Funding Programs Overview
Updated: Apr 13
Summarized Funding Programs Overview
Thank you for your interest in our services. Please review our funding options and keep on file for future reference.
Conventional Full Document Business Loans
Conventional Business Loans through a bank or credit union in our network is your cheapest cost of money. They start at prime plus 2 points usually, and terms can be from 2 to 30 Years. Rates fluctuate with the markets. Currently, they are higher than normal. Hopefully, in the next few months, they will start coming back down.
A conventional business loan through a bank, which includes SBA loans, are full document products that require a minimum of 2 years of time in business. They are usually secured by real estate assets but not always. As mentioned earlier, we can also facilitate SBA loans if you qualify. We have other options if you keep reading for newer businesses.
It is good to keep in mind that we have Credit Unions in our network that like specific industries. This gives us an advantage because we can take your file to an institution that likes your type of business, which in-turn gives us a better chance of approval and potentially better rates and terms than you might be offered elsewhere.
It takes a minimum of 3 weeks but usually more like 45 days and sometimes 60 to 90 days or longer to get through the underwriting process with a bank or credit union. This is not due to us at Oasis Funding Network. We take a week or at most 2 weeks, to package everything correctly for underwriting. However, once we submit your file to a bank, we are waiting right along with you for their process to complete.
Business Line of Credit
We have both conventional and alternative credit line providers. The alternative lines have a term of 6 to 18 months and go up to $250K, but if the line is kept current you can easily have it re-issued when it terms out.
Conventional lines are open-ended and can go into the Millions of dollars, but assets are usually required as security, unless the business has very significant and consistent accounts receivables for which it can provide documentation.
We have a new network partner that can rapidly loan up to 85% of the equity in your home or another property you own. Must have at least a 640-credit score. You can find out in 5 minutes if you are approved and for how much. Funding takes about 2 weeks from approval time. The term can be 1 year up to 30 years.
If you take less than you were approved for you can easily access the remaining funds you left on the table if you need them later. Rates start very close to bank rates and go up depending on the term, and credit. However, there is an 8-point origination fee at closing that will come out of the funded amount.
The bank pulls 5% automatically and we have to have a signed consulting agreement in place to pull the other 3% after you get funded. Part of that 3% goes to the finance company that offers this program and the rest is our fee. This is the only product where we are not paid directly by the lender or funder. For all of our other funding options, you will never see a fee from us as we are compensated by the lender.
Business Term Loan
These products have 1 to 3-year terms (sometimes longer). They are usually an unsecured advance on the business' receivables. But there are also traditional banks that offer term loans as well. The cost of the money is also a full tax write-off with this type of funding.
Personal Term Loan
If you have at least a 680 Credit Score across all 3 bureaus and your last 2 years of tax returns show at least $50k in taxable income, you have a 95% chance of being approved for a 5 to 7 Year Unsecured (no collateral needed) Term Loan at rates starting as low as 5.49% simple interest (1 to 3% APR), with loan amounts that range from $20k to $400k.
Many use this as start-up funding, and unfortunately, this is really the only option we have been able to find for clients seeking start-up capital, other than the Alternative HELOC mentioned above, and a Zero Percent Introductory Rate High limit Credit Card Stacking program you will see if you scroll down.
Funding on the personal term loan option can be as fast as 7 to 14 days from application. You can use a co-signer if your personal credit is a little shy of 680 but they have to also meet the income requirements and the approval amount will be based on their income. They will also be required to submit documents.
Zero Percent Credit Cards Program Up to $150,000
Minimum 650 Credit Score Required
Two of our Network Partners have a program where they can get you as much as $150K in 0% introductory rate high-limit business or personal credit cards. With the lack of available funding options for new or start-up businesses, this can be a great resource for getting a new business off the ground with very cheap capital. The 0% introductory rate, ranges from 6 months to 1 year depending on the card.
This is also a great option for established businesses as the high-limit credit cards can function as multiple lines of credit that the business can have as a hedge against emergencies or seasonal cash flow issues. We can get you an approximate approval amount range on this product as fast as 24 hours. The entire process of getting the approvals for every card can be completed as quickly as 2 weeks.
Unsecured Rapid Alternative Working Capital
Rates for unsecured (no collateral needed) working capital with minimal documents required and sometimes 24-to-48-hour funding, range from 15% simple interest (not an APR) and go up from there. Average though is more like 25% and up, and Terms range from 3 months to 3 years.
Once again, that is not an Annual Percentage Rate or APR. For example, if you borrowed $10k at 15%, your payback would be $11,500 or $1,500 in interest ($1,500 Tax Write-Off). This would be the same whether the term of the loan was 3 months or 3 years. If you borrowed $100k at 15%, your payback would be $115k or $15k in interest ($15,000 Tax Write-Off).
However, unlike a traditional bank loan secured by assets, this type of working capital is completely unsecured. Strictly speaking, it is not technically a loan, but rather an advance against the receivables of the business. The business owner has no assets at risk. It is also much higher risk to the lender though, so the cost of the money is higher than a secured bank loan.
The key with this type of funding is that the funds should be making the business significantly more money than it is costing you. Is there a high enough ROI to justify the higher expense? Do the ROI and the convenience of the fast unsecured funding with minimal documents make sense for your business? Or is the money solving a problem that will be far more expensive than the cost of the capital?
As well, unlike a conventional secured product, the interest on this type of funding is a 100% line item deduction or tax write-off for the business. This type of funding is usually a weekly automatic ACH payment out of the business account but, can also be 2-times-a-week, 3-times-a-week, or even 5 business days per week.
In some cases, we can get bi-weekly or monthly payments. Sometimes we can negotiate a different payment schedule, rate, and term, then they send out in the first offer. If the funding amount is $15K or more, we can usually get you a prepaid discount where you can get an aggressively discounted pay-off if you can pay off the balance early.
Also, as mentioned, 100% of the interest can be written off as a business expense, so you will get some of that back on your taxes as well. So, for example, if you were to spend $10,000 in interest in 2022, you would have a $10,000 write-off. It is a bonus to have some good deductions at the end of the year.
Repeat Cash Infusion Funding
(Good Alternative to a Line of Credit with Much Higher Approval Amounts & Easier to Get)
One of our funding partners offers an add-on feature where you can additional capital every 2 to 6 months. They do not refinance your balance from the previous funding into the new contract, so you are never paying interest on your own interest, as you are with 99% of the other funders of this type.
A lot of business owners love this option. You can get regular cash infusions of working capital as an advance against your accounts receivables, but you are always just making one payment, on one contract at a time. However, you can get additional capital (new money) every 2 to 6 months if you need it.
If you take less than you were approved for, then you have "Money on the Table," that you can access, almost like a line of credit, whenever you need it and you don't have to wait the 2 to 6 months to access it.
Equipment financing, in a best-case scenario, starts at 4.9% and can go up to a 7-year term. The interest goes higher if there are credit challenges and, a down payment may be required. Sometimes we can get you a separate working capital advance to cover the down payment. The equipment financing does help to build up your business credit which is important for setting yourself up for access to better funding options and credit lines in the future.
Invoice/Accounts Receivable Financing
We can potentially get you paid up to 80% in advance for all invoices you submit and then the remaining 20% minus the invoice factoring company’s fee once the invoice has been paid in full. This can help reduce cash flow problems on net 30, net 60, net 90 etc...contracts.
Real Estate Investments & Construction Loans
We have lenders that can facilitate everything from light rehab to ground-up construction of residential and commercial projects. We also have bridge lenders (some call "Hard Money," lenders) for Fix & Flips and Buy & Hold investments for both single-family or multi-family properties.
Commercial Real Estate Acquisition
We have both conventional and alternative lenders that can assist in acquiring commercial real estate for your business or as an investment property. Oftentimes, build-out costs and business equipment can be included. We consult with you to help determine what your options are. If a property needs to be secured quickly, we have private lenders that can provide shorter-term interest-only payment options. Once traditional financing is secured the acquisition funding can be taken out with the lower-interest long-term financing.
Mergers & Acquisitions
If you are trying to purchase a business or merge another existing business into your current business, we can assist in the entire process of acquiring the financing. We can vet the company you are looking at and go through their financials for you to help determine if it would be a good acquisition or not.
Purchase Order Financing
Please call us if you are interested in PO Financing. If you need to purchase materials, particularly in bulk, with a specific supplier on a regular basis, or even multiple suppliers, you can potentially finance the purchase order in advance. They will issue you a max approval amount which is essentially a line of credit that you can use for materials purchases only.
As mentioned, you can use it with multiple suppliers once the PO Financing company vets said, suppliers.
These are our most frequently used options. We highly recommend setting up a free consultation as sometimes we can get creative with our solutions as we work with a lot of lenders of many different types.
Thanks again for giving us a chance here at AmeriCapital Solutions and Oasis, your one-stop shop for business lending.
Call/Text (541) 236-2930