Contact Us
Book an Appointment Today
Getting started is the easiest thing you’ll do today.
Frequently Asked Questions
Answers To Frequently Asked Questions
What is a credit-based business loan?
A credit-based business loan is a type of financing that is determined primarily by the creditworthiness of the business owner or the business itself. Lenders assess the credit history, credit score, and financial health of the business to determine eligibility and loan terms.
How does a credit-based business loan differ from an asset-based loan?
A credit-based business loan relies on the borrower's creditworthiness and financial history, while an asset-based loan uses assets such as equipment, inventory, or real estate as collateral for the loan. Asset-based loans may be easier to qualify for with lower credit scores but may require specific collateral.
What are the benefits of applying for a credit-based business loan?
Benefits of credit-based business loans include potentially lower interest rates for businesses with strong credit, faster approval processes, and the ability to build or improve business credit with timely payments.
How can I improve my credit score to qualify for a business loan?
To improve your credit score, focus on paying bills on time, reducing credit card balances, avoiding new credit inquiries, and monitoring your credit report for errors.
What documents are required for a credit-based business loan application?
Common documents include business financial statements, tax returns, bank statements, business plan, personal financial statements, and credit reports.
Can I apply for a business loan with a low credit score?
Yes, some lenders offer business loans specifically designed for businesses with lower credit scores. You may need to provide additional collateral or demonstrate strong business performance.
What is an asset-based business loan?
An asset-based business loan uses assets such as equipment, inventory, accounts receivable, or real estate as collateral for the loan. These loans are secured by the value of the assets.
How does asset-based lending work?
Asset-based lending allows businesses to borrow money based on the value of their assets. The lender assesses the value of the assets and provides a loan amount based on a percentage of that value.
What assets can be used as collateral for an asset-based loan?
Assets commonly used as collateral include equipment, inventory, accounts receivable, real estate, and sometimes intellectual property or contracts.
What are the advantages of asset-based lending for businesses?
Advantages include access to financing without relying solely on credit scores, potentially lower interest rates compared to unsecured loans, and the ability to leverage existing assets for growth.