Resources
Read this before you borrow.
The same material our advisors walk clients through on first calls. No email gate, no fluff. Just the parts of commercial lending that move your approval and your rate.
How lenders actually read your bank statements
The five numbers underwriters pull first, why they outweigh your credit score, and the 90-day cleanup that beats a 40-point FICO jump.
7 min read →
The complete SBA document checklist
Everything a 7(a) lender will eventually ask for, gathered once. Plus the three document mistakes that cost files weeks.
6 min read →
Term loan vs. MCA: the actual math
Why a 1.35 factor is ~75% APR, why paying early saves nothing, and the one rule: never compare a factor rate to an APR.
8 min read →
How to read a term sheet without a law degree
Seven numbers in order: total cost, APR vs. rate, prepayment, the guarantee, covenants, liens, and funding conditions.
9 min read →
Building business credit lenders believe
A 36-month sequence from entity hygiene to bank pricing, and the four habits that quietly cap your ceiling.
7 min read →
Section 179: deduct this year, pay over seven
How financed equipment placed in service by December 31 can be fully deductible in year one. Worksheet logic for your CPA.
6 min read →Plain-English glossary
The vocabulary that shows up on term sheets and in underwriting emails.
APR vs. interest rate
The interest rate is the cost of borrowing the principal. APR folds in fees, expressing the all-in annual cost. It's the only number that makes two offers comparable.
Debt service coverage ratio (DSCR)
Cash flow available for debt payments ÷ total debt payments. At 1.25×, the business earns $1.25 for every $1.00 of payments. Most programs want 1.15–1.25× or better.
Personal guarantee (PG)
Your personal promise to repay if the business can't. Standard on nearly all small business lending, including every SBA loan, for owners of 20% or more.
UCC-1 filing
A public notice that a lender claims an interest in business assets. A "blanket" UCC covers all assets; asset-specific filings cover just the financed equipment. They unwind at payoff.
Loan-to-value (LTV)
Loan amount ÷ collateral value. A $700K loan against a $1M property is 70% LTV. Lower LTV means lower risk, which means better pricing.
SBA Preferred Lender (PLP)
A lender the SBA has delegated approval authority to. They approve in-house instead of sending files to the agency queue: the difference between a 3-week close and a 3-month one.
Amortization
The schedule that splits each payment between interest and principal. Longer amortization means a lower payment and more total interest. SBA's long amortizations are exactly why its payments are low.
Sale-leaseback
Selling equipment you own to a lender and leasing it back: cash now, equipment stays put, ownership returns at lease end. A way to unlock equity trapped in paid-off assets.
Factor rate
MCA pricing: a multiplier on the advance (1.35 × $100K = $135K owed) rather than an annual rate. Not comparable to an APR until you annualize it. See the guide.
Placed in service
The tax-law moment equipment is installed and ready for use, which is what starts depreciation and Section 179 eligibility. Ordered-but-not-delivered doesn't count.