Why Accountants in Alabama Choose Liberty Capital
Operator-first guidance, fast decisions, and structures that won’t choke your cash flow.
Real Talk
No hype. If an MCA is the only option, we’ll say it—and show cheaper paths first.
Flexible Products
Lines, term loans, SBA-style, equipment financing, and factoring—matched to use of funds.
Speed + Clarity
Pre-qual in minutes. Clear payment estimates before you commit.
Table of Contents
Funding Options (Pick the Tool That Fits)
| Type | Amount | Typical Term | Best For | Typical Cost |
|---|---|---|---|---|
| SBA 7(a) | $50k–$5M | 10–25 yrs | Acquisition, real estate, expansion | Prime + ~3–6.5% (SBA-capped) |
| Equipment Finance / Lease | $5k–$5M | 24–72 mo | Vehicles, machinery, medical, IT | ~6–12% APR • §179 eligible |
| Business Line of Credit | $10k–$500k | Revolving | Seasonality, inventory, repairs | 8–18% • pay on use |
| Unsecured Term Loan | $25k–$2M | 12–60 mo | Working capital, marketing, hires | ~7–15% APR |
| Invoice Factoring | $10k–$10M | Ongoing | Net-30/60 B2B invoices | ~1–5% / mo |
Compare My Options
No obligation. We’ll map you to the lowest-cost structure that fits your cash flow.
Cost-Savings Analysis & Benefits
Reality check: Cash is king—until using it starves operations. The right structure preserves cash, aligns payments to useful life, and can unlock tax benefits.
| Strategy | Day-1 Cash Impact | Ongoing Cost | Tax Effect | Where It Wins | Where It Fails |
|---|---|---|---|---|---|
| Use Cash | Large outlay; reduces cushion | $0 interest | Depreciation only | Small, certain ROI purchases | When it drains working capital/growth |
| Business Credit Card | Small outlay (float) | High APR if revolving | Expense deductions; rewards | Short-term spend paid monthly | Longer payback; utilization risk |
| Unsecured Term / LOC | Minimal down | ~7–18% APR | Interest deductible | Working capital w/ 6–18 mo payback | Mismatched term vs benefit period |
| Equipment Finance (Collateral) | Minimal down | ~6–12% APR, fixed | Section 179 + interest | Assets w/ 3–7 yr life; preserves cash | Obsolete gear if term too long |
Core Benefits
- Preserve cash buffer for payroll/marketing
- Match payments to useful life or seasonality
- Potential §179 immediate expense on equipment
- Build business credit + vendor relationships
- Invest retained cash into growth
Hidden Savings
- Avoid card APR compounding
- Reduce downtime vs. waiting to save
- Lock fixed rates before increases
- Vendor pre-funding eases COD strain
Watch Outs
- Don’t finance a 3-month need for 36 months
- Early-pay fees on some programs
- Target DSCR ≥ 1.25× on realistic revenue
Pros & Cons + SWOT (Side-by-Side)
A) Borrowing vs Using Cash
| Borrowing | Using Cash |
|---|---|
| Pros: Preserves liquidity; spreads cost; deductible interest; speed | Pros: No interest; simple; no underwriting |
| Cons: Interest/fees; covenants; payment obligation | Cons: Thin reserves; missed opportunities |
| Best Use: Assets/projects with ROI inside term | Best Use: Small purchases; emergencies |
B) Credit Cards vs Unsecured Loan/LOC
| Business Credit Card | Unsecured Loan / LOC |
|---|---|
| Pros: Rewards; 25–55 day float; easy | Pros: Lower effective APR; higher limits; structured payoff |
| Cons: High APR if revolving; utilization hits credit | Cons: Docs; payments start immediately |
| Best Use: Short-term spend paid in full | Best Use: Working capital with staged payback |
C) Collateralized (Equipment/Asset) vs Unsecured
| Collateralized Loan / Lease | Unsecured |
|---|---|
| Pros: Lower rates; longer terms; §179 | Pros: Speed; flexibility; no asset lien |
| Cons: UCC lien; repossession risk; prepay limits | Cons: Higher rates; shorter terms |
| Best Use: Hard assets w/ 3–7 yr life | Best Use: Inventory turns, payroll gaps, marketing |
SWOT — Borrowing
- S Liquidity & leverage
- W Debt burden
- O Faster scaling
- T Revenue dips → coverage risk
SWOT — Cash
- S No interest
- W Thin buffer
- O Simple ops
- T Missed growth/emergency cash
SWOT — Cards
- S Float & rewards
- W High APR revolving
- O Build credit
- T Utilization hurts scores
SWOT — Collateral
- S Lower APR, §179
- W Liens
- O Bigger tickets
- T Asset obsolescence
How to Qualify
- 12+ months in business (6+ months for some equipment programs)
- $100k+ annual revenue for most options
- 650+ personal credit (flexible with compensating factors)
- 3–6 months business bank statements
- Prior year tax return & government-issued ID
- Clear use of funds with realistic payback (target DSCR ≥ 1.25×)
Simple Process forBarber / Hairdresser in Massachusetts
- Pre-Qual (2–5 min): Soft inquiry online application.
- Upload Docs: Statements, tax return, ID; extras for SBA.
- Underwriting: 24–48h typical. We model DSCR and seasonality.
- Offers & Funding: eSign. Funding as fast as 24–72h (working capital); 1–5 days (equipment).
Tip: Ask us to structure for early-pay flexibility if you expect faster ROI.
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FAQ — Straight Answers
Is a business credit card better than a loan?
Cards are fine if you pay in full monthly. Revolving balances get expensive fast. For multi-month needs, a term loan or LOC is usually cheaper and clearer to budget.
What’s the real cost of merchant cash advances (MCA)?
They’re fast but pricey due to factor rates and daily/weekly remittances. We only recommend MCA if cheaper options are off the table and we plan a refinance path.
Can I finance equipment instead of using cash?
Yes. Equipment financing spreads cost over useful life, keeps cash for operations, and may qualify for §179. Confirm with your CPA.
I don’t want to pledge collateral. What are my options?
Unsecured term loans or LOCs may work at higher rates/shorter terms. We match product to the payback window.
Will pre-qualification hurt my credit?
Our pre-qual uses a soft inquiry with most programs. Full underwriting may require a hard pull—disclosed before proceeding.
What DSCR should I target?
Most lenders look for DSCR around 1.25× or higher. That means free cash flow ≥ 125% of debt service.
Are there prepayment penalties?
Depends on program. Some term loans have none; some equipment or SBA loans may include prepay considerations. Ask us to optimize for early-pay if needed.
How fast can I fund?
Working capital can fund in 24–72 hours after complete file; equipment in ~1–5 days depending on vendor docs and collateralization.