FAQ

FAQ

business loan questionsWhen it comes to business financing, loans, and leasing, there are plenty of questions to be asked. We have compiled a list of common questions. If you have a particular question, feel free to contact us.

What happens after my application is approved?

What you need to know about American Business Credit?

How long does the process take from start to finish?

How secure is my information?

When will my first payment be due?

How soon will I know if I pre-qualify for a loan?

How does it work?

What qualifications do I need for this loan?

What kind of documentation will I need to provide for verification?

I have limited credit history, can I still apply?

What if I have bad credit or a bankruptcy? Can I use a co-signer with good credit?

How much am I eligible to borrow?

Is there any pre-payment penalties for paying my loan or line of credit early?

What is the difference between using American Business Credit and applying with the lenders yourself?

What are the interest rates on these loans or lines of credit?

Is a Line of Credit much better than a loan?

What qualifies as a Business Loan?

What happens after my application is approved?  

You will have an opportunity to review the rates and terms and make a decision whether to accept or reject the loan offer.

What you need to know about American Business Credit?

We are a nationwide business financing consultant based in St Petersburg, Florida that specializes in Unsecured Loans and Lines of Credit for start up businesses and seasoned businesses. At American Business Credit, we understand that life can be unpredictable. That’s why we offer a quick and convenient application process so you can get the money you need and when you need it.

How long does the process take from start to finish?  

Once you meet all the credit requirements, you receive approvals within 48 hours or less depending on how responsive you are. You can receive your funding in some cases in as little as 3 days after approval.

How secure is my information?  

Once you submit your application it is encrypted for transmission using state of the art 256 bit encryption. Also all the application pages will display the “secure icon” in your browser indicating that the information you entered is transmitted securely. Finally, at American Business Credit the privacy and security of your personal information is our top priority.

When will my first payment be due?  

Usually your first payment will be due approximately 45 days after you receive your money.

How soon will I know if I pre-qualify for a loan?  

If you applied during our business hours M-F 9:00 a.m. to 6:00 p.m. (EST) you should receive a call from a loan consultant within a few hours to review your borrowing potential.

How does it work?  

Complete a simple and confidential application. We conduct a credit analysis and present you with your borrowing potential.

What qualifications do I need for this loan?  

Your qualification for this loan is based primarily on your positive and responsible credit history and ability to repay the loan. Good to excellent credit is necessary and it will improve your chances of qualifying. Qualification is also based on your ability to repay the loan.

What kind of documentation will I need to provide for verification?  

American Business Credit’s streamlined process minimizes the number of documents required. The actual documents you will need vary based on your situation.

I have limited credit history, can I still apply?  

We prefer you have 3 active trade lines for 36 months or longer on your credit. However, depending on your income and the credit you have established you may qualify for a minimal amount for one of our programs.

What if I have bad credit or a bankruptcy? Can I use a co-signer with good credit?  

If you had a bankruptcy it has to be 10 years or older. Yes you can have a friend or relative with good credit apply for the loan.

How much am I eligible to borrow?

The amount of money you can borrow depends on many factors, mostly on the strength of you current credit history, previous credit limits, income, residence status, business gross sales, time in business, just to mention a few.

Is there any pre-payment penalties for paying my loan or line of credit early?

No. American Business Credit only works with credit providers that do not charge a pre-payment penalty. Full disclosure on this subject will be provided by the lender before you accept the loan.

What is the difference between using American Business Credit and applying with the lenders yourself?

We’ve built and maintained a database of lenders and their loan programs so that your applications get approved the first time and you get the most money you can qualify for. Also, we save you time and help you avoid the biggest mistake of applying on your own, which is applying with the wrong lenders and in the wrong way, getting too many inquiries on your credit report so that no other lender will approve you even with perfect credit.

What are the interest rates on these loans or lines of credit?

The interest rate varies depending on your unique credit situation and the lenders and products that may be available to you.

Is a Line of Credit much better than a loan?

A line of credit much better for the start-up phase, the payments are lower and it gives you more flexibility to charge and pay back as you please.
Monthly payments on Lines of Credit will be 1% to 2% of the outstanding balance, so if you borrow $50,000 your monthly payments would be between $500 and $1000 per month, a good part of which will be principal, and another part interest, depending on your interest rate.

Monthly payments on Loans will vary depending on the term of the loans, which can vary from 24 to 84 months.

What qualifies as a Business Loan?

A true business loan requires a minimum 24 months in business with average gross sales of $150,000 or higher. Generally 90% or more ownership will be required to guarantee the loan and the personal credit of the guarantors must meet the requirements for this type of loan. Although business credit does play a role in your approvals, ultimately the deciding factor is the personal credit of all owners.

American Business Credit offers a Start-Up loan program that funds from $10,000 ot $100,000 for those business’s who have not hit the 2 year mark or have not attained $150,000 in gross sales.

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