Estimated Business Loan Term
12 to 36 Months
Rates
9% to 45%*
Time in Business Required
2 Years
Min Credit Score Require
650
Min Monthly Deposits Required
5
Min Monthly Revenues
$10,000
Min Business Loan Amount
$10,000
Max Business Loan Amount
$1,000,000
Max Number of Negative Days
4 Within a Month
*Rates depend on the duration of funding
Below is a list of the requirements to get approved for business funding with our most basic program.
Applying has never been easier. You can either call our toll free number 24 hours 7 days a week at
or
Submit your online application by clicking apply below and entering a few basic details about your business.
Apply Directly to One Source!
Work with a direct lender and get a business loan as fast as the same day. Shield Funding offers competitive rates and terms on all it’s funding programs. Apply now with a trusted lender that has been helping business owners secure working capital for almost two decades.
Working capital loan amounts depend on your monthly revenues and business bank deposits. Approval amounts for working capital can range as high as 70 percent or more of your typical monthly deposits. As an example, if your business currently has monthly gross deposits of $50,000 your likely approval amount would be approximately 35k or more.
Your credit history has is an important factor with this type of business funding but with working capital loans your business details weigh more in the approval process. We look at time in business, your business banking information, monthly cash flows, and several other key business information.
Once you receive funding via bank deposit you can expect daily or weekly debits from the business bank account for an agreed upon amount over the course of the payback period. If you receive a daily option debits are calculated on a 5 day business week schedule that does not include holidays. If you qualify for the weekly option then you will have a one time weekly debit for the agreed upon amount throughout the course of the payback period.
The cost of our working capital loans depends on the factor rate and length of time you receive the loan. An example of a typical working capital loan package would be to receive $20,000 for 12 months at a factor rate of 1.15. That would make the additional cost above the loan amount $3,000, so your total pay back amount would be $23,000. Your payment amounts would vary depending on whether you have daily or weekly payments. Use the calculator below to give you an example of total cost scenarios for borrowing and the payments you can expect to make on a daily or weekly basis.
Managing your cash flow involves establishing and documenting everyday expenses and understanding your working capital limits. Daily assessment of your bank accounts, pending payments, outstanding invoices, and overall financial health are the basic steps in ensuring proper working capital management.
Invest your working capital in cash flow opportunities. Improving your inventory turnover ratio will increase your cash flow so take a proactive role by offering customers incentives or discount prices for larger purchases. Customers will purchase more if they can save money and a phone call or promotional effort can make a real difference when attempting to increase your available capital.
Reinforce timely payments for outstanding invoices. Develop a strict policy for timely payments and your customers will understand from the very beginning that you are not a creditor that can be delayed. Often customers will choose to satisfy your invoices and delay payments to other creditors who are not as diligent.
Balance purchasing to ensure good pricing without too much overstock. Working capital loans can be utilized to increase inventory levels and decrease product costs. Determining the maximum efficiency levels involves an in-depth analysis of customer behavior as we as historical sales data. Document inventory levels, consider seasonal or natural fluctuations, and establish the maximum inventory levels with the least amount of overstock. In your analysis consider the points that are not immediately apparent. For instance, although products on the shelf reduce cash flow, you will not take an aggressive approach to selling inventory that you do not have. Sometimes having inventory forces small business owners to be more proactive, and ultimately more productive. However, too much inventory may cause even the most proactive owners to remain with some inventory. Combine data from inventory with the success or failure of proactive approaches and you will surely be able to utilize working capital efficiently.
Distributing working capital effectively is not just about inventory, it also involves managing labor costs and productivity. Business owners often fail to manage their employees correctly. Wasting labor hours is no different than leaving stock on shelves. You must delegate production to employee strengths and hire additional labor only when you require labor to meet production needs. A daily, strategically prepared list of tasks before the day begins will result in maximum output amongst your existing labor team and reduce the need for additional employees.
Working capital plays a critical role in the development and growth of any business. It is important to understand both the funding and management aspects of working capital as your company grows. For further reading on the topic explore the guide to working capital.
It may be possible, each application is looked at on a case by case basis. Speak with your representative for more details.
