Business funding FAQ

A loan is money you borrow and repay with interest over a set term. A merchant cash advance is not a loan. The funder buys a portion of your future receivables for a lump sum today. You pay it back through daily or weekly remittances from your sales, and the cost is set by a factor rate.

No. Checking your options uses a soft credit check, which does not affect your credit score. If you choose an offer and move forward, the funder may run a full credit check before closing. Your funding specialist will tell you before that happens so there are no surprises.

Underwriting decisions often come back in under 24 hours. Once you’re approved and sign, your file can fund in as little as 24 hours, often the next business day. Timing is set by the funder and depends on the product. SBA loans and real estate loans take longer because they need more paperwork and, for property, an appraisal.

For business funding, start with your last 3–6 months of business bank statements, a photo ID and basic business details like your EIN and start date. Some products need more. Equipment financing needs a quote, and factoring needs your open invoices. For real estate, have the property address and your purchase, rehab or rental numbers ready.

Often, yes. We work with owners across a wide range of credit backgrounds, including past payment issues. Funders look at the overall health and potential of your business, not only your score. Lower credit can narrow your options or raise the cost, and your specialist will be upfront about what’s realistic.

It depends on your revenue and the product. For business funding, funders mostly look at your monthly deposits, time in business and existing balances. For real estate, it depends on the property value, the program and your experience. Fill out the application and we’ll show you what funders are offering for your file.

No. We don’t charge a fee to review your file or show you offers. Any costs tied to a specific offer are part of the funder’s terms, and you’ll see them in writing before you sign anything. If anyone asks you to pay just to apply, that’s a red flag.

No. Empire Merchant Funding is a commercial finance broker. We arrange financing through our funding partners and match you with the ones that fit your business. The funder makes the approval decision and sets the amount, rate, terms and timing. We stay with you through the process and help you compare offers.

No. An MCA is a commercial sale of future receivables. The funder buys a share of your future sales at a discount and collects through remittances. That’s why the cost is shown as a factor rate rather than an annual rate. The cost is fixed by the factor rate, and the total you’ll remit is written into the agreement before you sign.

Checking your options typically uses a soft inquiry, which does not affect your credit score. A funder may run a fuller credit review later in underwriting, but they focus mainly on your deposits and sales history. If credit is a concern, tell us up front and we’ll point you toward funders that are comfortable with your profile.

The amount depends on your revenue, time in business, credit and existing debt. Funders size the loan so the payment fits your cash flow. Strong, consistent deposits generally support larger amounts. We’ll give you a realistic range once we’ve seen your bank statements, rather than a number that falls apart in underwriting.

Short-term loans repay faster, often with daily or weekly payments, and are approved mainly on recent revenue. Longer-term loans have lower, usually monthly payments spread over more time, but funders want more paperwork and stronger financials. Pick based on how fast the money will earn its keep. A quick inventory buy and a building renovation call for different terms.

Both are revolving, but a line of credit usually lets you move cash straight to your bank account so you can pay vendors, payroll or rent that don’t take cards. Limits are often higher than on a card. Repayment terms depend on the program. Some lines have a set repayment period for each draw rather than a minimum monthly payment.

Yes, some funders offer lines to newer businesses. Expect a smaller starting limit and closer attention to your bank deposits and personal credit. A few months of steady revenue helps a lot. Once you show you repay on time, many funders will review the line for an increase. Tell us how long you’ve been open and we’ll point you to the right programs.

It depends on the funder, the equipment and your credit. Some programs finance the full equipment cost, while others ask for a down payment, especially on used equipment or when credit is weaker. A down payment can also lower your monthly payment. We’ll tell you what each funder requires before you commit to anything.

Yes, in many cases. Funders look at the age, condition and resale value of used equipment, and some set limits on how old it can be. Buying from a dealer is usually easier to finance than a private sale, but private-party deals can work with the right documentation. Send us the details and we’ll find a funder that takes it.

In most factoring arrangements, yes. Your customers are told to send payment to the factor, usually through a notice on the invoice. This is standard practice, and many large companies deal with factors routinely. A professional factor handles collections courteously. If keeping it private matters to you, ask about other options before you sign.

With recourse factoring, you’re responsible for buying back an invoice if your customer doesn’t pay. With non-recourse factoring, the factor absorbs the loss if a customer can’t pay because of insolvency, within the terms of the agreement. Non-recourse usually costs more. Read the agreement carefully, since the definition of a covered loss varies.

Longer than most business financing. Gathering documents, lender underwriting and closing all take time, and the overall timeline usually runs in weeks rather than days. Nothing prevents delays like a complete file at the start. If you need money sooner, ask about a short-term option to bridge the gap.

Rates depend on the program, the lender, the loan size and market conditions, and SBA sets maximums on what lenders can charge for many loans. We don’t quote rates on this site because they change and depend on your file. Your lending partner will give you a specific rate and terms once your application is reviewed.

No. These programs don’t require prior flipping experience. A first-time investor should expect the funder to look closely at the rehab budget, the scope of work and the contractor. A realistic budget with contingency built in, and comps that support your ARV, go a long way. Experienced investors may see better terms or leverage on some deals.

The renovation money isn’t handed over at closing. You complete a portion of the work, request a draw, and the funder sends an inspector to confirm progress before releasing funds. Some investors front the first phase themselves. Plan your cash flow and contractor payments around the draw schedule so the job doesn’t stall.

The loan amount is based on what the property is worth today, in its current condition. The funder won’t lend against a projected after-repair value. For investors, that usually means a simpler appraisal and a cleaner underwriting process. If your plan depends on value you’ll create through renovation, a fix and flip program is probably the better tool.

The minimum FICO for these bridge programs is 620. Credit isn’t the only factor. The funder also looks at the property’s value, the loan-to-value ratio and your exit strategy. A stronger score may help on pricing, but the deal itself carries a lot of weight in bridge lending, so bring solid numbers on the property.

Leverage in these programs depends on experience. Maximum leverage requires at least one completed construction project, and reduced leverage requires at least one fix and flip in the last 36 months. If you haven’t done either, talk to us about partnering with an experienced builder or starting with a fix and flip to build a track record.

The funder releases money in stages tied to the build schedule, such as foundation, framing and dry-in. Before each draw, an inspector checks that the work is done. Your builder needs enough cash or credit to reach each milestone before the draw arrives. A realistic draw schedule, agreed up front, keeps the project moving.

No. The decision is based on the property’s cash flow, not your personal income, so you won’t need tax returns or pay stubs to prove what you earn. The funder will still review your credit and ask for bank statements to confirm reserves and funds to close. Have your lease or rent estimate ready.

No. First-time homebuyers aren’t eligible for these programs. Funders want to see that you already own or have owned a home before financing a rental this way. If you’re buying your first home to live in, a conventional mortgage is the right product. Once you own a home, these programs may open up for your next investment property.

There’s no single number. What matters is the total loan amount, which runs from $750K to $10MM in these programs, and whether the combined cash flow supports the debt. A few higher-value properties or a larger number of smaller rentals can both fit. Send us your property list and we’ll tell you how it lines up.

No personal income verification is required. The funder underwrites the deal on the properties’ cash flow, meaning the rents compared with the debt payments and expenses. You’ll still need to show leases, a rent roll and property details. Credit and reserves may also be reviewed, so be ready to provide bank statements if asked.

Commercial funders are licensed and active in different states, and some programs carry state-specific rules or limits. A program available for a property in one state may not be offered in another, or may come with different terms. Send us the property location early. It’s the fastest way to know which programs are actually open to your deal.

Possibly. One of the private money programs we arrange has no minimum FICO and considers foreclosures, bankruptcies and discounted notes. Private money usually costs more than conventional financing and carries lower leverage, but it can close deals that banks decline. Be upfront about your credit history so we can send your file to funders that will consider it.