- your business has been around more than 1 year.
- My company has more than $ 20,000 in monthly revenue.
- your business is profitable.
- you have a personal credit score over 0, and no major recent stains on your credit history.
If you believe meet these criteria, Ethan Senturia that his company, Deal Struck be able to be to provide a term loan or line of credit with an effective rate in the range of mid-teens to low twenty percent range.
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How to get a small business loan
I recently had the opportunity to interview Ethan. The following answers are based on my notes of the interviews held his precise words
. Q. Who does Deal Struck serve
A: We serve financially sound small businesses, usually during a growth cycle. The small business market is bifurcated. On the one hand you are companies that pay the subprime market with short-term credit products very high interest rates of 50% or more. On the other hand you have banks that provide companies with capital at very low prices in the high single-digit or low double-digit range. Most small businesses do not meet the loan qualification requirements of banks. However, there are many small businesses that do not meet bank lending, but are financially sound and should not have to pay an interest rate of 50% or more to borrow money. Deal Struck focuses on this segment of the market
. Question: Can you give me an example of how you might look in a business other than a bank
A: , the banks plan usually three years of a company's financial history and IRS to examine documents submitted. They weigh the performance each year equal when assessing whether the company will be able to make loan payments. While Deal Struck will certainly consider a company's full financial history, we put a lot more emphasis on a recent performance of the company
. Question: What financial products do you offer
A: currently We have two main products: a term loan product and a line of credit. We offer term loans with a maximum term of 36 months but our typical loan has a 24-month term. The APY for these loans ranges of 10-30% based on the financial risk of the loan. The payments are in fixed amounts during the term of the loan, so that at the end of the term the borrower has fully the interest and capital without paid off to make a lump-sum payment. The typical loan size is $ 100,000, but we range from $ 50K - $ 250K
. Q. Excuse me, you can use the "APY" used to describe the speed. Would you like to clarify the difference between APY and April
. A: APY or average percentage yield is to borrow the effective annual percentage cost money if you included in all fees. The term loan will be charged a one-time origination fee of 4%. will be our APY, higher than our April inclusive because of this fee. One of the ways in which some companies hide their costs is by the impact but not including fees and closing costs on the actual cost of the loan have.
Unfortunately, the small business loan market is known, a number of companies to have who deceptive practices. I blogged recently about the "no prepayment penalty" misrepresentation. Some companies claim to have no penalty if you pay off a loan early. Many borrowers believe that this means that they have to pay only the interest on the time in which they borrow the money. In fact, the opposite is the case in many instances. Often, companies are required to the same amount of interest to pay back, regardless of whether they pay early or on time
. Question: Do you want your line of credit product describe
A: This product is primarily for companies with accounts receivable. As a result, the product of B-to-B companies is used in 30 to 0 days invoice. We will usually find a company lend requirement to 85% of the dollar amount of their current demands on. The borrower deflects all claims payments to a pass-through account controlled by Deal Struck. If the borrowed amount is repaid, flowing all the means back to the debtor. The fees and interest for this product are quite low when compared to invoice factoring (the typical alternative) and the borrower pays only interest on the amount they borrow on a daily basis on their line.
Q. How much in loans you originate a month
A:?. We, the exact number must be kept confidential, but I can say that it is in the millions of
Ethan Senturia Co-founder and CEO
Deal Struck is a web platform with the best of traditional finance to provide the best technology small businesses efficient service combined and innovative financing solutions that fair, transparent and affordable. As co-founder and CEO of Deal Struck Ethan Senturia leads all institutional and marketplace lending relationships and product strategy. Before founding Deal Struck, Ethan ran Internet Marketing for Lead Generation Startup - Ampush media - growing annual expenditure to $ 15M in less than two years. Before Ampush, he was distressed credit analyst at Lehman Brothers and graduated Summa Cum Laude from the Wharton Business School.
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How to get a Small Business Loan
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