FAQ

With Inflection Financing's Preferred Lender status, most 7(a) facilities close in 21 to 45 days from a complete application. Non-preferred lenders typically take 60 to 120 days because their files must be re-underwritten by the SBA.

Most approvals require a personal FICO score of 680 or higher, though Inflection Financing will consider scores down to 650 when business cash flow and collateral are strong. SBSS (FICO Small Business Scoring Service) of 155+ is also reviewed.

The SBA caps 7(a) loans at $5,000,000 in principal. Larger transactions can be structured as a 7(a) plus a conventional pari passu piece, or as an SBA 504 for real estate.

Yes. Business acquisition is one of the most common 7(a) uses. The SBA permits 7(a) proceeds for change-of-ownership transactions, partner buyouts, and stock or asset purchases, subject to standard underwriting and a minimum 10% equity injection.

Loans with maturities of 15 years or longer carry an SBA-mandated prepayment penalty during the first three years: 5% in year one, 3% in year two, 1% in year three. Shorter-term 7(a) loans have no prepayment penalty.

Inflection Financing funds approved bridge facilities in 12 to 48 hours. The first wire often hits within one business day of executed documents when collateral diligence is straightforward.

Bridge loans are underwritten against both the borrower's repayment plan and the collateral. Hard money loans are primarily collateral-driven. Inflection Financing bridge pricing is materially lower than typical hard money because we evaluate the full credit profile, not just LTV.

Inflection Financing bridge facilities have no prepayment penalty after the third month. The first three months carry minimum interest to ensure the underwriting and origination cost is covered.

Up to 75% LTV on commercial real estate, 80% on stabilized rental property, and 65% on raw land or pre-development sites. Cash-flowing businesses can borrow against EBITDA at multiples up to 3.0x.

Yes — and this is a common Inflection Financing structure. We bridge the immediate close, then refinance the bridge into a 25-year SBA 7(a) facility once the property or business is seasoned and SBA-eligible.

Personal FICO 660 or higher is the typical floor for term-loan approval. Stronger scores unlock better pricing and longer amortization periods.

A term loan is a one-time draw that amortizes on a fixed schedule. A line of credit is revolving — you draw, repay, and re-draw as needed. Term loans are right for one-time projects; lines of credit are right for ongoing working capital cycles.

Yes. Refinancing MCAs is one of the most common uses of an Inflection Financing term loan, and one of the highest-ROI uses of capital we see. Most MCAs carry effective APRs above 60%; our term loans typically price under 16%.

No. Inflection Financing term loans are simple-interest and can be paid early without penalty, reducing total interest paid.

Working capital is sized to short-cycle needs (60 to 180 days) and is often revolving. A term loan is sized to long-cycle projects with predictable amortization. The right product depends on whether the use of funds will be repaid quickly from operations or needs to amortize over years.

Yes. Inflection Financing working capital can be structured as a revolving line — you draw, repay, and re-draw without re-applying. Lines are reviewed annually for renewal and limit increases.

We require 6 months minimum. Businesses under 12 months in operation will see tighter limits and slightly higher pricing, but qualification is possible with strong personal credit and consistent monthly revenue.

Yes. Inflection Financing finances used equipment up to 10 years old (15 years for heavy industrial). Used equipment typically requires a slightly higher down payment than new.

A sale-leaseback lets an operator sell already-owned equipment to Inflection Financing and lease it back, unlocking cash equity without losing the use of the asset. It's a common way to monetize equipment value without taking on a separate working capital loan.

Yes — equipment purchased with an Inflection Financing equipment loan is generally eligible for Section 179 expensing and bonus depreciation, subject to your tax advisor's analysis of your specific situation.

Both can fund owner-occupied real estate. SBA 504 is purpose-built for it: lower down payment (10%), longer fixed-rate period (25 years), and structured across two mortgages. 7(a) is more flexible — it can also fund working capital, equipment, or business acquisition alongside the real estate — but typically requires more equity.

No. SBA loans require owner-occupancy (the business must occupy at least 51% of the building for purchase, 60% for new construction). Investment property must be financed conventionally — which Inflection Financing also offers.

Yes. We close construction-to-permanent CRE loans in a single transaction, which avoids the rate and approval risk of a second close once the building stabilizes.