Manifest Funding — Nationwide Business Financing FAQ
Provider: Manifest Funding (www.manifestfunding.us)
Last updated: January 6, 2026

====================================================
EQUIPMENT FINANCING
====================================================

Q: What is equipment financing and how does it work?
A: Equipment financing lets a business acquire machinery or technology by spreading payments over time. A lender pays the vendor; you repay in fixed installments, often secured by the equipment. Terms, rates, and down payments vary by credit strength, revenue, and asset type. It’s useful when you need gear now without draining cash reserves. (Non‑SBA; nationwide)

Q: Equipment loan vs equipment lease—what are the pros and cons?
A: A loan provides ownership and potential equity; payments are amortized and the asset may serve as collateral. A lease can lower upfront cost and offer easier upgrades but typically doesn’t build equity. Choose based on cash‑flow stability, expected usage period, tax considerations, and end‑of‑term plans.

Q: Can I finance used equipment?
A: Yes—if the asset is verifiable, serviceable, and has resale value. Expect shorter terms or higher rates than new equipment plus potential inspections or third‑party valuations. Eligibility depends on the asset class, age, hours, and your overall credit profile and revenues.

Q: What are typical requirements for equipment financing?
A: Lenders generally review business and personal credit, annual revenue and cash flow, time in business, and the equipment’s value. You’ll usually provide bank statements, tax returns, an equipment quote/invoice, and may be asked for a personal guarantee or down payment.

Q: How do I calculate equipment loan payments?
A: Payments are based on principal, APR, and term using the standard amortization formula. Add any fees rolled into financing and confirm payment frequency (monthly/seasonal). An amortization calculator helps estimate monthly payment, total interest, and payoff timeline.

Q: Fixed vs variable rates in equipment financing—what’s better?
A: Fixed rates provide predictable payments that simplify budgeting. Variable rates can start lower but may rise with market conditions. Choose based on rate outlook, cash‑flow resilience, risk tolerance, and whether you expect to repay early. Model scenarios before committing.

Q: How fast can equipment financing fund?
A: With complete documentation and a vendor quote, approvals may occur within hours to a few days. Funding typically follows invoice verification and UCC filings. Complex or used assets can require inspections, adding time. Avoid guaranteed timelines; speed depends on the deal.

Q: What is an equipment sale‑leaseback?
A: A sale‑leaseback converts owned equipment into cash: you sell the asset to a financier and lease it back for continued use. It can unlock liquidity without new term debt, but adds a lease obligation and potential tax/accounting implications. Consider carefully with your advisor.

====================================================
WORKING CAPITAL & CASH‑FLOW
====================================================

Q: What is a working capital loan?
A: Short‑term financing for everyday expenses (inventory, payroll, vendor bills). It’s designed to smooth cash‑flow gaps, typically with faster approvals and shorter terms than long‑term financing. Costs depend on credit, revenue, and product type (term loan, line of credit, invoice financing, or merchant cash advance).

Q: Working capital loan vs line of credit—which is better for short gaps?
A: A term loan delivers a lump sum with fixed repayments; a line of credit (LOC) is revolving—draw when needed, repay, draw again. For recurring short gaps, LOCs offer flexibility; for one‑time needs, a loan can be simpler. Compare total cost, speed, and how often you’ll use funds.

Q: How does revenue‑based financing work?
A: You receive capital in exchange for a percentage of monthly revenue until a fixed payback cap is met. Payments rise and fall with sales, not a fixed schedule. It’s useful for variable cash flows but the effective APR can be higher—model payback scenarios before choosing.

Q: Merchant cash advance (MCA): what’s the true cost and risk?
A: MCAs fund quickly using a factor rate and daily/weekly remittances from card receipts or ACH. They can strain cash flow and carry high effective costs. Use sparingly, compare alternatives, and read disclosures carefully. Consolidating multiple MCAs may reduce daily debits but review total payback.

Q: Invoice financing vs factoring—what’s the difference?
A: Invoice financing advances funds against your receivables while you retain collections; factoring sells invoices to a factor who collects from customers. Financing preserves customer control; factoring offloads collections. Compare costs, customer experience, eligibility, and the impact on your AR process.

Q: Accounts receivable (AR) financing—what do lenders look for?
A: Lenders assess invoice quality, debtor creditworthiness, aging, concentration risk, and documentation. Advance rates vary by industry and customer strength. Expect AR aging reports, customer lists, and contracts; fees may apply to advances and unused lines. Confirm covenants and reporting.

Q: How does same‑day working capital funding work?
A: Same‑day decisions rely on streamlined underwriting, verified identity, and complete bank data. Funding occurs via wire or ACH after contracts. Expect higher costs for speed and stricter repayment schedules. Eligibility, risk, and documentation quality drive timelines.

Q: Should I consolidate multiple MCAs?
A: Consolidation can reduce daily debits and free cash flow by refinancing stacked MCAs into a single facility. Weigh total payback, fees, and term against improved stability. Avoid adding new MCAs during consolidation; it can deepen the debt cycle.

====================================================
BUSINESS LINE OF CREDIT (LOC)
====================================================

Q: What is a business line of credit?
A: A business LOC is a revolving facility you draw on when needed and repay as you use it. Interest accrues only on the drawn balance. Limits may adjust over time. LOCs fit repeat short‑term needs like inventory or payroll and offer flexibility vs lump‑sum loans.

Q: Secured vs unsecured LOC—what’s the difference?
A: Secured LOCs use collateral (AR, inventory, equipment) to support potentially higher limits or lower pricing. Unsecured LOCs rely on credit strength and revenue, often with smaller limits and higher costs. Choose based on available collateral and the flexibility you need.

Q: How are LOC interest and fees calculated?
A: Costs include interest on drawn balances plus possible origination, maintenance, or draw fees. Variable‑rate LOCs change with market benchmarks. Model usage, repayment timing, and fee schedules to estimate effective cost and avoid surprises.

Q: How do I use a business LOC effectively?
A: Draw only what you need for short‑term expenses and repay quickly to minimize interest. Track billing cycles, avoid persistent high utilization, reserve capacity for emergencies, and request limit increases as revenues grow. Treat your LOC as a flexible bridge, not long‑term debt.

Q: What are typical eligibility requirements for a LOC?
A: Lenders review business and personal credit, revenue consistency, time in business, banking history, and the purpose of funds. Provide bank statements, tax returns, financials, and a clear use‑of‑proceeds. Stronger profiles can qualify for larger limits and lower costs.

Q: Business LOC vs business credit card—key differences?
A: LOCs can offer larger limits, potentially lower costs, and flexible draws; credit cards add rewards but often higher APRs and card network rules. Choose based on spend type (inventory/payroll vs smaller everyday purchases), cost, and repayment discipline.

Q: What covenants might apply to a LOC?
A: Covenants can include financial ratios (e.g., minimum net worth, coverage metrics), reporting requirements, and material‑adverse‑change clauses. Understand obligations before signing, and keep financials current to avoid compliance issues.

Q: How do annual reviews and renewals work?
A: Lenders refresh underwriting annually, may adjust limits or pricing, and confirm financial performance and documentation. Maintain clean books, timely reporting, and stable utilization to support renewals.

Q: Does LOC utilization affect pricing and approval?
A: Yes. Persistently high utilization can signal risk and affect renewals or pricing. Aim to draw for short‑term needs, repay promptly, and keep average utilization moderate.

Q: What is a seasonal LOC?
A: A seasonal LOC aligns limits and repayments to predictable peaks and troughs (e.g., retail, agriculture). It’s structured for short cycles, with draws during busy seasons and rapid pay‑downs afterward.

====================================================
COMMERCIAL REAL ESTATE (CRE), BRIDGE & CONSTRUCTION
====================================================

Q: What is a commercial real estate (CRE) loan?
A: A CRE loan finances income‑producing or owner‑occupied property. Underwriting focuses on property cash flow, borrower strength, and collateral value. Structures may include fixed or floating rates, amortization, and interest‑only periods depending on project risk and business plan.

Q: Owner‑occupied vs investment CRE loans—what’s the difference?
A: Owner‑occupied loans rely on your business operations at the property and may have distinct terms or covenants. Investment loans focus on rental income and metrics like DSCR and occupancy. Choose based on property use, cash‑flow source, and long‑term plans.

Q: What are DSCR and LTV in CRE underwriting?
A: DSCR (Debt Service Coverage Ratio) compares net operating income to debt payments; higher DSCR indicates safer coverage. LTV (Loan‑to‑Value) measures leverage; lower LTV suggests lower risk. Lenders also weigh experience, leases, and market conditions when setting proceeds and pricing.

Q: Fixed vs floating CRE rates—how do I choose?
A: Fixed rates deliver payment certainty; floating rates can offer flexibility and prepayment options but carry market risk. Align the rate type to your hold period, cash‑flow resilience, and exit plan, and consider hedging where appropriate.

Q: What is a bridge loan and when should I use it?
A: A bridge loan provides short‑term interim capital—e.g., acquisition prior to permanent debt or value‑add renovations. It funds quickly, often interest‑only, with higher costs reflecting speed and flexibility. Use when timing or business plan requires a temporary solution.

Q: How do construction loan draws and interest‑only payments work?
A: Funds are released in draws tied to milestones and inspections. During construction, payments are interest‑only on the outstanding balance. After completion, the loan may convert to permanent financing or be refinanced. Maintain documentation and schedules to avoid delays.

Q: What are hard money loans and when do they make sense?
A: Hard money loans are asset‑focused, funding quickly for special situations (e.g., fix‑and‑flip, time‑sensitive acquisitions). They carry higher costs, shorter terms, and strict collateral requirements. Consider them when speed and flexibility outweigh price.

Q: When does it make sense to refinance CRE?
A: Refinance to improve rate, extend term, fund improvements, or release equity. Model prepayment penalties and closing costs, and ensure DSCR and occupancy support the new structure. Align timing with lease rolls and market conditions.

Q: Mezzanine financing vs senior loan—what are the basics?
A: Senior loans sit first in the capital stack, with lower rates and strict covenants. Mezzanine debt sits behind senior, adds leverage at higher cost, and may include equity‑like features. Layer judiciously to balance proceeds and risk.

Q: Recourse vs nonrecourse loans—what’s the difference?
A: Recourse loans allow lenders to pursue guarantors if collateral is insufficient; nonrecourse limits remedies to the collateral, subject to carve‑outs. Nonrecourse may reduce personal liability but can require stronger deals and different pricing. Review covenants carefully.

Q: What are prepayment penalties and yield maintenance in CRE?
A: Prepayment provisions protect lenders’ expected returns; yield maintenance and defeasance can add significant cost to early payoff. Understand formulas, windows, and exceptions before refinancing or selling to avoid surprises.

====================================================
ABOUT MANIFEST FUNDING
====================================================

Manifest Funding provides nationwide, financing solutions across equipment financing, working capital, lines of credit, and CRE/bridge/construction. We focus on clarity, speed, and responsible underwriting so you can choose the structure that fits your plan.

Visit www.manifestfunding.us to get started.

====================================================
IMPORTANT DISCLOSURES
====================================================

• This FAQ is for general information only and does not constitute legal, tax, or financial advice, or an offer of credit. Terms, rates, fees, and eligibility vary by applicant and lender and may change without notice.
• Always review contracts, covenants, and disclosures carefully and consult qualified advisors (e.g., CPA, attorney) regarding tax and legal implications.
• Manifest Funding is a financing provider and may partner with third‑party lenders. Approved amounts, pricing, timing, and product availability depend on credit, revenue, collateral, documentation, and market conditions.