Hybrid SBA Loan
Over the years, all of our clients have wanted 2 things: Immediate financing and SBA loan terms. The unfortunate reality is that the immediate funding products have much shorter terms and a higher cost of money. And an SBA term loan typically takes 60 days to close. The Hybrid SBA Loan is our solution to that problem…..
Here's how it works:
1. We'll submit you for the SBA loan and will have a pre-approval determination by the following day. Once pre-approved, this generally takes 60 days to close.
2. Once we receive a pre-approval, we'll submit you for an immediate bridge financing. We can typically have an approval same-day and fund within 2 days.
3. We'll then use the SBA loan to payoff the immediate bridge and provide additional funding on top, if needed.
This really is the best of both worlds - SBA Terms, Funded Immediately.
Merchant Cash Advance
This is a one time, lump sum advance in exchange for a percentage of your future sales. A cash advance is not a loan, has no interest rate and will not appear in your balance sheet as financial debt. This provides an alternative financial solution for business owners that do not qualify for a short term loan.
Funding max of $1,000,000
Term lengths between 2 and 18 months
No collateral required
Repayment via automated ACH debit – daily or weekly
The difference between the amount you receive and the amount of your future sales you sell is tax deductible (consult your accountant)
Builds business credit
Same day approvals
Funding within 2 business days
Example:
1. You agree to sell $24,000 of your sales over the next 12 months, for $20,000 today.
2. Every business day, for the next 12 months, a small percentage (usually 10% or less) of your daily sales is remitted to the purchaser via automated ACH withdrawal from your business bank account.
3. This is a fixed dollar amount and in this case, would be $100/day. By setting a fixed daily (or weekly) dollar amount, it simplifies accounting and allows you to properly manage your cash flow.