Business Funding

Five tips that will help when searching for fast small businesses loans online

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When you're a small business, you have to get help wherever you can. Getting capital from a bank isn't simple, especially if your company is under two years old or if your loan is considered to be too small. The good news is that traditional bank loans aren't the only option anymore. Although online lending is relatively new, it's becoming increasingly popular for small business owners who are looking for business funding or working capital.

Read on for five tips that will help you while applying for funding online.

Trying to get a small business loan from my bank is a nightmare. Are there any non-bank business loan alternatives?

1. Do your due diligence

The future of your company could rest in your lender's hands. And always remember, one bad loan can take down a business. Therefore, it's important to complete thorough research before choosing which lender to go with. Read reviews from other borrowers about their terms and conditions, their level of service, and their interest rates. Look for lenders who offer their loan terms up front, have clear security disclosures on their web pages, and have a physical address.

That said, it is absolutely imperative to know that most online small business loan companies are NOT finance companies; they are call centers ran by salespeople with zero knowledge, background, or experience in business, or finance. Think about that for a second.... No education. No experience. No certification. No schooling. No classes. No tests. No courses. No No nothing. Why is this allowed to happen? Because there is NO regulation, or oversight within small business finance. That means that most small business owners who are searching for online business loans are taking business and finance advice from sales teams that literally know nothing about business, or finance. As ridiculous as that may sound, it's very real, and very true. Hence, why literally thousands of small business owners are getting burned when shopping for fast small business loans online. Don't be one of them!

2. Pay attention to security

After ensuring the lender is reputable, next check that you only input sensitive information when you have a secure website connection (look out for site addresses which begin 'https' and display the green padlock symbol). Lastly, stay away from lenders who want application fees or down payments. These are usually scams since most lenders will actually add these costs to your repayment plan.

How to Avoid Small Business Loan Scams

3. Get your books in order

While online lending is generally more flexible, which is good for your small business, it doesn't mean lenders will approve all loan applications. Just like a traditional bank, they're going to require proof of your identity, bank statements, as well as all the necessary business documentation. If you're concerned about keeping all your documentation organized, consider using online accounting software to make the process smoother.

For example, merchant cash advances generally have the highest APRs and repayment is usually daily or weekly. On the other hand, online loan terms have higher APRs than traditional bank financing but significantly lower rates than merchant cash advances. The repayment terms for this option usually vary from weekly to monthly too. Just keep in mind, attaining small business capital loans is all about criteria, and each business funding product has a different set of underwriting guidelines.

Another important feature to consider is whether you can prepay without penalty. A strategic funding source like LVRG actually offers pre-pay discounts, while many online lenders charge pre-payment penalties.

4. Inquire about additional services

When you're applying for funding online, it's worth checking whether your chosen lender offers any additional services that could benefit you during the application process, as well as in the long-term if your application is approved. These services could include technical advice (offered for free), as well as help with growth plans and any future financing needs. Click here to contact us about a free small business cash flow analysis.

5. Unsolicited services and contact

If you are getting non stop telemarketing calls saying you are pre-qualified for fast small business loans and merchant cash advances, it's always a sign of a predatory lender. And yes, you should hang up the phone immediately. In fact, there are now thousands of online business loan lenders who buy lists and sit in call centers blasting business owners with calls. If a “lender” offers you a loan unsolicited, it's typically a sign of a scam. Real small business loan lenders don’t offer loans with a cold call, it's simply not ethical practice.

Securing your small business financing online is easier and safer than ever before (when you're dealing with a long standing, reputable finance company like LVRG). There are plenty of things that can stop your company in its tracks, but don't let capital be one of them! Contact LVRG today to find out more about our online application process.

 

What is a bank statement small business loan?

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A bank statement business loan (revenue based loan) is a loan that is based among other things on the past 3-12 months of bank statements showing that the average monthly deposits, withdrawals/expenses and average balances will support the loan payments.

Small Business ACH Loans. What Are They and How Can They Benefit My Business?

A bank statement small business loan could be your business's lifeblood and provide it with several financial benefits. When your business is growing, you may need a quick injection of cash to continue its growth. Bank loans are often times too restrictive, not to mention near impossible to get these days. In this situation, a revenue based loan may be the best solution for your business goals. If you use it wisely, a revenue based loan could do wonders for your business. As they say, “cash is king,” and without being capitalized, chances are you will wind up in a growth stalemate. Here are three ways that revenue based loan can save your business.

It helps to grow your business

If your business is under 2 years old and starting to scale, you obviously want to ride the wave. You cannot do this without a dependable source of capital. Bank criteria is typically a minimum of 2 years in business, however a revenue based lender will fund newer businesses. This type of loan will give you a shortcut to cash since it only requires a few months of business bank statements, whereas banks require two years tax returns and countless other documents. This is especially advantageous if you have cash flow issues, or strong cash flow coupled with high expenses. Many times, your bank statements are enough to demonstrate to a revenue based lender that you can repay your loan.

6 Ways Small Business Owners Can Finance Growth

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Get cash quickly

You're busy running a business and you don't have to time to chase after loan sources. All you know is that you need cash quickly and even if you could get approved for a bank loan, is it really worth all the trouble? A revenue based loan will provide cash quickly with a very short turnaround time. If you are prepared to apply for a revenue based loan and have the appropriate supporting documents ready to go, you may be able to get funding in a matter of days. Compare that to a bank loan where the shortest turnaround time is 2 weeks, but typically 4-8 weeks. This is one of the main advantages of a revenue based loan. Some businesses actually consider this a lifesaver, and will go this route over a bank loan any day.

What options do you have for funding when a bank denies your business loan?

You won't have lingering debt

A revenue based loan will not weigh you down with long-term debt. When you obtain this type of loan, you will not be looking at 5 to 10 years to repay a loan for money that you're using today. Think about it, why would you want to headache of paying off a 2015 marketing campaign in 2025? Not to mention, having this type of long-term loan could hurt your chances for getting funding in the future. With the revenue based loan, you will pay it off in roughly 6-12 months, which makes more sense for short-term expenses that you just need to grow your business and boost revenues. One more thing to point out, going the bank route you also have to be aware of is the up-front fees’ such as ones from SBA carriers, referral fees, packaging, guarantee fees, and sometimes closing costs. Also, banks will take first position on your UCC filing, require a personal guarantee and many times insist you put up your home as collateral.

Revenue Based Financing, Cash Flow Loans & Working Capital Solutions to Boost Your Business... Your Way!

As you see, the preceding three steps show you how a revenue based loan could be advantageous for your business. It helps you grow your business quickly and it does not saddle you down with long-term debt. It gives you the cash that you need quickly, to grow your business your way. What more could a growing business need? The only thing that you have to be conscious of is ensuring that your return on investment will allow you to repay your revenue based loan. Once you have that in mind, the revenue based loan may very well be your best solution for solving your businesses cash flow problems. This could be a lifesaver for your business.

For more information on bank statement small business loans, or other types of revenue based business funding options, call (855) 998-LVRG or click below to get started.

 

Small Business ACH Loans. What Are They and How Can They Benefit My Business?

What is an ACH Small Business Loan and How Can it BOOST My Business?

For starters, an ACH small business loan can also be referred to as a small business cash flow loan, small business revenue based loan or a small business merchant cash advance. The ACH designation really applies to how the lender is paid. ACH or Automated Clearing House, refers to the lenders ability to withdraw an agreed upon amount directly from your checking account at agreed upon intervals, typically daily or weekly. This is different from factoring your accounts receivable (A/R), because instead of billing your customers and collecting from them, they directly access your checking account in much the same way automated payments might go to you mortgage lender or a utility company from your personal checking account.

An ACH small business loan, much like factoring or an MCA loan, should be considered a small business short-term financing option. The cost of the capital is more expensive, in other words you’ll pay a higher interest rate, but you’ll be able to access that capital much quicker than a traditional term loan from the bank or other financial institution.

Because a small business ACH loan lender will be able to pull your payment directly from your checking account, it reduces risk to the lender making it possible for small business owners with a healthy checking account but less-than-perfect credit to get a loan.

The Automated Clearing House (ACH) is a network for processing electronic credit and debit transactions in the United States. An ACH debit transfer occurs when you explicitly allow a third party (a vendor, merchant, or a lender) to have direct access to your business checking account to withdraw funds agreed upon by you. Roughly 90 percent of all electronic payments are handled through the ACH network, and include direct payroll deposits as well as electronic payments.

Many small business loan lenders prefer to accept your business loan payments through an ACH transfer directly. If your mortgage, or an automobile payment, is pulled directly from your checking account every month, an ACH or electronic small business loan payment works much the same way.

For example, most small business revenue based loans, business cash flow loans and online small business lines of credit come with either a fixed daily (every business day) or weekly ACH payment. Repayment for a small business line of credit is automatically deducted on a weekly basis. While some lenders still accept payment by check, electronic payments have become increasingly common, particularly with online lenders.

Electronic Payments are Good for the Lender and Good for the Borrower

A daily or weekly ACH debit makes sense for lenders because it reduces the costs associated with processing a loan payment, ensures that payments are made in a timely fashion, and makes it possible for the lender to identify potential repayment issues within a couple of days, rather than several weeks—giving them enough time to try to help borrowers get back on sound financial footing and meet their commitments.

  • ACH payments save the business owner money - roughly $1.22 per check

  • It is convenient for the borrower who doesn’t need to take the time to write a check (particularly if the ACH debits are scheduled and automatic)

  • The regular and timely payments help build and maintain a strong business credit profile

Daily or weekly debits, as opposed to a monthly debit, reduces the size of each periodic payment making it easier for many borrowers to smooth their cash flow and avoid contributing to “lumpiness” in having large expenses due at the end of the month. This type of electronic direct debit makes capital available to some borrowers who might not qualify within a more traditional payment model.

Making ACH Business Loan Payments Work for Your Business

Millions of ACH transactions happen every day, but that doesn’t mean much if you can’t make it work for your business. With that in mind, here are 3 things that will help you do just that:

#1. Make sure you have the right kind of cash flow to accommodate the periodic payment frequency. If most of your monthly revenue is attributed to a handful of customers that make payments at the end of every month, a daily or weekly ACH pull from your business checking account might not work and may disqualify you from some loan types. This is one reason most online lenders want to see the last three or four months of bank statements. They want to make sure your cash flow will support the debit frequency (daily or weekly).

#2. Make sure you understand the amount that will be pulled with every periodic payment: A fixed payment will likely be easier to budget for. You’ll also want to determine if payments are only made on weekdays or if they will also take place on the weekends. The more you understand about the process upfront, the better you will be able to budget and prepare for each periodic payment.

#3. Make sure you understand what happens if you don’t have sufficient funds in your account: Nobody wants this to happen, but if it does, what does that mean for your loan? Making sure there is always enough in the account to make the automatic payment needs to be a priority, but sometimes circumstances might leave a business owner short. Most of the time, you’ll know before the payment is due. If that’s the case, reach out to the lender before the payment is attempted to try to make other arrangements.

Making payments electronically is an innovation designed to make small business loan payments seamless and easy for both the borrower and the lender. Ready to see if an ACH small business loan makes sense for your business? Call (855) 998-5874 or click below.

 

ATTENTION SMALL BUSINESS OWNERS: Multiple Funds Must Be Deployed By Years End. This Is It, Final Push of 2016!

Funding Offers Often 5X Other Lenders, No Credit Restrictions, Lower Rates, Longer Terms & Faster Funding. $15,000 to $2,000,000 in 24 Hours. 

NO NONSENSE, NO FLUFF, NO TIME TO WASTE... FINISH THE YEAR STRONG!

  • Small Business Loans - Get up to $2 Million to grow your business in as little as 24 hours. From purchasing inventory and equipment to remodeling and advertising, small businesses need capital for many reasons. Our small business loans may be used for any business expense, even if you just need an influx of capital to boost your cash flow. We offer both fixed and flexible repayment options, customizing your funding to meet your business's cash flow model. CLICK TO LEARN MORE

  • Revenue Based Financing - Instead of a business being required to pay fixed interest payments like a typical bank loan, a revenue based loan is paid with a percentage of revenues. With loan amounts up to $2 Million dollars and funding in as little as 24 hours, it helps you grow your business and it does not saddle you down with long-term, highly encumbering debt. CLICK TO LEARN MORE

  • Cash Flow Loans - Type of debt financing, generally for working capital, using the expected cash flows that a borrowing company generates as collateral for the loan. You’re essentially borrowing from cash that you expect to receive in the future by giving the lender the rights to a predetermined amount of these receivables. Get up to $2 Million in as little as 24 hours, regardless of credit! CLICK TO LEARN MORE

  • Working Capital Loans - At any stage of growth, fast, flexible funding is essential to the continued success of your small business. Our working capital loans feature 6 to 17 month terms and fixed payment options to accommodate your specific needs, so you can focus on what you do best, running and building your small business. CLICK TO GET STARTED

  • Business Expansion Loans - Designed for prime businesses with better risk profiles, our business expansion loan is an extended-term loan with rates ranging from 9.99% - 36%, terms of 18 to 24 months, multiple payment options, and loan sizes up to $250,000. It’s large-scale growth capital if you're looking to invest in bigger projects, with the same speed and simplicity LVRG is known for.

  • Business Cash Advance - If your business needs cash quickly and has a readily ascertainable history of credit card receipts, or a constant flow of cash deposits, a business cash advance may provide the funding you require. A business cash advance can provide small business owners with an upfront fixed amount of cash in as little as 24 hours. Business cash advance is a great option for small business owners who may not have strong credit but have lots of credit card activity, or cash deposits and need financing quickly. CLICK TO GET STARTED

MULTIPLE FUNDS MUST BE DEPLOYED AND OFF THE BOOKS BY THE END OF THE YEAR. WE HAVE TO GET THIS CAPITAL OUT ASAP. FINAL PUSH OF 2016.
THE TIME IS NOW!

3 Ways to Obtain Fast Small Business Cash with Poor Credit

Owners of small and medium-sized businesses often face a common challenge; they need capital to grow and strengthen their businesses, but poor credit may be holding them back. Forget trying to get a loan or line of credit from a “traditional” financial institution, or bank. It's hard enough to obtain a bank loan with perfect credit these days, so a poor credit history will pretty much guarantee a rejection for bank financing. 

But that’s why poor credit small business loans and bad credit business cash advances from LVRG Funding have become great options for small businesses in every sector throughout the U.S. We get it; running a business isn't easy, and maybe your credit took a hit as a result. But that doesn't mean that you shouldn't be able to take advantage of growth opportunities as they arise. Poor credit or not, we've got you covered!

Businesses need capital to grow, plain and simple. Our poor credit small business loans, business cash advances and revenue based financing options were developed with small businesses in mind, even those whose owners have poor credit.

A poor credit small business loan or business cash advance is extended to a small business owner with little or poor credit. If you have a bad credit history, it’s not impossible for you to get a small business loan to grow your business, just don't expect it from your bank. 

First and foremost, when seeking a poor credit business loan or business cash advance, you have to be realistic and expect to pay a high interest rate. Reality is, if you have no collateral to put up, have poor credit and need fast small business cash, the cost of capital is higher to mitigate the risk. Need a business cash advance to boost sales by the end of the year? Well, the good news is...you have some options thanks to LVRG.

#1. Poor Credit Business Cash Advance - Poor credit business cash advances are offered to small business owners with poor credit, or those who have credit issues, bankruptcies, judgments, etc. There are only a few small business lenders that are willing to fund high risk merchants, and LVRG leads the way. Poor credit business cash advances are available to businesses that have been classified as high risk, and are therefore unable to obtain bank loans or any other form of financing from traditional lending institutions.

A poor credit business cash advance can provide small business owners with poor credit an upfront fixed amount of cash, up to $1,000,000 in as little as 24 hours. The funding amount is based upon a percentage of the businesses credit card receivables or daily cash balances using historical credit card receipts and bank statements to determine the initial advance. The business pays back the advance, plus a percentage, often referred to as a discount factor or hold-back, from a portion of their credit card receivables or cash receipts. The remittances are drawn from the small business owner on a daily, or weekly basis, until the obligation has been met. This is a highly streamlined and simple solutions, to get cash in the door quickly. 

#2. Small Business Revenue Based Loan - A small business revenue based loan could be your businesses lifeblood and provide it with several financial benefits. When your business is growing, chances are you'll need an injection of cash to continue its growth. Bank loans are often times too restrictive and near impossible to obtain these days anyway. In this situation, a revenue based loan may be the best solution, especially if you are in a high risk industry, have minimal time in business, lack collateral or have credit challenges. If you use it wisely, a revenue based loan could do wonders for your small business. Without being capitalized, chances are you will wind up in a growth stalemate and a revenue based small business loan may be a perfect option for you. 

If your business is under 2 years old and starting to scale, you obviously want to ride the wave. You cannot do this without a dependable source of capital. Bank criteria is typically a minimum of 2 years in business, strong cash flow, positive ratios and perfect credit. However, revenue based loans are offered based off revenue and cash flow, not credit or collateral. Many times, your bank statements are enough to demonstrate that you can repay your loan.

A revenue based loan could be highly advantageous for your business, and quite simple to obtain no matter what your credit score, collateral or time in business. It helps you grow your business quickly and it does not saddle you down with long-term, highly encumbering debt. It gives you the cash that you need quickly, to grow your business your way. What more could a growing business need?

#3. Poor Credit Small Business Cash Flow Loan - Even if your small business is growing, you may find yourself needing extra cash to cover day-to-day expenses such as payroll, rent and inventory, or to pay for short-term projects that could grow your revenue in the long run. Uneven cash flow is one of the biggest challenges of small businesses throughout all industries. For this type of business financing, lenders provide you funds and use your future expected cash flow as collateral for the loan. You’re essentially borrowing from cash that you expect to receive in the future by giving the lender the rights to a predetermined amount of these receivables. These are primarily used for working capital or take advantage of short-term ROI opportunities. As the name indicates, the lender is more concerned with inspecting your cash flow (usually bank statements) to approve your application. Turnaround time is another great feature of a cash flow loan, as funding usually takes place in as little as 1 day in some cases.

One of the greatest benefits of a poor credit small business loans, revenue based small business loans, or a bad credit business cash advance, is that the funds can be used for a host of business expenses. There are typically no restrictions on how you choose to use your capital, however some of the more typical uses include:

  • Buying Equipment – Could a new computer, desk, telephone, cash register, POS system or software come in handy? Money to pay for the purchase of necessary business equipment could help boost your profits.
  • Paying Employees – Instead of running your business like a one-man show, a few extra hands could really help. Spending borrowed money on employee’s salaries can be the answer rather than disrupting your cash flow to cover this expense.
  • Purchasing Inventory – One of the most common uses for high risk small business funding is buying inventory. It takes products in stock to make business profitable, so it only makes sense to invest in enough inventory to make sure you always have enough to sell to customers.
  • Expanding the Business – If your business is experiencing some success, you might want to start thinking about taking things to the next level. A lump sum of immediate cash might be just what you need to get business booming.

So there you have it, 3 quick, efficient and “obtainable” ways to access capital for your small business, even with bad credit, minimal time in business or being in a high risk industry. Poor credit small business loans, revenue based small business loans, or bad credit business cash advances have helped thousands of small businesses just like yours not only turn the corner, but pull ahead in the race. Call us today, our expert funding advisors are ready to learn about your small business financing needs, while doing so with speed and transparency. We're here to help!