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Frequently Asked Questions

Looking for funding for your business? Are you one of the millions of small businesses who the banks have left behind? We have answers to some of our client’s most frequently asked questions.

What is alternative lending?

Alternative lending is a broad term used to describe the wide range of loan options available to business owners outside of traditional bank financing. These alternative options are most commonly used when a business cannot obtain a traditional bank loan for any number of reasons. Sometimes businesses also opt for alternative loans because they are usually covenant-lite.

Why do you see the banks turning down businesses?

Bank rates are very low so they really cannot afford to make mistakes. In our experience, even some otherwise “healthy” businesses growing at a rate of more than 10-15%/year are considered too risky for conventional financing. As a consequence, business owners have sought out alternatives and there has been a significant rise in alternative financing options.

What programs do you offer?

Heritage Commercial Funding Corp. is not a direct lender. We have a Finance Broker’s license with the California Department of Business Oversight. We represent almost 50 lenders in the alternative lending market who offer programs including A/R Financing (Factoring), Purchase Order Financing, Asset Based Lending, SBA lending, Revenue Based Lending & Cash Advances, Term Loans, Unsecured Business Finance, Equipment Financing & more! Our job is to connect businesses with the right lender to increase their cash flow and improve their bottom line.

What do you charge?

We get paid directly by the lender so there is no risk to you. Most of the alternative lenders do not have a large business development staff, so they rely on broker referrals. In many cases, we are able to connect you with more than one potential lender. The ball is in your court to decide if their respective offers make sense for your business.

What do you need from me?

We would like to set up an introductory call to find out what you need and start to prequalify you for an alternative financing program. Typically, it is helpful to see your current and year end financial statements and your last 3 month’s business bank statements, to start.

Do you offer financing for start ups?

Some of the lenders we represent offer funding for start ups. In these cases, the lender is going to rely almost exclusively on the personal credit of the business owner. We would like to find out what your personal FICO score is and if you have any personal property that you would be willing to pledge for a loan. We do not work on private equity or venture capital deals.

What do we need to qualify?

Each alternative lending program has a different set of qualification standards. We can usually let you know quickly which one you may qualify for.

What size loans do you work on?

We represent lenders that offer loans as low as $5000 up to about $10 million. Most of the transactions we work on seem to fall between $25,000 – $1 million.

How do you get business?

We work on referrals from bankers, alternative lenders, CPA’s attorneys, clients, and small business advisors. We are happy to provide references! Thank you for visiting our site. We look forward to connecting with you!