When it comes to finding funding for your small business, there are countless options to explore. Two of the most enticing choices are often Small Business Administration loans and DNA Advance Group funding.
DNA Advance Group is part of a new industry of financing companies that make it easier than ever for small businesses to acquire working capital, even the ones with low credit. However, this article will be focusing on just DNA Advance Group – because we’re different than other small business funders!
SBA LOANS
Several factors contribute to the style of funding best suited for a business. Below are the key points of receiving funding with SBA loans and DNA Advance Group compared and contrasted for an educated decision regarding the future of your business.
Approval Time
In terms of how long it takes to get the money into the business’s bank, DNA Advance Group has the SBA beat by a longshot. DNA Advance Group applicants are reviewed within minutes of receiving an application by in-house underwriters. As long as the merchant is timely with their paperwork, we can get funding in under 72 hours.
SBA loans normally take 60 to 90 days to process, which can make it difficult to solve immediate problems with a business, such as a broken down truck or pizza oven.
Term Length
DNA Advance Group typically offers shorter terms than SBA loans. While SBA loans normally have terms of 5-10 years, DNA Advance Group’s max term length is 220 business days.
Longer terms can bind you for years, especially if your business doesn’t work out. DNA Advance Group’s flexible terms can offer greater freedom to stop pursuing extra capital, or to acquire more.
Credit Score
SBA loans typically require a higher credit score (think 600+) to get approved. At DNA Advance Group, our whole-picture approval process ensures that you can get the funding you deserve, even if your credit score isn’t stellar.
Existing Loans
The SBA does not allow merchants to receive funding from other sources, while DNA Advance Group will fund up to being the 3rd position and help consolidate prior positions.
DNA Advance Group is boutique style funding and therefore very flexible. SBA loans can potentially limit options when it comes to funding businesses.
Amount of Capital
SBA loans can range from $500 to $100,000,000. DNA Advance Group on the other hand, ranges up to $2,000,000
Size Restrictions
SBA loans adhere by strict size restrictions to small businesses. If you don’t fit within their criteria of “small business,” you won’t qualify for a loan. You can find their size standards here.
DNA Advance Group doesn’t have any restrictions on size. We fund businesses big or small, and we won’t judge you if you have three employees, or three-hundred!
Interest and Buy Rates
One area in which the SBA has an advantage over DNA Advance Group is interest rates. SBA loans typically have 3-10% interest rates, depending on the length and amount of the loan. DNA Advance Group does not have interest, but rather buy rates; we purchase a business’s future receivables, meaning we could purchase $120,000 of future receivables from a business in exchange for providing $100,000 in funding, which would be a 1.2 buy rate.
Depending on the health of the merchant’s business, some funders in the industry will go up to a 1.6 buy rate, which is extremely high. DNA Advance Group will not over leverage the merchant with egregious buy rates, but exact rates are determined on a case by case basis.
Conclusion
As a small business owner, you have a wealth of choices when it comes to funding your dreams. DNA Advance Group and SBA loans can help you get there.
Being aware of the differences between financing options is a surefire way to make sure you get the most advantageous funding for your financial situation.
