Funding Services

Subordinated debt, often called a subordinated debenture, represents an unsecured loan or bond that ranks below senior loans or securities when it comes to claims on assets or earnings. Known as junior securities, subordinated debt poses a higher risk because, in borrower default situations, it is only paid after senior debts are fully settled.

A business equipment loan is designed specifically for buying equipment and is secured by the equipment being purchased.
The types of equipment eligible for financing include items like computers, office furniture, vehicles and large machines.
Eligibility requirements for equipment loans are similar to traditional loans, but some lenders may be more flexible because of the equipment that secures the loan.

Term loans are typically used by small businesses to purchase fixed assets like equipment or real estate, which are vital for operational growth and stability.
These loans provide a lump sum up front and require monthly or quarterly payments, offering either fixed or variable interest rate options, which adds flexibility in financial planning.
Short-term loans often run less than a year and might include balloon payments, while long-term loans can extend up to 25 years, using company assets as collateral.
The application for term loans involves demonstrating creditworthiness, which includes providing detailed financial statements to lenders.
Borrowers benefit from term loans through a relatively simple application process, downstream cost savings from lower interest rates, and the freeing up of cash flow for other business activities.

A line of credit secured by Accounts Receivable (A/R) is a type of financing that uses your invoices as collateral. It provides a revolving line that allows companies to draw up to 85% of their A/R.

Several products can provide a line secured by invoices. Your product choice is determined by your company’s size, history, financial health, and strategy.

Larger companies typically use bank lines of credit or asset-based loans. On the other hand, smaller companies often use sales ledger financing or invoice factoring.

A small business cash advance, often called a merchant cash advance (MCA), is not a
traditional loan. Instead, it is an advance on your future sales. A financing company gives you a lump sum upfront, and you repay it through a percentage of your daily credit card or debit card , or through fixed daily or weekly ACH withdrawals from your bank account. This arrangement makes MCAs attractive to businesses with high credit card transaction volumes, such as restaurants, retail stores, and service-based businesses.

A Small Business Administration loan is a small business loan guaranteed by the U.S. Small Business Administration (SBA). These loans can be used by businesses to cover startup costs, expansions, real estate purchases, and a wide range of other expenses. They are not issued directly by the government but by banks and other financial institutions. However, they do have government backing, making them less risky for lenders.

SBA loans are guaranteed by the U.S. Small Business Administration (SBA).
These loans are used by small businesses for startup costs, expansions, real estate purchases, and other expenses.
Banks and financial institutions issue SBA loans, which help businesses access capital with government backing.
SBA loans have strict eligibility requirements but competitive interest rates and fees.

How SBA Loans Work
SBA loans are used by thousands of businesses each year to borrow capital. Though they are called SBA loans after the U.S. Small Business Administration, this agency doesn't actually do the lending. Instead, the SBA works with a network of approved financial institutions that lend money to small businesses, and the SBA partially guarantees the loans.

The loan guarantee means that if the borrower is unable to pay back the loan to the lender, the SBA will step in and pay. This significantly reduces lenders' risks, which makes them more willing to lend to small businesses.

To reduce its own risk, the SBA requires an unconditional personal guarantee from everyone with at least 20% ownership in the company. This means that they are personally responsible for repaying the SBA if the business fails to make the payments.