Sharpshooter Funding Review

Info about Sharpshooter Funding

Main Office: 801 Eglinton Ave West, Suite 400 Toronto ON M5N1E3, Canada.

Business Hours: Mon – Fri: 8am – 8pm Sat: 8am – 4pm Sun: 9am – 1pm

Email: [email protected]

Contacts: (888) 503 0807, [855] 742 7774 (toll free).

Types of Loans Offered

Long Term Business Loan

Every small business owner dreams of taking their business to the greatest height possible. However, most of them become engrossed in the day-to-day running of their businesses and fail to make plans to attain that great height. Others do not have the funding it takes to achieve their long-term business goals.

Intelligent business owners utilize long-term loans to secure the future of the business through significant investments. Long-term loans come as a considerable sum, which business owners would repay over an agreed period. 

Although long-term loans require paperwork, it helps to improve credit score and allow a convenient repayment schedule. Sharpshooter offers long-term business loans up to $250,000 for a term of 3 to 10 years.

Short Term Business Loans

Short-term business funding operates like cash advances. The lender advances a sum of money to the borrower, which he must pay back at an agreed date. Similar to other kinds of loans, short-term business loans come with charges. 

Before requesting a short-term loan, a well-informed business owner would thoroughly assess his debt and cash flow. Advisably, you should have a capital base, which will enable you to make timely repayments to avoid late penalty fees that may sink your business.

Most businesses find it easy to meet the requirements of short-term business loans. As such, most small businesses opt for this type of loan. Sharpshooter offers short-term loans from $2.5k – $250k at a term of 3 to 18 months. The cost of working capital starts at 10%. Most short-term funders prioritize the state of a business’s cash flow rather than its assets. Upon application, the amount a company would qualify for depends on its yearly income, business history, and credit rating.

Merchant Cash Advance

Merchant Cash advance is an application for a sum of money, which would be repaid from a chunk of the proceeds from the applicant’s business. In addition, the business owner agrees to pay a certain percent of his future sales to the funder plus interest. Payments on merchant cash advances are made daily and may rise and fall based on sales.

Taking a merchant cash advance comes with certain risks, such as tight repayment schedules and high interest. If you fail to meet up with these, the business may spiral into a cycle of debts. Notwithstanding, the program has its advantages, such as fast application and quick funding. Repayment may also not prove problematic if the business generates large sales. 

Sharpshooter offers unsecured merchant cash advance for $300,000 or more through its Bank Only EFT Program. The loan term depends on the amount the business qualifies for. On average, the business must record up to $4,166 as profit from monthly sales and must have been operating for 3 months. Overall, Sharpshooter’s payback terms are pretty simple and efficient.

Working Capital Funding 

No matter how much you think you have covered the entire expense for starting a business, there are bound to be some unexpected ones. Unfortunately, these unplanned costs may prove to be a cog in the wheel of your daily business operations if you do not find an effective solution. Working capital funding are short-term loans designed to meet the short-term expenses. The funding will allow you to meet pressing needs before it affects revenue generated by your business.

The amount granted by sharpshooter funding as working capital depends on the amount of revenue your business generates. Again, though, it is usually below $50,000 at a term up to 12 months. On average, your business must generate $4,166 per month in sales for 3 months to qualify for Sharpshooter working capital funding.

Bridge Funding

A bridge funding is a short-term loan usually applied to fill the interval between two loans. The interval, here, refers to the period between paying back a loan and applying for another. Bridge funding provides short-term solutions, which have long-term benefits.

While this type of funding is not so different from others and comes with interest and repayment schedules, its uniqueness lies in what the funds are used for. Usually, they are expended on basic but crucial expenses in expectation of another funding.

Reasons to Apply for Bridge Funding

• For emergency repairs or maintenance.
• Insufficient working capital for daily operations.
• Expansion purposes.
• Securing an investment to boost total revenue.

Sharpshooter funding amount depends on the business revenue but usually below $50,000 up to 12 months. On average, the business must earn $4,166 per month from sales and must be in operation for at least 3 months.

Business Expansion Funding

When business owners begin to set their sights on greater heights and need funds to make the next big move, the best loan option is business expansion funding. This loan may be used to purchase an asset or equipment to increase production and income. For instance, if you decide to expand your workforce, you may need funding to pay the new employees.

In running a business, a growth opportunity may arise unexpectedly, but no funds to make the best of it. This situation is perfect for taking a business expansion loan. However, the funding is most suitable for businesses with a good record of success and a solid financial base. Also, the company must be at a stage where it is ready to take the next big step or acquire the assets necessary for expansion.

Sharpshooter expansion funding may be applied as working capital, purchasing inventory, training staff, increasing workforce, boosting marketing campaign, or purchasing equipment. The company offers a loan amount of $5,000 to $250,000 at a term of 3 to 10 years. To qualify, your business must have a 620+ credit score, be in business for more than three years, must have monthly deposits of at least $20,000 and $3,600 as daily balances on average.

Business Line of Credit 

A business line of credit is an approved sum of money granted to a small business owner from which he may draw as the need arises. The issuer charges working capital on the borrowed amount alone and not on the entire sum granted. It operates like a credit card but for businesses only and at a much higher credit limit.

Business lines of credit are relatively cheap funding sources that effectively fund short-term capital needs. This loan option may be secured in the sense that the business will have to commit certain assets as collateral for the loan. If he fails to repay, the borrower will have to give up ownership of the pledged asset to the funder. On the other hand, an unsecured loan does not need specific assets as collateral. However, it requires a lien and guarantee and a good credit report to qualify.

Sharpshooter offers a line of credit from $10,000 at varying terms, which may be secured or unsecured. To be eligible for sharpshooter line of credit:

• You must have industry experience
• Personal investments in your company
• Cash inflow must exceed outflows for at least 12 to 24 months
• Have a good credit score
• And a detailed plan for your business.

Generally, you must meet the following criteria to be granted a sharpshooter loan

• Must be 18 or 19 years of age in your province at the time of application.
• Must have been in business for at least 100 days or 12 – 24 months for loans involving huge amounts.
• Must be able to show proof of at least $10,000 in profits per month.
• Must have at least 580+ credit score for certain type of loans.

Required Documents

Government ID: These may be a driver’s license or passport.

Business Address: You must provide documents that prove that you own a business in Canada.

Bank Statements: You will be required to tender statements of income or revenue to show that you are eligible for the loan you applied for.

Credit Check: You will have to accede to a credit check to confirm your credit score. For some loans, this information is not considered when making a decision on approval or rejection.

How to Apply for a Sharpshooter Loan

Conclusion

In conclusion, Sharpshooter funding comes with strict but fewer eligibility criteria than traditional banks. It’s  services are  specifically provided for small businesses. If you truly desire to take your business higher, then consider the loan options Sharpshooter offers and choose the one that best suits your business.