American Lending Center Review

What are American Lending Center Loans?

In small business financing, regional centers play a pivotal role in fostering economic growth and job creation. These centers, such as American Lending Center (ALC), leverage their expertise and resources to provide funding solutions tailored to the unique needs of local businesses. Whether it's supporting expansion projects, bolstering infrastructure development, or facilitating job creation initiatives, regional centers like ALC serve as catalysts for progress within their communities. With a focus on transparency and integrity, ALC collaborates with foreign investors seeking opportunities to obtain permanent resident status through the EB-5 Immigrant Investor Program. By channeling investments into job-creating projects with a combined construction budget exceeding one billion dollars, ALC not only provides financial support to local businesses but also offers foreign investors a pathway to United States citizenship.

With a diverse array of loan programs, including the Small Business Administration's (SBA) 504 and 7(a) programs, as well as the Paycheck Protection Program (PPP), ALC caters to the diverse needs of entrepreneurs and small business owners across all 50 states. Whether it's financing for construction, working capital, business expansion, or equipment acquisition, ALC's loans provide a lifeline for businesses seeking to navigate the complexities of today's economic landscape and achieve their growth objectives.

Key Features

1. Paycheck Protection Program (PPP). ALC actively participates in the PPP, a vital initiative designed to support businesses during economic challenges, demonstrating its commitment to helping businesses weather uncertainties.

2. Substantial SBA Portfolio. ALC manages a significant Total SBA Portfolio, totaling over one billion dollars, underscoring its robust track record in facilitating small business financing across the United States.

3. Certified Development Companies (CDCs). ALC operates through Certified Development Companies (CDCs), non-profit corporations certified and regulated by the SBA. This collaboration enhances the reach of ALC's financing programs within local communities.

4. Flexible Loan Structures. ALC's loan programs feature flexible structures, such as the SBA 504 Loan Program, where approved businesses receive long-term, fixed-rate financing for acquiring fixed assets, promoting business growth and job creation.

5. Focused on Economic Development. ALC's commitment to economic development is evident in its support for businesses engaged in activities that stimulate local economies, bring new income into communities, and assist manufacturing firms within the United States.

6. Inclusive Eligibility Criteria. ALC's eligibility criteria emphasize inclusivity, allowing businesses with a range of structures, from sole proprietors to corporations and not-for-profits, to benefit from its financing solutions.

Pros and Cons

Pros

Cons

Reliability

American Lending Center (ALC) maintains a reputation for reliability and trustworthiness in small business lending. Founded in 2009 by CEO John Shen, ALC has emerged as a nationally recognized leader, offering a range of financing options tailored to diverse entrepreneurial needs. With a focus on integrity and transparency, ALC has facilitated economic growth and job creation across the United States. However, while ALC has garnered recognition for its services, it is not accredited by the Better Business Bureau (BBB). Despite this, ALC's track record, credentials, and commitment to client satisfaction underscore its reliability within the lending industry.

How to Apply for an American Lending Center Loan?

1. Research Loan Programs. Begin by researching the various loan programs offered by ALC, including the SBA 504 and 7(a) loans, to determine which best fits your business's needs and objectives.

2. Review Eligibility Criteria. Familiarize yourself with the eligibility requirements for ALC loans, which may include factors such as business size, industry, and financial standing. Ensure your business meets the necessary criteria before proceeding with the application.

3. Gather Documentation. Collect all required documentation for the loan application, which may include financial statements, business plans, tax returns, and other relevant information. Be thorough and organized in preparing these documents to expedite the application process.

4. Contact ALC. Reach out to American Lending Center to express your interest in applying for a loan and to obtain guidance on the application process. ALC's experienced professionals can provide valuable insights and assistance throughout the application journey.

5. Submit Application. Complete the loan application form provided by ALC, ensuring accuracy and completeness in all details. Attach the required documentation as outlined by ALC's guidelines and apply according to their specified procedures.

6. Undergo Evaluation. Once your application is submitted, ALC will conduct a thorough evaluation of your business's financial health, creditworthiness, and eligibility for the loan program. Be prepared to respond to any additional inquiries or requests for information during this stage.

7. Review Loan Terms. If your application is approved, carefully review the terms and conditions of the loan offered by ALC, including interest rates, repayment terms, and any applicable fees. Seek clarification on any aspects of the loan agreement that require further explanation.

8. Finalize Agreement. Upon acceptance of the loan terms, work with ALC to finalize the loan agreement and complete any remaining paperwork or documentation. Be sure to adhere to any deadlines or requirements stipulated by ALC to expedite the funding process.

9. Receive Funding. Once all requirements are met and the loan agreement is finalized, ALC will disburse the funds to your business according to the agreed-upon terms. Use the funds responsibly to support your business's growth and objectives.

Conditions and Requirements

Conditions

1. Competitive Interest Rates. ALC strives to offer competitive interest rates on its loan products, ensuring that borrowers can access financing at favorable terms.

2. Flexible Repayment Terms. Depending on the loan program and amount, ALC may offer flexible repayment terms tailored to the needs of the borrower, including longer loan durations and customizable repayment schedules.

3. Government Guarantees. Many of ALC's loan programs are backed by government guarantees, such as those provided by the Small Business Administration (SBA), which can reduce the lender's risk and enable borrowers to qualify for larger loan amounts or better terms.

4. Streamlined Application Process. ALC aims to provide a streamlined and efficient application process, minimizing paperwork and bureaucracy to expedite funding for borrowers.

5. Expert Guidance. Borrowers can benefit from the expertise and guidance of ALC's experienced professionals, who can provide personalized assistance throughout the loan application process and offer insights into the best financing options for their business.

6. Access to Additional Resources. In addition to financing, ALC may offer borrowers access to resources and support services, such as financial counseling, business workshops, and networking opportunities, to help them succeed and grow their businesses.

Requirements

1. Business Size. Borrowers must meet the size standards established by the Small Business Administration (SBA) for the specific loan program they are applying for. These standards vary by industry and are based on factors such as annual revenue or number of employees.

2. Financial Standing. Borrowers should have a stable financial history and demonstrate the ability to repay the loan. This may involve providing financial statements, tax returns, and other documentation to verify the financial health of the business.

3. Creditworthiness. Lenders typically assess the creditworthiness of borrowers to evaluate their likelihood of repaying the loan. While specific credit score requirements may vary, borrowers with a strong credit history are more likely to qualify for favorable loan terms.

4. Business Plan. Borrowers may be required to submit a comprehensive business plan outlining their objectives, strategies, and financial projections. A well-developed business plan helps lenders assess the viability of the business and its ability to generate revenue.

5. Collateral. Depending on the loan program and amount, borrowers may need to provide collateral to secure the loan. Collateral can include business assets such as real estate, equipment, or inventory, which serve as security for the lender in case of default.

6. Personal Guarantees. In some cases, lenders may require personal guarantees from business owners or partners, especially for loans to small businesses with limited assets or track records. Personal guarantees hold individuals personally liable for repaying the loan if the business is unable to do so.

7. Legal Documentation. Borrowers must provide legal documentation verifying the existence and structure of the business entity, such as articles of incorporation, partnership agreements, or operating agreements.

Ways to Receive the Money

1. Direct Deposit. A common method for receiving loan funds is through direct deposit into the borrower's business bank account. This electronic transfer provides a quick and convenient way to access the funds directly, eliminating the need for paper checks or physical visits to the bank.

2. Wire Transfer. ALC may also arrange for a wire transfer of funds to the borrower's designated bank account. Wire transfers offer a secure and expedited way to receive large sums of money, typically within one business day.

3. ACH Transfer. Automated Clearing House (ACH) transfers are another option for receiving loan funds electronically. ACH transfers are similar to direct deposits but may take slightly longer to process, usually within 1-3 business days.

Products

1. SBA 504 Loan Program (from $500,000 to $5 million or more). This program is designed to provide long-term, fixed-rate financing for acquiring fixed assets, including real estate and equipment, fostering business expansion and job creation.

2. SBA 7(a) Loan Program (from $50,000 to $5 million). SBA 7(a) loans are versatile and can be used for various business purposes, including working capital, equipment purchase, and real estate acquisition.

3. State Small Business Credit Initiative (SSBCI) Programs (vary based on state-specific initiatives and business needs). SSBCI programs aim to support small businesses by providing access to capital for various purposes, such as capital access, collateral support, loan guarantees, and venture capital.

4. Paycheck Protection Program (PPP Loan). In June 2020, the Department of Treasury and SBA authorized ALC as a Paycheck Protection Program (PPP) lender, making it one of the few nonbank institutions entrusted with offering urgent financial assistance to distressed small businesses. By the program's conclusion in May, ALC had successfully approved PPP loans for nearly 30,000 eligible small business borrowers spanning all 50 states and Washington DC.

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Reasons for Getting Rejected for an American Lending Center Loan

1. Insufficient Creditworthiness. ALC may reject loan applications from borrowers with poor or insufficient credit history. Lenders typically assess credit scores and credit reports to evaluate a borrower's likelihood of repaying the loan. Past defaults, late payments, or high levels of debt can negatively impact creditworthiness and lead to rejection.

2. Inadequate Financial Stability. ALC may decline loan applications from businesses that lack financial stability or demonstrate an inability to generate sufficient revenue to repay the loan. Lenders typically review financial statements, tax returns, and cash flow projections to assess a borrower's financial health and stability.

3. Limited Collateral. ALC may require collateral to secure the loan, such as real estate, equipment, or inventory. Borrowers who lack adequate collateral or fail to meet the lender's collateral requirements may be rejected for the loan.

4. Failure to Meet Eligibility Criteria. Borrowers must meet certain eligibility criteria to qualify for an ALC loan, including business size, industry, and legal structure. Failure to meet these criteria, such as being in a prohibited industry or having an ineligible legal structure, can result in rejection.

5. Incomplete or Inaccurate Documentation. ALC requires borrowers to submit comprehensive documentation as part of the loan application process, including financial statements, business plans, and legal documents. Incomplete or inaccurate documentation can delay the application review process and result in rejection.

6. High Risk Factors. ALC may reject loan applications from businesses deemed to be high risk, such as those operating in volatile industries or experiencing financial distress. Lenders assess various risk factors, including industry trends, market conditions, and business performance, to determine the level of risk associated with lending to a particular borrower.

7. Failure to Demonstrate Repayment Ability. ALC requires borrowers to demonstrate their ability to repay the loan based on their current and projected financial performance. Businesses that fail to provide convincing evidence of their repayment ability may be rejected for the loan.

8. Non-Compliance with Regulatory Requirements. ALC operates within regulatory guidelines established by government agencies such as the Small Business Administration (SBA). Borrowers who fail to comply with these requirements, such as those related to industry-specific regulations or government programs, may be rejected for the loan.

How to Repay an American Lending Center Loan?

1. Review Loan Terms. Familiarize yourself with the specific terms and conditions of your ALC loan, including the repayment schedule, interest rate, and any fees or penalties associated with late payments or early repayment.

2. Set Up Payment Method. Determine the preferred method for making loan payments, which may include online payments, automatic bank transfers (ACH), check payments, or wire transfers. Ensure that you have the necessary funds available in your designated bank account to cover the loan payments on time.

3. Make Timely Payments. Adhere to the agreed-upon repayment schedule by making timely payments according to the frequency specified in the loan agreement (e.g., monthly or quarterly). Prompt payment ensures that you stay in good standing with ALC and avoid potential late fees or penalties.

4. Monitor Payment Status. Keep track of your loan payments and monitor your payment status regularly to ensure that payments are processed correctly and applied to your loan account. Review your loan statements or online account portal provided by ALC for updates on your payment history and outstanding balance.

5. Communicate with ALC. Maintain open communication with ALC regarding any changes to your financial situation or difficulties in making loan payments. If you anticipate challenges in meeting your repayment obligations, contact ALC promptly to discuss potential solutions or alternative arrangements.

6. Consider Early Repayment. If you have the financial means to do so, consider paying off your ALC loan early to save on interest costs and reduce your overall debt burden. Review the terms of your loan agreement to determine if there are any prepayment penalties or fees associated with early repayment.

7. Seek Assistance if Needed. If you encounter financial hardship or unforeseen circumstances that impact your ability to repay your ALC loan, seek assistance from ALC's customer service team or a financial advisor. They can provide guidance on potential options, such as loan modification, deferment, or restructuring, to help alleviate financial stress and avoid defaulting on the loan.

Alternatives

American Lending Center (ALC) facilitates 7(a) loans, providing a reliable avenue for small businesses seeking financial support. These loans, backed by the Small Business Administration (SBA) and issued by private lenders, boast extended repayment terms and competitive interest rates. With a maximum loan amount of $5,000,000 and a minimum credit score requirement of 650, ALC's offerings cater to diverse business needs, promoting growth and sustainability within the entrepreneurial landscape.

OnDeck stands out as a swift solution for small-business proprietors aiming to broaden their horizons, even with less-than-perfect credit histories. This lender offers fast-term loans with a maximum amount of $250,000, extending a helping hand to those with a minimum credit score of 625. While the estimated annual percentage rates (APRs) range between 35.40% and 99.90%, OnDeck's accessibility serves as a beacon for entrepreneurs eager to seize opportunities and propel their ventures forward.

Accion emerges as an inclusive option for enterprises encountering hurdles in obtaining conventional financing. This lender prioritizes funding initiatives toward minority, women, and low-to-moderate-income entrepreneurs, fostering diversity and economic empowerment. With a maximum loan amount of $250,000 and a minimum credit score requirement of 570, Accion offers a supportive environment for businesses aiming to thrive. Estimated APRs ranging from 7.49% to 29.67% underscore Accion's commitment to providing accessible and equitable financial solutions.

SBA microloans, facilitated through approved intermediaries, serve as a lifeline for small businesses navigating the financial landscape. Funded by the U.S. Small Business Administration, these small-sized loans cater to entrepreneurs seeking modest yet impactful financing. With a maximum loan amount of $50,000 and a minimum credit score requirement of 620, SBA microloans offer flexibility and support to aspiring business owners. Estimated APRs ranging from 8.00% to 13.00% emphasize the affordability and viability of these loans in fostering entrepreneurial endeavors.

Loans like American Lending Center

OnDeck

OnDeck stands out as an excellent choice for short-term business loans, offering the flexibility of borrowing substantial amounts, even for businesses with a minimum credit score. What makes OnDeck particularly attractive is its ability to provide funds swiftly, with same-day approval and disbursement for qualifying applicants. Moreover, OnDeck emphasizes the opportunity to build and strengthen business credit by consistently making on-time payments. The loan terms range from 18 to 24 months, with loan amounts spanning from $5,000 to $250,000. While the starting interest rate is 35.40% for a portion of customers, the accessibility and speed of funding make OnDeck a notable player in the short-term business loan landscape.

Funding Circle

Funding Circle distinguishes itself in the realm of long-term business loans by offering competitive rates, extended repayment terms, and a lack of prepayment penalties. This lending option caters to businesses seeking larger loan amounts, ranging from $25,000 to $500,000, with a reasonable starting interest rate of 11.29%. Beyond financial support, Funding Circle prioritizes efficiency, enabling businesses to access funds in as little as two business days. Notably, Funding Circle also showcases its commitment to diversity by providing funding options specifically tailored for women-owned businesses and minority entrepreneurs. The loan terms extend from 6 to 84 months, making Funding Circle a favorable choice for businesses with a more extended financial horizon.

Credibly

Credibly positions itself as a reliable source for working capital loans, particularly for businesses requiring quick funding to address immediate operational needs like payroll or inventory expenses. Notably, Credibly's working capital loans boast a rapid approval process, often providing funds in less than 24 hours. The lender exhibits flexibility by considering applicants with a minimum credit score of 500 and a willingness to look beyond a less-than-perfect credit history, provided there is a healthy annual revenue. Beyond working capital loans, Credibly collaborates with a network of lenders to offer a diverse range of financing options, including merchant cash advances, business lines of credit, equipment financing, SBA loans, and invoice factoring.

Fundbox

For startups in need of swift financing, Fundbox presents an appealing option with its business line of credit, offering up to $150,000. What sets Fundbox apart is its relatively lenient eligibility criteria, allowing new companies to qualify after just six months of operation and a minimum annual revenue of $100,000. The business line of credit provides the flexibility to withdraw funds as needed, and businesses only pay interest on the amount utilized. Additionally, Fundbox offers perks such as up to 20% off fees through its Fundbox Plus upgrade. With competitive starting interest rates ranging from 4.66% for 3-month terms to 8.99% for 6-month terms, Fundbox addresses the financial needs of emerging businesses seeking quick and accessible startup loans.

Editorial Opinion

Important

How to Choose a Lender

1. Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.

2. Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.

3. Carefully review all the terms and conditions of your payday loan contract.

4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.

5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.

6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.

Methodology

At Finanso, we've carried out a comprehensive analysis of over 50 business lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.

Additional Resources

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• GoKapital Reviews

Sources

• American Lending Center
• American Lending Center SBA Loans
• Small-Business Loans: Compare and Apply