Small Business Loans
The Best Resource Available For Small Business Loans

SMALL BUSINESS LOAN OVERVIEW
Estimated Business Loan Term |
2 to 36 Months |
Rates |
5% to 45%* |
Time in Business Required |
2 Months |
Min Credit Score Require |
500 |
Min Monthly Deposits Required |
2 |
Min Monthly Revenues |
$8,000 |
Min Business Loan Amount |
$5,000 |
Max Business Loan Amount |
$1,000,000 |
Max Number of Negative Days |
4 Within a Month |
*rates depend on duration of funding |
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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.
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Short Term Loans
Loan Term |
6 to 24 Months |
Rates |
9% to 45%* |
Minimum Credit Score |
650 |
Minimum Loan Amount |
$10,000 |
*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.
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Bad Credit Business Loans
Loan Term |
2 to 18 Months |
Rates |
12% to 45%* |
Minimum Credit Score |
500 |
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.
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Business Loans for Women
Loan Term |
2 to 36 Months |
Rates |
12% to 45%* |
Minimum Credit Score |
500 |
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.
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Unsecured Business Loans
Loan Term |
2 to 36 Months |
Rates |
9% to 45%* |
Minimum Credit Score |
500 |
Minimum 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.
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Business Line of Credit
Loan Term |
6 to 12 Months |
Rates |
5% to 25%* |
Minimum Credit Score |
620 |
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.
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Merchant Cash Advance
Loan Term |
2 to 12 Months |
Rates |
24% to 49%* |
Minimum Credit Score |
500 |
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.
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Working Capital Loans
Loan Term |
12 to 36 Months |
Rates |
9% to 45%* |
Minimum Credit Score |
650 |
Minimum Loan Amount |
$10,000 |
*Rates and fees depend on the duration of funding. |
Private Business Loans
Private business loans were created to provide small business owners with business funding outside of traditional resources. Because the money is private there is a lot of flexibility in rate and term structure, as well as the payment process. This type of funding is an excellent resource for small business owners that have been operating for more than a year and have a good credit history. This funding option offers borrowers the opportunity to acquire a quality business loan very quickly without the red tape of traditional financing.
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Private Business Loans
Loan Term |
6 to 36 Months |
Rates |
9% to 42%* |
Minimum Credit Score |
650 |
Minimum Loan Amount |
$20,000 |
*Rates and fees depend on the duration of funding. |
Apply Directly to One Small Business Loan Source
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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
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.
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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:
- Inaccurate reporting of outstanding balances
- Debts that may have been filed against you incorrectly
- Accounts that may not belong to you
- Debts that you may not know about
- Errors regarding any of your personal information
- Check for expiring negative accounts passing the 7 year mark
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 or you can check out our complete guide about credit repair for business owners.
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
