1000+ Businesses Served
$300M Deployed
20+ Lending Partners
500+ SMB Resources
- Payoff existing MCA balances
- Consolidate multiple debts
- Working capital for stabilization
The covenants and partnership
requirements
This is a managed journey, not just a loan. Here's what we require from you.
- No new MCA, factoring, or revenue-based financing debt during Phase 2
- Maintain minimum DSCR throughout the loan term
- Keep business in good standing with taxes and licensing
- Maintain required insurance coverage
- Make all payments on time during Phase 2
- Work with nonprofit consultants we connect you with
- Provide updated financials quarterly
- Submit year-end tax return promptly for Phase 3 timing
- Maintain open communication with your lending expert
- We're not just lending money
- We're managing your path from predatory debt to the best rates available
- These requirements keep you on track and prevent backsliding into bad debt
- This is a partnership where we both win when you reach SBA rates
- Taking new MCA debt is a default event
- You'll lose eligibility for Phase 3 SBA refinancing
- We may accelerate repayment or modify terms
- We built this program to help businesses escape predatory lending, not enable more of it
One missed payment doesn't disqualify you from SBA refinancing, but it could delay the timeline. SBA lenders want to see 12 consecutive months of on-time payments. If you miss one, the 12-month clock may restarts from your next on-time payment. If you hit cashflow issues, contact us for a potential injection.
We can facilitate a traditional term loan refinance instead. These are typically 15-20% APR with our partner lenders. You'll still cut your Phase 1 rate significantly, just not as dramatically as SBA would. We don't abandon you if SBA doesn't work out.
SBA lenders require a latest business tax return without MCA debt. There's no way around this. However, you can refinance to a traditional term loan after 6 months if you want to reduce your rate sooner.
You don't need to double your revenue to qualify for SBA. You just need to maintain stable performance and make on-time payments. As long as your business stays healthy, you're on track for Phase 3.
Yes, but there's a prepayment penalty in the first 6 months. After 6 months, you can pay off early with no penalty. When you refinance to SBA at 12 months, we waive any remaining prepayment penalties.
They have to. MCAs and factoring agreements cannot legally prevent early payoff. We handle the payoff directly and deal with your existing lenders. You don't have to negotiate with them.
Transportation, banking, financial services, speculation, real estate development, and several others are restricted due to SBA and insurance requirements. Full NAICS code list available upon request. If your industry is restricted, we'll tell you upfront.
We file a blanket UCC lien on your business assets. Depending on your credit profile, we may require additional collateral like real estate or equipment. Personal guarantees are required from all owners with 20%+ ownership.
Phase 1 origination fee is 6% of loan amount plus legal preparation fees. When you refinance to SBA in Phase 3, there will be closing costs from the SBA lender (typically 2-3% of loan amount). We disclose all fees upfront before you commit.
That's fine. There's no obligation to proceed to Phase 3. Some businesses prefer the flexibility of our 3-year term over the longer SBA commitment. You got out of predatory debt, which was the main goal.
$300M+
NAGGL Board
Preferred Lenders
20+ Years
What business owners are saying
Real feedback from real founders.
They turned complex financial challenges into smooth solutions — and made the process enjoyable.
The team at ChatBiz Finance are knowledgeable and seasoned professionals, further strengthened by an entrepreneurial spirit. I highly recommend them.
ChatBiz made it easy from day one. They advised me on my bookkeeping and helped me get approved when I really needed clarity and support. They’re true experts who got me the best structure for my financial goals.
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