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Taycor Financial Business Financing: 2021 Review
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Taycor Financial is a California-based small business lender. Compared with other lenders, it offers a wider range of products that often start at lower rates if you have good credit. It also offers relatively large loans, so if you find that some lenders aren’t willing to work with you based on how much you need, Taycor Financial might be worth a try. We’ll share some more information in this Taycor Financial review to help you decide whether the company is worth applying for financing with.
Taycor Financial overview: Amounts, rates and fees
Taycor Financial offers a wide range of lending products that cover just about anything you might need: loans and lines of credit for working capital, accounts receivable factoring, merchant cash advances, equipment loans, leases and refinances; and two types of SBA loans. Here’s a quick Taycor Financial review of products:
|Taycor Financial: Funding at a glance|
|Amount||Terms||Starting rate||Fees||Min. credit score|
|Equipment financing||$500– $2,000,000||12–84 months||3.49% interest rate||Document fee||550|
|Working capital loans||$5,000–$1,000,000||6–60 months||1.10 factor rate||0.00%–5.00% origination fee||500|
|Working capital line of credit||$10,000–$1,000,000||6–18 months||0.96 factor rate||0.00%–5.00% origination fee||560|
|Accounts receivable factoring||$5,000–$5,000,000||N/A||N/A||N/A||530|
|Merchant cash advance||$5,000–$3,000,000||2–24 months||1.15 factor rate||0.00%–5.00% origination fee||N/A|
|SBA loans||$5,000–$5,000,000||84–300 months||Rates vary, subject to SBA maximums||N/A||670|
Equipment financing makes up a big part of Taycor Financial’s offerings. The company offers equipment loans and leases from $500 to $2,000,000. You can also refinance equipment loans but the loan minimum is a little higher ($50,000). Finally, it offers sale leasebacks for amounts between $100,000 and $1.5 million. You may be required to provide a personal guarantee to secure a loan or lease.
Taycor Financial also offers a flexible payment arrangement with monthly, quarterly, semiannual or annual payments, and you may be able to defer payments for 90 days. You can also pay seasonally, or choose step-up payments if you’ll be seeing an increase in income over time.
Funding for all of Taycor Financial’s equipment loans is also lightning-quick: within four to 24 hours. Interest rates start from 3.49% for equipment finances or leases, and 6.5% for refinances and sale leasebacks. The maximum interest rate you’ll pay is 28%, which is a lower cap than many other lenders. On the downside, Taycor Financial does charge a “document fee,” although they do not specify how much this is.
Working capital loans
Taycor Financial offers a variety of working capital loans that vary in the type of loan, repayment terms and other requirements.
Taycor Financial also offers working capital term loans that you can use to purchase supplies, hire workers, advertise and more. Working capital loan terms can be as short as 6 months or as long as 60 months, and you can borrow between $5,000 and $1,000,000.
Taycor Financial charges factor rates for its working capital loans instead of interest rates, and factor rates can vary between 1.10 and 1.36. You’ll be responsible for making payments on either a daily or monthly basis, depending on your loan.
Taycor Financial doesn’t always charge origination fees, but when it does, the fee is up to 5.00% of the loan amount. If you are approved, your funding could arrive within four to 24 hours.
Line of credit
If you need to borrow money but you’ll need bits and chunks over time instead of a lump sum, a working capital line of credit might be more your style. Taycor Financial offers lines of credit for between $10,000 and $1,000,000, with factor rates ranging from 0.96 to 1.35.
You’ll have from 6 to 18 months to pay this line of credit off, with either weekly or monthly payments. When you apply you may be charged an origination fee of up to 3% (not everyone is charged an origination fee), and, if approved, you could receive access to your line of credit within four to 24 hours.
Accounts receivable factoring
Taycor Financial doesn’t have any information on its website about accounts receivable factoring, but according to a company rep, it does offer this service. You can borrow amounts starting from $5,000 all the way up to $5,000,000. Taycor Financial may require a personal guarantee on this financing option in some cases.
Merchant cash advances
Taycor Financial also offers merchant cash advances too, which can be handy to smooth out ebbs and flows in seasonal businesses. For MCAs, you may be able to borrow between $5,000 and $3,000,000. You may also need to put up a personal guarantee in some cases with MCAs as well.
Repayments are made weekly or even daily, and you’ll be charged a factor rate between 1.15 and 1.45. There may be an additional origination fee of 0.00% to 5.00%, too. If approved, like the rest of Taycor Financial’s offerings, you’ll typically receive funding in anywhere from four to 24 hours.
Another product that Taycor Financial doesn’t have listed on its site but does offer are two types of SBA loans: SBA 7(a) and SBA Express. The minimum you can borrow with both of these products is $5,000, ranging up to $5,000,000 for the 7(a) loan or $350,000 for the Express loan.
There are no fees with these loans, although you can expect to pay an interest rate ranging from prime plus 2.25% to prime plus 4.25% (for SBA 7(a) loans), or prime plus 4.5% to prime plus 6.5% (for SBA Express loans). These loans look like more typical bank loans, as payments are made monthly over the course of 84 to 300 months (seven to 25 years).
The downside is that approval takes longer than it typically does with government-backed loans. If approved, you’ll receive funding in four to six months (for SBA 7(a) loans), or one to two months (for SBA Express loans).
Taycor Financial requirements: Are you eligible?
Taycor Financial has relatively flexible requirements. In some cases, you may be able to get a loan even as a startup with no prior time in business. You also don’t need a good credit score, although having one will help you get lower rates.
- Minimum credit score: 670 for SBA loans, or 500-560 for Taycor Financial’s other products.
- Time in business: Equipment loans and leases can be made to startups, while other loan types require three months to five years in business.
- Annual revenue: As low as $4,000 per month for merchant cash advances up to $8,000 per month for working capital term loans.
Taycor Financial offers funding to a wide range of industries, including restaurants, agriculture, automotive repair shops, gyms, franchises, construction companies, software firms and more.
Taycor Financial will need to see your past bank statements and tax returns in order to consider you for financing. If you’re applying for accounts receivable factoring, you’ll need to provide an accounts receivable aging report as well.
Taycor Financial review: Should you apply?
Taycor Financial would be a good choice to add to your short list of lenders you’re considering if you’re looking for low rates and fast funding. At a minimum of four hours in funding time, you’ll be able to get your money as soon as the same day if you apply early enough and qualify. If you think you’ll need other types of lending products in the future, such as equipment loans or accounts receivable financing, Taycor Financial would also be a good choice since you’ll already have an established relationship with the company.
On the other hand, you may want to reconsider if you’re looking for a fee-free loan, as Taycor Financial might charge an origination fee. You might also want to avoid Taycor if you don’t want to personally guarantee the loan, although it may be hard to find an alternative small business loan like this without one.
Alternatives to Taycor Financial business financing
Taycor Financial has many options to choose from and favorable rates for well-qualified applicants, but it’s not the only small business lender out there. Here are a few others you might consider too:
Taycor Financial vs. CIT
CIT is very similar to Taycor Financial, offering many of the same products with many of the same features in terms of rates, term lengths, funding speeds and more. However, while CIT doesn’t advertise its rates for most of its products, it does start at a slightly higher rate for equipment financing (rates starting from 5.49% for CIT versus 3.49% for Taycor Financial).
Taycor Financial vs. National Funding
National Funding doesn’t offer as many products as Taycor Financial — just equipment financing and working capital loans. Taycor Financial has the advantage here because if you have bad credit you may be more likely to be approved for equipment loans. Taycor Financial only requires a credit score of 550, while National Funding requires a 575 credit score. National Funding also only funds smaller equipment loans of $150,000 max, versus Taycor Financial which funds equipment loans of up to $2,000,000.
Taycor Financial vs. Crest Capital
Crest Capital only provides equipment financing, and only for smaller amounts than Taycor Financial (from $5,000 to $500,000). Like most alternative lenders (Taycor Financial included), it doesn’t actually provide much information about its rates on its website. One advantage of Crest Capital is that if you’re applying for less than $250,000 worth of financing, you won’t need to provide any financial statements with your application.