Small Business Funding Programs
Merchant Cash Advance
When your business needs additional working capital, a small business loan from a bank may not be a viable funding programs option. The small business loan application process is lengthy and time-consuming. The strict loan requirements and terms of the loan can also prevent you from securing the capital you need. Additionally, the type of structured repayment plan could put a squeeze on your future cash flow and delay any planned future growth. With a merchant cash advance funding program or “MCA”, you can access the working capital needed to protect your business from the risks of bank lending and the strict criteria of a bank loan. Your repayments are calculated as a percentage of future sales transactions, so repayment is easy to manage and flexible, so as not to jeopardize your business operation. MCA’s are a very popular form of financing that can provide your small business with a lump sum of capital in exchange for a small percentage of future credit card or debit card sales, which is often easier for many owners to manage each month than a more substantial loan payment.
Timing - Approval in 24 to 48 hours and funding in 2 to 5 days. (Higher FICO and cash flow equals shorter approval and funding timing)
Requirements - 3 to 6 in business with a minimum FICO 500+ and monthly revenue of $10,000.-
Process - Application with 3 most current months of bank statements and/or credit card statements (if the business accepts credit cards).
Approval Amounts - $5000 - $500,000.
Repayment Terms - 4 to 18 months with interest from 18% to 40%
Unsecured Business Line of Credit
We offer this convenient small business funding programs option to get you the working capital you need, when you need it, along with the flexible payment options that you want. We invite you to learn more about the value of this opportunity for you. There are many benefits to small business lines of credit. They put the financial control of your company, even during turbulent times, back into your hands. Unlike a traditional loan, you can use your line of credit again and again. You can borrow up to a certain amount of money but only pay interest on the actual funds that were borrowed. You can then draw on your available credit line only when you need it and repay the funds based on your budget.
Timing – 24 to 48 hours and funding 3 days in many cases. Certain cases additional will require documentation extending the approval and funding process.
Requirements - Minimum 6 in business with a minimum FICO 620 and monthly revenue of $25,000.
Process – Submit a one-page application with copies of your companies’ last 3 monthly bank statements.
Approval Amounts - $10,000 to $500,000.
Repayment Terms - 6 to 12 months with interest starting from 12%
Unsecured and Secured Small Business Loans
South Florida Funding Group offers small business owners both unsecured and secured small business loans. An unsecured small business loan is issued and supported by the business owners’ creditworthiness, rather than by any form of collateral. For this type of small business funding, a small business owner must have good personal credit to be approved. The clear advantage is a business owner avoids the risk of putting valuable assets on the line to secure the funding. However, a lender may make up for their increased risk by charging a higher interest rate.
Although an unsecured loan for the business is not backed by collateral, many lenders will require a personal guarantee. A personal guarantee is a promise made by an individual to accept responsibility for the business’ debt if it fails to pay.
We also offer a secured business loan, which is a traditional term loan. This is a loan secured by the asset being acquired or an asset that is already owned. The benefits of a term loan are that you can get up to $5,000,000 in funding with standard loan terms, and it’s easier to obtain than an SBA loan with a faster funding timeline. However, a term loan has a shorter repayment schedule then an SBA loan.
Timing - Approval within 24 hours and funding in 2 – 3 business days.
Requirements - 3 - 6 months in business and a minimum of $100,000 annual revenue.
Process – Submit a one-page application and your company’s most recent 3 months of banking history or credit card statements (if you accept credit cards) to find out what you’re qualified up too.
Approval Amounts - From $10,000 to $500,000.
Repayment Terms - Repayment is based on a percentage of your companies’ future monthly or weekly revenue. From month to month your revenues may vary allowing your payments to be reduced during these lower revenue periods. (Payments never increase based on an increase in revenues)
Equipment Leasing and Financing
South Florida Funding Group offers small business owners the option to either lease or finance their next equipment purchase. Small business equipment leasing and small business equipment financing differ mainly in terms of ownership. An equipment lease lets you rent business equipment from a vendor for a monthly payment, but you don’t own the equipment during the lease term. Equipment finance is a small business loan that allows you to purchase a piece of equipment and use it while making monthly payments. During the loan period, the value of the equipment will be used to secure the loan. Once all payments have been made towards the loan according to its terms, you fully own the equipment.
Timing – Decision within 24 hours
Requirements – For loans, you need to be in business for 3 months with at least $6000 monthly revenues.
Process – Submit a one-page application (for $250,000 or less) and your company’s most recent 3 months of banking history.
Approval Amounts – From $250,000 to $1,500,000. Deferred payment and 100% financing options.
Repayment Terms – Term of the lease or from 6 to 24 months.
SBA Loans
South Florida Funding Group offers the SBA 7(a), 504/CDC Loans, and Microloans. An SBA loan is considered the “gold standard” of loans. They are government-backed loans that are partially guaranteed by the Small Business Administration or “SBA”, an agency of the federal government. The typical uses for an SBA loan are for working capital, refinance debt, purchase equipment or finance any costs associated with expanding your existing business. The 7(a) is for purchasing equipment, real estate, construction project, or existing business. It can also be used for refinancing refinance existing obligations (under some circumstances). The 504/CDC is for the purchase of land, an existing building, building improvements, construction of a new building, or for long-term machinery or equipment. Microloans are another loan program that provides $50,000 in short-term financing to business owners.
Timing – Approval timeline is 2 to 4 weeks and funding is 3 to 4 months.
Requirements - The minimum FICO is 650+. 2 to 3 years in business. Funding is not provided for start-ups unless prior ownership and experience in a similar line of business. No outstanding tax liens or bankruptcies or foreclosures in the past 3 years.
Process – Documentation required is extensive. Multi-page application, 2 years of P/S’s, Balance Sheets, Cash flow Statements, Leases, and Corporate or Ownership documents. Personal guarantees may also be required.
Approval Amounts - $125,000 to $10,000,000 for commercial real estate investing or for owner- occupied commercial real estate.
Repayment Terms – This depends on the loan product. It could be as little as 1 year for a microloan or 25 years for a commercial real estate loan. 2019 rates for SBA 7(a) range from 7% to 9.5%, SBA 504/CDC rates are around 5% and Microloans are from 8% to 15%
Commercial Real Estate Investment Loans
South Florida Funding Group offers for those with superior credit (FICO 700+) small-balance commercial mortgages from $250,000 to $5,000,000 on commercial real estate including mixed-use, office, retail, light industrial, self-storage, automotive, mobile home park, daycare center, restaurants, bar, and warehouse property types.
Timing - Approval in 24 hours and funding in 7 days.
Requirements - 12 months in business with minimum FICO 700.
Process - Submit completed/signed application with Loan Supplement Form, a Tri merge credit report and last 2 years P/L or Operating Statements, plus Rent Rolls (if rental investment). Owner- Occupied Loan Requests require last 2 years of tax returns or last 12 months business bank statements.
Approval Amounts - $250,000 to $5,000,000.
Repayment Terms - 5 and 7 years for Hybrid loans; 10 to 30 years fixed loans. Rates as low as 6.375%., but do vary.
Residential Investment Biz Loans (Includes Fix & Flip)
South Florida Funding Group now offers Loans to businesses involved in Residential Real Estate Investing. We have partnered with funders that offer loans to investors who are using either a Buy and Hold strategy or investors wanting to turn a profit with a Fix & Flip Investment. The requirements to qualify for this type of funding is; multiple years of experience with a number of renovation projects or multiple real estate investment holdings. The holding entity must have a valid company designation as governed by the state the company resides in. The loan types available are Fix & Flip Bridge Loans, Construction Draw Process, Rental Loans with 30-Year Amortization, Rental Portfolio, Multifamily Bridge Loans (Up to $10.0M), New Construction Bridge Loans (Up to $5.0M).
Timing - Approval in 48 hours for approval and funding in 7 days.
Requirements - 12 months of real estate investment business experience, multiple documented completed projects over the prior 2 years, and with a minimum FICO 600 for Fix & Flip and 640 Rental Loans. .NO TAX RETURNS REQUIRED OR NO EMPLOYMENT VERIFICATION.
Process - Submit completed/signed application with Loan Supplement Form, Rent Rolls (if rental investment), a debt schedule and a real estate owned schedule. Owner-Occupied Loan will require the last 2 years of tax returns or last 12 months business bank statements. Further documentation may be required through the approval process.
Approval Amounts - $100,000 to $10,000,000.
Repayment Terms - 5 and 7 years for Hybrid loans; 10 to 30 years fixed loans. Rates as low as 6.375%.
Business Loans Utilizing New Market Federal Tax Credits
South Florida Funding Group now offers project funding using New Market Federal Tax Credits. This a government supported financing program to help develop underserved areas in Florida or any other state in the US. The goal is to bring businesses, technologies, and jobs to communities that have historically lacked access to investment capital. Here’s how the program works. Once the project is created and is offered to South Florida Funding Group for funding it first must be first confirmed by the NMTC Mapping Tool to determine if the project resides in a identified underserved area, Once this occurs then South Florida Funding Group goes to work. We have partnered with a funding group that will provide from $0.5M to $4.0M in funding for qualified projects for these designated areas. The loan proceeds are given to the project administrator by the funder, in return the funder receives the interest from the loan for their service. The funder then provides the New Market Federal Tax Credits to their investors in return for providing the company upfront funding.
Timing - Approval time 3 to 6 months and 1 year for funding.
Requirements – The project first must be confirmed by the NMTC Mapping Tool to determine that the project resides in a identified underserved area,
Process – This is a document driven loan process similar to an SBA loan. Submit a Business Plan detailing the scope, depth and purpose of the project. The plan must detail how it qualifies for this loan program. Then a completed/signed application with Loan Supplement Forms. Additional documentation may be requested throughout the loan approval process.
Approval Amounts - $1,000,000 to $4,000,000.
Repayment Terms - 10 to 25 years term loan. This is a Federal Supported Funding Program so rates are in line with SBA rates, WSJ Prime + 2.75% floating.
Cannabis, Hemp and CBD Business Loans
South Florida Funding Group now offers a new funding option. By partnering with a number of different funders from across the US we are now offering funding to small businesses in the cannabis industry. We fund small businesses that provide cultivation, production, packaging, retailing, marketing, and the research and development for Cannabis, Hemp, and CBD products. The cannabis industry struggles to finance its double-digit growth which puts the business owners in a daily struggle to survive. The passing of The SAFE Banking Act will help, but for some struggling small business owners, it may be too little too late. This is why all funding opportunities in this industry will be considered. The decision criteria will be based on the business owner’s years of experience in the industry, their business plans’ purpose, and their objective. The company would need to have been in business for one year, be cash flow positive with a minimum $10K in monthly cash flow. There is no minimum FICO score required.
Timing - Approval time 48 hours for approval and funding in 7 days.
Requirements – The business owner’s years of experience in the industry, their business plans’ purpose and objective. The company in business for one year, be cash flow positive with a minimum $10K in monthly cash flow.
Process – Submit a Business Plan detailing the purpose, objective, operators’ industry experience and knowledge. The plan must have all detailed financial documents such as; P/L, Balance Sheet, Cash Flow Projects and Sources and Uses of Funds. A completed/and signed application with Loan Supplement Forms. Additional documentation may be requested throughout the loan approval process.
Approval Amounts - $100,000 to $5,000,000.
Repayment Terms - 1 to 4 years terms
Interested? Read More About Dispensary Financing and Marijuana Industry Investment
