Readycap Lending Small Business Loan Review
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As a member of the SBA Preferred Lender Program (PLP), Readycap Lending LLC is positioned to provide expertise and a streamlined process to help clients apply for SBA backed loans. Readycap is unique in that they only seem to process government loans for small business period. They are very focused and divide their clients into wanting to start a business, supporting an existing business or acquiring a business
Understanding Your Loan Options
The Readycap 7(a) loan program has flexible parameters to accommodate most requests. A 7(a) loan cannot have a revolving provision and the maximum loan size is $5,000,000. The term of the loan is dependent on the purpose of the request; typically, working capital loans range from seven to ten years, while real estate can be as much as twenty-five years. The SBA provides the lender with a 75% – 90% guaranty, depending on the request.
SBA defines a small business for the 7(a) program by certain size standards. These include limitations based on sales or number of employees depending upon the industry classification of the business. For example, in the manufacturing industry the number of employees can be a maximum of 250 to 1,500 depending upon the industry code (SIC). The wholesale industry cannot exceed 100 employees. Most service/retail oriented business cannot exceed a range of $30.0 million per year in sales which can be averaged over the past three years. There are exceptions dependent upon the type of business. Read more about how to get funding to start a business.
Speed of Implementation and Loan Duration
Normally SBA loans can take easily up to 64 days to get approval, and that is after all of the applicant’s documents have been turned in to the lender. However, Preferred Lender status gives Readycap the authority to assess, document, approve and ultimately close the loan without direct SBA approval or review. From completed application to funding is probably more like thirty days because of the company’s Preferred Lender status.
The duration of 7(a) loans varies based on the nature of the loan and the amount. For example, there is a small 7(a) program that assumes a secured loan for less than $100,000 which takes less time and paperwork to acquire. The other extreme is probably a real estate loan for up to 5 million dollars that has a term of twenty-five years.
Fine Print and Final Thoughts
Readycap is a good place to look for small business capital if you fall into one of their lesser used categories. The fact that they offer startup funding and acquisition funding helps them stand out from the pack.
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.