Alternative Business Lending
The microloan program provides loans up to $50,000 to help small businesses start up and expand. The average microloan is about $13,000.
We provide funds to specially designated intermediary lenders, with experience in lending as well as management and technical assistance. These intermediaries administer the Microloan program for eligible borrowers.
Am I eligible?
Each intermediary lender has its own lending and credit requirements. Generally, intermediaries require some type of collateral as well as the personal guarantee of the business owner.
How do I use a microloan?
Microloans can be used for a variety of purposes that help small businesses expand. Use them when you need under $50,000 to rebuild, re-open, repair, enhance, or improve your small business.
o Working capital
Recievable Factoring Explained
“NOT A LOAN” ( No Payments, No Interest)
How it works:
For example , if you sell $100,000 worth of accounts receivables and get a 90 percent advance, you will receive $90,000.The accounts receivable factoring company holds the remaining 10-percent or $10,000 as security until the payment of the invoice or invoices have been received. Once paid you sent the remaining balance less transaction fees.
Merchant Cash Advance Explained
A merchant cash advance provides alternative financing to a traditional small-business loan. Merchant cash advance providers say their financing product is not technically a loan. An MCA provider gives you an upfront sum of cash in exchange for a slice of your future sales.
NO FIXED PAYMENT OPTIONS!
DON’T RISK YOUR ACCOUNT GOING NEGATIVE!
Line of Credit Explained
A line of credit is a set amount of money from which you can borrow (up to the limit) for a given period of time, referred to as your draw period. Similar to a credit card, you take from the available balance only the amount you need, and you pay interest on that amount.
In this way, a personal line of credit is a type of product that’s known as a revolving line of credit. With a personal line of credit you have access to an available balance of funds available at any time, and you have the ability to draw from the funds over time as you need it.
A personal line of credit is a flexible financial product for several reasons:
With a personal line of credit, you choose when to take advances, as opposed to a term loan, where you receive a lump sum at the beginning and start paying interest on it immediately. You only pay interest on the amount that you’ve drawn from a personal line of credit. Assuming you stick to the lender’s terms, once the amount drawn against the personal line of credit is paid back, that amount is available for you to borrow from again immediately during your draw period.
Personal lines of credit can be secured or unsecured. For unsecured lines of credit, you don’t need to put up any form of collateral — like a savings account, for example — to actually apply. For secured lines of credit, collateral would be required before you could gain access to the loan. An example of this is a home equity line of credit, also known as a HELOC. With a HELOC, you’re borrowing against the available equity from your home and the home is used as collateral for the line of credit.
If you’re determining whether a personal line of credit or a credit card is better for you, one main distinction between the two is access to funds; personal lines of credit are ideal for accessing cash to cover large planned expenses, such as moving to a new city or refinancing student loans. They can offer access to capital for your planned future milestones, whether it’s covering expenses for minor home upgrades or starting a family, when the time is right for you.
Qualifying for a line of credit?
With a personal line of credit terms may vary, so it’s important to do your research before you commit. Interest rates on personal lines of credit are usually variable, so they can fluctuate with the index (such as the prime lending rate) that they’re connected to. For this reason, you may want to find a lender that offers fixed rates on personal lines of credit. Because fixed rates remain constant, you won’t have to worry about rising interest rates impacting your debt. In addition, having a consistent monthly payment can make it easier to plan for the future as you know what to expect.
Fees, too, can be associated with the line of credit, depending on the lender. They may include:
An annual maintenance fee that ensures the line of credit is available during the draw period, which is charged on an annual basis or broken up into monthly increments. A late payment fee, if you are delinquent on payments. A transaction fee. Some banks charge a small fee each time you make a withdrawal.
When shopping around for a lender, don’t be afraid to ask about interest rates and fees as you evaluate your options. For example, First Republic’s Personal Line of Credit offers fixed interest rates and does not have prepayment, origination or maintenance fees.
Once you’ve successfully applied, we will set your borrowing limit and personal line of credit interest rate based on several factors, like your credit score (something in the good or excellent range is preferable), income and existing debt.
How you actually receive your money will depend on the specific product you go with. Some lenders may provide you with checks or a card to use specifically for your personal line of credit, or, if you have additional products with the financial institution, your money could be deposited into another account, like a checking account, when you’re ready to use it.