Disclosures
The page every number on this site points back to: who funds which product, what a working capital advance actually is, a representative example in full, fees, prepayment, liens, and state disclosure notices.
Who funds what
Prepline Capital underwrites and funds working capital advances, lines of credit, equipment financing, and factoring facilities directly, from its own capital, through in-house underwriting.
SBA 7(a) loans, SBA Express loans, and term loans above $500,000 are packaged by Prepline Capital and placed with bank and SBA-preferred lending partners. Prepline Capital does not make SBA credit decisions. Where a file is placed with a partner, the partner is identified to you in writing before you sign.
What a working capital advance is, and is not
A working capital advance is the purchase of a specified dollar amount of your business’s future receivables at a discount. It is not a loan. There is no interest rate, no amortization schedule, and no annual percentage rate, because there is no term of repayment in the sense a loan has one. You repay a fixed total amount through fixed daily or weekly ACH debits until the purchased amount is delivered.
Representative example
Representative example — working capital advance
- Amount funded
- $150,000
- Total payback
- $190,500
- Cost of funding
- $40,500
- Daily payment
- $756 across 21 business days per month
- Weekly payment
- $3,664
- Expected duration
- 12 months
- Status
- An illustration, not an offer. Your amount, payback, and payment depend on underwriting.
This is an illustration, not an offer. Your amount, payback, and payment depend on underwriting. The same figures power the funding estimator on the home page, which is likewise illustrative.
Fees
Prepline Capital charges no application fee. An origination fee may apply and, if it does, it is disclosed on your offer and deducted from the funded amount before disbursement. Returned-payment and default fees, if any, are stated in your contract. There are no hidden fees and no fees added after signing.
Prepayment
Working capital advances carry a prepayment discount of up to 30% of the remaining cost of funding when paid off within the first 30, 60, or 90 days. The exact schedule is stated in your contract. In-house term loans up to $500,000 carry no prepayment penalty. Partner-placed term and SBA loans follow the partner’s and the SBA’s prepayment terms, which are disclosed in the term sheet.
Personal guarantee and liens
Working capital advances require a personal guarantee of performance. Term loans and lines of credit require a personal guarantee and a UCC-1 filing. Equipment financing is secured by the financed equipment; files under $250,000 do not carry an additional blanket lien.
State disclosures
Commercial financing disclosure statements are provided as required in California, New York, Utah, Virginia, Georgia, Florida, Connecticut, Missouri, and Kansas, and in any other state that adopts a commercial financing disclosure requirement. Where a state requires a specific disclosure format and an estimated APR, that disclosure is delivered with your offer before you sign.
Timelines
“24 hours,” “same day,” and “about 4 hours” describe typical outcomes on complete files during business days, Monday through Friday, 9:00 AM to 7:00 PM ET. Holidays, incomplete files, bank verification delays and third-party response times can extend any timeline.
Trademarks
Toast, Square, Clover, DoorDash, Aloha, Oracle Micros, Lightspeed, SpotOn, TouchBistro and all other marks are the property of their respective owners. Reference to a point-of-sale or delivery platform on this site is descriptive and does not imply any affiliation, sponsorship, or endorsement.
See also: Compliance & Responsible Funding · Terms of Use · Privacy Policy · the six products.
Questions about any of this?
Call (888) 896-5559, Monday to Friday 9:00 AM to 7:00 PM ET.