Frequently Asked Questions
The process is not difficult at all. We want to make applying for a business loan as simple and easy to understand as possible. You fill out the online application and we work hard to fulfill the rest of the small business loan requirements to get you set up with a lender. Once we have compared multiple lenders, we will match you with loan options so you can decide which best suits your needs.
All Business Loans will match you with a lender that will either advance you up to 200% of your average monthly credit card sales or provide you with an unsecured cash loan based on specific criteria. Both of these options are unsecured financing which means there is no collateral or personal guarantee from the merchant. The idea behind this is that the lender is taking the risk on you and your business. There are agreed upon fixed percentages on your future sales that go towards paying back your balance. With the credit card type of loan, also known as a merchant cash advance, these loans are paid back on a performance basis. As your business makes money, you pay the lender. Unsecured cash advance loans have a different type of repayment structure that will be clearly outlined by the lender.
Our lender network will fund between $5K – $50M. It is entirely based on your current and future success of your business or assets.
For merchant cash advance loans, there is no interest rate. Most lenders use a factor rate. A factor rate is a onetime cost on the money based on the length of the program. The longer the program is, the higher the factor rate will be and there are no penalties or late fees. Interest rates for unsecured cash advances range based on multiple factors. Things like FICO, length of time in business, are banking history are important. Because All Business Loans has the largest network or private capital sources, we are able to find you the best business loans rates possible. Our lenders compete for your business, thereby driving down the rate you pay. You will see any rates, fees and interest rates before signing/accepting anything.
If you are approved for a merchant cash advance, the lender will put a holdback percentage on your future credit card sales. Sometimes, lenders will request a 10% holdback fee which means at the end of the day if you had $500 in credit card sales, $50 would go to paying back the loan and your business would take the remaining $450 as usual. There will be a daily holdback taken until the loan is paid off. Usually, for unsecured cash advances the lender will pull a very small, pre-agreed upon amount from your bank account. Because the amount is so small and takes place daily, you will barely notice it. Our business lenders want to make sure you continue to prosper and will work with you regarding a flexible repayment structure that fits your needs.
The overall cost or payback of the loan depends on many factors, some of which different from lender to lender. Some examples of how much you pay back will be dependent on what business industry you are in, what your credit score is, how long the loan program will be, what your bank statements look like, etc. Factors that determine cost all are centered around what makes up the cost of capital.
When you are matched with a lender that is going to give you a merchant cash advance, the holdback percentage is dependent on what type of program you decide upon. If you are looking for a short term business loan, the percentage will be higher since it is over a smaller period of time, whereas a longer term loan will have a lower percentage with more payments.
The loan programs in our network of lenders typically range from 4 to 9 months long. Some programs can be shorter and some can be as long as 12 months long, but you usually must have a higher FICO score to qualify for a longer term.
No. Accepting credit cards is not a requirement of business funding. However, if you do, our lenders have excellent relationships with many different processors so you will not have to change your current system. If you do not want to change your processors, the lender will set up an ACH program or a lockbox. An ACH program will apply the holdback percentage to your credit card deposits into your bank account. This option has a 24 hour delay but will not affect your business. The Lockbox is a 3rd party bank account that your credit card deposits will get batched out to. After 24 hours, the lender will take the holdback percentage and the remainder will be deposited into your business bank account.
In today’s economy, banks just aren’t lending like they used to. It has become more and more difficult to be approved for a small business loan though traditional banks even with a perfect credit score. At All Business Loans, we have a large network of lenders, giving you the best possibility to be matched for the loan you want and need!