Taycor Financial Business Loans: 2023 Review
 | Estimated APR range: Varies by product. Best for: Business owners seeking equipment financing with a quick turnaround to funding. |
Pros and cons of Taycor Financial
| Pros | Cons |
|---|---|
Competitive rates on equipment financing Quick time to funding Wide range of lending products, including SBA loans Maximum loan amounts tend to be relatively large Relatively low credit score requirements on most products | Factor rates on lines of credit and term loans can end up being expensive depending on your offer Origination fees charged on some products Documentation fees charged on some products |
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Taycor Financial small business loans review
Taycor Financial is a small business lender with offices in California and Boston – though you can apply for funding from anywhere using their website. Taycor offers impressive rates on some products – like its equipment financing – but can get expensive if you’re looking for a term loan or line of credit. Maximum loan amounts are large and time to funding is lightning fast, so it can be a great match if you’re a borrower looking to get equipment quickly.
Who is Taycor Financial for?
- Those who need to borrow large amounts quickly. Taycor Financial has large loan maximums with quick time to funding.
- Business owners seeking equipment financing. Taycor has a wide range of equipment financing options with extremely competitive starting rates.
- Business owners with less-than-perfect credit. Depending on the product, you can secure financing through Taycor Financial with a minimum credit score of just 500.
Taycor Financial small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated interest or factor rate range | Fees |
|---|---|---|---|---|
| Term loan | $5,000 to $1,000,000 | 4 to 60 months | 1.10 to 1.36 rate factor | 0.00% - 5.00% origination fee |
| Line of credit | $10,000 to $1,000,000 | 6 to 18 months | 0.96 to 1.35 rate factor | 0.00% - 3.00% origination fee |
| Accounts receivable factoring | $5,000 to $5,000,000 | N/A | Not publicly shared | None |
| Cash advance | $5,000 to $3,000,000 | 2 to 24 months | 1.15 to 1.45 rate factor | 0.00% - 5.00% origination fee |
| Equipment financing | $500 to $2,000,000 | 12 to 84 months | 3.49% to 28.00% | Documentation fee |
| Equipment leasing | $5,000 to $2,000,000 | 12 to 84 months | 5.99% to 28.00% | Documentation fee |
| Equipment refinancing | $50,000 to $2,000,000 | 24 to 60 months | 7.50% to 28.00% | Documentation fee |
| Equipment sale leaseback | $100,000 to $1,500,000 | 24 to 60 months | 7.50% to 28.00% | Documentation fee |
| SBA 7(a) loans | $5,000 to $5,000,000 | 84 to 300 months | Rates vary, subject to SBA maximums* | None |
| SBA Express loans | $5,000 to $350,000 | 84 to 300 months | Rates vary, subject to SBA maximums* | None |
*Terms and rates based on SBA guidelines
Term loans
Taycor Financial’s term loans come with factor rates rather than interest rates. Factor rates tend to be more expensive than interest, but they are easier to calculate. You simply multiply the loan amount by the factor rate to get the total amount due. If you took out the minimum loan amount of $5,000 with a factor rate of 1.25, you would pay back $6,250 total. If your term were 6 months, that would be the equivalent of an interest rate of 49.99%.
Factor rates range from 1.10 to 1.36, with a max loan amount of $1,000,000, to be paid back within 4 to 60 months. There may be an origination fee of up to 5.00%. You can make payments anywhere from daily to monthly, and Taycor Financial says it funds loans within 24 hours of approval.
Line of credit
Factor rates on lines of credit are a little bit lower, ranging from 0.96 to 1.35. The minimum amount you can borrow is a bit higher at $10,000, though the max is the same as term loans at $1,000,000.
Sometimes you’ll have to pay an origination fee of up to 3.00%. Repayment terms range from 6 months to 18 months with payments due either weekly or monthly, and time-to-funding is 24 hours or less.
Accounts receivable factoring
If you have outstanding invoices, you 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 left holding 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 $5,000 to $5,000,000.
Cash advance
Cash advances are an alternative form of business financing used that gives you a lump sum upfront in exchange for a portion of daily or weekly credit card sales. The advance can be a form of working capital loan that enables your business to cover operating expenses in slower periods. Taycor Financial offers cash advances that also come with factor rates, this time ranging from 1.15 to 1.45. You may also incur an origination fee of up to 5.00%. With a cash advance, you can borrow anywhere between $5,000 to $3,000,000. Payments are due either on a daily basis or a weekly basis, and the time to funding is 24 hours or less.
Equipment financing
Taycor Financial offers 100% equipment financing, which means that you can finance the entire cost of equipment without making a down payment. You can borrow anywhere between $500 to $2,000,000 at interest rates of 3.49% to 28.00%. You will also incur a documentation fee.
You can get a 90-day deferment on payments, and then pay them monthly, seasonally, quarterly, or semi-annually. Loan terms range from 12 to 84 months, and the loan will be funded within 24 hours of approval.
Equipment leasing
You could also opt to lease equipment with identical repayment terms — except at the end of the term, you could opt to have the equipment purchased back from you for fair market value, a $1 buyout, or at 10% of the equipment’s value. Interest rates can be slightly higher with leasing than financing a purchase, starting at 5.99%, but maxing out at the same 28.00%. The minimum loan amount is also higher at $5,000. There are documentation fees on equipment leases. Lease financing is available within 24 hours of approval.
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. If you think the equipment will lose value, 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
If you have a larger loan of $50,000 to $2,000,000, you can refinance it with Taycor Financial at interest rates of 7.50% to 28.00%. Payments are due on the same schedule as new equipment loans, but terms only range from 24 months to 60 months. You can expect documentation fees on equipment refinancing, too. Funding is available in 24 hours or less after approval.
Equipment sale leaseback
When you enter a sale leaseback agreement, you’re selling your equipment to Taycor Financial, then having 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. You can do this for amounts between $100,000 to $1,500,000. Terms are 24 to 60 months with interest rates of 7.50% to 28.00%. There is also 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
SBA loans are backed by the Small Business Administration. These loans take longer to secure than the rest of the lending products from Taycor Financial. The SBA 7(a) loan, which has slightly better rates and a higher borrowing maximum, can take anywhere from four to six months to fund. An SBA Express loan is a little more expensive and only lets you borrow up to $350,000, but you can secure funding in just one to two months.
Taycor Financial borrower requirements
| Minimum annual revenue |
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| Minimum time in business |
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| Minimum credit score |
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Borrower requirements vary greatly from product to product at Taycor Financial. For example, you can qualify for a cash advance regardless of your credit score, making it a viable option for business owners with poor credit, but you’ll need a score of at least 670 to secure SBA financing.
Revenue requirements vary quite a bit, too, ranging from $48,000 to $96,000. While startup financing is available for equipment financing and leasing, you’ll need at least 3 years in business to refinance.
Required documents
Most of Taycor Financial’s lending products require documentation like bank statements and tax returns at the time of application. For accounts receivable factoring, you will also need to provide an AR Aging Report.
Alternatives to Taycor Financial
| Taycor Financial | Bank of America | Capital One | |
|---|---|---|---|
| Minimum credit score |
| Not publicly shared | Not publicly shared |
| Loan products offered |
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| Time to funding |
| Not publicly disclosed | A few business days up to three months, depending on product |
| Starting rates |
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| Not publicly disclosed |
| Maximum loan size |
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| $5,000,000 on all products |
| Minimum annual revenue |
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| No set minimum |
Taycor Financial vs. Bank of America
Taycor Financial offers some decently low credit score requirements on most of its products. While Bank of America doesn’t publicly share their numbers, minimum credit score requirements do tend to be higher when you borrow through a big, traditional bank. The flip side of that is that factor rates on Taycor Financial’s small business products like lines of credit and term loans add up to be a lot higher than the interest rates charged by Bank of America. Taycor’s starting rates on equipment financing and range of options for equipment loans make it far more competitive here.
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.
Taycor Financial vs. Capital One
It’s difficult to judge which lender wins out when it comes to credit requirements and rates as Capital One does not share this information publicly. However, Capital One does offer a similar suite of products except for cash advances and accounts receivable factoring. You’ll find commercial real estate loans and SBA 504 loans with Capital One while these aren’t available at Taycor Financial.
If you need funding fast, Taycor is the better bet with funding for most products under 24 hours. It can take a few days or more when you work with Capital One. You can borrow more money with Capital One on most products, though, with maximum loan amounts sitting at $5,000,000 across categories.