Lenders may use APR, a total cost/factor (e.g., 1.15), or fixed fee. Always compare total dollar cost and effective APR.

Credit profile, time in business, cash-flow stability, industry risk, collateral, and lender competition.

A multiplier on principal (e.g., $100k × 1.15 = $115k total payback). Payments are then scheduled over the term.

Often 0–5% of the amount funded. Some lenders also charge document or ACH fees—ask for a full fee sheet.

Generally fixed for the life of a short-term loan.

All fees + interest over the full term. Use TCC to compare offers apples-to-apples.

Not the stated cost, but they affect cash-flow timing and perceived burden.

Some lenders prorate interest/fees or give a “prepay” discount; others don’t. Confirm in writing.

Watch for draw/maintenance fees, NSF fees, late fees, lockbox fees, and prepayment penalties.

Commonly 6–12 months; some programs accept 3 months with stronger cash flow.

Often $100k–$300k+, but varies widely by lender.

Typical thresholds range from ~550–650 FICO; stronger files can secure better terms.

Most do, but high-risk industries (e.g., firearms, gambling) may face restrictions.

3–6 months of business bank statements, voided check, IDs; sometimes P&L, balance sheet, tax returns if larger.

Usually yes (soft or hard pull) to assess credit management and potential guaranty.

Frequently, yes—especially for unsecured or blanket-lien structures.

Often a blanket lien on business assets; priority and existing liens matter.

If <6 months TIB, options narrow; alternatives might include MCA, equipment financing, or a secured LOC.

Cash-flow coverage matters most; consistent deposits and low NSF/negative days help.

Application, IDs, last 3–6 months bank statements, voided check; possibly EIN letter, business license, lease.

Fast lenders can underwrite same-day; more complex deals may take a few days.

For larger amounts, yes (P&L, balance sheet, AR/AP aging). Smaller loans may rely on statements + bank data.

Yes, but too many credit pulls/UCC filings can complicate or worsen terms.

Generally not for small loans; possible for bigger requests or collateralized structures.

As fast as same day after contract execution and verifications.

Typically ACH to your business bank account; wires for rush scenarios.

Usually flexible—working capital, payroll, inventory—avoid prohibited uses (tax evasion, personal expenses, illegal activity).

Often yes; verify any lender-to-lender payoff processes and prepayment penalties.

Daily, weekly, or bi-weekly ACH debits are common; some offer monthly.

Fixed amount (unlike MCA). This makes planning easier, but requires steady cash flow.

Sometimes—ask for a hardship or restructuring option policy upfront.

Daily ACHs typically skip bank holidays/weekends and catch up on the next business day, or spread over the schedule.

Yes; understand fees and any “right to cure” provisions.

Depends. Some charge a flat fee regardless of payoff date; others prorate. Get the payoff quote policy in writing.

Some lenders apply an interest rebate or % discount if paid early. Ask for examples.

After several successful payments, lenders may offer additional capital—either a top-up or refinance into a new term.

Yes, because you’re entering a new obligation. Compare the blended cost and consider net savings/ROI.

Over-borrowing, payment stress from daily/weekly debits, stacking multiple advances, and covenants you can’t maintain.

Minimum balance, no additional debt/UCCs, maintain insurance, provide statements, keep taxes current.

Expect late/NSF fees, collection calls, potential default; liens/guaranties can be enforced.

Some contracts permit remedies after default. Read the ACH authorization and default clauses carefully.

Personal credit can be checked; delinquencies/defaults may appear on business credit or via collection activity.

Some states require cost-of-capital disclosure; request a truth-in-lending style summary regardless.

Sometimes. Ensure the agreement explicitly states whether fees are earned over time or at origination.

When you want fixed payments, clear amortization, and potentially lower total cost for strong cash flow.

When you have recurring working-capital swings and want to draw only what you need, when you need it.

If purchasing long-life assets, equipment loans with collateral and longer terms may yield lower payments.

SBA offers longer terms/lower rates but slower, more documentation-heavy. Short-term loans fund fast at higher cost.

Factoring advances against invoices; cost depends on collection time. Useful if your capital is tied up in AR.

RBF ties payments to a % of revenue (variable). Term loans are fixed—predictable but less flexible if sales dip.

Commonly 50–150% of average monthly deposits, capped by cash-flow coverage and risk.

Match term to ROI/payback period of the use of funds—inventory turnover, project cycle, campaign length.

Rare for short-term loans; occasionally a brief interest-only “ramp” is offered.

Uncommon; most are fully amortizing. Verify amortization schedule.

Strongly discouraged—stacking increases default risk and can violate covenants.

Consistent deposits, few NSFs, positive average daily balance, clean account history.

They smooth the burden but require constant liquidity—build a buffer.

Often helpful for budgeting and to isolate loan activity.

Some lenders offer temporary relief/hardship plans; not guaranteed—ask upfront.

General business assets (UCC-1), sometimes specific equipment/inventory, or personal assets for secured deals.

Lenders may require general liability or specific collateral insurance.

Typically owners with ≥20% stake; policies vary.

Default remedies, confession-of-judgment (if applicable), cross-default, prepayment treatment, personal guaranty scope, set-off rights.

Yes—particularly fees, prepay discounts, and UCC priority if you’re a strong borrower or have competing offers.

Occasionally for verification on larger deals; usually not for smaller amounts.

Often—look for “no additional indebtedness” or “no junior lien” clauses.

Periodic bank statements, financials, or tax proof; varies by lender and size.

Possibly after on-time payment history (e.g., 50% paid down) and stable cash flow.

Ask the lender’s servicing team for a dated payoff quote with per-diem detail and instructions.

New UCC filings or amendments may occur; ensure the old lien is terminated when refinanced/paid off.

Normalize to total dollar cost and effective APR, include all fees, confirm payment frequency, and model cash-flow impact.

Target total debt service ≤ 10–15% of monthly deposits (varies by margin/industry).

Tie the loan to a specific initiative (inventory turn, campaign CAC/LTV, project margin) and require payback before term end.

Opaque pricing, refusal to provide payoff math, aggressive stacking, COJ clauses without counsel, or pressure tactics.

Advisable for larger obligations—review tax impact, covenants, and legal terms.

Improve bank health, reduce NSFs, increase reserves, season your business longer, or consider alternative products.