Financing Products at AFN Access
All the ways you can help your clients secure the funding they need when they need it
This is a brief overview of the products we offer, but this industry changes so rapidly that every detail of what we offer could not be included.
Industry, State, Credit Score, and Current Financial Situation, WILL impact the product or program that the client qualifies for.
Most products are uncollateralized, the only one that is collateralized is the equipment financing.
Table of Contents
Short Term Business Financing
In the landscape of business finance, the advance payment solution stands out as a versatile tool for managing cash flow and fulfilling operational needs. This method involves businesses depositing a predetermined percentage of their monthly sales, from which payments are withdrawn daily or weekly. In Canada, transactions are typically processed within 2 to 5 business days.
Offering terms spanning 1 to 12 months, this solution provides businesses with flexibility in choosing a duration that suits their financial objectives. Interest rates for these advances begin at relatively low figures in the teens, with variations based on specific factors. Moreover, the payment structure enables convenient daily or weekly payments, facilitating efficient management of financial obligations. It’s important to note that associated fees typically range from 2% to 10%.
To qualify for this solution, businesses generally need to meet specific criteria, including a minimum of three months in operation to demonstrate stability. Additionally, a credit score of at least 500 is required, reflecting financial reliability. For approvals exceeding $150,000, tax returns may be requested, while transactions below this threshold may not require such documentation. Furthermore, a minimum monthly revenue of $10,000 in both the USA and Canada is necessary to support the repayment structure.
In essence, the advance payment solution empowers businesses with a flexible and accessible means of managing cash flow efficiently. With customizable terms, convenient payment structures, and manageable requirements, this option facilitates confident navigation of financial challenges. As businesses strive for financial optimization, the advance payment solution emerges as a valuable ally in supporting growth and sustainability endeavors.
Term loans offer financing over a specified period, typically ranging from 6 to 24 months (6 to 18 months in Canada). These loans feature lower fixed rates and payments, ensuring consistency throughout the term.
Moreover, term loans are distinct from advances, allowing businesses to benefit from potential interest write-offs on taxes. In terms of fees, businesses can expect minimal to no charges, with transactions in Canada typically taking about 2 to 5 business days for processing.
Here are some requirements:
Businesses seeking term loans usually find themselves in the first or second positions for repayment priority. While term loans can serve as payoff options for existing positions, they generally don’t favor stacking multiple loans. To qualify, businesses typically need to demonstrate a monthly revenue of $20,000 or more, showcasing a certain level of financial activity.
Additionally, a credit score of at least 650 is typically required to ensure financial reliability and eligibility for the loan.
Line of Credit
Term loans provide financing over a specified period, offering lower fixed rates and payments, ensuring consistency throughout the term. Unlike advances, term loans are not upfront payments; instead, they enable businesses to benefit from potential tax write-offs on the interest.
Generally, minimal to no fees are associated with term loans, with transactions in Canada typically processed within 2 to 5 business days. Term lengths range from 6 to 24 months (6 to 18 months in Canada), with fees typically ranging from 0% to 2%.
For approvals exceeding $150,000, tax returns may be requested, while transactions below this threshold may not require such documentation. Various payment structures, including daily, weekly, and biweekly, are available, with monthly options not available in Canada.
Businesses typically occupying first or second positions for repayment priority are favored for term loans. While they can serve as payoff options for existing positions, term loans generally do not accommodate stacking multiple loans. Eligibility criteria often include a monthly revenue of $20,000 or more, a credit score of at least 650, and a minimum of one year in business.
If businesses fail to meet all the following criteria, monthly payment options are not available, reverting to daily or weekly structures: maintaining daily balances of $10,000, possessing a credit score of 650 or higher, operating for at least five years, and avoiding more than six negative days in the past three months.
Consolidation presents challenges, with limitations on the number of positions that can be consolidated. However, we strive to employ creative solutions whenever possible, though complexities may arise, especially in Canada.
Term lengths for consolidation typically range from 6 to 24 months, with the possibility of consolidating up to 2-3 positions in most cases. Some specialized programs may allow for consolidation of more positions, subject to the same eligibility criteria.
Businesses seeking consolidation must meet specific criteria, including a monthly revenue of at least $40,000 and a credit score of 600 or higher. Additionally, businesses should have a minimum of one year in operation and maintain current balances on existing lenders.
Ensure eligibility for consolidation, businesses are required to adhere to payment schedules without bounced payments. Payment structures can vary, offering daily, weekly, and biweekly options, though monthly options are unavailable in Canada.