Small Business Loans

At this time, the minimum credit score requirement for our small business loans is 625.

When calculated, our small business loans have competitive industry rates. However, our loans don’t technically have a rate; instead, we charge one fixed price that does not change. Our pricing may change depending on a number of factors, including your credit score, revenue, your industry, and terms of the loan you choose. Because our loans are short term, when you calculate the “rate,” it will be higher than some other options, but the overall cost is often much less than long-term financing options such as SBA loans or equipment financing.

Depending on which financing products you qualify for, Kovo Capital offers up to a five-year term and monthly, bi-weekly, weekly, and daily payment options. However, many of our customers use our business loans for short-term working capital needs and opt for a shorter payback period, making daily or weekly payments.

There are many differences between a general business loan and an SBA loan. The most obvious of these differences is that an SBA loan is backed by the Federal Government, which takes some of the risk associated with the loan away from the lending institution, resulting in much lower interest rates. However, because the loan is backed by the government, qualifying is much more difficult, and the application and approval processes are much longer. In fact, approval for most non-PPP SBA loans is contingent on a business owner having exhausted all other financing options along with being able to show that they have invested their own time and money into the business.

Small business loans can be used for virtually any purpose – from covering day-to-day business expenses to purchasing new equipment to refinancing existing debt. However, with a wide variety of financing options available to business owners, you should always do your research on which financing options are best for each of your needs. For example, just because you can use a business loan to purchase equipment does not mean that you should, equipment financing may be a better fit.

During the 2008 recession, online lenders gained prominence as an alternative option for many small businesses to obtain financing when traditional bank funding opportunities dried up. Since then, these lenders have become a common-place resource for business funding. While your specific needs should dictate where you seek financing, there are some well-known advantages to using alternative lenders, including: Qualification Requirements: Alternative lenders tend to have less stringent requirements for approval. Typically, alternative lenders have lower requirements for an applicant’s revenue, time in business, and credit score. Shorter Timelines: Because of the applications are shorter and fewer documents are required for underwriting, alternative lenders can review, approve and fund business loans in a matter of days – sometimes even in as little as 24 hours depending on how quickly you’re able to get your full application package submitted. Loan Size Flexibility: Alternative lenders have more flexibility with the funding amounts they will approve, so they are able and willing to finance both smaller and larger amounts than traditional lenders. For example, many banks will not consider loans above $1 Million and the use of those funds is often limited. However, with many alternative lenders, loans are available in amounts up to $5 Million and the funds can be used for any business purpose. If you need less capital, many banks aren’t as willing to lend out lower amounts because it is not economically feasible for them to do so, while alternative lenders are willing to finance amounts as low as $10,000. Higher Approval Rates: Because of their easier qualification requirements and simpler application process, alternative lenders approve financing for more small and medium-size businesses than traditional lenders.