Answers from Tealwood Funding Group in St. George, Utah to common business funding questions: underwriting, amortization, first-time loans, merchant cash advances and what to know before signing.
What Is a Business Loan Underwriter for a St. George, UT Auto Repair Shop?
An underwriter is the person at a funding partner who reads a request and decides whether it meets the partner's rules. For an auto repair shop, the underwriter looks at deposits, existing debt payments, time in business, credit history and any equipment being financed.
The underwriter may ask questions or request more records. Answering them fully and early keeps the review moving.
What Is Amortization on a Term Loan? What It Means for a St. George, UT Motel
Amortization is the schedule by which each payment on a term loan splits between interest and principal. In the early months a larger share of each payment goes to interest, and that share shrinks with every payment. On a seven-year loan at about 10%, interest is roughly half of the first payment, and about a tenth of the balance is paid down in the first year (our arithmetic).
Request the full amortization table with every offer you receive. It shows the balance at any month, which matters if you might refinance or sell.
What to Know About a Business Loan Before a Washington County, UT Grocery Store Signs
Before a grocery store signs, check the total cost (interest and fees over the term), the payment frequency, any prepayment fee, the collateral and liens, and any personal guarantee. A business loan affects the owner as well as the store.
Compare at least two structures where possible. The grocery store page covers coolers and case-lot buys.
Can a Washington County, UT Contracting Business Get Its First Business Loan?
Yes, if it is an operating business with a track record. A contracting business with deposits, returns and completed jobs can request its first loan; partners read that history. Tealwood does not arrange startup loans for businesses with no operating history.
Equipment financing is a common first loan, because the machine secures it. See equipment financing.
Is a Merchant Cash Advance a Loan? Checking the Fit for a St. George, UT Retail Store
No. A merchant cash advance is a purchase of future card receipts at a discount. It is not a loan, and it is collected from card sales rather than paid in installments. A retail store with steady card sales can compare it with a working capital loan.
The merchant cash advance page works through the figures.
By Tealwood Funding Group · Updated