Let's say you just opened your small business. You just paid a hefty deposit on your commercial mortgage or commercial lease for your business location, and now you’re stressed about having enough capital in the bank to keep the operation afloat. What do you do if the business needs new (or even used) equipment in a situation like this?
Even if you have an established small business, you may still at times need small business financing to fight back against a cash flow dip. In situations like these, the need for external financing becomes crucial. This is where the short-term lenders come in handy because the banks have stringent loan qualifying conditions. Besides, unlike banks, these lenders do not take entire weeks to reply to your loan application.
This article will introduce you to one of our favorite lenders of all time. Channel Partner Capital is a lender that truly revolutionized the lending industry since it first started financing loans in 2009. This lender has earned its spot as one of the best lenders due to its fast loan approvals, easy renewals, and customer-friendly applications. Read on as we help you get your first equipment financed by Channel Partners Capital.
All About The Company
Channel Partners Capital was founded in 2009. Since then, the company has earned a reputation as one of the pioneer lending institutions that has successfully generated thousands of loans. Moreover, the company has generated loan receivables exceeding the good finger of $250 million.
Furthermore, the company has been included in the fastest-growing private companies in the US by Inc. Magazine. Channel Partners Capital has helped many small and medium-sized businesses get the crucial financing to take their businesses to the next level. The company has also been given an A-plus rating by Better Business Bureau (BBB).
The company has financed over $300 million in 7,000 transactions to small businesses. Channel Partners Capital especially focuses on meeting the financing needs of small and medium-sized business organizations.
The loan amount provided to Channel Partners customers ranges from $10,000 to $250,000. Channel Partners Capital provides credit facilities for futures use and working capital loans. Working capital loans are usually used to finance operational activities of a business, like rent and salaries of staff.
On the other hand, the credit facilities limit customers to draw from as the business needs cash for future activities. The line of credit works very simply. Once the existing credit limits have been used, the customer ought to repay existing loans before he can further use the credit lines. Credit lines are replenished as the existing outstanding amount is paid.
Unlike other competitors where the loan term is fixed (mostly monthly), at Channel Partners, customers have the option to choose daily, weekly, or monthly repayment schedules. This ensures flexibility for businesses that want to prepay their loans but often are dissuaded by prepayment fees charged by most lenders. Additionally, they can also get the right funding for their individual business needs.
Channel Partners has its customers located across the US. Most of the company's customers have used both the credit facilities and the working capital loans to finance the cash flows and equipment. Cash financing from Channel Partners Capital is received as soon as the application is sent. Also, the repayment schedule is pretty flexible and allows you to schedule the repayments to avoid brunt on your business.
Once the loan is guaranteed, Channel Partners doesn't impose additional conditions on its customers. The cash can then be used to scale up the business's cash flows, or it can also be used to finance crucial equipment. Channel Partners Capital financing is given to the businesses that operate in the following industries.
- Automotive repair and maintenance
- Restaurants/small Franchises
- Beauty salons
- Healthcare and medicine
There are still some industries that have been found too risky by Channel Partners Capital. These industries have been excluded from the list of those that Channel Partners finance. These include:
- Not-for-profit organizations
- Online gambling
- Adult entertainment
- Event planning
“Channel Partners Capital is famous for giving loans in a few hours”
Who Should Apply for Commercial Truck/Equipment Financing with Channel Partners Capital?
Channel Partners Capital understands the difficulties most small businesses face regarding financing. That's why the financing services are flexible, and they also keep in mind that individual businesses might be looking for different factors when it comes to their financing needs.
Like most businesses in the sector, Channel Partners Capital equipment financing is tied to three things. The company looks out for the cash flows of a business, the credit health of the business overall and how long the business has been in the industry.
In addition, Channel Partners Capital doesn't require that you draw the entire amount that has been approved. Even the credit facilities don't have to be used up to their limit. Rather, it's up to you to draw out cash when you need it as a business owner.
The borrowers are not supposed to draw the entire approved amount. Unused funds that have not been used are available to the customers for 90 days. Afterward, if the company has used the leftover funds within 90 days, then credit facilities can be replenished (subject to the payment of the previous financing).
Channel Partners Capital is famous for giving loans in a few hours. Most applicants (those who meet the financing criteria) hear a reply from the company within as much as 2–4 hours. However, the application approval is still subject to the approval of the documents.
Similarly, the funds are transferred immediately as soon as the documents are processed, and the application is finalized. You can take up the funds to finance your equipment in just one business day after being transferred to your account.
Channel Partners Capital does not impose any stringent conditions on how you should finance your business. Once the loan has been given, the customer can use the loan in several ways. The loan can be used to finance any business-related expense. Channel Partners Capital lists some of the uses of loan financing:
- Purchasing equipment or business inventory
- Repairing the equipment
- Giving salary to the staff
- Paying tax liabilities
Channel Partners Capital also allows loan stacking. It has a customer-friendly policy for stacking loans that allows loans up to the third position. As a business owner, if you are looking for multiple loans to carry at once, Channel Partners Capital can be the right option.
However, keep in mind that loan stacking comes with greater interest rates and other related costs. Nonetheless, if your business is of such a nature that there is an uptick in cash flows every once in a while, then you are in a position to take on more loans.
Loan for Working Capital Needs
To help businesses grow, Channel Partners Capital provides its customers with Working Capital loans. These loans help businesses finance their daily operation and meet their growth targets. These are short-term loans that help the business seize any opportunity that will steer the growth of the business.
Moreover, this may also ease the burden on the business when it comes to paying its liabilities. Channel Partners Capital provides up to $250,000 for Working Capital financing. This type of loan is usually approved in less than 24 hours.
Equipment Financing is used for financing much-need equipment for the business. This will enable businesses to preserve the cash for their day-to-day activities. Channel Partners Capital allows you to finance old as well as new equipment.
This financing comes at the lowest possible cost, and the repayment schedule is also pretty flexible so that the business' cash flows don't get dented. With a credit decision in less than four hours and a credit term of 12 to 60 months, Channel Partners Capital should be your go-to option for equipment financing.
How Do You Qualify for Channel Partners Capital Commercial Truck/Equipment Financing?
Sometimes taking on a new business venture or to propel your business in new markets, you need financing that will ease the burden off your business to set its foot in a new market niche truly. In such times, businesses need short-term lenders to help them get crucial financing.
Unlike traditional banks, where a borrower has to undergo excruciating documentation for a loan, short-term lenders will provide the loan faster. The loan application process will also be hassle-free.
However, there are still certain conditions that customers/borrowers have to fulfill before they can set their hands on the loan given by lenders like Channel Partners.
The following criteria have to be met to avail financing from Channel Partners Capital:
- Applicants must have at least 51% ownership of the business.
- The business in question should have been operational for a period equal to or exceeding one year.
- While there are no minimum credit score requirements, Channel Partners will still check your credit history before you can get financing. Extremely bad credit means you will not be given a loan.
- The business should have a diverse and steady stream of revenue.
If you meet the above criteria, you can apply for a loan at Channel Partners Capital and the supporting documents. The application will be processed in 2-4 hours, and you will receive positive feedback about your loan processing.
If the supporting documents have no issue, you will receive the funds right after your application is processed. On the other hand, funds will be available within one business day.
Remember that loan interest might be high if you have bad credit. Moreover, while Channel Partners Capital doesn't ask for specific FICO scores, it will still consider your credit scores before thinking about giving you a loan.
“At Channel Partners Capital, you will have your account executive that will help you navigate the entire financing process”
Channel Partners Capital Application Process
Channel Partners Capital requires several documents to consider your business for financing. Borrowers will first need to submit the application form and the business's bank statements for the preceding three months. The bank statements are needed to examine the cash streams of the business. 51% stake in the business and business standing of one year are also prerequisites for loan application.
Other information considered as a part of the loan application includes:
- Industry in which the business operates.
- Registered business name and the registered address of the business.
- Starting date of the business.
- The credit profile of the business owner.
- Voided check and the applicant's driver's license are also required.
After submitting the documents, Channel Partners Capital takes 2-4 hours to process the application. Afterward, funds are transferred if the documents have been successfully attested.
Interest Rates at Channel Partners Capital
Interest Rates, down payments, buyout agreements, etc., are pertinent parts of any equipment financing deal. Below we give you a rundown on all the pertinent details that will form a part of your equipment financing deal.
Interest Rates work differently when it comes to equipment financing. Unlike traditional loans, the loan repayment doesn't contain principal and interest here. Instead, the interest is charged as a decimal multiplier of the initially borrowed amount.
To better estimate the amount you will have to repay, multiply the amount borrowed with this decimal multiplier. Channel Partners Capital multiply rates range between 1.24 and 1.31.
In prepayment, the borrower will be given exemption from some interest payments. This is perhaps the best part of your deal with Channel Partners Capital. Unlike other lenders where you are charged a prepayment fee, if you repay the borrowed amount before the term set in the repayment schedule, no such fee is charged per y agreement with Channel Partners Capital. However, not all the remaining interest payments are forgiven. You may still have to pay a few of them.
Processing and filing the applications cost an additional fee. However, not all applications are charged the same fee. At Channel Partners Capital, the fee charged differs from deal to deal. Mostly, the fee is dependent on the amount you are going to borrow/or the size of your advance. The estimated amount of such a fee is usually 2.5% of whatever your loan amount is.
Like the documentation fee, the origination fee is contingent on the financing amount. It is calculated as a percentage of the financing amount. At Channel Partners Capital, to receive the cash advance, you will first have to pay 2% of the advance to cover the origination fee.
After the approval of the application, the loan is received in as much as a single day. As a borrower, you can withdraw the funds as and when you need them. Moreover, there is no additional condition to use the full loan amount.
The loan amount left unused will be taken back by Channel Partners Capital. Unused funds are present in your account for 90 days before they are taken back. Additionally, the renewal policy is pretty simple. You can renew the financing if you have paid at least 50 percent of the initially borrowed.
The repayment schedule can stretch from anywhere between 6 to 24 months. Renewal is contingent upon paying 50% of the financing. Also, the repayment term at Channel Partners Capital is quite flexible. You can choose to make payments daily, weekly, or monthly.
The company has a strong online presence and is rated favorably on TrustPilot. At Trustpilot, the company is rated 4.8 out of 5 stars. Furthermore, the company was ranked 500th out of 5000 fastest-growing companies by the Inc. Magazine US. The company maintained this rank for eight years.
One of the best things about Channel Partners Capital is that at Channel Partners Capital, you will have your account executive that will help you navigate the entire financing process. However, if you still have some confusion before starting, we will be glad to clear your confusion.
How much financing can I get if I apply for a Working Capital Loan at Channel Partners Capital?
The Working Capital financing can range from $10,000 to $250,000, depending on your business needs. Similarly, the repayment schedule for this type of loan is flexible. You can take 24 months (less than six months) to repay the loan.
How can the funds be used?
The Working Capital loans can be used for the following purposes:
- Remodeling the business facility
- Handling the emergencies
- Expanding business to new markets
- Any other business expenditures
How long does it take for Channel Partners Capital to finance the loan?
If you have presented all the documents required for the review, the decision is usually taken within 2 to 4 hours.
What are the prerequisites for a successful loan application?
Channel Partners Capital doesn't impose stringent requirements for a successful credit. Nevertheless, your business should at least have the following:
- More than 51 percent ownership
- Good personal credit history
- Business standing for at least one year
- Revenue streams that are not only consistent but also diverse
Can I receive the funding on the same day when I apply?
Yes. Subject to the successful review of the documents, the funding can be received on the same date. If you have submitted all the required documents, the credit decision will take a few hours. Afterward, the cash will be electronically sent to your bank accounts. You can use the cash usually the next day after it is transferred.
What documents should I submit with my application form?
Before funding, the documents needed for submission are a voided check, your business's bank statements for the last three months, and your driver's license.
Do I have to use all the funds?
No. If you don't need all the funds, you can leave them unused. The funds will stay in your account for 90 days before they are taken back by Channel Partners Capital. However, you will have to pay 50 percent of the used amount to renew the funds.
Do I have to take all the funds at once?
No. You don't have to take all the funds in one go. Moreover, you can take the help of your account executive to structure the funding. The account executive will structure the funds so that they can meet your business needs.
Am I eligible to apply for more funds once I have used the ones I have been allotted?
Yes. You can avail of additional funding. But to do so, you will first have to repay 50 percent of the funds you borrow in the first place. After at least 50 percent of your initial borrowing is repaid, you can apply for additional funding.
How do I repay the Working Capital loan?
The repayment is based on deductions. Usually, the amount is deducted from your business bank account. The deductions are based on what has been agreed between the two parties in the contract terms.
What does Channel Partners Capital finance?
Channel Partners Capital offers two types of financing. The first one is equipment financing; you are given a loan to buy either new or used equipment needed for your optimal business operations. The second option is availing Working Capital loan. Working Capital loan is given to fix the general issues hindering you from performing to your optimum capacity. In either case, you have to submit the same application and other related documents needed to review.