small biz Archives

How to Get a Home Based Business Loan: 5 Options

September 29, 2026April 17, 2024 by Maria Khatiashvili

Home based business loans guide with a laptop, construction plans and hard hat in a home office.

Funding for a Home-Based Business

Getting the funding you need for a home-based business can be challenging. Home based business loans can help eligible businesses cover equipment, inventory, payroll and other operating costs without a separate commercial office. Approval depends on the business, the financing product and the provider’s requirements.

Starting a home-based business means sorting out licenses, taxes and day-to-day operations. Finding business capital to start, grow or expand is another step. If you are wondering how to get a loan for a home-based business, understanding what funders look for is a useful place to start.

Many small companies start at home. It is where owners build their customer base and lay the foundation for the business. Money can be tight during those early years.

Aside from getting clients, one of the biggest challenges for business owners is finding financing. Some funders apply stricter requirements to home-based businesses, especially when operating history or collateral is limited. There are still several financing options to consider.

Home-based business funding can take several forms, from equipment financing to a revolving line of credit.

This guide covers five funding options, why approval can be harder and what to prepare before you apply.

Explore funding for your home-based business with Excel Capital: Apply Now

Home-Based Businesses After COVID: A More Common Way to Work

Home-based businesses were common long before the pandemic. The SBA Office of Advocacy’s 2020 Small Business FAQ reports that about 50% of all U.S. businesses were home-based including businesses without employees. That figure comes from older survey data, so it describes the pre-pandemic picture.

Since COVID-19, working from home has become a regular part of business life. Consultants, online sellers and service businesses can manage clients, payments and teams from a home office. For many owners, there is little reason to take on a separate office lease.

U.S. Census Bureau data on working from home illustrate the broader change: 13.8% of U.S. workers usually worked from home in 2023, compared with 5.7% in 2019. These are workforce figures, rather than a count of businesses or loans, but they help explain why working from home feels much more familiar today.

Working from home can cut rent, commuting and office costs, leaving more money for equipment, marketing and staff. Even with lower overhead, you may still need working capital when bills come due before customers pay.

Why Many Businesses Operate From Home, Especially Contractors

Construction is a good example. A general contractor, roofer, electrician or remodeler may handle estimates, scheduling and bookkeeping from a home office while crews work at customer job sites. Paying for a separate office may add little value when customers rarely visit it.

A contractor can run the office from home while owning tools and equipment, using a storage yard, employing a crew and working on signed projects. The address alone tells a funder very little about the size or stability of that business. Our guide to construction business loans explains financing needs such as materials, payroll and equipment while waiting for project payments.

The same logic applies to mobile service providers, online retailers, bookkeepers and creative agencies: the work may take place at clients’ properties, online or across a remote team. A funder needs to understand how that business operates and earns revenue.

Still deciding what to launch? Explore our home-based business ideas for options that fit your skills and experience.

Why Can It Be Harder for a Home-Based Business to Get Funding?

Perceived flight risk and business continuity

A funder wants to know that your business will still be operating when payments come due. Without a commercial lease, storefront or fixed business location, some funders may worry that it would be easier to shut down, move or become difficult to contact. This perceived “flight risk” can make them more cautious about an application.

A commercial lease is only one sign of commitment. Years in business, repeat customers, signed contracts, consistent deposits and an address the funder can verify can also show that you have an established business. Closing or moving a business does not, by itself, cancel its debts, contracts or applicable personal guarantees.

Fewer fixtures and other assets available as collateral

Some home-based businesses have few or no business-owned fixtures compared with a shop, restaurant or commercial workshop. Fixtures are goods that attach to real property so closely that applicable law treats them as part of that property. A laptop, portable tool or movable desk is generally equipment or furniture, rather than a fixture.

Fixtures can be part of the collateral securing business financing. Depending on the security agreement and applicable law, other collateral may include equipment, inventory and accounts receivable. A UCC filing gives public notice of a claimed security interest; filing alone does not create collateral or make low-value assets more valuable. If there are few assets a funder could recover after a default, qualifying for financing that relies on collateral may be harder.

The UCC’s rules for security interests in fixtures include special priority rules, and a creditor may need a fixture filing. The actual collateral depends on the agreement, the borrower’s rights in the assets and state law. A business address at home does not automatically put the house or the owner’s household fixtures under a business UCC lien.

Harder-to-verify revenue and repayment capacity

If personal and business transactions run through the same account, it can be hard to tell how much the business earns. Incomplete records or dependence on one customer can raise more questions. Clear bank statements, current financial reports and a practical repayment plan help the funder understand what is happening in your business.

What helps: Explain why working from home fits your industry, where the work actually happens, and how the business earns steady revenue. Support that explanation with licenses, insurance, customer contracts, invoices, bank statements and an accurate list of business assets and existing liens.

How to Fund a Home-Based Business: 5 Financing Options

When comparing home based business loans, start with what you need to finance. Equipment purchases, day-to-day expenses and gaps between customer payments may call for different products.

Five home-based business funding options: equipment financing, merchant cash advance, short-term loan, unsecured business loans and business line of credit.

1. Equipment Financing

Equipment financing helps business owners purchase eligible equipment needed to run the business.

The loan amount is dependent upon the type and cost of equipment needed. Repayment terms depend on the provider, the equipment’s expected useful life and whether it is used or new. The equipment itself commonly serves as collateral.

2. Split Funding / Merchant Cash Advance

Split funding is a form of merchant cash advance that works on a “pay as you earn” model.

Providers generally structure a merchant cash advance as a purchase of future receivables rather than a loan. In a card-split arrangement, an agreed percentage of your business’ credit and debit card sales goes toward the purchased amount.

On days with higher card sales, the provider collects a larger remittance. When card sales drop, you remit less. Other revenue-based advances collect through ACH debits and may include reconciliation provisions. Review the total cost, collection method, adjustment rights and any guarantees in the agreement.

3. Short-term Loan

Short-term business loans help owners cover immediate expenses and manage cash flow gaps.

Some providers require less paperwork than a traditional bank loan, and you can use the funds for a range of business purposes. Permitted uses depend on the agreement.

Common uses of short-term business loans are inventory purchases, new hires and employee training, equipment repairs, and filling gaps between accounts payable and receivable. A shorter repayment schedule can mean larger payments and higher costs. Repayment may be daily, weekly or monthly, depending on the lender and agreement.

Traditional term loans also have a fixed repayment term, but the interest rate may be fixed or variable. Payments are often monthly. Whether payments build business credit depends on the lender’s reporting, and any prepayment penalty depends on the agreement.

4. Unsecured Business Loans

Unsecured business loans can help home-based owners who do not have specific assets to pledge as collateral. Lenders review factors such as revenue, cash flow, credit and operating history. Product terms vary, and some providers may still require a personal guarantee or blanket lien on business assets.

Depending on the agreement, you can use the funds for inventory, payroll, marketing, equipment or other business expenses. Compare the total cost and payment schedule with the cash your business expects to collect.

Some lenders collect repayments through ACH, which means automatic debits from your business bank account. ACH describes the payment method. Your agreement determines whether payments fall daily, weekly or monthly.

Credit score, revenue, time in business and collateral requirements vary by provider. Some products accept borrowers with challenged credit or do not require a specific asset pledge, but a personal guarantee or a lien on business assets may still apply. Review the agreement before accepting an offer.

5. Business Line of Credit

A business line of credit, also known as a “LOC,” gives business owners access to a credit limit they can draw on as needed. On a revolving line, repaid principal generally becomes available again, subject to the agreement. Lenders generally charge interest on the amount you draw and may also charge fees.

There are two types of Business Lines of Credit:

1. Unsecured Business Line of Credit

Unsecured business lines of credit do not require you to pledge specific assets as collateral, though product descriptions vary. Check whether the lender requires a blanket business lien or personal guarantee.

This can be appealing to home-based business owners with limited fixed assets. Credit requirements vary, and lenders may also review revenue, cash flow and time in business.

In addition, they tend to be smaller with higher interest rates.

2. Secured Business Line of Credit

A secured business line of credit requires business owners to put up assets as collateral in order to obtain the loan.

Depending on the lender, collateral may include inventory, accounts receivable, equipment or other assets. If you default, the lender may enforce its rights against the pledged collateral under the agreement and applicable law.

Both secured and unsecured business lines of credit will require your business to be in good standing.

Lenders typically prefer to work with businesses that are well-established and in good financial standing, thus demonstrating the ability to pay back the loan. Your lender may request financial documents to assess your ability to repay.

Explore a business line of credit for your home-based business with Excel Capital: Apply Now

Can a Home-Based Business Get an SBA Loan or Microloan?

A home-based business may be eligible for SBA-backed financing if it meets the program’s and lender’s requirements. The SBA’s 7(a) eligibility guidance emphasizes an eligible operating business, creditworthiness and reasonable assurance of repayment. A home address alone does not establish eligibility. See our SBA loan guide for an overview.

For smaller needs, including some startups, the SBA Microloan program provides loans of up to $50,000 through approved nonprofit intermediaries. Each intermediary makes its own credit decisions and sets terms. This can be worth exploring if your home-based business does not yet have the operating history needed for other financing.

How to Apply for Home Based Business Loans

One of the benefits that come with alternative lending is a fast application and approval process.

Applications for home based business loans vary by provider. Some alternative lenders offer streamlined applications, but funding speed and paperwork depend on the product and completeness of your application.

Your lender reviews the initial paperwork and may ask for additional documents before making a funding decision.

Prepare these common business documents before you apply:

One-page application
Voided check (for your business account)
Copies of identification for all owners
Proof of ownership: Most recently filed tax return, corporate bylaws or LLC articles of organization
Proof of EIN, such as an IRS EIN confirmation letter; see our Form SS-4 and EIN documentation guide
Recent business bank statements (the number of months varies by provider)
Aging AR report if you invoice customers on net-30 to net-90 terms

Your lender may not need every document on this list. Having current records ready can help you answer questions quickly and avoid delays.

Help the funder verify your home-based business

Also be ready to explain where you perform your work and provide current licenses, insurance, proof of your operating address and customer contracts or invoices. Contractors can include a project backlog and payment schedule. Keep personal and business finances separate, disclose existing financing and liens, and prepare a current profit and loss statement. If customers pay after you complete a job, an accounts receivable aging report can help explain the gap between billed revenue and collected cash.

Home-Based Business Funding with Excel Capital

When comparing funding for a home-based business, look at the total cost, payment schedule and any collateral or personal guarantee requirements.

At Excel Capital, we help business owners explore financing options based on their revenue, operating history and funding needs.

The application process is quick. If approved, some products may fund in as little as 24 to 48 hours after required documentation and verification are complete; timing and availability vary.

Click below to start your application:

Start your application for home-based business funding: Get Started

How a CRM Can Benefit Your Business: Exclusive Interview with ConvergeHub Founder/CSO, Manash Chaudhuri

September 7, 2017September 7, 2017 by Simon Reed

Using a great customer relationship management (CRM) is extremely beneficial when it comes to running your small business. Not only does this type of software help to analyze customer interactions and data, it is also a great tool for marketing, inter-office communication, and overall company improvement. Excel Capital Management sat down with ConvergeHub’s Founder/CSO, Manash Chaudhuri to discuss their software and the benefits of using a CRM. Check out our exclusive interview below!

Excel Capital Mamagement: For business owners who may not be familiar, what exactly is a CRM?

Manash Chaudhuri: CRM is an acronym that stands for Customer Relationship Management, a technology, practice, or strategy designed to help businesses to perk up their interactions and relationships with potential and present customers. A CRM system also helps organizations to streamline business processes, stay connected to customers, and improve profitability. In general, when people talk about CRM, they usually refer to software, a tool that helps with contact management, sales and support management and more. A CRM system helps us to focus our organization’s relationships with individual peoples, which includes customers, colleagues, service users, or suppliers. It also helps in finding new customers, winning their businesses, provide customer support and other additional services throughout the relationship.

Here is an illustration of what a CRM is and what it can do for an organization:

ECM: What are the benefits of using a CRM system and what kinds of industries typically use them? Can business owners of all industry-types benefit from using the software?

MC: The primary benefit of implementing CRM system in an organization is that the software can help to provide a clear 360-degree view of your prospects and customers. Using a CRM platform, you can view everything in one place- a customizable, simple dashboard that can tell you customer’s previous history with your organization, the past and present statuses of their orders, any outstanding customer issues, and more. A CRM can also help you to include information from your prospect and customer’s public social media activities- their preferences and dislikes, what they are socially sharing or saying about your brand or your competitors. Marketing personals can use a CRM system to better understand their sales pipeline activities, which makes forecasting more accurate and simple. Using a CRM, you can find a clear visibility of every leads or opportunity, highlighting a clear path from inquiry to sales. Though CRM system has traditionally been only used as a sales and management tools, customer service is also seeing great benefits in using this software, which once embedded in your business DNA can even help HR and supply-chain-management in your company. Yes, all type of companies can benefit from using CRM, such as in market verticals namely – banking, consultants, customer support, law firms, finance, merchant funding, real estate, investment banking, healthcare, e-commerce, retail, insurance, professional services, and others.

ECM: When it comes to sales and marketing, why would you suggest business owners use a CRM rather than do everything manually or staying in communication via old-fashioned email?

MC: An active sales and marketing team can generate a deluge of data. Hence, more administration works mean less time for everything else in your company. Moreover, your reps can be out of the office talking to customers or for finding out valuable business information- but too often all these information gets stored in laptops, handwritten notes, or remains inside the heads of your sales and marketing teams. However this traditional way of retaining customer and business information can make details get lost, meeting not followed-up on time and prioritizing customers can be a matter of intricate speculations, rather than a conscientious exercise based on facts. Moreover, modern day customers may contact you over a broad range of platforms including emails, phones, or social media- asking questions about an issue or for following up on orders. Even, if you have successfully collected all these data, you may often face the challenge of making sense and extracting intelligence from this disparate information on diverse platforms. Reports can be hard to create and they can waste your sales and marketing team’s valuable selling time. Managers in your sales and marketing team can also lose sight of what their teams are up to, which means that they cannot offer the right support at the right time. Hence, without a common platform for customer interaction like CRM software, customer information, details of their interactions and communications can get lost in the flood of information, leading to slow and unsatisfactory response, which is why CRM software in need for replacing the traditional method of doing everything manually or staying in communication via old-fashioned emails. To put it briefly, a good CRM system gathers information from a huge variety of sources. It gives you unprecedented insights to spot problems, improve what you offer and identify gaps in your marketing and sales processes, which cannot be performed by following legacy methods or in this world of social media just by staying in touch with your customers over email.

ECM: To get back to marketing, email marketing campaigns are a huge deal these days. Why might a business owner use a CRM, such as ConvergeHub, rather than a software such as MailChimp, which is typically used for this sort of thing?

CH: If just sending email-blasts are your key concern, then email automation software like MailChimp can serve up your purpose efficiently. However, if you are looking beyond that, for a next generation software that offers a comprehensive marketing, sales and service suit then nothing can replace ConvergeHub. MailChimp like most of the other Email marketing solution relies on email tracking and web analytics, however, when you have a prospect showing interest; all these softwares will then have to export the data and then import or manual enter the data into some form of Sales management system. This is where ConvergeHub brings a lot of value. ConvergeHub not only offers a complete Email marketing solution and it also has a very nice handshaking mechanism which seamlessly move your prospect data from Marketing to Sales by just click of a button. It is a huge time saver and it can deploy your DRIPs or customer behavior based segmentation or other related automation activities without missing a single moment. Therefore, while MailChimp offers just limited marketing automation with basic functionalities, ConvergeHub is more than just a newsletter and email marketing tool. ConvergeHub is a fully functional customer engagement platform and a reliable and far more innovative MailChimp alternative, which can also integrate email automation software like MailChimp within its scalable platform.

ECM: Tell us a little bit about your company, ConvergeHub and what makes it a leader CRM systems.

CH: ConvergeHub is a powerful all-in-one cloud CRM software that combines Sales, Marketing, Customer Service, and Billing in one unified platform, which enables businesses to attract more prospects, win more deals, and build stronger customer relationships. ConvergeHub is a fully featured CRM and does not call for expensive add-ons. It is perfect for small to medium sized businesses that have the same software needs as large enterprises but do not have the additional budget to spend on multiple standalone software applications and their integration.

Some of the features that make ConvergeHub so special to owners of businesses include:

Sales Force Automation-SFA
Marketing Automation
Customer Service / Support / Case Management
Document Management and Collaboration
Partner Management
Project Management
Invoicing and Payments
Reports and Dashboards
Customizable Modules
Social CRM
Use of minimum mouse clicks

Finally, ConvergeHub CRM for SMB is also a price performance leader, which lets you create unlimited lead, contact, account, templates, automation, and you can ask for help anytime from our support team without worrying about additional cost.

Motel loans: What funding options are best for Hotels, Motels and Bed and Breakfasts.

February 19, 2020June 13, 2017 by Nathan Abadi

Motel Financing: How to Obtain the Working Capital You Need | Excel Capital Management

Owning and operating a motel business is no easy task whether you have one location or are in charge of a franchise. Keeping up with trends and the constant competition among other motel and hotel chains can be quite difficult at times, and some additional working capital may be needed to keep up. When it comes to applying for financing help, many motel owners have a tough time going the traditional route. Traditional banks and lenders tend to list motels as high risk for various reasons such as seasonality, low numbers of guest bookings, negative reviews, lack of collateral to pledge when obtaining financing, and more. These concerns are all justified, but it’s not the end of the road. There are many alternative funding options available to motel business owner. Let’s take a look!

Motel Financing Options

Split Funding aka Merchant Cash Advance: Short-term financing transactions that are collected through a set percentage of your Visa and MasterCard sales that are accepted at your place of business. Probably the most common term used in the industry. These do not have a set repayment schedule and are based on the volume of your businesses credit card processing sales. These are usually only guaranteed by the future sales of your business.

Equipment Financing: Equipment Financing is a loan product used to help business owners purchase any type of equipment needed to run the business. The loan amount is dependent upon the type of equipment needed, as the repayment term is usually as long as the expected life of the piece of equipment and if it is used or new.

Term Loans: A loan that is backed by a bank for an exact amount that has a specified repayment timetable and interest rate that are adjusted accordingly. Terms mature between 1 and 10 years.

ACH Loan: These loans may need personal guarantees, and have a fixed repayment schedule that is paid either daily, weekly or monthly. These products are catered to industries that do not accept credit cards and need a fixed payment.

Business Lines of Credit: A rotating loan that gives business owners access to a fixed amount of money, which they can use day-to-day according to their need for cash. Interest is only paid on the amount of the advance actually used.

What Can Working Capital Acquired via Motel Financing Be Used For?

What’s great about all of the aforementioned motel financing options is that the working capital acquired through any of them can be used for virtually anything as long as it pertains to the business. Whether your motel has hit a rough patch and you need the capital to fix cash flow issues, or business is booming any you want to grow bigger and better, you can use it! Here are just a few popular working capital uses among motel owners:

– Business Expenses and Tax Payments

– Payroll and New Hires

– New and Additional Locations

– Equipment and Supplies

Three Crucial Steps to Take Before Applying for Motel Financing

As you would assume, there are many, many alternative lenders out there who can promise you the world when it comes to your motel financing needs. While most lenders and brokers out there are good guys, it is in your best interest to be cautious and to ask questions. Before you sign anything, make sure you fully understand the business funding solution you are applying for, how it works, and what the overall cost will be – literally and figuratively. Here are three crucial steps to take before you apply:

Identify Your Business’ Needs – First things first, why does your business need a loan in the first place? Sit down with your core staff members, financial advisers, or simply yourself to determine your business’ needs and how a quick business loan could help. Do you need to purchase inventory, hire additional staff, catch up on bills? Having a plan of execution once the loan is acquired is essential for success, as well as a plan for paying the loan back.

Do the Due Diligence – You may hear the phrase, “do the due diligence” a lot when researching quick business loans. In simpler terms, this means doing the necessary research before applying and accepting an offer with a lender. There are thousands of lenders and brokers out there – traditional and alternative. Don’t take everything at face value. Learn as much as you can about each lender you are interested in, compare pricing, read reviews, ask questions, and follow your gut if something just doesn’t seem right. You have the right to protect yourself and your business. The last thing you want to do is put your business in more of a financial bind or have setbacks. Research and knowledge is key. Do your due diligence.

Choose the Best Quick Business Loan Option – Maybe you did this when identifying why your business needs a quick business loan, but it’s a good idea to confirm again the type of loan product your business truly needs. Speak with your chosen lender to go over all of your options and get a better understanding of each financing option and how everything works.

Find Out What’s Needed To Qualify and Apply – All lenders have different business loan qualification guidelines. Depending on your business’ financial standing the amount of money you are looking to obtain, the documentation needed to be presented with an approval will vary. It is a good idea to at least have your last six months of business bank and credit card processing statements available, as well as additional financial documents like P&L and Balance Sheets and tax returns easily accessible.

The Application, Approval, and Funding Process

The great thing about motel financing is that the application, approval, and funding process is quick and simple. Generally, lenders that provide these financing options only require a simple, one-page application, four months of recent business bank statements, and four months of business credit card processing statements to get started. Once these pieces of documentation (and maybe a few others) are received, you can be presented with an approval and funded in as little at three business days!

For more information on motel financing options, contact one of our funding specialists today at 877-880-1106 or APPLY NOW!

Hard Money Business Loans and How One Can Benefit Your Business

May 24, 2017 by Nathan Abadi

Hard Money Business Loans and How They Can Benefit Your Business | Excel Capital Management

If you’re a small business owner, you most certainly are aware of the many reasons why you, or any other entrepreneur for that matter, might need a small business loan. The reasons could range from office renovation, purchasing new inventory, up-dating computers or other equipment, or paying unforeseen taxes and other obligations. Or, maybe business has been so good for you that you found yourself shorthanded and need to hire more people, but don’t have the cash on hand to cover the cost of adding personnel.

For small businesses, just as in any other business, cash is king. Having sufficient operating capital can mean the difference between growing your business and simply standing still. In some cases, it could even be the difference between great success and utter failure. Many small business owners, in the early stages of operation, may not have thought that they could get a loan to keep them going until they prospered. Seasoned business owners could have mistakenly assumed that the only place they could go for a business loan was the banks, and they wouldn’t be successful. Even thriving businesses are recognizing that they could benefit from an influx of cash, and these types of loans could be the answer to their problems. Not to worry! There are options. Consider a Hard Money Business Loan.

What is A Hard Money Business Loan?

Hard Money Business Loans are a viable alternative to bank loans for providing necessary capital to companies that may be under-capitalized, growing rapidly, in the middle of a turnaround, or highly leveraged. In many cases, a small business might just require a cash infusion for preventing their growth from coming to a standstill or for getting over a financial hurdle. Using your business’ assets could be the key to obtaining the working capital needed for inventory, equipment repairs and purchases, or anything else your business may need. In short, you would be borrowing against your future business income, therefore, gaining access to that revenue sooner rather than later.

What Can a Hard Money Business Loan Be Used For?

The beautiful thing about a Hard Money Business Loan is that the working capital acquired through it can be used for literally anything as long as it pertains to your business. Many small business owners opt to use their loans for:

Business Expenses and Bills
Cover The Costs Customers Who Fail to Pay On Time
Seasonal Slow-Downs
To Fix Cash Flow Problems
New Hires and Employee Training
Inventory and Equipment Purchases
Marketing and Advertising
Product Manufacturing
Office Space
Research and Development
Unforeseen Circumstances (ie: natural disasters, employee resignations, equipment failure)

What Types of Assets Can Be Put Up as Collateral?

Hard Money Business Loans, as mentioned, are given to businesses that have shown steady and stable operating history. The business must also possess assets that can be financed and have not been put up as collateral to another lending institution. In addition, the company must not have any serious legal or tax issues which could impact the loan. Here are a few other pieces of information to be aware of:

– Accounts Receivable are the main type of collateral used to obtain an Hard Money Business Loan. Other forms of collateral such as equipment, real estate, inventory, and more can be used depending on the alternative lender’s restrictions and requirements.

– The Hard Money Business Loan amount you are approved for is determined by the value of your collateral/assets. Businesses can generally borrow 75% – 85% of the value of their accounts receivable. If the collateral a business puts up is equipment or inventory, they can generally borrow 50% of the value.

– Most businesses are approved for an Hard Money Business Loan in the amount of $500,000, and this number can exceed well into millions of dollars. Alternative lenders offer far lower interest rates than traditional banks, however, these numbers vary depending on the lender.

Applying for a Hard Money Business Loan

You may hear the phrase, “do the due diligence” a lot when researching business loans. In simpler terms, this means doing the necessary research before applying and accepting an offer with a lender. There are thousands of lenders and brokers out there – who can off your a great Hard Money Business Loan. Don’t take everything at face value. Learn as much as you can about each lender you are interested in, compare pricing, read reviews, ask questions, and follow your gut if something just doesn’t seem right. You have the right to protect yourself and your business. The last thing you want to do is put your business in more of a financial bind or have setbacks. Research and knowledge is key. Do your due diligence, and you will be ready to move onto the next step.

Generally, regardless of the industry type, as long as your business has decent financial statements, collateral, customers that pay on time, and reporting systems, obtaining a Hard Money Business Loan shouldn’t be too difficult. An added benefit is that this type of funding solution comes with regular fixed payments and lower interest rates compared to a traditional bank loan. This means less worries and more time to focus on your business and its success!

Typically, most lenders that offer Hard Money Business Loans only require minimal paperwork in order to present your business with an initial approval. As mentioned, your business’ bank account can even be funded in as little as three business days! Here is a list of items to have ready when applying.

Completed application provided by your chosen lender
Four months of recent business bank statements
Four months of recent credit card processing statements (if your business accepts credit cards)
Clear copies of identification for all business owners
Voided check for the business bank account that is to be funded

Keep in mind, that because this type of loan is asset-based, additional documentation will be required, however, it is still much less than traditional bank requirements.Many Hard Money Business Loans have $750,000 to $1,000,000 in collateral requirements.

For more information on Hard Money Business Loans, contact one of Excel Capital Management’s funding specialists at 877-880-8086 or APPLY NOW!

What are the 4 C’s of Credit For Getting a Business Loan?

February 10, 2020March 8, 2017 by Simon Reed

The 4 Cs of Getting a Business Loan | Excel Capital Management

You’re probably already aware that your credit score plays an important role in determining your eligibility to obtain a business loan or line of credit and that’s why it’s more important than ever to know what the 4 C’s of credit are.

However, what most don’t know about the 4 c’s of credit is what specific factors lenders look for within that overarching category.

When determining your eligibility for a loan, lenders look for what are called the ‘4 C’s of credit’ and, in fact, they stretch beyond just your credit score.

The number and type of factors vary somewhat depending on the lender, however, the four C’s of credit were created to help simplify and clarify the loan process for small business owners looking to obtain a loan.

It can be looked at like a guiding light to help understand what lenders and other funding companies look for when evaluating a business for credit

What are the 4 C’s of Credit?

The 4 C’s of credit are as follows –

Collateral

Typically appearing in the form of property or other physical assets, collateral is any asset a borrower can offer to secure a loan.

If the borrower defaults on the loan, the assets they used as collateral can be seized. Many small business owners are wary of secured business loans because of this reason as they require hard collateral that is tied to your personal assets. Many business owners are and have the right to worry about crossing the line between business and personal. Making a business mistake shouldn’t have to affect your personal assets.

Fortunately, unsecured business loans often don’t require collateral, and if they do, it’s a form of ‘limited’ collateral such as a portion of business sales which isn’t required to be paid back if you go out of business, meaning the risks are much lower.

Capital

Capital refers to any business asset that can be sold to make loan payments. This includes available money and cash savings, investments, properties with equity, and other assets that you could sell or use to quickly obtain cash.

If business drops off and you’re unable to pay your loan payments for a time, lenders want to see that you have liquidity to cash out on so you can continue to make payments on time.

Capacity

Capacity refers to your business’ ability to make the revenue needed to pay back a loan.

Lenders don’t just want to see that you have assets you can use to pay off a loan (or which they can secure to do so), they want to see a history of being able to make regular payments regardless of those assets.

Character

The final ‘C’ in the 4 C’s of credit, lenders determine character by reviewing the borrower’s personal credit history and calculating several factors together.

Factors taken into account include:

Your total amount of debt
Delinquent accounts
Available credit
And whether you make payments on time

If you’re in need of a small business loan but don’t believe you can satisfy all four C’s of credit, don’t worry, there are several other options available. Now that you know what the four C’s of credit are you can easily understand how to prepare yourself and your business when you try to pursue a lender for any sorts of funds.

At Excel Capital, we provide a variety of financial solutions which we can offer even if you have bad credit.

Click here to complete our short application to get in touch with one of our financial specialists to see how we can help.

TrakLoans: How They Can Help Your Small Business

March 13, 2020December 15, 2016 by Simon Reed

As a business owner, you understand the importance of having the working capital necessary to grow your business and achieve success. Whether business is booming and you need capital for inventory purchases, expansion, new hires, and training, or you run into some cash flow issues over time and need it to these problems, most businesses will apply for funding at some point. You’re probably a little familiar with many of the alternative funding solutions we offer such as Merchant Cash Advances, Business Lines of Credit, Term Loans, and more, but now, we’d like to introduce to you the TrakLoan.

TrakLoans are a flexible, cash-flow friendly way to access small business capital fast. These loans work particularly well for businesses whose owners value having the amount they remit fluctuate with their daily payment card receivables. TrakLoans are also a stress-free funding solutions because instead of sending a large payment amount once a month, a flat percentage of your business’ credit and debit card sales are automatically remitted on a daily basis. That being said, a larger payment amount is only sent on busy sales days rather than slower days. Additionally, these types of loans have no maturity date and no fixed payment amounts. Thanks to this process, business owners can stay 100% focused on growing their business rather than repaying a loan. There are no checks to write or harassing phone calls coming to your business. The payment process stops automatically once the TrakLoan is repaid in full.

To add to the benefits, unlike traditional banks and lenders, alternative financing companies, such as Excel Capital Management, that offer TrakLoans have minimum qualification requirements. All that is required to get started is a completed one-page application form. No personal collateral is needed to qualify, and poor credit is not a deal breaker. For more information on TrakLoans, APPLY NOW!

How Automating Repetitive Business Tasks Can Save You Time

February 19, 2020September 28, 2016 by Nathan Abadi

As a business owner, you know that there are many tasks you and your staff find yourselves doing that just take up more time than they should. While important, spending unnecessary time on repetitive tasks that could be used to better the business in other areas can negatively affect productivity and company morale. The negative impact is made much worse for small businesses that just don’t have the manpower to handle hundreds of tasks per day, in turn, stunting the overall growth of the business. Here are a few common tasks to consider automating!

Checking and Answering Emails:

For many businesses, email is the lifeline. It is used to correspond with partners, answer customer inquiries, make requests, and much more. While checking your email is essential, if possible, try setting a few solid times throughout the day to check your inbox rather than every few seconds or minutes. If this is not possible, setting up your email filtering to allow urgent emails to go to one inbox and less important emails to go to another could save you time and stress. Additionally, try setting up automated email replies for when you are out of the office or even an autoresponse to let customers and partners know that you will reply to them shortly.

Payroll and Accounting:

Since you are most likely doing payroll weekly or biweekly, it may be a good idea to try to automate this process as much as possible – especially if you have a large staff. Consider hiring a payroll company to take on the job for you so you can focus on running your business, or if you want to handle most of the job yourself, consider purchasing a payroll, bookkeeping, or accounting software such as Quickbooks or Sage50. These types of softwares will not only help you with payroll management, but they can also help you with keeping track of business expenses, paying bills, and more.

Social Media Marketing:

By now, we’re sure you’re on top of the social media business marketing trends. Constantly creating and promoting content is essential in running a successful business, but it is a hefty job. If you are managing all of your social media accounts yourself, it is easy to quickly become overwhelmed. Consider downloading an app such as Hootsuite. This neat app packs quite a punch, allowing you to manage all of your social media accounts at once. You can even schedule posts for each account (maybe you use Twitter, Facebook, and LinkedIn) and track analytics.

Inventory Management:

Keeping track of inventory is time consumer, but one of the most important tasks for your business. Proper inventory management will require work from actual employees, however, human error does occur, not to mention, this task can be a tedious one. To make ensure that you are on top of what inventory your business has in stock, what needs to be purchases, and what is selling and what is not, consider using an inventory tracking system. Keeping a handwritten record or even a Microsoft Excel spreadsheet is helpful, but Fisbowl or FlowTrac are two great softwares that can make the task even more seamless.