iAdvance Now Business Financing Review
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iAdvance Now, an alternative lender based in New York, provides several types of financing to business owners, including those with low credit scores and minimal time in business.
Funding is available in both small and large amounts, and could be deposited in your bank account in a few days. Continue reading to find out if iAdvance Now could provide the right solution for your small business needs.
- What iAdvance Now offers
- Who is eligible for financing from iAdvance Now?
- Pros and cons of iAdvance Now
What iAdvance Now offers
A number of products are available from iAdvance Now. You could make your selection based on the amount of funding you need and how you’d prefer to repay the debt.
|Amount||Terms||APRs||Time to Funding|
|Business term loan||$30,000 to $200,000||12 to 60 months||6.99% to 26.99%||3 to 7 business days|
|Business line of credit||$1,000 to $250,000||6, 12, 18, 24 months||Factor rate from 1.05 to 1.15*||Same-day funding|
|Working capital cash advance||$2,500 to $2,500,000||3 to 36 months||Factor rate from 1.1 to 1.4*||Same-day funding|
|Accounts receivable factoring||$100,000 to $5,000,000||12 to 36 months||1.50% to 5.00% per month||1 to 2 weeks|
|Equipment financing||Up to $75,000||36 to 60 months||Starting at 11.00%||Varies|
|SBA 7(a) loans||$25,000 to $350,000||Up to 120 months||Prime rate plus 2.75%||2 to 4 weeks|
*Factor rates current as of publication date.
Business term loan
Terms loans are available between $30,000 and $200,000, with APRs ranging from 6.99% to 26.99%. Borrowers would make fixed monthly payments for one to five years. Funding could be available in as few as three days.
Business line of credit
A line of credit allows business owners to draw from a set amount of funds on an as-needed basis. Credit limits range from $1,000 to $250,000 and funding could be approved and distributed on the same day. iAdvance Now uses factor rates to express interest on its business line of credit. Factor rates are written as decimal figures and multiplied by the funding amount to show how much you would pay back in total. For instance, if you borrow $10,000 with a factor rate of 1.25, you would repay a total of $12,500. You could repay your balance on 6-, 12-, 18- or 24-month terms.
Working capital cash advance
iAdvance Now offers two types of cash advances, an ACH advance and a merchant cash advance. An ACH — Automated Clearing House — advance lets you borrow against future receivables. Payments are withdrawn daily or weekly directly from your business checking account. A merchant cash advance allows you to borrow against future credit card payments. iAdvance Now would take a percentage of each credit card transaction until your advance is paid back. Both ACH and merchant cash advances offer fast time to funding, and you may be able to combine both advances.
Accounts receivable factoring
Eligible business owners could borrow against unpaid invoices. Funding amounts for accounts receivable financing range from $100,000 to $5,000,000, depending on how many invoices you choose to sell to iAdvance Now. You’d receive a portion of your unpaid invoices within one to two weeks. When customers pay the invoice, iAdvance Now would collect a fee and you’d get the remaining amount. Interest would be calculated on a monthly basis and could be between 1.50% and 5.00%.
You could borrow up to $75,000 to cover the cost of new or used equipment. Interest rates for equipment financing start at 11.00% APR, and you would need to follow a monthly payment schedule.
SBA 7(a) loans
iAdvance Now partners with the U.S. Small Business Administration to issue loans within the SBA’s 7(a) program for general business financing. SBA-backed loans are available between $25,000 and $350,000. The SBA determines interest rates, which are currently based on the prime rate plus 2.75%. Funds are available in two to four weeks with up to 120 months-amortization terms.
Additionally, iAdvance Now offers a business credit card to startup businesses that have yet to generate revenue. On the other end of the spectrum, high-revenue businesses — those making between $5 million and $75 million annually — could apply for iAdvance Now’s revenue-based financing designed for special circumstances.
Who is eligible for financing from iAdvance Now?
iAdvance Now works with established businesses that generate consistent monthly revenue. The specific requirements depend on the type of financing you’re seeking.
|Min. revenue requirements||Min. personal credit score||Min. time in business|
|Business term loan||$10,000 monthly gross revenue||650||2 years|
|Business line of credit||$50,000 annual gross revenue||500||3 months|
|Working capital cash advance||$8,000 monthly gross revenue||500||3 months|
|Accounts receivable factoring||$1 million annual gross revenue||N/A||1 year|
|Equipment financing||N/A||N/A||3 months|
|SBA 7(a) loans||$10,000 monthly gross revenue||650||2 years|
Equipment financing eligibility would be based on the equipment you plan to finance, which must be described in your application.
In addition to your loan application, you may need to submit the following documents:
- Three to four months’ worth of business checking account statements
- Four months’ worth of merchant processing statements
- Two to three years of personal and business tax returns
- Profit and loss statement
- Balance sheet
- Debt schedule
- Accounts payable and accounts receivable reports
iAdvance Now lends to companies in a variety of industries, including:
- Auto repair
- Hotels and motels
- Liquor stores
- Medical offices
- New and used car sales
- Nightclubs and bars
- Salons and spas
- Wholesalers and distributors
Businesses ineligible for financing
All iAdvance Now products require at least some time in business, meaning startup businesses are not eligible for most iAdvance Now financing. However, the three-month minimum for lines of credit, cash advances and equipment financing is fairly lenient, compared to lenders that require at least six months in business.
iAdvance Now’s credit requirements are also relatively lenient, as low-credit applicants could qualify for a line of credit or cash advance — but anyone with a personal score below 500 would be out of luck.
Pros and cons of iAdvance Now
Before pursuing funding from iAdvance Now, consider these advantages and drawbacks.
|Convenient online application. Though several documents may be required, you can apply online.||Opaque website. Many details about loan products, such as amounts, interest rates and fees, are not readily available online.|
|Low credit requirements. Applicants with less than perfect credit may be able to qualify for funding.||No startup financing. Brand-new businesses would not be eligible for most types of funding. Startups would be eligible for iAdvance Now’s business credit card.|
|Multiple products available. A wide selection of financing options provide solutions for a range of business needs.||Slow time to funding. Just two products provide same-day funding. The others may take a few days or weeks to be disbursed.|
Does iAdvance Now charge origination fees?
Yes, borrowers owe origination fees when taking out financing. However, the lender does not disclose fee amounts. You may not know how much you’ll owe until you submit an application.
Is a merchant cash advance worth it?
iAdvance Now’s cash advance has the most lenient requirements and fastest time to funding. But a merchant cash advance comes with risks, including fast repayment terms and potentially high interest rates. Make sure you can afford and keep up with a daily repayment schedule before taking on a merchant cash advance.
Can I prequalify for financing?
Yes, you can prequalify for financing between $2,000 and $1 million when you apply online. There is no cost to submit an application, and you don’t need to provide collateral before receiving a loan offer. Prequalification does not require a hard credit pull, though the lender may make a hard inquiry before determining your final loan offer. You may also have to give a personal guarantee, a requirement for many alternative lenders.