Business Financing FAQ

Liberty Capital Group provides financing for every stage of business growth under one roof. Depending on your qualifications and goals, options may include business lines of credit, term loans, SBA loans, equipment financing and equipment leasing, commercial loans, working capital, merchant cash advances, factoring and commercial real estate financing. We also offer startup equipment financing and working capital for post-revenue startups.

Our goal is to match your business with a financing structure that fits your cash flow, credit profile and intended use of funds.

Both. Liberty Capital Group has placed commercial financing since 2004. We work with a broad network of lending and leasing sources, so one application can be matched across multiple programs instead of you applying lender by lender. That means more options and no guessing or time-consuming bank-hopping. Learn how a broker compares to a direct lender.

That’s okay. You don’t need to know the name of the product before you start.

Tell us how much capital you need, what you plan to use it for, how quickly you need it and what your business looks like financially. Those answers tell us which financing options fit.

Minimums vary by program, lender, your qualifications and the intended use of funds.

If you only need a small amount of working capital, a business credit card or line of credit may make more sense than taking on a larger term loan. We will tell you if that is the case.

Yes. We split startups into two groups. Post-revenue startups (already bringing in sales) may qualify for startup equipment financing and working capital. Pre-revenue startups have fewer options, and programs generally rely more heavily on personal credit, down payment and collateral. Tell us where your business stands and we will show you what is realistic.

Complete our 3-minute pre-qualification. You provide basic information about your business and we evaluate your potential financing options, with no hard credit pull and no Social Security number required for the initial quote.

No. Liberty Capital Group uses a soft credit inquiry when reviewing your initial financing options, so checking your options does not affect your credit score.

Most programs do not require a hard inquiry during the initial application. Certain equipment financing or leasing programs may require a hard inquiry when you move forward with funding, and we will always tell you before that happens.

A no credit check quote gives you an initial indication of the financing you may qualify for without a hard credit inquiry, so you can compare options and see what an approval could look like before you commit to anything. Our no credit check quote does not ask for your Social Security number.

Start the 3-minute business financing quote →

It depends on the program. Some programs weigh business revenue and cash flow most heavily, while others focus more on personal credit, business credit, collateral or financial history. For example, some equipment financing programs can work with a FICO score around 500 when you have a down payment, and merchant cash advances and some term loans lean mainly on revenue.

A lower score does not automatically mean you cannot get financing. It affects which programs are available, the down payment or security deposit required, whether the financing is secured or unsecured, the amount you can qualify for and the terms offered.

Possibly. Business owners with less-than-perfect credit may still have options depending on the overall strength of the business. Lenders also look at revenue, cash flow, time in business, existing obligations, deposits, industry and the purpose of the financing.

Be careful, though. With weaker credit, the cost of financing matters even more. Getting approved does not mean the financing is good for your business. Working with us gives you multiple options side by side so you can choose the one that actually makes sense.

It depends on the program and on whether your business is already generating revenue. Many programs look for at least several months to a couple of years in business, while post-revenue startups may qualify for startup equipment financing and working capital. Time in business is always weighed together with revenue, cash flow, credit and overall financial performance.

Revenue requirements vary by product and lender. Some programs work with modest monthly revenue, while larger loans and traditional financing generally require stronger, more established financial performance.

Revenue alone does not decide approval. Cash flow and the ability to comfortably support the new payment matter just as much.

The amount depends on your revenue, cash flow, time in business, credit profile, industry, existing debt, collateral and the type of financing requested. For startups, whether you are post-revenue or pre-revenue also determines which loans are available.

There is no single number that fits every business. We look at your overall profile to identify programs and amounts that fit your situation.

Not necessarily. Some programs are unsecured or do not require specific collateral. Others, particularly certain equipment, commercial real estate, SBA and larger transactions, may require it. Requirements depend on the product, lender, loan amount and strength of the business.

Yes, potentially. Existing financing does not automatically disqualify you. Lenders will review your current obligations, payment history, revenue and cash flow to decide whether additional financing is appropriate.

Sometimes adding another loan puts unnecessary pressure on a business. Other times, refinancing or consolidating existing debt improves the overall structure. We will tell you which applies to you.

Potentially. Seasonal businesses may qualify depending on their revenue history, cash flow, credit profile and the program. The key is structuring financing around your actual cash-flow cycle, not simply taking the largest amount available.

It varies by product and lender. Commonly requested items include:

• Business identification information
• Owner identification
• Business bank statements
• Business and personal tax returns
• Profit and loss statements and balance sheets
• Existing business debt information
• Accounts receivable information
• Equipment quotes or purchase documentation

Not every program requires all of these.

Funding speed depends on the product, the lender, your qualifications and how quickly you provide the required documents.

Some programs can fund in as little as a few hours, while SBA loans, traditional term loans and commercial loans can take several days to several weeks. As a general range, expect about 4 hours to 4 weeks depending on the program.

SBA financing takes longer than most alternative products because of the extra underwriting and documentation. Depending on the program, lender, complexity of the deal and how responsive the borrower is, it can take several weeks or longer.

If you need capital immediately, a faster option may be the better fit. If you can wait and qualify, SBA financing can offer a more attractive long-term structure.

No. Submitting an application or receiving an initial quote does not guarantee approval or funding. Final approval depends on the program and lender requirements, including verification of your business information, financial performance, credit profile and other underwriting criteria.

No. Requesting a quote or reviewing options never obligates you to accept an offer. Review the amount, payment, repayment structure, total cost and other terms before deciding whether the financing is right for your business.

A business loan gives you a set amount of capital upfront, repaid on an agreed schedule. A business line of credit gives you access to a credit limit you draw from as needed and, depending on the program, can reuse as you repay.

A line of credit works well for short-term working capital and smoothing cash-flow swings. A term loan is usually better for a specific large purchase, expansion or long-term investment. Explore business lines of credit.

SBA financing is business financing partially guaranteed by the U.S. Small Business Administration. For qualifying businesses, SBA programs can offer longer repayment terms and larger amounts of capital.

The tradeoff is more documentation, underwriting and processing time than faster financing programs.

For most businesses, financing or leasing is the smarter move, even when you have the cash. Cash is the lifeblood of a business and should not be exhausted, especially for startups. Leasing gives you:

• Cash flow management: a low capital outlay compared to an outright purchase
• An inflation buster: you lock in today’s price with a fixed payment and pay it back with tomorrow’s dollars, so your payment gets cheaper in real terms as inflation rises
• Low, manageable payments that are predictable for budgeting
• Terms up to 5 years, most with a $1 buyout, so you own the equipment at the end
• Section 179 and 100% bonus depreciation: a $1 buyout lease is generally treated as a purchase for tax purposes, so qualifying equipment may be deductible in the year it is placed in service (confirm with your CPA)
• Conserve cash for payroll, inventory, emergencies, marketing and growth

Paying cash can make sense for a profitable business with strong reserves when the financing cost outweighs the benefit. The right answer depends on the cost of financing, the return the equipment generates and your cash reserves. See equipment leasing options.

A Merchant Cash Advance gives your business an upfront amount of capital in exchange for an agreed amount of future business receivables. MCAs offer fast access to capital and may be available to businesses that have trouble qualifying for traditional financing.

MCA financing can be significantly more expensive and often requires frequent payments. Consider it only when you have a clear use for the capital and lower-cost options are not available or suitable. Learn more about merchant cash advances.

An MCA can make sense when a business needs capital quickly and does not qualify for more traditional financing. It should not be the first choice just because it is fast.

First find out whether you qualify for lower-cost options such as a line of credit, term loan, equipment financing or SBA financing. Speed matters, but the cost of capital matters too.

Sometimes. A business credit card works well for smaller purchases, short-term expenses and building business credit, especially when you can pay the balance down quickly. A loan is usually better for a larger investment with a longer useful life, such as equipment, expansion or a major purchase.

The mistake is using expensive revolving credit for a long-term investment without a realistic repayment plan.

Depending on the program, business funding can be used for:

• Working capital
• Equipment purchases and upgrades
• Expansion capital
• Inventory financing and flooring
• Payroll and operating expenses
• Marketing
• Commercial real estate
• Business acquisition
• Refinancing existing business debt
• Renovations and improvements
• Technology and other business investments

Permitted uses depend on the program and lender requirements.

No. Liberty Capital Group never charges an application fee. Each funded transaction includes an origination fee, which is disclosed before you sign.

We also never do credit repair, debt settlement or reverse MCAs.

The interest rate is only one part of the cost. Also look at fees, repayment frequency, term length, factor rates where applicable, origination costs, prepayment terms and the total amount you will repay.

A lower advertised rate is not automatically cheaper. The best comparison is the total cost and payment obligation relative to what the financing does for your business.

Potentially. Depending on the program and your qualifications, refinancing can replace existing debt with a better structure.

It only makes sense if it delivers a real benefit, such as lower total cost, improved cash flow, longer terms or a more manageable payment. A lower payment by itself does not mean you are saving money if the new financing significantly increases the total amount you repay.

No. Financing can help a business grow, but debt the business cannot comfortably repay creates serious problems. Before you borrow, ask:

• What will the money accomplish?
• Will it generate more revenue or improve profitability?
• What is the total cost of capital?
• Can the business make the payments during a slow month?
• Will the new debt interfere with existing obligations?
• Is there a less expensive option?

The goal is not to borrow the maximum amount available. It is to borrow the right amount for the right reason.

We look at the business as a whole instead of matching you to the largest amount you can qualify for. We weigh revenue, cash flow, credit profile, time in business, existing obligations, industry, the purpose of the financing and your ability to repay.

The right financing depends on what you are trying to accomplish and what payment your business can realistically support.

No. Liberty Capital Group does not sell your personal or business information, bank statements or application information to anyone.

When you apply, your information is shared only with the financing providers needed to evaluate your application and find options for you. We do not sell data as a source of revenue. In fact, you will get far fewer calls applying with us than with an online lead-generation site, because we are a full small business funding company, not a lead seller.

Yes. Liberty Capital Group, Inc. has served business owners since 2004 and is licensed under NMLS #2009539 and California DFPI #60-DBO49692.