Frequently Asked Questions
Answers to all of your burning questions about Plan B Capital and Alternative Lending.
I’ve never heard of “alternative lending.” What is it?
The term “Alternative Lending” refers to loans and other financial services people can access without having to go through the bureaucracy of a traditional bank.
Alternative Lending has a long history, but in 2008 it experienced huge growth after the financial crash when traditional banks effectively stopped lending to the small business community. The COVID-19 shut downs only increased the demand by businesses like yours.
How does Plan B Capital provide value to my business?
Plan B Capital’s value to you is to serve as your expert advisor, ready to match your needs with reputable lenders seeking exactly your kind of business. We have researched and vetted dozens of non-bank funders so you don’t have to, each one ready to provide you the capital you need today and into the future, quickly and with far less paperwork than you are probably used to.
Working with us means you have a pipeline to dozens of funding programs offered by lenders who truly want your business and will treat you well.
• Less paperwork to get approved, usually just bank statements and credit report
• Faster approval process, since our non-bank lenders have less bureaucracy and fewer regulatory hoops
• No obligation approvals. You are free to accept or reject any offer. If there are any fees, they will be clearly spelled out in the lender’s offer and will be due only after acceptance.
• Quicker release of your funds, because once you send back your signed docs, your money is typically wired straight into your business account within a few hours or a few days, depending on the type of loan.
In addition, unlike traditional banks, we offer post-funding support in the form of strategic and financial consulting- free of charge.
Is Plan B Capital providing me with a loan?
No. You will never pay us for helping you find capital. We are merely consultants who act as a matchmaker bringing together business owners seeking funds with lenders with money to lend. After your loan is approved and funded, your lender will pay us a commission.
What makes the approval process with an alternative lender different from a traditional bank?
• Faster approvals
• We can often approve even after your bank has turned you down
• Less paperwork
• Less bureaucracy
How large can my business be and still be considered small?
Generally, a “small business” is an enterprise with less than 1,500 employees and gross annual receipts less than $38M. For the precise definition the SBA uses for your particular business, use the SBA’s calculator at “Size Standards” at https://www.sba.gov/federal-contracting/contracting-guide/size-standards.
How does the Plan B Capital process work, and how long does it typically take to receive an offer?
Our 3-step process is very simple.
1) APPLICATION PHASE
You use the form on the Contact Us page to provide us some rough information on what you would like to borrow, what you will use the funds for, and your creditworthiness. Click HERE to jump to that form.
2) REVIEW/APPROVAL PHASE, averages 1-3 business days
We review your information the same day, determine which of the alternative lenders in our network is the best match, and forward your information to that lender for an offer. The lender reviews your information within a few hours and, depending on the program, either responds with an offer or requests some additional details. Once the lender has everything it needs, they will give you a written, no-obligation offer.
You either accept that offer or decline it. If you decline, we will approach another of our lenders and repeat until you find one to accept. This search is no charge to you.
Time can vary widely and depends on the program type. For example, Merchant Cash Advances and Factoring can fund within 8 hours, term loans can fund within 1-14 days, and SBA and real estate loans typically take the longest.
3) FUNDING PHASE, averages 5 business days
Once you accept a lender’s offer, you fill out any additional paperwork the lender requires and submit a completed formal application package to the lender.
The lender then approves your application package and sends you a contract plus any other closing documents to sign. This step is usually very fast, since everything has already been pre-approved.
You return your completed closing package, and your loan is funded.
How long does the approval process take?
Most of our lenders issue a written offer within 24 hours of receiving your application, but it depends on how quickly you provide the required information, as well as the amount of funding being requested.
What is the application process?
To get started, use the form on this website to tell us some very basic information.
In addition, most loan programs require a precise credit score. To help you get them in a way that will NOT drop your score, you can use the following link to a service that can provide you all 3 FICO scores instantly for just $1. However, you are free to get your credit reports any way you wish.
Once we have your completed form and credit reports, we will call you, answer any questions, and together agree on how to proceed.
If you decide to proceed, we will match up your needs with an applicable lender, and submit your application. Lenders usually respond within one business day with a written offer spelling out the maximum amount you are approved for, the rate, how many months the repayment term is, all closing fees, and any other docs that might be needed.
You never have to accept any offer and are completely free to reject everything without cost or obligation.
What are your minimum requirements to be approved for funding?
While each lender has its own unique requirements, in general:
For Non-Debt Cash Programs:
• Your business must be US based (except for the Accounts Receivable Factoring program, which is available for Canadian businesses as well)
• Must be at least 18 years old
• Credit scores 650+ or co-signers considered
• Must be at least 18 years old
For Business loans:
• Minimum of six months in business
• Must be based in the U.S.
What can I use the money for?
While some lenders have requirements, others have no requirements for how you use the funds. It is your money for your business, so you can use it however you see fit.
Many of our clients use their funds to cover payroll, renovate, manage inventory, expand, purchase equipment, and pay for a variety of miscellaneous business expenses.
I have bad credit and even a previous bankruptcy. Can I still get funding?
YES! This is one of our most frequently asked questions. If you have poor personal credit, or even have previously filed for bankruptcy, we can still find you working capital.
The qualifications are your business is at least six months old, and either your business generates sales in excess of $10k/mo or you have a co-signer with good credit.
If you can meet these two requirements, even with bad credit or a bankruptcy, it is still highly likely we can find you funding!
Once I have accepted a lender’s offer, how long to receive my money?
Usually within 24 hours after your lender has received your signed contract and supporting documents. Depending on the lender, funds can be either via check, credit card, or wired directly into your business bank account.
What information and supporting documents do I need to supply?
This varies with the lender and the loan program you seek. To get started, typically all you will need is:
• copies of the last 12 statements from a business checking account, and
• copies of full credit reports from all 3 bureaus- Experian, Equifax, and TransUnion.
Do I have to take the full amount that I am approved for?
No. You decide how much of the approved amount you wish to receive.
What types of businesses/industries do you work with?
We work with over 500 different industry groups in a variety of sectors, such as food service, health care, automotive, textiles, manufacturing, construction, technology, and retail.
NOTE: Traditional banks have recently begun dropping businesses in industries such as energy, cannabis, gun shops, religious organizations, etc. If you are in one of those industries, be aware that Plan B Capital can link you to alternative lenders happy to lend to you, both now and into the future.
How can I ensure my application is processed as fast as possible?
We and our lenders do everything within our power to make your funding process simple, fast, and hassle-free, but we need your cooperation, too! The best way to avoid delays and receive your money as quickly as possible is to provide all requested documentation within a few hours.