Frequently asked questions

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Every business decision should be taken after reviewing the best information available. At Idea Financial we make sure that you understand our financial solutions and terms. Below you will find answers to questions we frequently encounter. You can reach out to our Business Advisors for more information at any time.

Credit Application

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What information do you need from me to apply?

Idea Financial offers a quick and efficient paperless application process broken down into three steps.

  1. First we will ask for basic details about your business such as time in business, entity type and revenue figures
  2. Next we will ask for business owner information including ownership structure and SSN.
  3. Last, we will ask for a secure connection to your business bank account or for bank statements for the most recent 6 months.

You can start your risk-free application here. Applying does not affect your credit score.

We use advanced encryption to keep your information safe in accordance with our Privacy Policy.

2

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How soon can I get a decision from Idea Financial?

Idea Financial can provide a decision in minutes if we have all the necessary information and you link your bank account. Funding can become available within a business day.

3

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What products can I apply for?

We currently offer financing in the form of a business line of credit and a term loan across the United States. The Idea Financial Line of Credit and Term Loan are subject to Idea Financial’s final approval. In the near future, we will offer case financing for law firms nationwide. Through our partners we also offer a variety of financing options including SBA loans, disaster relief loans, Payment Protection Program loans, and more.

4

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Can I apply in person?

You can certainly apply in person, though we recommend that you apply online to speed up the application process. Our offices are located in Miami, FL and Richmond, VA.

5

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Is there a cost to apply for financing from Idea Financial?

There is no cost to apply for financing from Idea Financial. Our application is risk free, has no costs, and doesn't affect your personal credit score.

6

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Will Idea Financial pull my personal credit report?

We will conduct a "soft pull" or "soft inquiry", which means that your credit score WILL NOT be affected.

7

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Do I need to link my bank account with Idea Financial?

We encourage customers to link their business bank account to Idea Financial. This speeds up application processing as well as fund transfers. By linking your account, we are able to verify bank account ownership and other bank information faster.

8

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What happens after I apply?

After we receive your application, we will review it to ensure that we have the necessary information, and will reach out to you if we don't. Once we have a complete application we will proceed with a credit review and will provide you with an offer within a business day. The offer will include the financing terms, the product types, and next steps to access your funds.

9

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Can I take additional financing from another online lender while having financing from Idea Financial?

We do not permit you to take any new additional loans from online lenders that come in the form of daily, weekly or bi-weekly payments. Taking additional financing from such lenders decreases your ability to service your debt and can be dangerous to the health of your business. If you have additional financing needs, contact your dedicated Business Advisor. We do permit additional financing from the SBA.

10

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Can I take financing from the SBA while taking financing from Idea Financial?

Yes, we encourage our customers to take advantage of SBA loans.

11

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Are there fees to keep my Idea Financial account?

No, there are no fees to keep your Idea Financial account open.

12

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What businesses qualify for financing from Idea Financial?

We fund businesses that have:

  • A minimum of 2 years in business
  • $15,000 or more in monthly revenue
  • Owners with 650+ credit scores
  • Not a sole-proprietorship or nonprofit entity

You can start your risk-free application here. Applying does not affect your credit score.

We use advanced encryption to keep your information safe in accordance with our Privacy Policy.

13

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How long are your repayment periods?

Repayment periods vary from 6 to 18 months.

14

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How does Idea Financial determine its financing rates?

Rates are determined after our credit review. We use cash flow information, personal credit scores, and other metrics to determine our rates.

15

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How soon will I receive funds from Idea Financial?

This depends on your choice of transfer method. If you use an ACH transfer, funds will reach your account within one (1) business day. For some local and regional banks, it may take longer for the ACH transfer to arrive. If you choose to wire funds, then the funds reach your account almost instantly.

Line of Credit

1

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What is a business line of credit?

A business line of credit is a flexible funding solution that allows business owners to withdraw funds up to a certain credit limit and pay interest only on the funds withdrawn. Every time you draw funds, your balance owed increases. Every time you make a payment, your balance owed decreases and you're able to withdraw more funds. With a line of credit you can draw and repay funds as you wish as long as the balance outstanding doesn't go over your credit limit.

2

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What makes the Idea Financial Line of Credit special?

Our line of credit is a truly revolving, unsecured credit line with no annual fees and no repayment penalties. This means that you can withdraw funds and make payments as needed with interest accruing daily on any outstanding balance. Payments are due weekly, bi-weekly or monthly and are setup so that you repay the amount owed over long repayment terms, which makes your payment amount low. Every time you make a draw, your repayment period starts all over again, giving you the ability to see even lower payments.

3

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How is interest calculated?

Interest is calculated daily on the amount owed (i.e. the outstanding balance on your Idea Financial Line of Credit account). We apply the daily interest rate to the outstanding principal to arrive at the daily accrued interest. If there is any accrued interest, when you make a payment we apply the payment amount to the accrued interest first, then to any outstanding balance. The more payments you make, the lower your balance would be and the lower your interest cost would be as well.

4

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What if I don't need funds right away?

Even if you don’t need financing today, securing your line of credit ensures that funds will be available to you when the need arises. Unlike a term loan that requires you to start paying on the full amount immediately, the Idea Financial Line of Credit enables you to draw funds as needed, only paying for the funds used.

4

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How much money can I draw?

We have credit limits of up to $250,000. As a rule of thumb, you can draw funds up to your credit limit minus any outstanding balance. If your credit limit is $250,000, and your balance is zero (0), you can draw $250,000. You can draw as many times as you would like, as well, as long as you stay within your credit limit.

5

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How do I draw funds?

You will be able to draw funds by logging into your Idea Financial account online and submitting a draw request. You can also call your Business Advisor.

6

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How can I make payments to my Idea Financial Line of Credit?

For your convenience, we process payments automatically on a weekly, bi-weekly, or monthly basis. Should you wish to make a payment in addition to your weekly, bi-weekly, or monthly payment, you can do so logging into your Idea Financial account online and submitting a payment. You can also call your Business Advisor.

7

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How can I see a history of draws and payments?

You can see a history of all transactions on your account by logging in to your Idea Financial account online. You can also download the list of transactions.

8

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Once I open an Idea Financial Line of Credit account, am I obligated to start using the line right away?

No. You have 30 days from the account opening date to use your line of credit. If you do not make a draw within the first 30 days, the account will be closed. If you make a draw within the first 30 days, your line will remain open so that you can draw again.

Term Loan

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What is a business term loan?

The most common form of small business financing, a term loan is a lump sum of capital provided by the lender up front, that is paid off over time with a fixed or variable factor rate and repayment term. Idea Financial offers fixed rate term loans with repayment terms ranging from 6 to 18 months.

2

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How does the Idea Financial Term Loan work?

You, as the borrower, receive the total amount of the loan up front and pay it back over a fixed repayment term. The total payback amount is calculated by multiplying the factor rate by the loan amount. If the loan amount is $100,000 and the factor rate is 1.10, then the total payback is $110,000. There are no draw fees or origination fees, making this one of the simplest financing option for businesses. Once your loan has been paid down by 50%, you may be eligible for new terms.

3

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Are there fees associated with the term loan?

There are no draw fees nor origination fees. There is only a factor rate applied to the loan amount which is added to the loan amount to calculate the total loan payback.

4

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When do I receive my loan funds?

Once you sign your loan agreement, we will transfer the funds to your business bank account. If you use an ACH transfer, funds will reach your account within one (1) business day. For some local and regional banks, it may take longer for the ACH transfer to arrive. If you choose to wire funds, then the funds reach your account almost instantly.

5

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Can I prepay by term loan?

Yes. You may prepay your loan in full at any time and get a 50% discount on any unpaid interest. Login to your Idea Financial account online to pay off your loan.

6

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How can I get more financing?

You may be eligible for another term loan once your current loan is paid down by 50%. Reach out to your Business Advisor to find out how you can access more funds.

Idea Financial

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Who is Idea Financial?

We’re a team of experienced business advisors and financial services professionals who came together with an idea: to create funding solutions that empower you and your business. We offer a business line of credit and a term loan. Stay tuned for more financing products.

2

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How does Idea Financial work?

We provide fast and flexible financing to businesses across the United States. Fill out our risk-free application, provide some basic information about your business and its owners, and we'll provide you with funding options. Reach out and meet our Business Advisors, they will be delighted to help you Charge Your Business Forward™.

3

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Can I build business credit with Idea Financial?

Yes. Idea Financial reports to the main credit bureaus. By financing your business and making your regular payments you will build a strong business credit history.

4

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Does Idea Financial offer unsecured loans?

Financing from Idea Financial is backed by a personal guarantee from the business owner(s). We do not require collateral, however.

5

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Are there costs associated with closing my Idea Financial account?

No. As long as your outstanding balance is zero (0), you can close your account at any time and at no cost.

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Call us at (855) 900-7838

Applying is free and will not
affect your credit score