I have been operating without LOC for 4+ months post-acquisition and without one for 7+ years before in another business. I did not use SBA for my acquisition, so did not get this handled before close (even though it was advised). What I have found is summarized below.
If you have any recommendations on better WC or LOC options, please let me know. I am currently interested in a 7a Express LOC, but I have not found a lender that will do only this (if they did not do 7a/504 loan for acq, then many not interested).
This post about online LOC:
My response: BlueVine offers online approval process. Myself for example got approved within ~2 days for $70k revolving LOC. Monthly repayment, 12 month repayment period, Interest is 1.93% MONTHLY plus 1.6% draw fee. Simple interest. Comes with PG. The monthly option, you have to pay a full months interest, even if 1 day into month. They offer a weekly line (pay full weeks interest), but at a lower top line amount.
$9,000 Term loan. 9.86% (APR 12%). I believe this comes with PG. No fee to draw. I have used this once before for short term cash, experience was great, automatic approval through QBO. They have business Credit Score rules, but apply anyway for a small amount, even if you don't think you'll qualify. I've been approved under the business credit score listed, twice. Taking and repaying the loan was useful for me in building business credit (separate from personal credit!) previously. The amount they lend is based on your data in QBO and can be much higher than stated above, though I think this rate is pretty standard.
SoFi Personal Loan:
Have done $100k (max) term loan with them before. Rate tables: https://www.sofi.com/personal-loans/personal-loan-rates/
Came in 10-12% annual for me. Early payments do not reduce monthly payments, so debt service cannot be reduced until paid in full. USAA offers a similar product (if you qualify for them) for unsecured personal loans, and the term/interest rate was a little better in my experience.
Line of Credit - Revolving LOC vs Term Loans, WC Post Acquisition
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