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Frequently Asked Questions

General Questions
What is alternative lending?

Alternative lending are business lending options offered outside of traditional bank financing. Traditional banks have much more stringent guidelines for funding and many small business owners find it difficult to qualify. Alternative lending often lifts that barrier and provides simpler access to funding.

Even when traditional banks approve funding for small business owners, it is often for much lower amounts than what they need to operate. Alternative financing can offer a variety of products with creative structures that tailor to a specific business owner's need. These products are typically easier to qualify for than traditional bank financing.

Do I have to pay anything up front?

Absolutely not! You do NOT have to pay to apply for a business loan. In some instances, there may be an application fee to cover expenses such as credit checks and title searches for real estate property, but that is disclosed upfront and only happens in few very cases. If a company is telling you that you have to pay in order to apply, walk away.

What are the interest rates of your loan products?

The interest rates vary depending on the product. For the unsecured lines of credit and term loans, the interest rates can start as low as 0% and go up to about 16.99%. Working capital loans can go up to 25% APR.

Can I get a business loan after bankruptcy?

It depends on what type of funding you're seeking. Obtaining funding shortly after bankruptcy can be challenging, but not impossible. At The Funding Clinic, we work with lenders who take a holistic approach to evaluating your business's profile, not just focusing on past bankruptcies.

Typically, you can get a loan after bankruptcy with some form of collateral - either revenue from business or property with equity. We can help you in these areas, as trying to get an unsecured loan immediately after bankruptcy is seldom possible.

While the process may be more difficult and the options may be less flexible, our team can help you explore different funding options and increase your chances of securing the funding you need for your business.

Another option available is to apply for credit cards specifically designed for those rebuilding credit after bankruptcy. These credit cards may have higher interest rates, but by consistently making on-time payments, your credit score will improve, and you will be able to access larger loans from more lenders.

Is my personal information I submit on your website safe?

Yes! All information you submit to us is encrypted. Our site's SSL certificate is registered and verified and we display our badge on every page. Any information you submit will always be confidential and protected.

Will applying for a business loan hurt my credit?

No. There are two types of credit pulls – a hard pull and a soft pull. Soft pulls are used to pre-approve you for loans. These types of pulls do NOT impact your credit. Hard pulls occur once there is a pre-approval and the loan request has moved into the verification and funding stage. Hard pulls show up on your credit and can impact your credit score although it's only by a few points and your credit usually bounces back quickly. We pre-qualify you with a soft pull so there is no negative impact to your credit. You don't want too many hard inquiries on your credit when shopping for a business loan. Too many credit inquiries tells lenders that you may be high risk borrower. If you have a high number of hard inquiries on your report, we can help you reduce them.Please see the credit repair section.

Why do you request my credit monitoring login?
We strive to make the loan application process as seamless and efficient as possible for our clients. To pre-qualify for funding, we require all applicants to submit their credit monitoring username and login. We recommend using My Score IQ due to their reputable services and fraud insurance. Additionally, we offer a credit analysis to give you an idea of how lenders will rate your loan profile. Rest assured, all of your information is securely encrypted and protected at all times
What is a personal guarantee?

A personal guarantee, also known as a PG, is an individual's legal commitment to repay a business loan if the business is unable to do so. It is typically required from an executive, partner or owner of the business. It means that in case the business becomes unable to repay the debt, the individual is personally liable.

Do the business loans require a personal guarantee?

The majority of our loans do require a personal guarantee. The good news is most of them do NOT show up on your personal credit unless you default. Our loans can help you build a strong business credit rating that can help you qualify for business funding without a PG in the future.

Working Capital
What is a working capital loan? What's the difference between a working capital loan the unsecured line of credit product?

A working capital loan is often used to fund ongoing, daily business expenses like payroll, rent, and operational costs and fill-in cash flow gaps during slow seasons. These loans are also unsecured and need no collateral but merchant annual gross sales documentation is required for verification. Since merchant sales are a huge factor in determining how much funding a business will receive, these loans can fund up to $1 Million and can fund quicker, usually in about 3-5 business days.

Will the payback for the working capital be tied to my credit card sales?

No. Many cash advance companies receive their payback by deducting up to 30% from your daily Visa and Mastercard sales, and they may require you to change your credit card processor. Our lenders require no change in your credit card processor, and does NOT interfere with your credit card receipts.

SBA Loans
What is an SBA Loan?

An SBA loan is a small business loan that is partially guaranteed by the government (the Small Business Administration), which eliminates some of the risk for the financial institution who is issuing the loan.

Does the government issuue SBA loans?

No. The Small Business Administration (SBA) does NOT issue loans. The SBA "insures" the loan issued by a bank or lending institution. The SBA guarantees up to 85% of loans of $150,000 or less and 75% of loans that are more than $150,000. This reduces risk for the bank and helps small business owners qualify for loans with longer terms and lower monthly payments.

How long does it take to get an SBA loan?

The entire process can take weeks and sometimes months. You increase your chances of being approved if your business and personal finances are in good shape and you provide all the documents requested. If you need funds immediately, an SBA loan may not be the right product at this time.

Real Estate
What states do you lend in for real estate investing?

We lend in most states with the exception for the following: Alaska, Oregon, North Dakota, South Dakota, Minnesota, and Vermont.

Is the rehab funding included in the loan?

We have investor loan products that include 100% rehab costs. You still have to bring your down-payment and closing costs to the closing. We also have another programs that pays for the property only and your points can be rolled into the loan, reducing the amount of money you need to bring to closing.

Are there any lenders out there who still lend 100% on purchase and rehab costs?

Yes, they are called friends and family. Other than that, unless you have a private parnter, the days of are 100% financing on purchase and rehab costs are long gone. Now lenders want to see investors put some skin into their deals. An alternative is gap funding in the way of unsecured loans and lines of credit that can be use to purchase property without using any of your own money. The good news our lenders do NOT care where the money comes from.

Are there any points or loan origination fees for the real estate loan?

Yes. Loan origination fees are anywhere between 2 to 5% of the loan. We have some select lending partners that will allow you to roll the points into the loan. Those lenders lend only on the purchase price. So it is great for a cashout-refinance