American Finance Solutions Small Business Loan Review
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It’s no secret that every small business needs capital to grow and thrive. Whether you’re looking for money to buy new equipment, property, expand your inventory, or hire more staff, small business loans are a great choice. American Finance Solutions is one of the latest California-based small business lenders. Since 2006, American Finance Solutions in Anaheim, CA has been a provider of merchant cash advances to small- and mid-sized businesses.
The funding process is American Finance Solutions purchases your future credit card transactions and advances that money to you. After receiving your advance, AFS will deduct a small, fixed percentage of value from your daily credit card sales until the advance is paid in full. You keep 100% of your cash and check sales.
Understanding Your Loan Options
Specific information about the terms and conditions of an American Finance Solutions loan is a bit hard to come by, as they don’t have any information listed about specific loan conditions on their website. This lack of transparency moves them down in a bit in our view, as we’ve found companies with more transparency tend to have better customer satisfaction ratings.
Although they do not spell all of the particulars out, American Finance Solutions does say that if you have been in business for a year and have processed $5,000.00 in credit card receipts, they will probably approve the loan. Given their more holistic measures, AFS considers candidates who have been in business for less than a year or who have a low personal FICO score, yet have healthy daily credit card sales.
Speed of Delivery and Duration of the Loan
There is no fee for applying for a loan, and the algorithm used to calculate your eligibility is very thorough. In its 20 considerations, American Financial designed the algorithm to provide a quick and more well-rounded view of the applicant’s ability to repay. They are the sole and direct provider of funds, so there are no layers of external underwriters or reviewers. Learn more about how to get a start up business loan.
From their literature, the duration of the loan is negotiable based on monthly payment and interest charged for different durations. However there does seem to be conflicting information in their site about how long it takes to get the loan. Pre-approval in 24 hours, 10 business days to gather the appropriate documents, potentially including bank statements. Finally, another 10 business days from the completed contract to funds, depending on the total amount.
Fine Print and Final Thoughts
AFS has provided thousands of business owners in all 50 states with working capital and a flexible repayment process. They are primarily focused in retail and service industry loans, they seem like a potentially good lender for the right business.
Anne is a Senior Author for SBL. She began her career as an independent consultant for local businesses after graduating with a BA in Management. Since that time, she’s expanded to writing as well as consulting to spread helpful knowledge to small business owners across the country.