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The questions that reach Allodial Resources most, answered briefly, and the address to use when yours is not among them.
Factoring is not a loan at all, it is selling your unpaid invoices to a company at a discount for immediate cash, and the amount you can raise scales with your receivables rather than a fixed credit line. It suits businesses with slow paying customers more than businesses with no receivables at all.
Most banks want a personal credit score of 660 or higher for a traditional line of credit, though online lenders will work with scores in the low 600s at a higher rate. Time in business and revenue usually matter as much as the score itself.
Two to three years of business tax returns, recent bank statements, a profit and loss statement, and a debt schedule if you already carry financing. Having these ready before you apply is the single biggest thing that speeds up approval.
A bank term loan usually takes two to six weeks once your documents are complete, an SBA loan often runs six to twelve weeks, and online lenders can approve and fund within a few days. The bottleneck is almost always how fast you can produce complete financial documents, not the lender's internal process.
For most loans and lines of credit under a few hundred thousand dollars, yes, especially for a business without several years of strong financials. Some equipment financing and larger established businesses can avoid one, but it is the exception, not the rule.
Rarely, and usually only as a short bridge when every other option has already been exhausted and the cost is fully understood in advance. The effective annual rate on most advances runs well above what a line of credit or even a credit card would charge.
Some outbound links on this site are commercial and that is disclosed in our editorial policy, but a recommendation does not change wording because of a commercial relationship. If a lender or product is not worth it, we say so.
Write to [email protected] and ask. Questions that arrive more than once usually end up as an article, and the ones that arrive often end up on this page.
The blog archive is a good start, or look at the about page first if you would rather understand how the site is laid out.
