A Traditional Loan, a Line of Credit, and Factoring are the most common forms of DIP Financing. The name DIP Financing is short for “Debtor-in-Possession” Financing. The court must approve the DIP Financing and provides the lender with a special DIP Finance charge, or security interest, which ranks ahead of all other lenders.
Often referred to as Gap Financing, Bridging Loans and swing loans, a Bridge Loan is a form of short-term financing used until a business or person/persons secures the permanent financing they need. This type of loan is designed to help businesses with their immediate financial needs as they are waiting for other funding sources. Bridge loans can be an excellent source for covering unexpected costs when a business is waiting on long-term financing. Bridge Loans are subject to credit underwriting and approval.
A Microloan can be good for a business that is struggling to qualify for traditional bank financing. The (SBA) U.S. Small Business Administration Microloan program provides loans of up to $50,000 to help small businesses and start ups expand their operations.
The average Microloan is about $13,000 yet smaller-size loans of $5000.00 up to $50,000 are provided through SBA funding intermediaries. A Microloan is a short-term loan (six months to five years) up to $50,000. SBA 504 Loan or Certified Development Company program is designed to provide financing for the purchase of fixed assets, which usually means real estate, buildings and machinery.
A Small Business Line of Credit gives businesses flexibility and access to cash as needed. As a (RLC) Revolving Line of Credit, more financing becomes available as the business pays down its balance.Mandatory Loan Requirement: 600-650 FICO Score or higher.
A business must have been in business for no less than two years. A Business/Commercial Line of Credit allows businesses to borrow funds up to the amount of their working capital. For Business/Commercial Lines of Credit Lenders use no hard credit pulls, only soft pulls when they check for credit eligibility, thus doing this without affecting any credit score.
Cash Flow Financing is a type of business financing in which a loan is made to a business that is backed by the business’ expected future cash flows.
The business may use the Cash Flow Loan for its day-to-day business operations. Cash Flow Financing provides Fast Financing! A business can obtain a Cash Flow Loan even when their credit is less than what a bank would consider appropriate to qualify for any loan.
Business Term Loans are standard debt financing having standard payments with a maturity and amortization schedule. Business Term Loans are typically collateralized using the assets (Real Estate, Raw Land, Equipment, Accounts Receivable or Cash Flow) of the borrowing business. The financing process takes between thirty to ninety days with banks or credit unions, yet fortunately non-bank lenders can move a business from the lending application to funding/financing within twenty-four hours.
Improve Your Business Cash Flow! Equipment Financing is for businesses that use equipment in their day-to-day operations, it can help businesses to keep as much cash in-house as possible. An Equipment Loan is a type of business loan that allows you to buy new and sometimes used equipment immediately to meet the needs of a business while it makes agreed upon fixed monthly loan payments. Equipment Financing is essentially a rent-to-own plan. Equipment Financing will not hinder cash flow. Intended to be a financial help to a business purchasing needed equipment and or machinery.
Equipment Financing-Improve Your Business Cash Flow! Read More »
SECA Funding Company The Professional Private Credit Experts Providing Subordinated – Revenue-Based Financing. (RBF) is a type of funding whereby a company receives a capital investment for its exchange of a share of its future revenue until the established Cap a pre-defined absolute amount has been repaid. With RBF, the lender is essentially purchasing a percentage of a business’ future sales at an agreed upon discount. RBF is more of a short-term financial solution. Revenue-Based Financing does not come with set repayment terms, the majority of RBF agreements are repaid within six months or a year.
A subordinated loan is a form of loan which is repaid only after the senior debt has been fully repaid first where a borrower defaults on their obligations of the loan. A subordinated loan is much more higher risk for investors than any senior loans and therefore dictates a higher rate of interest.
Alternative Finance gives a business quick access to financial capital. SECA Funding Company offers a simpler and quicker funding process than traditional lenders like banks, which may not desire to take the risk involved in Alternative Financing.
