Resource

Business Funding FAQs

Everything you need to know about business financing, answered by our lending specialists.

  • Questions about funding speed, credit impact, and minimum requirements
  • Guidance on loan types: term loans, lines of credit, SBA loans
  • Transparency on rates, fees, and early payoff options
  • Application requirements including documents and personal guarantees
  • How Closer Capital works as a broker vs direct lender

Getting Started

  • How quickly can I get funded?
  • Will applying hurt my credit score?
  • What are the minimum requirements to qualify?
  • Do I need collateral?

Loan Types & Programs

  • What's the difference between a line of credit and a term loan?
  • Should I get an SBA loan?
  • Can I get a loan with bad credit?
  • What can I use the funds for?

Rates, Terms & Fees

  • What interest rates should I expect?
  • What fees are involved?
  • Can I pay off my loan early?
  • What loan amounts are available?

Application & Approval

  • What documents do I need?
  • Do I need to have a business entity (LLC, Corp)?
  • Can startups get financing?
  • Will I need a personal guarantee?

Working with Closer Capital

  • How does Closer Capital make money?
  • Are you a lender?
  • What if I'm not approved?
  • Can I work with you if I'm already working with another broker or lender?

Frequently asked questions

How quickly can I get funded?
Funding timelines vary by loan type. Alternative lenders and merchant cash advances can fund in 24–72 hours. SBA loans typically take 2–4 weeks.
Will applying hurt my credit score?
Pre-qualification uses a soft credit pull that doesn't affect your score. Only a hard inquiry on full application impacts your credit, typically just a few points.
What are the minimum requirements to qualify?
Most programs require 6+ months in business, $10,000+ monthly revenue, and a personal credit score of 600+. Requirements vary by loan type.
Do I need collateral?
Not always. Unsecured loans are available based on revenue and creditworthiness. Asset-based loans use equipment, real estate, or receivables as collateral.
What's the difference between a line of credit and a term loan?
A term loan provides a lump sum with fixed payments. A line of credit offers revolving access to funds — you only pay interest on what you draw.
Should I get an SBA loan?
SBA loans offer the best rates (6–8%) and longest terms but require more documentation and 680+ credit. Best for established businesses that qualify.
Can I get a loan with bad credit?
Yes. Asset-based loans and invoice factoring focus on collateral or receivables rather than credit score. Rates will be higher with lower credit.
What can I use the funds for?
Most business purposes: equipment, inventory, payroll, marketing, expansion, working capital, or real estate. Some loan types restrict use of funds.
What interest rates should I expect?
Rates range widely: SBA loans 6–8%, bank term loans 8–15%, alternative lenders 10–50%, and merchant cash advances 30–200% APR equivalent. Your rate depends on credit, revenue, and loan type.
What fees are involved?
Common fees include origination fees (1–5%), prepayment penalties (some lenders), and broker fees. Closer Capital is transparent about all fees upfront.
Can I pay off my loan early?
Depends on the loan agreement. Some lenders charge prepayment penalties, others don't. Ask about prepayment terms before signing.
What loan amounts are available?
From $5,000 micro-loans up to $5M+ for commercial real estate. Most small business loans range from $25,000 to $500,000.
What documents do I need?
At minimum: 3–6 months bank statements, business formation documents, personal ID, and voided check. Larger loans may require tax returns and financial statements.
Do I need to have a business entity (LLC, Corp)?
Most lenders require a registered business entity. Sole proprietors may qualify for some programs but having an LLC or corporation improves approval odds.
Can startups get financing?
Startups under 6 months old have limited options. Equipment financing, personal loans for business, and some revenue-based programs may be available.
Will I need a personal guarantee?
Most small business loans require a personal guarantee, meaning you're personally liable if the business defaults.
How does Closer Capital make money?
Closer Capital earns a broker fee from lenders when a loan closes. This fee is paid by the lender, not the borrower, and doesn't increase your loan cost.
Are you a lender?
Closer Capital is a broker, not a direct lender. We match businesses with the right lenders from our network to find the best rates and terms.
What if I'm not approved?
We'll tell you why and what to work on. We can often suggest alternative paths — improving credit, reducing debt, or trying a different loan type.
Can I work with you if I'm already working with another broker or lender?
Yes. We can review your current offers and let you know if we can find better terms. There's no obligation to work exclusively with us.

Ready to get funded?

Apply once and get a clear funding offer in 24–72 hours — no hard credit pull to pre-qualify.

Apply Now — It's Free →