[Sachip24]

I know this topic comes up a lot on here but are there any lenders that do actual term loans like funding circle besides Creditbility?

[Atlas Financial]

Fundation and Lendistry.

[FinancialSwissArmyKnife]

Smart Biz

[abfunders]

I have said this one, I'll say it again:
Any loan that is due at the end of a certain time is a "term loan."
Sometimes the term loan is 3 years, sometimes 30. Payments are due monthly, sometimes weekly.
An MCA is a term product with a daily or weekly payment plan, and will definitely be shorter than 2 years.

I assume what you mean is that you're looking for a lender who will do a low-interest product (which can be categorized as a loan and doesn't need legal magic to be an MCA to get around the usury laws) who does monthly payments?

In which case, a credit facility might be a better option for working capital. A factor is also fantastic, since there are actually no payments due at all.

I hope this puts things in perspective to help you coach a client that things aren't so bad with the other options out there.

[RichardGerard]

Smartbiz is a brokerage. They are presently working with Cadence Bank (formerly State Bank), Ist Home, Sea Coast (different division from our friend Kevin) and one other right now. Lately we have found their feedback times to be challenging at best, and since we have long gathered all the documents and have done all the compliance follow up we have been packaging and sending out these deals to other SBA Express Lender Bank Partners- and providing Broker partners 2.5% of the deals (as opposed to others that offer 2%).

There are a few other Banks that have niche products typically up to 150k for expedited turn around that we deal with- some have smaller footprints, while others have a high FICO restriction (700 plus) etc. We have one partner in the Northeast that gives us 3-5 Underwriting on deals up to 750k with less than 30 day closings if there are no appraisals and title work required.

The lenders you mention are all reputable have their niche (not so sure about lendistry based on personal experience)- however its easier to fit a 7-10 year loan into a companies budget than a 2-5 year note. Because of that it's easier for client to qualify for legit bank loans. The issue is the 30 days to get it done. Why is that a problem? If the client needs a bridge I'm certain many folks here wouldn't mind funding them TWICE.

Knowing which lender has an appetite for which deals is important. Newtek has a much higher collateral requirement than many PLP's so they're not the folks to bring Business Acquisitions to etc. Some banks like self storage and bed and breakfasts, some like Commercial Real Estate up to 100% LTV, others like Insurance Brokers etc. We have over 100 BANK partners at present and navigate the waters- AND make sure the Broker is protected and the highest commission is paid.

Knowing where to take it is the key (and how they want it packaged).and getting a client a 2- 5 year note is rarely the answer if it only saves them 2 weeks of additional Underwriting and packaging.

Feel free to reach out to us on Bank Loans that you're not sure of. I'm certain most folks have contacts but knowing which bank has a flavor for which deal is really the key- AND making sure the client understands EXACTLY what paperwork will be needed to get the deal closed.

Richard Gusmano, Business Capital Consultants
3237 Route 112 Suite 9
Medford, NY 11763
Office 631-880-7501

www.bccusa.com

richard@bccusa.com

[jmaloneLoanMe]

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