US Business Funding Small Business Loans Review

About US Business Funding

US Business Funding

At US Business Funding, we offer small business loans, ACH products, equipment financing and lines of credit for working capital. With over nine years in the industry, we have developed a great reputation when it comes to our expertise in equipment leasing, financing and working capital, and we will work with you to tailor our services and financial solutions to your specific needs, meaning we offer leases and working capital of anywhere from $10,000 to $500,000. The professionals at US Business Funding strive to help new business owners who are just getting started as well as larger companies that have already seen years of success. Any time you take advantage of our services, you can expect competitive rates, a quick turnaround time, and unparalleled customer service.

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What is US Business Funding?

For nearly a decade, Santa Ana, Calif.-based US Business Funding LLC has been helping public and private businesses secure funding. That money comes in several forms, including equipment leasing, working capital, vendor financing and U.S. Small Business Administration loans. With an application process that ranks business performance over credit score, the company can arrange funding for businesses with bumpy financial histories.


Lender highlights

Variety appears to be US Business Funding’s calling card. Potential borrowers will a number of options for equipment leasing and a few for working capital, which you can use to cover expenses while you wait for payments for completed work or business-related expenses, including marketing, legal fees, inventory and equipment.

Choose from loans, lines of credit and Automated Clearing House products, which also are known as merchant cash advances. The advances take a percentage of daily or weekly sales as repayment, so approach them with caution. They don’t require a guarantee, so lenders increase the cost to cover their risk. Be sure to look at the total repayment number, along with any fees tucked into the agreement, to calculate the money’s true cost.

Other than SBA loans — which come with strict requirements for borrowers — approval for US Business Funding’s other products is based on a business’ strength more than its credit score. That can open the funding door for businesses that have been turned down by traditional banks because of their spotty financial history. But because there’s more risk involved, businesses can expect to pay more for that money.

US Business Funding provides funding quickly — as little as 24 hours for repeat customers — and attentive customer service throughout the process. Its lease managers, for example, specialize in equipment types and focus on one of 24 industries, including transportation, manufacturing, restaurants and construction.


What US Business Funding offers

Equipment leasing

Most new and used business equipment — including software, furniture, computers and commercial vehicles — are eligible. Leasing frees up cash and credit for other expenses, and in some cases, your business might get a tax advantage. You can roll costs associated with the equipment, such as installation and training, into a lease. Here are the most common leases the company provides:

Fair market value. This is a perfect solution for equipment that rapidly decreases in value. The lease ends in one of three ways: returning the equipment, renewing the terms or purchasing the equipment at fair market value.

Dollar buyout. Equipment may be purchased for $1 at lease’s end, a good option for businesses that plan to keep it.

Wrap lease. US Business Funding customers can consolidate current and new leases with this option, possibly saving money in the process.

Business expansion. Businesses can use funds to equip a new location, as long as it’s in the same line of business and near the original location, which must be open at least five years.

Refinance program. Refinance leases for hard equipment.

New business. New businesses can get funding with the owner’s personal information and guarantee. The business must meet standard credit requirements, and ACH payments are mandatory.

Sale leaseback. Receive cash for equipment purchased within 90 days in exchange for a lease.

LEASE product LEASE amount Loan term APR range/ factor rate Fees Time to funding
Dollar Buyout $200,000+ with full financials; 100% financing 24 to 72 months Fixed rate, based on credit history, amount leased and term Not provided by the lender Within 48 hours of equipment delivery
Wrap Lease $75,000+ with full financials; 100% financing 24 to 72 months Fixed rate, based on credit history, amount leased and term Not provided by the lender Within 48 hours of equipment delivery
Business Expansion Up to $35,000 Not provided by the lender Fixed rate, based on credit history, amount leased and term Not provided by the lender Within 48 hours of equipment delivery
Refinance Program $10,000 to $75,000; more with full financials 24 to 60 months Fixed rate, based on credit history, amount leased and term Not provided by the lender Within 48 hours of equipment delivery
New Business Up to $15,000 for businesses open fewer than 12 months; up to $20,000 for businesses open 12 to 23 months 24 to 60 months Fixed rate, based on credit history, amount leased and term Not provided by the lender Within 48 hours of equipment delivery
Sale Leaseback $5,000 to $100,000; more with full financials 24 to 60 months Fixed rate, based on credit history, amount leased and term Not provided by the lender Within 48 hours of equipment delivery

Working capital

Amounts depend on a business’s strength more than its credit score. Its merchant cash advances, for example, are typically the same amount as the business’s monthly credit and debit card sales. Rates start at 3.5 percent, and terms can stretch 120 months.

product amount  term APR range/ factor rate Fees Time to funding
Working capital, which includes loans, ACH products (merchant cash advances) and lines of credit Amount determined by time in business, industry and monthly sales volume 3 to 120 months Start at 3.5% Not provided by the lender Funding within three business days, though established customers can receive funding in as few as one day

Rates current as of 7/5/2018

Vendor financing

US Business Funding also provides vendor financing, which enables customers to turn their businesses into a one-stop equipment and financing shop. It claims most companies see a 20 percent jump in sales during the first three to six months they offer the service. As a bonus, US Business Funding pays referrals based on a certain volume of commitments.

Financing applicants can receive approval almost immediately after submitting a one-page application. Rates are variable, determined by current economic conditions and each borrower’s credit risk. And like the company’s other leases, you can roll in soft costs — such as delivery, training and sales tax — for up to 20 percent of the equipment’s price.

Small Business Association loans

US Business Funding’s experienced staff can guide businesses through applying for SBA 7(a) and 7(a) Express loans. You can use these loans for commercial real estate, working capital, debt refinancing and other business-related costs. SBA loans are difficult to land, especially since requirements got more stringent after the Great Recession.

US Business Funding also arranges working capital to cover costs tied to leased equipment’s use. Businesses three to five years old might qualify for up to $15,000, and those that are at least five years old might qualify for up to $20,000. If you request capital in conjunction with a US Business Funding equipment lease, the total amount can increase to $25,000. Personal guarantees are required and you must meet standard credit guidelines. Terms of up to 36 months are available.


Eligibility requirements

Loan product Annual revenue Min. business credit score or personal credit score Time in business
Equipment Leases Not provided by the lender Not provided by the lender Most leases require at least two years, though strong businesses might qualify with less time. There is a program that can help businesses qualify with as little as six months.
Working Capital Not provided by the lender Not provided by the lender At least one year at the same location

Additional eligibility factors

  • Working capital applicants must be without outstanding bankruptcies and tax liens and not be on a payment plan.
  • Sale leaseback applications require equipment invoices and proof of payment.
  • Businesses must prove a satisfactory pay history on equipment leases they want to refinance.
  • Working capital applications also require three to six months of bank account statements and monthly Visa and Mastercard sales.

Businesses that are not eligible for US Business Funding loans

Two types of businesses are ineligible for US Business Funding’s working capital options: those in the adult industry and those that are completely web based. Although the company website doesn’t offer specifics, there are also certain industries that won’t qualify for a business expansion equipment lease.


How to apply for US Business Funding financing

Start with US Business Funding’s online loan calculator. It quickly estimates cost and term by using the amount you need and how you intend to use it. Be cautious when you review the result — it’s based on a business with strong credit.

If that deal works for you, fill out the simple online application, which requires:

  • Contact information
  • Business name
  • Gross annual sales
  • Number of years in business
  • Requested amount
  • Intended use of funds

Approval usually takes about 60 seconds. Once you’re approved, a senior financial consultant will call to answer questions and guide you through the process, which usually concludes within seven days.


Pros/Cons

Pros Cons
 Variety of loan products   More stringent requirements
  Approval not obased solely on credit score   Higher interest rates than traditional loans
  Knowledgeable staff, especially with leases and SMA loans   Takes longer than others in industry to receive funds

Who is the best fit?

US Business Funding might be a good option for small businesses that do not have stellar credit histories, especially if they need to lease equipment. With benefits geared toward repeat customers, developing a relationship could pay off down the road for businesses expecting to need different types of funding.


Fine print

US Business Funding connects potential borrowers with third-party loan service providers who set the funding’s terms and conditions. The cost of equipment financed through fair market value leases might provide a tax break under IRS Section 179, so check with an accountant to confirm. US Business Funding will fund leases for third-party sales, and you can pay off leases at any time.

Be sure to completely review any working capital offer. Many funding options aren’t loans, but rather advances on future receivables, such as credit and debit card sales. Payments are calculated as a percentage of those sales and are usually taken daily or weekly. The amount fluctuates with sales volume, so you can’t calculate an exact term for the advance.

Businesses can figure the total cost of the advance by adding the total repayment amount to any fees included in the deal. Owners won’t have to provide a personal guarantee, but they might have to give a performance guarantee, which promises they won’t sell, declare bankruptcy or take any other action that might harm the business. But even with that, there is no legal obligation to repay the advance.


The bottom line: How US Business Funding stacks up

US Business Funding offers more business funding options than many others in the industry, especially when it comes to leasing equipment. With a range of amounts and requirements, it offers options for almost any business, even new ones and those with poor credit. Be careful with this company’s working capital options, however, because some are merchant cash advances. Because these are not actually loans, they can easily exceed the cost and terms of traditional loans. Still, with better terms and delivery for repeat customers, any relationship could help down the road if you want to get an SBA loan.

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