Am I Eligible for a Small Business Loan?

Many small business owners avoid applying for loans because they do not think their business will be eligible. The fact is that a significant portion of small businesses are qualified to receive funding. Learn more about some of the funding options your small business may be eligible to attain.

Merchant Cash Advance Eligibility Requirements

This financing option enables small businesses to borrow against future credit card sales. Depending on the lender, merchant cash advance eligibility requirements differ in various aspects. Generally, the minimum qualifications for a merchant cash advance ensure that you have been in business for at least one year, make at least $50,000 in revenue annually, and have a minimum credit score of 500.

Merchant cash advances provide several advantages to small businesses, including:

·         Flexible repayment plans

·         Additional advances may be available in the future

·         No collateral required

·         No wasted time filling out extensive financial documents

·         Provides a continuous cash flow

·         High approval rates

Learn More: Merchant Cash Advances for Small Businesses

7(a) Loan Eligibility Requirements

The US Small Business Administration’s most utilized loan program, 7(a) loans are ideal for various business necessities, including:

·         Real estate purchases

·         Working capital

·         Refinancing any current money you owe

·         Funding for the purchase and installation of equipment and machinery

·         Buying supplies, furniture, and other business needs

To be eligible for 7(a) loan assistance, businesses must:

·         Operate for profit

·         Be considered a small business, as defined by SBA

·         Be engaged in, or propose to do business in, the United States or its possessions

·         Be able to demonstrate a need for a loan

·         Use the funds for a sound business purpose

·         Not be delinquent on any existing debt obligations to the U.S. government

·         Be creditworthy and reasonably assure repayment of the loan

-SBA

Business Line of Credit Eligibility Requirements

A business line of credit can generally provide small businesses with $5,000 and $250,000 in funding. The longer you have been in business, the more likely you are to be eligible for a business line of credit; however, many lenders provide funding for companies operating for six months. Additionally, your business may qualify for a business line of credit with a credit score that is below average.

A business line of credit provides various benefits to small businesses, including:

·         You are only charged interest on the amount of credit you use

·         Many business lines of credit do not require collateral

·         Provides on-demand access to funds

·         Provides a revolving, flexible payment structure