F.A.Q.

We understand that eligibility requirements for business loans can vary depending on the lender and the specific loan program. At Co/LAB Capital, we strive to make the process as inclusive as possible. Our team will assess your individual circumstances and work with you to find the best financing solution tailored to your needs. Contact us today to discuss your eligibility and explore the options available.

Interest rates for business loans can vary depending on several factors, including the type of loan, the lender, and the borrower’s creditworthiness. At Co/LAB Capital, we offer competitive interest rates on our business loans. Our team will assess your unique situation and provide you with transparent and personalized information about interest rates during the loan evaluation process. Contact us today to discuss your financing needs and get detailed information about our interest rates.

Choosing the best business loan for your needs requires careful consideration and understanding of your business goals and financial requirements. At Co/LAB Capital, we are committed to helping you make informed decisions. Our team will work closely with you to assess your needs, evaluate available loan options, and provide personalized recommendations. We take into account factors such as loan terms, interest rates, repayment flexibility, and more to help you choose the business loan that aligns with your objectives. Contact us today, and let us guide you in selecting the best business loan for your specific needs.

As soon as you know your business is solid and isn’t at risk of closing. If you plan on having your business around for the long run, don’t pay rent to someone else, start exploring the options of buying your own business.

We understand that applying for an equipment loan is an important step in growing your business. To ensure a smooth and efficient application process, here is the information and documents you may need to gather:

Business Information:

• Legal business name
• Business address
• Contact details (phone number, email address)
• Business structure (sole proprietorship, partnership, corporation, etc.)
• Number of years in operation

Financial Statements:

• Profit and Loss Statement (P&L) for the last two to three years
• Balance Sheet for the last two to three years
• Most recent interim financial statements (if applicable)
• Business tax returns for the last two to three years
• Personal tax returns for the business owner(s) or guarantor(s)

Bank Statements:

• Business bank statements for the past three to six months
• Personal bank statements for the business owner(s) or guarantor(s)

For equipment loans:

• Description of the equipment you intend to finance
• Cost of the equipment
• Vendor or supplier information
• Any additional information or specifications related to the equipment

Business Plan:

• A brief overview of your business, including its history, mission, and objectives
• Description of how the equipment will contribute to your business growth and success
• Marketing and sales strategies
• Financial projections for the next two to three years

Additional Documentation:

• Business licenses and permits
• Insurance information
• Any legal or contractual agreements relevant to your business

Please note that the exact requirements may vary based on your specific situation and the financing program you choose. It’s always a good idea to consult with an EquipFinPro representative who can guide you through the application process and provide personalized assistance.

Business loans are an incredibly important financial tool for business owners and entrepreneurs, but the eligibility requirements vary depending on the type of loan you’re applying for. Generally speaking, most lenders look at a few key factors when evaluating your application: length of time in business, profitability, credit score of the owner and risk of the industry your business is in.

Length of Time In Business: The majority of lenders require that businesses have been operating for at least one year or more to qualify for a loan. This ensures that they have a proven track record and are not just starting out with no history or revenue figures available. However, some lenders may make exceptions to this rule if they believe the borrower has enough cash flow or collateral to secure a loan even without an established business history.

Profitability: Most lenders will also look closely at how profitable your business currently is.  They want to see evidence that you can actually pay back what you borrow.

Credit Score: The credit score of your primary owner or manager is usually taken into consideration during the underwriting process – especially if no other guarantee such as collateral is offered up by yourself or other parties involved in your company (board members etc.). 

Risk Of Industry: Depending on what industry your particular organization falls into some lenders may decide that it poses too much risk. Often times different banks and online lending portals go after specific industries or types of companies – so don’t get discouraged if one lender denies you due to higher risk than others find more agreeable!

1. Prime Rate: The prime rate is the interest rate that banks offer to their most creditworthy customers. Many commercial loans are based on the prime rate, which is often used as a benchmark for other interest rates.
2. LIBOR (London Interbank Offered Rate): LIBOR is an interest rate at which banks can borrow funds from other banks in the London interbank market. It is widely used as a benchmark for a range of financial products, including commercial loans.
3. Treasury Bill (T-Bill) Rates: Some business loans, particularly those with longer terms, may be tied to the yield on U.S. Treasury bills of a specific maturity, such as the 1-year T-Bill rate.
4. Federal Funds Rate: The federal funds rate is the interest rate at which banks lend reserve balances to other banks overnight. While not as common as some other indexes, it can be used as a reference for certain commercial loans.
5. Cost of Funds Index (COFI): COFI is an interest rate index that reflects the cost of funds for savings institutions like savings and loan associations. It’s primarily used for adjustable-rate mortgages but can also be used for commercial loans.
6. Secured Overnight Financing Rate (SOFR): SOFR is a newer benchmark rate that’s being phased in to replace LIBOR in some markets. It’s based on transactions in the U.S. Treasury repurchase market.
7. Fixed Rate: Some commercial loans have fixed interest rates that are not tied to any index. These rates remain constant for the duration of the loan.