Choosing the Best
Business Financing Loan Program
We offer business financing options for a wide variety of business owners nationwide. No matter what, there will be a time where you need access to funding solutions. Whether it’s to expand your current operation, hire new team members, cover cash flow, purchase real estate, or simply grow and move forward — funds are a necessity.
Traditional banks have limited financing products and they are well known for strict guidelines to get a bank loan. AdvancePoint Capital’s marketplace has a wide range of business finance products to choose from. Product development is always something we look for out in the business finance marketplace. We can help you find a variety of other business financing options and are experts in small business lending. Let us be your guide and navigate you through the process of finding money for you.
Get Started Today
AdvancePoint Capital makes the loan application process a simple, straightforward experience.
How Do You Finance a Business?
While the traditional route of going through established banks for financing a business oftentimes is reliable for rates and terms, it’s not necessarily the most convenient and speedy way to get the cash you need now. Lengthy processes can be a massive burden for an operation, putting a cog in their wheel of operations and causing issues in the short term. Furthermore, traditional funding from banks has extremely high qualification standards, requiring great scores and longer time in business than alternative funding opportunities. Now, we’re blessed with a wide variety of business financing possibilities through traditional routes such as banks, government-guaranteed loans, and alternative online lenders like AdvancePoint Capital. Small businesses have more options than ever before through these lenders, with more and more access to financing options that fit their exact needs. Whether it’s with a business line of credit, term loans, business credit cards, and more — top lenders are offering incredible opportunities for business owners like you.
What Are Your Small Business Financing Options?
When it comes to offering business financing nationwide, AdvancePoint Capital has an incredible amount of resources, tools, and options that business owners can take advantage of. Through various loan products, cash advances, lines of credit, and more — you can find the right funding for the right time.
Small Business Loan (Term Loans)
Business Line of Credit
U. S. Small Business Administration
(SBA ) Loans
Business Credit Card
Business Cash Advance
Merchant Cash Advance
Why Do You Need Small Business Financing?
Understanding why you need a small business loan or other business financing solution can help guide your choices when it comes to particular funding products. What is your priority for getting business funding?
Working capital is perhaps the most popular springboard for financing business. Why? Because it applies to a wide range of cash flow problems. Keeping up with daily operational costs is a must.
Whether it’s to get more inventory, a new venture, acquiring essential employees, research, or development and more — having business financing options available can play a big role in the growth of your business — even with a real estate purchase.
For some industries, equipment is the workforce that guarantees its success. The issue is that equipment can be an extremely costly expense. Having equipment loans and lease options is a must for businesses that rely on equipment for their everyday operations.
Infrastructure | Invest in the Business
Moving to a new location or opening up an additional location requires a ton of funds. For businesses looking to expand and make invest in growth, funding options offer peace of mind when it’s time to scale up.
It’s also important to factor out how much you need for your operation. It’s all about projecting future needs and determining the amount that makes sense for you.
By applying a business loan affordability test, you can evaluate your business’s financial situation — helping you calculate where you sit. A monthly profit and loss assessment can illuminate how much you can actually afford in a monthly loan payment. Furthermore, your business’s monthly revenue can be calculated through business bank statements — just keep an eye out for monthly deposits. Finally, take a look at your monthly expenses, put it all together, and you can get your net profit.
Finally, you can start to piece together your budget. You need to know what you’re able to afford in order to choose the right small business loan product. By evaluating trends over months (not just one month), you can see if sales are declining or increasing. Understanding what you can handle will get you far when weighing out your financing options.
How to Qualify for a Small Business Loan
There are a few factors involved in your approval.
1. Credit Worthiness: Credit Score
How does your personal credit and credit report as a business owner affect qualifying for small business financing?
Personal credit score information of the business owner plays a significant role in determining what, if any, loans you can be approved for by lender loan applications. As a business owner, the better your personal credit is, the more business funding options you will have to choose from. However, it’s essential to know that not all financing offers involve a personal credit check.
How to Understand, Review, and Analyze your Credit
A smart thing to do is pull your own credit information using all three credit bureaus to see your credit scores: Equifax, Experian, and TransUnion. (Be wary of sites that offer you “a credit score” as that may be another credit risk model other than FICO.)
FICO credit score risk model:
What is a good credit score to get approved during a business loan process?
As a rule of thumb, a 750 FICO score and up is Excellent, 720 FICO and higher is good, 680 FICO and higher is Fair, below 680 to 620 FICO is marginal, and below 620 is considered poor. For the most part, the longer the term and the lower cost small business loans will require the highest credit scores and standards.
2. Length of Time
How long you have been in business is a significant factor in determining qualifications and repayment guidelines for loan products. Let’s face it; business lending is a risky business. Business lenders need to see a track record to take a calculated risk in providing you a term loan. Many small businesses don’t make it past the first year in business, so obviously, business lenders will be cautious if you have less than two years in business when providing loans.
3. Financial Statements
What financial documents and information will business lenders need for small company loans?
Business Bank Statements
Almost all small loans will require bank statements to review. Typically three months are needed, but sometimes 6 to 12 months may be necessary if the business is seasonal or has made a considerable loan amount request. Bank statements show business lenders the cash flow activity of the company and your ability, as the business owner, to manage the business’s finances.
Profit & Loss and Balance Statements
These statements provide a more detailed view of the business and its health and may be required for the longer-term and lower-cost term loan options. The good news is that Profit & Loss and Balance Sheet statements typically are not necessary for alternative business lending products.
Business and Personal Tax Return
Some business lenders will need to see tax returns. If that is going to be a challenge, there are a lot of alternative business online lenders who will not require these documents, but keep in mind, most likely, the term loan offers you receive will be impacted by the lack of documentation and therefore be reflected in the costs and repayment guidelines you will be provided.
How to Qualify for Business Financing
There are some essential components that everyone who owns a business should be aware of when it comes to qualifying for business financing. New owners and seasoned entrepreneurs alike can benefit from understanding what goes into qualifying for small business loan opportunities.
Personal and business credit scores play a substantial role in determining which loans you may qualify for. Obviously, the better your personal history is — the better off you will be. However, there are still options available for those with less than stellar credit. If you’re wondering about your history, take advantage of all three credit bureaus: Equifax, Experian, and TransUnion. Your FICO score is determined by different aspects of data, but it can be understood fairly easily with five main areas.
- Payment history
- Amounts owed
- Length of credit history (in years)
- New credit
- Credit mix
In order to qualify for funding, your business credit score will play a big role. Generally speaking, a 750 FICO score is considered excellent. But let’s break down the rest:
- 720 or higher is considered good.
- 680 or higher is considered fair.
- Between 680 – 620 is marginal
- Below 620 is considered poor
If you’re wondering how this may play a role in which loan opportunities you could qualify for, here’s what to consider. Longer terms and lower-cost small business loans look for higher scores and will require the most.
Length of Time
Time in business also plays a role in determining whether or not your small business may qualify for small business financing. It can also affect the terms for specific loan products. Business lenders need assurance that companies have a track record to calculate risks associated with the loan or advance. Since many businesses fail to make it past the first year in business, lenders are wary to assist with funds, especially if you have less than two years in business. However, AdvancePoint Capital believes in empowering small businesses, which is why we have less stringent requirements for time in business. While terms and costs may be higher than traditional loan institutions for certain loan amounts and products from alternative financing providers, for some businesses, it’s a sound option to get the cash you need — when you need it.
In order for you to get certain loan products, a business lender will need financial documents to evaluate. How critically a lender evaluates these financial statements depends on what type of small business financing solution you’re trying to qualify for, however, there are three basic documents you should have ready.
Business Bank Statements
Nearly all small business loans require bank statements. Though the amount may vary, 3 months’ of company bank statements are usually required. For some, it could be between six to twelve month’s worth. This is typically true for seasonal businesses or those that have made a significant loan request. Bank statements illustrate cash activity and the state of a business’s finances.
Profit & Loss + Balance Statements
These documents offer a clearer window into the state of operations and may be required in order to qualify for longer terms and lower-cost business financing opportunities. However, alternative business lending options do not typically require these statements.
Business and Personal Tax Return
Now, some business lenders may ask to see tax returns. This is especially true for traditional financing institutions like banks. However, many alternative online business lenders do not require these documents. It’s important to note that having these on-hand can greatly expand your options — leading to a diverse lineup of financing choices for you.
How Do I Get Financing For a Small Business? We Can Help.
Small businesses nationwide are constantly on the hunt for a funding option that fits their company needs. If your small business needs funding, AdvancePoint Capital offers a wide range of financing opportunities to suit your needs. Whether you’re dealing with poor history, limited time in business, or lack of proper documentation — we can help you get the cash flow you need for your company. No matter the type of financing you’re looking for, we can help guide you.
Traditional bank loans and lenders can be a nightmare to qualify for, that’s where online lenders like AdvancePoint Capital can help you find what you are looking for and guide you. We provide finance options for your company, whether it’s by using outstanding invoices or future sales as collateral — or through avenues that are similar to credit cards, we can find flexible and affordable options for your small business today. Both new businesses and established ones need funds, and as your designated lender, offer a diverse lineup of loan products that can get you off your feet or to the next level.