Cedarland Lending, a small-business funding service in Roswell, NM, answers common owner questions here: whether a business loan can pay the owner, whether an LLC can borrow, what a personal guarantor is, whether a merchant cash advance is a loan, and what happens after a request is sent. Every answer points to the Cedarland page that covers it in full.
About using the money
May a business loan cover the owner's own pay?
Loan funds are meant for the purpose stated in the request. Owner pay that is a normal, documented part of running the business may be covered as part of operating costs, but a request that is really for personal use is not what business funding is for. Describe the actual expense honestly.
Can a business loan pay off another business loan?
Refinancing costlier business debt is a common use. Partners will want the payoff amount and the current payment schedule.
Can I use one request for two purposes?
Yes, if both are stated. For example, equipment and the working capital to install it can be described in one request; partners may split them into two structures.
About eligibility
Do LLCs qualify for business loans?
Yes. LLCs, corporations, partnerships and sole proprietors all appear in partner reviews. LLCs usually show their formation record and operating agreement, and owners are often asked for a personal guarantee.
Who counts as the personal guarantor on a business loan?
The person who signs a personal guarantee, usually an owner, agreeing to be responsible for the debt if the business does not pay. Read more in the post on personal guarantees.
Do you fund startups or consumer loans?
No. Requests are for operating businesses. Cedarland does not arrange personal, payday, auto title, startup or SBA loans.
About merchant cash advances
Would a merchant cash advance count as a business loan?
No. An advance is a purchase of future card or bank receipts, collected as a share of sales. It is often costlier than a loan when converted to total dollars. See the merchant cash advance page for the holdback, the factor rate and a worked example.
About the request
Once the Cedarland form is sent, what follows?
Cedarland follows up by phone or email, asks a few questions and prepares the request for partners. The four steps are on the how-it-works page.
Worth reading anything before calling Cedarland?
The guides and calculator cover licenses, permits and contractor licensing in New Mexico, and the blog covers equipment, gas station purchases, guarantees and loan proposals.
By Cedarland Lending · Updated