Frequently Asked Questions

Who is Active Business Loans?

We are a business financial company that teams up with private lenders across the nation to finance capital to different kinds of businesses

What is a "private lender"?

They are different organizations who specialize in different types of loans and businesses and give loans to companies or individuals who own businesses.  A lender specializes in a certain category.  For example, a business real estate lender works only with a company that wants to relocate or buy a business facility.

How many lenders does Active Business Loans work with?

We work with approximately 30 lenders overall.  We work with 6 lenders on a regular basis.

Does Active Business Loans loan money to businesses?

No, private lenders do.

Where do private lenders get their capital?

It’s like any other type of company; for the most part there are private lenders that have quite a few investors and some companies have only two or three investors.  They all invest their own money or they are a subsidiary of another lender.

What is the difference between private lenders and banks?

Both actually have a similar role.  They both give the businesses or buyer(s) terms and conditions of a loan.  The big difference is that banks are regulated by the federal and state government and private lenders are not.  Private lenders have more freedom and can set their own rules.  Banks have checking and savings accounts and private lenders do not.

What is Active Business Loan's role?

We get the ball rolling.  We prospect and look for business owners that need financing for their business.  We sit down with the client and go over their situation.  We give them business advice and collect the documentation.  If the business does actually need financing, we will go over their personal credit and application.  In most situations we will set up a conference call with the lender.

What type of businesses use Active Business Loans?

Any type of business The business should have an LLC (Limited Liability Company) or similar.

• Many business owners say their personal credit score is too low to get a loan. What does Active Business Loans say to that remark?

If your credit score is 600 and up you are more likely to get a business loan.  That is not to say we do the 500 credit level.  We do financing with the 500’s.  The choices of loans are smaller.

• Some business owners say they don’t need a loan, for they have plenty of cash. Why do I need a business loan?
  1. Emergencies can come up that were not foreseen.
  2. The business may need to acquire another company.
  3. Equipment or overhead problems may occur.
  4. They want to sell their business and Active Business Loans can assist the prospective buyer.