Got questions?
Here are some frequently asked questions about FDIC Bank Term Loans and LOCs. If you still need answers, feel free to reach out to our friendly team for a no-obligation call to determine whether it’s the right fit for you and your business.
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Here are some answers to common questions we hear from clients. Still need more information? Reach out to our team; we’re happy to help.
No. One application package for your business starts the process for BOTH & you will receive offers for the maximum amount (on either or both) that you can qualify for.
Any owner with a 20% or greater ownership stake needs to pull their own Free Credit Report (the FULL report, not just the summary). We highly recommend using Experian Free Credit Report. If you pull your own FREE 15-100 page PDF report, it doesn’t count as a “pull” against your credit. If we do it, it will, so please do this yourself. Plus, there’s no hard pulls until you go to closing. All owners with a 20% stake or greater should IDEALLY have a 680 FICO credit score with all three bureaus. If only one owner can meet this 680 FICO minimum, we may still be able to make the file work, so please text, or email us with your scenario. We have other low-cost, bank credit facilities where the file may still fit.
Many applicants that are successfully funded in this Program do have existing business debt at the time of their application. Having existing debt will not automatically disqualify you. It is just one more data point, along with your company’s other specific metrics, that will be factored into your approval. Naturally, the main question is “..can you easily afford the existing & potential new debt…?”
Everything at a bank takes time. Many times we’ll get a Y/N decision in just 3 – 4 business days. Other times a bit longer. Good news is that we usually have declined files come back sooner. So, in theory, the longer we hear nothing, the better the chance an offer will be extended.
A Bank Term Loan will go for a specific period of time, or term, like 2, 3, 4, 5, 7, or even 10 years. On the other hand, a Line of Credit (LOC) may not have a set maturity or term. This is called “revolving credit” where the credit line can be used, paid back, and re-used without a maturity term. Offers and terms will be based solely on the qualifications of each individual file. Each offer will be explained to you in detail, so you can make the best decision you can for your business and your unique situation.
As the name implies, a BTL is when the bank loans your business a lump sum of money for a specified period of time, called the term. As an example, a $100,000 5-year BTL means the bank will offer you a $100,000 lump sum to be paid back monthly for the 5-year (60 month) term. A $100,000 LOC, by contrast, is when the bank earmarks $100,000 for your business to use when and where you need it. You may borrow up to the $100,000 maximum LOC amount for as long or as short a time period as you need to within the structure of the LOC terms. You will pay interest only on funds drawn down, or outstanding, and only for the number of days the money is drawn down by you and your business. As an example, say you drew down $50,000 of the $100,000 available to you, and only used the money for 30 days. In that example, you’d only owe interest for the 30 days outstanding, and only for the $50,000 of principal that you borrowed. With both the BTL & the LOC, clients will make small monthly repayments – never daily or weekly.
Sometimes a business applicant is strong enough, as a business-only, to borrow funds without the owner’s own PG (personal guarantee). Other times, it will make the bank feel more secure to have ownership’s PGs. Each scenario is different. In either instance, if you plan on repaying your debt, it really shouldn’t matter.
No, all credit facilities being applied for here are for unsecured financing. To be clear, this typically means that a borrower is not required to pledge collateral to secure the transaction. Knowing this information is helpful, however many banks will still place a UCC lien on the general assets of the business. This does 2 things: 1) establishes the Bank as a lien holder for legal purposes, and 2) alerts other future lenders that the client has an outstanding debt, which can serve to help the applicant avoid getting over-leveraged in the future.
Most debt relief firms offer just one option. We do both — restructuring and refinancing — so you’re never forced down the wrong path. Every situation is unique, and we work with your reality to find the best possible outcome.
We’re a family-run firm. That means real conversations, honest advice, and support when you need it most. We pride ourselves on transparency, even when it’s hard to hear, because we know that there’s a viable solution.
You’ve already paid enough, and if you had the money to pay upfront fees, you wouldn’t need us. We’re not tone-deaf to that. That’s why any debt restructuring program fees are built into your new, dramatically lower payments.
From the first call to a signed agreement within 24 hours. When the pressure’s on, speed matters.
Whether you need to reduce debt payments, consolidate debt, or explore smarter funding options, we meet you in your financial reality — with honest support and clear solutions that work. Our team of financial and legal experts will guide you towards a clearer financial path. Every call is honest, supportive, and completely pressure-free.
It all starts with a pressure-free chat. You tell us what’s going on, and we’ll listen without judgment, getting to know you and your business so we can tailor the best plan for your situation.
Next, we create a plan built around your unique needs — no cookie-cutter solutions here. We will request a handful of documents needed for our banks to assess your situation. We look at your debt, discuss what’s affordable, and design a plan that actually works, often reducing payments by 50–75% immediately.
Your file will be assessed by our FDIC bank platform partners and then sent to the banks most likely to give you approval offers. This is based on many factors like location, industry, and financial circumstances.
You will received a Yes/No decision within 3-4 business days…sometimes even sooner.
Often times there will be multiple offers made by more than one bank. You can take one or take all. The choice is yours.
Thousands of clients nationwide trust us to reduce high debt payments and find the best financial way forward. When your debt becomes impossible, we work with you to find the best solution.
Our dedicated team is trusted by small business owners nationwide. From local service providers to growing companies across a range of industries, businesses turn to us for reliable, results-driven support.
We don’t believe in one-size-fits-all debt relief. Every business is different, and your solution should be, too.
You’ve already done the hardest part by looking for support. If you’re ready, we’re here to talk — no pressure, no judgment. With over 30 years of experience, we’ve helped people in all kinds of situations, and we’ll help you, too.
Let’s work together to simplify your personal debt so you can breathe easier again.
