Taycor Financial Business Loans Review

Estimated APR range: Varies by product  Best for: Startups with low credit seeking equipment financing with quick turnaround times

Pros and cons of Taycor Financial

Taycor Financial small business loans review

Taycor Financial is a small business lender offering a wide range of financing solutions, including business term loans, lines of credits, accounts receivable factoring, SBA loans and more. With over 30 years experience, Taycor has a solid track record of providing affordable financing to early-stage startups and those with limited credit profiles, as well as helping more established companies take their businesses to the next level.

One of Taycor Financial’s popular products is its equipment loan, which offers 100% financing between $500 to $5,000,000 with no down payment required.

A major benefit of working with Taycor Financial is its flexible repayment plans — including seasonal or quarterly payments, plus the option to delay payments for up to 90 days.

However, origination and documentation fees may apply, which could increase the overall cost of your loan. In addition, some of Taycor Financial’s products are listed with factor rates, not  interest rates or APRs. Because of this, it can be hard to compare its products against other lenders.

Taycor Financial small business financing at a glance

*Based on the current Prime rate of 7.75% + a rate maximum set by the SBA

Term loans

Taycor Financial offers business term loans from $5,000 to $1,000,000 with terms ranging from 4 to 60 months. Funds can be used for practically any type of business expense, such as working capital, hiring staff, payroll, inventory and more. An origination fee of up to 5% may apply.

Instead of charging a regular interest rate, Taycor Financial uses a factor rate — which can often cost you more overall. You can convert factor rates in advance to get a better sense of how much you’ll end up paying. For example, if you borrow $5,000 with a factor rate of 1.25, your total loan cost would be $6,250. With a 12-month term, your converted interest rate would be 25%. In comparison, some lenders offer loans with interest rates starting as low as 3%.

Line of credit

If your business needs quick access to flexible funds, you could borrow between $10,000 to $1,000,000 with Taycor Financial’s business line of credit. Repayment terms range from 6 to 18 months with payments due either weekly or monthly. You can borrow up to your credit limit as often as needed, only paying for the amounts you withdraw.

Similar to term loans, this business line of credit has a factor rate instead of an interest rate. However, rates start at 0.96, which is lower than the term loan’s minimum rate of 1.1. An origination fee of up to 3.00% may apply. If approved, you could receive funds within four to 24 hours.

Accounts receivable factoring

Businesses with a significant amount of outstanding invoices can leverage them as collateral for accounts receivable factoring. The plus side of this type of financing is that you’re borrowing against money you’ve technically already earned. The downside is that if your client never pays your invoice, you’ll be out the bill plus financing costs.

Taycor Financial doesn’t share terms or factor rates on accounts receivable factor financing, but it does finance amounts of $10,000 to $1,000,000.

Cash advance

Merchant cash advances (MCAs) are an alternative form of business financing used to give you a lump sum in exchange for a portion of your company’s daily or weekly credit card sales. The advance can be used like a working capital loan to cover operating expenses in slower periods.

Taycor Financial offers MCAs between $5,000 to $3,000,000 with factor rates ranging from 1.15 to 1.45. An origination fee of up to 5.00% may apply. Payments are due on a daily or weekly basis, which could be a strain for companies with a tight budget. However, an MCA could be a good option for newer businesses needing emergency funds since the eligibility requirements are less strict, with a turnaround time of around four to 24 hours.

Equipment financing

Taycor Financial offers 100% equipment financing, allowing you to finance the entire cost of essential equipment for your business without making a down payment. You can borrow between $500 and $5,000,000 at interest rates of 7.90% to 28.00%, with funds delivered within 24 of approval. A documentation fee will apply, although the amount isn’t disclosed.

One advantage of Taycor Financial’s equipment loan is its flexible repayment options: You can get a 90-day deferment on payments, and then pay your bill monthly, seasonally, quarterly, or semi-annually. Loan terms range from 12 to 84 months.

Equipment leasing

If you’re not ready to commit to purchasing equipment, you could consider an equipment lease instead. Amounts range from $5,000 to $2,000,000 with terms lasting 12 to 84 months. Interest rates can be slightly higher with leasing than financing a purchase, starting at 5.99%, but maxing out at the same 28.00%. You will also need to pay a documentation fee on equipment leases.

Depending on your lease contract, at the end of the term, you have three options to consider: the fair market value plan, a $1 buyout or a 10% purchase option.

If you think the equipment will retain its value over the term of your loan, you might want to go with the $1 buyout option. However, a fair market value lease allows you to return the equipment, extend your lease, or purchase the equipment at its current fair market value. The 10% purchase option lets you either return the equipment or purchase it at 10% of the equipment cost or less.

Equipment refinancing

Taycor Financial offers equipment refinancing loans between $50,000 to $2,000,000. Interest rates range from 7.50% to 28.00%, plus an additional documentation fee. Repayment terms range from 24 months to 60 months, with a wide range of repayment options like with equipment financing.

Equipment sale leaseback

A sale leaseback agreement is when you sell your equipment to a lender and then have them lease it back to you. Leasebacks are commonly used for cash infusions in circumstances where you still need to use the equipment to conduct business.

Taycor Financial offers between $100,000 to $1,500,000 for equipment sale leasebacks. Terms are 24 to 60 months with interest rates of 7.50% to 28.00%, plus a documentation fee.

Payments are typically due monthly, though you can set them up to pay seasonally, quarterly or semi-annually. There is also a 90-day deferment option available. Loans are funded within 24 hours of approval.

SBA loans

Backed by the Small Business Administration (SBA), SBA loans take longer to secure than the rest of Taycor Financial’s lending products. The popular SBA 7(a) loan, which has slightly better rates and a higher borrowing maximum, can take anywhere from four to six months to fund. While an SBA Express loan is a little more expensive and only goes up $350,000, you can secure funding in just one to two months.

One advantage to getting an SBA loan is that loan rates and terms are overseen by the government. This means you can rest assured that your interest rate will never go above a predetermined maximum.

Taycor Financial borrower requirements

Taycor Financial’s business loan requirements vary from product to product. For example, you can qualify for a cash advance regardless of your credit score, making it an ideal option for bad credit financing. However, you need a personal credit score of at least 670 to secure an SBA loan.

Revenue requirements range from $48,000 to $96,000, with no minimum requirement for equipment financing and leasing. While many startup financing options require at least six months in business, Taycor Financial offers its equipment products to brand-new companies. Meanwhile, you need between three months and three years of business history to qualify for most of its other small business solutions.

In addition, Taycor Financial requires a personal guarantee for many of its products, which means you will be held personally liable if you fail to repay the debt.

Required documents

When applying for a business loan with Taycor Financial, you may need to provide the following documentation:

• Business bank statements
• Recent business tax returns 
• An AR Aging Report (for Accounts Receivable factoring), which is a document that shows your company’s outstanding customer payments and due dates

Alternatives to Taycor Financial

**Terms and rates based on SBA guidelines

Taycor Financial vs. Bank of America

If you like the wide range of small business products offered by Taycor Financial but prefer working with a brick-and-mortar bank, Bank of America could be a better fit. With over 6,000 locations throughout the U.S., you can get in-person support while streamlining your business’s financial needs. In addition to business loans and lines of credit, Bank of America offers business checking accounts, business credit cards, savings and CDs, investing, small business resources and a Preferred Rewards program for business members.

When comparing business loan interest rates, Taycor Financial’s factor rates for its lines of credit and term loans could end up being significantly higher than Bank of America’s starting interest rates. For example, if you convert Taycor Financial’s factor rate for a six-month term loan, the interest rate would be 49.99%. In comparison, Bank of America’s term loans start as low as 6.00%.

Both lenders offer similar loan products, though if you want a cash advance or Accounts Receivable factoring you’d have to go with Taycor Financial. If you want a commercial real estate loan or SBA 504 loan, Bank of America offers these options while Taycor does not.

While Bank of America doesn’t publicly share credit score criteria, most traditional banks have high minimum credit score requirements compared to alternative lenders like Taycor Financial, who works with credit scores as low as 500.

Taycor Financial vs. Capital One

Judging which lender wins is difficult when it comes to credit requirements and rates since Capital One doesn’t share this information publicly. Since Capital One is a traditional lender, it’s fair to assume that credit score requirements run high and interest rates trend low — although you won’t know for sure until you submit an official application. Additionally, your business needs to operate for at least two years to qualify for financing, while early-stage startups can qualify for several products with Taycor Financial.

While Capital One offers a similar suite of products to Taycor Financial, it doesn’t provide cash advances or accounts receivable factoring. However, if you need commercial real estate loans and SBA 504 loans, Capital One can help. In addition, Capital One offers a range of small business solutions, including business checking accounts, credit cards, capital management, credit card processing and more.

If you need quick access to cash, Taycor is the better bet since you can get same-day financing for its non-SBA loans and lines of credit. Meanwhile, it can take a few days or more when you work with Capital One, depending on the product. For businesses with high funding needs, Capital One can provide up to $5,000,000 across all categories, while only accounts receivable factoring and SBA 7(a) loans go that high with Taycor Financial.