Finance & Lending

 

01 13 2015

Small Business Loan Repayment Options Improtant

01 13 2015

The Importance of Repayment Options

When it comes to obtaining working capital, chances are the No. 1 thing on your mind will be exactly how much money you can acquire. However, the money borrowed is only one small piece of the business loan puzzle.

Chief among the other factors to focus on is how the money will be repaid.

Repayment options affect all aspects of a loan

When you take out a small business loan, you’re entering into an agreement to repay the funds borrowed. How this repayment process is structured can significantly impact your financial situation and mean the difference between a streamlined arrangement and a burdensome debt obligation.

Factors to consider when it comes to repayment include term length, payment amount and interest.

Term lengths determine how long you have to repay your loan. The longer the repayment period, the smaller each payment will likely be. However, longer repayment periods also mean more time for interest to build on the money you’ve borrowed. So while you may have smaller, more manageable payments, you’ll also end up paying more money over a longer period of time.

The amount of your monthly payments, which will generally be influenced by term length, is important to keep in mind. Monthly payments that are too large to manage will leave you with depleted cash reserves and a taxing debt obligation hanging over your head. In the worst case scenario, you may simply not be able to keep up with the payments, leading to a default on the loan and potential loss of your business.

Finally, remember the role interest plays in repayment. The higher the interest you’re being charged, the faster you’ll want to pay off your loan. More interest means more money spent, and even smaller loans can end up costing a fortune if the interest charged on them is too high.

Choosing the right loan

It’s for these reasons that you should borrow from a lender who offers flexible repayment options suited to the needs of a small business owner. Banks and other traditional lenders have only become stricter in their qualifying standards and repayment guidelines, but alternatives do exist.

Lenders like National Funding can provide you with a wealth of borrowing options that feature variable payment terms.

Besides flexible repayment terms, National Funding loans also come with minimal paperwork and the opportunity to obtain cash in as few as 24 hours.

In addition to working capital loans, merchant cash advances also provide you with no restrictions on usage and no pre-payment penalties. This means you can eliminate your debt obligations faster without the risk of incurring extra charges.

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Terms & Conditions

General Acceptance

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 

US Patriot Act:

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

 

For Loan/Merchant Services:

The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.

 

For Equipment Services:

I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.

 

Text Messaging:

By providing my wireless phone number to National Funding, Inc., I agree and acknowledge that National Funding, Inc. may send text and multimedia messages to my wireless phone number for any purpose. I agree that these text or multimedia messages may be regarding the products and/or services that I have previously purchased and products and/or services that National Funding, Inc. may market to me. I acknowledge that this consent may be removed at my request but that until such consent is revoked, I may receive text or multimedia messages from National Funding, Inc to my wireless phone number.

  
The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant has the capacity to enter into the binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. If for any reason your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please write to National Funding Inc., 9820 Towne Centre Drive, San Diego, California 92121. Funding amount and credit approval is subject to a full credit profile review.