Alta Business Loans application opens online pre-qualification for businesses

Alta Business Loans has introduced a secure online application that lets established U.S. companies seek pre-qualification for eight types of commercial financing through a single intake process. The Alta Business Loans application typically takes less than 10 minutes, carries no application fee and does not require a hard credit inquiry during initial pre-qualification, according to the company.

The launch places a commercial finance brokerage more directly into the digitization of small-business credit, where borrowers increasingly expect faster screening before committing to a financing product. For operators, the practical change is that several funding routes can be reviewed through one form rather than separate preliminary processes for each category.

How does the Alta Business Loans application work?

The application is designed for eligible, revenue-generating businesses and collects information used to assess potential financing routes. During the first pre-qualification stage, Alta Business Loans says it does not ask for a Social Security number or bank login credentials, and the process does not affect personal credit.

The eight financing paths covered are working capital, revenue-based financing, equipment financing, invoice factoring, accounts receivable financing, purchase order financing, commercial real estate financing, and franchise or business acquisition funding using eligible retirement funds.

Commercial finance brokerages typically match business borrowers with funding products based on revenue, time in business, receivables, collateral, purchase orders or property characteristics. That structure can be useful for companies that may qualify for more than one form of capital, or that do not fit the requirements of a conventional bank loan.

What financing options are included?

Working capital financing may be used for payroll, inventory, marketing, expansion and operating expenses. The company lists a typical applicant as having at least 12 months in business, annual revenue of $100,000 or more, an active business checking account and personal credit around 600 or higher.

Revenue-based financing is aimed at businesses with recurring sales that may not meet traditional financing standards. Alta Business Loans says typical applicants have at least six months in business, average monthly revenue of $10,000 or more, consistent bank deposits and personal credit around 500 or higher.

Equipment financing covers assets such as commercial vehicles, construction machinery, restaurant equipment, medical devices, manufacturing systems and computers. Invoice factoring and accounts receivable financing are tied to unpaid customer invoices, while purchase order financing is used when a company has a confirmed commercial or government order and needs funding to pay suppliers.

Commercial real estate financing may apply to rental and multifamily properties, mixed-use assets, retail and office locations, warehouses, industrial properties, bridge projects and fix-and-flip investments. The company identifies typical applicants as having personal credit of at least 650 and roughly 20% to 25% available equity.

The final category covers franchise and business acquisitions through a Rollover for Business Startups, or ROBS. Alta Business Loans describes ROBS as a non-loan structure that generally requires at least $50,000 in eligible retirement funds, a former-employer retirement account, active involvement in the business and a qualifying C corporation.

What costs can borrowers expect?

There is no application fee, according to Alta Business Loans. Costs tied to an accepted financing option depend on the program selected and may include interest or factor costs, origination or documentation charges, factoring fees, commercial real estate appraisal or closing costs, and setup or administration fees for ROBS plans.

Business owners receive available costs, payment terms and program details before deciding whether to continue. The secure online business financing application is aimed at a broad range of sectors, including restaurants, retailers, contractors, logistics firms, manufacturers, staffing agencies, healthcare practices, hotels, e-commerce companies, farms, professional service firms and commercial real estate investors.