Short answers to funding questions a Binghamton, New York owner may have before contacting Harborpark Funding Group. Approval, rates and terms are decided by funding partners.
What Is a Business Loan Underwriter Doing Between Your Upload and the Offer?
An underwriter is the person, or the software and the person behind it, who reads a request and decides whether the lender should make the loan and on what terms. Between the upload and the offer, the underwriter checks the bank statements for deposits, balances and other loan payments, reads tax returns, pulls credit reports and checks the business's registration and any liens filed against it.
Questions from the underwriter usually come back as requests for one more record: a missing month of statements, an explanation of a large deposit, or a payoff letter for an existing loan. The request steps show where this falls in the process.
What Is a Small Business Loan Amount Based On: Revenue, Use or Collateral?
A small business loan amount is shaped by three things: what the money is for, how much revenue and cash flow the business shows, and what collateral stands behind it. An equipment loan is sized to the quote. A working capital loan is often sized against monthly deposits. A term loan for an acquisition is sized against the business's earnings and the buyer's down payment.
The lender, not the request form, decides the amount. The range picked on the form is a starting point for the conversation.
What Is a Non-Collateral Business Loan, and What Replaces the Collateral?
No single machine, vehicle or building stands behind a non-collateral business loan. Instead of collateral, the lender relies on the business's deposit history, its time in business, the owner's credit and, often, a personal guarantee. Many lenders also file a general lien on business assets even when no single asset is named.
Because the lender has less to fall back on, these loans are often shorter and priced higher than secured loans. Compare the total cost with a secured option such as equipment financing where one fits.
Are Working Capital Loans a Good Idea for a Binghamton, NY Restaurant?
Working capital loans can be a sound tool for a Binghamton, NY restaurant facing one known gap: a slow stretch after the holidays, a large catering order to fill before payment, or a repair that cannot wait. They are a poor tool for a gap that opens every month, because the payments then add to the same shortfall.
Before taking one, write down where the money to repay it will come from and in which weeks. The working capital page compares it with a line of credit.
By Harborpark Funding Group · Updated