Quick Business Capital
And Non-Traditional Lending Alternatives
For Small Businesses
There are many instances when a small business can’t wait for a traditional bank loan approval nor consideration. This is because even when qualifying with decent financials, traditional lenders will also look at the owner’s personal net worth and credit, and as well, require collateral in order to grant loan requests.
If your business needs fast working capital, short term capital solutions, or other specialty types of funding, the sources below are available for consideration. While it is sometimes preferable to have bank lending, it is not always realistic for many small businesses.
We work with lenders who share our common goal and provide streamlined funding solutions in an effort to ensure that your business has the resources and support it requires to succeed. Some lenders require businesses to be up and running for as little as 3 months, others a minimum of 6 months. Many of them can fund in as little as 1 business day, but on average within 3 to 5 business days. Terms of these financing products are normally from 3 to 12 months.
All of the lenders will still require the business to submit supporting documentation with new applications. However, the application process by design is quick, transparent, flexible and easy. Some lenders do NOT require credit checks or have minimum FICO score requirements; they also understand poor credit histories or histories of financial hardships. Most will not require hard assets, i.e., commercial real estate collateral. Some of the lender programs are designed to provide support to your business in order to help the business get back on track, and then move to better financial product mixes.
Below we’ve listed innovative ways to deliver working capital to small businesses. Integrity Commercial Capital is here and available to assist you should your business require fast business funding:
(ACH) Automatic Clearing House Advance
This is short term business financing and is considered a ‘cash flow’ loan where Lender advances are made to a business based on the average daily balance of a business's checking account. Repayment will be made by the cash advance funding company receiving payment of a fixed ACH deduction amount directly from the business bank account, daily or weekly. One of the other major positive differences between an ACH advance and a MCA advance (referenced below) is that a business can have multiple ACH advances at one time.
(MCA) Merchant Cash Advance
This is also a form of short term business financing. The loan is very similar to an ACH loan (referenced above). Lender makes a quick small business loan approval and funding, using a business's regular and predictable monthly volume of credit card transactions usually exceeding $10,000. However, a company can usually only get one advance at a particular time, because only one lender will be able to remit payments directly from the business's credit card processors.
Usually, the company is required to have been in business at least six months. Once approved, funds can be deposited into the businesses checking account in 3 days or less.
Invoice Factoring
Invoice Factoring, while similar to Asset Based Lending, is selling your business's outstanding invoices to a third-party factoring company in exchange for immediate cash. Usually the business will receive 90% or more of the invoices and doesn’t have to wait two or three months for its customer to repay them what is owed. The factoring company collects payments from the customer and pays the business the balance owed, less a financing fee. In light of this, a business's customer whose invoices are purchased, will have interaction with whatever factoring company who is providing its funding. However, this is a fast way to get capital quickly and collateral is not required.
If your business has a lot of money tied up in accounts receivables, consider getting the cash you need through invoice factoring.
Short Term Business Loan
This type of business loan is usually smaller and provides a business funding to fulfill its short-term lending gap. The loan provides upfront working capital that is repaid within 18 months or less. It is not uncommon for short term loan repayment periods to be 3 months or less.
The loans are usually unsecured and easier to qualify for than when applying at a traditional Bank. It is common for a bank to require a business to be in operation for at minimum of two years plus, and have annual revenue of $500,000. In addition, the bank will require a personal credit score of 675 – 700. A traditional bank Small Business short term loan can take from several weeks to 6 months for approval. However qualifying for these small business loans offered through non-traditional lenders requires a business history of at least one year, and an annual revenue of at least $75,000, and a credit score of 575, and are faster to fund.
The loan can be used to fulfill large purchase orders, fund renovations, emergency expenses, and seasonal business needs.
SBA – Micro Loans
These are business loans between $5,000 and $50,000 which can be used for office and business supplies, furniture/fixtures, equipment/machinery, working capital and inventory.
Business Credit Cards
If your business requires further information regarding acquiring business cards that are only in your business name, and not connected with your personal credit, please reach out to us so that we can assist you.
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In conclusion, we at Integrity Commercial Capital (ICC) are here to assist you whatever your business capital needs or circumstances. Do not fail to contact us if more information is required to apply for or understand these quick business financing types of products.
OTHER TYPES OF ALTERNATIVE BUSINESS LOANS
Selling Business Equity
A business can raise needed cash by selling an equity stake in their company to a venture capitalist or an angel investor. This does usually require giving up some percentage of ownership in your company and the company avoids taking on long term debt. Usually, the investor buying in to the company will usually bring good business expertise pertaining to financial, administrative, product and/or marketing knowledge. Another positive note, if the business is not successful, there will usually be nothing to repay if the business doesn’t succeed.
Friends and Family Loans
While borrowing from friends and family might be an available resource for your business there are many pros and cons. One of the most important considerations: doing so must strike a delicate balance, so that the once close relationship with your friend or family member does not become strained because business profit expectations are prolonged, or unmet.
