Mintmead Funding, a small-business funding service in Louisville, Kentucky, answers common funding questions: what shapes small business loan rates, whether collateral is needed, how much can be borrowed, using a business loan for real estate, lines of credit and utilization, and how the request works.
How much are small business loan rates? Notes for Jefferson County, KY businesses
Why does this page not quote a rate?
Rates are set by each funding partner, offer by offer. They depend on the structure, the term, the collateral, the business's records and credit, and the partner's own pricing. A number quoted without those would mislead.
How should I compare rates?
Compare total dollars paid over the life of each offer, including fees, alongside the payment schedule. For a merchant cash advance, which is not a loan, compare the total to be remitted.
Do you need collateral for a business loan? What Louisville, KY owners should check
When is collateral part of an offer?
Equipment and inventory financing are secured by the items themselves. Term loans may be secured by the asset bought or by business assets. Some working capital and line of credit offers are unsecured but ask for a personal guarantee. The six structures compared page shows which is which.
Does a line of credit affect utilization? A short answer for Louisville, KY
Will drawing on a business line show up on my credit?
It can, depending on whether the partner reports the line to business or personal credit bureaus and how much of the limit you use. Ask the partner how the line is reported, in writing, before you sign. The line of credit page explains draws and maturity.
Can a Louisville, KY business line of credit cover payroll?
Yes, payroll is one use of a line. Pay the draw down as receivables arrive so the limit is free again.
How much can I borrow for a business loan? How it plays out in Louisville, KY
What sets the amount?
The partner sets it from the cost you document, the deposits that move through the business each month, time in business and credit. Ask for the documented need, not a round number.
Does the form ask how much I need?
Yes. The form asks for full name, phone, email, company name if you have one, and three required range picks: time in business, annual revenue and the amount you are requesting, plus a consent box.
Can a small business loan be used for real estate? Practical notes from Louisville, KY
Can a term loan pay for improvements to a building?
Yes; renovations and build-outs on the space a business uses are a term loan use. Buying property outright is a commercial mortgage question, which is outside the six structures on this site.
What about a leased space?
A partner will look at the lease's remaining term and the landlord's consent before funding improvements to it.
Do you need collateral for a small business loan? The view from Jefferson County, KY
What if I have no collateral to offer?
Some structures lean on cash flow rather than assets, with a personal guarantee in place of a lien. The partner decides what it needs; describing the cost and your deposits honestly on the first call is the best start.
Is a merchant cash advance a way around collateral?
An advance is not a loan and does not use collateral in the same way, but its cost can be high. Compare it with working capital in total dollars. The request steps explain how offers are compared.
By Mintmead Funding · Updated