More Cash Funding

The 7(a) is the SBA’s most widely used loan program. While the loan is partially guaranteed by the Small Business Administration, the financing is delivered through an approved SBA lender. This way, you can borrow anywhere between $20,000 and $5 million for as long as a 10-year term.

The SBA’s 7(a) loan program is attractive to many small business owners for its below-market interest rate. If you apply through More Cash Funding’s network of lending partners, you’ll see that the interest rate is currently set at Prime + 2.75% (currently 6%).

Payments are made monthly and you won’t face any fees for early repayment. Your business should have an operating history of at least three years to qualify. Use the proceeds for working capital, refinancing debt, making major purchases, and more. Learn more about applying for an SBA 7(a) loan through More Cash Funding.

Term loans are one of the most popular types of small business loans. If you’ve ever taken out a mortgage or financed a vehicle purchase, then you’re probably familiar with the mechanics of a term loan.

Term loans are delivered via a lump-sum of capital from a lender and paid off in fixed installments according to a schedule until you pay back the principal plus any applicable interest (and any fees).

Repayment periods can vary from short term (12 months or less) to medium term (1 -3 years) to long term (3+ years). Term loans are typically secured by a lien on your business assets (a right for the lender to seize those assets if you default on the loan) and may require a personal guarantee, which means your personal assets may be liable if your business defaults on the loan.

One of the perks of a term loan is that the interest rate, which could be either fixed or variable, tends to be competitive and lower than other types of small business financing. This is especially true when you consider that you may be repaying the loan over a number of years.

Business owners have flexibility with regards to how they can use the funds. For instance, one could use a small business term loan to expand to a new location, replenish inventory, or hire new employees.

Merchant cash advances (MCAs) aren’t exactly small business loans. Instead, they’re a cash advance against your future credit card revenue delivered to you in a lump-sum.

The advanced amount, which can be anywhere from $2,500 to $400,000 is determined by the issuer and based on your average monthly credit card sales. For example, through More Cash Funding’s network of lending partners, this amount is between $5,000 and $500,000.

Because the cash advance is repaid as a percentage of your daily credit card revenue, it may take anywhere from 90 days to two-and-a-half years to repay. One of the key risks of MCAs is piling on too many of them – known as stacking – which may completely deplete your cash flow.

You should also be aware that interest rates (often expressed as a factor rate) can be very high, ranging between 40-350%. Learn more about applying for a merchant cash advance through More Cash Funding.

A working capital loan is a short-term loan meant to help a business cover its everyday operations needs.

It can be directed toward expenses such making payroll, paying rent, or making debt payments.

A working capital loan is not meant to buy long-term assets or investments.

You can apply for a working capital loan through More Cash Funding and receive a decision in as little as 24 hours.

The speed of approval is one of the best aspects of this small business loan. Learn more about applying through More Cash Funding.

A line of credit is a flexible form of short-term financing. You have a set amount of available credit which you can access as you need.

With a business line of credit, you do not make any payments or pay any interest until you actually use the funds. A line of credit is ideal for unexpected expenses so that you don’t have to rely on cash flow when emergencies arise.

For instance, having to replace a major piece of equipment or offsetting a seasonal decline in revenue. A line of credit could be in the range of $5,000 to $500,000 or more.

When you apply through More Cash Funding’s network of lending partners, this range is $6,000 to $250,000. With a line of credit, you’ll only pay interest on the funds you draw.

However, there may be other fees attached to lines of credit like monthly maintenance fees, draw fees, and late payment fees. Learn more about applying for a line of credit through More Cash Funding.

Invoice factoring is more similar to an MCA than it is to a business loan. Invoice Factoring works by selling your accounts receivables to an invoice factoring company (also called a ‘factor’) at a discounted rate in exchange for two lump-sum payments.

The first payment is the advance (which represents the discounted invoices) – an upfront payment of 70-90% of the factored invoices, and the second payment is for the remaining balance (minus any fees) once your customers pay the invoices in full.

The first lump-sum through More Cash Funding’s network of lending partners is between 85-90%. Invoice factoring is best for businesses that need to cover inventory costs or upfront expenses but have delayed payment terms with their customers.

The benefit of invoice factoring is that your account receivables are quickly turned into cash rather than having to wait months for customers to pay. Learn more about applying for invoice factoring through More Cash Funding.