Working Capital Loan
- Up to $2,000,000
- In as fast as one day
- Simple interest as low as 9%
- Terms from 3 months to 3 years
- Daily, weekly, monthly payment options
A Working Capital Loan combines attributes of a Merchant Advance and an Expansion Loan. It's uncollateralized, repaid with fixed simple interest. There's no interest rate; fixed payments exist, but term approximates based on projected gross revenue.
Working Capital Loans typically exhibit elevated costs and briefer terms, along with frequent payments. Due to the absence of collateral and often no profitability assessment, these loans have different dynamics. Their repayment isn't fully amortized, as simple interest involves a fractional reimbursement. The loan structure prioritizes rapid turnaround, making early repayment generally impractical.
Working Capital Loans are tailored for brief, profit-generating initiatives such as:
- Marketing Campaigns and
- Advertising
- Storefront Renovations
- Seasonal Hiring
- Bulk Inventory Purchases
The majority of small businesses can fulfill minimum criteria for a Working Capital Loan. Approval standards are notably more forgiving, encompassing factors like business tenure, industry, and cash flow, not solely reliant on credit. Securing this loan type often only requires your business bank statements.
Expansion Loan
- Up to $500,000
- In as fast as one week
- Interest as low as 4.99%
- Terms from 6 months to 10 years
- Weekly, bi-weekly, monthly payment options
Expansion Loans operate similarly to conventional term loans, but they're not typically obtained from local banks. Occasionally, collateral is required for these loans. You receive a predetermined sum at a fixed interest rate, repaid in regular intervals over a defined timeframe.
Expansion Loans tend to feature reduced costs and extended terms with more spaced-out payments due to their typical application in larger-scale ventures. These loans follow full amortization like traditional term loans, involving both principal and interest payments. Consequently, you'll only be liable for accumulated interest, affording substantial savings if you opt for early repayment.
Expansion Loans are designed for extended projects with delayed returns on investment such as:
- Physical Expansion or
- Additional Locations
- Equipment Financing
- Product Development
- Debt Consolidation
Expansion Loans entail the strictest approval requisites. Usual recipients boast strong personal credit, a low debt-to-income ratio, and a well-established, profitable business that can manage periodic payments over the longer term, even amidst revenue fluctuations. Typically, both business and personal financial statements are necessary.
