Business Financing FAQs

Tariff Business Loans is a leading provider of business financing solutions designed to help small and medium-sized businesses access the capital they need to grow and succeed. We offer a variety of loan products including term loans, lines of credit, equipment financing, and more, all tailored to meet the specific needs of modern businesses.

Our application process is designed to be simple and straightforward. First, you complete our online application, which takes about 10-15 minutes. Then, submit any required documentation such as bank statements or financial records. Our team reviews your application, typically providing a decision within 24-48 hours. Upon approval, funding is often available within 1-2 business days.

Funding amounts range from $5,000 to $500,000, depending on your business's qualifications, revenue, time in business, and credit profile. During the application process, we'll work with you to determine the optimal funding amount for your specific business needs.

You can use business funding for virtually any legitimate business purpose, including inventory purchases, equipment upgrades, hiring staff, marketing campaigns, expansion, working capital needs, and more. Different loan products may have specific use cases, which our funding specialists can discuss with you.

Generally, our minimum requirements include: being in business for at least 6 months, generating at least $10,000 in monthly revenue, and having a credit score of 550 or higher. Requirements may vary based on the specific loan product you're applying for.

Many of our financing options are unsecured, meaning they don't require specific collateral. For options like equipment financing, the equipment itself serves as collateral. We offer both secured and unsecured options to meet different business needs and comfort levels.

Yes. While credit is a factor in our decision-making process, we consider multiple aspects of your business including revenue, time in business, and overall business health. We have funding options designed specifically for business owners with less-than-perfect credit.

We primarily serve established businesses that have been operating for at least 6 months. However, we may have options for newer businesses depending on their revenue and the owner's credit profile. Contact our team to discuss your specific situation.

While we work with businesses across most industries, some industries may have different qualification standards or specialized loan products. Businesses in high-risk industries might face stricter requirements, while those in stable sectors might qualify for better terms. Our team evaluates each application with industry context in mind.

Cash flow is one of the most critical factors in our approval process. We assess your business's ability to generate consistent revenue and manage expenses, as this directly impacts your capacity to make loan repayments. Strong, positive cash flow can sometimes offset other qualifying factors like credit score.

Interest rates and fees vary based on several factors including the loan product, your business's creditworthiness, time in business, and industry. Rates typically range from 6% to 25% APR. Our team provides transparent information about all rates and fees before you sign any agreement, ensuring you fully understand the cost of capital.

Repayment terms range from 3 months to 5 years, depending on the loan product. Short-term loans and merchant cash advances typically have terms of 3-18 months, while term loans can extend up to 5 years. Equipment financing terms often align with the expected useful life of the equipment.

Most of our loans are repaid through automatic withdrawals from your business bank account, either daily or weekly depending on the loan product. For merchant cash advances, repayment is typically a percentage of your daily credit card sales or daily bank deposits. This structure ensures repayments align with your cash flow.

Yes, most of our loan products allow for early repayment. Depending on the loan type, there may be prepayment benefits or penalties. We clearly outline these terms in your loan agreement and our team is available to discuss the specifics of early repayment for your particular loan.

If you anticipate difficulty making a payment, we encourage you to contact us immediately. We understand that businesses face unexpected challenges, and our team can often work with you to find a solution. Missing payments without communication may result in late fees, increased interest rates, or other consequences outlined in your loan agreement.

Yes, APR (Annual Percentage Rate) and factor rate are different ways to express the cost of financing. APR represents the yearly cost of funds over the term of a loan, including fees. Factor rates are typically used for short-term financing like merchant cash advances and are expressed as a decimal figure (such as 1.2 or 1.4) that, when multiplied by the loan amount, gives the total repayment amount. While APR is time-based, factor rates are fixed regardless of how quickly you repay.

Typically, you'll need 3-6 months of business bank statements, business tax returns or financial statements, a valid business ID, and proof of ownership. Additional documentation may be required depending on the loan amount and type. Our application system will guide you through exactly what you need to provide.

Initially, we perform a soft credit pull, which does not impact your credit score. This allows us to provide pre-qualification offers. A hard credit inquiry, which may temporarily affect your score, is only performed when you proceed with a formal application for specific loan products.

Most applications receive a decision within 24-48 hours after all required documentation has been submitted. For some smaller loan amounts or pre-qualified applicants, approvals can happen even faster, sometimes in just a few hours.

After approval, we'll send you a detailed loan agreement to review and sign electronically. Once signed, funds are typically deposited directly into your business bank account within 1-2 business days. Our team will follow up to ensure you understand the repayment terms and to answer any questions.

Yes, you can apply for multiple loan products, and our funding specialists will help determine which combination might work best for your needs. For example, some businesses benefit from having both a term loan for a specific project and a line of credit for ongoing expenses. However, your total approved funding will be based on your business's overall qualifications.

A term loan provides a lump sum of money upfront that you repay over a fixed period with regular payments. It's ideal for specific, one-time investments like equipment purchases or renovations. A business line of credit is a flexible funding option that allows you to draw funds as needed up to a predetermined limit and only pay interest on what you use. Lines of credit are better for ongoing expenses, managing cash flow, or having funds available for unexpected opportunities.

A merchant cash advance (MCA) provides an upfront sum of capital in exchange for a percentage of your future sales. Repayment is made through either a percentage of your daily credit card sales or fixed daily/weekly payments from your bank account. MCAs are particularly well-suited for businesses with high credit card transaction volumes, seasonal businesses, or those needing very quick funding. While convenient and fast, they typically have higher costs than traditional loans.

Equipment financing is ideal when you need to purchase specific machinery, vehicles, technology, or other equipment for your business. With this type of financing, the equipment itself serves as collateral, often resulting in lower interest rates compared to unsecured loans. Equipment financing should be considered when: 1) You need to purchase equipment that will generate revenue or reduce costs, 2) You want to preserve cash flow by spreading the cost over time, 3) You want potential tax benefits (Section 179 deductions), or 4) The equipment has a long useful life that aligns with the financing term.

Working capital financing is designed to help businesses manage day-to-day operational expenses rather than long-term assets or investments. This type of financing helps cover costs like inventory, payroll, rent, or marketing expenses when cash flow is temporarily limited. Working capital loans are particularly useful for seasonal businesses, those experiencing growth (where expenses increase before revenue does), or companies navigating temporary cash flow gaps. These loans are typically short to medium-term and focus on maintaining or improving your business's operational efficiency.

Short-term business loans typically have repayment periods of 3-18 months, compared to traditional term loans that might extend 2-5 years or longer. Short-term loans usually have higher monthly or weekly payments but may be easier to qualify for and fund more quickly. They're best for immediate opportunities with quick ROI, such as inventory discounts, short-term projects, or bridging temporary cash flow gaps. Traditional term loans, with their longer repayment periods and often lower interest rates, are better suited for long-term investments like major equipment purchases, renovations, or expansion projects.

Improving your business credit score requires a strategic approach: 1) Establish credit accounts that report to business credit bureaus, 2) Pay all bills and obligations on time or early, 3) Keep your credit utilization below 30% of available credit, 4) Regularly monitor your business credit reports for errors, 5) Maintain a good personal credit score, as it's often considered for small business lending, 6) Separate personal and business finances completely, and 7) Build relationships with vendors and suppliers who can provide trade references. Improvement takes time, but a stronger business credit profile leads to better financing options with more favorable terms.

Profit is the revenue remaining after all expenses have been deducted, while cash flow represents the actual movement of money in and out of your business over a specific period. A business can be profitable on paper but still experience cash flow problems if, for example, customers are slow to pay invoices or if capital is tied up in inventory. Similarly, a business might have positive cash flow temporarily even if it's not profitable. Both metrics are crucial, but strong cash flow is particularly important for day-to-day operations and loan repayment capacity.

The appropriate debt level varies by industry, business model, and growth stage. A common metric is the debt service coverage ratio (DSCR), which measures your ability to repay debt from operating income. A DSCR above 1.25 is generally considered healthy, meaning your income is 25% higher than your debt payments. Another metric is the debt-to-equity ratio, comparing what you owe to your ownership stake. Generally, businesses should aim to keep total debt payments below 15-20% of monthly revenue, though capital-intensive industries may safely carry more debt.

This decision depends on several factors including the opportunity cost, potential ROI, current interest rates, and your business's financial health. Using financing can be advantageous when: 1) The expected return on investment significantly exceeds the cost of capital, 2) The growth opportunity is time-sensitive and waiting could mean losing market share, 3) The financing would allow you to scale faster than organic growth would permit, or 4) Preserving cash reserves would provide greater security in uncertain markets. However, if the growth isn't likely to generate enough additional revenue to cover the financing costs, or if your business already has significant debt, waiting to accumulate cash might be wiser.

To strengthen your loan application, organize and optimize your financial documentation: 1) Ensure your bookkeeping is accurate and up-to-date, with reconciled accounts and clear categorization of expenses, 2) Prepare professional financial statements including profit & loss statements, balance sheets, and cash flow statements for at least the past two years, 3) Create realistic financial projections showing how the loan will impact growth, 4) Maintain healthy bank balances and avoid overdrafts in the months before applying, 5) Separate personal and business expenses completely, 6) Reduce outstanding debt where possible to improve your debt-to-income ratio, and 7) Document all revenue streams clearly, especially if you have multiple sources of business income. Professional-looking, organized financial records significantly increase your chances of approval.