Answers to common business funding questions for Marion, Indiana owners, from refinancing an existing loan to how a merchant cash advance differs from debt.
Can You Refinance a Business Loan? A Marion, IN Retail Store Example
Yes, a business loan can be refinanced: a new loan pays off the old one, ideally at a lower total cost, a longer term or a better payment schedule. A retail store might refinance a short, expensive loan taken during a stock crunch once its sales history supports better terms.
Check the old loan for a prepayment penalty first, and add any fees on the new loan. A lower payment over a longer term can still cost more in total; compare the dollars, not just the monthly figure.
Is a Working Capital Loan Long Term When Bonding Costs Are in the Mix?
Usually not. Working capital loans run for months, sometimes a year or two, because they carry short gaps such as payroll before a draw is paid. For a contractor, bonding costs are part of starting a job, and a short loan or a line of credit can carry them until the first payment arrives.
If the bonding cost is part of a larger expansion, such as moving into bigger public work, a term loan sized to the expansion may fit better.
What Does a Business Loan Require From a Grant County, IN Convenience Store?
A business loan for a convenience store generally requires time in business, sales history, bank statements, tax returns, a list of debts and, for a purchase, the asking price and the seller's records. Many lenders ask the owner for a personal guarantee, and a station with fuel may face questions about tanks and supply contracts.
See the gas station loans page for fuel, coolers and station purchases.
What Is a Merchant Cash Advance (MCA)? The Version Marion, IN Chiropractic and PT Clinics Ask About
A merchant cash advance (MCA) is a purchase of part of a business's future card receipts. The provider pays a sum now and collects a larger agreed amount as a share of daily card sales. It is not a loan. A chiropractic or therapy clinic taking most of its income from insurance payers has limited card sales, so an advance tied to cards may not fit; the merchant cash advance page explains the mechanics.
What Are Small Business Loan Terms for a Marion, IN Insurance Agency?
Terms for an insurance agency loan depend on the purpose. A book purchase or agency acquisition is often financed over several years and paid back from the commissions the book produces; a working capital loan for a producer's salary runs months; equipment for the office runs for the equipment's useful life. The funding partner sets the actual term, rate and collateral.
See the insurance agency loans page.
Is Merchant Cash Advance Money Debt? What It Means for a Marion, IN Restaurant
Providers and many courts treat a true merchant cash advance as a purchase of receivables rather than debt, but the contract terms decide how it works in practice. For a restaurant, the practical point is that the purchased amount is owed out of future card sales and the collections come out daily or weekly.
Price any advance next to a line of credit or working capital loan before agreeing.
Further reading: all six funding types compared, steps of a request and the online form.
By Baymark Commercial Capital ยท Updated