Loan FAQ Library

Business

What is the difference between debt and equity business financing?

Debt financing means borrowing money that must be repaid with interest — loans, lines of credit, bonds. You retain full ownership of your business but have fixed repayment obliga...

Read full answer →

Business

What is a business acquisition loan?

A business acquisition loan provides financing to purchase an existing business. SBA 7(a) loans are the most common financing tool for acquisitions, offering up to $5 million with...

Read full answer →

Business

How does business cash flow affect loan approval?

Cash flow is the single most important factor most business lenders evaluate. Lenders want to see that your business generates sufficient cash to service the new debt payment plus...

Read full answer →

Business

What is franchise financing?

Franchise financing funds the purchase of a franchise business, covering the franchise fee, build-out costs, equipment, initial inventory, and working capital. SBA 7(a) loans are t...

Read full answer →

Business

What is revenue-based financing?

Revenue-based financing (RBF) provides capital in exchange for a percentage of ongoing monthly revenues until a predetermined repayment cap is reached. Unlike MCAs which focus on c...

Read full answer →

Business

What is microfinancing for small businesses?

Microfinancing provides very small loans (typically $500–$50,000) to entrepreneurs and small business owners who do not qualify for traditional bank loans, often due to lack of c...

Read full answer →

Business

How long does a business loan approval process take?

Business loan approval timelines vary widely by lender and loan type. Online lenders and fintech platforms can approve and fund in as little as 24–72 hours for smaller amounts. T...

Read full answer →

Credit

What minimum credit score do I need to get a mortgage?

Minimum credit score requirements vary by loan type. FHA loans accept scores as low as 500 (with 10% down) or 580 (3.5% down). VA loans have no official floor but most VA lenders r...

Read full answer →

Credit

How can I quickly improve my credit score before applying for a loan?

The fastest credit score improvements typically come from: paying down revolving credit card balances (reducing credit utilization below 30%, ideally below 10%); disputing and corr...

Read full answer →

Credit

What factors affect my credit score the most?

FICO scores are calculated using five factors: payment history (35%) — whether you pay on time — is the most important; credit utilization (30%) — how much of your available...

Read full answer →

Credit

How long does negative information remain on my credit report?

Most negative information remains on your credit report for 7 years from the date of first delinquency. This includes late payments, collections, charge-offs, and most civil judgme...

Read full answer →

Credit

What is the difference between FICO Score and VantageScore?

Both FICO Score and VantageScore are credit scoring models that use information in your credit report, but they were developed by different companies. FICO was developed by Fair Is...

Read full answer →

Credit

How does a credit inquiry affect my credit score?

A hard inquiry — when a lender pulls your credit to make a lending decision — can lower your FICO score by 2–10 points and stays on your report for 2 years, though most scori...

Read full answer →

Credit

What is credit utilization and what percentage should I aim for?

Credit utilization measures how much of your available revolving credit you are using, expressed as a percentage. If you have a $10,000 credit limit and a $3,000 balance, your util...

Read full answer →

Credit

Can I get a loan with no credit history?

Getting a loan with no credit history is challenging but possible. FHA loans accept borrowers who cannot produce a traditional credit score and allow alternative credit references...

Read full answer →