Financing small business loan can be problematic. Many entrepreneurs struggle to grow their business in the first 12 months and additional funding is often required. One of the most common ways for you to raise working capital is through a business loan. And preferably you’d like your application process quick and easy.
Can I Get Small Business Loan?
To get your loan application approved, you need to convince the lender that your business is (or is going to be) a going concern, in other words you’ll make enough profit to complete your repayment without delay. Typically your lender will ensure that;
- You have a detailed business plan – how your initial investment will be used and how you predict the rate of return, i.e. the future profitability of your business should be estimated in the plan.
- You have a fairly good knowledge or experience in the industry.
- Your current personal credit position is at acceptable level – you’re not in a serious debt and have a good record of repayment history.
- The amount of loan and the repayment term is feasible – even if your business plan looks perfect, the lender needs to make sure you’ll be able to repay realistically.
Get Small Business Loan Fast and Easy
You need a lot of capital particularly at the commencement of your business, sometimes unexpectedly. You need tangible assets such as equipment, technology and vehicle, and current assets such as stock inventory. This is of course on top of your working capital such as advertising, payroll if you employ someone. Therefore you need a loan lender who can provide what you need fairly quickly with no complex application process.
CAN Capital Review
Established in 1998, CAN Capital is of of the leading loan providers in the US, who can offer you starting from $2,500. If certain eligibility requirements are satisfied, it can offer up to $150,000 for single location businesses and $250,000 for multi-location businesses.
These loans have a range of terms from 4 to 24 months, meaning it is flexible according to how long you will likely to be, or want to be in debt, and of course it depends how quickly you make a profit on your business.
Option 1: Business Loan
Your business may qualify for CAN Capital’s Business Loan if your business has been in operation for at least 4 months, has a monthly gross revenue of $4,500 or more and relatively stable. The term of loan offered will be from 4 months to 24 months.
Easy Small Business Loan Application
You can complete the loan application online within 10 minutes or less, and can have your funds sent in as little as 2 business days. Also CAN Capital claims that 70% of the eligible customers are happy with its service and renew with CAN Capital.
Option 2: TrakLoan
How Does It Work?
CAN Capital’s TrakLoan is ideal if your daily credit/debit card sales fluctuate. Instead of repaying a large amount once a month, a flat % of your business’s card sales are automatically remitted daily. Meaning a larger amount is sent on busy sales days than on slow days. This process stops automatically when your loan repayment is completed.
The application is as easy as Business Loan option above, and you can have an access to your fund in as little as 3 business days.
Option 2: Merchant Cash Advance
Merchant Cash Advance (MCA) is normally known as “Credit Card Receivable Funding”. CAN Capital will work as an intermediary here, and MCA provider will buy off your future profit at a discount (up to $150,000), then you will pay back a fixed % or your future credit/debit card sales on a daily basis. So the payback process is the same as the TrakLoan above. Most MCA providers will offer you slightly different terms.
Business Loan Fees/Interest Payable
The percentage of interest or fees payable is not mentioned in the CAN Capital’s site, I assumed it may vary depending on the level of borrowing, terms and the time of borrowing. Instead it has a loan repayment calculator.
Here is what I’ve tried and worked out.
Please note that the site says these calculations are hypothetical and for informational purposes only. So what’s shown above is although an extract from the calculator but just to get the feel of what the payable may be.
So according to the calculator, the rate depends on the term of the loan, but regardless to the amount of borrowing or your gross income. 15% for 4 months loan, 17.5% for 5 months loan, 21% for 6 months loan and so on.
If you look at the chart above, for example if you borrow $10,000 for 6 months, you’ll have to pay back $12,100, i.e. $2,100 extra, which is 21% of the capital you’re borrowing.
But if you borrow the same amount for more than 10 months, your repayment will be $13,500, i.e. $3,500 extra (=35%), whether it is 10 months, 11 months or 12 months. So in theory it is beneficial to borrow it for 12 months rather than 10 months – borrow longer by 2 months but the fee will be the same.
*** The calculator does not show the rate for longer than 12 months, but the CAN’s Business Loan offers the term up to 24 months.
Once again, CAN Capital says the actual terms for which your business may qualify will all depend on the industry type, verified revenue, credit history and so on. So please keep this in mind.
In terms of the easiness of application and speed of approval, CAN Capital seems to be helpful for small business owners. The rates can seem high, but if it’s affordable by your business, it’s a very handy place to go for.