Business Term Loan
A lump sum, repaid on a fixed schedule
- Amount
- $20,000 to $1,000,000
- Cost
- Starting at 5.5%
Enclosure 4
Business Line of Credit
A limit to draw against, and nothing owed until you do
- Amount
- Up to $1,000,000
- Term
- 6 months to 3 years
- Cost
- Starting at 4.5%
- Funded in
- Funded within 24 – 72 hours
Enclosure 4 · Re
What a line of credit is for
A revolving line of credit is an approved limit the business draws against when it needs to, repays, and draws against again. The funds are available on demand and the charge is on what has been drawn rather than on the facility, so a line that is open and unused costs nothing to hold.
The term and the rate typically stay fixed, so what a draw will cost is known in advance rather than quoted at the moment of need. That is the property that makes this the right shape for a cost that is certain to arrive and uncertain in date.
It is the cheapest published rate on this schedule and it reaches the same ceiling as the term loan. The thing it asks in return is discipline: a limit that is always available is always available.
— The funding desk
Worth asking
One question to put to any lender
Ask whether the rate is on the drawn balance or on the facility, and what happens to the limit if a draw is repaid early.
Enclosure 11
The application
At no cost and no obligation. Fifteen minutes, six screens, and one application that reaches every lender on the network and qualifies the business for all six programmes in this schedule.
Rather talk to somebody first? (800) 540-2119.
Enclosure 3 to 8
Where it sits among the six
Business Line of Credit
A limit to draw against, and nothing owed until you do
- Amount
- Up to $1,000,000
- Cost
- Starting at 4.5%
Short-Term Business Loan
The same shape as a term loan, over four to twenty-four months
- Amount
- $10,000 to $1,000,000
- Cost
- Beginning at 6%
Working Capital Loans
For the running of the business, not for a purchase
- Amount
- Up to $1,000,000
- Cost
- Starting at 4%
Equipment Financing
Secured on the thing it buys, over one to five years
- Amount
- Up to $250,000
- Cost
- As low as 8%
Merchant Cash Advance
An advance on future sales, collected out of them
- Amount
- $5,000 to $500,000
- Cost
- Factor rate 10% – 35%