.