Questions, answered.
The questions borrowers ask most often, grouped by product. If yours isn't covered, reach out to underwriting@summitprivatecredit.com.
About Summit & the process
Is Summit Private Credit a direct lender or a broker?
Summit is an independent capital desk. We place transactions with a vetted network of direct lenders and institutional capital partners, and on select transactions we lend directly. Every file is shopped so structure and pricing are negotiated, not taken.
Does applying affect my credit score?
No. Initial inquiry uses a soft credit check that does not impact your score. A hard pull only happens after you accept an offer from a chosen lender and proceed to closing.
What does it cost to apply?
Nothing. There are no fees to apply, receive offers, or walk away. Summit is compensated by the lender at funding, and broker compensation is disclosed in writing on every term sheet.
How fast can I receive funding?
Working capital products (MCA, line of credit) typically fund in 24–72 hours. Term loans and equipment financing take 3–10 business days. Commercial real estate and bridge financing close in 2–4 weeks depending on appraisal and title.
What size transactions do you handle?
Summit places transactions from $25,000 working capital advances up to $25M+ commercial real estate and direct-lending facilities across nine product lines.
What documents will I need?
For working capital: last 3–6 months of business bank statements, a one-page application, and a valid government-issued ID. Larger or asset-backed transactions also require tax returns, financial statements, and asset documentation. We request only what's required to advance the strongest structure.
Can I qualify with bad credit?
Yes for revenue-based products. MCA, factoring, and asset-based lending underwrite primarily on revenue, deposits, and collateral rather than personal credit. Owners with credit as low as 500 are routinely approved.
Do you fund startups?
Most of our products require 6+ months in business and consistent revenue. Equipment financing and select asset-based facilities can accommodate earlier-stage operators with strong collateral or sponsor backing.
What states do you fund in?
All 50 U.S. states plus D.C. Some product lines have state-specific licensing requirements that limit availability; we disclose any geographic restriction up front.
Will Summit sell or share my information?
No. Your information is shared only with the specific lender partners required to advance the file you submit. We do not sell leads, run lead-gen marketplaces, or syndicate your data to unrelated third parties. See our privacy policy and security pages for details.
Merchant Cash Advance
Product page →How fast can I receive an MCA?
Most approvals happen the same business day. Funding is typically wired within 24 to 72 hours after acceptance of terms, depending on bank verification.
Will an MCA hurt my credit score?
Initial review uses a soft pull and does not affect your credit. A hard inquiry may be run by the chosen funder only after you select an offer and proceed to closing.
What is a factor rate?
A factor rate (e.g. 1.25) is the total repayment multiplier on the advance amount. A $100,000 advance at 1.25 repays $125,000 in total over the term.
Can I qualify with bad credit?
Yes. MCA underwriting focuses on revenue consistency and bank deposit health rather than credit score. Owners with credit as low as 500 are routinely approved.
Can I have more than one MCA at a time?
Yes — stacking is possible. Summit reviews existing advances and structures consolidations or top-ups so total holdback remains sustainable.
Business Line of Credit
Product page →How is a line of credit different from a term loan?
A term loan funds a lump sum that you repay over a fixed schedule. A line of credit lets you draw, repay, and re-draw against a limit — paying interest only on outstanding balances.
Do I need collateral?
Most lines require a UCC-1 blanket lien on business assets but do not require pledging specific collateral or real estate.
What rates can I expect?
Rates depend on credit, revenue, and lender. Strong profiles typically see 10 – 18% APR. Higher-risk profiles range 20 – 30% APR.
Can I prepay without penalty?
Most lines of credit have no prepayment penalty. You can pay down the balance at any time and re-draw later.
How long does the application take?
Most applications are decisioned within 24 – 48 hours. Funding typically occurs within 3 – 7 business days of approval.
Equipment Financing
Product page →Can I finance used equipment?
Yes. Most lenders finance both new and used equipment, though age and condition affect rate and term. Equipment older than 10 years may require additional underwriting.
Is a down payment required?
Many programs offer 100% financing including soft costs (delivery, installation, tax). Down payments of 10 – 20% may be required for newer businesses or harder-to-collateralize equipment.
What is a sale-leaseback?
A sale-leaseback lets you sell owned equipment to a lender for cash, then lease it back over a fixed term — unlocking equity in existing assets without disrupting operations.
Can start-ups qualify?
Yes. Several lenders have dedicated start-up equipment programs, typically requiring industry experience, a strong personal credit profile, and a larger down payment.
What's the difference between a loan and a lease?
A loan transfers ownership immediately and ends with full title to you. A lease retains ownership with the lessor; you may have a $1 buyout, fair-market-value buyout, or simply return the asset at end of term.
Business Term Loans
Product page →Are payments fixed?
Most term loans carry a fixed interest rate with equal monthly principal and interest payments, giving you predictable cash-flow planning.
Can I use a term loan to refinance an MCA?
Yes. Refinancing short-term, high-cost advances into a longer-amortizing term loan is one of the most common uses. Summit specializes in this restructuring.
Will the lender require collateral?
Bank and SBA term loans often require collateral (real estate, equipment, or UCC-1 blanket lien). Many private credit term loans are cash-flow based with no specific collateral required.
What's the longest term available?
Standard non-bank term loans go to 5 years. SBA 7(a) loans can amortize up to 10 years (25 years if real estate is included). Bank loans typically range 3 – 7 years.
Is there a personal guarantee?
Yes — virtually all small and middle-market term loans require a personal guarantee from owners with 20% or greater equity.
Invoice Financing & Factoring
Product page →What's the difference between factoring and invoice financing?
In factoring, the lender takes assignment of invoices and collects directly from your customers. In invoice financing (also called confidential factoring), you continue to collect and the lender stays behind the scenes.
What is recourse vs non-recourse?
Recourse: you remain liable if a customer doesn't pay. Non-recourse: the lender absorbs credit losses on customer non-payment. Non-recourse pricing is higher and limited to credit-approved customers.
Will my customers know I'm factoring?
In standard factoring, yes — invoices are payable to the factor. Confidential or non-notification programs are available for established companies at higher cost.
Can I factor a single invoice?
Yes. Spot factoring lets you submit individual invoices on a transactional basis without a long-term commitment.
What industries are hardest to factor?
Construction (lien risk), medical (insurance complexity), and consumer (B2C) are more difficult. Summit's network includes specialty factors for each of these verticals.
Commercial Real Estate Loans
Product page →What property types can you finance?
Multifamily, mixed-use, retail, office, industrial, warehouse, hospitality, self-storage, mobile home parks, and select special-use assets. We do not finance raw land for individuals.
Do you offer non-recourse loans?
Yes. Agency multifamily, CMBS conduit, life company, and most debt fund executions are non-recourse with standard bad-boy carve-outs.
How is DSCR calculated?
Debt Service Coverage Ratio is net operating income divided by annual debt service. Most lenders require 1.20× minimum for multifamily and 1.25 – 1.35× for other commercial assets.
What's the maximum LTV?
Up to 80% for multifamily (agency), 75% for stabilized commercial, and 65 – 70% for transitional or value-add assets. Higher proceeds available with mezzanine or preferred equity.
How long does CRE financing take to close?
Agency multifamily: 45 – 75 days. CMBS: 60 – 90 days. Bank and debt fund: 30 – 60 days. Bridge: as fast as 14 – 30 days.
Bridge Financing
Product page →How fast can a bridge loan close?
Term sheet within 3 – 7 days of complete file. Closing typically 14 – 30 days thereafter, depending on third-party reports (appraisal, environmental, title).
Is bridge financing always non-recourse?
Most institutional bridge loans are non-recourse with standard carve-outs. Some smaller-balance or higher-leverage bridges may require partial or full recourse.
What rates should I expect?
Pricing reflects asset risk and leverage. Stabilized bridge: SOFR + 350 – 500 bps. Value-add: SOFR + 500 – 700 bps. Special situations: SOFR + 700 – 1000+ bps.
Can bridge loans fund construction or rehab?
Yes — many bridge programs include holdbacks for construction draws and capex. Pure ground-up construction is funded by specialized construction lenders.
What is the typical exit?
Refinance into agency or CMBS permanent debt, sale of the asset, or recapitalization once stabilization milestones are achieved.
Asset-Based Lending
Product page →How does the borrowing base work?
Eligible receivables (typically < 90 days, non-concentrated, U.S. commercial) and inventory (typically finished goods at cost) are advanced against monthly. The borrowing base is recalculated each reporting period.
What rates should I expect?
Bank ABL: SOFR + 250 – 450 bps. Non-bank ABL: SOFR + 450 – 700 bps. Pricing depends on credit, size, and reporting capability.
Are there covenants?
ABL typically has fewer maintenance covenants than cash-flow loans — often a single fixed-charge coverage springing covenant tied to availability.
Can ABL fund acquisitions?
Yes. ABL is widely used for acquisition financing, refinance of bank debt, and dividend recapitalizations — often paired with a stretch term tranche or mezzanine layer.
What's the difference between ABL and factoring?
Factoring purchases individual invoices and notifies customers. ABL is a revolving line against your entire borrowing base with you retaining collection and customer relationships.
Direct Lending
Product page →What is unitranche debt?
Unitranche combines senior and subordinated debt into a single facility at a blended rate — simplifying execution and intercreditor mechanics relative to a senior + mezzanine stack.
Do you work with non-sponsored borrowers?
Yes. A meaningful portion of our direct lending placements are for family-owned and founder-led companies without a private equity sponsor.
What leverage is achievable?
Senior secured: 3.0 – 4.5× EBITDA. Unitranche: 4.5 – 6.0× EBITDA. With second-lien or holdco notes layered on, total leverage can reach 6.5 – 7.5× for the right credit.
How long does a direct lending process take?
Indicative term sheet in 1 – 2 weeks of complete file. Confirmatory diligence and documentation in 4 – 8 weeks thereafter, depending on transaction complexity.
Is direct lending more expensive than bank debt?
Yes — direct lending typically prices 200 – 400 bps wider than bank syndicated debt, in exchange for higher leverage, lighter covenants, certainty of close, and a single lender relationship.
Talk to underwriting.
A senior reviewer will respond same business day with a direct answer — no sales loop, no gatekeeping.