American Business Lending is a non-bank lender that provides small business loans to companies across the country. It is based in Dallas, Texas, and is a preferred lender of the SBA.
As a non-bank 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 loans for companies that are developing and prefers projects that include 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 between $300,000 and $4 million. These loans carry a good interest rate, only 2.75 percent above the prime rate. The interest rates are variable and may be adjusted quarterly. The down payment requirement ranges between ten and twenty percent of the loan, which was among the lowest of the lenders that we reviewed.
The distribution of funds can vary depending on the specifics of your loan. It can come as a lump sum or as monthly draws; it may even require invoices to be submitted to American Business Lending.
Because the SBA 7(a) loans are highly regulated, there are few fees with a loan from American Business Lending. In addition to regular closing costs and the guarantee feed paid on the portion guaranteed by the SBA, American Business Lending only requires a packaging fee of $1,500.
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. After approval, it can take between 45 and 60 days to receive funding.
Though bare-bones, American Business Lending’s website does feature some useful information. It has a detailed section about the terms of the loans. It also features a step-by-step guide of the loan process, which shows how to apply for a small business loan. There is a downloadable application, but you are not able to apply online.
American Business Lending was very prompt in returning our calls and the loan officer we spoke with provided us with helpful information that was not on the website.
American Business Lending is a good option for borrowers looking for non-bank alternatives. It has a short approval time but a long wait for funds. Fund disbursement can vary depending on the loan, which may hamper some borrowers.