Frequently asked questions
Project Funding FAQ
How do I determine my company type?
There are 6 Major Company types.
Sole Proprietorships: The simplest business structure owned by one individual, where the owner is personally liable for all debts.
Partnerships: A business owned by two or more individuals who share profits and responsibilities, with partners generally personally liable for business debts.
Corporations: A legal entity separate from its owners, offering limited liability protection to shareholders, but facing double taxation on profits.
S Corporations: A corporation that meets IRS requirements for pass-through taxation, allowing income and losses to flow directly to shareholders while maintaining limited liability protection.
Limited Liability Company (LLC): A hybrid business structure providing limited liability protection and pass-through taxation to its owners, known as members.
Non-Profit: An entity that uses its revenue and donations to further a charitable, educational, religious, scientific, or social cause rather than distributing profits to shareholders or owners.
These aren’t comprehensive definitions, if you’d like more details, visit the IRS website.
What type of Funding Sources are there?
There are several types but here are some of the most popular:
Accredited Investor: An individual or entity that meets specific income ($200K+ annually) or net worth ($1M+) requirements set by the SEC, allowing them to participate in certain private investment opportunities not available to the general public.
Angel Investor: A high-net-worth individual who provides capital to startup companies in exchange for ownership equity or convertible debt, typically investing their own funds in early-stage businesses.
Bank: A traditional financial institution that provides loans, credit, and other financial services to individuals and businesses, typically requiring collateral and extensive documentation for lending.
Credit Union: A member-owned, non-profit financial institution that provides similar services to banks but often offers better rates and terms to its members.
Direct Lender: A non-bank financial institution that provides loans directly to borrowers without intermediaries, typically offering faster approval processes but at higher interest rates.
Family Office: A private wealth management advisory firm that serves ultra-high-net-worth individuals and families, managing their investments, tax planning, and estate planning.
Institutional Investor: Large organizations such as pension funds, mutual funds, insurance companies, and endowments that invest substantial sums of money in various financial instruments.
Investment Bank: A financial institution specializing in large and complex financial transactions, helping companies raise capital through IPOs, M&A, and other securities offerings.
Private Money: Funding from individual investors or private organizations that typically offer short-term loans secured by real estate or other assets, often with higher interest rates but fewer requirements than traditional lenders.
These definitions are for convenience only, if you’d like more info, visit the SEC website.
What are the three levels of involvement?
The three levels are:
Active: Direct daily involvement in running and managing the business operations, requiring full-time commitment and hands-on decision-making in all aspects of the business.
Semi-Passive: Limited operational involvement where the owner has managers handling daily operations but still maintains strategic oversight and makes key business decisions.
Passive: Minimal to no involvement in day-to-day operations, where the business runs independently through hired management teams, and the owner primarily receives profits from their investment.
What is EBITDA?
EBITDA or Earnings Before Interest, Taxes, Depreciation, and Amortization, is a financial metric that measures a company's operating performance before accounting for financial and tax obligations. It provides insight into a company's core operational profitability by excluding the effects of capital structure, tax environments, and accounting decisions related to depreciation and amortization.
General Questions
What is a funding broker, and how can they help my business?
A funding broker acts as an intermediary between businesses and lenders, helping you find the most suitable financing options while saving you time and potentially securing better rates than you might find on your own.
How long does the funding application process typically take?
Most funding applications vary widely based on a few different factors. 1. How quickly do you need the funding? 2. How difficult it is to obtain the funding? 3. How quickly our network is able to fulfill the funding requirements? While some can be processed in as little as 24-72 hours, more complex cases may take up to 2-4 weeks or longer depending on investors’ needs for final approval and funding.
What types of funding options do you offer?
We provide access to various funding solutions including business loans, equipment financing, invoice factoring, merchant cash advances, lines of credit, and SBA loans to meet diverse business needs.
What documents do I need to apply for funding?
Typically, you'll need 3-6 months of bank statements, tax returns, financial statements, and business registration documents, though specific requirements vary by funding type and amount requested.
What credit score do I need to qualify for funding?
While requirements vary by lender and product, most traditional loans require a minimum credit score of 650, though we have options for businesses with scores as low as 500 or no credit at all.
Are there any upfront fees for your services?
Our initial consultation and application process is free; any broker fees are typically built into the approved funding amount and disclosed upfront before you commit.
How much funding can my business qualify for?
Funding amounts typically range from $5,000 to $5 million, depending on your business revenue, time in business, credit score, and overall financial health for small businesses.
For larger businesses, there is no cap on the funding amounts.
What industries do you work with?
We work with most industries, though some high-risk industries may have limited options or require additional documentation for approval.
Do you require collateral for funding?
While some funding options require collateral, we offer many unsecured funding solutions that don't require any assets to be pledged.
What are your minimum requirements for applying?
Generally, we require at least 6 months in business, $10,000 in monthly revenue, and a credit score of 500+, though requirements vary by funding type.
How quickly can I receive funds once approved?
Upon final approval, funds can be deposited into your account within 24-48 hours for most funding products though it may vary by funding type.
Can I apply if I've been rejected by other lenders?
Yes, we work with multiple lenders and alternative funding sources, often finding solutions for businesses that have been rejected elsewhere.
What are your interest rates and terms?
Rates and terms vary significantly based on your qualifications and funding type, typically ranging from 5% to 45% APR with terms from 3 months to 10 years.
Can I get funding with tax liens or bankruptcies?
Yes, though options may be limited, we have specialized programs for businesses with past tax liens or bankruptcies that are at least 12 months old.
Do you offer startup funding?
While most of our products require at least 6 months in business, we do have some specialized programs for startups with strong business plans and good personal credit.
Can I pay off my funding early?
Most of our funding options allow for early payoff, though some may have prepayment penalties or minimum interest requirements.
What happens if I miss a payment?
Missing payments can result in additional fees and negative credit reporting; we encourage you to contact the funding company (Not Sage Investment Group) immediately if you anticipate payment difficulties so we can explore solutions.
Do you report to credit bureaus?
Most of our funding partners report to major credit bureaus, which can help build your business credit with timely payments. Sage Investment Group however does not.
Can I have multiple funding products at once?
Yes, many businesses utilize multiple funding products simultaneously, though this may affect your ability to qualify for additional funding.
How do I get started with the application process?
Simply complete our online application which will guide you through the process. Once you a matched with one of our funders, they will provide a list of required documentation.