The non-bank lending industry has exploded over the past two years, and as the field gets bigger, it’s seeing a lot of change. Some of those changes are beneficial to businesses looking to borrow. Others are making access to capital harder to come by. [Read more…]
Since the financial crisis started in the late 2000s, the non-traditional lending market has exploded. [Read more…]
When clients come to CapFusion looking for financing to help grow their businesses, it’s often after they’ve been rejected by traditional banks — even the bank they have an established relationship with.
Alternative lenders like CapFusion entered into the market in the wake of the financial crisis to address precisely this problem. More and more often, business owners who had been able to rely on their local banks for loans were being turned down.
The reasons for the tightening of the traditional bank loan market over the past several years are twofold. After the financial crash of 2008, government regulations on banks increased, and banks were required to get more extensive documentation of clients’ financials before approving a loan. Suddenly, even businesses with solid credit and good repayment records no longer met the new, stringent standards. To compound the problem, these new regulations added weeks or even months to an already lengthy application process. So many business owners found that they had to wait and wait only to find out they hadn’t been approved for the financing they needed for their businesses.
The second reason for the change in the traditional bank lending market was simply that, after the financial crisis, banks became much less risk tolerant. Having watched their balances plummet as the housing market imploded, banks got more protective of their assets, only wanting “sure thing” loan clients. Unfortunately, that meant many small- and medium-sized companies — even ones with strong financials — were no longer attractive clients for banks.
At CapFusion, we realize that business owners need a lending partner they can turn to in the post-financial crisis environment. That’s why we’ve developed a loan application and delivery system that addresses the biggest challenges for business owners who have been turned down by traditional banks. First, we offer a straightforward application system that takes just a short time to complete, as opposed to the days you might spend pulling together all the information required for a bank loan. We can get you an approval decision in a matter of days instead of months — and, unlike banks, we are always looking for ways to say “yes” to loan applications. And here’s the best news: Once you’re approved, we can deliver the funds to your account right away.
If you’re looking for a lending partner you can turn to to help grow your business, try CapFusion today. You’ll see the CapFusion difference.
Flexibility is increasingly becoming a key to success for today’s business owners. With costs rising across the board, it’s more and more important to keep overhead low. At the same time, you need to be prepared to staff up when opportunity knocks.
After working with hundreds of business owners looking for funding to meet a variety of needs, we’ve found that a CapFusion loan to pay for increased staffing can be a great way for owners to grow their businesses and turn a significant profit.
Let’s take a look at a hypothetical example using a commercial roofing company to show you what we mean.
Say that as the owner of the company, you’ve kept your full-time staffing low during a relative dry spell. But when a bid opens up for roofing installation on a major new shopping center, you know you can’t sit on the sidelines. You place your bid knowing that you’ll have to staff up quickly if you get selected.
When the developer calls to let you know that the job is yours, you’ve got to find a way to hire and pay for additional roofing crews for the work that will start in just a couple of weeks.
This is where a loan from CapFusion comes in.
CapFusion can process and approve loan applications in a matter of days, and have funds delivered to your account in less than a week. For the roofing contractor in the example above, a $15,000 CapFusion loan to help pay for staffing upfront would cost around $1,800.
The profit margin on the $500,000 roofing job for the shopping center would be around $30,000. So the $1,800 cost of the loan would help your business net $28,200 in profit.
When these kinds of opportunities present themselves in today’s fast-paced business environment, you need a lending partner positioned to respond quickly so you can take advantage. CapFusion was built to be just that partner. Contact one of our loan analysts today to see the CapFusion difference for yourself.
CapFusion’s B.J. Adams credits the entrepreneurial roots of its founders with the creation of a culture that proactively looks for ways to help its clients — a marked difference from many of the other players in the online space. Adams took the time to answer a few questions about the keystones of the CapFusion culture:
How did your previous experience as an entrepreneur help inform the culture you all have developed at CapFusion?
BA: Before we launched CapFusion, Ryan, Bret and I had created, incubated and spun off a number of successful businesses. While we had several very strong bank partners that provided us capital for projects, there were a number of times we needed cash quickly for opportunistic moves. Even with a strong credit profile, established revenue and substantial assets, we had difficulty finding a bank that could move at the speed needed to support these businesses. It was apparent a glaring need was going unmet, and we saw online lending as the way to help fill that need — especially when we realized that the existing online lenders were all offering the same products, which don’t necessarily fit most small businesses. Businesses need flexibility and confidence, not a one size fits all solution. So that was kind of the basis for our “let’s find win-win solutions” philosophy, which is very different from our competitors.
What is it about that philosophy that sets CapFusion apart from other online lenders?
BA: Our entrepreneurial backgrounds help us understand the financial and emotional struggle that all small businesses go through. So we see things through a lens that isn’t natural for most of our competitors. Flexibility, perseverance and discipline are of the utmost importance in an entrepreneurial venture. We enjoy and respect the journey of growing a small business and we started CapFusion to support other like-minded entrepreneurs. I see the capital we offer to business owners across the country as not just a loan, but rather an investment in their success.
How does that “win-win” philosophy you mentioned before play out when you’re actually working with clients?
BA: We have built a foundation that combines the efficiency and speed of technology with the consultative approach of a competent financial advisor. Bret and I both came from backgrounds in public accounting, so we bring that sensibility to every funding decision that CapFusion makes. A lot of times a client will come and ask us for a certain amount of money for a loan, and we see that a loan of that size might put a lot of stress on the business’s finances. Most other online lenders would just flat turn them down in that situation. But because we’ve been in the client’s shoes before, we always try to find a way to help them out. That usually means suggesting a loan at a size their business can handle — big enough to get them started taking advantage of an opportunity, but not so big that they’re shouldering a burden too big to manage. Because we genuinely want to help other business owners succeed, we take that extra step to find a way to get them moving forward with their plans.
As you begin considering your options for business capital, you may run across some terms you haven’t encountered before. At CapFusion, we often have clients ask us the difference between a secured business loan and an unsecured business loan.
Let’s take a look:
- Secured business loans require the borrower to offer up collateral, like real estate or equipment. These are the types of loans most often offered by banks, and are frequently more time consuming to apply for because of the need to document and confirm the collateral being put up against the funding. They usually offer lower interest rates than other options because of the collateral requirement. That is, the lender is able to minimize its risk of a loss because it can possess the collateral if the borrower fails to pay on time, and thus charge a relatively low interest rate.
- Unsecured business loans, like those offered by CapFusion, don’t require borrowers to put up any collateral. The fees associated with these loans tend to be somewhat higher than secured loans, but the application process is much less difficult and funding can be delivered in days in most cases, as opposed to weeks or months. What’s more, the approval rate for these loans is multiples higher than with most bank loans. Such loans are an excellent option for businesses looking for a fast, responsive lending partner, or those who are looking to establish credit.
If you’re ready to fund your vision for your business’s next step, contact one of our business analysts today. You’ll notice the CapFusion difference right away.
Navigating all the borrowing options at your disposal can be a confusing challenge for business owners seeking financing for the first time.
One of the key decisions business owners have to make up front is whether to pursue a business loan or a business line of credit. Here are the key differences between the two and the advantages of each:
- A business loan is generally granted for a particular purpose — often a capital expense that will help contribute the overall growth of the company. Loans are frequently used for inventory, equipment or personnel expenses that are part of a business’s expansion plans.
- A line of credit, on the other hand, is more typically used to help businesses weather unexpected short term financial shortfalls, like trouble making payroll. It’s essentially like having a credit card, or the ability to overdraft on your bank account. Many businesses seek a line of credit before they have need for it as a safety net.
- The key advantage of a business loan is that it’s terms are fixed; that is, once you get a loan, you know what your monthly payment will be and can budget for it accordingly. (And if you work with CapFusion, our analysts will help ensure you are taking out a loan that won’t put a financial strain on your company).
- Lines of credit, on the other hand, usually have variable rates, which can be risky if business owners aren’t sure they’ll be able to make payments on time or have problems keeping within their credit limit.
- Most business advisors recommend owners pursue loans when they have a specific business initiative they want to fund. Lines of credit, on the other hand, can sometimes be better for financing unexpected short term costs.
If you have more questions about the difference between a business loan and a line of credit, don’t hesitate to reach out to one of our analysts. We always love talking to business owners looking to take their companies to the next level.
After working with dozens of owner-operator drivers, we at CapFusion have developed a deep understanding of what it takes to be successful in the trucking industry.
One of the things we’ve learned is that about the only certainty in the trucking world is that something you haven’t planned for is always just around the corner: Your rig might break down and need an expensive repair. You might get presented with a major contract and need to add another truck to fulfill it.
No matter what, the trucking business moves quickly, so your window to act in these kind of situations is narrow. So we understand why so many people in the business find themselves looking for a trucking loan.
Here’s one thing we know for sure: When that day comes, you’ll want a lending partner who is able to get you the funds you need quickly and affordably.
Because CapFusion has a deep history working with trucking professionals, we’re able to quickly and accurately assess applications from trucking companies to help them meet their funding needs. In fact, our trucking industry clients are some of our biggest fans. Just take a look at what one client in upstate New York had to say.
When you work with CapFusion for a trucking loan, we guarantee that:
- We’ll respect your time, and get your application processed and a decision back to you as quickly as possible.
- We’ll look for a way to say “yes,” and find a win-win loan situation for you and CapFusion.
- We’ll get your funds to you when you need them, so you can get back up and running.
If you find yourself in need of funding to help you get back out on the road or to grow your trucking operation, let us know — we always love talking to trucking pros.
For many business owners, the first few years of operation are a grind to establish a foundation and build up solid operational revenues. But once that base has been built, business owners will often look for a small business loan to help take their company to the next step.
If you’ve been asking yourself, “So, just how do I get a small business loan?” CapFusion would love to help.
Generally, small business owners have three options for funding:
Traditional bank loans: For decades, this was the most turned-to option for small business financing. But in recent years, stricter lending guidelines and increased processing time have made this option increasingly problematic for many businesses. Small business owners often find that banks can’t offer them loans like they used to, or that they have to wait so long for the funding decision to come through that the business opportunity they were interested in pursuing has passed.
SBA loans: SBA loans are sometimes a good alternative for small businesses who don’t qualify for traditional bank loans, but they have their drawbacks. The benefit of SBA loans is that they have less strict approval standards than traditional bank loans. But the reason they have those lower standards is that a part of the loan is guaranteed by the U.S. government, which reduces the risk for the banks that actually make the loans. So while these loans can be easier to qualify for, they often take a long time to process, and the business owners who get them have to deal with the bureaucracy of both the bank they’re working with and the government.
Direct loans: Direct loan companies like CapFusion came about in the wake of the financial crisis, when increasingly strict lending regulations made it harder and harder for businesses to get bank loans. In addition to lower qualification requirements for approval, direct loans have the benefit of minimal bureaucracy and fast turnaround times. In fact, in almost all situations, CapFusion can get loans approved and funds delivered in just a few days.
Regardless of which option you decide to pursue, it’s important to have basic information about your personal and business credit as well as your most recent bank statements on hand before you start applying for a business loan.
If you have questions about how business loan applications work, don’t hesitate to speak with one of our loan analysts — we always love hearing from business owners looking to make their companies grow.
Business owners looking for a loan for the first time are often confounded by the wide array of lending options available to them. From traditional bank loans to merchant advance providers, it can be difficult to determine what the right choice is for you and your situation.
Because many people look for an alternative after being turned down for a traditional bank loan, we frequently work with clients who are considering both a direct online lender, like CapFusion, and a U.S. Small Business Administration loan (or SBA loans, as they are usually called).
We’ll walk you through the similarities and differences between SBA loans and SBA loan alternatives like CapFusion to help you make a decision about which would be the best fit for your company.
SBA loans vs. SBA loan alternatives: How they’re similar
Both direct loans, like those offered by CapFusion, and SBA loans were established to provide a lending option to companies that don’t meet the increasingly rigorous standards for traditional bank loans. So businesses that have smaller annual revenues than banks require or imperfect credit are good candidates for each.
How they’re different:
The SBA doesn’t lend money directly to borrowers. Instead, it guarantees a portion of the loan to help reduce the risk for the banks and other SBA-approved lenders who actually provide the funds. So when you get an SBA loan, you’re working not only with the government, but often times also a traditional bank.
While the loans are easier to get than most traditional bank loans, the application process can still be overwhelming (see this loan application checklist from the SBA and compare it to our stripped down application process).
SBA loan alternatives like CapFusion, on the other hand, loan money directly to clients. As such, the application process is much simpler with fewer hurdles to jump over and the process for actually delivering the funds is faster and more streamlined.
If you’re comparing an SBA loan with a loan from CapFusion and have more questions about how the options differ, don’t hesitate to contact us. We’re always happy to meet new small business owners and help them get their businesses where they want to be. Our phone number is (816) 888-5303 — give us a call any time!