Why Choose Us

IOU Central Offers Business Financing that Works With Your Business

When compared to other funding options such as merchant cash advances (MCA), finance company loans and collateral lenders, IOU Central is simply the fastest and best way to obtain a loan. IOU Central offers small businesses the opportunity to obtain financing without the more deliberate procedures necessary when dealing with traditional financial institutions and at a fraction of the cost of merchant cash advances. What's more, we don't ask for any collateral and our decision is usually made instantly. Some lenders can take more than 120 days to make a decision. The truth of it is, not all loans are created equal. We understand the distinct challenges that come with trying to acquire a small business loan. It's important to know all of your options, which is why we encourage you to take a closer look at the fundamental similarities and differences between a business loan from IOU Central, and a tradition bank loan, Small Business Administration (SBA) loan, or merchant cash advance.


See how we compare...

Bank Loan Merchant Advance IOU Central Loan
Government Regulated Loan Yes No Yes
Low Documentation Required No Yes Yes
Collateral-Free Loan No No Yes
Personal Guaranty Yes No Yes
Fast Decision Time No Yes Yes
Affordable Cost Yes No Yes
Automated Repayment System No Yes Yes
Accessible to Many Businesses No Yes Yes
Prompt Payments Can Improve Credit Yes No Yes

We offer real loans, conforming to regulatory requirements, and because our loans are repaid daily via our automated repayment system, borrowing on IOU Central is a much more responsible way of borrowing. You don't have to worry about managing your cash flow to make next months payment.

IOU Central Small Business Loans

We’re a web-based, government regulated financial lender that enables small businesses to apply for a small business loan, in a high-tech, low-touch way. Our loan program affords you an alternative to credit cards, merchant cash advances, and bank loans with no hidden fees or arbitrary rate hikes and automatic daily payments for easy cash flow management.

At IOU Central, you customize your loan request, specifying the length of time in which you’d like to repay your loan. We look holistically at credit history, cash flow, performance, and other elements to help determine the overall health of your business. If it’s a good fit, we fund the loan, in as little as two days.

Traditional Bank Loans

(From Dun & Bradstreet, Small Business Solutions)

Traditionally, banks are more conservative with their investment dollars. Unlike many venture capitalists or angel investors, they are far more likely to approve a loan for an established business over a start-up or emerging company. This is largely due to the fact that they are investing the money of their depositors.

However, thanks to government agencies such as the Small Business Administration (SBA), which work with many banks, small business owners can get business loans from banks with a strong business plan and well-prepared business loan request. Moreover, banks are more likely to give modest-sized loans, whereas venture capitalists are looking for much larger deals. First and foremost, prior to approaching a bank, you should have all your key documents in order, starting with a solid business plan. You will also need to have the most recent financial statements available, projections for the business (this is typically in the business plan) and a repayment plan, plus collateral.

Banks also want to know that you're making your own investment in the business. A bank is more likely to approve a loan if (pending a solid business plan) it sees that the owners are investing a good percentage of the necessary start-up capital into the business. To maximize your chances of receiving approval on a business loan from a bank, it's wise to look at the situation from the standpoint of the lender.

The smaller the business, the more closely the individual behind it will be evaluated. Most small businesses, in the forms of sole proprietorship or partnerships, are closely tied to the experience, know-how, and overall character of the owner(s). Therefore, you need to make sure you get your own financial records in order before asking for a bank (or any lender, for that matter) for money to start a business. A solid personal credit rating is also very important, since a small business is typically an extension of the individual who starts it.

Small Business Administration or SBA Loans

(From the Small Business Administration)

Whether you’re just starting a small business or expanding to take advantage of new opportunities, your business needs the right financing at the right time in order to succeed! SBA is committed to helping small businesses, which are the backbone of the nation’s economy, thrive! Working closely with a wide range of lending partners across the country, SBA has developed a number of financial programs that address the various needs of small businesses.

Please note that SBA does not offer grants to start or expand small businesses. Those grant programs that SBA does offer are primarily designed to expand and enhance organizations that provide small business management, technical, or financial assistance.

SBA provides a number of financial assistance programs for small businesses that have been specifically designed to meet key financing needs, including debt financing, surety bonds, and equity financing. The SBA offers numerous loan programs to assist small businesses. It is important to note, however, that the SBA is primarily a guarantor of loans made by private and other institutions and does not offer loans to small businesses.

Merchant Cash Advances

Merchant cash advances are one funding alternative for small businesses that process at least $2,500 a month in sales via credit card, and who are unable to secure much-needed capital through a bank or SBA loan. Essentially, a merchant cash advance is the purchase of future credit sales, with the advance repaid automatically through a daily fixed percentage of credit card sales.

Merchant cash advances can be particularly attractive to business owners whose low(er) credit scores prevent them from qualifying for small business loans, and many lenders of merchant cash advances will grant requests for a second advance once 85 percent of the initial advance has been repaid.

Also of note, where the successful repayment of conventional business finance loans positively impacts your credit score, the fulfillment of a merchant cash advance has no effect on credit history. Merchant cash advances providers are structured differently from more traditional types of business finance loans, fundamentally in that the lender is not required to comply with interest rate regulations. So the accessibility to quick cash can come at a steep price, regardless of credit history — in some instances as much as 150% equivalent APR.


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