FAQs About Low Interest Business Loans

A merchant cash advance is a form of business financing where a lender provides upfront capital in exchange for a percentage of the business’s future daily credit/debit card sales plus a fee (expressed as a factor rate). Unlike a traditional loan, there is no fixed monthly payment — repayment adjusts automatically based on your daily sales volume. This makes it flexible during slow periods. MCAs are not technically loans, so they are not subject to the same lending regulations and can be funded much faster — often same-day.

A traditional business loan has fixed monthly payments, a set interest rate, and a defined term. A merchant cash advance has no fixed payment — instead, a percentage of your daily sales is automatically remitted until the advance is repaid. MCAs are faster to fund (often same-day vs. weeks), easier to qualify for (500+ credit score vs. 650+ for most bank loans), require no collateral, and are based primarily on revenue rather than credit history. The tradeoff is that MCAs are more expensive — factor rates typically range from 1.08 to 1.5 depending on the business profile.

A factor rate is a decimal multiplier used to calculate the total repayment on a merchant cash advance. For example, if you receive $50,000 at a factor rate of 1.20, your total repayment is $50,000 x 1.20 = $60,000. Unlike an APR, a factor rate does not change over the repayment period. The faster you repay, the higher the effective APR — and the slower you repay, the lower it becomes. RAN Funding offers factor rates starting at 1.08 for well-qualified businesses.

Revenue-based financing (RBF) is a broader category of business funding where repayment is tied to a percentage of your business’s monthly or daily revenue rather than a fixed payment schedule. Merchant cash advances are the most common form of RBF. RBF is ideal for businesses with consistent but seasonal or variable revenue, since payments flex with cash flow. RAN Funding specializes in RBF solutions for established businesses generating $10,000 or more per month.

Funding amounts at RAN Funding depend on the product: Merchant cash advances range from $5,000 to $1,000,000. Short-term business loans go up to $3,000,000. SBA loans are available up to $5,000,000. The amount you qualify for is based on your average monthly revenue — most lenders offer advances between 75% and 150% of your monthly revenue. A business generating $100,000/month can typically qualify for $75,000 to $150,000 in an MCA.

Yes. RAN Funding regularly approves businesses with credit scores as low as 500. For merchant cash advances and revenue-based financing, your monthly revenue and bank statement history carry more weight than your credit score. Even if you’ve had past credit challenges, judgments, or bankruptcies, you may still qualify if your business generates consistent revenue.

RAN Funding offers a fully automated process with our technology or via a business advisor to get your business loan options with only one simple application and have a response within hours. We compare the top industry options that fit your needs

Applying for a loan only takes minutes with RAN Funding’s technology. The funding can take place within the same 24 hours of approval. Average funding time is 24-72 hours depending on financing option.

We can fund in as little as 24 hours but typically takes 1 to 2 days after approval.

Our requirements are a minimum of six months in business, at least $10,000 in monthly revenue or $100,000 in yearly revenue, and business bank statements. Minimum FICO of 500.

Completing an application will not affect your credit score. However, when you proceed with certain financing options your credit score may be affected.

Yes, we can help businesses with prior credit issues or low credit scores.

Yes, we can help your business if additional funding is needed.

With our network of business financing options, we offer loans from 3 months to 10 years depending on your choice of financing and qualifications. Repayment options include daily, weekly, semi-monthly and monthly.

Yes, all financing options offer no-prepayment penalty and sometimes early payoff incentives are offered.

We offer unsecured and uncollateralized financing options. However, there are options that may be collateralized.

Yes, RAN Funding uses top of the line security systems and firewalls to protect all company and client information.

For most financing products at RAN Funding, you will need: a valid government-issued ID (driver’s license or passport), a voided business check, and your 3 to 4 most recent business bank statements (PDF format). For larger loan amounts or SBA products, additional documentation such as business tax returns, financial statements, and a business plan may be required.

Step 1. Log in to the business bank account website
Step 2. Click on your statements
Step 3. Click “Save” on the statements that you want to download or Click “Print” and then save as a PDF to computer.
Step 4. Download the statements to your computer, attach PDF to email and send to your funding advisor.
Step 5. If you have an issue downloading statements, please call your bank branch or representative directly and request PDF copies of your 4 most recent bank statements and send to your funding advisor.

RAN Funding works with businesses across all major industries. Our most common clients include: construction and specialty trades (general contractors, plumbers, electricians, roofers), restaurants and food service, medical and dental practices, trucking and freight, retail businesses, professional services firms, staffing agencies, household services companies (cleaning, landscaping, HVAC), and auto repair shops. We do not fund start-ups — businesses must be at least 6 months in operation.

Yes. Restaurants are among the most common MCA recipients. Because restaurants process a high volume of daily credit and debit card transactions, they are ideal candidates for merchant cash advances. The automatic holdback repayment aligns well with restaurant cash flow patterns. RAN Funding can fund restaurants from $10,000 to $500,000 depending on monthly revenue.

Yes. Construction companies, general contractors, specialty trades, and subcontractors regularly use merchant cash advances and short-term loans to bridge gaps between project draws, cover payroll, purchase materials, or take on new contracts. RAN Funding understands the cash flow cycles unique to construction businesses and can structure financing accordingly.

Yes. Medical practices, dental offices, chiropractic offices, and other healthcare providers regularly use business financing for equipment purchases, expansion, hiring staff, or bridging gaps in insurance reimbursements. RAN Funding works with healthcare businesses and can offer both MCA products and equipment financing for medical devices and technology.

A merchant cash advance provides a lump sum upfront, repaid via a daily holdback from sales. It’s best for businesses needing immediate capital for a specific purpose. A business line of credit is a revolving credit facility — you draw funds as needed, repay, and draw again. Lines of credit are better for ongoing operational needs and cash flow management. MCAs fund faster and require less documentation, while lines of credit offer more flexibility over time. RAN Funding offers both products.

SBA loans offer lower interest rates (typically 6%–13%) and longer repayment terms (up to 10 years), making them the most affordable form of business financing. However, they require strong credit (typically 650+), collateral, 2+ years in business, full financial documentation, and take 30 to 90 days to fund. Merchant cash advances fund in 24 to 48 hours, require no collateral, accept credit scores as low as 500, and are accessible to businesses with only 6 months of history — but they are more expensive. RAN Funding offers both, and our advisors can help determine which is right for your situation.

Equipment financing is a loan or lease used to purchase business equipment, where the equipment itself serves as collateral. Common uses include vehicles, machinery, medical devices, restaurant equipment, and technology. Because the equipment secures the loan, rates are typically lower than unsecured products. Terms range from 2 to 7 years depending on the useful life of the equipment. RAN Funding can finance equipment purchases from $10,000 to $500,000.

Accounts receivable financing (also called invoice financing or factoring) allows businesses to borrow against outstanding invoices. Instead of waiting 30 to 90 days for customers to pay, you receive a cash advance (typically 70%–90% of the invoice value) immediately. When your customer pays, the lender collects and releases the remaining balance minus a fee. This is ideal for B2B businesses with slow-paying commercial clients.

Yes. RAN Funding serves established businesses across all 50 U.S. states. Some financing products may have state-specific requirements or restrictions — for example, certain states have disclosure requirements for commercial financing. Our funding advisors are knowledgeable about state-level compliance and will guide you accordingly.

RAN Funding is committed to transparency. All fees, factor rates, holdback percentages, and total repayment amounts are disclosed before you sign any agreement. There are no application fees, origination fees, or prepayment penalties on our standard products. We encourage all clients to read their agreements carefully and ask questions before signing.

Yes. Many RAN Funding clients renew their advances after repaying 50% to 75% of their current balance, or after full repayment. Returning clients often qualify for larger advance amounts and improved terms based on their repayment history. Building a track record with a funding partner is one of the best ways to access better rates and higher limits over time.

Working capital is the money available to a business for day-to-day operations — covering payroll, inventory, rent, utilities, and other short-term expenses. Many businesses, even profitable ones, experience cash flow gaps due to timing differences between when they earn revenue and when they collect it. Working capital financing bridges these gaps and allows businesses to operate smoothly and take advantage of growth opportunities.