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COMPARISON
CHART
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Options
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Traditional Bank Loan
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Venture Funding
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Capital Lynk
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Minimum Loan Amount
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$25,000
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$250,000
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$5,000
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Business Plan Required
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YES
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YES
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NEVER
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Business Tax Returns
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YES
2-3 years'
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YES
2-3 years'
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RARELY
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Personal Tax Returns
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YES
2-3 years'
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YES
2-3 years'
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Never
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Business Guarantees
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YES
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YES
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Never
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Personal Guarantees
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YES
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YES
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Never
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Collateral Requirements
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YES
2:1 ratio typical
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Possibly
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None
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Hassle free process
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NO
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NO
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YES
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Approval Time
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4-8 weeks
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4-8 Weeks
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1-2 days
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Cost of Capital
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Low
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Very High
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Medium
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Cost Considerations
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Always least
expensive, but most restrictive
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Additional
Owners' equity, control, and
autonomy
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Financial Only
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Use of Proceeds
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Restricted to
use outlined in business plan
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Restricted to
intended business purpose
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No Restrictions.
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More
Information
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learn more
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learn more
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learn more
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TRADITIONAL
BANK LOAN
Small Business Loans from Banks - up to 90% rejected?
Small business lending is an analysis
of risk and return on behalf of the bank. By requiring extensive
documentation along with collateral coverage of 2:1 or greater and/or
personal guarantees for the loan amount, the bank can significantly
reduce their risk of loss and therefore the cost associated with making
a business loan.
These requirements, which usually include 2-3 years of both business
and personal tax returns as well as a business plan and a
“use of funds report” in addition to extensive loan
applications, often prove frustrating for business owners.
Because of these factors, a traditional
bank loan will be the least expensive form of business capital and
should be pursued if cost of capital is the most important
consideration.
VENTURE
FUNDING:
Given the size of annual revenues and
the amount of financing required to fund (business purpose,) venture
capital funding is not a reasonable option.
Additionally, venture money will usually require some equity
participation as well as some management influence. This loss
of equity ownership and potential control will qualify
this potential source of capital as undesirable and very expensive.
CAPITAL
LYNK FUNDING
Is Business Cash Advance Right For You?
Most retail businesses today accept credit cards as a form of
payment. This form of payment and a reliable business income
is the key to acquiring immediate capital for your business.
Rather than using personal credit, personal collateral (such
as your home), personal guarantees or co-signers, you can
sell future credit card receivables at a discount to one of several
business cash advance investors. The amount of capital you will qualify
for depends on certain predetermined qualifications such as
length of time in business and level of credit card sales each month.
Because the funding companies purchase credit card receivables, the
following are true:
  First,
the advance you receive it is not considered a loan and
there is no impact to your personal credit nor borrowing
abilities. Additionally, there is no interest rate charged or
fixed monthly repayment terms.
 Secondly,
and perhaps more importantly, the risk exposure in this
type of transaction shifts entirely from the borrower (traditionally
business loan) to the “lender”.
Because of this there is no personal guarantee or collateral
requirements, the cost of capital (as measured in financial terms only)
is typically higher with a business cash advance.
Let Us Determine How Much Working Capital We Can Get for You - It's
Free.
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