Understanding Business Term Loans
Liberty Capital Group offers a variety of business term loans designed to meet the needs of small business owners. Here is a comprehensive guide to help you understand the different types of loans, requirements, and funding expectations.
As we celebrate 20 years of service, Liberty Capital Group is more committed than ever to helping businesses achieve their financial goals. We continue to innovate and expand our product offerings to meet the evolving needs of our clients. With a focus on excellence, integrity, and customer satisfaction, we look forward to many more years of success and partnership with the businesses we serve.
Business Term Loans Guidelines
Non-Bank Term Loan
a. Pricing: rate based revenue, time in business and credit
b. Weekly, Monthly Payment
c. 12 to 24 month term
d. Early pay off discount
e. Fees to borrower – from 3.0% origination fee (based on approved line amount)
f. Renewable at 50% paid down threshold
Underwriting:
a. Min $20K bank deposit, no NSF, no prior default,
b. Min 12 month time in business
c. Min 600 FICO
d. Bank statements
Revolving structure for flexibility:
a. Fixed Payment
b. Low Pay back
c. Close-ended
d. Reduce Balance amortization
e. Full Online Access for Control
Fully funded at origination (based on approved line amount)
Different Types of Business Term Loans
Short-Term Business Loans:
· Amount: $2,500 to $250,000
· Term: Typically, up to 18 months
· Interest Rate: Starts at around 10%
· Features: Quick funding (as little as 24 hours), flexible repayment options (daily, weekly, or monthly), and minimal paperwork.
Long-Term Business Loans:
· Amount: Up to $5,000,000 per location based on the need
· Term: 2 to 15 years
· Interest Rate: Lower rates due to longer repayment periods and often requiring collateral and typically for well bankable clients.
· Features: Lower monthly payments, potential for large funding amounts, and use for major expenses like expansions, equipment purchases, or large inventory.
Unsecured Business Loans:
· Amount: Up to $5,000,000
· Term: Varies from 3 to 36 months
· Interest Rate: Generally higher than secured loans due to the lack of collateral.
· Features: No need for collateral, faster approval process, and funding can be used for a variety of business needs.
· Amount: Varies based on collateral value and LTV
· Term: Varies up to 20 years
· Interest Rate: Lower due to collateral security
· Features: Requires collateral such as property or business assets, lower interest rates, and larger loan amounts available.
· Commercial building, apartments, condos and other commercial properties falls into this. We have SBA 504, Investors, and private banks and lenders who will fund your commercial loan and bridge loans.
Benefits of working with Liberty Capital.
· Fast Funding: Many loans can be funded within 24 hours to a week.
· Flexible Terms: Payment plans are tailored to the business’s cash flow needs.
· No Early Penalties: Many loan options allow for early repayment without additional fees.
· Customizable Loan Products: Loans can be structured to fit specific business needs, whether for working capital, expansion, or equipment purchases.
· Early Payoff Discount: Depending on the term loans, you might be able to pay off the principle early without paying for the remaining unaccrued interest.
Liberty Capital Group aims to simplify the loan application process with online pre-qualification, minimal paperwork, and a wide range of loan products to suit various business needs under one roof.
How To Apply!
Liberty Capital is committed to helping small business owners acquire the heavy equipment they need to thrive. So, we make it simple for you to apply using our Simple Application
What do we need?
To get a free quick no obligation loan offer analysis, we would need the following: but subject to additional info depending on the loan type, amount and your credit profile.
· Recent bank statements
We look forward to speaking with you.
Join the thousands of businesses that have trusted Liberty Capital Group with their financing needs. Let us help you achieve your business goals and take your business to new heights.
