Compare before you commitCosts, terms and guarantees
Amounts and timing depend on eligibility, approval, a complete application, the product, and provider and bank processing. MicroCapital is a financing broker, not a lender.
01
Plan for a cash-flow cycle, not a permanent shortfall
A business line of credit allows borrowing within an approved limit, subject to the agreement. It can be useful when customer receipts arrive after supplier payments. Map the timing of invoices, collections and payroll over several months. A line that never returns toward a lower balance may be financing a longer-term need that deserves a different structure.
02
Compare the operating rules
Ask about the interest calculation, variable-rate changes, annual fees, review dates, minimum payments and any reporting requirements. Confirm whether funds can be redrawn after repayment. A secured line may involve inventory or receivables reporting; a provider may also request guarantees. Scotiabank’s business credit-line documentation illustrates how line and term-loan structures differ.
03
Separate equipment purchases from recurring expenses
A vehicle or machine used for several years may fit a term loan or equipment agreement better than a facility intended for short-term operating cycles. Compare the flexibility you need with the total cost and the risk of a facility being reviewed or changed. MicroCapital can discuss the financing request; no particular credit limit is promised.
04
Define how the balance will come down
Identify which customer receipts will reduce the drawn balance and when they are expected. A revolving facility used permanently at its limit may need a different plan. Ask about review dates, fees and conditions for maintaining access.
05
Start with the cash you actually need
Build a use-of-funds budget before comparing offers. Separate one-time purchases from recurring expenses and identify when each payment is due. Requesting more than the project needs can add unnecessary cost; requesting too little can leave the project unfinished. Keep a reserve for ordinary operating expenses and compare the net amount you would receive after fees.
06
Compare the agreement, not just the headline number
Ask for a written breakdown of the total repayment, fees, payment frequency and term. Identify any security, personal guarantee, renewal condition or restriction on additional borrowing. Ask what happens if sales slow down or you repay early. A lower periodic payment is not necessarily a lower total cost; compare offers using the same requested amount and a realistic cash-flow forecast.
A little clarity
Good questions. Clear answers.
Can I use the loan calculator for a revolving line?+
The site calculator models a fixed-rate amortizing loan. Revolving balances and changing rates require a separate projection.
How much financing can I request?+
MicroCapital advertises business financing from $5,000 to $1,000,000. The amount available depends on the product, your business and the provider’s assessment. Request an amount supported by your budget rather than assuming the maximum will be offered.
What affects the time to receive funds?+
Funding in 24–48 hours is available for eligible, approved requests, subject to a complete application and provider and bank processing. Missing information, verification or product requirements can change the timing.
Can a new business apply without established revenue?+
Ask which products, if any, are available for your stage of business. A provider may require operating history or revenue; a forecast does not automatically replace those requirements. Explain the start-up budget and owner contribution clearly.
Is a personal guarantee or security required?+
Requirements differ by provider and agreement. Ask which business assets or personal obligations are involved and what happens if payments are missed. Review the actual agreement before accepting; a product label alone does not establish its security requirements.
What should I compare before accepting an offer?+
Compare net funds received, total repayment, fees, payment frequency, term and early repayment conditions. Include existing debt in your cash-flow forecast and ask for unclear terms in writing.
From $5,000 to $1,000,000. Funding in 24–48 hours.
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For eligible businesses, subject to approval and a complete application. Amounts, pricing and timing depend on the product, provider and bank processing.
