Questions Quillhaven Financial in Huntington, West Virginia hears about applying for small business loans, equipment financing, leases, merchant cash advances and credit lines, with short answers and links to fuller pages.
Where to Apply for a Small Business Loan if You Operate in Huntington, WV
A Huntington, WV business can apply directly to a bank or credit union, to an online lender, to an equipment finance company through a dealer, or through a service such as Quillhaven that sends the request to funding partners. Each route has its own forms and its own way of reviewing.
For advising on a business plan or a loan package, the West Virginia Small Business Development Center runs a statewide network at wvsbdc.com; ask the center about any fees. Whichever route you choose, compare offers on total dollar cost.
Is Equipment Financing Debt That Shows Up on a Practice Balance Sheet?
Yes, in most cases. An equipment loan is a liability on the balance sheet, and the equipment is recorded as an asset that depreciates. Many leases also appear on the balance sheet under current accounting standards, as a right-of-use asset and a lease liability.
How a particular lease or loan is recorded is a question for your accountant, and it can matter if a lender has set a limit on total debt in another loan agreement.
Is Equipment Financing a Loan if the Dealer Calls It a Lease?
It can be. A lease where you will own the equipment at the end for a nominal sum, often called a dollar buyout, works much like a loan in practice. A fair-market-value lease, where you can return the equipment or buy it at its value at the end, is closer to a rental.
Read the end-of-term clause before signing, and compare the total of the lease payments plus any buyout with the cost of a loan for the same item. The equipment page has a worked loan example.
Is a Merchant Cash Advance a Loan, or a Sale of Future Card Receipts?
Rather than lending, a merchant cash advance provider buys future card receipts; it is not a loan. The provider pays a sum now and collects an agreed total from a share of each card settlement. There is no interest rate and no fixed maturity date, and collections fall if card sales fall.
Because it is not a loan, an advance is priced with a factor. Convert it to dollars and days before comparing it with a loan; the cash advance page shows how.
Draws, Limits and Renewals on a Credit Line, Answered Briefly
A line of credit has a limit, and you draw on it as needed. Interest is charged on the drawn balance. Most lines are reviewed each year, when the partner can renew, change or close the line, and some require the balance to reach zero for a period each year.
The credit line page covers limits, draws and renewals in more detail, and the interest calculator estimates the monthly interest on a draw.
By Quillhaven Financial · Updated
