Business Loans
Business Loans
Need to finance a small or large business?
There are 3 different avenues to consider when shopping for business funding:
- Non-SBA Private lender loans — similar structure to SBA guaranteed loan for loan requests of $150 – $7 million. LTV/LTC up to 85% with credit score requirement 680 and above. Interest rates comparable to SBA with a 5-4-3-2-1 prepayment penalty. 7-, 10-, 15- and 20-year amortized financing. Assets may include real estate, equipment and working capital.
- Merchant Cash Advance (MCA)—$5K—$1 million can be deposited, as a credit line, into your business account in a matter of hours! Secured only by your business checking account. No credit check required. Income driven only.
- Low-Cost JV Capital— excellent method of generating up to 100% of the cost of the business. It provides the price of the business if greater than $5M.; a great way of capitalizing both ground floor startup or purchase an existing business. If you don’t need to close right away. Interest rates hover around 8%, depend on principal and project with a max term of 10 years. Typical finance range is $5M – $200 Million.
With ACF, business financing includes virtually any type of equipment and couldn’t be any easier to qualify. Larger businesses may fare exceptionally well.
Some are less expensive than small business capital. In some cases, may be subordinated to primary lender debt. As ACF has extensive knowledge in capitalization reach to provide you with the right funding for your business needs national or international.
Easier money is available for buying existing businesses…franchised or not.
Today, accessing business capital to start a business is not what it was before the past economic implosion. The primary difference is in the definition. Before, borrowing money to capitalize business start was an accepted practice, to line the store shelves and to get the doors open.
If you have stellar personal and business credit, long business history and can provide a debt service coverage ratio of 300% and higher, the same line of credit may be available today with little to no collateral and terms to fit your need.
What followed the economic meltdown, is you must fund stocking your store and opening your doors for business using your own capital. Should you survive for 6 months you may be eligible to qualify for a $5K—$50K startup business loan. Unless you chose to pursue low-cost JV capital to start a business from ground up?
There are many options for those who have a good idea, but do not have the resources to put into practice. Not being able to bankroll the expected equity capital injection or down payment is one thing; but not having the financial capacity to hire professional investment banking services allowing you to benefit the most from the private capital market is another.
Contributing to the cost associated with your funding request proves your confidence and commitment. That helps to convince others to invest in it. Being the primary beneficiary of the rewards from the business project, you must always be the lead investor in your own endeavor.
There are many financing formats, each with its pros and cons, and we must not forget that each form has its “price”, and not exactly a monetary one. In addition, each one has a different opportunity cost with what before resorting to one or the other, it is essential to be very clear since we need the money and at what price we are willing to pay for it.
Taking advantage of a low cost finance opportunity, using “creative” way it is possible to the validation of your commitment to your project with a few thousand dollars (sometimes even less). If we turn to validating the model, but we will give future investors a proof of our absolute faith in the project.
Contact us now to keep your business moving in the right direction!
Low-Cost JV Capital(debenture) funding provides the greatest overall flexibility for business purchase and startups. The funding range is 36 months – 120 months and usually no personal recourse.