Straightforward Answers to Your Questions

At United Capital, our goal is to be your valued business partner today and a trusted financing source for the future.

Our financing experts will always provide you with honest, easy-to-understand answers to help you make the best decisions for your business. The following are answers to the most common questions.

How does your application process work?

First, we'll talk with you about your finance requirements. If we don't think we can provide financing that's right for you, we'll say so quickly. Once we understand your needs, we'll propose terms that we think fit your requirements. If you agree, we'll quickly put them into a written proposal with all the specifics. We'll ask you to confirm that these terms work for you, request a small deposit and begin our review and approval process.

Why do you ask me to sign a written proposal before your approval process?

We want to be sure the terms and all the other details are clear and acceptable to you. We want you to know that there won't be any last minute surprises, hidden costs or conditions. Over the years, we have seen many cases of misunderstanding or outright misrepresentation of finance pricing or terms from other lenders. With us, you can be sure our documents will reflect the same terms as our proposal.

How long does it take to get a finance commitment?

Once you've agreed that our proposal is acceptable and you’ve supplied all the the necessary application information, our goal is to give you a decision within 7 business days. Obviously complicated transactions take more time and questions that come up during the review may need to be discussed but as a direct lender we are able to make all credit decisions in our Hunt Valley office.

Once the loan is approved how long does it take to close?

Documents for most transactions can be prepared in a couple days. Again, some transactions can be quite complicated and more time is needed to satisfy the approval conditions, but our goal is to get the paperwork in your hands quickly so that we can disburse the funds when you need them.

If we are financing a business acquisition, the amount of time it takes to close may also depend upon the seller and closing attorney and how quickly they supply the necessary documentation for closing.

What will my interest rate be?

The cost of credit depends on overall market conditions at the time of your application along with a variety of other factors. Other factors that affect rate are your time in business, financial condition, pay history with other creditors, personal credit, health of your industry, and collateral value (or lack of value) of the assets being financed.

An Important Word about Rates and Proposals

There are a number of components in every loan or lease that affect its cost (rate is only one of them) and how much you'll end up paying over the life of the loan. Many finance companies proclaim an attractive rate but don't tell you about the renewal provisions buried in their fine print. These are called "evergreen clauses" that state that if you forget to provide written notice and pay the "Purchase Option" price (even if it's only a dollar) within a very narrow time frame at the end of the lease, the lease automatically renews for another 12 months, or more, at the same payment. These lenders know that three, four or five years from now, most customers will miss that notice deadline and end up paying another 12 payments or a large lump sum to finish the lease. Of course, the additional payments at the end turn that low rate into a very high rate.

Can United Capital advise me about the terms of a competitor's offer?

Yes - we hate to lose an opportunity to do business but when we do, we'd like to know that you used another lender because they truly had something that was better for you. We will be happy to review any other proposals you have. First, a proposal is not a commitment and a commitment is not a closed loan. If you feel another loan or lease offer is better, we'd be happy to review the commitment or the actual documents at no cost to you. If there is an item you should be aware of, we'll point it out. If all is as it should be, we'll congratulate you on getting a good deal.

What payment terms do you offer?

Loan or lease terms can be from 24 to 120 months depending on your needs, the finance amount and the assets being financed. We try to determine a payment level that fits well with your current or expected cash flow and then work backwards to a term that will match. The shorter the term, the less you will repay overall. We can use a graduated (low to higher) payment structure to match developing cash flow without stretching the term longer than really necessary.

What amount may I borrow?

Individual loans or leases can be for as little as $100,000 and as much as $10,000,000 or more.

For what purposes may I borrow from United Capital?

For franchise businesses, we provide loans for new store development, acquisitions, equipment upgrades and remodeling as well as debt refinancing.

For general commercial businesses, we provide loans and leases for business equipment, build out and expansion.

We do not provide revolving credit lines, receivable financing, working capital, construction or real estate loans.

What fees do you charge with my loan?

In general, we charge a fee for credit processing and documentation. Loans for new store development, business acquisitions or other structured financing may require additional fees to cover more extensive due diligence, lien searches, or other specific costs.

What information do you require with my loan application?

For standard loan requests, we need a complete credit package which usually includes:

• Signed United Capital credit application, an explanation of the sources and uses of funds, and a current debt schedule on the business
• Several years financial statements and business tax returns
• Current year's interim financial statements
• Business owner financial information such as a personal financial statement and personal tax returns
• For business acquisitions, we will request a copy of the sale agreement
• For franchise businesses, we will ask for the franchise sales reports on each location

What collateral do you require?

For basic equipment loans and leases, the equipment assets we are financing generally serve as collateral for the loan.

We normally need the personal guaranty of the owner(s) of closely held businesses.

If we are financing the acquisition of a business or a new franchise business, we will require all business assets be pledged as collateral.

Don't see your question in this list?

For an answer to your question, e-mail info@ucbl-inc.com or call 800.928.8537.