U.S. Business Funding is an online business lender that specializes in equipment financing, working capital loans, and SBA loans. They provide anywhere between $10,000 to $2 million in capital, and can process some types of business loans in as few as seven days. Once they have all your paperwork, they can get you cash in as little as 24 hours.
Providing small business financing since 2004, U.S. Business Financing‘s objective is to serve both growing and established companies across every industry.
They’re a member of the National Equipment Finance Association and have an A+ Better Business Bureau rating. Plus, U.S. Business Funding is an approved SBA lender, so they’re able to grant loans from multiple SBA loan programs to small business owners.
U.S. Business Funding offers three loan programs for small business owners:
They also offer a vendor financing solution, which is nice for retail business owners who want to allow their customers to buy things on credit. Considered as a whole, these programs offer the following terms:
Let’s take a closer look at the details of their three main programs.
U.S. Business Funding’s equipment financing program can fund up to 100% of a piece of equipment that your business needs to buy to grow.
If you choose to seek equipment financing through U.S. Business Funding, or through any lender for that matter, then the equipment that you buy with the financing will act as collateral for the financing. Because you’re able to secure the financing without offering any other assets as collateral, equipment financing is a form of self-secured funding. This can also make it easier to qualify for if you have less-than-stellar business financials.
U.S. Business Funding offers equipment financing for a wide range of new and used equipment, including manufacturing equipment, computers, furniture, and commercial vehicles. They provide leases, which are a little different from equipment loans. With a lease, you basically rent the equipment for a specified period of time and typically have the option to purchase the equipment at the end of the lease.
Here are the types of equipment leases that U.S. Business Funding offers:
A fair market value, or FMV, lease lets you rent equipment for low monthly payments, with the option to either turn the equipment back to the lessor at the end or purchase the equipment for the market value. This is a good option for equipment that rapidly declines in value.
A dollar buyout lease, also called a capital lease, lets you rent equipment over the term of the lease, with the option to buy the equipment at the end for a nominal amount of $1. This is similar to a traditional equipment loan and usually has a higher monthly payment than an FMV lease.
A wrap lease from U.S. Business Funding helps you consolidate financing for multiple pieces of equipment under one lease.
A sale leaseback allows you to sell equipment that you own to U.S. Business Funding and lease it back from them. This is a good option if you want to free up some cash that’s tied up in your equipment.
U.S. Business Funding also offers working capital loan products with the following terms:
U.S. Business Funding offers products ranging from terms loans and lines of credit to merchant cash advances. One thing to note about merchant cash advances: While they’re typically easier to qualify for, they are an incredibly expensive form of debt. You will obtain an advance from the lender and then pay them back with a percentage of your daily card sales. Sounds good, but this can really eat into your daily cash flow. Plus, interest is calculated in terms of a factor rate, which can mean you’ll wind up paying back significantly more than you borrowed.
To qualify for U.S. Business Funding’s working capital loan products, you should meet the following requirements:
If you meet these minimum requirements, you should be able to qualify for one or more of U.S. Business Funding’s working capital products. They do point out that business revenue and time in business are more important than personal credit, so you can apply even if you don’t have a great credit score.
The final form of small business loan that U.S. Business Funding offers is SBA loans. These loans can offer the longest repayment terms, the lowest interest rates, and the largest loan amounts on the market. That’s because the Small Business Administration (SBA)—a government entity—provides a partial guarantee for these loans.
In other words, the SBA promises to pay back part of the loan if you default. This lowers the risk for lenders, making them more likely to loan money to small businesses and more likely to grant them favorable terms.
U.S. Business Funding participates in the SBA 7(a) loan and the SBA 7(a) Express loan program, which both offer funds for commercial real estate financing, working capital, and debt refinancing. The 7(a) Express offers faster approval and processing than the traditional 7(a) loan.
No matter which lender you go to, SBA loan rates and terms are pretty uniform across the board, because they’re regulated by the SBA.
Under the SBA’s rules, here are the terms for traditional SBA 7(a) loans:
Here are the terms for SBA 7(a) Express loans:
SBA loans are an excellent product for small business owners because of their high loan amounts, low interest rates, and long repayment terms.
Every participating SBA lender has their own specific eligibility requirements, but in general, qualifying for an SBA loan is difficult. You have to be highly creditworthy, and lenders typically expect the following:
If you meet these criteria, you still have one more step before submitting your SBA loan application. You’ll need the following documents to apply:
Remember, if you’re interested in an SBA loan, U.S. Business Funding is just one lender you can apply with. A multitude of large and small banks offer this loan product, and at Fundera, we can help you through the application process.
If these products sound right for your small business, but you’re not sure U.S. Business Funding’s terms do, there are dozens of small business lenders who offer all types of business financing products that may be a better fit.
Here are your top alternatives to U.S. Business Funding’s three types of small business loans.
Looking to finance a piece of equipment for your small business? A good alternative to U.S. Business Funding is Funding Circle. This lender offers similar terms to U.S. Business Funding but requires less paperwork for larger loan amounts.
If you decide to finance equipment through Funding Circle, you’ll be able to access the following loan terms:
Qualifying for equipment financing with Funding Circle is a little bit harder compared to qualifying with U.S. Business Funding. But the flip side is that creditworthy businesses might be able to land a better interest rate.
Here are the minimum eligibility requirements for getting equipment financing through Funding Circle:
If you meet the minimum requirements, you can apply and get funding in as few as 24 hours.
If you found U.S. Business Funding in your search for working capital, then you should definitely check out other options to see how they stack up. Your top alternative to U.S. Business Funding and their working capital loans is the lender BlueVine.
BlueVine can offer your small business two types of working capital loans: an invoice factoring product and a business line of credit product (which they call Flex Credit).
With invoice factoring, BlueVine will free up your cash flow by buying your business’s outstanding invoices at a discount. With a business line of credit, BlueVine will extend your business a credit limit from which you can draw on as needed and pay off gradually.
BlueVine’s invoice factoring product is for B2B businesses that invoice their customers. Through this type of working capital source, BlueVine will buy your business’s outstanding invoices and provide the following terms:
To access BlueVine’s invoice factoring, you’ll need to check off a few boxes.
Make sure you fulfill the following requirements before you apply:
BlueVine also offers a revolving line of credit that’s available to a wider range of small businesses. If you are not a B2B business or don’t invoice customers, this is a more flexible product that might work for you.
The terms on BlueVine’s line of credit are as follows:
Remember, BlueVine’s line of credit is a revolving credit product. That means that once you pay back the money you draw, your credit line will reset to the original amount and you can draw from it again.
These terms will only be accessible to business owners who fulfill a few minimum requirements.
Before you apply for BlueVine’s line of credit, make sure you have these qualifications:
If you and your business have these minimum requirements covered, then the final step before applying is gathering the necessary paperwork:
Whether you choose to apply for invoice factoring or Flex Credit, BlueVine can fund your application in as few as 24 hours.
As we mentioned, there are many financial institutions that offer SBA loans. One of the top options for SBA 7(a) loans is Wells Fargo.
Wells Fargo is one of the best banks for small business lending, providing tens of billions of dollars in small business loans each year. As of the last update of this article, their SBA loan volume makes them the second-most active SBA lender for 7(a) loans, with over 3,100 loans approved and an average loan amount of $249,728.
Plus, Wells Fargo is part of the SBA Preferred Lender program, meaning they can push your application through faster than non-preferred lenders.
Keep in mind, if Wells Fargo is not the best choice for your business, this guide to the best SBA lenders can help you find the one that is.
As we mentioned, the SBA regulates the terms for these loans, so you can expect similar terms no matter which financial institution you work with.
Once again, here are the terms for traditional SBA 7(a) loans:
To be eligible for an SBA loan, your business must:
U.S. Business Funding solutions could be the perfect option for you and your small business. But before committing to any lender, you should do your research and compare all your options. There are dozens of lenders who provide equipment financing, working capital, and SBA financing. During your research process, make sure you compare the lenders in terms of loan amounts, repayment terms, the application process, and of course, cost. At the end of your research, you’ll be equipped to choose the best lender for your business.
And if you need help streamlining the process, Fundera makes the business loan application easier by working with lenders to find your best funding options.