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With a secured line of credit, collateral is required by the lender to secure the loan against default. The collateral is often the receivables, equipment, and/or inventory of the applicant's company. The cost of a secured line of credit is much lower than an unsecured line of credit. A secured line of credit issued by a bank can range from prime rate plus 1%, and a secured line of credit issued by a non bank can range from 7%-12%.

A non secured line of credit, or merchant cash advance, is approved based on the monthly cash flow of the applicants business. The cost of an unsecured line of credit is much higher than a secured line and payments are often weekly or daily, monthly payments are an option for a very solid applicant. Unsecured lines can be considered when there is an urgent cash requirement for the business, and the repayment would not significantly impact the day-to-day cash flow of the business.

5 year term loan - The typical all-in cost for a 5 year unsecured term loan is 15% annually, with monthly payments. A minimum credit score of 680 is needed to qualify for a 5 year term loan offer of up to $300,000.

Commercial Real Estate and Investment property owners facing credit-related or financial issues often get a bridge loan or hard money loan to assist them. Springboard Funding Partners facilitates these loans to help businesses get out of difficult financial places, buy a new property, or keep their current property. Additionally, we assist our clients in strengthening their financial positions so that they qualify for low-interest rate mortgages within six to 12 months. A bridge lender will typically lend 60% to 65% of a client’s property’s appraised value with loan interest rates can range from 10%-12% interest only, for 6-12 months.

Our ample experience and broad network of direct commercial real estate lenders work for you. Funding is currently available for preferred asset classes, i.e. multi-family, mixed-use, light industrial, medical, and self-storage. City and suburban properties are preferred. The interest rate offered will be determined by the credit of the applicant, the cash flow of the property, and the loan to value requested. Current rates range from the low 3’s to low 5’s, typically fixed for 5 years with a 25-year amortization. Lenders are also actively looking for investment rental properties and fix and flip opportunities. Prior experience in these areas are preferred.

This tax credit can provide a refund with maximums of $5,000 per W2 employee for 2020 and $7,000 per W2 employee per quarter for 2021. To qualify for the 2020 credit, your business had to have been impacted by COVID, resulting in a full or partial shutdown, or restrictions on capacity, etc. Therefore most businesses will qualify for the 2020 credit/refund. To qualify for the much bigger credit for 2021, if your quarterly revenue drop is 20%+ greater than the same quarter in 2019, your business will qualify, Schedule a no-obligation call with our tax credit specialist partner to learn if your business will qualify.

Many small business owners are eligible for the SBA EIDL loan, including sole proprietors, s corps, independent contractors, and most non-profit organizations. The COVID-19 EIDL loan is a 30-year loan with a 3.75% fixed interest rate, or 2.75% for non-profit organizations. Payments under the SBA EIDL loan are monthly, with the first payment not due for 18 months after the loan is funded. If you received an EIDL loan in 2020, your first payment is not required until 24 months following funding.