Reedgate Lending Group, a small-business funding service in Warren, OH, answers the questions owners ask before a request: whether funding can consolidate debt, whether equipment financing counts as debt, what working capital is and how long it lasts, and why a merchant cash advance is not a loan.
Can I Use a Business Loan to Consolidate Debt? What Warren, OH Owners Should Know
Can a new loan replace several older ones?
It can, if a partner agrees to pay off the existing debts and replace them with one schedule. Consolidation helps when the new payment is lower in total dollars, not just lower per month. A longer term can shrink the monthly payment while raising the total paid.
Can a loan pay off a merchant cash advance?
Some partners will fund a payoff of an advance; others will not lend while an advance is still collecting. Bring the advance agreement and the remaining purchased amount.
Warren, OH Owners Ask: Is Equipment Financing Debt?
Does an equipment loan show up as debt?
Yes. An equipment loan is debt on the balance sheet, secured by the machine. Partners reviewing a later request will count its payment.
What about a lease?
Lease obligations are also counted by partners when they look at what the business already pays each month. How a lease is shown in the books is a question for your accountant.
What Is a Working Capital Loan? A Trumbull County, OH Answer
What does it pay for?
Day-to-day costs while receipts catch up: wages, supplier bills, rent. See the funding types overview for how it compares with the other five.
How does the money go back?
In fixed installments over a short schedule. Some partners structure it as a revolving line instead.
Is Equipment Financing a Loan for a Trumbull County, OH Business?
Loan or lease?
Both fall under equipment financing. An equipment loan is a loan, and you own the machine. A lease is a contract to use equipment the lessor owns, with options at the end to return, renew or buy it.
Is Merchant Cash Advance a Loan for a Trumbull County, OH Business?
Why isn't it a loan?
The provider buys part of your future receipts at a discount and collects them as sales come in. There is no interest rate and no fixed term; the cost is the difference between what you receive and what is collected.
How do I compare it with a loan?
Total every remittance and fee, subtract the advance, and set that figure next to the total cost of a loan or line for the same need.
Is a Working Capital Loan Long Term? What Warren, OH Owners Should Know
How long do working capital loans run?
They are short-term by design, measured in months, because they cover gaps that close when receipts arrive. Long-life purchases fit a term loan instead; the partner sets the actual term.
Which party says yes or no?
A funding partner. Reedgate matches each request with partners, who review it and decide on approval, rate and terms. The steps are on how a request moves, and you can send a request or call (234) 225-2947.
By Reedgate Lending Group ยท Updated
