r/loansforsmallbusiness

credit score is 548, needed capital fast for my auto detailing shop

got approved for $15k through an MCA company I found online. factor rate 1.49, 20% holdback daily, estimated 5 month payback

I was relieved to get approved but now looking at the numbers more carefully I'm paying back $22,350 on a $15k advance in about 5 months

that's a lot. but I also don't know if that's just what bad credit MCA looks like or if I got a bad deal

is 1.49 on the high end for someone with my credit profile or is that pretty standard? and is there anything I should negotiate before I sign or is it basically take it or leave it at this stage

Posting my experience with Cardiff for others to comment about. They promise a business loan decision within minutes and seemed to generally have good reviews. They also appear to fund directly and not be a broker.

I filled out the online forms and made my funding amount request. I was then prompted to connect my business account via Plaid. Not entirely unusual but odd that their site did not first prompt me to create an account. Connected plaid and awaited a response. Next screens tell me I've made it past the first stage and they needed a photo ID and copy of a voided check uploaded. Done. More seconds go by and a screen appears with a video to watch that stars the founder of Cardiff. The video says I'm "approved" and will be contacted shortly to finalize funding.

This was last Friday so then today (Monday) I got a text asking for four months of bank statements. Also odd since Plaid would have had that information for them. Received an email too. The sender did not sign the email nor was there a callback number. They also asked for bank statements and also how much I wanted to borrow and what type of loan I wanted. That was information that was all provided online prior to the "approval."

Since the email was not signed, I called the phone number on their website but they close at 4PM it says. So I replied to the email and asked for a call back. My phone rings a minute or so later and it says "suspected spam" so I didn't answer. A 9 second voicemail was left with a lot of background noise of people talking - sounded like a household. Up pops another email that just says "call now." Phone rings again so I answer and this person identifies them as being from Cardiff.

I explain that I'm confused because the site had all the information I provided and I had an approval. I played him the video over the phone. He said that "approved" meant I was approved to apply. I conveyed that that doesn't make sense since I had already applied, connected Plaid and uploaded my ID and voided check, and the video was displayed to me after the screen said I was approved and the dialog in the video confirmed that. I also mentioned their site promises a fast decision one way or another. No response to that.

This went around in circles for a minute and he kept asking for copies of bank statements. I told him to kindly withdraw my application and disconnect Plaid. He said Plaid was a "one-time" use and would not remain connected but my Plaid account still shows Cardiff as connected.

Just thought I'd post this because I'm genuinely confused by their claims vs their actual process. Also the lack of proper business form in his emails to me makes me uncomfortable.

I've dealt with On-Deck, PayPal Working Capital and other lenders in the past and this is far from a routine experience. Look forward to comments.

credit score is around 510 right now

I know that's bad. had some personal stuff happen in 2022 that I'm still digging out of

but my business is doing okay. food truck, been running for 16 months, averaging $14k a month in deposits, no NSFs in the last 6 months

I keep seeing MCA companies advertise no credit check and I'm wondering what that actually means in practice. like if they're not looking at my credit score, what are they looking at? and does my 510 show up somewhere in the process even if they say they don't check it

also what's a realistic factor rate for someone in my situation

credit score is 545. had some personal issues a few years back that tanked it

the business itself is solid. 3 years in, $28k a month in revenue, no missed payments to vendors or suppliers

I need to finance a commercial espresso machine and grinder setup, about $18k total. the equipment is the collateral so I don't understand why my personal credit score matters so much for something that's secured

applied to two places and got declined both times. one of them didn't even look at my bank statements, just ran the credit and said no

is there anyone who actually does equipment financing based on the business performance rather than the personal score

Hello, I am in the midst of starting my own startup and am looking to acquire around $10,000. The companies name is Aurence and I am essentially making a fragrance accessory product to help with the longevity of colognes/perfumes. A product designed to put on your hotspots( neck, wrist, behind ears) to basically slow down the evaporation of your fragrance. I am currently in the sampling phase with the manufacturer and have completed everything logistically. Feel free to pm me for more information if interested

I am a US Citizen and found a Canadian business that I'd like to acquire (and have it be operated by my family member who is a Canadian citizen. ). I have enough assets and collateral to guarantee my loan and the business is profitable with enough cash flows to easily service the loan. What lenders should I talk to ? Canadian small biz lenders say they don't lend to US citizens, and US lenders tell me they can't lend for a non US purchase.

My family member doesn't have enough collateral or downpayment. I am putting the money. They are simply going to run it on salary and some performance equity

Does anyone know where someone with fair credit or not the best credit history could get a loan from??

Hi all! I am looking to expand my growing catering & hospitality business and Brooklyn is... expensive. Does anyone have suggestions on grants or low interest private loans for small hospitality businesses? Any and all suggestions are welcomed. Thank you so much!

US immigrant(green card holder here). Been working toward my green card for the past 6 years and saving money relentlessly to buy a business in the US. I have about 300k saved and finally got my green card! (Yay) But about 3 months ago, SBA removed green card holders (who previously held 4% of SBA loans) from qualifying. Any advice? Kind of upset my plans of doing everything the right way are backfiring. Thanks.

about to apply for my first MCA online

I've done the research. I know it's not a loan technically, I know what a factor rate is, I know the daily ACH thing

what I don't know is what the actual online application process looks like step by step

a few things I'm unsure about: when they ask to connect to my bank account directly, is that standard or should I just upload statements manually? how many offers should I expect to get and how do I compare them properly? and how fast does it actually fund after approval, not the marketing claim, the real timeline

also is there anything in the contract I should specifically look for before signing that most people miss

Summit County Colorado, running a ski equipment rental shop

this is obviously the most seasonal business imaginable. November through March we do great. April through October is basically nothing

banks look at my annual revenue and it looks fine but they look at the monthly statements from June and July and they panic

need $40k to upgrade the rental fleet before the season. credit is 710. the business has been profitable for 4 years. I just can't get anyone to look past the off-season months

Colorado has some interesting programs through OEDIT and there are CDFIs in Denver but I'm not sure any of them understand mountain town seasonal businesses

anyone in Colorado find a lender that actually modeled the seasonal cash flow correctly instead of just looking at the worst month

need to finance a CNC lathe, around $85k

I've gotten quotes from 3 places. my bank wants 20% down and 7 weeks to close. an equipment financing company quoted me 9.8% over 60 months with 10% down. a vendor financing program through the manufacturer is offering 0% for 18 months then jumps to 14.9%

I know the 0% sounds good but I've heard there are catches with vendor financing, like you can't negotiate the equipment price and there are penalties if you pay it off before the rate jumps

what do people in manufacturing actually use for equipment financing and what should I be asking about that I'm probably not thinking of

I keep seeing ads for 100% equipment financing and no money down

I need to finance a refrigerated van for my catering business, about $42k. I have decent credit (690) and 2 years of business history but I don't have $8 to $10k sitting around for a down payment right now

every time I've called one of these no money down places they end up asking for a down payment anyway, or they want the first and last payment upfront which is basically a down payment with a different name

has anyone actually gotten equipment financing with genuinely zero out of pocket at signing? what did your situation look like and who did you use

I tried to do a bank statement loan and I did qualify but they wanted 25% down on mobile homes and in my area, majority of homes on 1 acre is mobile homes. (that’s just too much for me) I decided to do a bank statement loan because I wrote off taxes in the past years and I wasn’t able to qualify for anything else.

I talked to my loan officer and she told me that another route would be i actually pay taxes and then I reapply at the beginning of next year and do a conventional loan. And I did ask if I can only use one year tax returns and she said yes bc i’ve been in business for over five years.

I think I’m just scared that I’m gonna wait these next 7 to 8 months and then try to reapply and they’re gonna be like oh we need another year even though she did tell me that and it’s not that I don’t trust her but it’s just my anxiety getting the best of me. So I would like to hear other people’s opinions on it..

Best places to apply? We use Souther Bank / AltLINE for factoring and need to keep them. Trying to refi SBG Financial loan of $150,000 and working capital just in case. Ideal scenario would be an SBA LOC for around $250,000+.

I am a small business owner. I operate two food trucks and have been operating using MCAs for almost two years.

Recently I lost a permit to operate at a location that drives a lot of my sales and the result is that I can now only afford to cover payroll and food costs or cover my MCA payments but cannot do both.

I have spoken with attorneys who say I should file for bankruptcy and also spoke with 3 debt settlement companies (Coastal Debt Relief, Rise Alliance, Creditors Relief). All of my options would cost $10,000 or more, which is money I simply don’t have.

My debts are with CFG and Kapitus and total just under $125,000 combined.

I’ve been searching everywhere for solutions or self help guides and was pointed to the 2026 MCA Debt Settlement Guide by chat GPT. It costs $250 and claims to walk you through the same services that debt settlement companies offer. I am skeptical but $250 is all I can afford and I may have no other choice but to try.

Does anyone have any experience with this? I’m willing to post my results after trying if I do move forward.

Reddit won’t let me post the link but it’s available on payhip and if you DM me, I’ll send the link so people can know what I’m referencing as there may be more than one guide out there

Before You Sign an MCA, Know What You're Really Paying For

I see a lot of business owners turn to a Merchant Cash Advance (MCA) because they need funding quickly. Sometimes it's the right solution—but too often it's the only solution they were shown.

A few things every business owner should know:

• An MCA is not a traditional business loan. It's an advance against future sales.

• Many MCA providers use a factor rate instead of an APR, making it difficult to compare the true cost with other financing options.

• Daily or weekly automatic payments can put significant pressure on cash flow, especially during slower months.

• The fastest funding isn't always the least expensive funding.

Before accepting an MCA, ask yourself:

• Is a term loan available?
• Would a business line of credit accomplish the same goal?
• Is invoice financing or equipment financing a better fit?
• How much will I actually repay over the life of the advance?
• Will these payments limit my ability to qualify for future financing?

I've seen business owners save thousands simply by understanding all of their options before signing.

If you're considering an MCA, I offer a complimentary MCA Deal Analyzer that estimates your total repayment, compares it against other financing options, and helps determine whether an MCA is truly your best choice.

Making an informed decision today can save your business a lot of money tomorrow.

yook three MCAs over two years running my catering business

first one was fine. needed $20k fast for a big event deposit, got it in 48 hours, paid it back in 7 months, factor rate was 1.28. not cheap but it worked and I could handle the daily payments

second one I was already paying back the first when I took the second. didn't fully understand what stacking meant at the time. two daily ACH pulls at once during a slow month almost wiped me out

third one I was trying to get out of the second. ended up in a cycle that took 14 months to fully clear

the product itself isn't evil but the way it's sold is. nobody explains what happens when you have a slow week and the ACH keeps pulling regardless. nobody explains what stacking does to your cash flow

if you're considering one, ask specifically: what happens if I miss a payment, and do you have any existing positions with other lenders