Frequently Asked Questions

• What kind of expenses can I spend my working capital loan on?
  • We structured our working capital loans to cover all kinds of expenses, such as:
    • Inventory and supplies
    • Marketing and outreach
    • Operating costs
    • Rent and utilities
    • Advertising
    • Other relevant business purposes

• What do I need to fill out a working capital loan application?
  • Apart from some basic personal information like your name, date of birth, and the title of your business, you’ll want to have a few essential documents on hand when you sit down to apply for a working capital loan. These include:
  • ID, including state-issued ID (like a driver’s license or passport)
  • Business tax returns
  • Personal tax returns
  • Bank statements from the last three months

• How long does it take to apply for a working capital loan?
  • We created our loan application to be as quick and convenient as possible. It should only take you 10 – 15 minutes to fill out an application and find out if you prequalify.
• What are the interest rates for working capital loans?
  • We offer working capital loans with interest rates that range anywhere from 8.49% – 24.99%. The rate may fluctuate depending on the loan terms you select. For instance, a short-term loan (1-5 years) will have a higher interest rate than a long-term loan.
• How are interest rates determined on working capital loans?
  • An interest rate is the amount of money a lender charges you for taking out a small business loan. If you are approved for a working capital loan, the interest rate on your small business loan can depend on multiple factors, such as:
    • The type of loan and financing: Each loan type comes with a different standard range of interest rates. Interest rates for credit cards, for example, are typically higher than interest rates for term loans.
    • Type of business: Some businesses are riskier to run than others. Lenders, including Accion Opportunity Fund, will consider what kind of business you’re in when setting your interest rates.
    • Time in business: Lenders will also consider how long you’ve been in business — and how steady your business is — before offering you rates.
    • Business financials: The stronger a business’s financials, the lower the interest rates lenders will feel comfortable offering.
    • Market interest rates: Lenders always look at national benchmark rates before setting their own interest rates. Make sure to look at them yourselfbefore you speak with a lender. That way you can tell whether the interest rate they offer you is higher or lower than average, and you can negotiate your loan terms accordingly.
    • Credit score: Most lenders look at both your business and personal credit scores to determine your creditworthiness. The higher your credit scores, the better your interest rate is likely to be. Accion Opportunity Fund looks at other factors beyond your credit score, like cash flow and your tax returnsto determine if we can lend to you.
    • Loan term: Lenders often charge lower rates for shorter-term business loans. Generally, the longer the term of the loan, the higher the interest rate will be.
    • Collateral: Finally, business owners who can offer collateral will get lower interest rates because the collateral provides extra financial security for the lender.
• Do I need collateral for a working capital loan?
  • Your business doesn’t need any specific collateral to be eligible for a working capital loan. This means you don’t have to back up your loan with assets like real estate or equipment. We do ask borrowers to place a blanket lien on loans over $50,000.