TYPES OF BUSINESS LOANS WE CAN OFFER YOUR COMPANY

TYPES OF BUSINESS LOANS WE CAN OFFER YOUR COMPANY

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At Lifetime Capital Funding our goal is to provide you with the best financing options to suit your company’s financial situation. Therefore, we offer a variety of loans to fit every business need from a small companies stop gap loan for only 10 or 20,000 dollars.

To up to one million dollars for an established company’s large expansion needs to keep pace with their competitors into the future.

We believe one of these types of loans will help

1.) Merchant Cash Advances – Business Loan Based on Revenue.

One of the easiest and simplest types of business loans you can get through Lifeline Capital Funding is a Merchant Cash Advance. It is an easy-to-get small business loan. The advantages are many.

a.) No Collateral required – You do not need to tie up assets and place them at risk.

b.) Tax Returns are not needed.

c.) You can apply in minutes with our very simple one-page application form.

d.) A much higher approval percentage.

e.) Funding often occurs within just a few days meaning your company is   not stuck waiting for weeks for approval during a business emergency or while a great opportunity slips away.

f.) Repayment comes only from a percentage of future revenue and not in a rigid, structured repayment schedule helping you to stay on schedule during any slow periods or business downturn.

Merchant Cash Advances are generally

Best for:

A Merchant Cash Advance can fit a variety of situations and are best for businesses that have consistent credit card sales and can handle frequent repayments.

It is especially good for business that are fairly new and do not have the established track record traditional lending institutions usually require.

It can also be a great alternative for companies that have seasonal fluctuations of income.

Even companies that have had a few credit problems such as late payments or even bankruptcy can often qualify for a Merchant Cash Advance.

In this way an MCA can be the perfect answer for companies needing quick funding capital and do not qualify for more traditional loans.

A merchant cash advance (MCA) is an alternative type of financing, and is technically not a type of small-business loan. An MCA company will advance you a lump sum of money in exchange for a portion of your future sales revenue.

Repayment can be daily, weekly or monthly as either a fixed debit from your business bank account or as a percentage of your sales revenue. With the latter, your payment will fluctuate depending on how much money your business is bringing in.

Approval for an MCA is based on your business’s revenue rather than your personal credit or available collateral; however, it is one of the most expensive forms of business financing, with APRs that can reach triple digits. It is usually recommended to look for other types of small-business loans before turning to an MCA.

Pros:

   Fast cash.

   Flexible requirements.

Cons:

   Very expensive type of small-business loan.

   Frequent repayments can create cash flow problems.

How does a merchant cash advance work?

A merchant cash advance company provides your business with a lump sum of capital. But an MCA isn't a loan. Instead, that provider is purchasing your future sales, and you’ll use those sales to repay the funds — plus fees. MCAs work similarly to invoice financing, when you borrow against future invoices in exchange for cash.

Merchant cash advance repayments can be structured in two ways:

Percentage of debit/credit card sales

This is the traditional way an MCA is structured, in which a merchant cash advance provider automatically deducts a daily (or weekly) percentage of your debit and credit card sales until the advance is repaid in full.

Unlike other types of business loans, merchant cash advances don’t have typical repayment terms. Repayment periods are based on your sales and can range anywhere from three to 18 months; the higher your credit card sales, the faster you’ll repay the advance.

Fixed withdrawals from a bank account

Merchant cash advance companies can also withdraw funds directly from your business bank account. In this case, fixed repayments are made daily or weekly from your account regardless of how much you earn in sales, and the fixed repayment amount is determined based on an estimate of your monthly revenue.

This type of MCA repayment structure allows you to calculate exactly how long it will take to pay the advance back based on the amount borrowed and can be better suited for businesses that don’t rely heavily on debit and credit cards sales.

Merchant cash advance rates and fees

Instead of a traditional interest rate, merchant cash advance companies charge their fees as a factor rate. Factor rates typically range from 1.1 to 1.5, varying based on the provider’s assessment of your business.

Your industry, years in operation, business financials, debit and credit card transactions and personal credit score may all play a role in determining the factor rate you receive. Businesses whose ability to repay looks riskier will likely receive higher factor rates — and pay higher fees as a result