Small Business Loans FAQ

Get answers to frequently asked questions about small business loans.

Questions about small business loans? We have answers.

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Small business loans are provided by direct lenders like Balboa Capital as well as banks and credit unions. The lender extends money to a business owner, and the business owner repays the loan, with interest, over an agreed-upon period of time. The business owner needs to make regular loan payments on time to avoid defaulting on the loan. Skipping loan payments, or making payments late, can hurt your credit score and result in late fees and/or a penalty APR.

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In order to qualify for a business loan from Balboa Capital, your company needs to be at least one year old, and it needs to generate $300,000 or more in annual revenue. In addition, you need to have a decent credit score. Simply put, our qualification requirements are more lenient than those of government-backed SBA loans or traditional bank business loans.

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Balboa Capital puts your convenience first with a simple, no-hassle application that takes just 90 seconds to complete. Our loan application only asks for basic information about you and your company, and no collateral or financial documents are required for loan requests up to $250,000. If you need a loan in excess of $250,000, we will contact you to go over the additional requirements we need.

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Each business has its own unique needs and financial situation, so the payments will differ from company to company. Your interest rate will be based on several factors, including your credit profile, loan amount and loan term. Balboa Capital business loans have fixed payments, which is great because they are predictable and easy to budget for. You can use our business loan calculator to see what your estimated payments will be based on several term lengths.

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Balboa Capital offers term lengths from 3 to 24 months for small business loans. Short-term business loans allow you to improve your credit rating because you are paying off the loan in a shorter amount of time. If you opt for a traditional business loan from a bank, you will most likely have a longer repayment length.

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The time from loan approval to funding varies. It will depend on your unique financial situation (credit rating, annual revenue, etc.) and the amount of funding you are requesting. Once your loan is approved and our checklist is complete, the funding process will begin. Balboa Capital will provide you with your loan fast; certain loan amounts can be funded on the same day. Your dedicated Balboa Capital account manager will help you better understand the timing.

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The main differences between a Balboa Capital business loan and an SBA loan are the qualification requirements, interest rates, and term lengths. Business loans from Balboa Capital are unsecured, which means they do not require collateral, financial documents, or a high credit score. As a result, they have slightly higher interest rates. If you need fast access to cash, our loans are an excellent choice. SBA loans are a great option, but they require far more information and a higher credit score. Plus, the SBA loan approval process can take up to two months.

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Once your Balboa Capital business loan is approved and everything has been signed and finalized, we will transfer your funds directly into your business bank account via an automated clearing house (ACH). You will be able to pull funds immediately after your bank clears them.

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There are no restrictions on what you can use your Balboa Capital business loan for. You can use the loan for any business-related need you have, such as employee payroll, supplies and inventory, office rent, advertising, expansion, and business taxes.

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Balboa Capital has provided loans to many thousands of business owners in all industries nationwide. They can count on us to provide them quick, hassle-free loans with competitive rates and fast funding. Plus, you will feel confident knowing that Balboa Capital has thousands of five-star customer reviews online. If these are the things you want in a business loan company, you are at the right place.