Getting a long term business loan can seem to be quite hard. You have to seek out the lenders who are willing to lend you the money at good interest rates, and many times they might not even appear if your credit score is not flawless.
If you are a business owner, then you should consider applying for a long term business loan to help grow your company.
A long term business loan can be used to pay for equipment, renovations, and other expenses. In addition, it will allow your company to have more control over cash flow as it can be paid back at a more manageable pace.
You may also want to consider a long term business loan because they have either fixed or variable rates. This means that the interest rates will remain the same throughout the entire duration of the loan and they will vary depending on market conditions respectively. As a result, this makes them a safer investment than traditional loans.
What is a Long Term Business Loan and How Does it Work?
A long-term business loan is a type of financing that a company can use to purchase assets for their business. This type of loan usually has a fixed interest rate and a fixed term.
Long-term loans are used to purchase large assets such as machinery, equipment, real estate, etc. It is not uncommon for them to be used in situations where funds from other sources are not available.
A long-term loan might be the best option for your company if you need substantial capital investments or other types of funds that you cannot obtain from other sources.
What We Offer At Rifi Capital
We are offer a better solution than a short term cash advance. At Rifi Capital, we offer a 5 year term with monthly payments for an amount of $25,000 to $200,000 dollars for qualified businesses. Interest rates are 19%to 22% annually. This is not a merchant cash advance or any other cash advance product. There are also no closing costs or origination fees. Sounds to good to be true right? Well it’s not for businesses that qualify. Here are a list of some of the basic qualifications:
- Two or more years in business
- Can’t be a home based business. Must have a brick and mortar location. No residential addresses, p.o boxes, mail boxes or shared office like We Work or Regus
- Must make $150,000 in annual sales
- Guarantor must have at least 51% ownership and must have a personal fico score of 680 or more.
- Being a homeowner is not required but it is preferred.
Additional Benefits of this funding:o
- Monthly Payment schedule: This Working Capital (WC) Financing Program will always be paid back using monthly payments. There are never weekly/daily payments. Having affordable monthly payments is ultimately less stressful on cash flow than daily or even weekly payments. We want to decrease the client stress level. Lastly, clients with 5-year, monthly payments are happier, and offer many repeat business opportunities for the referring partner.
- ANNUAL COSTS ARE FAR LESS THAN AN MCA: We’re not tax advisors and never give tax advice. In common practice, the payments made in this WC Program are treated as tax deductible by the accounting community. Therefore, after-tax cost of funds will be far less than a merchant cash advance (MCA). The average annual after-tax deduction cost of funds will be between approximately 15% – 22% per year(in simple interest) .That annual cost will decrease as corporate income tax costs rise. We always advise the client check with their tax advisor regarding their specific situation.
- 5 Year Term: This WC Program is paid back over 5-years. The main idea here is to get the business the lowest monthly payment possible. That way a business can keep its cash for more important things like potentially refinancing higher cost debt, pursuing expansion, marketing, new equipment, payroll, etc. There will also be an ongoing tax deduction. From the referring partner’s perspective: Clients with 5-year, monthly payments are happier, and offer many repeat business opportunities for the referring partner. Build a long-term client book with this product, and not just a bunch of one-and-done transactions.
- Existing Debt does not need to be paid off: Unlike other financing programs on The Street, this WC program does not require that existing MCA or other loans be paid off. This is a big competitive advantage of this WC credit facility.
- Will not interfere with other funding: This WC program does not create blanket UCC liens for your client’s business. No bank or MCA provider can, or will, require that these balances be paid off in order to qualify for their new cash funding. This WC financing will not count as a position for new MCA or other financing that you want to build out in their debt/capital stack.
- Will Strengthen Business Credit: Client payments are reported to 3 credit bureaus (Experian, Equifax-PayNet and Dun & Bradstreet, so timely payments will enhance the business’s credit profile.
- No Restrictions on the Use of Funds: You will have between $25,000 and $200,000 to use for any lawful purpose they choose with no oversight from our team. Clients love being able to make their own decisions about their own business.
What’s Next?
If you meet the basic requirement’s mention before earlier and are interested in getting a long term working capital business loan, then here would be your next steps.
- You would need to fill out a short one page application and sign it, provide.
- Submit the business’s three (3) most recent business bank statements (one pdf per statement).
- Provide a clear, legible copy of the front and back of the owner’s valid driver’s license.
You can start the process by going to rificapital.com/apply to give some general information. Just select the business loan button and then select working capital and fill out the rest of the information. After you submit, we will email a short application for you to fill out and sign to get back to us.
And just to reiterate, these are the basic qualifications:
- Two or more years in business
- Can’t be a home based business. Must have a brick and mortar location. No residential addresses, p.o boxes, mail boxes or shared office like We Work or Regus
- Must make $150,000 in annual sales
- Guarantor must have at least 51% ownership and must have a personal fico score of 680 or more.
- Being a homeowner is not required but it is preferred.
