Business Funding FAQ — Every Question,
A Straight Answer.

Business loans ($5K–$5M), business lines of credit ($5K–$1.5M), equipment financing ($5K–$500K+), SBA 7(a) loans ($50K–$5M), business credit stacking ($50K–$250K), and merchant cash advances. Each product has different qualification requirements, timelines, and payment structures. Your advisor matches you to the right fit based on your business profile.

It depends on the product. Business lines of credit and business loans: same-day to one week. Equipment financing: 24–48 hours after approval. Merchant cash advances: 1–3 business days. Credit stacking: 2–3 weeks to build the full stack. SBA loans: 2–6 weeks depending on the program. Your advisor gives you a realistic timeline upfront based on your specific situation.

Minimums vary by product. Business loans: 550+. Lines of credit: 600+. Equipment financing: 580+. SBA loans: 660+. Business credit stacking: 700+ FICO. Merchant cash advances: 500+. These are entry-level minimums across our lender base. Many programs require higher scores for better terms. Your advisor reviews your full profile, not just your score.

Funding amounts depend on revenue, time in business, credit profile, and product type. Business loans go up to $5M. Lines of credit up to $1.5M. Equipment financing up to $500K+. SBA up to $5M. Credit stacking up to $250K. The best way to find out is to apply. There is no cost and no hard credit pull for prequalification.

No. Huge Capital uses soft credit pulls for prequalification. A hard inquiry only happens if you accept an offer and move forward with a specific lender. Your advisor explains this before anything hits your credit report.

For most products: 3–6 months of business bank statements, basic business info (legal name, EIN, revenue, time in business), and owner information. SBA loans require more: tax returns, profit and loss statements, debt schedules, and a business plan for acquisitions. Merchant cash advances typically need only 3 months of bank statements. Your advisor tells you exactly what is needed for your situation.

No. There is no fee to apply, no fee for prequalification, and no fee for advisory consultation. If a specific lender charges origination or processing fees, those are disclosed in the offer terms before you accept anything.

Credit stacking uses your personal credit to open multiple business credit lines at 0% introductory APR for 7–21 months. Typical approvals range from $50K–$150K. Exceptional profiles (750+ FICO) can access up to $250K. It works best for startups, pre-revenue businesses, or owners who want low-cost capital without traditional loan payments. Requires 700+ personal FICO. No revenue or time in business required.

Yes, depending on the product. Credit stacking works for businesses regardless of revenue or time in business. Some business loans and lines of credit are available at 6+ months in business if revenue supports it. SBA loans typically require 2+ years. Merchant cash advances generally need 3+ months of processing history. Your advisor identifies which options match your stage.

Yes. Existing debt is factored into your qualification, but it does not automatically disqualify you. In some cases, we can help consolidate or refinance existing debt to improve your terms and reduce total cost. Your advisor looks at the full picture.

Fix and flip loans (up to $10M, 6–18 month terms), ground-up construction loans (up to $10M, 12–24 month terms), DSCR rental loans (up to $5M, 30-year fixed), and bridge loans. Each program is designed for a specific investment strategy and underwritten primarily on the property, not your personal income.

DSCR stands for Debt Service Coverage Ratio. These loans qualify based on the property's rental income, not your personal income or tax returns. If the property's rent covers the mortgage payment (typically 1.0x or higher DSCR), you can qualify. Up to $5M, 30-year fixed terms, no income documentation required. This makes them ideal for investors who show low personal income on tax returns but own cash-flowing properties.

Yes. Most lenders in our network accept short-term rental income for DSCR qualification. Documentation requirements differ from traditional rentals. You may need to provide booking history, property management agreements, or projected income from platforms like AirDNA. Your advisor matches you to lenders that specialize in STR properties.

Yes. Most DSCR lenders allow closings in an LLC, which is a major advantage over conventional financing. This provides asset protection and keeps the loan off your personal credit report. There is no limit on the number of DSCR loans you can hold, unlike conventional mortgages which cap at 10 properties.

Fix and flip loans go up to 95% of purchase price (loan-to-cost) for experienced investors with strong profiles. First-time flippers typically need 10–25% down. Rehab costs can be funded up to 100% and disbursed in draws as work is completed. Exact leverage depends on your experience level, credit score, and the deal specifics.

Not always. First-time investors can qualify for certain programs, though leverage and rates may reflect the higher risk. For fix and flip: first-time flippers are accepted with a solid credit score and project plan. For construction: first-time builders can qualify with 680+ credit. Experienced investors with 3+ completed projects get the best terms. Your advisor matches you to lenders that work with your experience level.

Construction and fix-and-flip loans disburse funds in stages as work is completed. You submit a draw request, the lender sends an inspector to verify the milestone, and funds are released. You only pay interest on the amount disbursed, not the full loan amount. This keeps carrying costs lower during the build or renovation phase.

A merchant cash advance (MCA) is a purchase of your future business receivables, not a loan. A funding company advances capital in exchange for a percentage of your daily or weekly revenue until the purchased amount is repaid. Because it is technically a purchase agreement, MCAs are structured differently than loans: no fixed term, no interest rate, and repayment fluctuates with your revenue.

A factor rate is expressed as a decimal (typically 1.1–1.5) and represents the total repayment multiplied by the advance amount. A factor rate of 1.3 on a $100K advance means you repay $130K total. Unlike interest rates, factor rates do not decrease if you pay early (unless the contract includes an early payoff discount). To compare MCA costs to a loan, convert the factor rate to an annualized percentage. A 1.3 factor rate over 6 months is roughly equivalent to 60% APR. Your advisor breaks down the true cost before you accept any offer.

MCA repayment is collected automatically through one of two methods: a fixed ACH withdrawal from your business bank account (daily or weekly), or a percentage holdback on credit card transactions (typically 10–20% of daily sales). Fixed ACH is more common. The repayment amount stays consistent with ACH withdrawals, while percentage-based holdbacks fluctuate with your sales volume.

MCAs make sense when you need capital fast (1–3 days), your credit score is below 550, you have been declined by traditional lenders, or you need short-term working capital and your daily revenue can support the repayment. Traditional loans make sense when you have time (1–4 weeks), qualify for lower rates, and want fixed monthly payments over longer terms. MCAs cost more than traditional financing. Your advisor will always present lower-cost options first if you qualify.

Yes. If your business profile has improved since taking the MCA (higher revenue, better credit, longer time in business), you may qualify for a lower-cost product like a business loan or line of credit to pay off the MCA balance. Refinancing makes sense when the savings from a lower rate outweigh any remaining payback on the original advance. Your advisor evaluates whether refinancing actually saves you money.

Stacking MCAs (taking multiple advances simultaneously) compounds daily payment obligations and can create a cash flow crisis. If you are paying $500/day on one MCA and add a second at $400/day, you now owe $900/day regardless of revenue. We advise against stacking. If you are already stacked, we work on consolidation strategies to reduce your daily outflow and move toward a single, more manageable payment.

MCAs are not classified as loans under federal law, which means they are not subject to state usury caps or Truth in Lending Act (TILA) disclosure requirements in most states. However, several states (including California, New York, Virginia, and Utah) have enacted disclosure laws requiring MCA companies to provide standardized cost disclosures. Huge Capital works with funders who provide clear, transparent terms regardless of state requirements.

Rates vary significantly by product and risk profile. Business loans: factor rates from 1.1–1.5 or APR from 8–30%+. Lines of credit: 0.5–4% monthly. Equipment financing: APR varies by equipment type and term. SBA loans: Prime + 2.75% (currently among the lowest rates available). Credit stacking: 0% APR for 7–21 months. MCAs: factor rates from 1.1–1.5. Your specific rate depends on credit score, revenue, time in business, and the lender's underwriting.

It depends on the product and lender. Most business loans through our network have no prepayment penalty. SBA loans have no prepayment penalty on loans under 15 years. Some MCAs do not reduce the total payback for early repayment unless an early payoff discount is built into the contract. Equipment financing varies by lender. Your advisor discloses any prepayment terms before you accept an offer.

APR (Annual Percentage Rate) is the annualized cost of borrowing, including fees and interest. It is the most accurate way to compare financing options because it normalizes different pricing structures. A factor rate of 1.2 on a 6-month advance is roughly 40% APR, while the same factor rate on a 12-month term is roughly 20% APR. Always compare APR, not just monthly payments or factor rates.

A fixed rate stays the same for the life of the loan. Your payment does not change. A variable rate is tied to a benchmark (usually Prime Rate) and can increase or decrease over time. DSCR loans are typically 30-year fixed. SBA loans can be fixed or variable. Lines of credit are often variable. Fixed rates provide predictability. Variable rates may start lower but carry the risk of increasing. Your advisor explains which structure fits your situation.

Multiply the total repayment amount (principal plus all fees and interest) and compare it to the amount received. For loans: look at APR, not just the monthly payment. For MCAs: multiply the factor rate by the advance amount to get total repayment, then annualize it based on the expected repayment period. A $100K advance with a 1.3 factor rate repaid over 8 months costs $30K and equates to roughly 45% APR. Your advisor provides a full cost breakdown on every offer.

Step 1: You apply online or speak with an advisor. Step 2: We review your profile and match you to the best-fit programs from 100+ lender options. Step 3: You receive offers with clear terms and a full cost breakdown. Step 4: You choose the offer that works, and funding happens according to the product timeline. One application, multiple options, one dedicated advisor.

Banks offer one set of products with one set of underwriting criteria. If you don't fit, you get declined. Huge Capital works across 100+ lending programs and 13+ product types. Your advisor finds the right match for your specific situation. One application gives you access to options you would not find on your own. We also move faster than banks. Most banks take 30–90 days. Many of our products fund in days.

In most cases, no. Broker compensation is typically built into the lender's pricing or paid by the lender directly. You receive the same rate whether you go direct or through us. The advantage of a broker: one application gives you access to 100+ programs. Going direct means applying separately to each lender, each with its own underwriting, each with its own timeline. A broker saves you time and often finds better-fit options.

Look for transparency. A reputable broker discloses all costs upfront, never charges application fees, explains the difference between products honestly, and does not pressure you into a specific offer. Red flags: upfront fees before approval, no physical address, unwillingness to explain terms in plain language, or pushing the most expensive product first. Huge Capital provides a full cost breakdown on every offer and your advisor walks through each option before you decide.

You work with a dedicated funding advisor from start to finish. They review your application, explain your options, and guide you through closing. You are not passed between departments or assigned to a queue. Direct phone, email, and text communication with the same person throughout.

Most industries qualify. Common clients include construction, restaurants and food service, medical and dental practices, e-commerce, trucking and logistics, professional services, manufacturing, real estate investors, retail, and auto repair. Some higher-risk industries (cannabis, firearms, adult entertainment) have limited options. Your advisor lets you know upfront what is available for your industry.

Some products are available with credit scores as low as 500+. Merchant cash advances and certain revenue-based products focus primarily on business cash flow rather than personal credit. Terms and rates reflect the risk profile. If your credit is below 550, options may be limited to shorter-term products. Your advisor is upfront about what is realistic for your situation and will not waste your time on products you will not qualify for.

Not for most products. Business lines of credit, business loans, credit stacking, and MCAs are typically unsecured. Equipment financing uses the equipment as collateral. SBA loans may require business assets or real estate. Real estate loans are secured by the property. Your advisor explains what is required for each option.

Minimums vary. Business loans: $100K+ annual revenue. Lines of credit: varies by lender. Equipment financing: $150K+ annual. SBA loans: $500K+ annual for strongest terms. Credit stacking: no revenue required (personal credit is the qualifying factor). MCAs: $10K+ monthly revenue. These are general minimums. Actual requirements depend on the specific lender and program.

It depends on the product and the status of the lien or discharge. Some lenders work with resolved tax liens. Bankruptcy must typically be discharged for 1–2+ years depending on the product. SBA loans generally require 3+ years post-discharge. MCAs and some revenue-based products may be more flexible. Your advisor reviews your specific situation and is honest about which options are available.

For most products, you need an active business with a business bank account. Sole proprietors can qualify for many products. Credit stacking specifically requires an LLC or Corporation and an EIN. Real estate loans can close in personal name or LLC depending on the lender. Your advisor advises on entity structure based on which product you qualify for.

A direct lender funds loans from their own balance sheet. They offer one set of products with one set of criteria. A financing broker like Huge Capital works across a network of 100+ lenders and matches your profile to the best-fit program. One application gets reviewed against multiple options. The advantage: you see more options, get matched faster, and avoid applying separately to multiple lenders.

Your application is reviewed by your dedicated advisor first. They identify the best-fit programs before submitting to any lender. Your information is only shared with lenders where you have a realistic chance of approval, and you are informed before any submission. We do not blast your application to dozens of lenders.

Yes. Bank declines are one of the most common reasons clients come to us. Banks have narrow underwriting criteria. A decline from one institution does not mean you are unfundable. We work across 100+ programs with different qualifying criteria. In many cases, clients who are declined by their bank receive multiple offers through our network.

Your advisor stays in touch. As your business grows or needs change, they help you access additional capital, refinance to better terms, or stack new products. Many clients return for multiple rounds of funding. The relationship does not end at closing.

Yes. Many clients access additional capital within 3–6 months of their first funding. Performance on your current obligation (on-time payments, revenue growth) strengthens your profile for the next round. Your advisor proactively reviews your file for upgrade opportunities.

Contact your advisor immediately. Options may include restructuring your payment schedule, refinancing into a longer term, or consolidating multiple obligations into one payment. Ignoring payment issues makes them worse. Your advisor works with you and the lender to find a resolution before the situation escalates.