Bank Term Loan or Line of Credit
- Net cost of capital is 8.9% - 12.6% APR (inclusive of fees)
- Monthly payments
- Just 1 application applies them for both Term Loans and Lines of Credit
- Lets the banks come to you
- Decision within 3-5 business days
- Over 70% approval rate
- No new liens from the bank
Minimums to apply
Minimums to apply
- Requirements To Apply:
- FICO: 660 minimum with all 3 bureaus
- Time in Business: 2 years minimum
- Annual Revenues: $250k minimum last 2 years
- Industries: All Good EXCEPT 🚫No Cannabis Related🚫
- Now available in all 50 states
Contact us now to discuss!
- To submit for approval, please send us the following information in one email to email@example.com
1. Fill out our 1-page fillable Working Capital Application. (Contact us for the application.)
2. Please go to Experian.com and download their FREE credit report. The full report can be anywhere from 15-100 pages. Please download the whole report into 1 PDF document.
3. A copy of your SS4 (Employer ID Number) for their business.
4. Six (6) most recent business bank statements (all pages – in pdf format). Please send each month as a separate pdf attachment.
5. Articles of Incorporation
6. Three most recent Business AND Personal Tax Returns
7. Year-to-date Profit & Loss Statement and Balance Sheet
8. Completed Business Debt Schedule
9. A copy of the owner's driver’s license (front and back; a clear cell phone picture is fine).
10. A copy of a voided check (or bank routing/account number info). Once approved, the bank(s) will wire their financing directly to this business bank account at closing. The title on this account MUST match their application. No exceptions.
Frequently Asked Questions
Here's a list of some of the most common questions we hear on a regular basis:
- Do I have to pick whether I apply for a Bank Term Loan or a Line of Credit (LOC)? - No. One application package for your business starts the process for BOTH & you will receive offers for the maximum amount (on either or both) that you can qualify for.
- Will you pull my credit? - Any owner with a 20% or greater ownership stake needs to pull their own Free Credit Report (the FULL report, not just the summary). We highly recommend using Experian Free Credit Report . If you pull your own FREE 15-100 page PDF report, it doesn't count as a "pull" against your credit. If we do it, it will, so please do this yourself. Plus, there's no hard pulls until you go to closing. All owners with a 10% stake or greater should IDEALLY have a 660 FICO credit score with all three bureaus. If only a less than 100% owner can meet this 660 FICO minimum, we may still be able to make the file work, so please text, or email us with your scenario. We have other low-cost, bank credit facilities where the file may still fit.
- What if I have existing debt on my business's balance sheet? - Many applicants that are successfully funded in this Program do have existing business debt at the time of their application. Having existing debt will not automatically disqualify you. It is just one more data point, along with your company's other specific metrics, that will be factored into your approval. Naturally, the main question is "..can you easily afford the existing & potential new debt...?"
- Why can the funding process (underwriting) take up to 30 business days? - Everything at a bank takes time. The good news is that we'll often get a Y/N decision in just 3-5 business days. Other times a bit longer. Usually declined files come back sooner. So, in theory, the longer we hear nothing, the better the chance an offer will be extended.
- If you receive approval, what is the maturity or term that will be offered? - A Bank Term Loan will go for a specific period of time, or term, like 2, 3, 4, 5, 7, or even 10 years. On the other hand, a Line of Credit (LOC) may not have a set maturity or term. This is called "revolving credit" where the credit line can be used, paid back, and re-used without a maturity term. Offers and terms will be based solely on the qualifications of each individual file. Each offer will be explained to you & your client in detail, so they can make the best decision they can for their business and their unique situation.
- What's the difference between a BTL (Bank Term Loan) & an LOC (Line of Credit)? - As the name implies, a BTL is when the bank loans the business a lump sum of money for a specified period or time, called the term. As an example, a $100,000 5-year BTL means the bank will offer a $100,000 lump sum to be paid back monthly for the 5-year (60 month) term. A $100,000 LOC, by contrast, is when the bank earmarks $100,000 for the business to use when and where they need it. They may borrow up to the $100,000 maximum LOC amount for as long or as short a time period as they need to within the structure of the LOC. They will pay interest only on funds drawn down, or outstanding, and only for the number of days the money is drawn down by them for their business. As an example, say they drew down $50,000 of the $100,000 available to them, and only used the money for 30 days. In that example, they'd only owe interest for the 30 days outstanding, and only for the $50,000 of principal that they borrowed. With both the BTL & the LOC, clients will make small monthly repayments - never daily or weekly.
- Do I need to personally Guarantee a BTL or an LOC? - Sometimes a business applicant is strong enough, as a business-only, to borrow funds without the owner's own PG (personal guarantee). Other times, it will make the bank feel more secure to have ownership's PGs. Each scenario is different. In either instance, if they plan on repaying their debt, it really shouldn't matter.
- Do they need to pledge collateral? - No, all credit facilities being applied for here are for unsecured financing. To be clear, this typically means that a borrower is not required to pledge collateral to secure the transaction. Knowing this information is helpful, however many banks will still place a UCC lien on the general assets of the business. This does 2 things: 1) establishes the Bank as a lien holder for legal purposes, and 2) alerts other future lenders that the client has an outstanding debt, which can serve to help the applicant avoid getting over-leveraged in the future.
R Desmond Financial Services LLC dba R Desmond Services is a consultancy and advisory firm headquarted in St. Petersburg, FL . The operator of this website in NOT a lender, does not make offers for loans, and does not broker online loans to lenders or lending partners. Customers who arrive at www.rdesfinancial.com are paired with a lender or lending partner and redirected only to lenders or lending partners that offer business loan products.
© 2016 -2023 R Desmond Financial Services LLC. All rights reserved.