Business Loan FAQ | BankShare

Question 1

What is BankShare and how does it work?

Accepted Answer

BankShare is a modern business lending platform that connects qualified businesses with tailored financing solutions. We simplify the lending process — you submit one application, our team reviews your financials, and we match you with the right loan product and terms. From application to funding can take as little as 2–5 business days depending on the product.

Question 2

Is BankShare a bank or a lender?

Accepted Answer

BankShare is a direct lender and lending marketplace. We originate certain loan products directly, and for others we work with a curated network of institutional lenders and bank partners to ensure you receive competitive rates and terms suited to your profile.

Question 3

What types of businesses do you fund?

Accepted Answer

We fund a wide range of businesses — from early-stage startups to established mid-market companies. Whether you're in retail, hospitality, construction, healthcare, technology, or real estate, we have products designed for your industry. Business must typically be registered in the U.S. and have a verifiable operating history.

Question 4

Is my information kept confidential?

Accepted Answer

Absolutely. All information you share with BankShare is protected under strict confidentiality agreements and industry-standard data encryption. We never share your financial details with third parties without your written consent. For complex deals like M&A, NDAs can be executed before any document sharing.

Question 5

What are the basic eligibility requirements?

Accepted Answer

Requirements vary by loan type, but generally: (1) Your business must be operating for at least 6 months (12+ months preferred), (2) minimum monthly revenue of $10,000, (3) U.S.-based business entity (LLC, S-Corp, C-Corp, sole proprietorship), and (4) a business checking account. Credit score requirements range from 550 to 680+ depending on the product.

Question 6

How long does the application process take?

Accepted Answer

Our online application takes under 10 minutes to complete. After submission, a loan advisor reviews your file within 2–4 business hours. For working capital and lines of credit, decisions can come same-day. SBA loans and M&A financing typically take 2–6 weeks due to additional due diligence requirements.

Question 7

What documents do I need to apply?

Accepted Answer

For most products you'll need: 3–6 months of business bank statements, your most recent business tax return, a government-issued ID, and basic business information (EIN, formation documents). For commercial real estate or M&A financing, you may also need financial statements, a business plan, or a CIM (Confidential Information Memorandum).

Question 8

Will applying affect my credit score?

Accepted Answer

The initial pre-qualification check is a soft pull and will not affect your credit score. A hard credit inquiry is only performed after you accept a loan offer and proceed to formal underwriting. We'll always notify you before any hard pull is made.

Question 9

Can I apply if I have bad credit?

Accepted Answer

Yes. We have products designed for borrowers with credit challenges, including Merchant Cash Advances and certain Asset-Based Lending options that focus more on revenue and business performance than personal credit scores. A credit score as low as 500 may still qualify depending on the product.

Question 10

What loan amounts are available?

Accepted Answer

Loan amounts range from $10,000 for smaller working capital needs up to $50 million+ for M&A financing and large commercial real estate transactions. The right amount for you will depend on your revenue, creditworthiness, collateral, and the specific product.

Question 11

What interest rates should I expect?

Accepted Answer

Rates vary by product and borrower profile. Working capital and MCA rates can range from 1.2x–1.5x factor rates. SBA loans typically carry rates of Prime + 2.75–3.75%. Commercial real estate rates range from 5.5–9% depending on LTV and term. M&A and subordinate debt structures are priced on a deal-by-deal basis.

Question 12

What is the difference between a term loan and a line of credit?

Accepted Answer

A term loan provides a lump sum of capital that you repay over a fixed period with scheduled payments — best for a specific one-time investment. A business line of credit is revolving: you draw funds as needed, repay, and draw again up to your credit limit — best for managing cash flow and recurring expenses.

Question 13

Do you offer SBA 7(a) and SBA 504 loans?

Accepted Answer

Yes. We originate both SBA 7(a) loans (up to $5 million, for working capital, equipment, and acquisitions) and SBA 504 loans (up to $5.5 million, for fixed assets like real estate and heavy equipment). Our SBA advisors guide you through the entire process including SBA compliance requirements.

Question 14

How are repayments structured?

Accepted Answer

Repayment structures depend on the product. Most term loans use fixed daily, weekly, or monthly ACH payments. Lines of credit typically require interest-only payments during the draw period, then principal + interest. MCAs use a percentage of your daily card receipts, so payments flex with your revenue.

Question 15

Are there prepayment penalties?

Accepted Answer

Many of our products have no prepayment penalties, especially working capital and term loans under 24 months. Some longer-term products like SBA loans or commercial real estate may have prepayment step-down schedules (e.g., 5-4-3-2-1%). Your loan advisor will clearly explain any prepayment provisions before you sign.

Question 16

What happens if I miss a payment?

Accepted Answer

We strongly encourage you to contact your loan advisor immediately if you anticipate difficulty making a payment. In many cases, we can work out a short-term deferral or restructure the payment schedule. Ignoring missed payments can result in late fees, negative credit reporting, and in severe cases, collections proceedings.

Question 17

Can I renew or increase my credit line?

Accepted Answer

Yes. After 6 months of on-time payments, most borrowers become eligible for a credit line increase or loan renewal. Your account manager will reach out proactively, or you can request a review at any time through your BankShare dashboard.

Question 18

What is M&A financing and who is it for?

Accepted Answer

M&A (Mergers & Acquisitions) financing is designed for businesses looking to acquire another company, merge with a strategic partner, or recapitalize an existing business. It's ideal for business owners seeking growth through acquisition, private equity sponsors, and management buyout teams. Typical deal sizes range from $2M to $50M+.

Question 19

What is subordinate debt / mezzanine financing?

Accepted Answer

Subordinate debt (or mezzanine financing) sits between senior secured debt and equity in a company's capital structure. It carries higher interest rates to compensate for the junior position in the event of default, but allows borrowers to leverage more capital without diluting equity. It's commonly used in LBOs, acquisitions, and real estate capital stacks.

Question 20

How long does an M&A financing deal take to close?

Accepted Answer

Typical deal timelines range from 6 to 12 weeks, depending on complexity, the availability of due diligence materials, and third-party processes (legal, appraisals, environmental reports). Our specialists work to compress timelines wherever possible without compromising deal integrity.

Question 21

Do I need an advisor or intermediary to apply for M&A financing?

Accepted Answer

Not necessarily. While many M&A transactions involve investment bankers or business brokers, BankShare works directly with buyers, sellers, and their counsel. We can also coordinate with your existing M&A advisor if one is engaged. The key requirement is a well-prepared CIM, financial model, and clear transaction rationale.

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