Michigan Working Capital Loans: Fast Approval Guide for Small Businesses 2026

Table of Contents

1. Introduction: Why Michigan Businesses Need Working Capital

2. What is Working Capital and Why Does It Matter?

3. LVRG Express Working Capital Loans: $10K-$350K in 15-20 Days

4. Traditional Working Capital Loans: $50K-$5M

5. How to Qualify for Working Capital Loans in Michigan

6. The Application Process: Step-by-Step

7. Working Capital vs. Other Financing Options

8. Industry-Specific Working Capital Strategies

9. Common Working Capital Mistakes to Avoid

10. Working Capital Success Stories: Michigan Businesses

11. How to Calculate Your Working Capital Needs

12. Frequently Asked Questions

13. Apply for Working Capital Today

Introduction: Why Michigan Businesses Need Working Capital

Cash flow is the lifeblood of any business. You can have a full order book, loyal customers, and a great product—but without working capital, you can't pay suppliers, cover payroll, or seize growth opportunities.

Michigan businesses face unique cash flow challenges:

Manufacturing & Automotive Suppliers: 60-90 day payment terms from OEMs create massive cash flow gaps. You purchase raw materials and pay labor today, but don't get paid for 3 months. Working capital bridges this gap.

Construction Contractors: Material costs upfront, progress payments delayed, seasonal slowdowns in winter. Cash flow management is critical to survival and growth.

Restaurants & Hospitality: Seasonal fluctuations (tourist areas), inventory purchases, equipment repairs, slow winter months. Working capital smooths revenue volatility.

Retailers: Seasonal inventory purchases (Christmas, back-to-school), vendor payment terms, expansion opportunities. Working capital enables you to stock up without draining reserves.

Healthcare Practices: Insurance reimbursement delays (30-90 days), equipment purchases, expansion, new provider hiring. Working capital bridges the gap between providing care and getting paid.

The Cost of Being Undercapitalized

Lost Opportunities:

• Can't bid on large contracts (no proof of working capital)

• Miss bulk purchasing discounts (can't pay upfront)

• Lose customers to better-capitalized competitors

• Can't invest in marketing when ROI is clearest

Operational Stress:

• Juggling which bills to pay

• Vendor relationships strained (late payments)

• Can't hire needed staff

• Owner can't take salary

Growth Limitations:

• Can't expand when market conditions favor it

• Competitor captures your customers

• Miss acquisition opportunities

• Stuck in survival mode vs. growth mode

The Solution: Strategic working capital financing that keeps your business liquid, flexible, and ready for anything.

As Michigan's Business Loan Authority, LVRG has helped thousands of Michigan businesses solve cash flow challenges with working capital financing from $10,000 to $5,000,000. This guide shows you exactly how to access the working capital your business needs—fast.

What is Working Capital and Why Does It Matter?

Working Capital Definition

Working capital is the difference between your current assets (cash, accounts receivable, inventory) and current liabilities (accounts payable, short-term debt).

Formula: Working Capital = Current Assets - Current Liabilities

Example:

• Current Assets: $500,000 (cash $100K, A/R $300K, inventory $100K)

• Current Liabilities: $300,000 (A/P $200K, short-term debt $100K)

• Working Capital: $200,000

Why Working Capital Matters

1. Operational Flexibility With adequate working capital, you can:

• Pay bills on time (maintain vendor relationships)

• Take advantage of early payment discounts

• Purchase inventory when prices are favorable

• Cover payroll during slow periods

• Handle unexpected expenses without crisis

2. Growth Capability Working capital enables:

• Accepting larger orders

• Expanding to new locations

• Investing in marketing/sales

• Hiring key personnel ahead of revenue

• Purchasing equipment for capacity

3. Financial Health Signal Lenders, suppliers, and partners view working capital as a health metric:

• Positive working capital = healthy, stable business

• Negative working capital = potential distress

• Strong working capital = better credit terms from vendors

Working Capital Financing vs. Working Capital

Important Distinction:

Working Capital (the metric) = Your business's liquidity position

Working Capital Financing = Loans/funding to increase your working capital

When we talk about "working capital loans," we mean financing that increases your available cash to cover operational expenses, inventory, payroll, and growth initiatives.

Types of Working Capital Needs

1. Seasonal Working Capital

• Retailers building inventory before holidays

• Construction companies preparing for spring

• Tourism businesses preparing for summer

• Agricultural businesses during planting/harvest

2. Cyclical Working Capital

• Manufacturing responding to industry cycles

• Real estate dependent on market conditions

• Economic expansion/contraction impacts

3. Permanent Working Capital

• Base level needed year-round

• Covers minimum operational requirements

• Grows as business grows

4. Growth Working Capital

• Needed during expansion phases

• Hiring ahead of revenue

• New location launch costs

• Marketing investment before ROI

Michigan Context: Michigan businesses often need working capital for:

• Automotive supplier payment term gaps (60-90 days standard)

• Winter seasonal slowdowns (construction, tourism, retail)

• Manufacturing capacity expansion

• Equipment downtime/repairs

• Opportunity purchases (distressed inventory, competitor assets)

LVRG Express Working Capital Loans: $10K-$350K in 15-20 Days

LVRG Business Funding's Express Working Capital Loan Program is specifically designed for established small businesses that need fast access to capital without the lengthy bank loan process.

Program Overview

Loan Amounts: $10,000 to $350,000

Funding Speed: 15-20 business days average (fastest Michigan businesses can access institutional capital)

Repayment Terms: Up to 10 years available

Interest Rates: Competitive variable pricing based on creditworthiness

Collateral: Minimal collateral requirements (no personal collateral for qualifying businesses)

Credit Pull: No hard personal credit pull during application (protects your credit score)

Prepayment: No prepayment penalties (pay off early, save interest)

Who This Program Serves

Ideal for:

• Small businesses needing $10K-$350K

• Established companies (2+ years operating history)

• Business owners with 650+ credit score

• Companies needing fast funding (15-20 days)

• Businesses with proven cash flow

• Companies wanting flexible use of funds

Business Types: The Express program serves virtually all industries except those explicitly restricted (contact LVRG for industry-specific guidance). Common Michigan industries include:

• Professional Services (accounting, law, consulting)

• Healthcare (dental, veterinary, medical practices)

• Restaurants & Food Service

• Automotive Services

• Construction & Trades

• Technology & IT Services

• Retail & E-commerce

• Manufacturing (small to mid-size)

• Transportation & Logistics

• And many more

Qualification Requirements

Minimum Requirements:

Time in Business: 2+ years operating history required

• Shows business viability and stability

• Certain franchise concepts may have modified requirements

• Startups not eligible for Express program (see alternative options)

Personal Credit Score: Minimum FICO 650

• Score pulled from major bureaus (Experian, Equifax, TransUnion)

• Average of scores typically used

• Recent bankruptcies disqualify (7-year lookback)

Business Credit Score: Minimum SBSS 165

• Business credit score (not same as personal)

• Measures business payment history, trade lines

• Lower than personal credit acceptable

Debt Service Coverage: 1.25x minimum

• Formula: Net Operating Income ÷ Total Annual Debt Payments

• Must show 25% cushion to service new debt

• Conservative cash flow analysis

Current on Obligations: All debt current

• No late payments on business or personal debt

• Active collections or liens may disqualify

• Payment plans on old debt may be acceptable

Cash Flow: Demonstrated repayment capacity

• Based on bank statements and tax returns

• Lenders look at consistent deposits

• Seasonal businesses evaluated accordingly

What You Can Use Express Working Capital Loans For

Approved Uses (anything except commercial real estate):

Equipment Purchases: $10K-$350K

• Manufacturing equipment

• Restaurant kitchen equipment

• Medical/dental equipment

• Construction equipment (under $350K)

• Technology/computers

• Vehicles for business use

Working Capital & Cash Flow:

• Cover payroll during slow periods

• Purchase inventory

• Pay suppliers/vendors

• Manage seasonal fluctuations

• Bridge payment term gaps

Business Expansion:

• Open second location

• Add new product lines

• Enter new markets

• Hire key personnel

• Expand capacity

Leasehold Improvements: Up to $350K

• Renovate existing space

• Build-out new location

• Update facilities

• ADA compliance

• Technology infrastructure

Debt Refinancing:

• Consolidate high-interest debt

• Refinance merchant cash advances

• Simplify multiple payments into one

• Reduce monthly payment burden

• Improve cash flow immediately

Business Acquisitions: (restrictions apply)

• Purchase competitor

• Buy out partner

• Acquire assets from closing business

• Roll-up strategy (multiple small acquisitions)

Inventory & Supplies:

• Stock up for peak season

• Take advantage of bulk discounts

• New product launch inventory

• Vendor minimum orders

Marketing & Advertising:

• Digital marketing campaigns

• Website development

• Brand development

• Trade show participation

• Sales team expansion

Technology Upgrades:

• New software/SaaS subscriptions

• Hardware upgrades

• Cybersecurity improvements

• Automation systems

• CRM/ERP implementation

NOT Approved For:

• Commercial real estate purchase (use Commercial Real Estate Financing instead)

• Speculative investments

• Personal use

• Paying off personal debt

Documentation Requirements

LVRG keeps documentation simple and streamlined:

Required Documents:

1. Completed LVRG Application

• Online form at LVRGFunding.com/apply-now

• Takes 5-10 minutes

• No hard credit pull at application stage

2. Business Bank Statements (3 months)

• Most recent 3 consecutive months

• All business accounts

• Shows cash flow patterns and deposits

• Used to verify revenue and cash management

3. Business Tax Returns (3 years)

• Last 3 years filed returns

• Personal returns of 20%+ owners

• Shows profitability and income trends

• Debt schedule reconciliation

4. Current Financial Statements (within 90 days)

• Profit & Loss (P&L) statement

• Balance Sheet

• Can be internally prepared (don't need CPA)

• Shows current business performance

5. Business Debt Schedule

• List of all current business loans/debts

• Payment amounts, balances, lenders

• Used to calculate debt service coverage

• Include leases, lines of credit, credit cards

6. Affiliate Analysis (if applicable)

• Other businesses owned by principals

• Related companies

• Determines if affiliates guarantee debt

That's it. No business plan required. No projections. No excessive documentation. LVRG focuses on actual business performance, not hypotheticals.

Pricing & Terms

Interest Rates: Competitive variable pricing based on:

• Credit score (personal and business)

• Time in business

• Industry

• Debt service coverage ratio

• Loan amount

• Collateral (if any)

Typical Range: 8%-18% depending on risk profile

• Stronger businesses = lower rates

• Higher risk = higher rates

• Rate locked at closing

Loan Terms:

• Short-term: 1-3 years

• Medium-term: 3-5 years

• Long-term: 5-10 years

Monthly Payments:

• Fixed monthly payment amount

• Principal + interest

• Autopay available (recommended)

• No prepayment penalty (pay off early)

Fees:

• Origination fee (1-5% of loan amount typical)

• No hidden fees

• No ongoing maintenance fees

• All fees disclosed upfront before signing

Speed Advantage: 15-20 Days vs. 90+ Days at Banks

LVRG Express Timeline:

• Day 1: Apply online (5-10 minutes)

• Day 2-3: LVRG advisor contact, document request

• Day 7-10: Documents submitted, underwriting begins

• Day 12-15: Credit decision, approval, terms presented

• Day 15-20: Closing, funding wired to your account

Bank Timeline (typical):

• Week 1: Apply, wait for loan officer assignment

• Week 2-3: Initial documentation request

• Week 4-6: Additional documentation requests

• Week 7-9: Underwriting review

• Week 10-12: Committee approval required

• Week 13+: Closing process begins

• 90-120+ days total (if approved)

Why LVRG is Faster:

1. Dedicated underwriters (not juggling 100+ loans)

2. Clear documentation requirements (know what's needed upfront)

3. Decision authority (no committee approval needed)

4. Digital process (no paper shuffling)

5. Experienced team (20+ years, seen every situation)

Express Program Success Stories

Detroit Auto Supplier - $175,000 Challenge: Needed to purchase raw materials for large GM contract. 60-day payment terms from GM created cash flow gap. Bank said 8-12 weeks minimum.

Solution: LVRG Express Working Capital Loan $175,000, funded in 18 days.

Result: Fulfilled GM contract on time, hired 3 additional workers, revenue up 40% that quarter. Repaid loan in 2 years, now maintains revolving relationship with LVRG.

Grand Rapids Restaurant - $85,000 Challenge: Walk-in cooler died during peak summer season. Without replacement, couldn't operate. Bank loan would take months. Considering merchant cash advance (expensive).

Solution: LVRG Express $85,000 funded in 14 days.

Result: New commercial kitchen equipment installed, expanded menu capacity, revenue up 25%. Avoided expensive MCA that would have drained cash flow.

Ann Arbor Medical Practice - $250,000 Challenge: Opportunity to acquire retiring doctor's practice and patient base. Needed funding quickly before another buyer stepped in.

Solution: LVRG Express $250,000 funded in 19 days.

Result: Acquired practice, integrated 600 patients, hired existing staff, increased revenue 60% within 6 months.

Traditional Working Capital Loans: $50K-$5M

For businesses needing larger amounts than the Express program provides, LVRG offers traditional working capital financing from $50,000 to $5,000,000.

Program Overview

Loan Amounts: $50,000 to $5,000,000

Funding Speed: 3-6 weeks typical (depending on complexity and amount)

Repayment Terms: 1-10 years depending on use and amount

Interest Rates: Competitive rates based on risk profile

Structure: Term loans, revenue-based financing, or SBA loans

Traditional Working Capital vs. Express

Choose Traditional Working Capital When:

• You need more than $350,000

• You're willing to wait 3-6 weeks for funding

• You want to explore multiple financing structures

• You may need SBA loan (better rates, longer terms)

• Larger strategic investment or acquisition

Choose Express When:

• You need $10K-$350K

• Speed is critical (need funds in 15-20 days)

• Straightforward working capital need

• Want simple, fast process

Traditional Working Capital Structures

1. Term Loans ($50K-$5M)

How It Works:

• Receive lump sum

• Fixed monthly payments

• Set repayment schedule

• Interest + principal each month

Best For:

• Specific investment with clear ROI

• Equipment purchases over $350K

• Business acquisitions

• Major expansion projects

• Debt consolidation/refinancing

Typical Terms:

• 2-7 years

• Monthly payments

• Fixed or variable interest

• May require collateral (equipment, real estate, A/R)

2. Revenue-Based Financing ($50K-$1M)

How It Works:

• Receive lump sum

• Repay as percentage of daily/weekly/monthly revenue

• Payments flex with sales (more sales = higher payment, less sales = lower payment)

• No fixed monthly obligation

Best For:

• Seasonal businesses

• Businesses with variable monthly revenue

• Retailers, restaurants, service businesses

• Companies wanting payment flexibility

Typical Structure:

• 3-12 month terms

• 5-15% of monthly revenue until repaid

• Factor rate 1.15-1.35 (borrow $100K, repay $115K-$135K)

• No personal collateral typically

3. SBA Loans ($150K-$5M)

How It Works:

• Government-guaranteed loan

• Processed through LVRG's SBALoansMichigan.com platform

• Access to 25+ elite SBA lenders

• Best rates and longest terms available

Best For:

• Businesses wanting lowest rates

• Longer-term financing (10+ years)

• Large working capital needs

• Business acquisitions

• Real estate + working capital combined

Typical Terms:

• Up to $5 million

• 10-25 year terms

• Interest rates: Prime + 2-3%

• Requires more documentation

• 6-8 week process through LVRG

Learn more: Visit SBALoansMichigan.com for detailed SBA loan information

Qualification for Traditional Working Capital

More Flexible Than Express:

• May accept businesses with 600+ credit (vs. 650+ for Express)

• Startups may qualify (franchise concepts, certain industries)

• Higher debt loads acceptable (with strong cash flow)

• Broader industry acceptance

More Rigorous Documentation:

• Business plan may be required for $1M+

• Detailed financial projections

• More extensive due diligence

• Collateral analysis if secured loan

Industries LVRG Serves - Traditional Working Capital

LVRG Business Funding has deep expertise financing Michigan businesses across industries:

Manufacturing & Industrial:

• Automotive suppliers (Tier 1, 2, 3)

• Metal fabrication

• Plastics & injection molding

• CNC machining

• Food processing

• Industrial distribution

Construction & Trades:

• General contractors

• Specialty contractors (HVAC, electrical, plumbing)

• Excavation & site work

• Restoration & remediation

• Commercial construction

• Residential construction

Healthcare & Medical:

• Dental practices

• Veterinary clinics

• Medical practices (primary care, specialty)

• Home healthcare agencies

• Pharmacies

• Medical device distribution

Professional Services:

• Accounting & tax preparation

• Law firms

• Consulting firms

• Marketing agencies

• IT services & managed service providers

• Engineering firms

Food & Hospitality:

• Restaurants (franchise and independent)

• Catering companies

• Bars & breweries

• Hotels & motels

• Food distribution

Retail & E-commerce:

• Brick-and-mortar retail

• E-commerce

• Specialty retail

• Franchise retail concepts

• Wholesale distribution

Technology & Communications:

• Software companies (SaaS with recurring revenue)

• IT services

• Telecommunications

• Managed service providers

• Cybersecurity firms

Transportation & Logistics:

• Trucking companies

• Freight forwarding

• Warehousing & distribution

• Last-mile delivery

• Fleet services

And Many More:

• Agriculture operations

• Fitness centers & gyms

• Funeral homes

• Government contractors

• Property management

• Self-storage facilities

• Auto dealerships (certain types)

Restricted Industries: Most businesses qualify. However, certain industries have restrictions:

• Adult entertainment

• Cannabis (still federally illegal)

• Gambling

• Speculative real estate

• Passive income businesses

Contact LVRG to discuss your specific industry and eligibility.

How to Qualify for Working Capital Loans in Michigan

Understanding qualification criteria helps you prepare and choose the right financing option.

Credit Score Requirements

Personal Credit (FICO):

Express Working Capital:

• Minimum: 650 FICO

• Preferred: 680+

• Excellent: 720+

Traditional Working Capital:

• Minimum: 600 FICO (some programs)

• Preferred: 650+

• Excellent: 700+

What Affects Your Credit Score:

• Payment history (35% of score) - most important

• Credit utilization (30%) - keep under 30%

• Length of credit history (15%)

• Credit mix (10%)

• New credit inquiries (10%)

Improving Your Credit Before Applying:

• Pay all bills on time for 6+ months

• Pay down credit card balances (below 30% utilization)

• Fix any errors on credit report

• Don't close old accounts (hurts length of history)

• Avoid new credit applications before applying

Business Credit (SBSS, Dun & Bradstreet):

Express Working Capital:

• Minimum: SBSS 165

• Preferred: SBSS 180+

What is SBSS? Small Business Scoring Service - business credit score that measures:

• Payment history to vendors/suppliers

• Business credit utilization

• Public records (liens, judgments)

• Company size and industry

How to Build Business Credit:

• Get business credit cards, use responsibly

• Establish trade lines with vendors (pay on time)

• Register with Dun & Bradstreet

• Keep business and personal finances separate

• Pay business debts before due date when possible

Time in Business

Express Working Capital:

• Minimum: 2 years operating history

• Calculated from date business started operations (not incorporation date)

• Some franchise concepts may have modified requirements

Traditional Working Capital:

• Minimum: Varies by program (some accept 1+ years)

• Startups may qualify for certain franchise concepts

• Veterinary and dental practices have special consideration

• Longer track record = better rates and terms

Why Lenders Care About Time in Business:

• Survival rate: Most business failures happen in first 2 years

• Track record: Demonstrates ability to generate revenue and manage operations

• Financial history: More data to analyze = more confidence

Revenue Requirements

Express Working Capital:

• Typical minimum: $300,000+ annual revenue

• Some industries may have higher requirements

• Consistent revenue more important than amount

Traditional Working Capital:

• Varies widely by program and loan size

• Larger loans require larger revenue base

• SBA loans: typically $250K+ annual revenue

• Revenue-based financing: $500K+ annual revenue preferred

Revenue Verification:

• Bank statements (primary verification)

• Tax returns (IRS-filed confirmation)

• P&L statements (current year performance)

Profitability & Cash Flow

Profitability: Lenders prefer profitable businesses, but break-even or slight losses may be acceptable if:

• Clear path to profitability demonstrated

• Strong cash flow despite paper losses (depreciation, etc.)

• Owners taking below-market salaries (add-back available)

Debt Service Coverage Ratio (DSCR):

Formula: Net Operating Income ÷ Annual Debt Payments

Minimum: 1.25x (Express and most programs) Preferred: 1.50x or higher

Example:

• Net Operating Income: $250,000/year

• Existing Debt Payments: $100,000/year

• New Loan Payment: $50,000/year

• Total Debt Payments: $150,000/year

• DSCR: $250,000 ÷ $150,000 = 1.67x ✓ Qualifies

Cash Flow Analysis: Lenders review bank statements to verify:

• Consistent deposits (revenue)

• Adequate ending balances

• No excessive NSF/overdrafts

• Seasonality patterns (if applicable)

• Owner withdrawals (reasonable)

Collateral Requirements

Express Working Capital:

• Minimal collateral requirements

• No personal collateral for qualifying businesses

• Business assets may be pledged (UCC filing)

• Personal guarantee required

Traditional Working Capital: Varies by loan size and structure:

Unsecured ($50K-$250K):

• No collateral required

• Personal guarantee required

• Based on credit and cash flow

Secured ($250K+):

• Equipment (if purchasing equipment)

• Accounts receivable

• Inventory

• Real estate (if owned)

• Personal assets (for larger amounts)

What is a Personal Guarantee? Legal agreement that you (the business owner) are personally liable for the debt if the business cannot pay. Standard for virtually all small business loans.

Industry-Specific Considerations

Michigan Automotive Suppliers:

• Lenders understand 60-90 day OEM payment terms

• Strong contracts with Ford, GM, Stellantis strengthen application

• IATF 16949 certification viewed positively

• Diversification across multiple OEMs preferred

Michigan Manufacturers:

• Equipment serves as strong collateral

• Long-term customer relationships valued

• Capacity utilization important (operating at 60%+ good sign)

• Skilled labor availability considered

Construction Contractors:

• Seasonal cash flow understood and modeled

• Bonding capacity important

• Project pipeline considered

• Owner experience in industry critical

Restaurants:

• Higher risk profile (more scrutiny)

• Franchise concepts easier to finance

• Location and concept matter

• Sales validation (POS data) helpful

Healthcare Practices:

• Insurance reimbursement patterns understood

• Payer mix analyzed

• License verification required

• Malpractice insurance required

Geographic Considerations

LVRG Serves All Michigan:

• Metro Detroit (Wayne, Oakland, Macomb counties)

• Grand Rapids & West Michigan

• Ann Arbor & Washtenaw County

• Lansing & Mid-Michigan

• Flint & Genesee County

• Upper Peninsula

• Traverse City & Northern Michigan

• Everywhere in between

No geographic restrictions. Whether your business is in downtown Detroit or rural Upper Peninsula, same programs available.

Michigan Advantage: Being Michigan-based, LVRG understands:

• Michigan economy and industries

• Automotive supply chain dynamics

• Seasonal business patterns (winter impacts)

• Great Lakes shipping and logistics

• Regional economic differences (Detroit vs. Grand Rapids vs. Outstate)

The Application Process: Step-by-Step

LVRG makes applying for working capital simple and transparent.

Step 1: Determine Your Needs

Before Applying, Answer:

How much do you need?

• Be specific (don't just guess)

• Add 15-20% buffer for unexpected costs

• Consider: equipment cost + installation + training + working capital during transition

What will you use it for?

• Specific, clear use of funds

• ROI justification (how will this make/save money?)

• Timeline for deployment

How quickly do you need it?

• Emergency (days): May need merchant cash advance (expensive)

• Urgent (2-3 weeks): Express Working Capital ideal

• Normal (4-8 weeks): Traditional Working Capital or SBA

Can you afford the payment?

• Conservative cash flow projection

• Account for seasonality

• 1.25x DSCR minimum (prefer 1.5x+)

Do you meet minimum qualifications?

• Credit score 650+ (Express) or 600+ (Traditional)

• 2+ years in business (Express) or 1+ (Traditional)

• Revenue sufficient for loan size

• Current on all obligations

Step 2: Apply Online

LVRGFunding.com/apply-now

Application Takes 5-10 Minutes:

• Business information (name, industry, location, time in business)

• Owner information (name, ownership %, SSN for soft credit check)

• Loan request (amount, use of funds)

• Financial snapshot (annual revenue, estimated credit score)

• Contact information (phone, email)

No Hard Credit Pull: LVRG does soft inquiry only at application stage. Your credit score is NOT impacted. Hard inquiry only if/when you decide to move forward.

Immediate Confirmation: You'll receive email confirmation immediately. LVRG advisor will contact you within 1 business day (usually same day).

Step 3: Initial Consultation

LVRG Advisor Contact: Within 1 business day, experienced LVRG funding advisor contacts you:

• Discuss your business and financing needs

• Explain options (Express vs. Traditional, loan structures)

• Answer questions about process, timeline, terms

• Request initial documentation

No Pressure: LVRG's consultation is educational and advisory. We help you understand options and make informed decisions. No high-pressure sales tactics. If working capital financing isn't right fit, we'll tell you honestly.

Step 4: Document Submission

Document Checklist (Express Working Capital):

□ Business bank statements (3 months) □ Business tax returns (3 years) □ Personal tax returns of 20%+ owners (3 years) □ Current P&L statement (within 90 days) □ Current balance sheet (within 90 days) □ Business debt schedule □ Affiliate analysis (if applicable)

How to Submit:

• Secure online portal link provided

• Upload documents (PDF format preferred)

• LVRG advisor assists if you have questions

Tips for Faster Processing:

• Organize documents in advance

• Label files clearly (2023_Business_Tax_Return.pdf)

• Ensure all pages included and readable

• Provide complete information (don't leave blanks)

Step 5: Underwriting & Credit Decision

What Happens During Underwriting:

Document Review:

• Verify information accuracy

• Reconcile tax returns to bank statements

• Analyze cash flow patterns and trends

• Calculate debt service coverage ratio

Credit Analysis:

• Pull business and personal credit reports

• Review payment history and derogatory items

• Assess credit utilization and available credit

• Understand any credit issues (you'll have chance to explain)

Risk Assessment:

• Industry analysis (is industry stable/growing?)

• Business model evaluation

• Competitive position assessment

• Management experience and capability

Collateral Evaluation (if applicable):

• Equipment appraisal or valuation

• Real estate appraisal (if securing loan with property)

• A/R aging report analysis

• Inventory valuation

Timeline:

• Express: 5-7 business days for credit decision

• Traditional: 2-3 weeks depending on complexity

Step 6: Approval & Term Sheet

If Approved: You'll receive detailed term sheet outlining:

Loan Amount: Approved funding amount Interest Rate: Annual percentage rate Repayment Term: Length of loan (months/years) Monthly Payment: Principal + interest amount Collateral: What (if anything) secures the loan Personal Guarantee: Who signs (all 20%+ owners typically) Fees: Origination fee and any other costs Prepayment: Terms for paying off early Conditions: Any requirements before closing (insurance, etc.)

Review Carefully:

• Read everything

• Ask questions about anything unclear

• Understand total cost of financing

• Verify payment fits your budget

• Check prepayment penalty (LVRG has none on Express)

Negotiation: Some terms may be negotiable:

• Interest rate (if stronger guarantor or collateral)

• Loan amount (if need less/more)

• Repayment term (longer = lower payment but more interest)

Decline to Proceed: If terms don't work for you, no obligation to proceed. LVRG respects your decision and maintains relationship for future needs.

Step 7: Closing Process

If You Accept Terms:

Closing Documents Prepared:

• Promissory note (your promise to repay)

• Security agreement (if secured loan)

• Personal guarantee

• Corporate resolution (board approval of loan)

• ACH authorization (for payments)

• UCC-1 filing (if secured)

Document Review:

• LVRG sends closing docs electronically (DocuSign)

• Review carefully before signing

• Ask questions if anything unclear

• May want attorney review for large loans ($500K+)

Conditions Cleared:

• Proof of insurance (hazard, liability, life insurance sometimes)

• Vendor invoices (if financing specific purchase)

• Any other conditions from approval

Signing:

• Electronic signature through secure platform

• All guarantors must sign

• Takes 15-30 minutes typically

• Can be done from anywhere (phone, computer)

Timeline:

• Express: Close within 2-3 days of acceptance

• Traditional: Close within 1 week of acceptance

Step 8: Funding

Wire Transfer: Once all documents signed and conditions cleared:

• LVRG wires funds to your business bank account

• Usually same day or next business day after closing

• No delays, no excuses

Funding Amount:

• Loan amount minus any fees withheld

• Example: $100,000 loan, 3% origination fee = $97,000 wired to you

Confirmation:

• Email confirmation when wire sent

• Typically hits account same day

• Confirm receipt with your bank

Post-Funding:

• LVRG sets up loan servicing account (online access)

• First payment date communicated (typically 30 days from funding)

• Autopay setup recommended

• Ongoing support from LVRG team

Total Timeline Summary

LVRG Express Working Capital:

• Day 1: Apply online

• Day 2: LVRG contact, document request

• Day 7: Documents submitted

• Day 12: Credit decision, approval

• Day 15: Closing

• Day 17: Funding

• Total: 15-20 business days

Traditional Working Capital:

• Week 1: Apply, consultation, document request

• Week 2-3: Documents submitted, underwriting

• Week 4: Credit decision, approval, term sheet

• Week 5: Closing process

• Week 6: Funding

• Total: 4-6 weeks

Compare to Banks:

• 90-120+ days (and that's if approved)

Working Capital vs. Other Financing Options

Understanding alternatives helps you choose the best fit.

Working Capital Loan vs. Line of Credit

Working Capital Term Loan:

• Lump sum received upfront

• Fixed monthly payment

• Set repayment schedule

• Interest on full amount from day one

• Pay off early without penalty (LVRG)

Line of Credit:

• Draw as needed (up to limit)

• Interest only on drawn amount

• Revolving (pay down, draw again)

• Ongoing access to capital

• Annual renewal typically

When to Choose Working Capital Loan:

• One-time specific need (equipment, inventory, acquisition)

• Want fixed payment for budgeting

• Don't need ongoing access

• Lower interest rate than line of credit

When to Choose Line of Credit:

• Ongoing working capital needs

• Seasonal fluctuations

• Want flexibility to draw as needed

• Pay interest only on what you use

LVRG Position: LVRG does not currently offer traditional lines of credit. We focus on term loans (working capital, equipment, SBA) where we can provide better rates and terms than revolving credit lines.

Alternative: Revenue-based financing provides similar flexibility to line of credit (payments adjust with revenue).

Working Capital vs. SBA Loan

Working Capital Loan (LVRG Express or Traditional):

• Faster approval (15-20 days Express, 4-6 weeks Traditional)

• Less documentation

• More flexible use of funds

• Higher interest rates than SBA

• Shorter terms typically

SBA Loan (via SBALoansMichigan.com):

• Longer approval (6-8 weeks with LVRG, 90-120+ days direct to bank)

• More documentation required

• Specific use restrictions

• Lower interest rates (Prime + 2-3%)

• Longer terms (up to 10-25 years)

• Lower down payment for real estate (10% vs. 20-30%)

When to Choose Working Capital:

• Need money in 2-4 weeks

• Loan amount under $350K

• Want simple documentation process

• Use of funds doesn't fit SBA restrictions

When to Choose SBA:

• Large amount ($500K+)

• Want lowest possible rate

• Buying real estate or business

• Can wait 6-8 weeks (through LVRG)

• Want 10-25 year term

Can Be Combined: Many businesses use LVRG working capital for immediate needs, then later use SBA loan for larger strategic investments.

Learn More About SBA Loans: Visit SBALoansMichigan.com for complete SBA loan guide.

Working Capital vs. Equipment Financing

Working Capital Loan:

• Use for anything (equipment, inventory, payroll, etc.)

• Not secured by specific equipment

• May have higher rate if unsecured

• Flexible deployment

Equipment Financing:

• Specific to equipment purchase

• Equipment serves as collateral

• Lower interest rate (secured)

• Terms match equipment life (5-7 years typical)

• May finance 100% of equipment cost

When to Choose Working Capital:

• Buying equipment PLUS need working capital

• Equipment under $50K

• Want flexibility in deployment

• Used equipment with limited value

When to Choose Equipment Financing:

• Buying equipment $100K+ (LVRG specializes in $100K-$50M equipment financing)

• Want lowest rate (equipment as collateral)

• Equipment has strong resale value

• Financing 100% of cost

Can Be Combined: Finance equipment separately (equipment financing), use working capital for installation, training, and operational costs during transition.

LVRG Equipment Financing: For equipment needs $100K+, LVRG has specialized equipment financing division. Contact us for details.

Working Capital vs. Merchant Cash Advance (MCA)

Working Capital Loan (LVRG):

• Structured as loan (regulated)

• Interest rate disclosed (APR)

• Fixed or variable monthly payment

• Repayment term specified

• Reasonable cost (8-18% typically)

• No daily ACH

Merchant Cash Advance:

• NOT a loan (unregulated)

• Factor rate, not interest rate

• Daily ACH from business account

• Repaid via % of credit card sales or daily ACH

• VERY EXPENSIVE (40-80% APR equivalent)

• Can trap businesses in cycle

When to Consider MCA:

• Absolute emergency (equipment breakdown, can't operate without immediate fix)

• Horrible credit (500s)

• Can't qualify for anything else

• Can repay in 3-4 months maximum

Why MCAs Are Dangerous:

• Daily ACH drains cash flow

• Very expensive (businesses often pay back 1.3-1.5x in 6-9 months)

• Renewal trap (need another MCA to pay first one)

• Can lead to business failure

LVRG's Position: We do NOT offer merchant cash advances. We believe they're predatory and harmful to businesses. If you currently have an MCA, LVRG can help you refinance it into a more affordable working capital loan (debt consolidation is approved use).

Better Alternative: LVRG Express Working Capital funds in 15-20 days at reasonable rates. Plan ahead—don't wait until it's emergency and MCA is only option.

Working Capital vs. Revenue-Based Financing

Traditional Working Capital Loan:

• Fixed monthly payment

• Predictable schedule

• Works for stable cash flow businesses

• Lower cost typically

Revenue-Based Financing:

• Payment is % of monthly revenue

• Payments flex with sales (more sales = higher payment, less sales = lower payment)

• No fixed monthly obligation

• Higher cost than fixed payment loan

• Great for seasonal businesses

When to Choose Revenue-Based:

• Seasonal business (tourism, retail, construction)

• Variable monthly revenue

• Want payment protection (if sales slow, payment slows)

• Growing fast (expect revenue to increase significantly)

When to Choose Traditional Working Capital:

• Stable, predictable revenue

• Want lowest cost

• Fixed payment easier for budgeting

LVRG Offers Both: We can structure either fixed payment working capital or revenue-based financing. Your advisor will help determine which fits your business best.

Industry-Specific Working Capital Strategies

Michigan's diverse economy requires specialized approaches by industry.

Manufacturing & Automotive Suppliers

Unique Cash Flow Challenge: 60-90 day payment terms from OEMs (Ford, GM, Stellantis, etc.) create massive cash flow gaps. You buy raw materials and pay labor today, but don't get paid for 2-3 months.

Working Capital Solution:

Accounts Receivable Bridge Financing:

• Borrow against open invoices

• Receive cash immediately instead of waiting 60-90 days

• Repay when customer pays invoice

• Typical advance rate: 80-85% of invoice value

Inventory Financing:

• Finance raw material purchases

• Especially useful for large orders

• Repay when product ships and invoice paid

• Enables accepting larger contracts

Equipment + Working Capital Combined:

• Finance new machinery (equipment loan)

• Include working capital for materials during ramp-up

• Gives you full solution for capacity expansion

Example Structure: Sterling Heights automotive supplier needs to expand capacity for new EV component contract:

• Equipment financing: $800,000 (CNC machines, robotics)

• Working capital: $300,000 (raw materials, labor during ramp-up)

• Total package: $1,100,000

• Timeline: 4-6 weeks

• Payment structured with 3-month interest-only period during installation

LVRG's Automotive Industry Expertise:

• Understand OEM payment terms (not surprised by 60-90 days)

• Value contracts with Ford, GM, Stellantis appropriately

• Know IATF 16949 certification significance

• Deep relationships with Michigan automotive lenders

• Closed hundreds of deals for automotive suppliers

Construction & Trades

Unique Cash Flow Challenge:

• Material costs upfront (supplier COD or 30-day terms)

• Labor costs continuous (weekly payroll)

• Progress payments delayed (30-60 days)

• Winter seasonal slowdown (Michigan-specific)

• Bonding requirements tie up capital

Working Capital Solution:

Seasonal Working Capital:

• Larger line in spring/summer (busy season)

• Smaller payment in winter (slow season)

• Structured to match construction seasonality

• Revolving structure (pay down in busy months, draw in slow months)

Project-Based Financing:

• Finance materials and labor for specific large project

• Repay from progress payments

• Enables bidding on larger contracts

• Shows GC you have financial capacity

Equipment + Working Capital:

• Finance equipment (excavator, dump truck, etc.)

• Include working capital for operational costs

• Total solution for capacity expansion

Example Structure: Lansing general contractor winning $2M commercial project:

• Equipment: $400,000 (new excavator, trucks)

• Working capital: $300,000 (materials, subs, payroll)

• Total: $700,000

• Structured with milestone draws (like GC will pay contractor)

• Repaid over 3 years after project completion

LVRG's Construction Industry Expertise:

• Understand seasonal cash flow (not surprised by winter slowdown)

• Value bonding capacity

• Appreciate project pipeline and backlog

• Know Michigan contractors face (cold weather impacts)

• Experience with Davis-Bacon wage requirements (government contracts)

Healthcare & Medical Practices

Unique Cash Flow Challenge:

• Insurance reimbursement delays (30-90 days)

• High upfront equipment costs (medical/dental equipment expensive)

• Staff expansion needed before revenue grows

• Credentialing delays for new providers

• Regulatory compliance costs

Working Capital Solution:

Accounts Receivable Financing:

• Borrow against outstanding insurance claims

• Get paid immediately instead of waiting months

• Typical advance: 80% of approved claims value

Equipment + Working Capital:

• Finance medical/dental equipment

• Include working capital for staffing during patient ramp-up

• Enables practice expansion or associate hire

Practice Acquisition Financing:

• SBA loan for practice purchase (via SBALoansMichigan.com)

• Working capital for patient integration and transition costs

• Total solution for practice growth through acquisition

Example Structure: Ann Arbor dental practice expanding with associate dentist:

• Equipment: $250,000 (digital x-ray, chairs, operatory build-out)

• Working capital: $100,000 (associate salary, marketing, patient ramp-up)

• Total: $350,000

• 7-year term

• Payment structured knowing insurance reimbursement cycles

LVRG's Healthcare Industry Expertise:

• Understand insurance reimbursement timelines

• Know equipment holds value well (good collateral)

• Appreciate licensing and credentialing delays

• Experience with dental, veterinary, medical practices

• Relationships with healthcare-focused lenders

Restaurants & Food Service

Unique Cash Flow Challenge:

• High upfront build-out costs

• Seasonal fluctuations (winter slow in many Michigan markets)

• Equipment breakdowns can shut down operations

• Thin margins (10-15% profit typical)

• High competition and failure rate

Working Capital Solution:

Equipment Emergency Financing:

• Walk-in cooler fails? Need replacement immediately

• Express working capital funds in 15-20 days

• Avoid expensive MCA options

• Get back to operating quickly

Seasonal Working Capital:

• Build inventory and staff for summer (tourism areas)

• Revenue-based financing (payments lower in slow winter months)

• Bridge winter cash flow gap

• Prepay for spring without draining reserves

Expansion/Second Location:

• Working capital for buildout, equipment, inventory

• Traditional 4-6 week timeline

• May combine with SBA loan for larger expansion

Example Structure: Traverse City restaurant in tourist area:

• Revenue-based financing: $150,000

• Use: Winter inventory, marketing, staff retention

• Repayment: 10% of monthly revenue

• Winter months (Nov-March): $3,000-$5,000/month payment

• Summer months (June-Aug): $15,000-$20,000/month payment

• Self-adjusting to seasonal revenue pattern

LVRG's Restaurant Industry Expertise:

• Understand seasonality (especially tourist areas)

• Know equipment financing critical

• Appreciate thin margins

• Experience with franchise and independent concepts

• Realistic about risks (restaurants are higher risk)

Retail & E-commerce

Unique Cash Flow Challenge:

• Seasonal inventory purchases (Christmas, back-to-school)

• Vendor payment terms (often COD or short terms)

• E-commerce: cash tied up in inventory for months

• Brick-and-mortar: high occupancy costs

• Omnichannel complexity (online + physical)

Working Capital Solution:

Seasonal Inventory Financing:

• Finance large inventory purchases (Oct-Nov for Christmas)

• Repay from holiday sales (Dec-Jan)

• Enables stocking up without draining cash

• Can take early-pay discounts from vendors

E-commerce Growth Capital:

• Finance inventory for product launches

• Marketing/advertising spend (FB ads, Google ads)

• Amazon FBA inventory financing

• Repay as inventory sells

Retail Expansion:

• Second location build-out

• Inventory for new location

• Working capital during ramp-up period

Example Structure: Grand Rapids e-commerce retailer (Michigan-made products):

• Working capital: $200,000

• Use: Inventory purchase for Q4 holiday season

• Timeline: Funded in September, repaid by February

• Structured knowing 60% of annual sales occur Oct-Dec

• Can reapply for next year's season

LVRG's Retail Industry Expertise:

• Understand seasonal patterns

• Know inventory financing critical

• Appreciate online vs. brick-and-mortar differences

• Experience with Michigan retailers across categories

• Realistic underwriting of retail risk

Professional Services

Unique Cash Flow Challenge:

• Staff expansion needed before revenue grows

• Large contracts require upfront investment (hiring, systems)

• Government contracts have long payment terms (60-90 days)

• Technology investments needed (CRM, project management, etc.)

• Business development costs (marketing, sales staff)

Working Capital Solution:

Growth Capital for Staffing:

• Finance hiring of key personnel ahead of revenue

• Gives runway for BD and revenue ramp

• Invest in sales/marketing to grow client base

Government Contract Bridge Financing:

• Finance work on government contracts (payment delayed 60-90 days)

• Accounts receivable financing against open invoices

• Enables accepting government work without cash flow strain

Technology & System Investment:

• Finance software, systems, training

• Improves efficiency and capacity

• ROI-justified (saves money or enables growth)

Example Structure: Detroit marketing agency winning major automotive client contract:

• Working capital: $250,000

• Use: Hire 4 additional staff, invest in project management software, client onboarding

• 5-year term

• Client contract provides repayment confidence

• Debt service coverage strong with new contract

LVRG's Professional Services Expertise:

• Understand contract-based revenue

• Know government payment terms

• Appreciate importance of talent acquisition

• Experience with service businesses across sectors

• Value long-term client relationships

Common Working Capital Mistakes to Avoid

Learn from others' mistakes.

Mistake #1: Waiting Until It's a Crisis

The Problem: Applying for financing when desperate puts you at extreme disadvantage:

• Lenders sense desperation (worse terms offered)

• May get declined due to distress signals

• Forced into expensive options (MCA) because need money TODAY

• Make poor decisions under pressure

Why It Happens:

• "I'll deal with it when I need it"

• Optimism bias (things will work out)

• Fear of debt

• Don't realize how long process takes

The Fix:

• Apply when you DON'T desperately need it

• Establish financing relationship before crisis

• Have backup capital source ready

• Think 3-6 months ahead, not 3-6 days

Michigan Example: Detroit contractor's excavator breaks down (can't work without it). Needs $75,000 immediately. Banks say 8-12 weeks. Desperate, takes merchant cash advance at 1.45 factor rate. Ends up paying back $108,750 in 8 months (nearly $34K in cost vs. ~$6K if had gotten LVRG Express loan proactively).

Lesson: Establish financing relationship before you need it. LVRG Express can fund in 15-20 days—but only if you apply BEFORE it's emergency.

Mistake #2: Not Calculating TRUE Need

The Problem: Borrowing too little means:

• Coming back for more money (another application, more time, more costs)

• Running out of capital mid-project

• Unable to complete what you started

• Opportunity cost of what you COULD have done with adequate capital

Why It Happens:

• Want to "minimize debt" (false economy)

• Underestimate costs

• Don't include working capital buffer

• Optimistic about timeline/revenue

The Fix:

• Calculate realistic need

• Add 20% buffer for unexpected costs/delays

• Include working capital for transition period

• Consider opportunity cost of being undercapitalized

Example Calculation: Equipment purchase working capital need:

• Equipment cost: $200,000

• Installation: $20,000

• Training: $10,000

• Working capital during 3-month ramp-up: $60,000 (payroll, materials)

• Buffer (15%): $43,500

• Total needed: $333,500

If you only borrowed $200,000 for equipment, you'd be short $133,500 for everything else.

Michigan Example: Grand Rapids manufacturer borrows $400,000 for equipment, ignoring $150,000 working capital need during ramp-up. Equipment arrives, can't afford materials to run it. Scrambles for additional financing (expensive, takes time). Should have borrowed $550,000 originally.

Lesson: Borrow what you ACTUALLY need, not what sounds "reasonable." One larger loan usually better than two smaller loans.

Mistake #3: Choosing Based Only on Rate

The Problem: Focusing only on interest rate ignores:

• Fees (origination, closing, prepayment penalty)

• Term length (lower rate but longer term = more total interest)

• Speed (opportunity cost of delay)

• Flexibility (prepayment options, collateral requirements)

• Relationship value

Why It Happens:

• Rate is easy number to compare

• Seems like most important factor

• Don't understand fees and terms

• Don't calculate total cost

The Fix:

• Calculate TOTAL cost of financing (rate + fees + term)

• Consider speed and flexibility value

• Think about prepayment (will you pay off early?)

• Evaluate entire relationship, not just one loan

Comparison Example:

Option A: Bank Loan

• Amount: $300,000

• Rate: 6%

• Term: 7 years

• Origination fee: 1% ($3,000)

• Prepayment penalty: 3 years

• Timeline: 12 weeks

• Total interest paid: $72,000

• Total cost: $75,000

Option B: LVRG Express

• Amount: $300,000

• Rate: 9%

• Term: 7 years

• Origination fee: 3% ($9,000)

• Prepayment penalty: NONE

• Timeline: 3 weeks

• Total interest paid: $114,000

• Total cost: $123,000

Wait—Option B costs $48K more!

But consider:

• 9 weeks faster funding (opportunity cost: could that equipment generate $48K+ in 9 weeks?)

• No prepayment penalty (can refinance or pay off early if business does well)

• Higher approval odds (bank may decline)

• Less documentation hassle

Sometimes paying more is worth it for speed, flexibility, certainty.

Michigan Example: Lansing retailer chooses bank loan at 5.5% over LVRG at 8.5%. Bank takes 14 weeks, approves week before Christmas season. Inventory arrives late, misses most profitable 6 weeks of year. Lost profit: $150,000. Saved on interest: $8,000. Net loss: $142,000 by choosing based on rate alone.

Lesson: Consider total value proposition, not just interest rate. Speed and certainty have value.

Mistake #4: Poor Use of Funds

The Problem: Using working capital for wrong purposes:

• Personal expenses (never)

• Speculative investments

• Covering ongoing losses (without fixing problem)

• Non-revenue-generating expenses

• Paying off personal debt

Why It Happens:

• Blurred line between business and personal

• Panic spending when cash arrives

• No clear plan for deployment

• Using as "general slush fund"

The Fix:

• Have specific use of funds BEFORE applying

• Deploy immediately according to plan

• Track spending against plan

• Use for revenue-generating or cost-saving purposes only

Good Uses:

• Equipment that increases capacity/efficiency

• Inventory for specific sales opportunity

• Marketing with clear ROI

• Staff to support growth

• Refinancing expensive debt (improves cash flow)

Bad Uses:

• Owner draw/personal expenses

• Speculation/gambling

• Covering losses without fixing root cause

• Luxury items for office

• Personal debt payoff

Michigan Example: Detroit service company receives $200,000 working capital. Instead of using for planned staff expansion, owner:

• Takes $50K personal draw

• Buys new office furniture ($30K)

• "Invests" $40K in friend's startup (loses it)

• $80K sits in account unused

Result: Still doesn't have staff to fulfill contracts, revenue doesn't grow, struggles to make loan payments.

Lesson: Use working capital strategically for specific revenue-generating purposes. Have plan BEFORE funds arrive.

Mistake #5: Ignoring Cash Flow Impact

The Problem: Not accurately projecting cash flow impact of loan payment leads to:

• Struggling to make payments

• Having to cut staff or inventory to make payments

• Defaulting on loan

• Damaging credit and banking relationships

Why It Happens:

• Optimistic revenue projections

• Don't account for seasonality

• Forget about taxes, other expenses

• Focus on getting approved, not ongoing management

The Fix:

• Conservative cash flow projections

• Model worst-case scenario (revenue 20% lower than expected)

• Account for seasonality (Michigan construction has winter slowdown)

• Ensure 1.5x DSCR cushion (not just 1.25x minimum)

Cash Flow Projection Example:

Before Loan:

• Monthly revenue: $150,000

• Monthly expenses: $120,000

• Monthly net cash flow: $30,000

• Comfortable

After $200K Loan ($3,500/month payment):

• Monthly revenue: $150,000 (same)

• Monthly expenses: $120,000 (same)

• Loan payment: $3,500

• Monthly net cash flow: $26,500

• Still comfortable (but less cushion)

If Revenue Drops 20% (realistic scenario):

• Monthly revenue: $120,000 (-20%)

• Monthly expenses: $110,000 (reduced somewhat)

• Loan payment: $3,500

• Monthly net cash flow: $6,500

• Tight (not much room for error)

Michigan Example: Traverse City resort borrows using summer revenue projections, doesn't account for 6 months of low winter revenue. Summer: cash flow great, no problem. Winter (Nov-April): revenue drops 70%, struggles to make payment. Late payments damage credit. Could have avoided by:

• Projecting seasonality accurately

• Negotiating seasonal payment structure

• Borrowing less

• Building 6-month payment reserve

Lesson: Model conservative cash flow scenarios BEFORE borrowing. Ensure you can make payment in worst-case reasonable scenario.

Mistake #6: Not Reading the Fine Print

The Problem: Signing documents without fully understanding terms leads to nasty surprises:

• Prepayment penalties (can't refinance or pay off early without huge fee)

• Personal guarantee scope (affects personal assets)

• Default provisions (what triggers default beyond late payment)

• Confession of judgment (lender can seize assets without court)

• Restrictive covenants (limitations on what you can do)

Why It Happens:

• Eager to get funded (don't want to delay)

• Documents are long and complex

• Embarrassed to ask questions

• Assume "standard" terms

The Fix:

• Read EVERYTHING before signing

• Ask questions about anything unclear

• Have attorney review (for loans $500K+)

• Negotiate unfavorable terms BEFORE signing

• Never sign under pressure

Key Terms to Understand:

Prepayment Penalty: Some lenders charge penalty if you pay off loan early.

• LVRG Express: NO prepayment penalty ✓

• Some banks: 2-3 years of interest if paid off early ✗

Personal Guarantee: You're personally liable if business can't pay.

• Standard for virtually all small business loans

• Affects personal credit if default

• Can pursue personal assets

Default Provisions: What besides non-payment triggers default:

• Filing bankruptcy

• Materially false statements in application

• Liens/judgments against business

• Change in ownership

• Failure to maintain insurance

Confession of Judgment: Allows lender to obtain judgment without court hearing.

• Mostly used in MCA industry (predatory)

• LVRG does NOT use confession of judgment

• If you see this, negotiate or walk away

Michigan Example: Warren contractor refinances expensive MCA with seemingly attractive loan. Doesn't read fine print. Discovers:

• 24-month prepayment penalty (locked in)

• Confession of judgment clause

• Weekly ACH (not monthly)

• Personal guarantee extends to future advances

Realizes too late he signed worse deal than MCA. Could have avoided by reading carefully and negotiating.

Lesson: Read every word before signing. If lender rushes you or won't answer questions, that's a red flag.

Mistake #7: Over-Leveraging

The Problem: Taking on too much debt relative to business size leads to:

• Debt service consuming most/all profit

• No cushion for problems or opportunities

• Stressed cash flow constantly

• Difficulty qualifying for additional financing later

• Default risk if any hiccup occurs

Why It Happens:

• "If some debt is good, more is better"

• Aggressive growth plans

• Overconfidence about revenue growth

• Don't understand debt capacity limits

The Fix:

• Conservative debt load (DSCR 1.5x+, not just 1.25x)

• Don't max out debt capacity

• Leave room for additional financing later

• Grow profitably before levering up more

Rule of Thumb: Total annual debt payments should be no more than 25-30% of revenue.

Example:

• Annual revenue: $1,000,000

• Maximum total debt payments: $250,000-$300,000/year

• ($21K-$25K/month)

If already paying $15K/month on existing debt, only take new loan with $6K-$10K/month payment maximum.

Michigan Example: Detroit manufacturer has revenue $2M/year, profit $300K/year. Already has:

• Equipment loan: $5K/month

• Building mortgage: $8K/month

• Vehicle loans: $2K/month

• Total: $15K/month ($180K/year)

DSCR: $300K ÷ $180K = 1.67x (healthy)

Gets aggressive, takes additional $500K working capital loan:

• Payment: $10K/month ($120K/year)

• New total: $25K/month ($300K/year)

New DSCR: $300K ÷ $300K = 1.0x (breaks even, zero cushion)

One slow month or unexpected expense creates payment crisis. Should have borrowed less or waited until revenue grew.

Lesson: Don't max out debt capacity. Leave cushion for inevitable problems and opportunities.

Working Capital Success Stories: Michigan Businesses

Real examples of Michigan businesses using working capital strategically.

Sterling Heights Automotive Supplier: $425,000

Business: Tier 2 automotive supplier, metal stamping and fabrication Employees: 45 Annual Revenue: $6.5M

Challenge: Won major contract with Ford for EV component production. Required:

• New CNC machine ($250K)

• Robotic welding system ($175K)

• Raw materials for initial production run ($100K)

• Labor during 3-month ramp-up period

Total need: $525,000

Bank said 12-16 weeks minimum. Ford wanted production to start in 8 weeks.

LVRG Solution:

• Equipment financing: $425,000

• Additional line: $100,000 (materials and labor)

• Total package: $525,000

• Timeline: 4 weeks from application to funding

• Structure: 7-year equipment financing at 7.2%, interest-only first 3 months during installation

Result:

• Equipment installed on time

• Production started week 7

• Ford contract fulfilled successfully

• Revenue increased 35% ($2.3M additional annual revenue)

• Hired 8 additional staff

• Loan paid down aggressively (will be paid off in year 4)

• Relationship with Ford strengthened (now preferred supplier)

Owner Quote: "LVRG understood our business and the automotive industry. Banks wanted endless documentation and would have taken 3+ months. We would have lost the Ford contract. LVRG moved fast, gave us straight answers, and funded exactly when they said they would. We're now discussing additional financing for our next expansion."

Grand Rapids Restaurant Group: $180,000

Business: 3-location restaurant group (casual dining) Employees: 85 seasonal (50 year-round) Annual Revenue: $4.2M (highly seasonal)

Challenge: Walk-in cooler failure at flagship location during peak summer tourist season (July). Without cooler, couldn't operate. Quotes:

• Equipment: $85,000 (commercial walk-in cooler, installation)

• Emergency timeline: needed ASAP

Also needed:

• Kitchen equipment refresh at 2nd location ($65,000)

• Working capital for fall/winter season ($30,000)

Total need: $180,000

Considered merchant cash advance (could get $100K in 2 days) but cost was 1.4x ($140K repaid). Banks said 8-10 weeks.

LVRG Solution:

• Express Working Capital: $180,000

• Timeline: 16 days from application to funding

• Structure: 5-year term, 9.5% rate, revenue-based payment option (10% of monthly revenue)

• No prepayment penalty

Result:

• Emergency cooler installed, flagship location back operating in 5 days from funding

• 2nd location kitchen refresh completed during slow season

• Revenue-based payment structure perfect for seasonal business:

  • Summer (June-Aug): $15K-$18K/month payments (easy to handle)

  • Winter (Jan-March): $4K-$6K/month payments (manageable in slow season)

• Avoided expensive MCA (saved ~$100K vs. MCA option)

• Paid off in 3.5 years (ahead of 5-year term)

Owner Quote: "We were in panic mode. The cooler died peak season—every day we were closed was $8,000-$10,000 in lost revenue. Merchant cash advance companies were calling immediately (how do they know??) offering same-day money but the cost was insane. LVRG funded in just over 2 weeks, which felt like forever at the time but was actually incredibly fast. The revenue-based payment was genius—high payments when we're busy, low when we're slow. Exactly what seasonal businesses need."

Ann Arbor Medical Practice: $350,000

Business: Primary care practice, 2 physicians + 1 NP Employees: 12 Annual Revenue: $2.8M

Challenge: Opportunity to acquire retiring physician's solo practice:

• Purchase price: $280,000 (goodwill, patient base, equipment)

• Integration costs: $40,000 (EMR integration, marketing, staff transition)

• Working capital during patient transition: $30,000

Total need: $350,000

SBA loan would have been ideal (best rates) but timeline was 8-10 weeks. Seller had another buyer interested and wouldn't wait.

LVRG Solution:

• Express Working Capital: $350,000

• Timeline: 18 days from application to closing

• Structure: 7-year term, 8.8% rate

• Secured by acquired practice assets + personal guarantee

Result:

• Acquisition closed on schedule

• 560 patients transitioned to acquiring practice (82% retention rate)

• Revenue increased $900,000 annually

• Hired 2 additional staff (medical assistant, front desk)

• After 18 months, refinanced with SBA loan at lower rate (LVRG had no prepayment penalty)

• Expanded to second location 2 years later (LVRG financed that too)

Owner Quote: "The timing was critical. The selling physician was retiring whether we bought his practice or not. If we waited 10 weeks for an SBA loan, the other buyer would have taken it. LVRG understood the urgency and moved incredibly fast. Yes, the rate was higher than an SBA loan, but the opportunity was worth it. And when we were ready to refinance 18 months later, LVRG had no prepayment penalty. That flexibility was huge."

Lansing HVAC Contractor: $125,000

Business: Commercial HVAC installation and service Employees: 18 Annual Revenue: $3.1M

Challenge: Seasonal cash flow management. Revenue pattern:

• Spring/Summer (Apr-Sep): $350K-$400K/month (installation season)

• Fall/Winter (Oct-Mar): $150K-$200K/month (service only)

During winter, struggled to:

• Maintain full crew (payroll $140K/month)

• Purchase materials for spring projects

• Cover fixed overhead ($45K/month)

Used credit cards (high interest) and sometimes delayed vendor payments (damaged relationships).

LVRG Solution:

• Revenue-Based Financing: $125,000

• Structure: Repay 12% of monthly revenue until $156,250 paid back (1.25 factor)

• Seasonal adjustment: Payments automatically flex with revenue

Result:

• Received $125,000 in November (slow season starting)

• Used to:

  • Maintain full crew through winter ($85K)

  • Pre-purchase materials for spring ($30K)

  • Cover overhead gap ($10K)

• Payments:

  • Winter (Nov-Mar): $18K-$24K/month (12% of ~$150K-$200K revenue)

  • Spring/Summer (Apr-Sep): $42K-$48K/month (12% of $350K-$400K revenue)

• Paid off in 11 months

• Benefits:

  • Crew stayed together (no layoffs/rehiring)

  • Ready to start season with materials and full crew

  • Vendor relationships intact (paid on time)

  • Credit cards paid off (saved 22% interest)

Owner Quote: "Seasonal businesses like construction and HVAC have a feast-or-famine cash flow. Winter is brutal—revenue drops but costs don't. Revenue-based financing was perfect because payments adjust automatically. When revenue is down, payment is lower. When revenue is high, payment is higher but affordable. This structure makes way more sense for seasonal businesses than traditional fixed payment loans."

How to Calculate Your Working Capital Needs

Don't guess—calculate precisely what you need.

Method 1: Cash Flow Gap Analysis

Best For: Covering operational shortfalls, seasonal businesses, payment term gaps

Formula: Working Capital Need = (Monthly Operating Expenses × Number of Months to Cover) - Current Cash Reserves

Example: Michigan Automotive Supplier

Monthly Operating Expenses:

• Payroll: $200,000

• Materials: $150,000

• Rent/utilities: $25,000

• Other overhead: $25,000

• Total: $400,000/month

Payment Terms Gap: You pay suppliers COD or net-30, but GM pays you in 90 days = 2-month gap

Calculation:

• Need to cover: 2 months of expenses

• 2 months × $400,000 = $800,000

• Current cash reserves: $200,000

• Working capital need: $600,000

This ensures you can operate for 2 full months before GM payment arrives.

Method 2: Growth Capital Calculation

Best For: Expansion, new locations, significant growth initiatives

Formula: Working Capital Need = (Upfront Investment Costs + Operating Losses During Ramp-Up) - Expected Revenue During Ramp-Up

Example: Grand Rapids Retailer Opening Second Location

Upfront Costs:

• Leasehold improvements: $80,000

• Initial inventory: $120,000

• Equipment & fixtures: $40,000

• Deposits & licenses: $15,000

• Total upfront: $255,000

Monthly Operating Costs (New Location):

• Rent: $8,000

• Payroll: $25,000

• Utilities/other: $7,000

• Total: $40,000/month

Ramp-Up Timeline: 6 months to breakeven Expected Revenue During Ramp-Up:

• Month 1-2: $15,000/month

• Month 3-4: $30,000/month

• Month 5-6: $45,000/month

• Total 6-month revenue: $180,000

Operating Costs for 6 Months: $240,000 Revenue During Ramp-Up: $180,000 Operating Loss: $60,000

Total Working Capital Need:

• Upfront: $255,000

• Operating loss: $60,000

• Total: $315,000

Add 20% buffer for delays/unexpected: $378,000

Method 3: Accounts Receivable Financing Need

Best For: B2B businesses with long payment terms

Formula: A/R Financing Need = (Average Monthly Sales × Payment Terms in Months × Desired Advance Rate)

Example: Detroit Professional Services Firm

Average Monthly Sales: $150,000 Payment Terms: 60 days (2 months) Desired Advance Rate: 80%

Outstanding A/R at Any Time: $150,000 × 2 = $300,000

A/R Financing Need: $300,000 × 80% = $240,000

This gives you 80% of invoice value immediately instead of waiting 60 days.

Method 4: Inventory Financing Need

Best For: Retailers, wholesalers, seasonal inventory businesses

Formula: Inventory Financing Need = (Peak Inventory Required - Current Inventory - Available Cash)

Example: Traverse City Retailer (Seasonal Tourist Business)

Peak Inventory Needed (June 1): $250,000 Current Inventory (April 1): $80,000 Available Cash: $40,000

Additional Inventory to Purchase: $250,000 - $80,000 = $170,000 Cash Available: $40,000

Inventory Financing Need: $170,000 - $40,000 = $130,000

This enables stocking up for peak season without depleting cash reserves.

Method 5: Equipment + Working Capital Bundle

Best For: Equipment purchases that require operational capital during transition

Formula: Total Need = Equipment Cost + Installation + Training + (Monthly Operating Costs × Transition Period in Months)

Example: Ann Arbor Manufacturing Company

Equipment Costs:

• CNC machine: $300,000

• Installation: $25,000

• Training: $15,000

• Total equipment: $340,000

Operating Costs During Transition:

• Materials for test runs: $30,000

• Labor during learning curve: $45,000 (3 months reduced productivity)

• Maintenance during warranty period: $10,000

• Total transition costs: $85,000

Total Financing Need: $340,000 + $85,000 = $425,000

Most businesses only think about equipment cost ($300K) and run short on transition costs ($85K).

Quick Working Capital Assessment Tool

Answer these questions to estimate your need:

1. What's your average monthly operating expense? $__________

2. How many months of expenses do you want to cover? ______ months (Seasonal businesses: 3-6 months; Stable businesses: 1-3 months)

3. Basic need = Question 1 × Question 2: $__________

4. Current cash reserves: $__________

5. Net working capital need = Q3 - Q4: $__________

6. Add 20% buffer for unexpected: $__________

7. TOTAL WORKING CAPITAL NEED: $__________

Don't Forget Hidden Costs

When calculating working capital needs, include:

Taxes:

• Payroll taxes (7.65% of payroll)

• Sales tax remittance (if applicable)

• Quarterly estimated taxes

• Property taxes

Insurance:

• Liability insurance premiums

• Workers comp (often quarterly)

• Property/equipment insurance

• Health insurance (if providing)

Professional Services:

• CPA/accounting fees

• Attorney fees

• Consultants

• Marketing agencies

Maintenance & Repairs:

• Equipment maintenance

• Facility repairs

• Vehicle maintenance

• Technology support

Regulatory & Compliance:

• Licenses and permits (renewals)

• Inspections

• Certifications (ISO, industry-specific)

• Training (safety, compliance)

Michigan-Specific Considerations:

• Winter heating costs (significantly higher Nov-March)

• Snow removal (commercial properties)

• Salt/materials for winter operations (construction, transportation)

• Seasonal fluctuations in utilities

When to Revise Your Working Capital Needs

Increase Your Need If:

• Sales growing faster than expected (need more inventory, staff)

• Customer payment terms extending (A/R growing)

• Supplier terms tightening (need to pay faster)

• Experiencing unexpected expenses

• Opportunity arises (acquisition, large contract)

May Need Less If:

• Sales slower than projected

• Improved collections (A/R shrinking)

• Better supplier terms negotiated

• Found cost efficiencies

• Received unexpected cash injection

Review Quarterly: Working capital needs change as business evolves. Review every 90 days and adjust accordingly.

Frequently Asked Questions

Q: What's the minimum credit score needed for working capital loans in Michigan?

A: Depends on program:

• LVRG Express: 650 FICO personal, 165 SBSS business minimum

• Traditional Working Capital: 600 FICO personal for some programs

• Below 600: Very limited options, likely merchant cash advance only (expensive)

Q: How fast can I get working capital funding?

A:

• LVRG Express: 15-20 business days average

• Traditional Working Capital: 4-6 weeks

• SBA Loans: 6-8 weeks through LVRG (90-120+ days direct to bank)

• Merchant Cash Advance: 1-3 days (but expensive—not recommended)

Q: Do I need collateral for a working capital loan?

A: Depends:

• LVRG Express: Minimal collateral requirements, no personal collateral for qualifying businesses

• Traditional Unsecured: No collateral for $50K-$250K if strong credit

• Traditional Secured: Collateral required for larger amounts (equipment, A/R, real estate)

• Personal Guarantee: Required for virtually all small business loans regardless of collateral

Q: Can startups get working capital loans?

A: Difficult but possible:

• LVRG Express: Requires 2+ years operating history (startups not eligible)

• Traditional: Some programs accept 1+ years in business

• Franchise Startups: May qualify with franchise experience

• Dental/Veterinary: Special consideration for new practices

• Best Alternative: Personal loans, SBA microloans, or wait until 2 years in business

Q: What can I use working capital loans for?

A: Almost anything except commercial real estate purchase:

• ✅ Equipment purchases

• ✅ Inventory/supplies

• ✅ Payroll

• ✅ Marketing/advertising

• ✅ Leasehold improvements

• ✅ Debt refinancing

• ✅ Business acquisitions

• ✅ Working capital/cash flow

• ❌ Commercial real estate (use LVRG Commercial Real Estate Financing instead)

• ❌ Personal expenses

• ❌ Speculative investments

Q: Does LVRG serve businesses outside Metro Detroit?

A: Yes! LVRG serves businesses throughout Michigan:

• Metro Detroit (Wayne, Oakland, Macomb)

• Grand Rapids & West Michigan

• Ann Arbor & Washtenaw County

• Lansing & Mid-Michigan

• Flint & Genesee County

• Upper Peninsula

• Everywhere in Michigan

Plus, LVRG provides financing nationwide for certain products.

Q: What's the difference between working capital and a line of credit?

A:

• Working Capital Loan: Lump sum, fixed monthly payment, set term

• Line of Credit: Draw as needed, revolving, interest only on drawn amount

LVRG currently focuses on working capital term loans (not traditional lines of credit). However, our revenue-based financing offers similar flexibility to a line of credit.

Q: Can I pay off my working capital loan early?

A: With LVRG Express: YES, no prepayment penalty!

Many banks have prepayment penalties (2-3 years of interest). LVRG Express has NONE—if your business does well and you want to pay off early, you can without penalty.

Q: What if my business is seasonal?

A: Perfect for revenue-based financing!

Revenue-based financing payment is percentage of monthly revenue, so:

• Busy season: Higher payment (but revenue is high so affordable)

• Slow season: Lower payment (matches lower revenue)

Example: Construction company in Michigan

• Summer: $400K revenue, payment $40K (10%)

• Winter: $150K revenue, payment $15K (10%)

Self-adjusting to seasonal patterns.

Q: How is working capital different from SBA loans?

A: Working Capital Loans:

• Speed: 15-20 days (Express program)

• Documentation: Minimal

• Interest Rate: Higher (8-18%)

• Repayment Term: Shorter (1-10 years)

• Use of Funds: Very flexible

• Best For: Fast needs, amounts under $350K

SBA Loans:

• Speed: 6-8 weeks (via LVRG's SBALoansMichigan.com)

• Documentation: Extensive

• Interest Rate: Lower (Prime + 2-3%)

• Repayment Term: Longer (10-25 years)

• Use of Funds: More restrictions

• Best For: Large amounts, best rates available

Learn more about SBA loans: SBALoansMichigan.com

Q: What industries does LVRG serve?

A: Most industries! Common Michigan industries:

• Manufacturing & automotive suppliers

• Construction & trades

• Healthcare (dental, veterinary, medical)

• Professional services

• Restaurants & hospitality

• Retail & e-commerce

• Technology & IT services

• Transportation & logistics

• And many more

Restricted: Adult entertainment, cannabis, gambling, speculative real estate

Q: Will applying hurt my credit score?

A: No! LVRG does soft credit inquiry during application—does NOT impact your score.

Hard inquiry only if/when you decide to proceed with loan after approval.

Q: What if I have bad credit?

A: Options are limited but exist:

• 650+ credit: LVRG Express and most programs available

• 600-649 credit: Some traditional working capital programs

• Below 600: Very limited (revenue-based financing possible if strong revenue)

Best Strategy: Work on improving credit for 6-12 months before applying. Even 50 points improvement (600→650) opens many options.

Q: Do I need a business plan?

A: Depends:

• LVRG Express ($10K-$350K): No business plan required

• Traditional under $500K: Usually not required (clear use of funds sufficient)

• Over $500K: Business plan or detailed investment memo helpful

• SBA Loans: Usually required

Q: Can I get working capital to refinance merchant cash advances?

A: YES! This is an approved use and one of the best uses of working capital.

Many Michigan businesses are trapped in expensive MCAs (40-80% APR equivalent). LVRG can refinance into affordable working capital loan (8-18%), dramatically improving cash flow.

Q: How much does working capital cost?

A:

• Interest Rate: 8-18% typically (depends on credit, risk)

• Origination Fee: 1-5% of loan amount

• Monthly Payment: Depends on amount and term

• Total Cost: Calculate rate + fees over full term

Example: $100,000 loan at 10% for 5 years

• Monthly payment: $2,124

• Total paid: $127,440

• Total interest: $27,440 (27.4% of loan amount)

Q: What documentation do I need?

A: For LVRG Express:

• Business bank statements (3 months)

• Business & personal tax returns (3 years)

• Current P&L and balance sheet (within 90 days)

• Business debt schedule

• Completed LVRG application

That's it! No business plan, no projections, no excessive documentation.

Q: Can I get working capital if I already have debt?

A: Yes, if your cash flow can support additional debt.

Lenders calculate Debt Service Coverage Ratio (DSCR):

• Formula: Net Operating Income ÷ Total Annual Debt Payments

• Minimum: 1.25x

• Preferred: 1.50x+

If your DSCR with new loan is 1.25x or higher, you likely qualify.

Q: What if I'm declined?

A: Ask why specifically, then:

Common Reasons & Solutions:

• Credit too low: Improve credit, reapply in 6 months

• Not enough cash flow: Increase revenue or reduce expenses, reapply in 6-12 months

• Too much existing debt: Pay down debt, improve DSCR

• Incomplete documentation: Provide complete info, reapply immediately

• Use of funds not approved: Change use or try different product

One lender declining doesn't mean all will. If LVRG declines, we'll help identify what you need to do to qualify later.

Apply for Working Capital Today

Don't let cash flow challenges hold your Michigan business back.

Why Choose LVRG Business Funding?

Michigan's Business Loan Authority

20+ Years Experience: Founded in Metro Detroit in 2003, LVRG has facilitated over $1 billion in financing to more than 10,000 businesses nationwide, with deep expertise in Michigan's economy and industries.

Fast Approvals:

• Express Working Capital: 15-20 days

• Traditional Working Capital: 4-6 weeks

• SBA Loans (via SBALoansMichigan.com): 6-8 weeks

Compare to 90-120+ days at banks.

Flexible Options:

• $10K-$350K Express program

• $50K-$5M traditional working capital

• Revenue-based financing for seasonal businesses

• SBA loans for best rates (via SBALoansMichigan.com)

Michigan Expertise: We understand:

• Automotive supplier payment terms

• Seasonal business patterns (winter impact)

• Manufacturing equipment financing

• Construction cash flow challenges

• Michigan's diverse economy

Boutique Service, Institutional Capacity:

• Work directly with senior leadership (not call center)

• Direct lending capability + banking partnerships

• Personal service at every step

• Long-term relationship focus

No Prepayment Penalties: LVRG Express has NO prepayment penalty—pay off early, save interest.

Transparent Terms: No hidden fees, no surprises. All costs disclosed upfront before you sign anything.

Three Ways to Apply

1. Apply Online (Fastest)

• Visit: LVRGFunding.com/apply-now

• Takes 5-10 minutes

• No hard credit pull

• Response within 1 business day

2. Call Us

• Phone: (855) 998-5874

• Speak with LVRG funding specialist

• Get questions answered

• Start application over phone

3. Email Us

• Email: info@lvrgllc.com

• Describe your business and needs

• We'll respond within 4 business hours

• Schedule consultation call

What Happens After You Apply?

Day 1: Apply online or call Day 2: LVRG advisor contacts you, discusses options Day 5-7: Submit documentation Day 12-15: Credit decision, approval, term sheet Day 15-20: Closing, funding wired to your account

For Express Working Capital: Average 15-20 business days from application to funding

Geographic Areas Served

LVRG proudly serves Michigan businesses statewide:

Metro Detroit:

• Detroit

• Warren

• Sterling Heights

• Dearborn

• Livonia

• Troy

• Farmington Hills

• Southfield

• Rochester Hills

• Novi

• Canton

• Ann Arbor

• Pontiac

• Royal Oak

• And all Wayne, Oakland, Macomb counties

West Michigan:

• Grand Rapids

• Kalamazoo

• Holland

• Muskegon

• Wyoming

• Kentwood

Mid-Michigan:

• Lansing

• East Lansing

• Jackson

• Battle Creek

Other Michigan Cities:

• Flint

• Saginaw

• Bay City

• Traverse City

• Petoskey

• Marquette (UP)

• And everywhere in between

No matter where your Michigan business is located, LVRG can help.

Industries We Specialize In

LVRG has deep expertise financing:

• Manufacturing (especially automotive suppliers)

• Construction (general contractors, specialty trades)

• Healthcare (dental, veterinary, medical practices)

• Professional Services (accounting, law, consulting, IT)

• Restaurants & Hospitality

• Retail & E-commerce

• Transportation & Logistics

• Technology & Software

• And many more

If your industry isn't listed, contact us—we likely serve it.

Ready to Get Started?

Don't wait until cash flow becomes a crisis.

Apply today and have working capital in place BEFORE you need it urgently.

Phone: (855) 998-5874

Online: LVRGFunding.com/apply-now

Email: info@lvrgllc.com

Office: LVRG Business Funding 615 Griswold Street, Suite 700 Detroit, MI 48226

Hours: Monday-Friday: 8:00 AM - 5:00 PM EST

About LVRG Business Funding

LVRG Business Funding is Michigan's Business Loan Authority, headquartered in Downtown Detroit. Founded in 2003 by Charles M. Barr, LVRG has facilitated over $1 billion in business financing to more than 10,000 established businesses nationwide.

Our Services:

• Express Working Capital Loans: $10K-$350K (15-20 days)

• Traditional Working Capital: $50K-$5M

• Equipment Financing: $100K-$50M+

• Commercial Real Estate Financing: $500K-$15M

• SBA Loans: Via SBALoansMichigan.com platform ($500K-$15M)

Our Approach: LVRG combines boutique personal service with institutional capital capacity. We're not transactional—we build long-term strategic partnerships with business owners. Whether you need $10,000 or $10,000,000, you work directly with experienced professionals who understand your business and industry.

Our Commitment:

• Transparent terms, no hidden fees

• Fast decisions (days to weeks, not months)

• Expert guidance through entire process

• Michigan expertise and nationwide reach

• Your success is our success

Contact LVRG: Phone: (855) 998-5874 Website: LVRGFunding.com Email: info@lvrgllc.com

Meta Note: This guide was last updated November 20, 2024. Lending programs, rates, and requirements change. Contact LVRG for current information specific to your situation. This guide is for informational purposes only and does not constitute financial advice.

The Complete Guide to Business Loans in Michigan 2026

Table of Contents

1. Introduction: The State of Michigan Business Lending in 2026

2. Why Michigan Businesses Need Strategic Financing

3. Types of Business Loans Available in Michigan

   • SBA Loans (7(a) and 504)

   • Equipment Financing

   • Working Capital Loans

   • Commercial Real Estate Loans

   • Revenue-Based Financing

   • Business Lines of Credit

   • Merchant Cash Advances

4. Michigan's Top Business Lenders: Banks vs. Boutique Firms

5. How to Qualify for a Business Loan in Michigan

6. The Michigan Business Loan Application Process

7. Michigan-Specific Loan Programs and Resources

8. Industry-Specific Financing in Michigan

9. Geographic Considerations: Detroit vs. Grand Rapids vs. Outstate

10. Common Mistakes Michigan Business Owners Make

11. How to Choose the Right Business Loan for Your Michigan Company

12. The Future of Business Lending in Michigan

13. Frequently Asked Questions

14. Next Steps: Get Your Michigan Business Funded

Introduction: The State of Michigan Business Lending in 2025

Michigan's business landscape has transformed dramatically over the past two decades. From the economic challenges of 2008 to today's thriving economy driven by automotive innovation, advanced manufacturing, technology, and a resurgent Detroit, Michigan businesses are poised for unprecedented growth.

But growth requires capital—and understanding your financing options has never been more critical.

As Michigan's Business Loan Authority, LVRG has facilitated over $1 billion in financing to more than 10,000 businesses nationwide, with a deep focus on Michigan companies. Over our 20+ years headquartered in Metro Detroit, we've seen firsthand how the right financing at the right time can transform a business from surviving to thriving.

This comprehensive guide covers everything you need to know about business loans in Michigan in 2025, including:

• Every major loan type available to Michigan businesses

• How to qualify and what lenders really look for

• Comparison of lenders from major banks to boutique firms

• Michigan-specific programs most business owners don't know about

• Industry-specific strategies for manufacturing, construction, healthcare, retail, and more

• Step-by-step application guidance to maximize your approval odds

• Real examples from Michigan businesses we've funded

Whether you're a manufacturer in Sterling Heights, a restaurant owner in Grand Rapids, a construction company in Lansing, or a tech startup in Ann Arbor, this guide will help you navigate Michigan's business lending landscape with confidence.

Key Statistics:

• Michigan small businesses employed nearly 2 million people in 2024

• Over $980 million in SBA-backed loans were approved for Michigan businesses in FY 2022

• Michigan ranks in the top 10 states for manufacturing employment

• Detroit's economic resurgence has created unprecedented opportunities for business financing

Let's begin.

Why Michigan Businesses Need Strategic Financing

The Michigan Advantage

Michigan offers unique advantages for business owners:

1. Diverse Economy: From automotive to agriculture, technology to tourism

2. Strategic Location: Access to Canadian markets and Great Lakes shipping

3. Talent Pool: World-class engineering, manufacturing, and healthcare workforce

4. Lower Operating Costs: More affordable than coastal markets

5. Pro-Business Environment: State and local support for business growth

Why Financing Matters in Michigan

Even profitable Michigan businesses need strategic financing to:

Seize Opportunities

• Land that six-figure contract but need to purchase materials upfront

• Acquire a competitor before someone else does

• Expand into a second location while market conditions are favorable

• Invest in automation to stay competitive globally

Manage Cash Flow

• Bridge gaps between 60-90 day payment terms from big automotive OEMs

• Handle seasonal fluctuations (construction, retail, tourism)

• Maintain working capital during rapid growth

• Cover unexpected equipment repairs or replacements

Invest in Growth

• Purchase new manufacturing equipment to increase capacity

• Hire key personnel ahead of revenue increases

• Develop new products or expand service lines

• Upgrade technology systems for efficiency

Navigate Challenges

• Economic uncertainty or industry disruptions

• Supply chain cost increases

• Labor shortages requiring higher wages

• Regulatory changes requiring capital investment

The Cost of NOT Having Capital

Many Michigan business owners underestimate the opportunity cost of being undercapitalized:

• Lost Contracts: Can't bid on larger projects without proof of working capital

• Slower Growth: Competitors with better financing capture market share

• Vendor Relationships: Can't negotiate better terms without ability to pay upfront

• Emergency Problems: Minor issues become major crises without capital reserves

• Stress and Decisions: Making decisions from scarcity rather than strategy

Bottom Line: In Michigan's competitive business environment, liquidity isn't optional—it's the difference between capitalizing on opportunities and watching them pass by.

Types of Business Loans Available in Michigan

Michigan businesses have access to a wide variety of financing options. Understanding each type is critical to choosing the right solution for your situation.

1. SBA Loans (7(a) and 504)

Overview Small Business Administration (SBA) loans are partially government-guaranteed, allowing banks to lend with less risk. This results in favorable terms for borrowers.

SBA 7(a) Loans

• Loan Amount: Up to $5 million

• Use Cases: Working capital, equipment, real estate, business acquisitions, refinancing, partner buyouts

• Terms: Up to 10 years (equipment/working capital), 25 years (real estate)

• Interest Rates: Current rates range from 11.5%-16.65% (tied to Prime Rate + margin)

• Down Payment: Typically 10-20%

• Michigan Context: Michigan had 2,115 SBA 7(a) loans approved totaling $813+ million in FY 2022

SBA 504 Loans

• Loan Amount: Up to $5.5 million per project (higher for certain manufacturing/energy projects)

• Use Cases: Commercial real estate purchase, construction, major equipment purchases

• Structure: 50% bank financing, 40% CDC (Certified Development Company), 10% borrower down payment

• Terms: 10, 20, or 25 years (fixed rate for CDC portion)

• Interest Rates: Below-market fixed rates (currently ~6-8% for CDC portion)

• Michigan Context: Michigan Certified Development Corporation (MCDC) is the leading 504 provider in the state

Who Should Consider SBA Loans:

• Established businesses (2+ years in business preferred)

• Strong credit (typically 680+ credit score)

• Businesses needing large amounts ($150K+) with longer terms

• Real estate purchases or major equipment investments

• Business acquisitions requiring competitive rates

Pros:

• Lower interest rates than conventional loans

• Longer repayment terms = lower monthly payments

• Less cash out of pocket (10-20% down vs. 30%+ for conventional)

• Working capital allowed for 7(a) loans

Cons:

• Lengthy application process (45-90 days typical)

• Extensive documentation required

• Personal guarantees required

• Collateral requirements

• SBA fees (1.5%-3.75% of loan amount)

Michigan-Specific Insight: Top SBA lenders in Michigan include Huntington National Bank (largest SBA lender nationally), Comerica, Fifth Third Bank, and Chase. However, working with a specialized SBA broker like LVRG can connect you with 25+ elite SBA lenders nationwide—many of which offer better rates and faster processing than local banks. Michigan CDCs include MCDC, Oakland County BFC, and various regional CDCs.

2. Equipment Financing

Overview Specialized loans or leases for purchasing business equipment, from construction machinery to medical devices to manufacturing equipment.

Loan Amount: $50,000 to $50,000,000+ Use Cases: Construction equipment, manufacturing machinery, medical equipment, commercial vehicles, restaurant equipment, gym equipment, agricultural equipment, power generation, aviation Terms: 3-7 years typical (shorter for technology, longer for heavy equipment) Interest Rates: 5%-15% depending on creditworthiness and equipment type Down Payment: 10%-20% typical (sometimes 0% for strong borrowers)

Types of Equipment Financing:

1. Equipment Loans

   • You own the equipment

   • Build equity

   • Section 179 tax deduction eligible

   • Fixed payments

2. Equipment Leases

   • Lower monthly payments

   • Upgrade flexibility

   • 100% financing possible

   • May include maintenance

3. Sale-Leaseback

   • Unlock capital from owned equipment

   • Continue using equipment

   • Improve cash flow

   • Maintain operational capacity

Who Should Consider Equipment Financing:

• Construction companies needing excavators, bulldozers, cranes

• Manufacturers needing CNC machines, robotics, production lines

• Medical practices needing imaging equipment, surgical equipment

• Transportation companies needing trucks, trailers

• Gyms needing fitness equipment

• Restaurants needing kitchen equipment

• Agricultural operations needing tractors, harvesters

Pros:

• Equipment serves as collateral

• Easier approval than unsecured loans

• Preserve working capital

• Tax advantages (Section 179, depreciation)

• Fixed payment structure

Cons:

• Equipment depreciates

• May require down payment

• Restrictions on equipment use/location

• Early termination penalties

Michigan-Specific Insight: Michigan's manufacturing heritage means excellent equipment financing options exist. Michigan manufacturers, contractors, and agricultural operations have access to specialized lenders who understand industry-specific equipment. LVRG specializes in large-ticket equipment financing ($500K-$100M+) for Michigan construction, manufacturing, and industrial companies—particularly for businesses acquiring multiple pieces of equipment or complete production lines.

3. Working Capital Loans

Overview Short to medium-term financing designed to cover day-to-day operational expenses and smooth cash flow gaps.

Loan Amount: $25,000 to $1,500,000 Use Cases: Payroll, inventory, accounts payable, seasonal expenses, bridge financing Terms: 6 months to 24 months typical Interest Rates: 8%-30% depending on structure and risk Approval Speed: 24-72 hours possible for alternative lenders

Types of Working Capital Financing:

1. Term Loans

   • Fixed amount

   • Fixed repayment schedule

   • Predictable payments

   • One-time infusion

2. Revenue-Based Financing

   • Repayment tied to sales/revenue

   • Flexible payments (more when sales are high, less when low)

   • No fixed monthly payment

   • 3-12 month terms common

3. Merchant Cash Advances

   • Based on credit card sales

   • Daily or weekly repayment

   • Very fast approval (same day possible)

   • Higher cost but extreme flexibility

Who Should Consider Working Capital Loans:

• Seasonal businesses (construction, retail, tourism)

• Businesses with lumpy cash flow

• Companies experiencing rapid growth

• Businesses waiting on large accounts receivable

• Companies needing to fulfill large orders

Pros:

• Fast approval and funding

• Less documentation than SBA loans

• Can use for any business purpose

• Unsecured options available

• Flexible repayment options

Cons:

• Higher interest rates than SBA/bank loans

• Shorter terms = higher monthly payments

• Personal guarantee usually required

• May have restrictions on additional debt

Michigan-Specific Insight: Michigan manufacturers and contractors frequently need working capital to bridge payment terms. Automotive suppliers often face 60-90 day payment terms from OEMs—working capital financing bridges this gap. Retailers in tourist areas (Traverse City, Mackinac Island, Harbor Springs) use working capital to build inventory for summer season. Detroit restaurants use working capital during slower winter months.

4. Commercial Real Estate Loans

Overview Loans for purchasing or refinancing owner-occupied commercial property or investment properties.

Loan Amount: $500,000 to $15,000,000+ (LVRG range) Use Cases: Purchase commercial building for business operations, refinance existing commercial property, construction of new building Terms: 10-25 years Interest Rates: 6%-10% (current market rates) Down Payment: 10%-30% depending on property type and loan structure

Types of Commercial Real Estate Loans:

1. Owner-Occupied (Business Property)

   • SBA 504 loans available

   • Conventional bank loans

   • Lower down payment options

   • Business uses majority of property

2. Investment Property

   • Conventional commercial loans

   • Typically 25-30% down

   • Rental income considered

   • Stricter qualification

3. Construction Loans

   • Draw schedule based on construction progress

   • Higher interest rates

   • Convert to permanent financing

   • More documentation required

Who Should Consider Commercial Real Estate Loans:

• Businesses currently leasing who want to build equity

• Companies needing specialized facilities

• Businesses in growing markets wanting to secure location

• Companies with real estate appreciation potential

• Businesses seeking tax advantages of property ownership

Pros:

• Build equity instead of paying rent

• Property appreciation potential

• Tax benefits (depreciation, interest deduction)

• Control over property/improvements

• Can lease excess space for income

Cons:

• Large down payment required

• Ties up capital

• Maintenance responsibility

• Less flexibility to relocate

• Market risk if area declines

Michigan-Specific Insight: Detroit and other Michigan markets offer excellent opportunities for owner-occupied properties due to lower real estate costs compared to coastal markets. Many Michigan manufacturers, distributors, and service companies in growth mode are purchasing facilities to gain stability and build wealth. Grand Rapids, Ann Arbor, and suburban Detroit markets have seen significant appreciation. SBA 504 loans are particularly attractive for Michigan owner-occupied properties—only 10% down and 25-year fixed rate on CDC portion.

5. Revenue-Based Financing

Overview Financing where repayment is a percentage of monthly revenue rather than a fixed payment.

Loan Amount: $50,000 to $1,000,000 Use Cases: Marketing campaigns, inventory purchases, seasonal cash flow, rapid expansion Terms: 3-12 months typical Cost: Factor rates of 1.15-1.50 (borrow $100K, repay $115K-$150K) Repayment: 5%-15% of daily/weekly/monthly revenue

How It Works: You receive lump sum, repay percentage of revenue until total amount repaid:

• Revenue up? Repayment up (but % stays same)

• Revenue down? Repayment down automatically

• No risk of default from single bad month

Who Should Consider Revenue-Based Financing:

• Seasonal businesses

• Businesses with variable monthly revenue

• E-commerce companies

• Retail businesses

• Restaurants with fluctuating traffic

Pros:

• Payments flex with revenue

• Fast approval (2-3 days)

• Minimal documentation

• No collateral required typically

• No fixed monthly obligation

Cons:

• Higher cost than traditional loans

• Short repayment period

• Daily/weekly ACH can feel intrusive

• Not building traditional credit

• May limit cash flow flexibility

Michigan-Specific Insight: Michigan retailers, restaurants, and service businesses with seasonal patterns often prefer revenue-based financing. Tourist-dependent businesses (Northern Michigan, Detroit entertainment venues) benefit from lower payments in slow months. E-commerce businesses selling Michigan-made products can use revenue-based financing to purchase inventory before peak seasons without fixed payment stress.

6. Business Lines of Credit

Overview Revolving credit line you can draw from as needed, similar to a credit card but with better terms.

Credit Limit: $10,000 to $1,000,000+ Use Cases: Cash flow management, short-term needs, emergency backup, seasonal inventory Terms: Revolving (no set term, but annual review) Interest Rates: 7%-25% on drawn amounts Draw Period: Typically ongoing with annual renewal

How It Works:

• Approved for credit line (say $250,000)

• Draw only what you need, when you need it

• Interest charged only on drawn amount

• Repay and credit becomes available again

• Minimum payment or interest-only options

Types:

1. Secured LOC - Backed by collateral (real estate, inventory, equipment)

2. Unsecured LOC - Based on creditworthiness, no collateral

3. Inventory LOC - Secured by inventory specifically

Who Should Consider Business Lines of Credit:

• Established businesses with strong credit

• Businesses needing flexible access to capital

• Companies with occasional cash flow gaps

• Businesses wanting "insurance policy" for emergencies

• Seasonal businesses needing temporary working capital

Pros:

• Ultimate flexibility

• Pay interest only on what you use

• Quick access when opportunities arise

• Can pay down and redraw

• Builds business credit

Cons:

• Higher interest rates than term loans

• Requires strong credit/financials

• Annual renewal uncertainty

• Personal guarantee typically required

• May have maintenance fees

Michigan-Specific Insight: Many successful Michigan businesses maintain lines of credit even if not actively drawing—it's cheap insurance. Automotive suppliers use LOCs to manage gaps between material purchases and customer payments. Construction companies use LOCs to cover project costs before progress payments arrive. Service businesses use LOCs to smooth cash flow during growth phases when expenses precede revenue.

7. Merchant Cash Advances (MCAs)

Overview Advance on future credit card sales, repaid through percentage of daily credit card receipts.

Advance Amount: $5,000 to $500,000 Use Cases: Emergency funding, very short-term needs, businesses with credit/qualification challenges Terms: 3-12 months typical Cost: Factor rates of 1.20-1.50+ (highest cost option) Repayment: 10%-20% of daily credit card sales

How It Works:

• Receive lump sum based on credit card processing history

• Small percentage of each day's credit card sales goes to repayment

• Slower sales days = smaller payment

• Busy days = larger payment

• No fixed monthly obligation

Who Should Consider MCAs:

• Restaurants, bars, retail stores with high credit card volume

• Businesses needing emergency funding (equipment breakdown, urgent repair)

• Businesses that can't qualify for traditional financing

• Very short-term needs (< 6 months)

Pros:

• Fastest approval (same day possible)

• Minimal documentation

• Bad credit OK

• Payment tied to sales (automatic protection)

• No collateral required

Cons:

• HIGHEST cost option

• Can create cash flow strain

• Daily ACH can feel aggressive

• May trap businesses in cycle of renewing

• Damages long-term financial health if overused

Michigan-Specific Insight: MCAs should be last resort or very short-term solutions only. However, they do serve a purpose for Michigan restaurants, bars, and retail stores facing emergencies—like a restaurant in Downtown Detroit that needs walk-in cooler replaced immediately or can't operate. Use only when speed trumps cost and you have clear path to repay quickly. Work with reputable providers only—industry has predatory players.

Michigan's Top Business Lenders: Banks vs. Boutique Firms

Understanding who you're borrowing from is as important as understanding what you're borrowing.

Major Banks Operating in Michigan

Huntington National Bank

• Strength: #1 SBA 7(a) lender nationally AND in Michigan

• Focus: Small business, SBA loans

• Loan Range: $50,000 - $5,000,000+

• Speed: 60-90 days typical for SBA

• Best For: SBA loans, established businesses with strong credit

• Consideration: Large bank processes, less personalized service

Comerica Bank

• Strength: Major Michigan presence, strong commercial lending

• Focus: Middle market businesses, commercial loans

• Loan Range: $500,000+

• Best For: Larger businesses, commercial real estate, equipment

• Consideration: Higher minimums, relationship banking focus

Fifth Third Bank

• Strength: Growing Michigan presence, SBA lending

• Focus: Small to mid-size businesses

• Loan Range: $100,000+

• Best For: SBA loans, business expansion

• Consideration: Moderate approval timeline

Chase Bank

• Strength: National resources, multiple products

• Focus: Existing Chase business customers

• Loan Range: Varies widely

• Best For: Businesses banking with Chase already

• Consideration: May favor existing relationships

The State Bank

• Strength: Michigan community bank, local decisions

• Focus: Community businesses, SBA lending

• Loan Range: $50,000 - $5,000,000

• Best For: Businesses wanting local decision-making

• Consideration: Smaller capacity for very large loans

Certified Development Companies (CDCs)

Michigan Certified Development Corporation (MCDC)

• Strength: Largest SBA 504 provider in Michigan

• Focus: SBA 504 loans (commercial real estate, equipment)

• Coverage: All 83 Michigan counties

• Best For: Owner-occupied real estate, major equipment purchases

• Impact: Nearly $900 million in projects since 2014

Oakland County Business Finance Corporation (BFC)

• Strength: 40+ years SBA 504 experience

• Coverage: All of Michigan (despite name)

• Best For: SBA 504 loans for real estate and equipment

Community Development Financial Institutions (CDFIs)

Invest Detroit

• Loan Range: $50,000 - $2,500,000

• Focus: Detroit businesses, underserved entrepreneurs

• Best For: Detroit-based businesses needing support beyond capital

• Consideration: Mission-driven, may have specific qualifying criteria

ProsperUs Detroit

• Loan Range: Up to $50,000

• Focus: Detroit, Hamtramck, Highland Park microloans

• Best For: Small startups, underserved communities

• Rates: 7% interest rate

Detroit Development Fund (DDF)

• Focus: Businesses owned by entrepreneurs of color

• Best For: Minority-owned businesses in Detroit

• Support: Beyond capital—training and consulting

Boutique/Alternative Lenders

LVRG Business Funding

• Strength: Michigan's Business Loan Authority, Detroit-headquartered

• Loan Range: $50,000 - $50,000,000

• Focus: Established businesses, direct lending + bank partnerships

• Speed: Days to weeks (depending on product)

• Best For: Businesses needing speed + expertise, large equipment deals, working capital, SBA loan brokerage

• Unique Value: Boutique service, direct lending capability, access to 25+ elite SBA lenders nationwide, Michigan industry expertise (manufacturing, construction, automotive)

• Track Record: $1B+ funded, 10,000+ businesses served, 20+ years experience

Online/National Lenders

Pros:

• Fast application/approval

• Less stringent requirements

• Technology-enabled process

Cons:

• Higher interest rates (often 20%+)

• Less personalized service

• No local market knowledge

• May have predatory terms

Examples: OnDeck, Kabbage, Bluevine, Fundbox, etc.

How to Choose the Right Lender Type

Choose Major Bank If:

• You have excellent credit (720+)

• You need SBA loan and have time (90+ days)

• You want absolute lowest rates

• You don't mind bureaucracy

Choose Community Bank/Credit Union If:

• You want local decision-making

• You value relationship banking

• Your needs are straightforward

• You're established in community

Choose CDC If:

• You're buying commercial real estate

• You're buying major equipment ($250K+)

• You want SBA 504 benefits

• You have 10%+ down payment

Choose CDFI If:

• You're in Detroit/targeted community

• You're minority/woman-owned

• You need < $50K

• You want mission-driven support

Choose Boutique Lender (like LVRG) If:

• You need speed + expertise

• You want options (not limited to one bank)

• Your situation is unique/complex

• You value relationship + responsiveness

• You need $50K-$50M range

• You're in specialized industry (construction, manufacturing)

Choose Online Lender If:

• You need money in 24-48 hours

• You have credit challenges

• You need < $250K

• You're OK with higher cost for convenience

How to Qualify for a Business Loan in Michigan

Understanding qualification criteria helps you prepare properly and choose the right loan products.

Universal Qualifying Factors

Credit Score

• Personal Credit: Most lenders pull personal credit of business owners

  • 680+: Excellent - qualify for most products

  • 650-679: Good - qualify for many products

  • 620-649: Fair - limited options, higher rates

  • <620: Poor - very limited options, alternative lenders only

• Business Credit: Dun & Bradstreet PAYDEX score, Experian, Equifax business scores

  • Important for larger loans ($500K+)

  • Built through paying business vendors on time

  • Less critical for smaller loans

Time in Business

• 2+ years: Considered established, best rates

• 1-2 years: Eligible for some products

• <1 year: Very limited options (SBA microloans, alternative lenders)

Revenue

• SBA Loans: Typically need $250K+ annual revenue

• Working Capital: Often need $300K+ annual revenue

• Equipment Financing: May be flexible if equipment supports revenue growth

Cash Flow/Profitability

• Must show ability to service debt

• Debt Service Coverage Ratio (DSCR) typically 1.25x minimum

  • Formula: (Net Operating Income) / (Total Debt Service)

  • Example: $150K net income / $100K annual debt payments = 1.5 DSCR

Collateral

• Real Estate: Strongest collateral, may get 80% LTV

• Equipment: Good collateral, 70-80% LTV typical

• Inventory: OK collateral, 50-70% advance rate

• Accounts Receivable: OK collateral, 70-85% advance rate

• Unsecured: Possible for working capital if strong credit/revenue

Personal Guarantee

• Required for virtually all small business loans

• Any owner with 20%+ ownership typically signs

• Means you're personally liable if business can't pay

Product-Specific Requirements

SBA 7(a) Loans:

• 2+ years in business (preferred)

• 680+ credit score

• Profitable or path to profitability

• Can show use of funds

• No other better financing options (SBA is "lender of last resort")

• Tried conventional bank and been declined (sometimes)

SBA 504 Loans:

• Owner-occupied property (51%+ occupancy)

• Creating or retaining jobs

• 10% down payment (15% for new businesses)

• Can cover up to 40% of project with 504 financing

Equipment Financing:

• Equipment must be business-use

• Equipment must have resale value

• 640+ credit score typical

• Down payment 10-20% (sometimes 0%)

Working Capital:

• 6+ months in business minimum

• $25K+ monthly revenue

• 600+ credit score (alternative lenders)

• Active business bank account

Commercial Real Estate:

• 680+ credit score

• 20-30% down payment

• Property appraisal required

• Environmental assessment may be required

• Owner-occupied or investment property

Documentation You'll Need

Basic Package (All Loans):

• Business tax returns (2 years)

• Personal tax returns of owners (2 years)

• Bank statements (3-6 months)

• Profit & Loss statement (current year)

• Balance sheet (current)

• Business debt schedule (all existing loans)

• Business plan or loan use summary

Additional for SBA Loans:

• Personal financial statement

• Resume/business history

• Copy of business lease or deed

• Articles of incorporation/organization

• Business licenses

• Franchise agreement (if applicable)

• Detailed use of funds breakdown

Additional for Real Estate:

• Purchase agreement

• Property appraisal

• Phase 1 Environmental Assessment

• Property insurance quotes

• Rent roll (if multi-tenant)

Additional for Equipment:

• Equipment quotes/invoices

• Equipment specs/photos

• Proof of insurance quotes

Michigan-Specific Considerations

Automotive Industry Suppliers:

• Lenders understand payment terms (60-90 days)

• May look at contracts/POs differently

• Working capital more readily available

• Equipment financing for automation common

Manufacturing:

• Equipment financing very accessible

• Lenders understand machinery valuation

• May consider ongoing customer contracts

• Real estate opportunities strong (lower cost than coasts)

Construction:

• Seasonal cash flow understood

• Equipment critical (easier approval)

• Personal credit may weigh more

• Contractor licenses/bonding considered

Restaurants/Hospitality:

• Higher risk profile (more scrutiny)

• SBA loans available but competitive

• Equipment financing for kitchen/furniture

• Revenue-based financing common

• Detroit/Grand Rapids markets stronger than rural

Agriculture:

• FSA loans available (Farm Service Agency)

• Equipment financing for tractors/equipment

• Seasonal cash flow understood

• Michigan's diverse ag economy (cherries, apples, corn, dairy)

The Michigan Business Loan Application Process

Understanding what to expect makes the process smoother and faster.

Step 1: Self-Assessment (Before Applying)

Ask Yourself:

• How much do I need? (Be specific)

• What will I use it for? (Specific use of funds)

• How will this make/save money? (ROI justification)

• Can I afford the payments? (Conservative cash flow analysis)

• What's my credit score? (Check before applying)

• What can I offer as collateral?

• How quickly do I need funds?

Red Flags to Address First:

• Credit score below 640

• Recent late payments/collections

• Tax liens or judgments

• Operating losses without clear plan

• Maxed-out existing credit

• No business tax returns filed

Tip: Fix what you can before applying. A few months of on-time payments can raise credit score significantly.

Step 2: Choose the Right Loan Type

Based on your needs, timeline, and qualifications:

If you need...

• $5M+ for real estate → SBA 504 or conventional commercial loan

• $500K+ for equipment → Equipment financing or SBA 7(a)

• $100K-$500K working capital → Working capital term loan or SBA 7(a)

• $25K-$100K quickly → Revenue-based financing or MCA

• Ongoing flexible access → Business line of credit

If you have...

• Perfect credit + time → SBA loan (best rates)

• Good credit + 2 years business → Most options available

• Fair credit + revenue → Alternative/working capital loans

• Poor credit + revenue → Revenue-based, MCA (higher cost)

• Startup (no history) → Very limited; consider microloans, CDFI

Step 3: Choose Your Lender/Partner

Option A: Direct to Bank

• Pros: No middleman

• Cons: Limited to that bank's appetite/programs, may get declined when could be approved elsewhere

• Best For: Existing banking relationship, straightforward deals

Option B: Work with Broker/Boutique Firm (like LVRG)

• Pros: Access to multiple lenders, expert guidance, higher approval odds, potentially better terms

• Cons: None if reputable (you pay the lender, not the broker for most products)

• Best For: Complex situations, wanting options, needing speed + expertise

Option C: Multiple Applications

• Pros: Can compare offers

• Cons: Multiple credit pulls can hurt score, time-consuming, overwhelming

• Best For: Very established business with perfect credit

LVRG's Approach: We work as your advocate, accessing our network of 25+ elite SBA lenders and institutional capital partners. You apply once, we present your deal to the lenders most likely to approve and offer best terms. No hard credit pull until you choose to move forward with a specific lender.

Step 4: Prepare Your Application Package

Document Checklist: □ Completed application form □ Business tax returns (2 years) □ Personal tax returns of all 20%+ owners (2 years) □ Bank statements (3-6 months) □ Current P&L (Profit & Loss) statement □ Current balance sheet □ Business debt schedule □ Use of funds explanation (detailed) □ Business plan or growth plan □ Personal financial statement □ Additional docs based on loan type

Pro Tips:

• Organize digitally in one folder

• Name files clearly (2023_Business_Tax_Return.pdf)

• Ensure all pages are clear/readable

• Don't hide anything (lenders will find it)

• Be honest about challenges and how you'll address them

Step 5: Application Submission

What Happens:

1. Initial review (same day typically)

2. Follow-up questions/request for additional docs

3. Full underwriting review (1-30 days depending on loan type)

4. Approval or decline (or "approved with conditions")

Timeline by Product:

• Working Capital (Alternative): 24-72 hours

• Equipment Financing: 3-7 days

• Revenue-Based Financing: 2-5 days

• Conventional Bank Loan: 2-4 weeks

• SBA 7(a) Loan: 4-8 weeks (sometimes faster with preferred lenders)

• SBA 504 Loan: 6-12 weeks

Step 6: Underwriting & Approval

What Lenders Are Doing:

• Pulling credit reports (personal and business)

• Verifying bank statements and tax returns

• Analyzing cash flow and ability to repay

• Appraising/inspecting collateral

• Checking corporate documents and business registration

• Ordering business background check

• Verifying employment/income sources

Why Deals Get Declined:

• Credit Issues: Undisclosed late payments, collections, judgments

• Cash Flow: Can't support debt payments

• Inconsistencies: Tax returns don't match bank statements

• Collateral: Insufficient to secure loan

• Use of Funds: Not acceptable for loan program

• Documentation: Missing or incomplete

If Declined:

• Ask why specifically

• Ask what would make you approvable

• Consider alternative lender/product

• Work on issues and reapply in 3-6 months

Step 7: Closing & Funding

What Happens:

• Loan documents prepared

• Review documents carefully (ask questions!)

• Sign closing documents

• UCC filings, lien recordings (if secured)

• Insurance verification

• Final conditions cleared

• Funding wired to your bank account

Timeline:

• Can be same day (working capital)

• Typically 1-3 days after approval

• 7-14 days for complex deals (SBA, real estate)

What to Verify Before Signing:

• Loan amount matches approval

• Interest rate matches approval

• Fees disclosed and reasonable

• Repayment terms clear

• No surprises in fine print

• Understand personal guarantee scope

• Prepayment penalty (if any)

Step 8: Post-Funding

Your Responsibilities:

• Make payments on time (set up autopay)

• Maintain insurance (life, property, liability)

• Provide annual financials (some loans require)

• Don't default on other obligations

• Use funds as stated in application

• Communicate proactively if issues arise

Build Relationship with Lender:

• Pay early occasionally

• Share positive business developments

• Keep them updated on growth

• Consider them for future needs

Michigan-Specific Loan Programs and Resources

Beyond conventional and SBA loans, Michigan offers unique programs most business owners don't know about.

State of Michigan Programs

Michigan Small Business Relief Program

• Focus: COVID-related, but model for future relief programs

• Learn: Shows state's commitment to small business support

• Contact: Michigan Economic Development Corporation (MEDC)

Michigan Business Development Program

• Loan/Grant Amounts: Up to $10 million

• Focus: Performance-based grants/loans for job creation

• Eligibility: Businesses creating jobs or making investments in Michigan

• Contact: MEDC - (517) 241-1400

Small Business P2 Loans (Pollution Prevention)

• Loan Amount: Up to $400,000

• Interest Rate: 5% or less

• Focus: Projects reducing waste, increasing sustainability, conserving energy

• Structure: 50% private lender, 50% state funding

• Contact: Michigan Department of Environment, Great Lakes, and Energy (EGLE)

• Michigan Context: Ideal for manufacturers upgrading to energy-efficient equipment

State Small Business Credit Initiative (SSBCI)

• Federal program administered by states

• Capital for debt and equity investment programs

• Contact: Michigan Economic Development Corporation

Local/Regional Programs

Motor City Match (Detroit)

• Grant Amount: Up to $100,000

• Focus: New and expanding Detroit businesses

• Awards: Quarterly distributions

• Includes: Real estate matching, grants for building improvements

• Website: motorcitymatch.com

Motor City Restore (Detroit)

• Grant Amount: Up to $500,000 quarterly

• Focus: Commercial storefront improvements

• Structure: Matching grants (50% of project costs)

• Best For: Detroit businesses improving physical locations

Detroit Revolving Loan Funds

• Detroit Industrial Revolving Loan Fund (DIRLF): Fixed-asset financing

• Resident/Real Estate Loan Fund: Property rehab for Detroit residents

• Focus: Detroit-based businesses and residents

• Administrator: Detroit Economic Growth Corporation (DEGC)

Oakland County Business Finance Corporation

• SBA 504 loans

• Statewide coverage despite name

• 40+ years experience

Networking & Support Organizations

Michigan Small Business Development Center (SBDC)

• Free counseling and training

• Help with business plans, loan applications

• Multiple offices statewide

• Website: michigansbc.org

SCORE Michigan

• Free mentoring from experienced business executives

• Help with business planning, loan prep

• Multiple chapters across Michigan

Detroit Regional Chamber of Commerce

• Networking, advocacy, resources

• Connects businesses with lenders/partners

Tech Town Detroit

• Small business incubator/accelerator

• Focus: Technology and retail entrepreneurs

• Resources: Coworking, programs, capital connections

Build Institute Detroit

• Entrepreneurship education

• Community support network

• Resource connections

Industry-Specific Resources

Michigan Manufacturing Technology Center (MMTC)

• Technical assistance for manufacturers

• Help with efficiency, automation

• Can connect to financing options

Michigan Agriculture Environmental Assurance Program (MAEAP)

• Support for farms/agriculture

• Can connect to financing for sustainability projects

Michigan Economic Development Corporation (MEDC)

• Master resource for all state programs

• Business attraction and support

• Venture capital connections

• Website: michiganbusiness.org

How to Access These Programs

1. Start with MEDC: One-stop shop for state programs - (888) 522-0103

2. Contact Local Economic Development: Every county/city has economic development office

3. Check with SBDC: Free consultation to identify programs - michigansbc.org

4. Industry Associations: Often know sector-specific programs

5. Work with Knowledgeable Lender: Firms like LVRG can navigate state/federal programs

Pro Tip: Many Michigan programs can be stacked with conventional/SBA loans to reduce your out-of-pocket costs.

Industry-Specific Financing in Michigan

Michigan's diverse economy means specialized financing strategies by industry.

Manufacturing

Michigan Context:

• 600,000+ manufacturing jobs in Michigan

• $43 billion in manufacturing GDP

• #2 state for manufacturing jobs as % of workforce

• Strong automotive, aerospace, food processing, medical device sectors

Financing Needs:

• Equipment: CNC machines, robotics, automation, production lines

• Working Capital: Raw materials, manage payment terms from OEMs

• Real Estate: Manufacturing facilities, warehouses

• Growth Capital: Capacity expansion, new product lines

Best Financing Options:

1. Equipment Financing: $100K-$50M+ for machinery (LVRG specializes in large-ticket manufacturing equipment)

2. SBA 504: Owner-occupied facilities

3. Working Capital: Bridge automotive payment terms (60-90 days)

4. Asset-Based Lending: A/R and inventory financing

Michigan-Specific Considerations:

• Lenders understand automotive supply chain payment terms

• Equipment has strong resale value (well-developed used market)

• Contracts with OEMs strengthen applications

• Michigan has infrastructure for large equipment deals

Success Story: Sterling Heights manufacturer needed $2.5M for automated production line to fulfill GM contract. Equipment financing structured at 6.5% over 7 years. ROI achieved in 18 months through increased capacity and reduced labor costs.

Construction & Contracting

Michigan Context:

• Detroit redevelopment boom

• Infrastructure investment (roads, bridges)

• Residential construction strong in Grand Rapids, Ann Arbor, suburban Detroit

• Seasonal considerations (winter challenges)

Financing Needs:

• Equipment: Excavators, bulldozers, trucks, cranes, specialized tools

• Working Capital: Materials, payroll between progress payments

• Bonding Support: Performance and payment bonds

• Cash Flow Management: Seasonal fluctuations

Best Financing Options:

1. Equipment Financing: $500K-$100M for heavy equipment (LVRG specializes in construction equipment financing)

2. Working Capital: Bridge project funding gaps

3. Lines of Credit: Seasonal cash flow management

4. Invoice Factoring: Convert A/R to immediate cash

Michigan-Specific Considerations:

• Lenders understand seasonal patterns

• Strong equipment resale market in Michigan

• Detroit construction boom creates opportunities

• MDOT contracts carry weight with lenders

Success Story: Lansing excavation contractor needed $850K for three new excavators to expand capacity. Equipment financing at 7.2% with seasonal payment structure (lower payments Dec-Feb). Business grew revenue 45% in first year.

Healthcare & Medical Practices

Michigan Context:

• Major healthcare systems (Beaumont, Henry Ford, U of M Health)

• Physician practices, dental offices, med spas throughout state

• Growing specialty medicine and elective procedures

• Medical device manufacturing strong

Financing Needs:

• Medical Equipment: Imaging (MRI, CT), surgical, dental, aesthetic

• Practice Acquisitions: Buying into or buying out partners

• Real Estate: Medical office buildings, surgery centers

• Working Capital: Manage insurance reimbursement delays

Best Financing Options:

1. Equipment Financing: Medical equipment (LVRG does medical equipment $500K-$50M+)

2. SBA 7(a): Practice acquisitions, real estate

3. SBA 504: Owner-occupied medical buildings

4. Working Capital: Bridge insurance payment cycles

Michigan-Specific Considerations:

• Medical equipment holds value well

• Michigan has strong medical device industry (support)

• Lenders understand insurance reimbursement cycles

• Practice valuations well-established in Michigan market

Success Story: Ann Arbor medical practice group acquired $3.2M imaging center using SBA 7(a) loan (25% down, 10-year term at prime + 2.75%). Consolidated referral network increased utilization by 60% in year one.

Restaurants & Hospitality

Michigan Context:

• Detroit restaurant scene renaissance

• Grand Rapids craft brewery boom

• Tourism-driven restaurants (Traverse City, Mackinac, Harbor Country)

• Automotive hospitality (hotels near factories/suppliers)

Financing Needs:

• Equipment: Kitchen equipment, furniture, POS systems, renovations

• Working Capital: Seasonal cash flow (winter slowdowns)

• Build-outs: New locations, expansions

• Franchise Fees: Chain restaurants

Best Financing Options:

1. SBA 7(a): Full restaurant financing (but competitive)

2. Equipment Financing: Kitchen equipment, furniture

3. Revenue-Based Financing: Seasonal cash flow management

4. Merchant Cash Advance: Emergency only (equipment breakdown)

Michigan-Specific Considerations:

• Tourist areas have extreme seasonality (lenders understand)

• Detroit and Grand Rapids markets strong for restaurants

• Craft brewery financing available (equipment + working capital)

• Franchise restaurants easier to finance (proven model)

Success Story: Downtown Detroit restaurant needed $225K for kitchen expansion and patio addition. Combined equipment financing ($150K) + revenue-based financing ($75K for working capital). Revenue-based payments lower in winter, higher in summer. Expansion increased seating 40%, revenue up 65%.

Retail

Michigan Context:

• Traditional retail challenged (like everywhere)

• Strong niche retail (Michigan-made products, local focus)

• E-commerce + brick-and-mortar hybrid models

• Tourist retail strong (Northern Michigan, Mackinac Island)

Financing Needs:

• Inventory: Seasonal purchasing, new products

• Store Build-outs: New locations, refreshes

• E-commerce: Website, fulfillment, marketing

• Working Capital: Bridge seasonal fluctuations

Best Financing Options:

1. Inventory Financing: Line of credit secured by inventory

2. Working Capital: Seasonal purchasing

3. Revenue-Based Financing: Flexible repayment

4. SBA 7(a): Real estate, major expansion

Michigan-Specific Considerations:

• Tourism retail has extreme seasonality (April-October busy)

• Michigan-made products have strong local support

• Lenders understand e-commerce + retail hybrid

• Lower occupancy costs than coastal markets

Success Story: Traverse City retail store (Michigan products) needed $175K for summer inventory and expanded e-commerce. Revenue-based financing provided flexibility—payments low in winter, higher in summer tourism season. E-commerce grew 200% providing year-round revenue diversification.

Automotive Industry

Michigan Context:

• 600+ Tier 1 & 2 automotive suppliers in Michigan

• EV transition creating investment needs

• 60-90 day payment terms from OEMs standard

• Global competition requiring automation

Financing Needs:

• Equipment: Robotics, automation, inspection systems

• Working Capital: Bridge 60-90 day OEM payment terms

• Capacity Expansion: New product launches

• Technology: EV-related tooling and processes

Best Financing Options:

1. Equipment Financing: Automation and robotics

2. Working Capital: Bridge payment terms

3. Asset-Based Lending: A/R financing

4. SBA 504: Manufacturing facility expansion

Michigan-Specific Considerations:

• Lenders understand OEM payment cycles

• Long-term contracts strengthen applications

• IATF 16949 certification carries weight

• EV transition investment understood and supported

Success Story: Warren automotive supplier needed $4.5M for automated assembly line serving Ford EV program. Equipment financing at 5.9% over 7 years. OEM contract provided payment certainty. ROI under 2 years through labor reduction and capacity increase.

Geographic Considerations: Detroit vs. Grand Rapids vs. Outstate

Michigan is not monolithic—financing considerations vary by region.

Metro Detroit (Wayne, Oakland, Macomb Counties)

Business Climate:

• Economic resurgence and revitalization

• Strong automotive, manufacturing, technology presence

• Major corporate headquarters

• Lower commercial real estate costs than coastal cities

Financing Advantages:

• More lender options (national + local)

• Larger deal capacity ($1M+ common)

• Strong professional services support (CPAs, attorneys familiar with financing)

• Detroit-specific programs (Motor City Match, Invest Detroit)

Financing Considerations:

• Some neighborhoods still challenged (due diligence on real estate locations)

• Economic history may cause lenders to scrutinize more

• However, comeback story is compelling to lenders now

Industries Getting Funded:

• Automotive suppliers (Warren, Sterling Heights)

• Manufacturing (all three counties)

• Technology (Downtown Detroit, Ann Arbor corridor)

• Healthcare (major systems)

• Restaurants/hospitality (Detroit renaissance)

LVRG Presence: Headquartered at 615 Griswold St, Downtown Detroit—deep market knowledge and relationships

Grand Rapids

Business Climate:

• Diverse economy (manufacturing, healthcare, hospitality)

• Strong job growth and population growth

• #2 city in Michigan

• Young, educated workforce

• Lower cost of living

Financing Advantages:

• Multiple regional banks with local decision-making

• SBA lending very active

• Medical device manufacturing cluster

• Craft brewery financing ecosystem

• Commercial real estate appreciation strong

Financing Considerations:

• Smaller deal capacity than Detroit (but growing)

• Fewer boutique/alternative lenders

• May need to look to Detroit or national lenders for $2M+ deals

Industries Getting Funded:

• Medical device manufacturing

• Office furniture (Herman Miller legacy)

• Craft breweries and hospitality

• Healthcare services

• Professional services

Ann Arbor

Business Climate:

• University of Michigan drives economy

• Technology and medical device hub

• High education levels

• Higher cost of living

• Research and innovation focus

Financing Advantages:

• Technology lending (VC, debt)

• Medical device expertise

• University partnerships/spinoffs attractive to lenders

• Strong professional services support

Financing Considerations:

• Higher real estate costs

• Competitive market

• Student-driven businesses (restaurants, retail) face seasonal challenges

Industries Getting Funded:

• Medical devices and biotech

• Software and technology

• University spin-offs

• Healthcare services

• Professional services

Lansing

Business Climate:

• State capital (government jobs)

• General Motors presence (Grand River Plant)

• Diverse manufacturing base

• Affordable cost of living/business

Financing Advantages:

• State employee base provides economic stability

• Manufacturing heritage

• Multiple banks serving market

• Lower real estate costs

Financing Considerations:

• Smaller market than Detroit/Grand Rapids

• May need Detroit lenders for large deals

Industries Getting Funded:

• Manufacturing and automotive

• Government contractors

• Healthcare

• Professional services supporting state government

Upper Peninsula

Business Climate:

• Natural resources (timber, mining)

• Tourism and recreation

• Sparse population

• Challenging winters

Financing Advantages:

• Tourism financing understood

• Natural resource lending available

• Lower competition

• USDA loans available (rural)

Financing Considerations:

• Limited local lending capacity

• Seasonality extreme

• May need to work with downstate lenders

• Population base smaller

Industries Getting Funded:

• Tourism and hospitality

• Natural resources

• Healthcare (critical access)

• Construction

Outstate/Rural Michigan

Business Climate:

• Agriculture prominent

• Small town manufacturing

• Tourism in some areas (Traverse City, Harbor Country)

• Population challenges

Financing Advantages:

• USDA rural business loans

• FSA farm loans

• Agricultural lending infrastructure

• Lower real estate costs

Financing Considerations:

• Local banks may have limited capacity

• May need regional or Detroit lenders

• Seasonal considerations (agriculture, tourism)

• Population trends challenging in some areas

Industries Getting Funded:

• Agriculture

• Agricultural processing

• Tourism

• Manufacturing

• Healthcare

Geographic Strategy Recommendations

If You're in Metro Detroit:

• You have access to most lender types locally

• Can choose boutique + bank + online

• LVRG = local with national reach

If You're in Grand Rapids/Ann Arbor/Lansing:

• Regional banks good for <$1M

• Consider Detroit-based boutique lenders (like LVRG) for $1M+

• SBA options strong locally

• Online lenders available

If You're in U.P./Rural Michigan:

• Start with local bank relationships

• Consider USDA programs

• May need Detroit lenders for larger amounts

• LVRG works statewide—we come to you or work remotely

Bottom Line: Geography matters less than it used to. Technology enables statewide and nationwide lending. However, working with lenders who understand Michigan's economy and your specific region still provides advantages.

Common Mistakes Michigan Business Owners Make

Learn from others' mistakes—avoid these common pitfalls.

Mistake #1: Waiting Until It's an Emergency

The Problem: Seeking financing when you're desperate puts you at a disadvantage. Lenders sense desperation and offer worse terms (or decline).

Why It Happens:

• "I'll deal with it when I need it"

• Optimism bias (assuming sales will materialize)

• Fear of debt/monthly payments

The Fix:

• Apply for financing when you don't urgently need it

• Establish lines of credit before you need them

• Maintain relationship with lender even when not borrowing

Michigan Example: Detroit contractor waits until equipment breaks down to seek financing. Gets declined by banks (too quick), forced into merchant cash advance at 1.40 factor rate. Costs business $40,000 extra vs. equipment financing obtained proactively.

Mistake #2: Not Checking Credit First

The Problem: Applying for financing without knowing your credit score leads to unpleasant surprises and wasted time.

Why It Happens:

• Assume credit is fine

• Don't want to know (fear)

• Don't realize business credit exists

The Fix:

• Check personal credit before applying (free at annualcreditreport.com)

• Sign up for credit monitoring

• Check business credit (Dun & Bradstreet, Experian Business)

• Fix errors BEFORE applying (can take 30-60 days)

Michigan Example: Grand Rapids manufacturer discovers 4-year-old medical collection (already paid) tanking credit score. Fixes before applying—goes from 620 to 690, saves 3% on interest rate = $30,000+ over loan life.

Mistake #3: Not Shopping Around

The Problem: Accepting first offer without comparing means potentially leaving better terms on the table.

Why It Happens:

• Time pressure

• Loyalty to existing bank

• Don't know other options exist

• Don't understand differences

The Fix:

• Get 2-3 competitive offers if possible

• Work with broker who can access multiple lenders

• Compare: rate, term, fees, prepayment penalty, total cost

Michigan Example: Ann Arbor medical practice offered SBA loan at Prime + 3.75% from local bank. LVRG connected them with elite SBA lender at Prime + 2.25%, saved $127,000 in interest over 10 years on $1M loan.

Mistake #4: Choosing Based Only on Interest Rate

The Problem: Focusing only on interest rate ignores other factors that affect total cost and fit.

Why It Happens:

• Rate is easy to compare

• Seems like most important factor

• Don't understand fees, terms, prepayment penalties

The Fix:

• Calculate total cost of financing (rate + fees + term)

• Consider: speed, flexibility, relationship, prepayment options

• Compare apples to apples

Example:

• Option A: $200K at 8% for 3 years = Total interest $26,000

• Option B: $200K at 6% for 5 years = Total interest $33,000 (Lower rate but longer term = more total interest paid)

Michigan Example: Lansing retailer chooses "7% equipment financing" over "9% LVRG option." But 7% option has: 3-year balloon payment (refinance risk), prepayment penalty (24 months interest), hidden fees ($8,000). LVRG option total cost actually lower despite higher rate.

Mistake #5: Not Preparing Documentation

The Problem: Incomplete or disorganized documentation slows approval, frustrates lenders, can lead to decline.

Why It Happens:

• Procrastination

• Not knowing what's needed

• Disorganized records

• Fear/shame about situation

The Fix:

• Request complete list of required docs upfront

• Organize digitally before starting

• Ensure tax returns match bank statements

• Be honest about issues upfront

Michigan Example: Sterling Heights manufacturer submits partial documentation, takes 6 weeks of back-and-forth. Competitor gets financed first, wins the contract. Lesson: preparation = speed = competitive advantage.

Mistake #6: Hiding Problems

The Problem: Not disclosing issues (bad credit, collections, tax liens) upfront wastes everyone's time and damages credibility.

Why It Happens:

• Embarrassment

• Hope lender won't find it

• Don't think it's relevant

The Fix:

• Full disclosure upfront

• Explain context and what you've done to fix it

• Show current stability and momentum

• Lenders respect honesty

Michigan Example: Detroit restaurant owner doesn't mention tax lien. Lender discovers during underwriting, declines due to non-disclosure (not the lien itself). Being upfront could have resulted in approval with higher rate or additional collateral.

Mistake #7: Not Reading the Fine Print

The Problem: Signing documents without fully understanding terms leads to nasty surprises.

Common Surprises:

• Prepayment penalties (can't pay off early without penalty)

• Personal guarantee scope (affects personal assets)

• Default provisions (what triggers default beyond late payment)

• Arbitration clauses (can't sue, must arbitrate disputes)

• Confession of judgment (lender can take assets without going to court)

The Fix:

• Read everything carefully

• Ask questions about anything unclear

• Have attorney review if large amount ($500K+)

• Negotiate unfavorable terms before signing

Michigan Example: Warren contractor signs MCA agreement with daily ACH of 18% of deposits. Business has 2 slow months, defaults, lender takes 18% of EVERY deposit until $75,000 paid. Can't pay suppliers, business nearly fails. Could have negotiated weekly vs. daily payments.

Mistake #8: Taking Too Little

The Problem: Borrowing less than needed to "save on interest" often backfires—need to apply again (more time, costs, energy).

Why It Happens:

• Fear of debt

• Optimism about revenue

• Wanting lower payment

The Fix:

• Calculate realistic need (+ 20% buffer)

• One larger loan often better than two smaller

• Consider: what if things take longer than expected?

Michigan Example: Grand Rapids manufacturer borrows $400K for equipment, not $500K recommended. Equipment arrives late (supply chain), needs working capital to bridge gap. Has to scramble for $100K working capital at much higher rate. Should have borrowed $500K originally.

Mistake #9: Ignoring Cash Flow Impact

The Problem: Not accurately projecting cash flow impact of loan payments leads to unexpected strain.

Why It Happens:

• Optimistic sales projections

• Not accounting for taxes, seasonality

• Focus on getting approved, not ongoing management

The Fix:

• Conservative cash flow projections

• Account for slow months/seasonality

• Ensure 1.25x DSCR minimum (preferably 1.5x)

• Build payment into monthly budget before applying

Michigan Example: Traverse City resort borrows using summer revenue projections, doesn't account for 6 months of low winter revenue. Struggles with payments November-April, damages banking relationship. Should have structured with seasonal payment option.

Mistake #10: Not Having a Relationship Lender

The Problem: Transactional approach (only contact lender when need money) means starting from scratch each time.

Why It Happens:

• Don't see value in relationship

• Busy running business

• Previous bad bank experiences

The Fix:

• Choose lender you want to work with long-term (like LVRG)

• Keep them updated quarterly (5-minute call)

• Introduce them to your business (facility tour)

• Make them your first call for any financing need

Benefits:

• Faster approvals next time (already know you)

• Better terms (loyalty, track record)

• Advice beyond lending

• Advocate during tough times

Michigan Example: Detroit manufacturer has 10-year relationship with LVRG. When COVID hits, LVRG proactively reaches out, helps navigate PPP, provides bridge financing, connects with customers also struggling. Business survives and thrives—relationship made the difference.

How to Choose the Right Business Loan for Your Michigan Company

With so many options, how do you choose? Follow this decision framework.

Step 1: Define Your Need

Ask:

• How much do I need? (Be specific, add 15% buffer)

• What will I use it for? (Equipment, working capital, real estate, acquisition)

• How quickly do I need it? (Today, this week, this month, this quarter)

• How will this make or save money? (ROI justification)

• What's my repayment plan? (Where will payment come from)

Step 2: Assess Your Qualifications

Personal Credit Score:

• 720+: Excellent → Full range of options

• 680-719: Good → Most options available

• 640-679: Fair → Some restrictions, higher rates

• 600-639: Poor → Alternative lenders only, expensive

• <600: Very poor → Merchant cash advance or wait until improved

Time in Business:

• 3+ years: Considered established

• 2-3 years: Good options

• 1-2 years: Limited but available

• <1 year: Very limited (microloans, alternative only)

Annual Revenue:

• $2M+: Full range of options

• $500K-$2M: Most options available

• $250K-$500K: Working capital, equipment, some SBA

• $100K-$250K: Alternative lenders, microloans

• <$100K: Microloans, CDFI only

Profitability:

• Profitable: Full options

• Break-even: Some options, higher scrutiny

• Operating loss: Very limited unless clear turnaround plan

Collateral Available:

• Real estate: Best collateral, lowest rates

• Equipment: Good collateral

• Inventory/A/R: OK collateral

• Nothing: Unsecured options (higher rates)

Step 3: Evaluate Speed vs. Cost Trade-off

Speed-Cost Spectrum:

The faster you need funding, the more it costs. Here's how financing options rank from fastest to slowest:

FASTEST (Same Day):

• Merchant Cash Advance - Cost: Highest (1.30-1.50 factor) - Requirements: Revenue only

VERY FAST (2-3 Days):

• Revenue-Based Financing - Cost: High (1.15-1.35 factor) - Requirements: Revenue + 600 credit score

FAST (1 Week):

• Working Capital Loan - Cost: Medium-High (12-30% APR) - Requirements: Revenue + 640 credit score

MODERATE (2 Weeks):

• Equipment Financing - Cost: Medium (6-15% APR) - Requirements: 640 credit score + equipment

MODERATE-SLOW (2-4 Weeks):

• Bank Term Loan - Cost: Low (6-10% APR) - Requirements: Excellent credit + complete documentation

SLOW (6-8 Weeks):

• SBA 7(a) Loan - Cost: Very Low (Prime Rate + 2-3%) - Requirements: Strong credit + time + extensive documentation

SLOWEST (8-12 Weeks):

• SBA 504 Loan - Cost: Lowest (5-8% fixed rate on CDC portion) - Requirements: Best credit + time + extensive documentation

The Rule: The faster you need money, the more it costs. Plan ahead to access lower-cost options.

Step 4: Match Need to Product

I Need To...

Buy Equipment ($50K-$5M+)

• ✅ Equipment Financing (LVRG: $100K-$50M+)

• ✅ SBA 7(a) if part of larger package

• ❌ Working capital (wrong product)

Purchase Commercial Real Estate

• ✅ SBA 504 (10% down, 25-year fixed)

• ✅ SBA 7(a) (more flexibility on use)

• ✅ Conventional commercial loan (20-30% down)

• ❌ Working capital (wrong product, too short-term)

Cover Payroll, Inventory, Operational Expenses

• ✅ Working Capital Loan (term loan)

• ✅ Line of Credit (draw as needed)

• ✅ Revenue-Based Financing (flexible repayment)

• ⚠️ Merchant Cash Advance (expensive, use sparingly)

Acquire a Business

• ✅ SBA 7(a) (designed for acquisitions)

• ✅ Seller financing + conventional loan hybrid

• ❌ Working capital (not intended use)

Rapid Growth Capital

• ✅ Working Capital term loan

• ✅ Line of Credit

• ✅ Revenue-Based if revenue growing

• ⚠️ Multiple small amounts vs. one larger amount

Seasonal Cash Flow

• ✅ Line of Credit (draw in slow months, repay in busy)

• ✅ Revenue-Based (payments flex with revenue)

• ❌ Traditional term loan (fixed payments hurt in slow months)

Step 5: Consider Your Michigan-Specific Situation

If You're in Automotive Supply Chain:

• Working capital critical (bridge 60-90 day payment terms)

• Equipment financing for automation

• Asset-based lending using A/R

• Lenders who understand automotive are critical

If You're in Manufacturing:

• Equipment financing primary need

• SBA 504 for facility ownership

• Working capital for growth

• Large-ticket lenders like LVRG essential ($500K+ equipment)

If You're in Construction:

• Equipment financing with seasonal flexibility

• Lines of credit for project cash flow

• Invoice factoring for immediate cash

• Lenders understanding seasonality

If You're in Hospitality/Restaurant:

• Equipment financing for kitchen, furniture

• Revenue-based for flexible working capital

• SBA 7(a) if strong franchise or concept

• Seasonal considerations for tourism areas

If You're in Technology/Startup:

• Traditional loans difficult

• Consider venture capital/venture debt

• Revenue-based if revenue traction

• ID Ventures, Michigan Rise for Michigan tech

Step 6: Decide on Direct Bank vs. Broker/Boutique Firm

Go Direct to Bank If:

• You have perfect credit (720+)

• You have existing relationship

• Your need is straightforward

• You have time (60-90 days OK)

• You're confident you'll be approved

Work with Broker/Boutique (like LVRG) If:

• You want options from multiple lenders

• Your situation is unique/complex

• You value expert guidance

• You want speed + competitive terms

• You're not certain about approval

• You need $50K-$50M range

• You're in specialized industry

Why LVRG:

• Access to 25+ elite SBA lenders (not just one bank)

• Direct lending capability + institutional partnerships

• 20+ years Michigan market expertise

• $1B+ funded experience

• Specialization in equipment ($500K-$100M+), working capital, SBA

• White-glove service at boutique scale

• You pay the lender, not us (in most cases)

Step 7: Calculate True Cost

Don't just look at interest rate—calculate Total Cost of Capital:

Components:

1. Interest Paid: Rate × Amount × Time

2. Origination Fees: Upfront fees (1-5% of loan)

3. SBA Guarantee Fee: (1.5-3.75% for SBA loans)

4. Prepayment Penalty: Cost to pay off early (if applicable)

5. Maintenance Fees: Annual/monthly fees (lines of credit)

6. Opportunity Cost: What could you earn with that payment instead?

Example Calculation: $500,000 loan at 8% for 5 years

• Monthly Payment: $10,137

• Total Paid: $608,220

• Total Interest: $108,220

• Add Origination Fee (2%): $10,000

• Total Cost: $118,220 (23.6% of loan amount)

Compare to Alternative: $500,000 at 6% SBA 7(a) for 10 years

• Monthly Payment: $5,551

• Total Paid: $666,120

• Total Interest: $166,120

• SBA Guarantee Fee (3.5%): $17,500

• Total Cost: $183,620 (36.7% of loan amount)

Wait—higher total cost but lower rate? Yes! Longer term = more interest paid. But lower monthly payment may be worth it for cash flow management.

The Key: Calculate what matters for YOUR situation:

• Need lowest monthly payment? Choose longer term

• Want to pay least total interest? Choose shortest term you can afford

• Need to preserve cash? Accept higher cost for flexibility

Step 8: Make Your Decision

Decision Matrix:

Use this quick reference to match your situation with the best loan type:

If you need more than $2M, have excellent credit, and time is not urgent: → Choose SBA 7(a) or SBA 504 loans

If you need equipment of any size and are an established business: → Choose Equipment Financing

If you need working capital quickly and are established: → Choose Working Capital Loan

If you need ongoing flexible access to funds: → Choose Business Line of Credit

If you're a seasonal business with fluctuating revenue: → Choose Revenue-Based Financing

If it's an emergency, you have poor credit, but revenue exists: → Choose Merchant Cash Advance (but use cautiously - highest cost)

If you're buying real estate and want to own it: → Choose SBA 504 (for owner-occupied properties)

Final Check Before Applying:

• ☐ Can I afford the monthly payment comfortably?

• ☐ Will this loan help me make more money than it costs?

• ☐ Do I have a plan B if sales are slower than projected?

• ☐ Have I compared multiple options?

• ☐ Do I understand all terms and conditions?

• ☐ Is this lender/product the right fit for my business?

The Future of Business Lending in Michigan

Understanding trends helps you position for success.

Trend 1: Continued Detroit Renaissance

What's Happening:

• Downtown Detroit office occupancy improving

• Residential development accelerating

• Corporate relocations/expansions (Microsoft, Google, others)

• Small business ecosystem strengthening

• Venture capital presence growing

Implications for Lending:

• Detroit-based businesses increasingly attractive to lenders

• Real estate appreciation improving loan-to-value ratios

• More lender competition = better terms for borrowers

• Detroit address no longer a negative (increasingly a positive)

Trend 2: Manufacturing Renaissance & Reshoring

What's Happening:

• Supply chain disruptions driving domestic manufacturing

• CHIPS Act investment in semiconductor manufacturing

• EV battery production coming to Michigan

• Automation/robotics investment accelerating

• "Made in Michigan/USA" consumer preference

Implications for Lending:

• Equipment financing demand strong (automation, robotics)

• Real estate financing for new/expanded facilities

• Working capital for supply chain inventory

• Lenders increasingly bullish on Michigan manufacturing

Trend 3: EV Transition

What's Happening:

• All major automakers transitioning to EVs

• Battery plants being built in Michigan

• Supply chain transformation (new suppliers, technologies)

• Traditional suppliers must adapt or die

Implications for Lending:

• Capital needs for retooling, new equipment

• Transitional working capital (declining old product, ramping new)

• Acquisition financing (consolidation inevitable)

• Lenders scrutinizing supplier viability more carefully

Trend 4: Technology Sector Growth

What's Happening:

• Mobility tech cluster building around automotive

• University of Michigan spin-offs increasing

• Detroit Innovate, ID Ventures active

• Ann Arbor tech scene maturing

• Remote work enabling Michigan tech talent retention

Implications for Lending:

• More venture capital available

• Revenue-based financing for growth-stage tech

• Traditional lending still difficult for true startups

• Michigan tech companies no longer need to move to coasts

Trend 5: Alternative Lending Maturation

What's Happening:

• Online lenders more established, professional

• Revenue-based financing growing rapidly

• Traditional banks offering online products

• Technology enabling faster underwriting

Implications for Lending:

• More options for Michigan businesses

• Speed improving across all lender types

• Cost of alternative lending may decrease (competition)

• Traditional banks forced to improve speed/service

Trend 6: SBA Modernization

What's Happening:

• SBA streamlining processes

• More SBA Preferred Lenders (faster approval authority)

• Technology improving application experience

• SBA Express programs growing

Implications for Lending:

• SBA loans getting faster (30-45 days becoming possible)

• More lenders participating in SBA programs

• Lower rates remaining competitive advantage

• Still documentation-intensive, but improving

Trend 7: ESG & Sustainability Financing

What's Happening:

• Environmental, Social, Governance (ESG) focus

• Green building standards

• Energy efficiency incentives

• Sustainability-focused lending programs

Implications for Lending:

• Michigan P2 Loans (pollution prevention) available

• "Green loans" with better terms for sustainable projects

• Energy efficiency upgrades financeable

• ESG compliance increasingly expected

Trend 8: Fintech & Banking Convergence

What's Happening:

• Traditional banks acquiring fintech companies

• Fintechs partnering with banks

• Technology enabling faster, cheaper lending

• AI underwriting becoming mainstream

Implications for Lending:

• Application processes improving dramatically

• Same-day approvals becoming normal for small amounts

• Documentation requirements may decrease

• Human relationships still matter for complex/large deals

What This Means for Your Michigan Business

Short-Term (2025-2026):

• Access to capital good for established businesses

• Competition among lenders = better terms

• Speed continues to improve

• Technology makes applying easier

Medium-Term (2026-2028):

• Manufacturing lending remains strong

• Detroit growth story strengthens

• More boutique lenders serving Michigan

• EV transition creates opportunities + challenges

Long-Term (2028+):

• Michigan economy diversification continues

• Technology sector matures

• Traditional manufacturing + advanced manufacturing co-exist

• Lending landscape more competitive (good for borrowers)

How to Position for Success:

1. Build strong banking relationships now

2. Invest in equipment/technology to stay competitive

3. Maintain strong financials and credit

4. Consider sustainability investments (future lending advantage)

5. Work with lenders who understand Michigan (like LVRG)

Frequently Asked Questions

Q: What credit score do I need for a business loan in Michigan? A: Depends on loan type. SBA loans typically need 680+. Equipment financing 640+. Working capital from alternative lenders 600+. Merchant cash advances have no minimum but focus on revenue.

Q: How long does it take to get approved for a business loan? A: Varies dramatically: Same day (MCA) to 2-3 days (revenue-based) to 1-2 weeks (equipment, working capital) to 6-8 weeks (SBA). Speed = higher cost typically.

Q: Can I get a business loan with bad credit? A: Yes, but options limited and expensive. Revenue-based financing and MCAs available with poor credit if you have revenue. Work on improving credit for better options.

Q: Do I need collateral for a business loan? A: Not always. Working capital loans can be unsecured. However, secured loans (real estate, equipment) offer better rates. Most business loans require personal guarantee regardless of collateral.

Q: What's the difference between SBA 7(a) and SBA 504? A: SBA 7(a) is flexible—working capital, equipment, real estate, acquisitions—up to $5M, 10-25 year terms. SBA 504 is specifically for owner-occupied real estate or major equipment, requires 10% down, offers below-market fixed rate on CDC portion (40% of loan), 25-year terms.

Q: How much can I borrow for my Michigan business? A: Depends on your qualifications and lender. LVRG range: $50K-$50M+. Most businesses qualify for amounts equal to 3-12 months of revenue depending on credit, collateral, cash flow.

Q: What documents do I need to apply? A: Universal: 2 years business + personal tax returns, 3-6 months bank statements, current P&L, balance sheet, debt schedule. Additional docs for specific loan types (see Application Process section above).

Q: Can I use a business loan to buy equipment in another state? A: Yes, Michigan lenders can finance equipment nationally. However, Michigan-based lenders like LVRG may prefer Michigan businesses or Michigan-based assets. Equipment location usually doesn't matter if your business is in Michigan.

Q: What's the difference between a business loan and a business line of credit? A: Term loan: Receive lump sum, fixed repayment schedule, interest on full amount. Line of credit: Draw as needed, revolving access, interest only on drawn amount, flexible repayment.

Q: Can I get a business loan if I already have debt? A: Yes, if cash flow can support new payment. Lenders calculate Debt Service Coverage Ratio (DSCR). Need 1.25x minimum (income 1.25x higher than all debt payments).

Q: Do I need a business plan to get a loan? A: Depends. SBA loans: usually yes. Working capital from alternative lenders: usually no (but helps). Equipment financing: depends on amount. Larger loans ($500K+) typically require business plan or at minimum detailed use of funds.

Q: How soon can I apply for another loan after getting one? A: After 3-6 months typically, assuming: (1) Making payments on time, (2) Cash flow can support additional debt, (3) Clear use of funds for new loan, (4) Not maxed out on existing credit.

Q: What if I'm declined for a business loan? A: Ask why specifically. Common reasons: credit issues, insufficient cash flow, lack of collateral, incomplete documentation. Fix issues, wait 3-6 months, try again. Or try different lender/product—one decline doesn't mean all will decline.

Q: Are business loans tax-deductible? A: Interest paid is tax-deductible. Principal is not. Section 179 and bonus depreciation can create significant tax advantages for equipment purchases. Consult your CPA.

Q: Can I pay off a business loan early? A: Usually yes, but check for prepayment penalties. Some loans (especially SBA) have penalties if paid off early (typically 2-3 years). Read fine print before signing.

Q: What's better: fixed or variable rate? A: Fixed = predictable payments, protected if rates rise. Variable = starts lower, risk of increases. In 2025 with rates potentially declining, variable may be attractive. For real estate (long-term), fixed usually preferred.

Q: Can I get a business loan as a startup with no revenue? A: Very difficult. Options: SBA microloans, CDFIs (Invest Detroit, ProsperUs Detroit), personal loans used for business, friends/family, venture capital. Most traditional business loans require 1+ year operating history and revenue.

Q: What's the maximum loan amount LVRG provides? A: $50,000 to $50,000,000+ depending on product and qualifications. Typical: Working capital $25K-$1.5M, SBA loans $500K-$15M, Equipment $100K-$50M+, Commercial real estate $500K-$15M.

Q: Does LVRG charge fees? A: For SBA brokerage services, we're compensated by the lender (you pay nothing extra). For direct lending products, fees are competitive and disclosed upfront. No hidden fees, ever.

Q: How is LVRG different from a bank? A: We're a boutique financing firm with direct lending capability + partnerships with 25+ lenders. You get: (1) Multiple options, not just one bank, (2) Faster decisions, (3) Personal service, (4) Michigan expertise, (5) Wide range: $50K-$50M.

Next Steps: Get Your Michigan Business Funded

You now have comprehensive knowledge of Michigan business lending. Time to take action.

Step 1: Assess Your Current Situation

Complete This Self-Assessment:

□ I know my personal credit score: _____ □ I know my annual business revenue: $_____ □ I know how much I need: $_____ □ I know what I'll use it for: _____ □ I know my business is profitable: Yes / No / Break-Even □ I have my financial documents ready: Yes / No □ I know what type of loan I need: _____

Step 2: Take Immediate Action

If Your Credit Score is Below 640:

• Focus on improving credit before applying

• Pay down credit cards

• Pay all bills on time for 6+ months

• Fix any errors on credit report

• Consider small unsecured loan (paid on time) to rebuild

• Timeline: 3-6 months to improve significantly

If Your Credit Score is 640+:

• You're ready to explore financing options

• Gather documentation

• Apply now or contact lender

Step 3: Choose Your Path

Path A: Self-Service Online Application

1. Visit LVRGFunding.com/apply

2. Complete quick online application (3 minutes)

3. No hard credit pull

4. Receive initial assessment within 1 business day

5. Discuss options with LVRG funding specialist

Path B: Consultation First

1. Call LVRG: (855) 998-5874

2. Speak with Charles Barr or senior funding specialist

3. Discuss your situation, goals, options

4. Receive guidance on best approach

5. Apply if it makes sense

Path C: In-Person Meeting (Metro Detroit)

1. Schedule meeting at LVRG headquarters 615 Griswold Street, Suite 700 Detroit, MI 48226

2. Meet with funding team

3. Discuss your business, tour of facility (if applicable)

4. Explore financing options

5. Build relationship for future needs

Step 4: Gather Documentation (While Waiting)

Get these ready so you're prepared when opportunity arises:

□ Business tax returns (2 years) □ Personal tax returns (2 years) □ Bank statements (3-6 months) □ Current Profit & Loss statement □ Current Balance sheet □ Business debt schedule □ Use of funds summary □ Additional items based on loan type

Step 5: Maintain Forward Momentum

While Your Application is Being Processed:

• Respond promptly to all requests

• Provide clear, complete information

• Ask questions if anything unclear

• Stay positive and professional

• Prepare to close (insurance quotes, etc.)

After Approval:

• Review loan documents carefully

• Ask questions about anything unclear

• Verify all numbers match approval

• Sign when comfortable

• Prepare to execute business plan

Why Choose LVRG as Your Michigan Business Loan Partner?

20+ Years Michigan Experience: Headquartered in Detroit since 2003, we've seen Michigan through economic challenges and resurgence. We understand Michigan's economy, industries, and business landscape intimately.

$1 Billion+ Funded: We've helped 10,000+ businesses access over $1 billion in financing. Our track record speaks to our expertise and reliability.

$50K to $50M+ Range: Whether you need working capital, equipment financing, SBA loans, or commercial real estate financing, we have the capacity and partnerships to deliver.

Boutique Service, Institutional Capacity: You work directly with senior leadership, not a call center. But we have the capital access and banking partnerships of a much larger firm.

Direct Lending + Brokerage: We can lend from our own balance sheet for speed, or connect you to our network of 25+ elite SBA lenders and institutional partners for optimal terms.

Michigan Industries We Serve:

• Manufacturing (especially automotive suppliers, industrial)

• Construction (equipment financing $500K-$100M+)

• Healthcare (medical equipment, practice acquisitions)

• Restaurants & Hospitality

• Retail

• Technology

• Professional Services

• Agriculture

• Transportation & Logistics

Our Commitment:

• Transparent terms, no hidden fees

• Fast decisions (days, not months for many products)

• Personal service from experienced professionals

• Long-term relationships, not transactional

• Your success is our success

Contact LVRG Business Funding Today

Phone: (855) 998-5874

Email: info@lvrgllc.com

Apply Online: LVRGFunding.com/apply

Office: 615 Griswold Street, Suite 700 Detroit, MI 48226

Hours: Monday-Friday: 8:00 AM - 5:00 PM EST

Website: LVRGFunding.com

Special Offer for Blog Readers

Mention you read "The Complete Guide to Business Loans in Michigan" when you contact us, and receive:

• Priority application review

• Waived application fee (if applicable)

• Complimentary consultation with Charles Barr or senior funding specialist

• 30-minute strategic business planning session (for approved deals $500K+)

Conclusion: Your Path to Growth Starts with Capital

Michigan's business landscape has never been more dynamic. From Detroit's resurgence to the EV revolution to manufacturing reshoring, opportunities abound for ambitious business owners.

But opportunity requires capital to seize it.

Whether you're a manufacturer needing new equipment, a contractor expanding your fleet, a restaurant opening a second location, or a healthcare practice acquiring a partner—the right financing at the right time can be transformational.

This guide has given you the knowledge to navigate Michigan's business lending landscape with confidence. You understand:

✓ Every major loan type available ✓ How to qualify and what lenders seek ✓ Michigan-specific programs and resources ✓ How to choose the right option for your situation ✓ Common mistakes to avoid ✓ How to apply and what to expect

Knowledge is power. But action is what creates results.

The next step is yours:

• Apply for financing

• Call LVRG for consultation

• Improve your credit and prepare

• Whatever makes sense for your situation

We've spent 20+ years helping Michigan businesses access the capital they need to grow. We've seen firsthand how the right financing at the right time changes trajectories—from surviving to thriving, from local to regional, from good to great.

Your business has potential. Capital unlocks it.

We look forward to being part of your growth story.

Charles M. Barr Founder & CEO LVRG Business Funding Michigan's Business Loan Authority

Phone: (855) 998-5874 Email: cbarr@lvrgllc.com Website: LVRGFunding.com

Headquartered in Detroit, Michigan Serving Michigan Businesses Statewide Lending Nationwide

About LVRG Business Funding

LVRG Business Funding is Michigan's Business Loan Authority, headquartered in Downtown Detroit. For over 20 years, we've provided $50,000 to $50,000,000+ in strategic financing to established businesses nationwide, with deep expertise in Michigan's economy and industries.

We offer:

• Working Capital & Growth Financing ($25K-$1.5M)

• SBA Loans through network of 25+ elite lenders ($500K-$15M)

• Equipment Financing, especially large-ticket ($100K-$50M+)

• Commercial Real Estate Financing ($500K-$15M)

• Revenue-Based Financing

• Business Lines of Credit

Our clients choose us for:

• Speed (days to weeks, not months)

• Expertise (20+ years, $1B+ funded)

• Personal service (work directly with leadership)

• Michigan knowledge (we understand your market)

• Options (direct lending + banking partnerships)

Founded: 2003 Headquarters: Detroit, Michigan Track Record: $1B+ funded, 10,000+ businesses served Philosophy: Relational, not transactional—we're your long-term capital partner

This guide was last updated November 20, 2024 and reflects current lending conditions, programs, and rates as of that date. Lending conditions, rates, and programs change frequently. Contact LVRG for current information specific to your situation.

This guide is for informational purposes only and does not constitute financial advice. Consult with qualified professionals (CPAs, attorneys, financial advisors) before making borrowing decisions.

LVRG Business Funding is not a bank. We are a boutique financing firm with direct lending capabilities and partnerships with banks and institutional lenders. Loan products and approvals are subject to lender criteria and underwriting.

Business Loans in Michigan: Your Complete Guide to Financing Options for Established Companies

If you're a business owner in Michigan looking for capital to grow, expand, or seize new opportunities, you're not alone. From Detroit to Grand Rapids, Ann Arbor to Lansing, established businesses across the state need access to strategic financing to compete and scale. Whether you're in Metro Detroit, Oakland County, Macomb County, or anywhere in Michigan, understanding your business loan options is critical to making the right financing decision.

At LVRG Business Funding, we've spent over 20 years helping Michigan businesses access the capital they need. We've deployed more than $1 billion to 10,000+ companies across the state, and we've learned that the right financing at the right time can be the difference between staying stagnant and achieving remarkable growth.

This comprehensive guide covers everything you need to know about business loans in Michigan—from working capital financing to SBA loans, equipment financing to commercial real estate loans. Whether you're based in Detroit, Grand Rapids, Ann Arbor, Lansing, Flint, or any other Michigan community, this guide will help you understand your options and choose the best financing solution for your business.

Why Michigan Businesses Need Access to Capital

Michigan's economy is driven by manufacturing, automotive, construction, healthcare, agriculture, and technology. These industries require significant capital investments to maintain equipment, expand operations, hire talent, and stay competitive. Yet many Michigan business owners find that traditional bank financing is increasingly difficult to access.

Banks have tightened lending requirements, reduced flexibility, and slowed approval processes. This is why many Michigan banks now refer their business loan clients to specialized lenders like LVRG. We combine direct lending capabilities with institutional partnerships to deliver flexible financing solutions that traditional banks simply can't match.

Types of Business Loans Available in Michigan

1. Working Capital Loans

What They Are:
Working capital loans provide immediate cash flow for day-to-day business operations, inventory purchases, payroll, and short-term growth opportunities.

Loan Amounts:
$25,000 to $1,500,000

Best For:

• Managing seasonal cash flow gaps

• Purchasing inventory

• Covering payroll during growth phases

• Capitalizing on immediate opportunities

Timeline:
Fast approvals—often within days for qualified businesses

Availability in Michigan:
LVRG provides working capital loans throughout Michigan, including Detroit business loans, Grand Rapids business financing, and funding for companies in Ann Arbor, Lansing, Flint, and across Oakland County, Macomb County, Wayne County, and Kent County.

Who Qualifies:
Established businesses generating $50,000+ in consistent monthly revenue with at least 6 months of operating history.

2. SBA Loans (7a, 504, and SBA Express)

What They Are:
Small Business Administration (SBA) loans are government-backed financing options that offer competitive rates and longer terms than conventional loans.

SBA 7(a) Loans:

• Loan Amounts: $500,000 to $5,000,000+

• Use Cases: Business acquisitions, expansion, working capital, equipment, commercial real estate

• Terms: Up to 25 years for real estate, 10 years for equipment and working capital

• Best For: Established businesses with strong financials looking for long-term, affordable financing

SBA 504 Loans:

• Loan Amounts: $500,000 to $15,000,000

• Use Cases: Owner-occupied commercial real estate purchases, major equipment investments

• Terms: 20-25 years with fixed rates

• Best For: Businesses purchasing property or making significant fixed asset investments

SBA Express Loans:

• Loan Amounts: Up to $350,000

• Timeline: Approximately 2 weeks for approval and funding

• Use Cases: Working capital, equipment, expansion

• Best For: Businesses needing SBA rates and terms with faster approvals

Availability in Michigan:
LVRG facilitates SBA loans for businesses throughout Michigan through institutional banking partners. We serve companies seeking SBA loans in Detroit, Grand Rapids SBA financing, Ann Arbor business loans, and SBA lending across Metro Detroit, Oakland County, Macomb County, and statewide.

Who Qualifies:
Businesses with at least 2 years of operating history, strong credit profiles, and demonstrated ability to repay.

3. Equipment Financing

What It Is:
Equipment financing provides capital to purchase or lease business-critical equipment, machinery, vehicles, and technology.

Loan Amounts:
$100,000 to $50,000,000+

Best For:

• Construction companies purchasing heavy machinery

• Manufacturing businesses investing in production equipment

• Medical practices acquiring diagnostic equipment

• Agriculture operations financing tractors and machinery

• Transportation companies expanding fleets

• Industrial businesses upgrading facilities

Timeline:
Fast approvals for qualified businesses—often within days for direct lending

Availability in Michigan:
LVRG specializes in large equipment financing deals for Michigan businesses. We provide equipment financing in Detroit, Grand Rapids equipment loans, and funding for companies in Ann Arbor, Lansing, Flint, and throughout Oakland County, Macomb County, Wayne County, Kent County, and across Michigan.

Who Qualifies:
Established businesses with strong revenue and equipment financing needs exceeding $100,000.

4. Commercial Real Estate Financing

What It Is:
Commercial real estate financing helps businesses purchase or refinance owner-occupied properties.

Loan Amounts:
$500,000 to $15,000,000

Best For:

• Purchasing commercial buildings for business operations

• Refinancing existing commercial properties

• Expanding facilities

Financing Options:

• SBA 504 loans (best rates and terms for owner-occupied properties)

• SBA 7(a) loans (flexible for mixed-use properties)

• Conventional commercial mortgages

Availability in Michigan:
LVRG provides commercial real estate financing throughout Michigan, including Detroit commercial property loans, Grand Rapids real estate financing, and funding for businesses in Ann Arbor, Lansing, and across Metro Detroit, Oakland County, Macomb County, Wayne County, and statewide.

5. Business Acquisition Financing

What It Is:
Business acquisition loans help entrepreneurs purchase existing businesses or buy out partners.

Loan Amounts:
$500,000 to $15,000,000

Best For:

• Acquiring competitor businesses

• Buying out business partners

• Purchasing established companies with proven revenue

Financing Options:

• SBA 7(a) loans (most common for acquisitions)

• Conventional acquisition financing

Availability in Michigan:
LVRG facilitates business acquisition financing for Michigan entrepreneurs looking to purchase businesses in Detroit, Grand Rapids, Ann Arbor, Lansing, and throughout the state.

Why Michigan Banks Refer Clients to LVRG

Over the past 20 years, we've built relationships with Michigan banks across the state. Many banks now refer their business loan clients to us because:

1. Limited Product Offerings: Most banks offer only one or two standard loan products with rigid requirements.

2. Slow Approval Processes: Traditional bank lending can take weeks or months. We move faster.

3. Inflexibility: Banks can't structure creative deals or adapt to unique situations. We can.

4. Deal Size Limitations: Many banks won't handle deals above $1-2 million or below $250,000. We finance from $50,000 to $50,000,000.

5. Industry Specialization: We understand Michigan industries—manufacturing, construction, automotive, healthcare, and more.

The result: We've become the preferred capital partner for established Michigan businesses that banks can't fully serve.

Geographic Coverage: Business Loans Across Michigan

LVRG Business Funding serves established companies throughout Michigan. Here's where we're actively funding businesses:

Metro Detroit & Surrounding Counties

• Detroit business loans: Serving businesses in Michigan's largest city across all industries

• Oakland County: Troy, Southfield, Farmington Hills, Rochester Hills, and surrounding communities

• Macomb County: Sterling Heights, Warren, Clinton Township, and Metro Detroit suburbs

• Wayne County: Dearborn, Livonia, Westland, and the greater Detroit metropolitan area

West Michigan

• Grand Rapids business loans: Serving Michigan's second-largest city and Kent County

• Holland, Muskegon, and lakeshore communities

Mid-Michigan

• Lansing business financing: Serving Michigan's capital city and surrounding Ingham County

• Flint and Genesee County

Southeast Michigan

• Ann Arbor business loans: Serving Washtenaw County and the University of Michigan corridor

• Jackson, Brighton, and surrounding communities

Statewide Coverage

• Kalamazoo, Battle Creek, and Southwest Michigan

• Traverse City and Northern Michigan

• Saginaw, Bay City, and the Great Lakes Bay Region

• Upper Peninsula communities

No matter where your business is located in Michigan, LVRG can structure financing solutions to meet your needs.

How to Choose the Right Business Loan in Michigan

Selecting the right financing depends on several factors:

1. Your Funding Timeline

• Need capital immediately? Working capital loans offer the fastest approvals.

• Can wait 2-4 weeks? SBA Express provides SBA rates with faster timelines.

• Planning 60-90 days out? SBA 7(a) and 504 loans offer the best long-term rates.

2. Your Use of Funds

• Daily operations: Working capital loans

• Equipment purchase: Equipment financing

• Real estate: SBA 504 or commercial mortgages

• Business acquisition: SBA 7(a) loans

3. Your Business Profile

• Strong credit and 2+ years in business? SBA loans offer best rates

• 6+ months operating with $50K+ monthly revenue? Working capital available

• Need $100K+ for equipment? Specialized equipment financing

4. Your Growth Goals

• Scaling quickly? Flexible working capital

• Long-term investment? SBA financing with favorable terms

• Major expansion? SBA 504 or large equipment deals

Why Established Michigan Businesses Choose LVRG

Direct Lending + Institutional Partnerships
We combine our own capital with relationships across 100+ institutional lenders. This means more options, better terms, and faster funding than you'd get from a single bank.

20+ Years of Michigan Experience
We understand Michigan industries, Michigan businesses, and Michigan challenges. We've funded companies in every sector across the state.

$50,000 to $50,000,000 in Financing
From small working capital needs to massive equipment deals, we have the capacity to fund your growth.

Fast Decisions, Transparent Terms
No runarounds. No hidden fees. No false promises. Just clear financing options and expert guidance.

White-Glove Service
You work directly with experienced specialists who understand your business and have the authority to make decisions.

Ready to Fund Your Michigan Business Growth?

If you're an established Michigan business generating $50,000+ in monthly revenue and ready to capitalize on growth opportunities, LVRG Business Funding is here to help.

Whether you need working capital in Detroit, SBA loans in Grand Rapids, equipment financing in Ann Arbor, or business acquisition funding in Lansing—we have the expertise, capacity, and institutional relationships to deliver results.

Contact LVRG Business Funding Today

Headquarters: Downtown Detroit, Michigan
Service Area: Statewide and nationwide
Financing Range: $50,000 to $50,000,000

Apply Online: lvrgfunding.com/apply-now
Call Us: (855) 998-5874

We fund growth, not survival. If you're ready to take your Michigan business to the next level, let's talk.

Frequently Asked Questions About Michigan Business Loans

Q: How fast can I get a business loan in Michigan?
A: Timeline depends on loan type. Working capital loans can fund within days. SBA Express takes approximately 2 weeks. Traditional SBA loans take 60-90 days.

Q: What credit score do I need for a business loan in Michigan?
A: Requirements vary by loan type. Working capital loans have more flexible credit requirements. SBA loans typically require strong credit (680+).

Q: Can I get a business loan if my bank turned me down?
A: Yes. We have more financing options and flexibility than traditional banks. Many of our clients were referred to us after bank denials.

Q: Do you lend to businesses outside Metro Detroit?
A: Absolutely. We serve businesses throughout Michigan—Grand Rapids, Ann Arbor, Lansing, Flint, and every region of the state.

Q: What industries do you finance?
A: We finance established businesses across all industries: manufacturing, construction, healthcare, automotive, agriculture, technology, retail, hospitality, and more.

Q: What's the difference between SBA 7(a) and SBA 504 loans?
A: SBA 7(a) loans are more flexible and can be used for working capital, equipment, real estate, and acquisitions. SBA 504 loans are specifically for owner-occupied real estate and major equipment with the best rates and longest terms.

About LVRG Business Funding

LVRG Business Funding is a Detroit-based boutique lender serving established businesses throughout Michigan and nationwide. For over 20 years, we've deployed more than $1 billion in strategic financing to 10,000+ companies. We specialize in working capital loans, SBA financing, equipment financing, and commercial real estate loans from $50,000 to $50,000,000.

Our clients choose us because we combine direct lending capabilities with institutional partnerships to deliver financing solutions traditional banks can't match. Fast decisions. Transparent terms. Expert guidance from application to funding.

Ready to discuss your capital needs? Click here to apply now or call us at (855) 998-5874 to speak with a specialist.

LVRG Business Funding Launches SBA Express Working Capital Loans for Michigan Small Businesses

Michigan's Business Financing Authority Delivers Fast, Flexible Capital Solutions for Detroit, Metro Detroit, and Statewide Business Growth

⚡ Fast Track Your Application: Get pre-approved in 24 hours. Apply Now at LVRGFunding.com/apply-now or call (855) 998-LVRG

QUICK NAVIGATION:

• Program Highlights

• Eligibility Requirements

• Approved Uses

• Industries We Serve

• Cities We Serve

• Application Process

• FAQs

• Apply Now

Detroit, Michigan – LVRG Business Funding, recognized as the state's Business Financing Authority, is proud to announce the launch of its LVRG Express Working Capital Loan Program—a streamlined financing solution designed specifically for established small businesses who need access to capital quickly and efficiently.

With over 20 years of experience and more than $1 billion in business loans funded to over 10,000 businesses nationwide, LVRG Business Funding continues its commitment to empowering entrepreneurs and business owners throughout Detroit, Grand Rapids, Ann Arbor, and communities across the Great Lakes State with the strategic capital they need to seize opportunities and drive sustainable growth.

Fast Business Loans for Michigan's Growing Economy

The LVRG Express Working Capital Loan Program represents a significant advancement in small business financing. Whether you're operating in Detroit's revitalized downtown, expanding throughout Metro Detroit's thriving suburbs, growing in Grand Rapids' vibrant business community, or anywhere across the state, LVRG Business Funding delivers the working capital solutions your business needs to compete and succeed.

"Business owners deserve financing solutions that move at the speed of opportunity," said Charles M. Barr, CEO and Founder of LVRG Business Funding. "Our Express Working Capital Loan Program eliminates the lengthy approval processes and excessive requirements that hold businesses back. We're providing entrepreneurs from Detroit to Lansing, Warren to Ann Arbor, with fast access to flexible capital so they can focus on what matters most—growing their businesses and creating jobs in our communities."

LVRG Express Working Capital Loans: Program Highlights

LVRG Business Funding's Express Working Capital Loan Program delivers powerful financing advantages for small businesses operating throughout the state:

Loan Amounts & Terms Designed for Small Businesses

Key Features:

• Flexible Loan Amounts: $10,000 to $350,000 in working capital financing for business growth

• Extended Repayment Terms: Up to 10-year terms available, providing manageable monthly payments

• No Prepayment Penalties: Pay off your loan early without penalty fees

• Competitive Variable Pricing: Tailored rates based on your business's financial strength and creditworthiness

Streamlined Application Process for Detroit & Metro Detroit Businesses

• Digital Application Platform: Complete your business loan application online in minutes at LVRGFunding.com/apply-now

• Fast Credit Decisions: Efficient underwriting process keeps your business on track for rapid funding

• No Hard Personal Credit Pulls: Protecting business owners' credit scores during the application review

• Minimal Collateral Requirements: No personal collateral required for qualifying businesses

• Quick Funding Timeline: Most loans fund within 15-20 business days

Simplified Documentation Requirements

LVRG Business Funding understands that business owners are busy running their companies. Our Express Working Capital Loan Program requires minimal documentation:

✓ Completed LVRG application forms
✓ Most recent 3 months of business bank statements
✓ Last 3 years of filed business tax returns
✓ Current interim financial statements (within 90 days)
✓ Business debt schedule

Eligibility Requirements for Small Business Loans

LVRG Business Funding's Express Working Capital Loan Program is available to established small businesses throughout Detroit, Metro Detroit, Grand Rapids, Ann Arbor, Lansing, and communities statewide. To qualify for business financing through our Express program, your company must meet these straightforward requirements:

• Minimum 2 Years in Business: At least 2 years of operating history required

• Credit Score Requirement: Minimum FICO score of 650 for business owners

• Minimum SBSS Score: Business credit score of 165 or higher

• Debt Service Coverage: Demonstrated ability to maintain at least 1.25x debt service coverage ratio

• Current on Obligations: Must be current on all existing business and personal debt

• No Recent Bankruptcies: No bankruptcies filed within the last 7 years

• Cash Flow Requirement: Proven cash flow demonstrating capacity for loan repayment

💡 Not Sure If You Qualify? Our team evaluates each application individually. Even if you don't meet all requirements, contact us at (855) 998-5874 to discuss alternative financing options.

Approved Uses for Working Capital Loans

LVRG Business Funding's Express Working Capital Loans provide businesses with flexible financing for a wide range of business purposes, excluding commercial real estate transactions. Business owners across Detroit, Metro Detroit, and throughout the state can use Express Working Capital Loan proceeds for:

• Equipment Purchases: Finance essential equipment for your operations, from manufacturing machinery to restaurant equipment to medical devices

• Working Capital & Cash Flow: Cover day-to-day operational expenses, payroll, inventory purchases, and seasonal fluctuations

• Business Expansion & Growth: Fund expansion initiatives, new locations, or market entry strategies

• Leasehold Improvements: Renovate and improve your business location (improvements up to $350,000)

• Debt Refinancing: Consolidate and refinance existing high-interest business debt to improve cash flow

• Business Acquisitions: Purchase existing businesses within approved industries (restrictions apply)

• Inventory & Supplies: Stock up on inventory for peak seasons or take advantage of bulk purchasing opportunities

• Marketing & Advertising: Invest in growing your business through strategic marketing campaigns

• Technology Upgrades: Modernize your business with new software, hardware, or digital infrastructure

Industries We Serve Across Michigan

LVRG Business Funding specializes in providing Express Working Capital Loans to businesses across numerous industries. Whether you're operating in Detroit's urban core, throughout Metro Detroit's suburbs, or in communities like Grand Rapids, Warren, Sterling Heights, Dearborn, or Ann Arbor, we have deep expertise financing these established business sectors:

Professional Services Across Michigan

• Accounting & Tax Preparation Services

• Law Firms

• Professional Services Firms

• Educational Services

• Investment Advisory

Healthcare & Medical Services

• Dental Practices

• Veterinary Clinics

• Healthcare Facilities

• Home Care

• Pharmacy

Food & Hospitality Businesses

• Franchise Restaurants

• Approved Franchise Concepts

• Food Service Establishments

Automotive & Transportation in Metro Detroit

• Auto Dealerships

• Automotive Care

• Automotive Service Providers

Construction & Trades

• HVAC and Plumbing Contractors

• Restoration, Remediation, and Cleaning

• Specialty Trade Contractors

Technology & Business Services

• Managed Service Providers (MSPs)

• Broadband and Telecommunications

• Technology Firms

Additional Industries

• Agriculture Operations

• Fitness Centers

• Funeral Homes and Crematories

• Government Contracting

• Hardware Stores

• Insurance Agencies

• Pet Care Facilities

• Property Management

• RV Parks

• Self-Storage Facilities

• General Small Businesses

Note: Certain industries may have stricter underwriting requirements. Some industries are restricted and not eligible for Express Working Capital Loans. Contact LVRG Business Funding to discuss your specific business and industry eligibility.

Serving Business Owners Throughout Michigan

LVRG Business Funding proudly serves established businesses across the Great Lakes State. Our Express Working Capital Loan Program is available to business owners in:

Major Michigan Cities We Serve:

• Detroit - Michigan's largest city and economic hub

• Grand Rapids - West Michigan's business center

• Warren - Metro Detroit manufacturing

• Sterling Heights - Automotive and tech corridor

• Ann Arbor - Innovation and healthcare

• Lansing - State capital

• Dearborn - Automotive headquarters

• Livonia - Commercial hub

• Troy - Corporate center

• Farmington Hills - Professional services

• Flint - Manufacturing resurgence

• Rochester Hills - Growing business community

• Southfield - Office and retail

• Novi - Technology corridor

• And throughout Michigan - From the Upper Peninsula to the Ohio border

Whether your business is in a major metropolitan area or a smaller community, LVRG Business Funding delivers the same fast, professional service and competitive lending terms.

Why Michigan Business Owners Choose LVRG Business Funding

For over two decades, LVRG Business Funding has been the trusted financing partner for established businesses throughout the United States. As the state's Business Financing Authority, we've built our reputation on delivering results for entrepreneurs and business owners who need strategic capital solutions.

20+ Years Serving Michigan Businesses

Since our founding, LVRG Business Funding has facilitated over $1 billion in business financing to more than 10,000 established businesses nationwide. Our deep knowledge of Detroit's business landscape and Metro Detroit's diverse economy, combined with our understanding of markets from Grand Rapids to Ann Arbor, positions us uniquely to serve businesses throughout the state.

By The Numbers:
✓ $1+ Billion in business financing facilitated
✓ 10,000+ businesses funded nationwide
✓ 20+ Years of financing expertise
✓ 15-20 Days average funding timeline
✓ $50K-$50M total lending capacity

Boutique Service, Institutional Capabilities

LVRG Business Funding combines the personalized attention of a boutique financing firm with the capital capacity and lending partnerships of major institutions. This unique positioning allows us to serve businesses with loan amounts ranging from $50,000 to $50 million across our full suite of financing products, while our Express Working Capital Loan Program specifically targets the $10,000 to $350,000 range that many small businesses require.

Fast, Transparent, Reliable

Business owners choose LVRG Business Funding because we deliver what we promise. No gimmicks, no hidden fees, no misleading tactics. Our Express Working Capital Loan Program provides straightforward terms, rapid credit decisions, and funding timelines that keep your business moving forward. When opportunity knocks, LVRG Business Funding ensures you have the capital to answer.

Strategic Partnership Approach

We don't view ourselves as transactional lenders. LVRG Business Funding builds long-term strategic partnerships with business owners. Whether you're launching a new product line, expanding to additional locations, or navigating challenges, LVRG stands with you as a trusted capital partner committed to your success.

The LVRG Express Working Capital Loan Process

Securing business financing shouldn't be complicated or time-consuming. LVRG Business Funding has streamlined our Express Working Capital Loan process to get business owners the capital they need efficiently:

6-Step Funding Process:

1. Apply Online - 5-minute digital application
2. Consultation - Advisor reviews your needs
3. Documentation - Submit required documents
4. Underwriting - Fast credit decision
5. Approval - Review clear loan terms
6. Funding - Receive capital in 15-20 days

Step 1: Connect & Apply

Click here to complete our digital application. The online application takes just minutes and provides LVRG Business Funding with an overview of your business and financing needs. We don't run hard credit pulls during the initial application, protecting your credit score.

Step 2: Consultation & Documentation

An experienced LVRG Business Funding advisor will contact you promptly to discuss your business financing needs and determine the best path forward. We'll request key documents such as business bank statements, tax returns, and current financial statements. Our team works closely with business owners to make the documentation process as seamless as possible.

Step 3: Underwriting & Credit Decision

LVRG Business Funding's efficient underwriting and credit decision process reviews your business's financial profile and creditworthiness. Our streamlined approach means faster decisions compared to traditional bank financing. We evaluate your business's ability to service debt, cash flow strength, and overall financial health.

Step 4: Loan Approval & Terms Review

Once approved, you'll receive clear loan terms outlining your Express Working Capital Loan amount, interest rate, repayment term, and any conditions. LVRG Business Funding believes in transparency—business owners deserve to understand exactly what they're agreeing to. If anything needs adjustment, we'll work collaboratively with you to structure optimal terms.

Step 5: Streamlined Digital Closing

LVRG Business Funding utilizes a digital closing process that eliminates unnecessary paperwork and delays. Business owners can review and execute loan documents electronically, expediting the closing timeline. Most Express Working Capital Loans close within 15-20 business days from completed application.

Step 6: Funding & Online Account Access

Upon closing, loan proceeds are disbursed directly to your business bank account. You'll receive access to LVRG Business Funding's online servicing platform where you can view your loan details, make payments, track your balance, and access account information 24/7 from anywhere.

Michigan Small Business Loan FAQs

How quickly can my Michigan business get funded through the Express Working Capital Loan Program?

Most LVRG Express Working Capital Loans fund within 15-20 business days from the time you submit a completed application with all required documentation. In some cases, businesses with strong financials and straightforward requests may fund even faster. LVRG Business Funding prioritizes speed without sacrificing thorough underwriting.

Does LVRG Business Funding only serve businesses in Detroit and Metro Detroit?

While LVRG Business Funding is proud to be recognized as the state's Business Financing Authority and maintain deep roots in Detroit and Metro Detroit, our Express Working Capital Loan Program serves established small businesses throughout all of the Great Lakes State—from the Upper Peninsula to the Ohio border, from Lake Michigan shoreline communities to businesses along Lake Huron. Additionally, LVRG Business Funding provides financing solutions to businesses nationwide through our broader lending programs.

What credit score do I need to qualify for an Express Working Capital Loan?

LVRG Business Funding requires a minimum personal FICO score of 650 and a minimum business SBSS credit score of 165 for Express Working Capital Loan approval. Business owners with credit scores below these thresholds may still qualify for alternative financing programs offered by LVRG Business Funding. Contact our team at LVRGFunding.com/apply-now to discuss your situation and explore available options.

Can startup businesses qualify for Express Working Capital Loans?

The LVRG Express Working Capital Loan Program requires a minimum of 2 years of business operations. However, startup businesses within certain approved franchise concepts, veterinary practices, and dental industries may qualify under specific conditions. Entrepreneurs launching new businesses should contact LVRG Business Funding to discuss startup financing alternatives, including our other working capital and growth financing products.

What if my business operates in an industry not listed as approved?

LVRG Business Funding serves businesses across dozens of industries. If your specific industry isn't explicitly listed in our approved sectors, contact our team to discuss eligibility. We evaluate each business individually and can often structure financing for businesses outside our standard industry list. Some industries may require additional documentation or have modified underwriting requirements.

Does LVRG Business Funding require personal guarantees for business loans?

While LVRG Express Working Capital Loans do not require personal collateral, personal guarantees from business owners may be required depending on the business structure, loan amount, and creditworthiness. Our team will clearly communicate all loan requirements during the application process so business owners understand their obligations before committing.

Can I use an Express Working Capital Loan to purchase commercial real estate?

No, the LVRG Express Working Capital Loan Program specifically excludes commercial real estate transactions. However, LVRG Business Funding offers specialized commercial real estate financing programs for businesses looking to purchase property. Visit LVRGFunding.com or contact our team to discuss commercial real estate financing options.

What makes LVRG Business Funding different from traditional banks?

LVRG Business Funding combines speed, flexibility, and personalized service that traditional banks struggle to match. While banks often require extensive documentation, lengthy approval processes, and rigid underwriting guidelines, LVRG's boutique approach delivers faster decisions, creative deal structuring, and a consultative partnership mentality. We leverage relationships with institutional lenders and banks to access competitive capital while maintaining the agility and service standards of a privately-held financing firm dedicated to business success.

Additional LVRG Business Funding Programs

Beyond our Express Working Capital Loan Program, LVRG Business Funding offers comprehensive financing solutions for established businesses with larger capital requirements:

Working Capital & Growth Financing ($50K - $5M)

For businesses requiring more substantial working capital than our Express program provides, LVRG Business Funding offers traditional working capital financing, revenue-based financing, SBA loans, and business acquisition financing with deal sizes from $50,000 to $5 million. These programs serve companies ready for significant expansion, strategic acquisitions, or major operational initiatives.

Big Ticket Equipment Financing ($100K - $50M)

LVRG Business Funding specializes in heavy equipment financing for businesses in construction, manufacturing, medical, agriculture, power generation, aviation, food packaging, transportation, and fitness industries. Our big ticket equipment financing programs fund deals from $100,000 to $50 million for companies making substantial capital investments in machinery and equipment.

SBA Loans Through LVRG

As the state's Business Financing Authority, LVRG Business Funding facilitates SBA loan programs through our dedicated platform, SBALoansMichigan.com. SBA 7(a) loans, SBA 504 loans, and SBA Express loans provide business owners with government-backed financing featuring competitive rates, extended terms, and favorable conditions for eligible businesses. Visit SBALoansMichigan.com to explore SBA financing options for your business.

Ready to Secure Working Capital for Your Business?

Don't let capital constraints hold your business back from achieving its full potential. Whether you're expanding operations in Detroit, growing throughout Metro Detroit, or seizing opportunities anywhere from Grand Rapids to Ann Arbor, LVRG Business Funding's Express Working Capital Loan Program delivers the fast, flexible financing your business needs to succeed.

LVRG Business Funding has facilitated over $1 billion in financing to more than 10,000 established businesses over the past 20 years. Our reputation as the state's Business Financing Authority was earned through consistent performance, unwavering commitment to client success, and a no-nonsense approach to business financing.

About LVRG Business Funding

LVRG Business Funding is a boutique financing firm recognized as the state's Business Financing Authority. Founded over 20 years ago by Charles M. Barr, LVRG has facilitated more than $1 billion in business loans to over 10,000 established businesses nationwide. With direct lending capabilities and strategic partnerships with leading institutional funds, commercial lenders, and banks, LVRG Business Funding delivers creative financing solutions ranging from $50,000 to $50 million across multiple asset classes and industries.

LVRG Business Funding is built on integrity, professionalism, and an unwavering commitment to client success. The company serves businesses throughout Detroit, Metro Detroit, and across the United States with working capital financing, revenue-based financing, SBA loans, business acquisition funding, and big ticket equipment financing. LVRG's approach combines deep market expertise with access to competitive capital sources, ensuring business owners receive optimal terms and execution excellence.

LVRG Business Funding Office Phone: (855) 998-5874

Commercial Real Estate Financing | Metro Detroit Office, Industrial & Retail Properties | LVRG Funding

Those 'For Sale' Signs Have Been Sitting Too Long

Drive through Metro Detroit and the pattern is unmistakable.

Warren: Industrial buildings with 'For Lease' banners that have been there for months.

Troy: Office space with 'Available' signs collecting dust.

Sterling Heights: Manufacturing facilities sitting empty while profitable businesses a mile away write $30,000 monthly rent checks.

The problem isn't lack of demand. Metro Detroit has profitable businesses that need these spaces. The problem is financing execution—or more precisely, the lack of it.

Business owners get declined by their bank and assume they don't qualify. Brokers submit to one lender, get a rejection, and the deal dies. Traditional commercial loans require 30% down that ties up working capital needed for operations.

Meanwhile, the right financing structure—SBA 7(a), SBA 504, or properly structured conventional financing—would get the deal done with 10-15% down, reasonable terms, and a closing timeline that doesn't kill the transaction.

LVRG facilitates commercial real estate financing for established Michigan businesses acquiring owner-occupied office, industrial, and retail properties. We provide the capital structure and lender access that gets deals closed when execution actually matters.

Why Businesses Purchase Commercial Real Estate Through LVRG

Platform Access, Not Single-Lender Limitations

Most businesses approach commercial real estate financing through one bank relationship or one broker with limited lender access. When that lender declines or offers unfavorable terms, the transaction dies.

We maintain active relationships with 15+ institutional commercial real estate lenders, SBA-preferred banks, and specialized CRE financing sources across multiple capital structures.

Your transaction gets evaluated against the full lending landscape—not just one bank's current appetite. If one lender declines based on property type, we have alternatives that specialize in that asset class. If one bank's pricing isn't competitive, we have options with better terms.

This isn't theoretical—it's how we've closed transactions after multiple bank declines when the business and property fundamentals were sound but the initial lender match was wrong.

Execution That Actually Happens

Commercial real estate transactions fail from coordination breakdowns, not business problems.

The bank wants updated financials. SBA needs additional documentation. The appraiser has questions about property condition. Environmental assessment reveals concerns requiring management. Title work uncovers lien issues.

Each delay compounds. Sixty-day closings become ninety days, then 120. Sellers get frustrated. Purchase agreements expire. Financing contingencies lapse.

We coordinate the entire process—bank underwriting, SBA processing, appraisal management, environmental consultants, title work, and attorney coordination—simultaneously rather than sequentially.

You communicate with one point of contact who manages everything else. No confusion about who needs what or when. No surprises three days before closing. No finger-pointing between parties when issues arise.

Most transactions close in 60-75 days for SBA programs, 35-45 days for conventional financing. Not because we rush the process, but because we manage it properly from day one.

Institutional Capital Access With Boutique Attention

Our lending volume and bank relationships deliver pricing advantages typically reserved for much larger transactions. Negotiated rate structures with SBA-preferred lenders. Reduced fee arrangements. Optimized closing costs.

The institutional access provides capital on terms that standalone brokers and single-bank relationships can't match.

The boutique operating model ensures you're not handed off to junior processors or left wondering about transaction status. You work directly with senior advisors who have closed hundreds of commercial real estate transactions and understand how to structure financing that actually funds.

Twenty Years, $1 Billion Funded, 10,000+ Businesses

LVRG's track record isn't marketing language—it represents demonstrated execution across market cycles, transaction types, and business situations.

We've structured deals banks initially said were impossible. We've saved transactions that other brokers abandoned. We've consistently delivered financing when execution matters most.

That track record exists because we've built the lender relationships, developed the process expertise, and maintained the reputation that makes lenders want to close our deals.

Commercial Real Estate Financing Programs

SBA 7(a) Commercial Real Estate Loans

The most versatile commercial real estate financing for businesses needing maximum flexibility.

Loan amounts up to $5 million with terms to 25 years for commercial real estate. Down payments typically 10-15% depending on transaction specifics and borrower strength.

The key advantage over 504 loans: ability to include working capital, soft costs, and equipment beyond just real estate. For businesses acquiring property as part of broader growth initiatives, the 7(a) structure provides capital for multiple business needs in one financing package.

LTV up to 90% on commercial real estate. Rates currently ranging 9-11% depending on loan size, term, and business profile. Variable rate structure tied to prime, though some lenders offer fixed-rate options for portions of the loan.

Best for: Businesses needing commercial real estate financing combined with working capital or equipment funding, or transactions where flexibility matters more than absolute lowest down payment.

SBA 504 Commercial Real Estate Loans

Fixed-rate financing specifically designed for commercial real estate and equipment purchases.

Total project sizes from $1 million to $20 million+, with the SBA portion capped at $5.5 million for manufacturing and energy-efficient projects, $5 million for standard commercial real estate.

The 504 structure uses three funding sources: A bank provides 50% of project cost, an SBA-backed lender provides up to 40%, and the business contributes 10% down payment.

The SBA portion carries a fixed rate for the full loan term (10, 20, or 25 years)—providing rate certainty on 40% of the total financing that conventional commercial loans can't match.

Current SBA portion rates: 5.5-6.5% fixed for life. Bank portion rates: 6-8% fixed or variable. Combined effective rate typically 6-7% depending on structure.

No balloon payments. Fully amortized terms. Monthly payments and total borrowing costs known with certainty from day one.

Best for: Businesses focused exclusively on commercial real estate or equipment acquisition who want the lowest possible down payment, true fixed-rate financing, and predictable long-term costs.

Conventional Commercial Real Estate Financing

Traditional commercial mortgages for businesses with strong financials and larger down payment capacity.

Loan amounts up to $10 million+ depending on lender and property type. Down payments typically 20-30%. Terms from 5 to 25 years with various amortization structures.

Rate options include fixed-rate terms (typically 5-10 years) and variable-rate structures. Current rates generally 7-12% depending on property type, LTV, borrower strength, and term.

Most conventional commercial loans include balloon payment provisions after 5-10 years requiring refinancing or payoff. Rate adjustment provisions can create payment uncertainty over time.

The primary advantage: Speed. Conventional commercial financing typically closes 15-25 days faster than SBA programs because it avoids SBA processing requirements and documentation.

Best for: Businesses with substantial cash reserves who prioritize closing speed over down payment minimization, or situations where SBA programs don't fit the transaction structure.

Metro Detroit Commercial Real Estate Success Stories

Manufacturing Expansion: Auburn Hills Precision Manufacturing

Business profile: Established precision manufacturing company serving automotive and aerospace markets, $6.8 million annual revenue, 42 employees.

Challenge: Outgrew existing 28,000 square foot leased facility. Production capacity maxed out. Turned away contracts due to space limitations. Landlord unwilling to expand or modify building for specialized equipment requirements.

Transaction: $9.5 million SBA 7(a) loan facilitated through LVRG's banking partners.

Structure breakdown:

• Commercial building purchase: $6.2 million (55,000 sq ft industrial facility)

• Equipment financing: $2.8 million (CNC machining centers, material handling systems)

• Soft costs and working capital: $500,000

• Total project: $9.5 million

• Down payment: $1.14 million (12%)

• Monthly payment: $61,400

Previous monthly rent: $18,200 for inadequate space.

Results: Consolidated all operations into owned facility. Production capacity increased 190%. Added second shift. Hired 23 additional employees. Revenue increased to $11.4 million within 18 months. Building appreciated $780,000 in three years while building $890,000 in equity.

The transaction almost didn't happen—initial bank declined due to equipment concentration concerns. LVRG connected the business with an SBA-preferred lender specializing in manufacturing, restructured the application to emphasize contract pipeline and industry expertise, and closed in 71 days.

Professional Services: Troy Engineering Firm

Business profile: Civil engineering and land surveying firm, $3.2 million revenue, 18 employees, 15 years in business.

Challenge: Paying $24,500 monthly for 9,500 square feet of office space. Lease renewal approaching with 18% rent increase. Needed to control costs and stop funding landlord's equity.

Transaction: $2.8 million SBA 504 loan for office building purchase.

Structure breakdown:

• Office building: $2.8 million (12,000 sq ft, Troy business district)

• Bank portion: $1.4 million (50%)

• SBA portion: $1.12 million (40%)

• Down payment: $280,000 (10%)

• Monthly payment: $17,800

Outcome: Eliminated $24,500 monthly rent. New monthly payment $17,800—saving $6,700 per month ($80,400 annually). Rented 2,500 unused square feet to complementary business for $4,200 monthly, reducing net occupancy cost to $13,600.

Built $340,000 in equity over first four years. Property appreciated $420,000. Total wealth creation from real estate: $760,000 while reducing monthly costs 45%.

The firm initially planned to continue renting, assuming commercial real estate purchase wasn't feasible. The SBA 504 structure with 10% down made ownership possible without depleting working capital needed for operations.

Distribution Center: Romulus Industrial Warehouse

Business profile: Industrial distribution company serving manufacturing sector, $8.4 million revenue, three leased warehouse locations.

Challenge: Operating from three separate leased warehouses totaling 95,000 square feet. Combined monthly rent: $47,800. Inefficient operations from split inventory and redundant systems. Lease expirations staggered over 18 months creating uncertainty.

Transaction: $7.2 million conventional commercial real estate loan.

Structure breakdown:

• Warehouse purchase: $7.2 million (140,000 sq ft, Romulus industrial park)

• Down payment: $1.8 million (25%)

• Term: 20 years

• Monthly payment: $48,600

Results: Consolidated three locations into single owned facility. Reduced occupancy cost despite higher square footage. Eliminated duplicate equipment and redundant staff—$180,000 annual savings. Inventory management improved dramatically. Shipping efficiency increased 35%.

Monthly rent previously: $47,800 across three locations for 95,000 sq ft. Current monthly payment: $48,600 for 140,000 sq ft owned building.

Effective cost per square foot dropped 42% while gaining 47% more space. Building equity monthly while previously every dollar went to landlords. Property positioned for significant appreciation as Romulus industrial corridor continues development.

The business initially pursued SBA 504 financing but timeline requirements made conventional financing better fit. LVRG structured the conventional loan with favorable terms through a specialized commercial real estate lender, closing in 38 days to meet seller's timeline.

Commercial Real Estate Financing Requirements

Business Qualifications

Established operations: Minimum two years in business with tax returns demonstrating consistent profitability.

Revenue requirements: Generally $500,000+ annual revenue, though specific requirements vary based on property size and transaction structure. Larger properties naturally require stronger revenue to support debt service.

Cash flow adequacy: Demonstrated ability to service proposed debt from business operations. Most lenders require 1.20x to 1.25x debt service coverage—meaning cash flow available for debt payment should exceed proposed payment by 20-25%.

Owner-occupancy: SBA programs require business to occupy minimum 51% of purchased property for own operations. Remaining 49% can be rented to other tenants. Conventional financing offers more flexibility on occupancy requirements.

Industry compliance: Business must operate in SBA-eligible industry. Most commercial and industrial businesses qualify. Certain industries (passive real estate investment, speculation, lending) don't qualify for SBA programs but may qualify for conventional financing.

Personal Credit Requirements

680+ credit score: Preferred range for best terms and broadest lender access.

650-680 credit score: Workable with strong business financials, substantial down payment, or compensating factors like industry experience and contract backlog.

Below 650 credit score: Increasingly difficult regardless of business strength. Some transactions possible with exceptional circumstances, though lender options narrow significantly.

Credit history matters beyond just score. Medical debt and divorce-related credit issues generally viewed more favorably than recent business failures, judgments, or tax liens. Lenders evaluate credit in context—what caused the issues, when they occurred, and how they've been resolved.

Down Payment Requirements

SBA 7(a): 10-15% depending on property type and business strength. Standard commercial real estate typically 10%, special-use properties may require 15%.

SBA 504: 10% for standard commercial real estate. 15-20% for special-use properties like gas stations, hotels, or businesses with limited operating history.

Conventional: 20-30% depending on lender, property type, and borrower profile. Some lenders require 25% minimum, others offer 20% programs for exceptional credits.

Down payment sources: Cash, seller financing (with restrictions), equipment value, existing building equity. SBA programs allow various down payment structures beyond pure cash requirements.

Property Requirements

Owner-occupied commercial real estate: Office buildings, industrial facilities, warehouses, retail buildings, manufacturing plants, mixed-use properties where business occupies at least 51%.

Property condition: Acceptable for intended use with no significant environmental concerns or deferred maintenance that threatens property value. Properties requiring substantial rehabilitation may qualify with renovation financing structured into the loan.

Appraisal requirements: Property must appraise at or above purchase price. Lenders typically require full commercial appraisal from licensed commercial appraiser familiar with local market.

Environmental assessment: Phase I environmental assessment required for virtually all commercial real estate transactions. Phase II assessment required if Phase I identifies potential concerns.

Title requirements: Clear title with no liens, encumbrances, or legal issues that cloud ownership. Title insurance required at closing.

Understanding the Commercial Real Estate Financing Process

Initial Consultation and Property Evaluation

The process begins with understanding your specific situation: property type and location, purchase price and structure, business financials and credit profile, timeline requirements, and capital available for down payment.

This consultation determines optimal financing structure for your transaction. Not every deal fits SBA programs. Some situations require conventional financing. Others benefit from 7(a) flexibility versus 504 rate certainty.

We evaluate your qualification strength honestly—including likelihood of approval, probable terms, and realistic timeline. If your transaction isn't financeable currently, we explain what would need to change rather than wasting time on applications that won't fund.

Timeline: 1-3 days for initial evaluation and program recommendation.

Application and Documentation

Once optimal program is identified, formal application begins with comprehensive documentation package.

Required documentation includes: Two years business tax returns, two years personal tax returns, current business financial statements (profit & loss, balance sheet), personal financial statement, business debt schedule, purchase agreement or letter of intent for property, corporate documents and business licenses.

Additional documentation may be required based on business type, transaction structure, or lender requirements. Manufacturing businesses may need equipment schedules. Service businesses may need customer concentration analysis. All businesses need basic business plan or narrative explaining operations and market position.

We handle document preparation and organization—ensuring lenders receive complete packages that expedite underwriting rather than triggering endless follow-up requests.

Timeline: 7-14 days for complete documentation package assembly.

Underwriting and Approval

Multiple parties review commercial real estate transactions simultaneously: Bank underwriting evaluates credit, business strength, and property. SBA reviews compliance with program requirements (if applicable). Third-party providers complete appraisal, environmental assessment, and other due diligence.

Most transaction delays occur during this phase—not because underwriting is slow, but because coordination is poor. Appraiser needs access to property but can't reach seller. Environmental consultant has questions that sit unanswered. Bank underwriter requests additional documentation that takes weeks to provide.

We manage all coordination proactively. Appraiser gets property access scheduled immediately. Environmental questions get answered same day. Bank requests get fulfilled within 24-48 hours maximum.

The result: Underwriting proceeds efficiently rather than stalling repeatedly.

Conditional approval typically issued after bank and SBA (if applicable) complete initial review. Conditional approval means "yes" subject to satisfying specific requirements—updated insurance, final appraisal review, resolution of title issues, or other standard conditions.

Timeline: 25-40 days from application to conditional approval, depending on program and property complexity.

Closing Preparation

After conditional approval, final conditions get satisfied and closing documents get prepared.

Title company completes title work, surveys property boundaries, and prepares title insurance. Insurance agent provides required property and liability coverage meeting lender specifications. Attorneys review purchase agreements and prepare closing documents.

All parties coordinate closing date that works for buyer, seller, and lenders. Closing typically occurs at title company or attorney's office with all parties executing documents and funds disbursing.

Timeline: 15-25 days from conditional approval to closing.

Total Transaction Timeline

SBA 7(a) and 504 programs: 60-75 days from application to closing for straightforward transactions. Complex properties or situations requiring additional due diligence may extend to 90 days.

Conventional financing: 35-50 days from application to closing depending on lender and property specifics.

These timelines assume complete documentation, responsive parties, and no significant property issues discovered during due diligence. Delays occur when sellers restrict property access, businesses struggle to provide complete financials, or title/environmental problems emerge requiring resolution.

Why Not Just Go Directly to a Bank?

This is the obvious question, and it deserves a direct answer.

You can absolutely approach banks directly for commercial real estate financing. Many businesses do. Some succeed. Many don't—not because they don't qualify, but because they approached the wrong bank for their specific situation.

Here's what most businesses don't understand about commercial real estate lending:

Banks Have Specific Appetites

Bank A loves office buildings but won't touch industrial properties. Bank B specializes in manufacturing facilities but avoids retail. Bank C focuses on transactions over $5 million and shows little interest in smaller deals. Bank D prefers businesses with 10+ years operating history and minimal credit tolerance for younger companies.

These preferences aren't published on websites. They change quarterly based on portfolio composition and internal risk metrics. They vary by local market conditions and recent loss experience.

When you approach Bank A directly for industrial property financing, they may decline—not because you don't qualify, but because industrial properties don't fit their current lending focus. You assume you don't qualify. Deal dies.

If you had approached Bank B (which actually wants industrial property loans), you would have been approved with favorable terms.

The problem isn't your qualification—it's lender matching.

Banks Price Differently

Two banks both approve your commercial real estate transaction. Bank X offers 8.5% rate with 25% down. Bank Y offers 7.75% rate with 20% down.

On a $3 million property, that difference means:

• Bank X: $750,000 down, $18,400 monthly payment

• Bank Y: $600,000 down, $16,900 monthly payment

Bank Y saves you $150,000 upfront and $1,500 monthly ($18,000 annually).

Over 20 years, the total difference exceeds $500,000.

Both banks approved you. But direct relationship with Bank X meant you never knew Bank Y existed or offered better terms.

Banks Don't Coordinate Complex Transactions

Commercial real estate transactions involving SBA programs require coordination between conventional bank, SBA-backed lender, SBA authorization, and multiple third parties.

Most commercial lenders don't want to manage that complexity for individual borrowers. They process their portion and assume someone else handles the rest.

When coordination fails—and it frequently does without experienced management—transactions stall, timelines extend, and deals die despite having approval.

Banks Won't Tell You When They're Not the Right Fit

If you approach a bank that doesn't really want your transaction (wrong property type, too small, outside their typical profile), they might:

Process your application slowly, hoping you withdraw Request endless additional documentation that signals lack of interest Quote uncompetitive terms that effectively price you out Eventually decline after wasting 60 days

They won't say "We're not really interested in this deal, you should try Bank Z instead." That's not how banks operate.

Our Value Is Simple

We know which lenders want which transactions. We know current pricing across multiple banks. We coordinate complex deals that require expertise beyond single-lender processing.

You can absolutely approach banks directly. Some transactions will work fine. Others won't—not because you don't qualify, but because lender matching, pricing comparison, and process coordination create obstacles that sink viable deals.

That's what we solve.

Frequently Asked Questions: Commercial Real Estate Financing

Can I finance commercial real estate purchase and working capital together?

Yes, with SBA 7(a) loans. The 7(a) program allows working capital inclusion alongside commercial real estate financing—providing capital for multiple business needs in single loan package.

SBA 504 loans cannot include working capital. The 504 program restricts financing to commercial real estate and equipment only.

If you need both property financing and working capital, the 7(a) structure provides that flexibility despite slightly higher down payment than 504 programs.

What if I want to rent part of my building to other businesses?

SBA programs require you occupy at least 51% of purchased property for your own business operations. The remaining 49% can be rented to outside tenants.

Example: Purchase 20,000 square foot building. Your business occupies 11,000 square feet (55%). You rent remaining 9,000 square feet (45%) to other businesses. This structure qualifies for SBA financing.

Rental income from tenant space is considered when evaluating transaction cash flow and debt service coverage. Many businesses effectively reduce their occupancy costs significantly by renting unused space to quality tenants.

Conventional commercial financing typically allows more flexibility on occupancy requirements, including properties with less than 51% owner-occupancy.

How much do I need for down payment on commercial real estate?

Down payment requirements vary by program:

SBA 7(a): 10-15% typical SBA 504: 10% for standard commercial property, 15% for special-use properties Conventional: 20-30% depending on lender and property

For $3 million commercial building:

• SBA 504: $300,000 down (10%)

• SBA 7(a): $300,000-$450,000 down (10-15%)

• Conventional: $600,000-$900,000 down (20-30%)

The down payment difference of $300,000-$600,000 represents capital that remains in your business for operations rather than going into property acquisition.

What credit score do I need for commercial real estate financing?

680+ credit score: Preferred range for best terms and most lender options.

650-680 credit score: Workable with strong business performance and solid compensating factors.

Below 650 credit score: Difficult regardless of business strength, though not impossible with exceptional circumstances.

What matters beyond the score: What caused credit issues? When did issues occur? How have they been resolved? Medical debt and divorce-related credit problems are viewed differently than recent business failures or tax liens.

We've closed commercial real estate transactions with credit scores in the 620-640 range when business fundamentals were exceptional. We've also seen 720 credit scores get declined when business performance was marginal. Credit is one factor among many, not the sole determinant.

Can I refinance my existing commercial real estate mortgage?

Refinancing existing commercial mortgages through SBA programs is generally difficult unless combined with substantial expansion or improvement—typically requiring 20%+ additional investment beyond current loan balance.

Example: Current building worth $2 million with $1.2 million mortgage. Straight refinance of existing $1.2 million generally won't qualify for SBA programs. However, if you're adding $500,000 building expansion, the combined financing of $1.7 million may qualify.

Conventional commercial refinancing is more accessible without requiring substantial additional investment, though rates and terms may be less favorable than original SBA program structures.

How long does commercial real estate financing take?

Typical timelines from application to closing:

SBA 7(a) and 504: 60-75 days for straightforward transactions, up to 90 days for complex properties or situations requiring additional due diligence.

Conventional commercial financing: 35-50 days depending on lender and property specifics.

Timeline assumes complete documentation, responsive borrower and seller, and no significant property issues discovered during appraisal or environmental review.

Delays typically stem from incomplete documentation, restricted property access for appraisers, title problems, or environmental concerns requiring remediation plans.

What if one bank declines my commercial real estate loan application?

Single bank decline doesn't determine your overall qualification for commercial real estate financing.

Banks decline applications for multiple reasons beyond borrower qualification: Property type doesn't match current lending focus. Transaction size falls outside preferred range. Local market concentration limits additional exposure. Recent portfolio losses in similar property types create temporary avoidance.

We've closed hundreds of transactions after initial bank declines—not because we changed the borrower's qualifications, but because we matched the transaction with lenders whose criteria aligned with the deal specifics.

One decline is a data point. It's not a verdict.

Can newer businesses qualify for commercial real estate financing?

Difficult with less than two years operating history, though not impossible with exceptional circumstances.

Businesses with 12-24 months operations may qualify with:

• Higher down payment (15-20%)

• Stronger personal credit (700+)

• Substantial industry experience prior to business launch

• Strong financial performance and customer contracts

• Comprehensive business plan demonstrating market position

Most lenders strongly prefer two years business tax returns demonstrating consistent profitability. Exceptions exist but require compelling compensating factors beyond just "business is doing well."

What happens if the property doesn't appraise for purchase price?

Appraisal shortfalls create financing obstacles because lenders will only finance based on appraised value, not purchase price.

Example: Purchase price $2 million, appraisal comes in at $1.8 million. Lender will only finance $1.8 million (or applicable percentage based on LTV requirements).

Options when appraisal comes in low:

• Renegotiate purchase price with seller based on appraisal

• Increase down payment to cover shortfall

• Challenge appraisal if methodology or comparables are questionable

• Walk away from transaction if financing gap can't be resolved

We work with appraisers who understand commercial properties and provide detailed comparable analysis. Most appraisal issues can be anticipated during initial property evaluation, allowing problems to be addressed proactively rather than surprising everyone three weeks into the transaction.

Ready to Purchase Your Metro Detroit Commercial Real Estate?

Every month you pay rent is another month building someone else's equity instead of your own. Every lease renewal is another negotiation where you have no leverage. Every landlord restriction is another limitation on how you run your business.

Commercial real estate ownership changes all of that.

LVRG facilitates commercial real estate financing for Michigan businesses ready to stop renting and start building equity through property ownership.

Here's what happens next:

Call (855) 998-LVRG right now. We'll spend 15-20 minutes understanding your property acquisition plans, reviewing your business and credit profile, and explaining whether commercial real estate financing makes sense for your situation.

If we can help, you'll have a financing structure and timeline by tomorrow.

If we can't help currently, we'll explain exactly why and what would need to change to make financing viable.

No generic presentations. No pressure tactics. Just straight answers about your specific situation and whether we can execute the financing you need.

Michigan businesses purchase commercial real estate through LVRG because we deliver what others promise: execution that actually happens when timeline matters.

Contact LVRG:

📞 (855) 998-5874 Monday-Friday, 9am-6pm EST

📧 cbarr@lvrgllc.com 24-hour response

🌐 LVRGFUNDING.com/apply

Charles M. Barr CEO | LVRG Business Funding Michigan's Business Financing Authority

📱 (855) 998-LVRG 📧 cbarr@lvrgllc.com 🌐 LVRGFUNDING.com

Michigan Based | Nationwide Reach

LVRG Business Funding is a loan broker facilitating commercial real estate financing through institutional lending partners. All loans subject to credit approval. NMLS disclosure and licensing information available upon request.