Frequently Asked Questions

How does the process works?

We put together an executive summary with the information you provide in your online application. We then look at your business or personal credit report and send you an specific business loan request with the lending company we feel fits your needs. Additionally, we may need a few additional documentation that we will request as soon as we know what type of loan you'll be applying for.

Should I choose a loan, a line of credit or a lease?

• A term loan provides financing for capital expenditures such as fixed assets and other equipment needs which are regularly amortized over a period of years (e.g. 1 to 5 years).
• A line of credit gives you the flexibility and convenience of easily accessing funds whenever you need them for short term financing needs, without having to apply for a new loan.
• A lease can provide you with vehicle and equipment financing along with some additional benefits that a loan or line of credit can't provide (please consult with your tax advisor).

The purpose for which you intend to utilize the funds will also help you decide which to choose. For instance, a line of credit is the perfect solution for funding short-term operating capital needs. On the other hand, a term loan or a lease is a much better financing solution than a line of credit for acquiring business equipment or vehicles.

Should I choose a fixed or variable interest rate?

The answer lies in your tolerance for risk.

• A fixed interest rate provides the security of knowing what your interest rate and payment will be throughout the life of your loan.
• A variable interest rate loan may give you a lower rate and payment amount initially, with a chance that the rate and payment amount may rise or fall in the future.

How can I reduce my monthly term loan payments?

Extending the number of months you take to pay off a term loan will lower your monthly payment. However, it will take you longer to pay off the debt and your total borrowing cost may be higher. Also, the type of collateral you pledge to secure your loan may impact the interest rate. If you're acquiring business equipment or vehicles, a lease may also reduce your monthly payments without extending the term (please consult with your tax advisor).

What kinds of businesses benefit most from leasing?

Virtually all businesses have equipment that can be leased. In general, you can lease any business equipment or vehicles you use to generate revenue or increase operating efficiency. The types of businesses that most often benefit from leasing include manufacturing companies, transportation companies, printing companies, and professional corporations, such as doctors, attorneys or accounting firms.

Leasing works well for these companies because they can keep their equipment current without having to dip into capital. Since the capital isn't being used for equipment, the business can use that capital elsewhere for business development and expansion.

What are the benefits of leasing equipment or vehicles rather than financing with a term loan?

The one benefit of leasing that small businesses most often cite is increased cash flow. Because leasing typically requires little or no down payment and can often have lower monthly payments than a term loan, cash flow, or capital retention, is the most popular benefit. Another cash flow benefit is that a lease may give you a bigger tax write-off immediately (please consult with your tax advisor).

Depending on your business and the type of lease product you choose, the entire lease payment might be fully tax-deductible as a business expense, thereby reducing your taxable income. We suggest that before you decide on financing, you consult your tax advisor.

Is Small Business Administration (SBA) financing right for me?

An SBA loan may be the solution for you if your business is growing quickly and you cannot qualify for conventional financing at reasonable terms.

What are the terms?

Terms will vary depending on the product you request. Once your application has been completed and processed, you will be notified of your terms.

What will my interest rate be?

Many factors are considered in determining the interest rate for your credit request such as the product type, your credit history, and the product for which you're applying. You will be notified of your rate once approved.

Will I need to personally guarantee the credit request?

Your personal guarantee may be requested depending on the type and size of your credit request along with some additional factors.

How can I obtain funding to start up a new business?

There are several ways to obtain the funding you need. Once you determine how much you'll need, you can go to Small Business Administration (SBA) to find out about the types of SBA government-guaranteed start-up loans that are available. Or call us to find out about conventional loans and lines of credit that we can help you attain for your small business.