Corporate Capital | Supply Chain Finance

By | Funding

Are You Having Supply Chain Issue and Need Cash Fast?

Shortly after the COVID-19 pandemic outbreak, businesses began suffering the effects of supply chain shortages.

Shipping containers became relatively scarce during periods of economic strain and uncertainty. When you factor in closed ports, fewer port workers, and a trend toward lean inventories before the pandemic began, it’s clear why shortages occur.
Many factories around the world slowed down in response to rising COVID-19 cases. They’ve also been dealing with repeated lockdowns and even when open, production was slow since fewer workers were generally available due to illness or quarantining upon exposure.
So what’s the solution for these small businesses suffering from a lack of materials and a lack of cash? You can look for alternative financing, or better yet, ramp up cash flow for work that’s already been done with invoice funding options.

Welcome to invoice funding

With on-demand cash, you can bypass other vendors needing materials from your supplier by being able to pay first, or even before receiving your shipment. If you can’t get approved for bank financing, or don’t have time to go through the months-long approval process, there are plenty of alternative finance options available. Invoice funding is one of the simplest because it uses cash you’ve already earned.

Instead of waiting on long payment terms, you can receive cash for your invoices in days (less a fee) – instead of months. Then your customer pays back the factoring company according to the original payment terms. Being first in line for supplies is critical to maintaining a product-based business in the face of supply chain shortages. This type of business loan is also sometimes known as accounts receivable financing or invoice discounting.
What is supply chain finance?

Supply chain finance (or ‘supplier finance’) is a type of cash advance similar to invoice finance and based on the credit rating of companies in the supply chain. It’s a way for smaller businesses to benefit from the higher credit scores of their buyers and for buyers to lengthen their payment terms

Supply chain finance is a mutually beneficial operation for both buyers and suppliers. It helps both parties stabilize their cash flow. It’s a collaborative process — the lender helps both the buyer and the supplier, and all three parties have an arrangement together. That’s why supply chain finance is not the same as invoice finance, even if it might seem similar from the supplier’s point of view.

Why your business needs supply chain finance

Companies that don’t use supply chain finance often suffer from poor working capital performance, reduced working capital strategies, poor supplier relations and delays caused by manual processes

Companies that utilize modern supply chain finance solutions can thrive because they are able to extend payment terms and hold on to cash for longer. Those who continue to succeed also leverage multiple financing options and who are making digital the default where with a modern supply chain finance platform suppliers and buyers can all view and understand who has been paid and what the discount is.

The physical impact of stressed supply chains is now hitting many businesses hard and is likely to do so well into 2022. A cash flow crisis is likely to follow in the next six-12 months as margins are squeezed leaving businesses with shortfalls in working capital.

Businesses must forecast, plan, and speak to lenders now if they see any financial challenges ahead.

Types of invoice finance

There are two types of invoice financing available to businesses; invoice factoring and invoice discounting, which give businesses the freedom to choose how much control they have over their finances.
Invoice factoring is the product where a lender is most closely involved. They will provide ‘credit control’ services to ensure your customers pay on time, which could be exactly what you need to focus more on your business, instead of chasing late-paying customers. Note that your customers will know you’re using a factoring provider. A plus is that Factoring providers can credit check potential customers for you.
Invoice discounting is when you do the credit control for any payment made to your account. It’s the most straightforward form of invoice finance but can also be more time-consuming. Invoice discounting is generally available to more established businesses with higher turnover.

Accessing invoice financing

Invoice financing is usually offered by online lenders and fintech companies. Compared to other types of business loans, banks are less likely to provide invoice financing.To apply for invoice financing, you may need to provide basic information about your business, business bank statements, business financial statements, invoices you’d like to finance and personal and business credit scores.

Interest Rates are Rising Fast, Learn How You Can You Lock Your Interest Rate Today

By | Funding

Right now, Federal Reserve data suggests that banks provide business loans at interest rates ranging from 2.54% to 7.02%. This variation of interest rate percentages is due to several factors, which we’ll take you through as you read on.

If you’re a small business owner, you should spare some time to learn and understand loan costs for small businesses. Doing so will allow you to pick the loan options that are best suited for your business, which can provide not just much-needed financing, but also help you save money.

Factors that affect business loan interest rates

The interest rate you pay on a business loan refers to the money charged by a lender. For a money lender, financing is a service. So you can think of the interest rate as the service fee you have to shell out to avail of the service. Typically, business loan interest rates are affected by the following factors:

  • The type of lender: For small business loans, you can approach not only banks but various online lenders as well. If you don’t want to pay a lot of money as interest, it’s best to consider the small business loans offered by the banks. However, while banks offer loans at low-interest rates, qualifying for their loans can be a challenge. On the other hand, it’s easy to qualify for loans offered by online lenders, but the interest rates are significantly higher compared to those charged by banks. Interest rates for online business loans typically start from 7% and can go up to a whopping 99%.
  • The business owner’s financial situation and credit history: The interest rate you are charged by a bank or an online lender will also depend on your current financial situation and your credit history. If the lender comes to the conclusion that you are a risky borrower, expect to be charged a higher interest rate.
  • The type of loan: Interest rates also differ from one type of loan product to another. Loan products specifically designed for small businesses include Small Business Administration (SBA) loans, business line of credit, business term loans, short term loans, accounts receivable financing, merchant cash advance, and more. If low-interest rates are your priority, you should consider SBA loans, which charge 5.50% – 8% interest. You can pick from three types of SBA loans – 7(a) loans, 504 loans, and Express loans. 7(a) loans are the most popular, while 504 loans are typically used by businesses to fund projects. Express loans involve fast application reviewing and rapid financing, which is ideal for the times when you need a quick injection of funds into your business.
  • Business collateral: Securing loans with collateral typically results in better interest rates as it is effective risk mitigation for the lender. If you fail to repay the lender, it can seize your assets.

While these are the most important factors that affect business loan interest rates, other factors might come into play as well, such as:

  • The total sum of money you borrow from a lender
  • The conditions of the market
  • The repayment period length

Do small business loans have fixed or variable interest rates?

Some small business loans have fixed interest rates, while others’ interest rates are variable. In terms of ease of repayment budgeting, it’s better to opt for a loan with a fixed rate, as the monthly payments and interest rates are not subject to change. For instance, lump-sum term loans, which are ideal for long-term financing requirements and one-time purchases, have fixed rates.

Loans with variable interest rates typically have low rates of interest initially compared to loans with fixed rates. This can make such loans appealing. However, the catch is that the interest rates tend to go up with time. Of course, that might not be the case and the interest rate may go down as well. All in all, these loans are unpredictable as their interest rates are tied to a fluctuating underlying index, which makes for tougher budgeting.

An example of a small business loan that has a variable interest rate is a business line of credit, which involves borrowing money and repaying it continuously, similar to a credit card. If your business doesn’t require a fixed amount of money, this type of loan can be quite effective for boosting short-term working capital or securing funds during an emergency.

Types of loan fees

Borrowing is made more expensive due to loan fees, which are upfront fees charged by lenders. The amount you have to shell out to pay them depends on several factors such as loan size and loan type. credit score, and repayment term length. It’s the responsibility of the lender to maintain transparency regarding the loan fees and what they cover.

The following loan fees may be charged by lenders when providing small business loans:

  • Origination fees, which refer to the upfront fees that lenders charge to process new loans
  • Closing fees, which are associated with loan servicing, such as a business valuation
  • Underwriting fees, which are charged by underwriters who are responsible for verifying and reviewing documents such as tax returns, personal bank statements, and other financial statements
  • SBA loan guarantee fees, which range from 0% – 3.75% on the basis of loan size

Comparing business loan rates: The best way

Comparing the annual percentage rate is the best method to come to a conclusion as to the loan that’s best for your business based on its requirements. The annual percentage rate is inclusive of the interest rate and additional loan fees.

At Corporate Capital Direct, we understand that the variety of loan products in the market can make it confusing for small business owners. This understanding has led us to provide financing solutions to small businesses that need them most. Simply apply for financing without upfront fees and minimal paperwork, tell us your story, and we’ll evaluate your situation and get you funded within 24 hours – it’s that simple.

So, if you want your business to be matched with the best business lenders suited to fulfilling your requirements, get in touch with us, and get financed.

A Guide to Financing Your Business After Coronavirus

By | Funding

We all felt the devastating effects of the COVID-19 pandemic. Across the country and the world, businesses closed their doors, workers were laid off, and life as we knew it came to a standstill.

For small businesses, the effects of the pandemic were particularly harsh. Many small business owners reported losing most if not all of their revenue. In some cases, businesses were forced to close their doors permanently.

If your business is in need of financial supplementing as a result of the pandemic, there are a few things you can do.

Finance your business post Corona Virus:


1. Assess your financial damages and needs moving forward

Before you do anything on this list, you need to evaluate your current situation. Compare your business’ revenue from before the pandemic to your revenue now. What are the areas where you have seen the biggest decline? Which specific services or products are no longer in demand? Use hard numbers and data to figure out your damages.

In addition, take a look at your future needs. What do you think your business will need in order to recover and get back on its feet? Will you need to hire new employees? Will you need to purchase new equipment or inventory? Make a list of all the things your business will need in order to rebound and financially.

All of this will help you to determine how much money you will need to keep your business afloat moving forward. This could include costs such as salaries, rent, inventory, and marketing.

2. Apply for PPP Loan forgiveness

During the height of Coronavirus, the PPP loans offered up to $10 million from banks and other lenders; The loans can be reimbursed by the federal government if your company spends most of the money on the payroll within a given period of time.

Now, in the waning of Coronavirus, there are some steps that you should take if you were among those businesses which applied for a PPP Loan, either in the first or the second round. You essentially need to make sure that you apply for loan forgiveness.

First and second round PPP loans qualify for full loan forgiveness given that the following requirements are met within the 8–24 week period covered following loan disbursement:

  • Employee and compensation levels are kept consistent.
  • The funds are spent on payroll expenses and other legitimate expenditures.
  • At least 60% of the money is spent on employee salaries.

How to apply

  1. Determine whether your lender participates in SBA direct forgiveness and fill out the proper form. If your borrower is participating in direct forgiveness, you must use the SBA forgiveness portal. If your lender is not participating, you must apply through your lender.
  2. Compile all documentation. This includes payroll (bank account statements, tax forms, payment receipts, canceled checks, etc.) and non-payroll (business mortgage interest payments, covered operations expenditures, etc.).
  3. Submit the forgiveness form.
  4. Monitor your application for forgiveness. Once your application has been taken for review, you will be notified. You have the right to appeal this decision if it’s not approved.

As you can see, this is a very logical process as a whole, but there are a lot of extra details when it comes to which documentation is required. For this reason, it may be helpful to seek the help of experts on business loans.

3. Document EIDL Loans correctly

The EIDL Loan is a government-backed low-interest loan. Because it’s a government loan with unusual perks, the government must be sure that the money is spent appropriately. This basically means that your EIDL loan includes accounting and recordkeeping requirements that you may not be aware of.

For example, the section of the EIDL agreement known as “Books and Records” sets your bookkeeping and recordkeeping duties such that you should keep accurate records for the last five years of operation.

Let’s get into exactly what this means.

1. Maintain current records for the following

  • Financial and operating statements
  • Insurance policies
  • Tax returns and related filings
  • Records of earnings or dividends distributed
  • Records of compensation to owners or shareholders

2. Allow the SBA to conduct inspections or audits on the following

  • Books
  • Records
  • Business assets

3. Within three months of the conclusion of your fiscal year, deliver SBA financial statements.

4. If requested by the SBA, get a review of financial statements from an independent public accountant.

5. Allow federal, state, and municipal authorities to submit relevant papers to the SBA if requested by the agency.

How to meet these requirements

Now that you know what is required of you, it’s important to understand how to meet these requirements. Generally speaking, this will involve good recordkeeping practices and bookkeeping methods which will allow you to keep track of your business’ financials on a monthly, quarterly, and annual basis.

More importantly, it is crucial that you track and categorize all of your business’s expenses. All receipts should be kept in an orderly fashion so that you can account for all money spent on the business.

Next, you may find it useful to seek the help of financial advisors, particularly those who specialize in loans for business. These professionals can help you to stay in compliance with government regulations while also ensuring that you are making the most of your EIDL Loan.

Although government regulations surrounding EIDL Loans can be confusing, it is important to understand and comply with them. By doing so, you can ensure that your business is financed in a way that is both responsible and advantageous.


Now that you are aware of the steps you should be taking to protect and finance your business, you can relax a little bit and breathe a little easier. Remember, the most important thing is to keep your business running as smoothly as possible during these uncertain times.

With a little bit of organization and planning, you can make sure that your business is well-equipped to handle anything that comes your way.

Contact Corporate Capital Direct today for expert advice on all things business loan-related. We are happy to help you every step of the way as you navigate these uncharted waters.

5 things to know about merchant cash loans

By | Funding

Merchant cash loans are a form of working capital or liquidity that small businesses can fund operations. They fall into two basic categories: Merchant Cash Advances and Merchant Loans.

  • Merchant cash advance companies extend credit to small businesses by advancing funds based on the business’s anticipated future sales. Suppose a business is approved for a merchant cash advance; in that case, it means that the merchant cash advance company believes you will be successful in making sales, generating the revenue necessary to pay back the loan.
  • Merchant cash loans are extended by merchant services providers, which means that merchants must have an active merchant account with that provider. A merchant takes out a loan for a set period; often, it is repaid via their merchant account or through other future credit card sales.

These two categories are not to be confused with one another.

Merchant Cash Advance Programs:

How Do Merchant Cash Loans Work?

Small businesses looking to acquire merchant cash loans will fill out an application on the merchant’s website. They will review the information, assess their creditworthiness and give borrowers an offer within 24 hours. They’ll then deposit some funds into your bank account (usually $500-$5,000) within four days of signing your loan.

The lender then deducts a “loan-processing fee” from the funds, leaving you with your merchant cash advance. The merchant cash loan money might be in your account within 24 hours of signing up for an installment loan.

You will typically repay the merchant’s cash advance over several months via their merchant account.

Benefits of Merchant Cash Loan

Merchant cash loans are an excellent option for small business owners who need short-term funding to help run their businesses. For this financial process, you sell your future credit card sales receipts to a merchant cash advance company in return for immediate payment. This allows you to get the working capital you need without having to wait around while it accumulates.

There are several benefits merchant cash loans provide small business owners. Some of these include:

Fast funding — These loans are rapid. Cash advance companies can often provide you with a decision on your merchant cash loan in as little as 24 hours.

Predictable — These loans tend to be more predictable than other short-term funding options such as factoring and invoice financing, making them an excellent option for business owners who need to protect their cash flow.

Less expensive — These loans tend to be less expensive than other short-term funding options on the market, which can save you money in the long run.

Flexible — These loans provide business owners with the opportunity to choose the repayment terms that work for them.

5 Things to Know About Merchant Cash Loans

Merchant cash loans for small businesses have been on the rise. As a result, cash loan companies have popped up to take advantage of this demand. But will merchant cash loans help your business? Here are five things you should know about them before signing up:

1. Merchant Cash Loans have one purpose

Some point out these loans might seem like a “get rich quick” scheme. However, do not forget these loans have a purpose. With these loans, the amount is paid back with additional fees, so most lenders do not typically consider it as an investment. When you take out a loan, the money should go toward growing your business or allowing you to continue operations without having to close up shop. If you are looking to make a large purchase for your business, look elsewhere.

2. These Loans are Short-Term

The vast majority of cash loans are repaid for months, not years. This means that you should only take out a cash advance if you have immediate needs or help get your business over a challenging period. You will specify the repayment terms in advance, and typically, you will be given an installment schedule to follow when repaying your merchant cash loan.

3. Your Documentation Matters

You must provide documentation. Once approved, you’ll receive the money from the merchant advance company in 1-4 days. For this process to go smoothly, you’ll need to have all of your documentation in order. This includes business licenses, background checks, and monthly/ bi-weekly financial statements.

4. Be careful with Early Repayment

Repayment terms for merchant cash loans are typically the same as on the credit card machine. However, it is possible to pay off your merchant cash loan early in some cases. If this happens, you may have to pay a fee, leading to additional expenses for your business.

5. You Will Need Good Credit

Most of the time, you’ll need a good credit score to qualify for a merchant cash advance most of the time. They tend to be best suited for businesses operating successfully for over a year. If you have less than 12 months of history as a business, it is less likely a company will want to work with you.

Merchant cash loans are a rapidly growing industry. These days, more and more small businesses are turning to merchant cash loans to get money to meet their needs quickly. As a result, many fraudsters out there have jumped on the bandwagon, taking advantage of business owners by offering cash advances with hidden costs and low approval rates.

How Corporate Capital Direct Can Help

To avoid becoming a victim of one of these scams, it is vital that you only work with an established merchant cash advance company. This will ensure that you get the proper support for your future business endeavors. Are you looking to take a merchant cash loan? If so, head over to Corporate Capital Direct and schedule a meeting with our experts. We’ll help you learn more about cash advances and how they can benefit.

Seven Common Business Plan Mistakes

By | Funding

Start-ups are at their most vulnerable when they seek capital. Lenders and investors rightfully scrutinize every detail of the business plan, looking for any sign that the company may fail. With so many things working against start-ups, it’s critical to understand what not to do in a business plan if you want to maximize your chances of success.

Here at Corporate Capital Direct, our goal is to give you the knowledge and tools to achieve success. We’ve put together a list of seven common business plan mistakes that could threaten your funding.

Avoid Common Mistakes:


1) Don’t assume too much, too soon.

Financial projections are an integral part of any business plan. Investors look at them to see how the company will perform over five years and what sort of profits it will generate along the way.

It’s tempting to inflate the numbers in hopes of getting more funding. After all, who wouldn’t want projections that show massive profits and growth? However, this isn’t the way to go about it. Even if you convince investors right now, they’re going to see through inflated projections in another year or two. If you prove unable to meet the numbers you’ve set, your business is going to look incompetent. It doesn’t matter how well-intentioned or innovative you are; investors aren’t going to trust a company that fails to meet its own goals.

2) Misunderstanding your audiences.

It’s important to know exactly who you’re targeting when you create a business plan. You can’t make a plan for sales without centering the people you are selling to! Not every business will appeal to every type of customer, so it’s important to narrow things down.

For example, a company that specializes in selling baby products may want to target young mothers, fathers, and single parents. That way, they can market to people who are most likely to buy their products.

Just identifying your audience is not enough, though. You will also need to conduct research such as primary and secondary market research in order to understand their needs and wants.

When you have a complete understanding of your audience, you are much better off than you would be otherwise.

3) Being uninformed on SBA loans.

SBA loans are one of the most popular types of funding for small businesses. SBA loans are backed by the government, which makes them easier to get than other types of financing options.

SBA loans are not without their own set of challenges, though. For example, SBA loan limits in your area may prevent you from getting the amount you want or need. SBA loans can also come with SBA loan processing fees, which means they’re often more expensive than other options.

Before you take SBA loans, make sure you understand what kind of SBA loan limits and SBA loan processing fees your area offers and how much SBA financing you’ll be able to get. If you are not informed, SBA loan difficulties could end up being a major setback for your company.

So, click here to learn more about SBA loans.

4) Sloppy mistakes.

Mistakes are common in business plans. After all, you’re trying to convey a lot of information clearly and concisely. Unfortunately, these mistakes stand out and make many business plans appear sloppy.

It’s important to check for these mistakes before you show your plan to anyone. One way to do this is to run your business plan through a computer program like Grammarly that will catch mistakes such as grammar, typos, and formatting errors.

5) Failing to focus on your team.

Investors also want to know that you have the right people in place to run your business. The success of your company will depend partly on the people you hire. Investors want to see that you have a team in place that will work hard and help your business grow.

Part of demonstrating the strength of your team is telling the story behind it. A cohesive, experienced team is a major factor in any company’s success; investors want to know how you built it.

You should identify and address any gaps in knowledge or skill amongst your team members and promptly solve them. Explain just how you plan to overcome these and demonstrate that your team is well-rounded, balanced, and ready to take on the challenges that lie ahead.

6) Failure to address competitors

Even if you have a unique business idea, there is almost always someone who has done it before. Even the best businesses in the world face competition, and yours will be no exception.

By understanding your competition, you can do a better job of positioning yourself against them. Your competitors may have strengths that you should avoid or weaknesses that you can exploit.

Failing to research and address your competition in a business plan is a sure way to leave an investor scratching his or her head. It makes you seem unprepared and unaware of the challenges ahead.

7) Being unaware of your distribution channels.

Distribution channels are the methods you’ll use to move your product or service from your company to your customers. For example, if you’re selling clothing, your distribution channels could include online shopping sites and department stores.

Your business model should be clear about how you plan to distribute your product or service, and this should be reflected in the Distribution Channel section of your business plan.

If you fail to include this crucial point in your business plan, an investor may wonder how you plan to move your business forward. He or she will want to be confident that your product or service has a clear path to market.


As exciting as it is to launch your own business, the business plan is often the most daunting part of the process; however, a business plan is also one of the most important parts of launching your own business.

You may want to consider hiring a professional writer or business consultant to put your business plan together for you. That way, it will be done the right way and you’ll know that all of your bases are covered.

Reach out to Corporate Capital Direct today for more information on what to avoid when making a business plan as well as what to include in a successful business plan!

How to Get a Business Loan

By | Funding

Business loans can be issued for almost any business-related need. For example, if you want to start a new business or expand your existing business, many loan options are available at the bank and non-bank lending institutions. The main reason people prefer business loans over other finance solutions is the ease of the approval process. It may vary from one financial institution to another but generally speaking. It takes less time to get approved for a business loan than it would take you to secure an unsecured personal loan or home equity line of credit (HELOC).

Process of getting a business loan:


The Myriad of Options To Finance Your Business


  • There are two types of business loans available on the market at this point – secured and unsecured loans.

Secured business loans involve pledging a valuable asset to the lenders, such as a home or a piece of real estate, if you fail to make your loan payments on time.
On the other hand, unsecured business loans don’t require you to come up with collateral. In this guide, we will focus on the options available for unsecured business loans.

In addition to that, there is another type of financing solution that every small business owner should learn about – invoice finance. It has been used in Europe and Australia for years, but it was recently introduced within North American companies. This form of financing involves factoring unpaid invoices with a positive cash flow. The main advantage of this approach is that there is no need to provide security for the loan. With invoice finance, you only have to focus on your customers and suppliers – what they owe you since there’s a possibility of getting your invoices paid within 24 hours.

Types of Loans

There are numerous ways a bank or other financial institution can help a company grow and expand its business activities. Here are examples of some popular options that can be implemented by almost any type of business:

– Overdraft: This type of loan is also known as trade credit. It is a short-term loan that the company may use to cover its expenses if needed. You will have to come up with collateral if you are applying for an overdraft line of credit. This type of loan is mainly used by small business owners who need cash flow but don’t want to deal with the trouble of opening a new bank account. Thus, they deal with tedious paperwork and multiple withdrawals every time they are lacking money for their daily operations.

– Purchase Order Financing: This is an arrangement between an organization and a supplier where the latter agrees to delay its payment until further notice while still expecting some reimbursement down the road. The purchase order financing agreement must be set up in writing so that both sides have discussed everything they need before signing on the dotted line, thus avoiding any misunderstandings later on.

– Business Credit Cards: There are many options available when it comes to business credit cards. However, most of them come with higher interest rates than one would expect from personal credit cards. On top of that, businesses are forced to pay annual fees every year.

There is no such thing as a free lunch, so it would be wise to avoid business credit cards unless you are sure that you can pay off your balance every month without having to overspend. A great alternative to business credit cards is invoice finance. You can request a cash advance and get paid within 24 hours if the company approves the money and all invoices have been processed correctly. All of this goes towards helping new businesses grow and expand their operations without spending too much time on reports and paperwork.

– Term Loan: This type of loan helps you repay any other borrowed funds with lower interest rates afterward, which makes it incredibly convenient but expensive in the long run. The agreement has to be set up in writing, and it should clearly define the conditions, including whether you are the only signer or if others can benefit from this business loan.

– Lines of Credit: Even though it is somewhat similar to an overdraft line of credit, a good business line of credit doesn’t involve any checks. It offers leeway for future payments without having to worry about adverse effects on your credit score.

There are other examples available, but these above examples should give you an idea of what financing options you have at your disposal when starting with your new business venture. Whichever option works best for your situation will ultimately depend on the amount you need and how much time you want to spend looking into all the details necessary before becoming eligible for the loan.

All you have to do is prepare your paperwork and calculate your budget carefully to prove to creditors that you can pay them back reasonably soon after receiving their money. There are no other requirements, only business-related information that should be more than enough before qualifying for a business loan.

How Corp Cap Direct Can Help You Secure A Business Loan

Corp Cap Direct offers equitable transaction terms, complete confidence, and reliable service to all business owners looking to expand their business operations with the help of a business equity line of credit or other types of financing options depending on your specific needs. Our commitment to providing easy-to-fill-out applications together with fast approval times makes us an excellent choice for any company that needs more money to succeed without waiting too long for funds to come through.

How to secure business funding

By | Funding

It’s one thing to build a business when investors are throwing money at you, but it’s another when you need to go out and raise capital on your own. There is nothing more frustrating than having an idea for a new product or service that would help bring in millions of dollars worth of revenue, only to realize it will be nearly impossible to bring it to life. Luckily, there are a number of different ways that you can secure funding for your business.

Seeking Fundings for your business:


Traditional Business Funding

The first and most common way to secure funding for a business is through traditional business funding sources such as banks, venture capitalists, angel investors, personal funds, etc.

The following are just a few of the alternative ways that you can secure funding for

To see what this looks like, let’s use a real-life example:

Imagine you have an idea for a new product and you want to create it. This product is going to cost $50,000 to build and market so you want to sell 25 of them in order to get enough money back from each sale that you can call the product profitable. So, what do you do?

Banks may be the first place that you turn for this kind of funding, but they will likely be more of a “one-size-fits-all” source. They’ll attempt to secure funding for your business whether you’re a startup or an established operation, and if they can’t help then you’ll be left without that capital that you need to start up your business.

In the past, banks have been the most used source for funding a start-up because it’s been relatively easy to secure funding from these sources. Until Now.

With the prevalence of online options that are more readily available, it may not be advisable to rely on traditional business funding sources. Compared to other options, banks are more of a “follow” process. When you have to contact a bank and apply for a loan, you will be following strict regulations, jumping through hoops, going through red tape, you name it!

Alternative Business Funding

Nowadays, there are a few more alternative business funding sources that you can try. These are funding solutions that are faster, easier to access, and overall better for small businesses that want to get their idea in front of an investor. These may include sources like crowdfunding, angel investors, IPOs, etc.

Here at Corporate Capital Direct, we take a methodical, step-by-step approach to these alternative business funding options, leading you through them rather than forcing you to follow them.

The following are just a few of the alternative ways that you can secure funding for your business.

SBA Loans

An SBA loan can be used to start a business or expand one. It allows small businesses that have been in operation for two years or more to receive loans of up to $5 million, and this includes working capital and asset-based loans. In order to apply for an SBA loan, you must have a credit score of 680+, at least 12 months of business experience, and a complete understanding of your business’s financial history.

SBA Loans are a good choice for small businesses because the process is relatively quick and easy to complete.

The advantages of this loan include:

  • 100% Financing Available for Commercial Real Estate Purchase (Owner Occupied Only)
  • LTVs up to 200%
  • 10 to 25-year terms
  • Rates – WSJ Prime + 2.25-2.75%
  • Loan Amounts – $250,000 to $5,000,000

Cash Flow Based Term Loans

A cash flow-based term loan is one of the best possible sources for your funding because it’s tailored to your business’s needs. There are no restrictions on how you can spend your money and there are no penalties if you pay back the loans early. This means that you do not have to make monthly payments nor do you need to wait until a repayment date to use the funds that you receive.

The cash flow-based term loan includes:

  • Funding up to $400,000
  • No prepayment penalties
  • 8 – 20% APR
  • 1 to 3-year terms

Business Revolving Line of Credit

A business revolving line of credit is another good choice for businesses that want to secure funding. This type of loan is available to all different types of businesses and offers a competitive interest rate. These loans are considered to be “unsecured” which means that you don’t have to put up any collateral in order to receive them, unlike an SBA loan or other types of business loans.

A business line of credit is a great way to secure funding because it allows you to receive your money as soon as the next day and there are no restrictions on how you use the funds that you receive. This can help with cash flow issues for small businesses that have steady revenue coming in every month.

The advantages include:

  • Fast access to capital
  • No hidden fees (or double-dipping)
  • No collateral or personal payment guarantee

Asset-Based Revolving Line of Credit

An asset-based revolving line of credit is best used when you need to access your funds quickly. It works in much the same way as a regular line of credit, but there are usually fewer restrictions on it than other types of short-term loans. The money that you receive can be used for any purpose and repaid at any time or on a specific date. There is usually an interest rate for this type of loan and it may vary based on the length of the term and how much you borrow.

This line of credit includes:

  • Funding up to $5,000,000
  • Funding in 4-7 days
  • Term annual renewable facility

Traditional Funding vs. Alternative Funding

When it comes to your business, no matter what industry you’re in or how much money you make, it’s important to take your time and identify which type of funding is the best fit for you.

If you’re not sure where to start, talk with the experts at Corporate Capital Direct for more information about business funding options. We can provide you with alternative business funding and help turn your dreams into a reality. We understand the challenges that face small businesses and we look to solve those problems on a case-by-case basis. Feel free to check the Corporate Capital Direct website for more information, or give us a call at 1 (800) 261-6478!

5 Smart Ways Small Businesses Can Rebuild Their Financial Health Post COVID-19

By | Funding

Small businesses are the backbone of our economy; they account for half of all U.S jobs and drive roughly 60% of economic growth (Gustafson). But small business owners need help rebuilding their financial health after this year’s government shutdown, if only so they can invest in their employees (Hampton). This article will briefly touch on the best ways small business owners can start rebuilding their financial health after COVID-19.

Work for a small business; here are five innovative ways you can start rebuilding your financial health.



1) Small Business Loans

The small business owners struggle with small profit margins and are often unable to take on more clients or have financial buffers to fall back on in lean times. For this reason, small businesses can benefit significantly from the help of public programs (and grants) designed specifically for small business owners.

Public Partnerships Program

One program that helps small businesses is the PPP (Public Partnerships Program). This program provides small business owners with low-interest loans that can help them expand their operations and improve their financial stability. Qualified small businesses must meet requirements, including having the number of employees who work at least 18 hours per week but do not need specific assets or locations.

This program is available from various financial institutions, including the Credit Union and small business development centers. Since small businesses may still struggle with small profit margins, these small loans can be an excellent way for small business owners to finance new offices or equipment that they need to expand their operations.

Industrial Development Loans

In addition to different trim loan options, small businesses can also inquire about IDL (Industrial Development Loans). These loans are offered by financial institutions as well as state and local governments. IDLs vary greatly depending on the lending institution and local government, money for small businesses to shop around and find the best deals possible.

If you’re interested in learning more about how you can access assistance with your small business, check out small business service providers.

Regardless of your needs, small business loans can be an essential source of financial health for small businesses that want to grow and thrive. For more information regarding small business programs like PPP or IDL (Industrial Development Loans), visit this website

2) Creating an Emergency Fund

Having an emergency fund should be small business owners’ priority. According to small-business administration data, half of the small businesses fail within their first five years mainly due to financial reasons. A financial backup plan will ensure you are not financially bankrupt if another crisis hits your small business (Shamas). When it comes to setting up an emergency fund, small business owners should consider putting away around six months’ worth of expenses just in case the worst happens. Even small amounts help; for example, saving $15 per week adds up to $780 by year’s end. Small business owners may also want to invest in high-interest checking accounts or certificates of deposit if they have extra money after setting aside that six-month emergency fund.

The takeaway from this point above is that small businesses should have a financial backup plan; small amounts contribute to a healthy economic life. Small business owners need to save money consistently.

3) Find Smart Investment Solutions

As a small-business owner, you can also choose different ways to invest your money. The small-business administration found that small businesses that reinvest their profits into the company tend to be more successful than those not (Patterson). You could also use these funds as capital for small business loans or community development organizations. If you are looking for other investment opportunities, small business owners may want to consider opening an Individual Retirement Account (IRA) with a reputable firm such as Vanguard. Opening up an IRA will give small business memberships particular tax advantages. Small business owners can invest small amounts of money (around $5,000) while getting access to more attractive small-business investing rates.

The takeaway here is small businesses should reinvest their profits into the company or open up an IRA with a reputable small-business investing firm.

4) Consult with Financial Aid Consultants

Small businesses may want to consider working with financial aid consultants struggling financially (CSA). They can help small enterprises to develop budgets and handle tax issues. As many small businesses struggle to make ends meet, finding ways to maximize income is essential. There are also government programs available for small business owners who qualify to help them receive funding assistance for their small start-up business plans. The online website Grants.Gov has information on federal grants that small businesses can apply for. Small business owners with specific qualifications may want to look into what is available at their local state level.

The takeaway here is small businesses should work with financial aid consultants, small businesses need to maximize income, small business owners should do their research on government grants.

5 ) Cut Unnecessary Expenses

Lastly, small businesses should always find ways to save more money by researching good deals at nearby small businesses. For example, small business owners should use Groupon to find deals at small businesses in their area.

Whether you are a small business owner or just have small financial responsibilities, it is vital to take care of your budget and your credit to avoid debt as much as possible. If all else fails, don’t be afraid to ask for help from friends and family if you truly need it.

Cutting back on unnecessary expenses, including cable subscriptions, eating out less often, and cutting small amounts from your budget will help increase small businesses’ financial health.

Optimize Your Business While You Find Financial Stability

If small business owners are good at anything, it is thinking outside the box. Now that your small business is financially stable again, get creative about how you plan on advertising your new business. There are many different types of ads, but if small businesses are innovative, they will learn to make their advertisements cost-efficient for themselves and their customers. Be sure to optimize ad spending by using social media or even create partnerships with other small businesses in town to offer discounts when your clients also purchase items from them.


In conclusion, small businesses can rebuild their financial health post-COVID-19 with a bit of advice. Advice such as good credit scores, creating emergency plans, advertising products, making partnerships with other companies, and lastly, asking for support from friends and family if these small businesses genuinely need it.

Where Do I Get Funding For My Business?

By | Funding

We know that getting funding for your business is not easy. Small business grants, start-up loans, business lines of credit—the list of options is difficult to sift through, and to achieve success with them is even harder. Banks and other financial institutions have an extremely high standard for what they will finance. In fact, 77% of small businesses that apply for a loan from larger banks are rejected. There are so many reasons why it can be so difficult to get funding for your business, especially if you are just getting started, whether you are an entrepreneur, small business owner, or web startup. That’s why your best option as a business owner is to be strategic about the way you approach this issue.

The first step is to determine how much funding you’ll need. The amount will depend on the type of business you are starting. The U.S. Small Business Administration found that micro businesses have a start-up cost of around $3,000 and home-based businesses are around $2,000-$5,000. It’s good to keep in mind that some small businesses can survive with very little funding. Make sure to do your research and find out what the average cost is for your industry before you go asking for money. That way, you won’t be overreaching and asking for money you don’t need.

The next part is the most difficult, and that is choosing your funding solution. In the United States, there are several different tips you can follow to increase your funding and funding sources that you can tap into. They include:

Friends and Family

This is a great starting point! Use your network to see if they would be willing to invest in your business. If not because of lack of funds, then maybe just as a show of support.

Personal Savings

This is a great start if you have some money that you can put into your business with the understanding that it will not be returned. If you don’t have any savings or if that won’t be enough to get your business off the ground then it’s time to talk with your bank.


You’ve probably heard of companies like Kickstarter and GoFundMe that allow regular folks to raise money online for all sorts of things. Well, it’s also possible for your business to seek crowdfunding via these sites or others like them. You can use these sites to help get the word out about your business and you can even offer incentives in exchange for donations. Just be sure to read the fine print and follow their rules; especially if they will be hosting your fundraising campaign.


There are several different types of grants that you can apply for, including government or state funding. Many times, they require a matching contribution from the business owner or entrepreneur that is starting up the company, so be prepared to invest some of your money into the project as well. Make sure to do your research and find out what the average cost is for your industry. That way, you won’t be overreaching and asking for money you don’t need. Also, be aware that most grant applications have strict requirements and they usually have a limited timeline, so be sure to read all the rules before you apply.

Business Loans

Business loans are the most common form of funding for small businesses and start-ups. These loans are pretty reliable, yet they will require a more in-depth application process and criteria. When you apply for a business loan, you will need to prove yourself as a responsible and capable business person. This is not an impossible feat if you have the right management plan in place and your personal credit report reflects that you are financially responsible.

SBA loans

An SBA loan is a great business fund solution for small businesses and beginner business owners. SBA actually stands for Small Business Administration, which is an agency within the federal government in charge of supporting small businesses with direct funding opportunities. SBA loans are government-backed, meaning that the SBA will guarantee some of the risks for the bank providing the loan. SBA loans are extremely flexible and made to fit your needs—no matter how big they are! Nonetheless, stay prepared in case your credit needs to be checked.

Cash Flow Based Term Loans

Cash Flow-Based Terms loans are very easy to obtain and provide the company a great amount of capital. Cash Flow Based Term Loans are perfect for those business owners who are eager to expand their company. The application for these loans takes as little as 10 business days and can be completed entirely online. These loans cater to the need of borrowers looking for rapid acquisition of a business loan. If this appeals to you, learn more about and apply for a cash flow-based term loan here.

Business Line of Credit

Business owners who are looking for funding to start-up or grow their company, yet don’t need a long-term loan might consider getting a business line of credit instead. Business lines of credit can be taken out and repaid as needed, which makes them great for companies that do not have consistent revenue streams. A line of credit may be the right solution for you if your company needs short-term financing. This type of financing is typically more expensive than a business loan due to the risk exposure, but with lower interest rates.

Business Credit Builder

Business credit builder services are a feasible solution for the funding of small businesses. Entrepreneurs and business owners find business credit builders to be advantageous for the financing of projects and new ventures. These services will build up your company’s credit, improve the business’s credibility and trustworthiness for a specific period of time at a small fee. This can make it easier for small businesses to get access to financing in the long term.

Business Revolving Line

A business revolving line is a funding solution for those business owners seeking capital with short-term repayment dates. This type of capital is especially beneficial for your business as it allows you to cover the daily operational costs associated with running a business, such as payroll expenses or inventory costs. A business revolving line can be used for numerous purposes within the company.

These are just a handful of the various business fund solutions. If any of this seems confusing or overwhelming, we have exciting news for you! Corporate Capital Direct is a business fund assistance company that can help. CorpCap Direct has years of experience in the business finance industry and our team is eager to assist you with whatever financial needs your business might have. Book a meeting with our Corporate Capital Direct funding advisors or call 888-348-8388.