Everything you need to know about small business funding.
How long are the terms?
The duration of the term can fluctuate depending on the specific product and qualifications, including credit history and the length of time in business. On average, term lengths typically fall within the range of 8 to 18 months. However, for term loans, it's possible to extend the term up to 5 years, while high-risk funding options may have shorter terms as brief as 3 months.
Are these daily payments?
The payment structure, much like the term length, is determined by various qualifications such as credit history, business tenure, and the chosen product. Consolidation products consistently feature monthly payments, while term loans also follow a monthly payment schedule. Bridge funding, on the other hand, offers the flexibility of weekly or daily payments. Our commitment is to secure a weekly payment arrangement whenever possible, as it is often more favorable. You can expect your funding advisor to provide a comprehensive discussion on this matter during your consultation.
Do these build credit?
Certain products do contribute to the establishment and reporting of your business credit profile. It's important to note that none of these products have an impact on your personal credit score. Building a strong business credit history is essential for accessing conventional financing, making this an advantageous feature. Your funding advisor will provide clarification on whether your approval option involves reporting to your business credit or not.
Do you make a hard inquiry?
No, there are no hard inquiries involved in assessing your options. In specific cases and scenarios, a few products may necessitate such inquiries, but we are transparent and will inform you beforehand if this is the case. Unlike many other services, we refrain from conducting multiple credit checks that can be intrusive. Typically, a hard inquiry may be required at the conclusion of the funding selection process if you decide to proceed with it.
Are you a lender?
No, and what sets us apart is our upfront approach in this regard. Our team of funding advisors, including the founder, possesses extensive expertise in identifying your best opportunities. Navigating the funding landscape can be likened to traversing a complex maze filled with potential pitfalls, which underscores the importance of having a highly experienced advisor to guide you. Attempting to navigate this terrain independently can lead to costly mistakes in various ways.
How are you paid?
Upon the successful completion of funding, Accelerated Financing earns a commission from the funding source. This commission is either equal to or lower than what you would incur when dealing directly with the source. Importantly, we do not impose any fees whatsoever, in stark contrast to some providers who clandestinely include extraneous charges in your funding arrangements.
What is the rate?
The cost associated with our financing options varies significantly, contingent on various factors such as credit history, business tenure, industry, and the specific funding product chosen. To provide an overview, term loans typically come with an annual percentage rate (APR) ranging from 8% to 15%, lines of credit range from 9% to 20% with a simple interest structure, and bridge funding entails costs between 15 cents and 40 cents per dollar, featuring prepayment discounts. Your funding advisor will provide you with an initial estimate within an accurate range upfront, ensuring that there are no unexpected surprises. It's important to note that alternative finance differs from traditional bank financing, and while it offers ease and speed, these benefits do come with associated costs.
What states can be funded?
We have the capability to operate in all 50 states, though it's worth noting that certain products, such as merchant cash advance consolidation, may have geographic limitations and are available only in specific areas.
How quickly will I be funded?
The timeline for funding approval largely hinges on the chosen product and your prompt provision of necessary documentation. In most cases, funding can be secured within one to two days, although term loan products typically require approximately 15 days for processing.
How is funding eligibility determined?
Loan eligibility for small businesses depends on factors such as creditworthiness, time in business, financial health, and the type of loan you're applying for. Lenders assess your credit history, business financials, and the viability of your business plan. Factors like collateral, industry trends, and personal guarantees can also influence approval. To improve your eligibility, focus on maintaining a strong financial record, establishing a solid business plan, and understanding the specific criteria for the loan you're seeking.
