Working Capital Loans
Working Capital Loans – A Working Capital Advance is a lump sum of money provided to a business against
future earnings. Unlike a bank loan or typical loan, which charges an interest rate, Working Capital Advances are repaid using a percentage of the entity’s future sales.
- Working Capital Loans Up to $5,000,000
- Loan Features: Our loans are Interest free since we use a Factor Rate or Buy Rate in order to qualify your loan. The Factor Rates are in the range of 1.14 to 1.5
- How Factor Rates work - Working Capital advances do not use the typical Interest Rate or APR. As stated above, these loans are qualified using what is known as a "Factor Rate" or “Buy Rate."
- For example, if you obtained a $100,000 advance at a 1.15 Factor Rate, you would multiply $100,000 X 1.15 which would equal $115,000. This means that the required repayment of this particular advance is the principal of $100,000 plus $15,000 which is the cost of the loan.
- The Factor Rate indicates how much you will pay for the allocated funds, and it is generally expressed as a Multiple or Decimal figure. It may be reflected as a 1.14.
Upon Approval & for Line Activation:
When your loan is approved and you agree to the terms, you will need a State Issued Photo ID, a Voided Check, and Proof of Company Ownership.
The Loan Process
- Apply via a simple 5-Minute Online Application
- Wait for Due Diligence email & click on Verication/Authentication Link to verify Your Bank account statement
- Review Approval Terms
- Sign Agreement
- Receive Your funds
- Grow Your Business & Live Your Dream
Repayment Terms
Repayment of this loan can be from 1 – 24 Months on a Daily, Weekly, Bi-Weekly or Monthly basis.
- Pre-Payment Penalty: No Prepayment Penalty. There are Incentives/Discounts available for Pre-Payment
- Collateral: No Collateral needed
- Origination Fees: Yes but they are varied depending on the investor, industry & health of the business
- Funding Timeline: Approval can be and has often been within 30 minutes to 36 hours (weekdays), and your loan proceeds will be deposited in your account usually within 1 to 3 Business days later.
- Availability: Loans are available in all 50 States.
Documents and Supporting Documents:
- Last 3 Bank Statements ONLY for Your Quote
- For advances over $250,000 underwriters may request your Most Recent Tax Returns & Financials (which may aslo include Accounts Payable & Accounts Receivables)
