“We have a niche in Small Business Administration (SBA) loans but discovered that many small businesses have immediate needs that can be met by micro loans. The paperwork required is minimal and the underwriting is done on the business health.
San Francisco, CA (PRWEB) November 21, 2012
The Lending Circle, a division of Sunovis Financial, recently introduced Short-term micro loans to help small businesses with immediate cash needs. The loans are underwritten by reviewing company cash flow and health, not credit scores. There is no question that some businesses suffer no access to needed capital because there is no credit history, or the owner has a less than stellar credit score. This may have no bearing at all on the business, yet banks will not lend.
Retail stores need inventory, medical practices need equipment and many businesses need working capital. The best use for these fast micro loans is for an item that will add money to the bottom line of the business. The short-term business loans are available to businesses that have been in operation for at least one year and have minimum annual revenue of $100,000.
The loans are for as little as $5,000 and up to $150,000 for short periods of 3 months up to 18 months. Payback is easy through a daily ACH. The good news is that payments are reported to the credit agencies, so a small business can build credit history or improve it.
Are any businesses not eligible? Yes, there is a list of restricted industries that are not eligible. These include gaming, bail bonds, check cashing, real estate brokers, auto dealers, not-for-profit grant writers, schools, travel agencies, flea markets and airlines among others. Check the list to see if your business is on the list of restricted industries.
Terry Robinson, President of Sunovis Financial, says, “We have a niche in Small Business Administration (SBA) loans but discovered that many small businesses have immediate needs that can be met by micro loans. The paperwork required is minimal and the underwriting is done on the business health. Because the loans can be funded quickly, we meet the pace of business needs and let them focus on growing their businesses now. We are proud to have added the short-term loans to our list of services.”
The company does what is called a “soft pull” of the credit score, because a minimum threshold of 500 is required. A “soft pull” does NOT affect the credit score of a business. Soft pulls are done often; for instance, businesses or individuals can check their own credit reports once a year, and this is a soft pull. Employers and banks may do a soft pull when an account is opened in order to verify identify. This is different from a “hard pull”, for instance when you apply for a credit card, a car purchase or lease, or a typical bank loan. A “hard pull” does show on your credit record. Since our loan is NOT based on credit scores, we simply do a “soft pull” to verify the 500 threshold score.
Uses for these short term loans include equipment purchases, cash flow management, inventory management, new marketing programs, additions to working capital, or any other business opportunity that is too compelling to ignore. Because these loans have terms of 3-18 months, they are perfect for those investments and opportunities that are expected to begin generating revenue within this time frame.
Small business owners work extraordinarily hard, and their efforts are a boon to the communities in which they operate. With roughly 50% of all jobs in the U.S. created by small businesses, it only makes sense to support them in any way possible. By offering loans with shorter repayment terms, Sunovis Financial is living up to its mission: help rebuild the U.S. economy, one business and one loan at a time.
About Sunovis Financial
Sunovis Financial and its division The Lending Circle assist small businesses and borrowers with their capital needs. Sunovis is an SBA expert, assisting both small businesses and small banks with SBA services. The Lending Circle handles all things lending, including the micro loans, nearly bankable loans, commercial real estate loans and refinancing.