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- How to Get an Instant Cash Loan for Businesses / Immediate Business Funding
With the economy, businesses of all sizes are constantly looking for ways to increase their cash flow. To meet this need, more and more businesses are turning to instant cash loans, specifically cash advances. These programs do not have a personal guarantees and there is no limitations on what you can spend the money on (unlike some traditional programs). A truly easy way to get unsecured working capital. A cash advance loan is a short-term loan that is designed to provide businesses with immediate access to cash. This type of loan is often approved quickly and with minimal requirements, allowing businesses to access funds quickly in the event of an emergency or to bridge a gap in cash flow to cover everyday expenses. As the name implies, a cash advance loan is not a traditional loan, which means the borrower is not required to sign a long-term agreement. The key benefit of a cash advance loan is that it can provide immediate and flexible access to funds that a traditional loan could not. With a traditional loan, businesses must complete an extensive loan application and comply with the bank's significant paperwork requirements and typically have to wait weeks for approval. A cash advance loan, on the other hand, can be approved in a matter of days and can be used to fulfill the needs of the business. One of the advantages of a cash advance loan is that it is less risky than traditional loans. Since this type of loan does not involve long-term contracts or collateral, businesses are not held to strict repayment terms, allowing them more flexibility in how they use the funds. This type of loan also does not require businesses to pledge their assets or put up collateral as security for the loan, making it an attractive option for businesses that may not have such assets or collateral. Another advantage of a cash advance loan is that it can be used for virtually any purpose. Businesses can use the funds to cover expenses from payroll and supplies to renovations and marketing campaigns. This makes it an incredibly versatile form of financing that can be used for almost any purpose that is beneficial for the business. Despite the numerous advantages of cash advance loans, it is important for businesses to be aware of the potential drawbacks. The most notable is that this type of loan typically has a higher rate of interest and fees than traditional loans. Additionally, it is important to thoroughly research and compare lenders to ensure that the lender is reputable and that the loan terms are reasonable. Overall, a cash advance loan can be a viable option for businesses in need of short-term financing. With quick and easy access to funds and minimal paperwork requirements, businesses can gain access to the funds they need quickly. While it is important to be aware of the potential drawbacks, a cash advance loan can provide businesses with a much-needed financial boost in times of need. See what you qualify for now with Trust Capital's simple application. We can have funds to you within hours. Make sure to attach the necessary documents like a business voided check, drivers license, and your last 3-6 months of business bank statements for fastest funding times. We have been providing competitive rates to businesses for over 14 years, let us show you what we have to offer and you won't be disappointed.
- Business Funding for Bad Credit
Starting and running a successful business can be a difficult undertaking, especially for those with bad credit. Not having access to adequate business funding has been a major obstacle for entrepreneurs looking to make a go of it. This can be especially true for individuals who have bad credit due to financial missteps in the past. Thankfully, with advances in technology and the emergence of the sharing economy, there are now more options than ever for those in search of business funding for bad credit. One of the most popular methods of sourcing business funding for bad credit is through crowdfunding campaigns. Crowdfunding platforms like Kickstarter and Indiegogo allow businesses to solicit small donations from a larger number of individuals in exchange for rewards or equity. This method of sourcing capital has proven to be successful in many cases, as businesses are able to demonstrate the public interest in their projects and motivate individuals to contribute. Alternative lenders are becoming increasingly popular sources of business funding for those with bad credit. These online lending platforms provide a range of services to accommodate different funding needs, including small business loans, merchant cash advances, and invoice financing. They may also offer lines of credit and other financing solutions. These lenders typically provide more competitive interest rates than traditional banks due to a higher risk profile. Although the stipulations of repayment can be strict and the fees are often higher, alternative lending can be an attractive option for those who don’t have access to more ideal sources of funding. Trust Capital has financing for business owners with bad credit as long as your business is producing revenue. Finally, government-backed loans and grants are available to individuals and businesses with bad credit. Small Business Administration (SBA) loans are backed by the government and provide more attractive terms than those offered by traditional banks. Additionally, there are a variety of grants and loan programs that are funded by the federal government, as well as local and state governments. These programs are designed to cushion the cost of starting and operating a business for those who qualify. As technology advances, so too do the opportunities for entrepreneurs looking for business funding for bad credit. Although the traditional banking system may not be a viable option, there are a number of different strategies that can be employed to find the capital necessary to get a business up and running. With adequate research, savvy entrepreneurs can leverage their networks, explore crowdfunding options, and benefit from alternative lenders and government-backed loan programs. By pursuing these paths, those with bad credit can find the resources they need to launch their own business and realize their vision. If you are thinking about an alternative lender, give Trust Capital a chance. We can give you an approval today after you fill out our simple application. There is no impact on your credit score and it cost nothing to look at your options. We do not require great credit for an approval because we think the revenue of your business is a more important factor than your credit history.
- Why Work With a Direct Lender Instead of a Bank?
When faced with the challenge of managing finances, many businesses turn to bank services for assistance. While banks may provide a certain level of convenience, many are opting to take the additional step of dealing with a direct lender (Trust Capital Funding) instead. There are a variety of reasons why a person may choose this specialized alternative to traditional banking. The primary reason many opt to deal with a merchant direct lender instead of a bank is the added flexibility they tend to provide. Direct lenders provide a wide range of loan and credit options, including business financing, lines of credit, HELOC's and real estate deals. These products are often catered to the specific needs of the consumer, as opposed to the pre-packaged services banks tend to offer. Additionally, merchants tend to provide access to a larger pool of capital, making it easier for individuals to secure the financing that best suits their needs in a timely manner. Another reason why a person might favor dealing with a direct lender instead of a bank is the customer service. These merchants often provide a more personalized experience, providing individuals with financial advisors who offer personalized plans and services based on individual needs. This type of advice often comes in the form of expert assessments and guidance to assist the customer in making informed financial decisions. Direct lenders are also renowned for their fast turnaround times on loan applications and funding, helping individuals save time and hassle associated with obtaining bank services. Dealing with a merchant direct lender instead of a bank provides a variety of benefits, there are also a few drawbacks to consider. For example, some lenders have higher-than-average interest rates, making it important to read the fine print and thoroughly research the terms to ensure that the loans are affordable. Additionally, merchant lenders tend to take a longer loan processing time than traditional banks, but funding can be completed within the same day most of the time. In conclusion, dealing with a merchant direct lender instead of a bank is becoming increasingly popular due to the added flexibility, customer service, and access to capital. But it’s important to research potential lenders carefully and compare terms and interest rates before committing to a loan. By understanding the potential benefits and drawbacks, you can make an informed decision about the best option for your financial needs. Trust Capital is not like the other lenders in this industry, we provide flexible financing and competitive rates to a variety of businesses and have been doing it for over 14 years. Let us show you what we have to offer by filling out our quick application and we can give you an approval without any impact on your credit score. After seeing what we have to offer, you'll be glad you gave us your time.
- Business Loan FAQ
We will be answering the most frequently asked questions about business loans in this article. Starting a business can be confusing and stressful, especially when you could also use some financing. We will tell you everything you need to know about business loans and have you ready to make a decision by the end of this article. Some of the most common questions are, Are business loan payments tax deductible? Can business loan be given for personal use? How does a business loan work? What business loan do I qualify for? When to take a business loan? Where to get a business loan? Who can get a business loan? Which business loan is the best? Will a business loan affect my mortgage? Are there business loans without collateral? Are Business Loan Payments Tax Deductible? When a business loan is received by a company, it's not included as taxable income. In turn, when that loan is repaid, you are not able to deduct loan principal payments. You are simply paying back the money you borrowed, not the income spent. However, you can deduct your interest as a business expense if you meet certain qualifications. You must be legally liable for the loan, you and the lender must agree that you intend to pay off the debt, and you and the lender must have a true debtor-creditor, or lender-borrower, relationship. Basically, it must be a loan from a legitimate lender and you should meet the requirements. A loan your friend gave you and you paid back would not be eligible to write off as a business expense. Can Business Loans Be Given For Personal Use? Business loans are different from personal loans, you must have an operating business to qualify for a business loan and a personal loan is mostly based off of your credit history. Most business loans can only be used for the business, and if you are planning on using a business loan for personal reasons you may want to just pursue a personal loan instead. With that being said, there are unsecured business loans. These programs have no restriction as to what you can use the money for and it is up to the owners discretion. These programs are typically advances on your business' future receivables like an MCA or factoring deal. How Does a Business Loan Work? There are many types of business loans, and for the outline of the most popular programs you can read our article "The Different Types of Small Business Loans". Generally speaking the process of getting a business loan is fairly simple. You apply with a lender of your choice either in person or online. After that the lender will underwrite your file and get back to you with terms for financing. Business loans work differently from personal loans and may require proof of ownership and business bank statements to prove the revenue of the business. Other documents necessary may include, a Tax Return, Voided Check, Drivers License, or a P&L/Balance Sheet. Payments may also be different from a personal loan. Monthly payment options are most commonly available for term loans or large corporations. Weekly and daily payments are also common payment frequencies for a business loan. The more frequent payments are meant to help the business with cash flow and avoid a large bill at the end of the month. What Business Loan Do I Qualify For? There are many ways to qualify for a business loan, but generally speaking business that have been in business over 1 year and that are doing over $10,000 in monthly revenue (revenue is calculated before expenses) have the best chances of being approved. You can get an approval without those requirements in specific situations like if your business is new but you have high revenue and a large account receivable. You cann apply with us and we will give you a free no obligation look at your business and let you know where you stand. Click Here to get started. When To Take a Business Loan? Most people assume business loans are only for struggling businesses. This is not true. Business loans can be used to grow your company quickly or for expansions that would not be possible while dealing with operating costs. Let's say you're looking to expand your business to a new location. In the beginning the first store would have to make enough to support the staff and rent/mortgage of the new store for a couple of weeks until it started to turn a profit. This is a risky move for a business owner. Not only do you risk the failure of the new location but your original one may suffer as well. Business financing can get your business the capital it needs to make a move like this and mitigate the risks involved. The best time to take a business loan is when you see growth in your business but a lack of capital is stopping you from expanding beyond your current capacity. In these situations a business loan can exponentially speed up the growth of your company and help you increase your profits. Where to Get a Business Loan? You used to have to go to the bank with a stack of paperwork and a couple of hours to spare to apply for a business loan. Thanks to the internet this is no longer the case. You can apply for a business loan online with most lenders including Trust Capital Funding. A simple application and your most recent business bank statements is enough for most lenders to underwrite your file and come back with a decision. Click Here to get started now. Who Can Get a Business Loan? A Business owner is allowed to get a loan on behalf of their business. Generally speaking you must have at least majority ownership or you may need the approval or your partners. The business should not have any liens or past defaults with other lenders. A business owner that filed for bankruptcy recently or has felonies on their record, may have a hard time securing a business loan. Will a Business Loan Affect My Mortgage? Business loans with a personal guarantee will affect your personal credit profile. This can be a problem if you're looking to get a mortgage or refinance an existing one. Talk with your representative and ask if the program you're looking for has a personal guarantee or not. Unsecured loans will not be reflected on your credit profile, but at the time of funding a lender may pull your credit history resulting with a hard inquiry on your credit and lowering your score. Keep this in mind when applying for a business loan and let your representative know you're also shopping for a mortgage so they won't do any pulls on your credit and conflict with your home buying process. Are There Business Loans Without Collateral? Business loans without collateral exist. This generally comes in the form of a cash advance. Another term for this type of loan is unsecured working capital. These programs have no restrictions on the use of the capital and typically come without a personal guarantee. Talk to a representative at Trust Capital Funding today for more information on our loans without collateral.
- Are SBA Loan Payments Taxable?
SBA Loans have helped a lot of businesses, especially in the last couple of years. While funding can help any business, after getting an SBA loan there are a lot of questions. This article will be focusing on the question, are SBA loan payments taxable? The answer is not so simple, While your payments paying back the loan are not eligible for a write off the interest and any fees associated with the SBA loan are. The subsidy received for the SBA loan is not taxable income, so no need to report is as such on your taxes. However any fees or interest paid to a lender or the SBA is an expense and is eligible to be reported as such. Are Business Loan Payments Tax Detectable? Many Business loans have the benefit of being able to write off the interest and fees associated with the loan because it is a business expense. If you borrow $10,000 with a 5% interest rate Your payback would be $10,500, $500 of which would be eligible for a write off because it was a cost associated with the loan. Hopefully this article helped you figure out your tax responsibility with a SBA loan and cleared up any confusion. Don't have a SBA loan but are Looking to get one? Trust Capital Funding is an SBA approved lender and we have multiple SBA programs available. Contact us or Apply Now and one of our representatives will go over your options and answer any questions you may have.
- The Different Types of Small Business Loans
Financing for small businesses comes in lots of forms. The alternatives you have available are as unique as your business, so it’s crucial that you understand what’s available and what works best for your cash flow. With so many options it can get confusing, let us explain the differences in detail to help you better understand what is available for you. SBA 7(a) Loans The 7(a) is the SBA’s most widely used loan program. While the loan is in part guaranteed by the Small Business Administration, the financing is brought through an approved SBA lender. This way, you may borrow anywhere between $20,000 and $5,000,000 for up to a 10 year term. The SBA’s 7(a) loan program is appealing to many small business owners for its below-market interest rate. If you apply via Trust Capital's network of lenders, you’ll see that the interest rate is currently set at Prime + 3.75% (currently 6.25%). Payments are made month-to-month and you won’t face any fees for early repayment. Your business must have an operating history of at the least 3 years to qualify. Use the proceeds for working capital, refinancing debt, making important purchases, and more. There are also different types of SBA programs available, apply for an SBA loan via Trust Capital today and let us show you your options. Term Loans Term loans are one of the most popular kinds of small business loans. If you’ve ever taken out a mortgage or financed a car, then you’re probably familiar with the mechanics of a term loan. Term loans are delivered through a lump-sum of capital from a lender and paid off in constant installments on an agreed upon schedule until you pay back the principal plus any interest. Repayment periods can range from short terms (twelve months or less), medium terms (1 -three years) and lengthy terms (three+ years). Term loans are commonly secured through a lien to your business assets (a right for the lender to seize those assets if you default on the loan) and might require a personal guarantee, this means that your personal assets can be liable in case your business defaults on the loan. One of the perks of a term loan is that the rate, which might be either constant or variable, has a tendency to be competitive and lower than different types of small business financing. This is especially true when you don't forget that you will be repaying the loan over multiple years. Business owners have flexibility with regards to how they could use the funds. For instance, one could use a small business time period loan to expand to a new location, fill up inventory, or get new employees. Merchant Cash Advance A merchant cash advance (MCA) is not a loan. It is a purchase of your future receivables or sales. It is a financing option that allows quick and easy funding by utilizing your business' future sales. Merchant cash advances can have funding amounts as high as Five million dollars, making them an excellent alternative to standard business loans. Even better, they’re much more accessible and have higher approval rates than different kinds of financing. Merchant cash advances for startups and newer businesses are a feasible solution when looking for funding. They provide access to fast, flexible financing with out fixed-month-to-month payments. Instead, you’ll pay back your loan through a small percent of your future sales. This setup allows you to obtain cash right away to put toward any new opportunity or business expense. Merchant cash advances are perfect when you want funds now and don’t want to undergo the hurdles of applying for more conventional kinds of financing - including business loans or SBA programs. Line of Credit A business line of credit offers you access to cash every time you need it and is very flexible financing option. This sort of loan permits you to draw cash out of your credit limit as you want it, and only pay interest on what you use. With revolving lines of credit, more money becomes available as you pay it down. Unlike selling equity, getting a small business loan allows you to keep business ownership, profits and complete control. Business lines of credit are the best financing tool while your business is in scaling and you need access to funds. You also can use it to bridge cash flow gaps through seasonal slumps, or as a emergency fund. There are no regulations on how you can use it—you may use a business line of credit to cover any expenses or opportunities you face. Invoice Factoring Invoice factoring is more like an MCA than a business loan. Invoice Factoring works through selling your future account's receivables to an invoice factoring company at a reduced rate in exchange for 2 lump-sum payments. The first payment is the advance - an upfront charge of 70-90% of the factored invoices, and the second payment is for the remaining balance, as soon as your clients pay the invoices in full. The first lump-sum via Trust Capital's network is between 85-90%. Invoice factoring is great for companies that want to cover inventory expenses or other expenses but have delayed payment plans with their clients. The benefit of invoice factoring is that your account receivables are quickly turned into capital instead of having to wait for your clients to pay. Will I Qualify For Financing? Many small business owners often don’t believe they have a good enough credit score to receive financing, but you shouldn’t give up just because traditional banks have rejected you. Every lender has their own guidelines and looks at qualifying factors differently, so you have a good chance of being approved even if you’ve been rejected in the past. There are options that do not rely on your credit score but instead the revenue coming into your business to qualify (MCA). You can also use collateral to get better rates and approvals without having your credit effect your offer. Every client at Trust Capital gets a dedicated loan specialist to explain your options and help you find the best option for you and your business. Apply with Trust Capital today and let us show you what your options are, there is no effect to your credit score and no obligation on your end.
- What is a business Line of Credit?
A business line of credit offers you access to cash every time you need it and is very flexible financing option. This sort of loan permits you to draw cash out of your credit limit as you want it, and only pay interest on what you use. With revolving lines of credit, more money becomes available as you pay it down. Unlike selling equity, getting a small business loan allows you to keep business ownership, profits and complete control. Business lines of credit are the best financing tool while your business is in scaling and you need access to funds. You also can use it to bridge cash flow gaps through seasonal slumps, or as a emergency fund. There are no regulations on how you can use it—you may use a business line of credit to cover any expenses or opportunities you face. How does a business Line of Credit Work? Business lines of credit work like credit cards, however with a unique structure that’s better suited for business owners. They’re also better for tax purposes—you could write off interest on a credit line, however you cannot for a personal credit card. After you qualify for a business line of credit, you’ll receive a maximum credit limit. You can draw as the maximum amount or as little as you need from that total limit in any quantity of installments, and there's no obligation to use the entire amount. You can continue to access extra capital as you pay it down. Instead of paying interest on the entire credit limit, you’ll only pay interest on what you use. Depending on your lender, you could have a non utilization fee, and may have to pay for the line if you don’t use it. Before signing an agreement, make sure to ask for information about any fees. Avoid any agreements without clear, transparent terms. What Is Required for a Business Line of Credit? Applying and qualifying for a business line of credit can take some effort, however it’s no longer hard or time-consuming. Different lenders have numerous qualifications, so whether or not you qualify can range based on where you apply. Banks and credit unions usually have super aggressive and demanding qualifications. If your business doesn’t have a spotless financial record, qualifying may be hard. Even if your application is denied at a bank, you could qualify based on your annual income at an online lender. Trust Capital is a direct lender and we have relations with multiple other business lenders. We focus on your business and opportunity for growth over factors like borrowing history and credit score. To qualify for a business line of credit at Trust Capital Funding, all you need is: a minimum of $120,000 in yearly revenue and a 680 credit score.
- What is a Merchant Cash Advance?
A merchant/business cash advance is not a loan. It is a purchase of your future receivables or sales. It is a financing option that allows quick and easy funding by utilizing your business' future sales. Merchant cash advances can have funding amounts as high as Five million dollars, making them an excellent alternative to standard business loans. Even better, they’re much more accessible and have higher approval rates than different kinds of financing. Merchant cash advances for startups and newer businesses are a feasible solution when looking for funding. They provide access to fast, flexible financing with out fixed-month-to-month payments. Instead, you’ll pay back your loan through a small percent of your future sales. This setup allows you to obtain cash right away to put toward any new opportunity or business expense. Merchant cash advances are perfect when you want funds now and don’t want to undergo the hurdles of applying for more conventional kinds of financing - including business loans or SBA programs. How does a Merchant Cash Advance Work? A merchant cash advance gives a lump sum of cash in exchange for a percent of your future sales. Instead of dealing with monthly payments, you’ll pay off your loan with small, automated deductions. Merchant cash advances provide fast financing - and you could use the finances for almost any type of business expense. What are the benefits of a merchant cash advance? Some of the biggest benefits of a merchant cash advance include the resolution of short-term cash flow issues, flexibility in relation to the funding of various expenses (which includes covering unexpected costs or buying inventory) and speed. Additionally, you may get this sort of investment regardless of bad credit history. Merchant cash advances are some of the fastest business financing solutions available. Other varieties of business loans can take several weeks or months to process, but merchant cash advances tend to deliver cash nearly immediately. They’re especially famous amongst businesses with seasonal lulls or common cash flow disruptions. Can I get merchant cash funding with bad credit? Yes! Having good credit makes it simpler and cheaper to secure financing - however it’s still viable to get a merchant cash advance with a terrible credit score. actually, a lot of online lenders have no minimum credit score requirements for merchant cash advances. When you apply for a merchant cash advance, your business’s revenue, or sales, will count more than your credit score rating. This may be especially useful in case your business is new or hasn’t built up enough credit. In fact, it’s also one of the reasons merchant cash advances are exceptionally accessible financing solutions. There can be a few variations in credit score requirements depending on the type of lender you work with. Some lenders, like traditional banks or credit unions, place considerable importance on your credit score. However, different lenders - especially online lenders, take a broader view of your credentials. They’re much more likely to consider your revenue, possibilities for growth, time in business, in addition to other factors. Can I get a same day merchant cash advance? Yes! When you apply for a merchant cash advance with Trust Capital Funding, you will be eligible to receive funds in as little as 24 hours or less. Trust Capital is a direct lender with a large network of other lenders producing personalized financing offers based on your particular criteria and needs. Simply browse your offers and pick out the best interest rates and terms available. If you have any questions, one of our experienced Business Financing Advisors will step up to help you along every step of the process. Why Choose Trust Capital Funding? We can offer the best business financing around because we are direct lenders. On top of that we work directly with a large network of lenders to provide you with multiple options for financing. Compared to a bank we need a lot less paperwork, (only 3 months of bank statements) and our online application is one page and only takes a couple of minutes to complete. We have in house underwriters that look at your file and a personal advisor is assigned to every customer. We also have higher business loan approval ratings than traditional banks with no minimum FICO score. Apply now as let us show you why it makes a difference to work with Trust Capital.
- All The Rules You Need to Know about PPP Loan Forgiveness
The Paycheck Protection Program rolled out originally in 2020 as a way to assist businesses impacted by Covid-19, however the government has approved extra funding for the program. Quite a bit has changed between the first few rounds in 2020 and the new round in 2021, however the PPP loan forgiveness rules have some subtle differences you may want to keep in mind. Below, we’ll explain everything you need to know about PPP loan forgiveness. We’ll outline each category to make sure you don’t leave out any of the rules, regulations, and requirements hidden within the fine print. The 3 Most Important PPP Loan Forgiveness Rules The best part about PPP loans is that as much as 100% of the funding may be forgiven. However, you’re going to have to follow the the SBA’s guidelines: 1. Forgivable expenses need to be spent on eligible categories and follow the 60/40 rule 2. Eligible expenses need to be incurred over your chosen covered period between 8 and 24-weeks (starting when your lender gives you your first payment) 3. You need to keep the same number of employees on the payroll Let’s break down each one of these guidelines in greater detail. 1. Forgivable Expense Categories This year’s PPP 2.0 loans have an extended list of eligible expenses. Before, forgiveness-eligible expenses were restricted to payroll, rent, and utility expenses—now, there is more coverage and extra context: Payroll: Your payroll expenses encompass wages, salary, commissions, tips, and bonuses. It additionally consists of retirement benefits and paid leave (including vacation and medical). PPP 2.0 loans clarify that organization insurance benefits (like group life, dental insurance, disability, and vision) are all counted as payroll costs. Rent: Your rent costs for any buildings, vehicles, or equipment which have lease dates starting before February 15, 2020. Utility bills: Your electricity, gas, water, transportation, telephone, and internet carrier fees for any deals or plans made earlier than February 15, 2020. Interest payments: Any interest payments on mortgage debts that started earlier than February 15, 2020. Operations expenses: Any bills for software, cloud computing, or different human resources and accounting needs—this consists of remote-enabling services like Slack, Zoom, and others. Supplier charges: Expenses made to your suppliers—before acquiring a PPP loan—that are vital for ongoing operations. Worker protection costs: The expenses for personal protective equipment and adaptive investments that make certain your business complies with federal health and safety guidelines. Property damage expenses: All costs for damages completed because of public disturbances in 2020 that your insurance did not cover. Expenses that fall under these categories are eligible for forgiveness. However, you’ll want to follow with the 60/40 PPP loan forgiveness rule. 60/40 PPP Loan Forgiveness Rule The 60/40 rule states that 60% of your loan needs to be spent on eligible payroll expenses. Any other non-payroll fees that exceed 40% of your loan will no longer be eligible for forgiveness. 2. 24-Week Period of Coverage Originally, PPP loans needed to be used within eight weeks to be eligible for loan forgiveness. Now, the protected length has been extended to 8-24 weeks. The protected period begins when you receive your first payment, not when you sign contracts. In the previous rounds of PPP, you may only apply for forgiveness after the end of your protected period. However, after the PPP Flexibility Act, you could apply for early forgiveness. If you choose to apply for forgiveness early, keep in mind the SBA’s instruction: If the borrower applies for forgiveness earlier than the end of the protected period and has reduced any employee’s salaries or wages more than 25 percent, the borrower must account for the excess salary reduction for the entire 8-week or 24-week protected period. 3. Payroll Requirement Maintenance To be eligible for complete loan forgiveness, you’ll want to keep the same number of employees on your payroll prior to February 15, 2020. If you don’t keep headcount, you’ll want to rehire personnel (or try and rehire personnel). If you don’t do this, your eligible forgiveness can be reduced proportionately. You’ll additionally want to maintain at the least 75% of their total salary. This is assessed on an individual employee basis not for your payroll as a whole. If you don’t maintain the 75% salary requirement, your forgiveness amount will be decreased. How to Apply for PPP Forgiveness You apply for loan forgiveness via the lender that issued your loan, not the government. After qualifying for a PPP loan with your lender, they have to send follow-up information with step by step instructions on how to apply for loan forgiveness (including a way to access your loan forgiveness application). For the best practices PPP loan forgiveness please review our loan forgiveness checklist above. When is the forgiveness application deadline? There is no official deadline. However, if you don’t submit for forgiveness within 10 months of the end of your protected period, then you’ll have to begin making payments on the loan. What happens if you don’t apply for PPP loan forgiveness? If you don’t apply for forgiveness, you’ll have to repay the loan with a low 1% fixed interest rate. You’ll have 2 or 5 years to repay the loan (2 years if you received your PPP loan before June 5, 2020, 5 years if after June 5, 2020). Payments will begin 10 months after the end of your protected period. Who determines PPP forgiveness? You can apply for forgiveness through your PPP loan lender, not the SBA. Your lender will confirm your documents and let you know how much of your loan is eligible for forgiveness. Then, the SBA will review your loan and forgiveness application before remitting any funds to your lender.
- Credit Card Split Funding and How it Works
Do you need a faster, more effective and hassle-free alternative to traditional bank financing to acquire money for your business? We can help. Introducing the Trust Capital Credit Card Split Program Merchant Advance Funding is a program that provides your business with advanced funds on your future credit card processing deposits. An agreed upon percentage is taken directly from your business' future Visa and MasterCard credit card processing deposits until the advance is fully repaid. Advance amounts can be anywhere up to 150% of your business' average monthly credit card processing volume ($10,000 - $5,000,000). This volume is calculated from the prior six months of credit card processing statements. Funding is quick; you can receive funding the same day after a signed contract is received. Advance repayment takes about seven months on average. Unlike a bank, the payback period is not fixed, because the repayment amount is based from a percentage of your business' credit card processing receipts. It may take longer or shorter than seven months to repay the advance. A business is required to process their credit cards with us in order to receive funding simply because this is how we secure our funds. You can be assured that rates with our company will never be higher than what you are currently paying. Generally, businesses actually save money by processing with us, so this is an additional benefit to the Merchant Funding Program. Merchant funding is also known as merchant factoring and is not a loan. There is no interest rate, and there are no requirements Frequently Asked Questions Q. How is the amount of funding that a merchant can receive determined? A. The funding amount is determined from the previous six months of processing statements. Those statements are averaged to set a base-line amount for the available funding for the merchant, which is up to 100% of your business's average monthly credit card processing volume. Q. How quickly can a business receive funding? A. A business receives funding as soon as the same day after a signed contract is received, Q. Is this a loan? A. It is important to know that merchant funding is not a bank loan, but rather an advance backed by your businesses credit card processing volume history. Because this type of funding is not a loan, there is not a specified fixed period of repayment.. There are no loan payments coupons, no dealing with people who don't understand your business, none of the traditional bank hassles, and most of all... no more "no's." You are not being judged by your past, you are being rewarded for it. We provide cash advances that are based upon your future sales. Q. What happens if credit card volume increases or decreases after we receive funding, A. Since merchant funding is not a loan, and does not have a fixed payment period, a businesses processing volume can change without effect to the repayment of the funding. Q. Will I need to switch my credit card processing? A. Since funds are paid by the back-end of your credit card processing, you must be a customer of ours for us to provide funding to you. We can give you a 100% assurance that we can meet or beat your current processing rates, while providing a superior service for your processing needs. In most cases, you will be saving money by switching and get the cash advance you need to grow your business. Q. What can the funds be used for? A. We are not a bank, and as a result, you can use the funds you receive for anything. We strongly recommend that you invest the funds back into your business. A few examples of responsible, cost-effective, uses for funding include: expansion, renovations, partnership buyouts, opening new locations, purchasing increased inventory, and increasing your businesses marketing. Q. How easy is it to get approved? A. It is a lot easier and faster than a typical bank loan. We understand the reality and the issues of owning and operating a business. We approve over 97% of the businesses that apply. Were always looking for ways to say yes! Q. How do I qualify? ¨ Have a business that accepts VISA/MasterCard as a form of payment, process a minimum of $10,000 dollars a month, and have been in business at least six (6) months. (Exception – for new restaurants only – funding will be provided for the POS system only). ¨ complete an application for a merchant advance and provide the following: o Six months (if business is not seasonal and 12 months if business is seasonal) of recent credit card ……statements. o Most recent 3 months of business bank statements o A voided check for the business o Copy of business owner's photo ID Q. How do I repay the cash advance? A. With each purchase transacted using your merchant account, a small percentage is deducted from the total sale. Repayment is completely automatic, No monthly bills or headaches! Your cash advance repayment process is convenient, easy-to-understand, completely automatic. Never worry again about meeting your financial commitments because unlike banks our programs adjust to the cash flow of your business. Q. Do I have to change my equipment and software? A. we are signed up with the largest and most reputable credit card processing banks. If you are currently processing with one of these companies a switch is not necessary. However, if you are not processing with one of our affiliates, we will have to change your current processing bank to one of the ones we are currently using (this process is seamless and painless) Q. Is it going to cost me to apply for financing? A. No -- the application is free and there are no up-front fees charged to our customers. Q. How complicated is the paperwork? A. The paperwork that you will complete is quite simple and generally takes no more than 5 minutes to complete. Q. What if I need additional funding? A. This is where our company differs from all our competitors in the industry. Trust Capital will fund you additional capital even if your prior advance is not currently paid off. As long as your sales are remaining consistent, we have no problem funding additional capital. The best part is that you’re already pre-approved! We will just need to review your previous months of processing statements to determine how much you can afford in additional funding.