American Business Lending is a nonbank lender that provides small business loans to companies across the country. It's based in Dallas, Texas, and is a preferred lender of the SBA.
As a nonbank lender, American Business Lending can provide funding for small businesses that may not be able to get SBA 7(a) loans from banks. This service focuses on providing business financing for companies that are developing real estate projects such as commercial real estate purchase, new construction or acquiring businesses with real estate, although the loans can also include funds intended to purchase equipment, fixtures, furniture or inventory as well as funds to be used as working capital.
Loans from American Business Lending range from $300,000 to $5 million. These loans carry the standard SBA interest rate cap of 2.25% to 2.75% above the prime rate. The interest rates are variable and may be adjusted quarterly. The down payment requirement ranges from 10% to 30% of the loan, which is higher than the top lenders in our review.
The distribution of funds varies depending on the specifics of your loan. It can come as a lump sum or monthly draws, or it may even require you to submit invoices to American Business Lending.
Because the SBA 7(a) loans are highly regulated, there are a few fees with a loan from American Business Lending. In addition to regular closing costs and the guarantee fee paid on the portion guaranteed by the SBA, American Business Lending requires a packaging fee of $1,500.
To qualify for small business funding from American Business Lending, you must have a debt service coverage ratio of at least 1.2x, which is slightly higher than the SBA standard of 1.15x. The approval process is particularly swift, ranking near the top of the lenders we reviewed. After all appropriate documents are submitted, it only takes 72 hours for the decision to be made. However, after approval, it can take between 45 and 60 days to receive business funding, which is a longer wait than you'd see with many of its competitors.
Though bare-bones, American Business Lending's website features some useful information. It has a detailed section about the terms of the loans. It also features a step-by-step guide to the loan process and lists the documentation you'll be asked to provide. There's a downloadable application, but you can't apply online. Like every lender we reviewed, American Business Lending considers your business and personal credit, and it requires collateral and a personal guarantee from anyone owning 20% or more of your company.
American Business Lending is a good nonbank alternative to fund your real estate expansion, construction or acquisition. It charges a packaging fee, though, and its minimum debt service coverage ratio is slightly higher than the SBA standard. It has a short approval time but a long wait for funds, which may hamper some borrowers. Fund disbursement varies depending on the loan.
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