Business Loan

A business loan* or funding is typically a funding in which a lump sum, upfront amount of cash is provided to the borrower (directly to the business). It is repaid on a regular basis with fixed payments over a fixed amount of time.

*Not available in all states.

Pros

• A set, predictable payment schedule
• Flexibility of repayment terms
• Available from a variety of financing providers

Cons

• Repayment is guaranteed
• No fluctuation in payments as business revenue fluctuates
• May require a pledge of collateral

Minimum requirements are a U.S.-based small business with a business bank account, a minimum of 6 months in business, at least $8,000 in monthly revenue, and a 500+ FICO. Additional underwriting criteria will apply.

ECG, along with some other capital providers, offer traditional business loans. Given most of the underwriting is centered on the cash flow of the business, a lower personal credit score doesn’t mean you will not qualify for credit. However, this may impact the terms of the offer received which could include shorter term or higher pricing.

Once you apply and are approved, the benefit is funds may be available as soon as the same day or next business day. You should consider if during the evaluation process there will be soft or hard credit pulls and if there are early prepayment discounts. Repayments may be through automatic bank account deductions (ACH) and as long as you are consistent with your repayment history there could be additional capital available to you in the future.

This type of financing is often successfully utilized for growth initiatives where the core business is stable and revenue is not subject to significant fluctuation.