AdvancePoint Capital Supports Small Businesses in the San Francisco Bay Area

The bay area is considered the cultural, commercial, and financial center of Northern California. San Francisco has a diversified economy with employment covering a wide range of professional services, including a world-renowned technology industry (Apple, Google, Facebook, and Twitter base their corporate headquarters in San Francisco). Financial services, tourism, leisure, hospitality, government services, education, health care, international trade, transportation, utilities, and many other service industries also feature prominently. 

But let’s not forget that the engine of the economy in the greater San Francisco bay area function’s around small businesses like restaurants, auto service repair shops, markets, dry cleaners, and other small merchants. Many times traditional banks have neglected these businesses, and that’s where AdvancePoint Capital can step in and help provide working capital to you. AdvancePoint Capital has a market place of lenders located in the bay area as well as across the country to service the needs of the small business community. 

Let’s explorer the ten most popular business funding options.

The 10 Best Small Business Financing Options for Greater San Francisco Bay Area Businesses

1. Long Term Business Loans in San Francisco

Long-term business loans extend beyond the duration of two years. Businesses are offered a fixed lump sum upfront that is repaid over an extended period of time. The interest rate is based on principal and interest. The most common use of funds is not cash flow but business expansion and growth or to finance large, long-term projects.\

Product Overview

Rates: Interest rates starting treasury index plus 1% to 2.5% 

Terms: 2 to 10 years

Fees: Origination fees 0% to 3%

Payments: Monthly or bi-weekly payments

Credit Standards: All credit considered, good to excellent credit preferred

Documentation: Standard documentation: business bank statements, financial statements, business tax returns 

Processing Times: 3 days to a couple of weeks depending on the lender

Benefits and Best Uses of Long Term Business Loans 

The main benefits of long term business loans are the length of time of repayment, the ability to access more capital than shorter-term business products, and the affordable monthly payments. This product funds the growth of a business or large long-term project.

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2. Business Line of Credit in San Francisco

A business line of credit is an open, revolving line of credit that allows business owners to draw funds when needed on-demand or make purchases up to a certain credit limit. Business lines of credit are not open-ended forever and require renewal either semi-annually or annually to be extended.  

Product Overview

Rates: Principal and interest rates start at treasury index plus 1% to 2.5%

Terms: Open revolving line of credit

Fees: Origination fees 0% to 3% 

Payments: Monthly, bi-weekly or weekly payments

Credit Standards: All credit considered, good to excellent credit preferred

Documentation: Standard documentation: 1-page application and three months of bank statements

Processing Times: Same day to a week depending on the lender 

Benefits and Best Uses of Business Line of Credit 

The biggest benefit of this option is flexibility. The ability to draw funds at any time up to the credit limit is a very popular feature. This function allows business owners to respond to cash flow or emergencies in real-time.

3. Small Business Administration (SBA) Loans in San Francisco

The Small Business Administration (SBA) provides programs, guidelines, and loan guarantees to approved lenders for businesses throughout the San Francisco bay area. The SBA is not a lender and merely provides a guarantee that gives the approved lender the ability to take on the risk of business lending. Without SBA guarantees, the approved lender would not be comfortable lending. SBA loans are very popular but unfortunately have low approval rates due to the requirements, guidelines, and restrictions. AdvancePoint Capital can help you through the process in an efficient and simple manner.  

Product Overview

Rates: Interest rates starting at treasury index plus 1% to 2.5%  

Terms: 3 to 25 years 

Fees: Origination fees range from 0% to 3%

Payments: Fixed monthly payments 

Credit Standards: Good to excellent credit preferred, but all credit considered

Documentation: Full documentation: Application, six months of business bank statements, two years of business tax returns, year to date profit and loss, and balance sheet. More documents may be requested upon review.

Processing Time: 1 week to a month depending on application volumes, SBA product selection, or other economic conditions.

Benefits and Best Uses of SBA Loans 

Benefits include the great rates, low fees, and long term duration of financing. The primary use of SBA loans is for business expansion and growth or to fund long-term projects.

4. Business Credit Cards in San Francisco

Business credit cards operate just like personal credit cards in that they are open lines of revolving credit that offer principal and interest rate with a set credit limit. A card is issued that can be used for making payments or purchases. It is not uncommon for business owners to utilize business credit cards as well as other business financing options.

Product Overview

Rates: Introductory rates starting at introductory rates of 0% up to 28.99% 

Terms: Open revolving line of credit with a set credit limit 

Fees: Annual fees range from $0 to $500

Payments: Flexible monthly payments

Credit Standards: Must have good to excellent credit and deep credit history

Documentation: No documentation for smaller amounts $3,000 up to $15,000. Larger credit limits may require documentation 

Processing Times: Instant approval to same day 

Benefits and Best Uses of Business Credit Cards 
The credit facility is an open, revolving line of credit that has the ability to draw money, make payments, and make purchases using a card.   

5. Short Term Business Loans in San Francisco

Short-term business loans are typically repaid with 6 to 18 months. This business loan features a lump sum of money offered up front with a fixed payback amount calculated using a factor rate. This option is popular with small businesses that cannot get approved through traditional means because of documentation requirements or credit tolerances.  

Product Overview

Rates: Factor rates range from 1.09% up to 1.45%

Terms: 6 to 18 months in duration (typically 12 months or less)

Fees: 0% to 5% origination fees

Payments: Weekly, bi-weekly and in some cases daily 

Credit Standards: All credit types considered 

Documentation: Reduced documentation: 1-page application and three months of bank statements required 

Processing Times: Same day to 48 hours

Benefits and Best Uses of Short Term Business Loans 

Business owners choose short-term business financing when other, more traditional options are not available. Cash flow and working capital are the best use for this type of business financing.

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6. Business Cash Advance in San Francisco

Business cash advances (BCA) are a type of purchase of future sales agreement that advances future sales at a discount to a business. The business is responsible for paying back a fixed amount (also known as a specified amount). The difference between the advance amount and the specified amount is called the “factor rate or cost.” This is not principal and interest but a fixed cost. A fixed percentage of future overall sales deposits called is the method used for repayment. The payments are collected by an ACH fixed daily or weekly from a business bank account based on the specified percentage of future sales. 

Reconciliation can occur at the end of every month. If the fixed payments taken are more than the set future percentage of sales, a business owner can request a refund back to the business for overpayment so that the set specified percentage of sales collected for the business matches the sales volumes. There is no term limit with advances because the specified percentage of payback never changes, yet future sales can change or fluctuate.

Product Overview

Rates: Factor rates from 1.09% up to 1.45% 

Terms: No term limits. Payments continue until paid in full based on specified percentage collection method and are dependent on future sales

Fees: Origination fees that range 0% to 5% 

Payments: Weekly or daily

Credit Standards: All credit considered.

Documentation: Reduced documentation: 1-page application and three months of bank statements are all that is required.

Processing Time: Same day to 48 hours

Benefits and Best Uses of a Business Cash Advance 

A business cash advance is a great alternative when more traditional business funding options are not available. Working capital to improve cash flow is the primary use of funds.

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7. Merchant Cash Advance in San Francisco

A Merchant Cash Advance (MCA) is also known as a Purchase of Future Sales Agreement that operates very similarly to BCA’s, but the biggest difference is the repayment process, which is connected to the future credit card sales instead of overall sales. 

Product Overview

Rates: 1.09% up to 1.45% factor rates

Terms: No term limits (payoff depends on future credit card sales)

Fees: Origination fees range from 0% to 3%

Payments: Fixed percentage of future credit card sales as payment

Credit Standards: All credit considered 

Documentation: Reduced documentation: 1-page application, three months of processing statements, and three months of bank statements are all that is required.

Processing Time: Same day to 48 hours

Benefits and Best Uses of Merchant Cash Advance 

The versatility of the repayment process allows for business with predominantly credit card sales to better control cash flow and profit margins versus a fixed payment, which has no flexibility. Working capital and cash flow are the most popular uses of Merchant Cash Advance.

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8. Equipment Financing in San Francisco

Equipment financing is used for the purchase of equipment, securing the equipment as collateral. Business owners need to have very good to excellent credit to acquire equipment financing. 

Product Overview

Rates: Factor rates 1.09% up to 1.45%, interest rates 7%-28%

Terms: 2 to 10 years 

Fees: Origination fees range from 0% to 3% 

Payments: Monthly fixed payments 

Credit Standards: Good to excellent credit required

Documentation: Low documentation: 1-page application and invoice for equipment

Time Frames: Same day to 3 days depending on the lender

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9. Invoice Financing in San Francisco

Invoice financing allows business owners to receive payment on their invoices quicker than waiting for terms to be paid by their clients. Invoice finance companies advance the outstanding balance to a business owner in exchange for a nominal fee.

Product Overview

Rates: None

Terms: No term limits 

Fees: 1% to 2.5% fee based on the invoice. Monthly service fees may apply depending on the volume of invoices factored

Credit Standards: Credit of the clients need to be favorable NOT the business owner advancing off invoices

Documentation: Reduced documentation: 1-page application and roster of clients and current accounts receivable aging report

Processing Times: It takes 1 to 2 weeks to set up a new relationship, then invoices are funded on a daily basis

Benefits and Best Uses of Invoice Factoring

This business funding product supplements cash flow in real-time without waiting for 30, 60, or 90 days for invoices to be paid by clients. 

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10. Purchase Order Financing in San Francisco

Purchase order financing offers businesses the ability to raise capital to pay suppliers upfront for verified purchase orders. Purchase order loans will finance an entire order or a portion of it, depending on the purchase order funder. When the supplier is ready to ship the order, the purchase order financing company collects payment directly from the customer. The purchase order funder will subtract their fees and then sends the balance of the invoice to your business. 

Product Overview

Rates: None 

Terms: No term limits 

Fees: 1% to 3% fee for each purchase order

Credit Standards: All parties need favorable business credit history but all credit considered

Documentation: Purchase order samples and owner information for all parties involved in the transaction.

Processing Times: 1 to 2 weeks to set up then ability to fund purchase orders daily

Benefits and Best Uses of Purchase Order Financing

This option is used to support the entire distribution chain with capital, so business owners don’t have to tap into existing cash flow. 

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The fast, convenient and straightforward way to get the money you need for your business – now! Get Your Quote Today by filling out our simple form.

Frequently Asked Questions

Why Does Your San Francisco Area Business Need a Business Loan?

The most common reasons Northern California area businesses acquire capital for their businesses include: 

  • Business Expansion
  • Working Capital
  • Equipment
  • Cash Flow Shortages
  • Adverting/Marketing Expenses
  • Emergencies

How Populated Is The Bay Area? 

San Francisco, and the surrounding bay area, is a focal point of commerce not only in Northern California but across the country. This city is the 15th most populous in the nation, with over 900,000 residents. The bay area encompasses the 12th largest metropolitan area, with 4.7 million people. The bay area is the 4th largest economic output in the U.S with a GDP of $549 billion last record in 2018. If you include San Jose, Oakland, and surrounding counties, that’s over 9.5 million residents and a combined GDP of over 1 trillion dollars, ranking the region the third-largest economy in the U.S.

Are Business Loans in the San Francisco Area Difficult to Obtain?

It is not difficult to obtain business financing in the San Francisco bay area. It is a highly desirable and thriving economic hub. 

Can I Qualify for a Business Loan in San Francisco If I Have Bad Credit?

If a business owner has bad credit, there are many business financing alternatives to traditional business lending. Terms will vary and will be associated with risk, so expect terms, pricing, and costs to be impacted.  

Can I Get Business Loan With No-Docs?

There is only one product that does not require documentation, and that’s business credit cards. There are other business funding products that have reduced or limited documentation requirements that you may want to consider, but keep in mind the terms will be less favorable than full documentation business loans. 

Can I Get a Start-Up Business Loan in San Francisco Bay Area?

SBA loans are the most traditional option available when attempting to acquire start-up business funding. You can also try to raise capital by looking at a less common option of private lenders or investors. 

The Bottom Line: Advice, Tips, Warnings About San Francisco Area Business Loans.

Always start your business financing search by asking yourself, What am I using the money for, and how will it benefit the business in the short-term and/or long term? Do you know the pitfalls you may run into when getting approved? (Such as credit issues, cash flow issues, time in business, financial statement issues, etc.) 

Underwriting for business funding is much more risk-averse than consumer lending. You need to take the time to look through all the options that are available. Always consider a cost versus benefit analysis when choosing business funding options. 

AdvancePoint Capital helps business owners search in a streamlined process, so you don’t end up wasting time or, more importantly, you’re hard-earned money. AdvancePoint Capital is a marketplace with many different product offerings. Choices give you the freedom and opportunity to make better decisions. As we always say at AdvancePoint Capital, compare, shop, and you will always save!   

The fast, convenient and straightforward way to get the money you need for your business – now!

Get your Quote Today by filling out our simple form.

 

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* All loans made by either WebBank, an FDIC-insured Utah industrial bank, or Bank of the Internet Federal Bank, an FDIC-insured federally chartered thrift located in California. In connection with the loans, the Banks' underwriting conditions and terms apply.