Our Small Business Loan Programs
Commercial Business Loan Programs – Stellar Business Funding specializes in the following types of financing:
- Business/Merchant Cash Advances
- Loans for Small Businesses
- Equipment Leasing
- SBA Loans
- Credit Card Processing
We pride ourselves in offering these programs quickly, at competitive rates, and with exceptional customer service for businesses in the United States. We also seek to educate you so you can make the best possible decision as you search for working capital.
This page gives you a basic overview of each of our programs so you can see the information all on one page for comparison purposes.
Remember ……… there are no application or approval fees for any of these programs.
Business Cash Advances
First up in our Commercial Business Loan Programs are Business Cash Advances, also called Merchant Cash Advances. They are not loans, but are an exchange of upfront capital, sold at a discount, based on the future sales of your credit card receivables.
In other words, we take a percentage of your daily credit card sales and have that amount sent to us on each day that you have sales. What’s great about this system is that you don’t have to pay out a large set amount on slow days, months, or seasons.
In most cases, the maximum cash advance you can receive is 125% of your average monthly credit card sales. So, for example, if you have $8000 in average monthly sales, the most that can be advanced to you is $8000 x 125% = $10,000.
Requirements for Business Cash Advances:
- In business for at least 30 days.
- Have at least $4000 of credit card sales each month.
- A physical business location.
- Good standing with your business lease.
- No open bankruptcies.
- All tax liens must be on a payment plan.
- A separate business bank account.
Business Cash Advances typically range from $3000 – $2,000,000, and costs are based on rate factors of 1.12 – 1.29. What that means is that let’s say you have a rate factor of 1.15, you will pay back $150 in cost for every $1000 that is advanced to you.
Factors are based on the amount you are financing, the estimated payment term of 6-18 months, and risk. For a more detailed explanation of this program, go to our Business Cash Advances page.
Business Loans are unsecured, short term, and have fixed payments that we automatically debit each day or week.
Generally, the maximum offer for a business loan is 10% of annual sales, which is documented by your business bank deposits. As an example, if you average $40,000/month for 6 months, that projects out to $480,000/year x 10% = $48,000 for the maximum approved offer.
Requirements for a Commercial Business Loan
- In business for at least 6 months.
- Average gross monthly sales of $10,000+.
- Minimum credit score of 500 for business owner.
- Limited NSF’s and negative bank balance days.
- Positive closing bank balances.
- In good standing with business lease.
- Tax liens on payment plan.
- Cash and check sales …… credit cards sales not required.
Commercial Business Loan amounts typically range from $5000 – $2,00,000, with repayment terms of 6 – 24 months, and rates between 14 – 30%. For more information about this program, go to our Short Term Business Loans page.
SBA Loans are the next of our commercial business loan programs. SBA stands for the Small Business Administration, and is a United States government agency that provides loans, training, and support to entrepreneurs and small businesses.
The SBA partners with banks, credit unions, and other lenders such as Stellar to provide small business funding. You can choose from No Collateral Express Loans and a 2 – 4 week wait time for approval, or a Collateralized 7(a) Loan for a 2 – 6 month approval wait.
SBA Loan Requirements :
- Owners must be US citizens.
- No previous default on any government-backed loan including student loans.
- No outstanding judgements or delinquent taxes owed to the IRS.
- Startups accepted.
- Detailed business plan.
- Full documentation including profit loss and balance sheet.
- Sufficient collateral to cover loan amount for 7(a) Loans.
- Down payment of 10% or Capital Injection for purchase transactions.
SBA Loans have variable interest rates that are tied to the Prime Rate.
For Express Loans, the maximum amount is $25,000 and maximum term is 10 years.
For 7(a) Loans, amounts go from $250,000 – $5,000,000, with full collateral including personal real estate, and terms of 5 – 25 years. For more requirements and info, go to our SBA Loan Programs page.
Mobilization Funding is an option for you if you are working or bidding on a job larger than your normal project scope.
Use our programs to help you gain the working capital you need to keep your bids competitive and your project’s cash flow running smoothly from start to finish.
Mobilization Funding Steps :
- Let us know the scope, company history, and the amount of capital you are needing.
- Send over copy of contract or purchase order.
- Provide requested tax documents and additional financial documents
- Accept term sheet and sign final contract
This cash advance alternative is a short term loan with terms usually around 180 days. Your exact rates will be outlined in your term sheet which allows you to make an accurate decision prior to contractual commitment.
Advantages include being able to borrow on multiple contracts and get the up front funding you need to get your job started and keep it financially secure.
Credit Card Processing
Here at Stellar, we are involved with the Credit Card Processing industry, not for profit, but so we can process cash advances ……… and we can pass savings on to you.
You don’t have to switch, but you may want to change to a credit card processor that works with all cash advance lenders, especially if you plan to get more advances in the future.
We can give you a free quote on credit card processing whether you’re requesting a cash advance or not. Switching is easy and basically involves reprogramming over the phone.
The only requirement to get started is 2 months of credit card processing statements, which we then review and run an analysis on before sending you an application. Find out more by going to our Business Credit Card Processing page.
To get an idea of the types of businesses we provide funding to and problems we solve for them, go to Recent Transactions.
Keep up to date with the latest news and programs, sign up for our monthly newsletter, Stellar Performance Business Funding Solutions.
If you do, you’ll get our working capital optimization report Improve Your Qualifications for FREE, which has 4 pages of useful information about qualifying, avoiding being declined, and receiving higher funding amounts for your commercial business loan or cash advance.