Plain answers, each linked to its product page. Every amount, rate and term on an offer is the funding partner's to set.
Is a Merchant Cash Advance a Loan? A Retail Shop's Card Sales Answer It
No. What a retail shop signs for a merchant cash advance is the sale of part of its card sales to come. For that shop, the provider collects a fixed percentage of each day's card sales until a set total is remitted, so a slow day sends less and a strong day sends more. There is no interest rate and no fixed number of months; the cost is fixed by a factor at signing. A shop with steady card sales can carry it, while one that takes cash or checks has little to collect from.
Can You Refinance a Business Loan? A Burlington, VT Gym Example: Spin Bikes and a Second Studio
Yes, a business loan can be refinanced if a funding partner agrees to pay off the old balance with a new loan. For a Burlington, VT gym that financed spin bikes and later opens a second studio, a refinance might fold the bike balance into a larger term loan for movable equipment at the new space; fixed studio work is separate. It only makes sense when the new total cost, including any charges for paying the old loan off early, is lower than keeping the old loan.
Read the existing loan's terms for a prepayment charge before asking, and list the current balance on the request.
Is a Working Capital Loan Long Term? Tire Machines, Tire Stock and Burlington, VT Repair Shops
No. Working capital loans are short term by design, sized to a gap of weeks or months. For a repair shop, tire stock that sells within weeks fits that term. Tire machines, which last for years, belong on equipment financing, where the term can follow the machine's working life.
What Does a Business Loan Require? What It Means for a Chittenden County, VT Restaurant
Each funding partner sets its own requirements, but a request for a restaurant in Chittenden County, VT can be reviewed on similar ground: recent bank statements, time in business, revenue, current debts and the purpose. Of the 338 restaurants and other eating places with paid staff that County Business Patterns counted in Chittenden County, VT for 2023 (NAICS 7225), 81 ran with fewer than five employees, and the same review ground applies to all of them. The how a request moves page lists the papers a partner can ask for.
What Is a Drawdown Line of Credit? Notes for Dental Offices
A drawdown line of credit lets a business take money in draws up to a set limit instead of all at once. Under a revolving line, repaid amounts can be drawn again; under a non-revolving drawdown line, each draw reduces what is left until the line ends. For a dental office, a drawdown line can cover supply invoices and payroll while insurance claims are pending.
The line of credit page shows an invented eight weeks of draws and paydowns on a revolving line.
By Wrenbridge Capital · Updated