Business Loan (American / Canadian)

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 a minimum loan amount of $2,500 to a maximum loan amount of $400,000 is determined by the issuer and based on your average monthly credit card sales. 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%. Funding Circle does not offer Merchant Cash Advance funding solutions at this time. To know more contact now

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 as payroll, paying rent, or making monthly payments towards debt. A working capital loan is not meant to buy long-term assets or investments. To know more contact now

A line of credit is a flexible form of short-term financing. You have a set amount of available credit that 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. When you apply through Funding Circles network of lending partners, you could be eligible for a line of credit for up 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. If you’d like to be considered for a line of credit through Wambui Street network of partner lenders, be sure to contact us now.

Invoice factoring is more similar to an MCA than it is to a business term 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. 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. To know more contact now

Business owners can look for small business loans with shorter or longer terms based on their financial needs. The best one for you depends on a few factors. You should consider how you’ll use the money, how much you need, and how much you’ll pay in interest with each option.

If you’re not sure what kind of financing option you want (loan, line of credit, or something else), consider talking to a financial expert (like your accountant) about your situation. They’ll be able to talk you through your options, helping you find the best small business loans for you and your business.