Small Business Loans

The Best Resource Available
for Small Business Loans

Shield Funding has been providing small business loans to business owners for more than a decade. We specialize in securing funding for business owners and offer a variety of programs that help them grow their business. We work with all industry types and sizes, as well as have options for all FICO score levels. We have custom tailored business loan solutions for those individuals that have bad credit for reasons such as tax liens, bankruptcy, or late payments and charge-offs. We also offer low rate business loans for those individuals that have excellent credit and for one particular reason or another cannot acquire a loan from a bank.


Comparing Your Small Business Loan Options


Short Term Loans

Short term business loans are for business owners that are looking for immediate funding that will be paid back over a short period of time. These loans are structured where the borrower receives funding and the payback amount and any fees is determined up front. As far as rates and terms this is the best alternative financing option for business owners that do not meet bank requirements. This type of business loan is short term so the payment plan will be spread out anywhere from six months to three years.

Learn More

Short Term Loans

Loan Term6 to 36 Months
Rates9% to 45%*
Minimum Credit Score650
Minimum Loan Amount$15,000
*Rates and fees depend on the duration of funding.

Bad Credit Business Loans

Bad credit business loans are for business owners with poor personal credit or weak business financials. This type of funding features daily or weekly payments and the fees are determined before funding takes place. This product has very few document requirements and funding can take place as fast as the same day. This financial product is a great option when traditional financing is not a possibility.

Learn More

Bad Credit Business Loans

Loan Term2 to 18 Months
Rates12% to 45%*
Minimum Credit Score500
Minimum Loan Amount$5,000
*Rates and fees depend on the duration of funding.

Small Business Loans for Women

Small business loans for women are a financial product specifically created for female business owners. Structured similarly to our other loan programs, the rates and terms will vary depending on the credit history of the borrower or the strength of the financials of the small business. This funding program is a great resource for women that have an established business but need financing to grow. Funding for this program can take place anywhere from the same day to a few days.

 

Learn More

Business Loans for Women

Loan Term2 to 36 Months
Rates12% to 45%*
Minimum Credit Score500
Minimum Loan Amount$10,000
*Rates and fees depend on the duration of funding.

Unsecured Business Loans

Unsecured business loans are a great option for small business owners that require funding for their business but do not have collateral. This product features daily, weekly, and monthly payment options and funding can take place as fast as 24 to 48 hours. Depending on the size of the loan there may be very few documents required.

Learn More

Unsecured Business Loans

Loan Term2 to 36 Months
Rates9% to 45%*
Minimum Credit Score500
Business Loan Amount$5,000
*Rates and fees depend on the duration of funding.

Business Line of Credit

This type of funding option is a great option for small business owners that want to get approved for funding but not necessarily use all of the funds. The payment terms feature weekly or monthly payment options, and the overall cost of financing will be based on how much the borrower decides to utilize. Financing can take place in as little as 2 to 3 days depending on the size of the line of credit.

Learn More

Business Line of Credit

Loan Term6 to 12 Months
Rates5% to 25%*
Minimum Credit Score620
Minimum Loan Amount$5,000
*Rates and fees depend on the duration of funding.

Merchant Cash Advance

This is the best option for borrowers that do not want the burden of fixed payment schedules. Payments are withdrawn from a small percentage of the credit card revenue as it is processed until the advance is paid back. This feature gives merchants the ability to pay less during slower business cycles and more when business is better. Funding can take place as quickly as 3 business days as there are very few document requirements.

Learn More

Merchant Cash Advance

Loan Term2 to 12 Months
Rates24% to 49%*
Minimum Credit Score500
Minimum Loan Amount$8,000
*Rates and fees depend on the duration of funding.

Working Capital Loans

Working capital loans are a great resource for small business owners that require funding to help finance the daily operational expenses of the company. This loan option offers flexible payment structures so daily, weekly, and monthly options are available. Some other advantages with this form of funding is that there are very few document required and the entire application and funding process can take place as quickly as the same day.

Learn More

Working Capital Loans

Loan Term12 to 36 Months
Rates9% to 45%*
Minimum Credit Score650
Business Loan Amount$10,000
*Rates and fees depend on the duration of funding.


Apply Directly to One Small Business Loan Source

Get Approved

What Small Business Loan is Right for You


Most small business owners applying for a loan want to borrow as much as possible as they intend to use the funds to advance their growing business, however, it really comes down to what payment plan is manageable. Every business is different, some companies receive small inflows of cash frequently making a daily payment a viable option while others receive larger payments less frequently and only a weekly or monthly payment plan would work. Knowing what type of payment your business can sustain is very helpful when determining what type of loan is right for you.

What are the Payments for a Small Business Loan?

Knowing the amount of each payment depends on the amount of your loan and the rate you receive. There are also various payment options so the amount of your payments will be larger or smaller depending how frequently you make payments.

How Often Do You Make Payments?

There are a wide variety of small business loans available, and every type of loan has different payment options. Below are the three possible payment types on your small business loan. There is one exception and that is a merchant cash advance where a percentage is taken out of sales as they are processed.


Daily Payments

With this option the funds will be withdrawn daily, five days a week not including holidays, until the account is settled.

Weekly Payments

With this option the funds are withdrawn on a weekly basis, one payment per week, until the account is settled.

Monthly Payments

With this option payments are made on a monthly basis, one payment per month, until the account is settled.

Calculate Your Small Business Loan Payments

  • Daily
  • Weekly
  • Monthly
Outputs
Loan Amount
Factor Rate
Number of Months
Total Repayment
Payment
$156,000
Cost of Loan
$4,444.44
Total Repayment
$4,444.44

What is a Factor Rate?

Factor rates are written in decimals even though you could read a factor rate as a percentage. We decided to keep the calculator with percentages to keep it simple. As an example, a factor rate of 1.17 in percentage terms is 17%. A factor rate of 1.45 in percentage terms is 45%. To explain, borrowing $10,000 at a factor rate of 1.25 (25%) over any specified time period means you will pay back $12,500 over that time period regardless of how fast you pay it off (in the event you decide to pay it off early). It is important to point out that there is a significant difference between factor rate and APR. Factor rates are determined up front utilizing the original borrowed amount whereas APR is continuously calculated on the outstanding debt.


What Will a Small Business Loan Cost You?

Nobody knows your business better than you. You have to determine what costs on the money makes sense for your business. Does your business operate with tight margins? Are you planning a promotion or marketing campaign that is going to increase sales? Are you going to pay off existing debt to lower your debt financing costs? You will have to calculate the revenue you will generate with the additional capital and determine if it will cover the cost of the loan. Consider the possibility of your intended business plan failing and how the additional debt will impact your company’s future. Calculate the payments and total payback you are considering with the calculator above, look at every possible scenario in your business plan, consider your debt versus your cash flow and determine what payback amount is right for your company.

Additional Fees to Consider

When considering the payback for a small business loan all the additional fees must be factored into your calculations. It is important to note that each lender is different and can have their own set of fees completely different than every other lender. Although Shield Funding does not charge most of these fees listed below they are common with many lenders.

Origination Fee

The origination fee covers the cost for processing the loan. This includes administrative costs, verifying an application, and other costs associated with approving your application and getting the funds in your business bank account. This fee is generally quoted as a percentage, generally between 1% and 5% although some lenders charge a flat fee.

Application Fee

This fee is charged for processing your application whether or not you receive an approval. It helps cover the costs for running credit checks and basic administrative costs for initiating the small business loan process. This fee is typically waived when the borrower receives funding although there are many lenders that do not even charge an application fee.

Late Payment Fee

This fee is charged when a borrower fails to make a payment on the due date. Many loan programs today have automatic payment options so the borrower does not formally submit payments, but if there are insufficient funds in the account some lenders can charge a late payment fee for every attempt to draw the payment that has been rejected.

Pre-Payment Fee

A prepayment fee or penalty is a fee that some lenders charge when a loan is paid back in full before it matures. However, this does not exist in the alternative financing industry. In fact, it is the exact opposite. Some lenders actually offer a discount for prepaying your loan. Be sure to know your prepayment options before accepting the funding.



Ready to Apply for a Small Business Loan

Apply Now

Does My Credit History Matter


Your credit score plays a very important role when it comes to securing a small business loan. It is not as important in whether or not you get approved because we assist our clients in receiving business loans with FICO scores as low as 500. It is however a big part of determining the rates and terms you will receive. The lower your credit score the higher the risk involved with processing your loan. If rates and terms are critical to making the funding work for your project at hand then there are steps you should take before applying.

Step 1. Go to annualcreditreport.com and request your free yearly report for from the 3 major credit reporting agencies: Experian, Equifax, and Transunion.

Step 2. Check on your current FICO score report. Many credit card companies and banks offer this for free you just have to find which accounts offer this option. If you do not have access to this number through your existing accounts there are probably a dozen places to find your free FICO score. It is important to know the starting point of your credit score before you attempt to secure funding.

Step 3. Analyze your credit report in detail. Check for:

Step 4. Dispute Faulty Data
The three major reporting agencies have easy to follow directions on how to dispute any negative items on your credit report that you believe to be in error.

Step 5. Pay for Delete
Many consumers will find negative accounts that they actually are responsible for the debt and it is being held by a debt collection agency. Many of these agencies are willing to negotiate a settlement and provide a letter to have it removed from your credit report. Here is a sample pay for delete letter to help you get started.

Step 6. Boosting Your Credit Moving Forward

  • Setup Payment Reminders moving forward and make payments on time
  • Reduce outstanding balances
  • Apply for new credit accounts only as needed because just applying for credit can reduce your FICO score
  • The longer the age of accounts the better FICO score
  • Request credit increases if you trust you won’t mismanage balances
FICO Score Chart

Analyzing Your Business Loan Application/What Lenders Look For

ADebt Service Coverage Ratio (DSCR) What lenders look at to assist you in determining the payments your business can handle. Simply put your DSCR is your cash inflow divided by debt expense, or basically your overall ability to service the debt. As an example, if your cash inflow or net operating income (NOI) is $140,000 per year and your total debt expense is $100,000 each year, then your DSCR would be 1.40. Although lenders do consider external revenue sources, existing assets, business cycles and seasonality, and other factors, cash flow is a strong indicator of what type of loan payments a business has the capacity to maintain. Below find a snapshot of the actual DSCR formula.

dscr formula explained

BBank Payment History Lenders look closely at your business banking history by reviewing your business bank statements. If you have several days of negative bank balances in a short period of time it will make it more difficult for your business to get funded. Most lenders do not want to see more than 3 to 5 negative days in any given month. Lenders also look at your deposit volume, meaning how many deposits you make a month. Another important factor considered is revenue. Lenders want to know if your revenue is increasing or declining, as well as when was the last time you generated revenue.

COutstanding Loans A big indicator of whether or not you are eligible for funding is whether or not you have any outstanding small business loans. There are many lenders who will provide loans on top of other loans, but DSCR will play a big role in that determination.

DBusiness Industry Many traditional lenders want to know what industry your business is in because industries that have good cash flow are ideal. However, industries that do not have good cash flow require stringent underwriting and are more difficult to fund.

ERent/Lease Agreements Lenders want to know whether or not your business rent or leases are paid on time as well as how much time is left on your lease.


What are Common Documents Required for Small Business Loans

The financial industry is no longer limited to one or two traditional loan products, there are actually a wide variety of small business loans available and being prepared when you apply guarantees the best results when funding your business. Lenders can require very little or extensive paperwork depending on the small business loan selected and the financial health of the company. As an example, bad credit business loans require just a few documents whereas prime business loans may require a long list of documents because of the better rates and terms offered.

Bank Statements
A typical application requires the submission of 3 to 4 months of bank statements. Larger loans may require up to 12 months.
Business Licenses
Certain business licenses or certifications may be required depending on the state.
Proof of Business Ownership
Typical documents like articles of incorporation or related documents depending on your business structure may be required.
Lease Agreement for Business Property
If you pay rent or utilize a location for your business you may be required to submit a copy of your lease.
General Identification
Your personal identification is required. Be prepared to submit a copy of your driver’s license or the equivalent.

Additional Documents Required for Small Business Loans Above $100,000

Personal Tax Returns

The application process for larger loans will also require that you verify your personal income with personal tax returns for up to 2 years.

Business Tax Returns
The application process for larger loans will require up to 2 years of the most recent tax returns for your business. If you do not have business tax returns because of the way your business is structured then other forms of supporting documents may be required.
Balance Sheet
The application process for larger loans may require a look at your most recent balance sheet to determine the financial health of your business.
Profit and Loss Statement
To complete your application for larger loans you may have to provide Profit and Loss statements (P&L) for the two most recent years. This insight will help determine what type of payment structure is viable for your business.
Business Debt Schedule
For larger loans you may be required to submit a business debt schedule. This is more insight for determining what type of payments can work for your business.
A Deeper Look at Common Documents Required
For a closer look at typical documents required when applying for financing check out common documents required article.

How to Get Small Business Loans


Submit Online Application

Just answer a few simple questions in our online application and click submit.

Select Funding Option

Talk with one of our business loan experts to determine the best funding option for you.

Get Your Funds

Submit supporting documents and get the funds transferred to your account.



Apply Directly to One Small Business Loan Source

Get Qualified

Typical Uses for Our Business Loans

  • Improve or Expand Your Business
  • Purchase Inventory or Equipment
  • Customer Acquisition Via Marketing etc.
  • Create Website/Upgrade Existing Site
  • Construction/Location Upgrades
  • Pay Off Creditors or Unnecessary Debt
  • Immediate Profit Opportunities
  • Much More…

Typical Shield Funding Applicants

  • Small Business Owners from Every Industry
  • Recently Denied for a Bank Loan
  • Bad Credit Prevents Traditional Financing
  • Need Immediate Business Funding
  • Not Happy With Current Lender
  • Need Big Business Loans
  • First Time Business Loan
  • Much More…

Typical Questions Asked Before Applying

  • How fast can I get a business loan?

    We have had small business owners who have received funding in the same business day that they applied. It just depends on how prepared the applicant is with their documents as well as several other factors.

  • How will this affect my credit?

    You can build good business credit by keeping your account in good standing over the life of the loan.

  • Can I use the funds for anything I want?

    Yes. There is no restrictions on how you utilize the funds.

  • Do I need good credit?
    No. We have programs for all credit types. It is more important that you have a business with revenue and the banking statements to verify the revenue.


Compare Shield Funding Business Loans vs Traditional Bank Loans

Learn the difference between traditional bank business loans and the options for small business loans offered through Shield Funding.

BANKSHIELD FUNDING
Time in Business2 Years2 Months
Credit Requirements700+ FICO500+ FICO
Application Process1-6 Months1-2 Weeks
Loan Amount$10,000-$100,000$10,000-$1,000,000
Repayment Terms12-60 Months3-36 Months
Revenue Requirements$250,000$100,000
Payment TypeWeekly, MonthlyDaily, Weekly, Monthly
RestrictionsYesNo
Type of RateAPR 6%-23%Factor Rate 1.09-1.59 (APR 22% to 100%+)

Small Business Loan Application Checklist

  • Decide which loan is right for you, consider loan types and lenders
  • Determine best payment terms, daily, weekly, monthly, consider affordability
  • Consider turnaround, fees, and overall repayment costs for all loan options
  • Analyze credit history and improve where possible
  • Gather documents for your application, the more prepared the easier the process
  • Submit application and all the necessary documents and get funded
  • Grow Your Business