Applying for a small business loan is a significant financial decision. we’ve already helped thousands of companies to prosper. We can approve up to $500,000 within 24 hours. Apply now, no obligations, no fees and no impact on your credit score.
What is a small business loan?
The term ‘small business loans’ describes a financial product that a business loan lender provides to entrepreneurs to cover the costs of running the business. Like other types of credit, borrowing a small business loan creates a debt, which you’ll need to repay with added interest.
mCashAdvance offers an alternative, called a merchant cash advance which doesn’t generate any business debt.
Business loan requirements
We believe small business owners should spend their time helping their businesses succeed rather than seeking financing. So we’ve made a quick guide listing the most basic small business lending requirements to help you decide whether you qualify for a small business loan.
Time in business
The threshold that you should keep in mind is two years
Personal Credit Score
A credit score of at least 600 will open up more business financing options to you
Business credit score
Many lenders use the FICO SBSS score to evaluate your loan application
Annual business revenue and profit
Lenders will ask you to provide your profit and loss statements as part of your application
Most lenders will require a statement describing how you plan to use the loan. Make sure that the amount you request matches the loan purpose
Some lenders may ask for a fixed asset like property or equipment for you to put up as a security for the lender
Remember: Small business loan requirements will always vary from lender to lender, but the more boxes you tick, the easier it will be to qualify for a business loan.
How do business loans work?
Once you get approved for a small business loan, you’ll receive an agreed-upon sum of money all at once that you’ll pay off with interest, over time. Small business funding can range from $5,000 to $500,000, with repayment term lengths up to 18 months.
Making these monthly repayments with added interest can put a strain on small businesses’ cash flow. Therefore, you may want to consider an alternative like Merchant Cash Advances, where you only repay a percentage of your sales. So on a day when you make fewer sales, your repayment will be smaller, too. This credit option can help your business stay afloat without constantly worrying about how you will make your loan repayment this month if you don’t do enough business.
|Small Business Loans||mCashAdvance’s Cash Advances|
|Repayment terms||1-5 years||Repay a % of your sales until the advance is paid off.|
|Interest rates||7% – 100%||We don’t have any, because cash advances aren’t loans!|
|Early repayment fees||It depends on your lender||No, you can always repay early and save on interest.|
|Bad credit accepted||No||Yes|
|Same day funding||No||Yes|
How to get a business loan
Getting business funding in the past, especially for small businesses, was an exhausting and time consuming process. At best, you hoped that the bank would approve your application in the end. But today, things are different! We want to make getting small business funding as easy as pie. Here is your business loan application cheat sheet to boost your chances of success;
Sit down and calculate how much money your business needs.
Research different types of small business financing and decide which financing options fit your business requirements best.
Check your personal and business credit history. You can get this from any CRA.
Make sure you have all the documents that you may need handy, like balance sheets and end-of-year tax reports.
Compare business lenders to get the best deal.
Apply for a small business loan with your chosen lender – Look for an application form with bank-grade encryption and SSL technology, so you know your information is safe.
Get notification of whether you have been approved or declined – Once you have been approved you may be asked further information about your application. You should receive a lending decision shortly thereafter.
Get funded – Once you have been approved, most lenders will transfer the money to your business bank account in as little as 24 hours.
We say YES when traditional lenders say NO
Does your business need that extra boost to help it grow into a profitable enterprise? You’ve come to the right place! With our small business loan alternative, you can push your operations to the next level, and we guarantee that you’ll never go into debt.
Small businesses in the US borrow over $600 billion each year to help build and grow their enterprises. What used to be a long frustrating process is now seamless when borrowing a merchant cash advance with mCashAdvance.
Small business loan FAQ’S
What is considered a small business?
A small business is generally defined as a business with a maximum of 500 employees. But this will depend a lot on your industry.
What are small business loans for women?
Business loans for women are designed to help female entrepreneurs build up their enterprises as women are generally underrepresented in the business world. This type of business funding is offered on both a secured and unsecured basis.
What are the best small business loan rates available?
Loans from traditional lenders, such as banks or credit unions, can have annual percentage rates (APRs) ranging from 4% to 13%, while alternative business loan lenders can have APRs ranging from 7% to over 100%. The rates you are charged will depend a lot on your whether you have a good or bad credit score, length of time in business, and the amount you want to borrow.
Can I get fast business loans?
If you need quick business loans because of stalled cash flow in your business or to meet sudden demand, there are lenders who will provide emergency business loans. This usually means a faster lending decision and sometimes same day payout of your funds.
Note: Instant business loans don’t exist.
Can I get a business loan for veterans?
With over 10% of businesses in the US-owned by veterans, small business loans for veterans are essential in helping the economy grow. Whether you need to relocate to bigger premises, recruit more staff, or ease the cash flow, veteran business funding can help. There are many financing options available for veteran business owners, including; VA business loans, Small Business Administration loans (also known as sba loans), and traditional business financing. At AYF, we support veteran business owners with our high acceptance MCA’s. All you need to do is fill out our seamless application form, and the money can be in your account the same day.
How do I know what type of business loan I should go for?
There are seven main types of business funding; SBA loans, a business line of credit, invoice factoring or financing, business term loans, a working capital loan, equipment financing, or a merchant cash advance. Look into each of these loans to see which type of business funding best meets your needs.
What is the difference between secured vs. unsecured business loans
The difference between a secured and unsecured business loan comes down to one thing: Collateral. When you take out a secured business loan or secured personal loans, the lender is backed by collateral, whereas unsecured business loans requires no personal guarantee. No collateral business loans are designed to help entrepreneurs get quick access to business funding without risking their business assets / personal assets as collateral. Unsecured business finance is a great way to free up credit cards and cash flow in a business.
What are the benefits of a short term business loan?
However healthy your business finances may be, when you’re growing or expanding your enterprise you might need to spend money that you don’t yet have. Whether this means expanding to new premises, upgrading your equipment, or hiring more staff, short term business funding could be just what you need to bridge that gap and set yourself on the road to success. If you want to maximize your sales in peak season, and you know that the revenue will follow, taking out a short term small business loan or a working capital loan can help you maximize your opportunities.
What are the benefits of an online business loan?
Compared to traditional bank loans, the main benefit of getting a small business loan online is the speed of processing your application and receiving funds in your business bank account. This type of funding can enable small business owners to manage their businesses’ financial needs quickly and efficiently.
Can I still get small business loans during Coronavirus (COVID-19)?
You may find it challenging to get small business loans as the coronavirus pandemic continues to make waves across the United States. However, mCashAdvance is continuing to offer small business loans, even to those businesses affected by Covid-19. You can apply today and if approved, get the funds within 24 hours.
YOUR business is OUR business
Small business financing that you can trust!
The most significant advantage of cash advance terms over business loan terms is that the repayments fluctuate according to your income. This means that your repayments are always in proportion to your monthly sales. Meanwhile, business loan repayments are fixed and rigid. If business is slow for one month, you’ll still need to make the fixed repayment, regardless of your income.
Not sure which product is more affordable? You can use a small business loans calculator to help you work out the difference in monthly small business loan repayments versus cash advance repayments. If you decide an MCA is the best financial product to help your business thrive, our dedicated team is always at your service.
Don’t Allow a Lack of Funding
to Hold your Business Back
It’s Time To Move Your Business Forward!