PRODUCTS AND SERVICES

Traditional Term Loan:


A Traditional Term Loan is the type of loan most people envision when they think of financing. You receive a lump-sum of money and make monthly repayments over a relatively long period of time (usually 3-10 years). It is typically used for general growth & expansion of a business, large purchases, debt consolidation, operational costs, and more.

One of many advantages of this type of loan (aside from the large amount and low interest rate) is the versatility- there are few restrictions on how the money can be used. One of the main challenges of this type of loan is that it can be difficult to qualify for (strong business & personal credit required) and the funding process can take weeks to months.

Line of Credit:


A Line of Credit is similar to a Term Loan in that you receive a lump-sum of money and make weekly or monthly repayments over a relatively long period of time. There are two key differences- you only pay interest on the amount of money that you withdraw from the account and the principal that you pay back becomes available for you to use again. It is typically used in several different situations:


a. Unplanned/unexpected expenses- Since you only pay interest when you draw on the funds, it is can serve as a convenient and low-cost “rainy day fund”; the money is available when you need it and you don’t need to pay interest while it sits unused.


b. Recurring, varying expenses- Similar to the reasons above, a Line of Credit is useful for varying expenses because you only need to draw and pay interest on the specific amount of money that you need at the time.

Furthermore, once you have paid the money back, it is available again the next time you need it.
c. Bridging the gap- Many business owners with Account Receivables on 30, 60, or 90 day terms can experience difficulty in managing their expenses while waiting for their accounts to be paid. A Line of Credit is perfect for this situation because of the two characteristics that have been discussed above. Interest is only charged on the amount of funds in use, while those funds are in use, and the money becomes available again after the Receivables are paid and the Line of Credit is repaid.


Bridge Loan:


A Bridge Loan, or Cash Advance, has several difficult functions, but is generally used as short-term financing when a business owner needs quick access to cash or to “bridge” the gap between now and future receivables. Bridge Loans are also used as a financing option for business owners that do not have strong personal or business credit.

Advantages include the fact that it requires little documentation and can fund very quickly. Disadvantages include smaller amounts, higher interest rates, and shorter term length as compared to a Term Loan.

Personal Loan:


You do not need to be a business owner to obtain a Personal Loan. A Personal Loan is usually based on your taxable, verifiable income and your personal credit score. It can be used for a variety of expenses such as debt consolidation, home improvement, medical bills, unplanned expenses, and more. A personal loan can even be used for business expenses, although many business owners prefer to keep business and personal finances completely separate.


Advantages of a Personal Loan include the fact that the money can be used for virtually anything, it requires limited documentation, and can fund quickly. One challenge, especially for business owners, is that you must show regular personal earnings and taxable net personal income.