FAQ — SFL Funding | Business Funding Questions Answered

Question 1

What are the basic eligibility requirements?

Accepted Answer

Most of our funding products require your business to be US-based, have been operating for at least 4–6 months, and generate a minimum of $10,000 in monthly revenue. Specific requirements vary by product — Merchant Cash Advances have the most flexible criteria, including no minimum credit score.

Question 2

Do I need good credit to qualify?

Accepted Answer

Not necessarily. Our Merchant Cash Advance product has no minimum credit score requirement — we evaluate your business based on monthly revenue and sales volume. For Business Term Loans, we look for a 550+ credit score, and for Lines of Credit, 600+. We always consider the full picture of your business health.

Question 3

Can a startup apply for funding?

Accepted Answer

We generally require at least 4–6 months of operating history and documented revenue. Very early-stage startups with no revenue history may not qualify at this time. If your business is newer, we recommend applying once you have 3–6 months of bank statements to share.

Question 4

What industries do you fund?

Accepted Answer

We fund businesses across a wide range of industries including restaurants, retail, healthcare, construction, auto services, beauty and salon, professional services, e-commerce, and transportation. If you're unsure whether your industry qualifies, apply and our team will review your application.

Question 5

Can I apply if I have a previous bankruptcy?

Accepted Answer

A prior bankruptcy does not automatically disqualify you. We evaluate each application individually, taking into account how long ago the bankruptcy occurred, your current revenue, and the overall health of your business. We encourage you to apply and let our team review your situation.

Question 6

What interest rates do you charge?

Accepted Answer

Rates depend on the product and your business profile. Business Term Loans start at 7.9% APR. Lines of Credit start at 9.9% APR. Merchant Cash Advances use a factor rate model (starting at 1.15) rather than an APR — the total cost is a fixed amount determined upfront based on your advance size and sales volume.

Question 7

Are there any hidden fees?

Accepted Answer

No. We believe in complete transparency. Before you accept any offer, we walk you through the full cost of capital — including any origination fees, factor rates, or other charges. There are no prepayment penalties on most products, and no surprise fees at closing.

Question 8

What is a factor rate and how does it work?

Accepted Answer

A factor rate is used for Merchant Cash Advances instead of an interest rate. It's a simple multiplier applied to your advance amount. For example, a $50,000 advance at a 1.25 factor rate means you repay a total of $62,500. Repayment happens automatically as a fixed percentage of your daily card sales — so when sales are slow, you pay less.

Question 9

Will applying affect my credit score?

Accepted Answer

Checking your options with SFL Funding involves only a soft credit inquiry, which does not affect your credit score. A hard inquiry may be required before final approval for certain products, and we will always notify you before that occurs.

Question 10

How does repayment work for a Business Term Loan?

Accepted Answer

Business Term Loans are repaid in fixed daily or weekly payments over the agreed term (6 to 60 months). Payments are automatically debited from your business bank account, so there's nothing to remember each month.

Question 11

How does repayment work for a Merchant Cash Advance?

Accepted Answer

Repayment is automatic and tied to your daily sales. A fixed percentage of your daily credit and debit card transactions is remitted until the total payback amount is satisfied. On slower days you pay less; on busier days you pay more — it flexes with your cash flow.

Question 12

How does a Line of Credit work?

Accepted Answer

Once approved, you draw funds as needed up to your credit limit. You only pay interest on the amount you've drawn, not the full limit. As you repay, your available credit replenishes. Lines of Credit renew on a 12-month cycle.

Question 13

Is there a penalty for paying off early?

Accepted Answer

Most of our products have no prepayment penalty. For Merchant Cash Advances, the total payback amount is fixed regardless of how quickly you repay. We will always disclose any early payoff terms clearly before you sign.

Question 14

How long does the application take?

Accepted Answer

Our online application takes less than 10 minutes to complete. Once submitted, our team reviews your application and delivers a funding decision within 24 hours — often sooner.

Question 15

What documents do I need to apply?

Accepted Answer

To complete your application you'll need your business name, Tax ID (EIN), business start date, business and owner addresses, and owner Social Security Number. After submission, we may request 3–6 months of business bank statements and recent tax returns to finalize your offer.

Question 16

How quickly can I receive funds after approval?

Accepted Answer

Once you accept an offer and complete any required documentation, funds are typically deposited into your business bank account within 24 hours. In many cases, same-day funding is available.

Question 17

Can I apply for more funding after I've been funded?

Accepted Answer

Yes. Many of our clients return for additional funding as their businesses grow. Once you've established a repayment history with us, future applications are faster and may be pre-approved. Contact your funding advisor to discuss renewal options.

Question 18

What happens after I submit my application?

Accepted Answer

A dedicated funding advisor will review your application and contact you — typically within a few hours — to discuss your options. They'll walk you through any available offers, answer your questions, and guide you through the next steps at your own pace.

Frequently Asked Questions

Still Have Questions?