Thank you for your interest in using our FDIC Business Bank Term Loans & Lines of Credit (LOC) Program to Refinance Your Merchant Cash Advance (MCA) Debt.
FDIC Bank Term Loan and Line of Credit (LOC) Program :
Requirements To Apply:
with all 3 bureaus
Time in Business:
2 years minimum
$250k minimum last
All Good EXCEPT No
Good in ALL 50
Still have questions? Please refer to our FAQs below. You can also call us at 561-288–4510 or text us at 561-486-9731. We look forward to helping you secure your low-cost FDIC Bank Financing.
Frequently Asked Questions
Here’s a list of some of the most common questions we hear on a regular basis.
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.
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 business. 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.
*** All files are subject to full underwriting & qualifications specified by each bank. There can be no assurance that any applicant will be approved and that credit will be offered.***