Elmwater Capital, based in Midland, Michigan, answers questions Midland County owners raise about business loans and lines of credit: refinancing, borrowing as a new LLC, drawdown lines, what a loan requires and how a merchant cash advance differs. Partners make the credit decisions and set terms.
Midland, MI Owners Ask: Can You Refinance a Business Loan?
Yes, a business loan can be refinanced: a new loan pays off the old one, ideally at a lower total cost or with a schedule that fits better. Before refinancing, ask the current lender for the payoff amount and any prepayment fee, then compare the total remaining cost of the old loan with the total cost of the new one, fees included.
Refinancing a merchant cash advance is a different exercise, because an advance is not a loan; see the merchant cash advance page.
Can a New LLC Get a Business Loan? A Midland County, MI Answer
Possibly, but a new LLC has little history for a partner to read, so the owner's credit, any collateral and the purpose carry more weight. Equipment financing is one route, because the item secures the deal. Elmwater does not arrange startup loans; the business financing page compares the six structures it does handle.
What Is a Drawdown Line of Credit in Midland, MI?
A drawdown line is a line of credit you draw from in pieces, as needed. Interest runs only on what has been drawn. Some drawdown lines revolve (repaid money can be drawn again) and some do not; the term loan page explains the non-revolving and delayed draw versions.
What Does a Business Loan Require for a Midland County, MI Business?
Requirements are set partner by partner. Records a partner may review: business bank statements, the latest tax return, time in business, annual revenue, the owner's credit and existing debts. The request steps page lists them in order, and the request form asks for time in business, revenue and amount as ranges.
Is a Merchant Cash Advance a Loan? What Midland, MI Owners Should Know
A merchant cash advance is not a loan, even though it is often searched that way. It is a sale of part of your future receipts at a fixed price, collected through a share of sales. Total every remittance and compare it with a loan for the same need before signing.
Midland, MI Owners Ask: What to Know About a Business Loan?
- Name the expense before choosing a structure.
- Compare total dollars repaid, not only the payment size.
- Read the collateral and personal guarantee clauses.
- Ask about prepayment fees.
- Check the business is current with the state.
- Keep the repayment inside what your deposits support; the equipment calculator runs the arithmetic.
Still unsure? See how to start a request.
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