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Frequently Asked Questions (FAQ)

General

General Questions About Hawk Funding Group

Hawk Funding Group is a dedicated capital advisory firm and licensed mortgage broker specializing in real estate investment loans and small business funding across all 50 states. We access 50+ vetted institutional lenders — covering everything from DSCR rental loans, hard money, and bridge loans to SBA 7(a) loans, working capital, and equipment financing. We are not a direct lender — we are a capital partner who finds you the best lender for your specific deal, saving you time, money, and the frustration of applying to lenders one by one. Our advisory fee consistently pays for itself through better loan placement: clients routinely save 2–3x our fee in better pricing and structuring.

Real Estate Loans: DSCR Rental Loans · Fix & Flip · Hard Money · Bridge Loans · Construction Loans · Multifamily Loans (5+ units) · Short-Term Rental Loans · Cash-Out Refinance · 2nd Trust Deed · Luxury Residential ($4M+) · Commercial Real Estate

Business Funding: SBA 7(a) Loans · Working Capital Loans · Business Term Loans · Business Line of Credit · Equipment Financing · Revenue-Based Financing / MCA

Not sure which product is right for you? Call 737.443.9313 and a specialist will tell you exactly what fits your situation — no pressure, no obligation.

Yes. Hawk Funding Group places real estate investment loans and business funding in all 50 states — from California, Texas, and Florida to New York, Illinois, and everywhere in between. Some programs have minor state-specific variations in LTV or rate (a handful of states have regulatory nuances that affect certain hard money programs, for example), and we'll flag any relevant details upfront. View the states we serve →

When you apply directly to one lender, you get one set of products, one credit box, and one price. Hawk Funding Group presents your deal to 50+ lenders simultaneously — each with different rates, industry preferences, and risk appetites. For a DSCR loan, that might mean a 0.50% better rate. For an SBA loan, it might mean a lender that specializes in your industry and approves deals others decline. For a multifamily deal, it might mean the difference between recourse and non-recourse terms. The value scales with deal complexity — for larger or more nuanced transactions, working with an advisor who knows which lender is the best fit for your specific situation is worth many times the advisory fee.

Yes — completely free and with zero obligation. Submit our short inquiry form or call 737.443.9313 and a dedicated loan specialist reviews your scenario and delivers preliminary terms — usually within 4 business hours, always within 1 business day. Our initial review uses a soft credit pull that does not impact your credit score. You will always know your realistic options and costs before signing anything.
DSCR Loans

DSCR Rental Loan Questions

A DSCR loan (Debt Service Coverage Ratio loan) is a rental property mortgage that qualifies based on the property's cash flow rather than the borrower's personal income. No tax returns, W-2s, or income verification are required — the lender evaluates whether the property's monthly rent covers the mortgage payment. DSCR loans are purpose-built for real estate investors: buy-and-hold landlords, self-employed investors, BRRRR practitioners, short-term rental operators, and anyone scaling beyond the 10-property cap that Fannie Mae and Freddie Mac impose. Full DSCR loan details →

Most DSCR programs start at a minimum credit score of 620–640. The best rates and maximum 80% LTV are available to borrowers with 720+. Borrowers in the 660–700 range qualify at slightly higher rates and/or lower LTV. Some programs go as low as 600 with compensating factors (stronger DSCR, lower LTV, or more reserves). Your credit score is one of several factors — a strong DSCR can partially offset a lower score on many programs.

Standard programs: 1.0x minimum (break-even — rent covers the full payment).
Best rates and 80% LTV: 1.20x–1.25x preferred by most lenders.
Below-1.0 programs: Select lenders offer "no-ratio" DSCR for ratios as low as 0.75x in high-appreciation markets, typically requiring 720+ credit score and lower LTV.

If your property is tight on DSCR, tell us the numbers — we'll identify whether a program exists that fits and model the rate difference.

Maximum LTV on DSCR rental loans is 80% for purchases and rate-and-term refinances and 75–80% for cash-out refinances. To achieve 80% LTV, you generally need a DSCR of 1.20x or higher and a credit score of 720+. Borrowers with lower DSCR or credit scores may qualify at 70–75% LTV. For 2–4 unit properties, condos, or high-balance loans, some programs cap LTV at 75%. The specific LTV available on your deal depends on the property, market, and your credit profile — we'll give you an exact number during quoting.

Yes — this is one of DSCR lending's most powerful applications. The BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) uses a DSCR cash-out refinance as its "Refinance" leg. After stabilizing a rehabbed rental (rented, achieving 1.0x+ DSCR), you do a DSCR cash-out refinance at up to 75–80% LTV, pull your original capital back out, and redeploy it into the next acquisition. No limit on how many times you cycle through. Hawk provides both the initial hard money or bridge loan for the acquisition phase and the DSCR loan at stabilization.
Hard Money

Hard Money & Private Money Loan Questions

A hard money loan is a short-term, asset-based real estate loan where approval is based on the property's value and equity — not the borrower's personal income, employment, or credit score. Hard money lenders (also called private money lenders) move far faster than banks and will finance properties conventional lenders won't — distressed homes, properties mid-renovation, raw land, and non-warrantable condos. Banks take 30–60 days; hard money closes in 5–15 days. Banks require full income documentation; hard money requires minimal paperwork. Bank rates are lower; hard money runs 9–13%. For investors where speed and flexibility matter more than rate, hard money is the right tool. See hard money loan details →

Hard money loans are the most credit-flexible real estate product available. Most programs accept scores as low as 550–580. The primary approval factors are deal quality — purchase price vs. ARV, property equity, and a credible exit strategy — not personal credit. A higher credit score (650+) will yield 1–2% lower rates and higher leverage than a 580 score on the same deal. But credit issues alone rarely disqualify an investor from hard money if the underlying deal is sound.

Rates: 9%–13% per year (interest-only during the term)
Term: 6–24 months (12 months most common for fix-and-flip)
Origination points: 1–3% of loan amount
LTV: Up to 70–75% of After-Repair Value (ARV)
Repayment: Interest-only monthly + balloon payment at maturity
Prepayment penalty: Usually none after 3–6 months
Extensions: Usually available for 1–3% fee if the project runs long

Hard money is available for: single-family residences, 2–4 unit multifamily, small apartment buildings (5–20 units), mixed-use properties, commercial real estate, raw and improved land, and non-warrantable condos. Properties in poor condition, with title complications, or requiring significant renovation — the exact deals conventional lenders decline — are ideal hard money candidates. Hard money is not available for owner-occupied primary residences under most programs.

Standard hard money loans close in 7–15 business days. Rush closings in 5–7 days are possible for straightforward single-family deals with clean title and organized documentation. For auction purchases or competitive off-market deals where closing speed is the decisive factor, call us as early in the process as possible and we'll assess the timeline honestly.
Fix & Flip

Fix & Flip Loan Questions

A fix-and-flip loan is a short-term hard money loan structured for investors who buy distressed properties, renovate them, and sell for a profit. It has two components: (1) the acquisition loan — funds to purchase at closing, typically 85–90% of purchase price; and (2) the rehab draw reserve — renovation funds held in escrow and released as work is verified complete. Total loan sizing is based on 70–75% of the property's After-Repair Value (ARV). See fix & flip loan details →

ARV (After-Repair Value) is the projected market value of a property after all planned renovations are complete. Lenders base fix-and-flip loan amounts on ARV — typically 70–75% of ARV as the maximum loan.

The 70% ARV Rule: Maximum Purchase Price = (ARV × 70%) − Estimated Repair Costs.

Example: ARV = $300,000. Repairs = $50,000. Max purchase = ($300,000 × 70%) − $50,000 = $160,000. If you can buy at or below $160,000, the deal has margin to cover carrying costs, closing costs, lender fees, and profit. ARV is established by a licensed appraiser reviewing your scope of work and comparable sales.

Rehab funds are held in escrow at closing and released as work is completed. The process: (1) You submit a draw request with photos of completed work, contractor invoices, and a draw request form. (2) An inspector visits the property or reviews photos to verify completion. (3) Upon approval, funds are typically wired within 1–5 business days. Draw schedules align with construction phases: demolition, framing, rough-in, drywall, finish, and final. This protects both investor and lender by ensuring funds are tied to verified progress.

Not necessarily. First-time flippers may face slightly stricter LTV (65–70% vs. 75%) and may need a licensed general contractor managing the renovation. What carries the most weight: a strong deal with clear profit margin, a detailed scope of work with contractor bids, a realistic ARV projection, and a credible exit strategy. Come prepared with these and first-time experience isn't a disqualifier. We'll set honest expectations before you apply.

Most fix-and-flip programs allow up to 90% of the purchase price + 100% of the verified rehab budget, subject to a total loan cap of 70–75% of ARV. This means on a strong deal with significant forced appreciation, you can often finance the entire project with minimal cash out of pocket. Example: $150,000 purchase + $80,000 in rehab = $230,000 total cost at 90%/100% structure. Maximum loan = lower of $207,000 or 75% of ARV. The ARV cap protects both parties and ensures the deal has adequate profit margin before the lender commits.
Bridge Loans

Bridge Loan Questions

A bridge loan is a short-term real estate loan (6–24 months) used to bridge a financing gap between an immediate capital need and long-term permanent financing. Common uses:

Acquisition bridge: Buy a new property before selling an existing one or before conventional financing is arranged.
Value-add bridge: Acquire a property with high vacancy or below-market rents, renovate and lease up, then refinance into permanent debt once stabilized.
BRRRR bridge: Short-term financing for the buy-and-rehab phase before the DSCR cash-out refinance.
Multifamily bridge: Acquire apartment buildings mid-transition before agency or institutional permanent financing. See bridge loan details →

The terms are often used interchangeably. Hard money typically refers to shorter-term (6–12 months), higher-rate private loans on distressed properties — often fix-and-flip scenarios. Bridge loans tend to be slightly longer (12–24 months), may come from more institutional sources, and are often used for stabilized or near-stabilized properties that need a short-term hold. Bridge loans sometimes carry lower rates for lower-risk properties. In practice, we use whichever term fits the specific deal — we'll recommend the right product for your scenario.

Yes — and this is one of the most common and effective strategies we execute. The bridge loan funds the acquisition and renovation. Once the property is stabilized (rented at market rates, 90%+ occupied for 30–90 days), we transition it to a permanent DSCR loan (1–4 units) or permanent multifamily loan (5+ units). This bridge-to-permanent approach is the core of BRRRR and the standard capital playbook for value-add real estate investors who want to minimize equity stuck in deals.

Bridge loans are typically available at 75–90% of total project cost (purchase + renovation), subject to a maximum of 65–80% of as-is or as-complete value depending on the lender and property profile. Stabilized properties in strong markets with experienced sponsors can access the higher end of the range. The borrower's exit strategy — refinance into specific permanent product vs. sale — influences how aggressively the lender will underwrite the bridge position.
Construction Loans

Construction Loan Questions

A construction loan is short-term financing for ground-up building projects — residential homes, multifamily developments, or commercial buildings. Unlike a mortgage, a construction loan releases funds in draws as construction milestones are completed, not in a single lump sum at closing. The loan is interest-only during the build period (12–24 months), so monthly cost is based only on drawn funds — not the total loan commitment. Upon completion, the loan either converts to permanent financing or is paid off via a new long-term mortgage. See construction loan details →

Loan-to-Cost (LTC) = Construction Loan Amount ÷ Total Project Cost (land + hard costs + soft costs). It's the primary leverage metric for construction financing.

Example: Total project cost = $800,000 (land $200K + construction $600K). LTC of 85% = loan of $680,000. Hawk's construction programs offer up to 90% LTC for residential ground-up and up to 85% LTC for multifamily. A second cap applies: the total loan typically cannot exceed 70–75% of the completed property's as-complete appraised value.

A construction-to-permanent loan combines the construction draw facility and the long-term permanent mortgage into one loan with one closing. During construction, it behaves as a draw facility — interest-only, funded in phases. Upon completion and stabilization, the loan converts to the permanent phase: fixed rate, amortizing, appropriate to the property type (30-year fixed for single-family; up to 40-year for multifamily). The key benefit: you lock in your permanent financing terms at construction loan origination — before interest rates or lending conditions potentially change during the build period.

Hawk Funding Group offers construction loans for investors covering: single-family spec home construction, new home construction for owner-occupants, build-to-rent (BTR) single-family communities, multifamily ground-up development (5–200+ units), and luxury custom home construction ($4M+). New construction loan programs are available for both experienced builders and first-time developers with the right team. Loan sizes range from $200,000 to $50M+. Documentation requirements include construction plans, contractor license and insurance, detailed budget, project timeline, and evidence of builder experience.
Multifamily Loans

Multifamily & Apartment Building Loan Questions

A multifamily loan is a commercial real estate loan for apartment buildings and multi-unit residential properties with 5 or more units. Properties with 1–4 units use residential investment programs (DSCR loans or conventional investment loans). At 5+ units, the property enters commercial multifamily territory — underwritten based on NOI, DSCR, and cap rate rather than the borrower's personal income. Hawk's multifamily programs offer up to 85% LTV, 40-year amortization, non-recourse debt, and no personal income documentation. Loan sizes from $500,000 to $50M+. See multifamily loan details →

NOI Formula: Gross Rental Income − Vacancy Loss − Operating Expenses = NOI

Operating expenses: property taxes, insurance, management fees, maintenance, utilities (if owner-paid), and reserves. NOI does not include mortgage payments. Lenders use NOI to calculate: (1) DSCR = Annual NOI ÷ Annual Debt Service (minimum 1.0x required, 1.25x preferred by most banks). (2) Cap Rate = Annual NOI ÷ Property Value. Both metrics flow from NOI — which is why accurate expense underwriting is the most important step in any multifamily loan analysis.

Recourse: The lender can pursue the borrower's personal assets (bank accounts, other real estate, investments) if the property defaults and the foreclosure sale doesn't cover the balance. Most bank and community lender multifamily loans are recourse.
Non-recourse: The lender's recovery is limited to the collateral property only. The borrower owes nothing if the property is foreclosed and sold for less than the balance. Bad boy carve-outs convert to personal liability only for fraud, misrepresentation, misappropriation of funds, or willful misconduct — not simple economic default.
Non-recourse is the preferred structure for sophisticated investors holding properties in LLCs and is available through Hawk's institutional lending network.

40-year amortization spreads the loan's principal repayment over 40 years instead of 25 or 30 — resulting in a lower monthly payment and more cash flow per property.

Cash flow impact example: $3M multifamily loan at 7% interest:
— 30-year amortization: $19,960/month
— 40-year amortization: $17,934/month
— Monthly difference: $2,026/month ($24,312/year) per property

For a portfolio of 10 properties, this can mean $243,120/year in additional cash flow. Lower debt service also allows more properties to qualify at 1.0x DSCR. Hawk's multifamily programs offer 40-year fixed amortization — the longest available in the private lending market.
Luxury Residential

Luxury Residential Financing Questions

Hawk's luxury residential financing starts at $4M with no maximum and uses asset-based private money underwriting — no tax returns, no income verification, no DTI analysis. It closes in 5–10 business days vs. the 30–60 days required by retail jumbo lenders. It accommodates LLC and trust vesting that conventional banks can't support. Interest-only payment options are available. It's the right tool for high-net-worth buyers and investors whose balance sheet complexity, transaction speed requirements, or entity structure put them outside what a bank can offer. See luxury program details →

Asset depletion income is a qualification method where the lender divides the borrower's total liquid assets by the remaining loan term to impute a monthly qualifying income — without any W-2 or tax return.

Formula: Total Liquid Assets ÷ Loan Term (months) = Monthly Qualifying Income.

Example: $8M in liquid assets ÷ 360 months (30-year loan) = $22,222/month in qualifying income — zero employment documentation required. Eligible assets include bank accounts, brokerage accounts, money market funds, and a portion of retirement accounts. This is the standard qualification method for retirees, business owners, and investors whose personal tax returns show low ordinary income due to depreciation, deductions, or complex pass-through structures.

Yes — and this is one of the most important advantages of private money over conventional jumbo financing. Hawk's luxury lenders accommodate LLC, LP, family trust, irrevocable trust, and other entity structures without restriction. Conventional jumbo lenders almost universally require personal ownership for primary residences. With private money, the lender underwrites the asset and the borrower's total financial position — the entity is transparent to approval. High-net-worth buyers can acquire trophy assets within protective legal structures for liability, estate planning, and privacy without compromising loan terms.

Yes. Hawk's private capital network includes lenders that finance luxury U.S. residential properties for foreign nationals — including buyers with no U.S. credit history, no Social Security number, and no domestic income or employment. Qualification is entirely asset-based: valid passport, proof of liquid assets sufficient to support the transaction, property details, and optional ITIN. Foreign national luxury loans are available at 65–70% LTV with no income verification — one of the only practical financing paths for international buyers from the Middle East, Europe, Latin America, and Asia acquiring U.S. real estate.
Short-Term Rentals

Airbnb & Short-Term Rental Loan Questions

Yes. Dedicated short-term rental loan programs use AirDNA market data, 12-month actual STR payout history, or a specialist STR appraisal to establish qualifying income — rather than requiring a traditional annual lease. This is essential because nightly Airbnb and VRBO rates in vacation markets generate significantly more income than a long-term lease would, and the qualifying income should reflect that. STR loans are available for purchase and refinance, close in 14–21 days, and require no personal income verification. See full STR loan details →

AirDNA is the leading data platform for short-term rental market analytics. It tracks historical occupancy rates, average daily rates, and projected annual revenue for STR properties in every market across the U.S. When a property has no STR income history (new listing or under contract), lenders use AirDNA's projected annual gross income for that specific property and market as the qualifying rent — essentially underwriting the property's projected cash flow rather than requiring a track record. This makes it possible for investors to finance a brand-new Airbnb investment before it has a single review.

Yes — and this is critical to understand before buying. Many cities and municipalities restrict short-term rentals to owner-occupied properties, require special operating permits, or cap the number of rental nights per year. Some HOA governing documents also prohibit STR activity. Lenders underwriting STR loans assess local regulatory risk — properties in heavily regulated markets may be qualified conservatively (as long-term rentals) since future STR operation isn't guaranteed. We'll identify any known STR restrictions for your target market during quoting and structure the loan qualification appropriately.
Business Line of Credit

Business Line of Credit Questions

A business line of credit is a revolving credit facility approved at a maximum limit (e.g., $150,000) from which your business draws funds as needed. You only pay interest on the amount drawn — not the full limit. As draws are repaid, that credit replenishes and becomes available again. Multiple draws can be outstanding simultaneously up to the credit limit. Each draw repays over 6–24 months. You can draw for payroll, inventory, cash flow gaps, or any business purpose. Credits from $10,000 to $500,000+. Approved in minutes for qualified businesses. See LOC details →

A line of credit is revolving — draw what you need, repay it, draw again. You only pay interest on outstanding balances. A term loan is a one-time lump sum repaid on a fixed schedule. Once used, you must reapply. Lines of credit are more cost-efficient for recurring or variable needs — you never pay interest on capital you're not using. Term loans are better for single defined investments with a known cost. If your capital needs are ongoing and unpredictable, a line of credit is almost always the smarter choice.

Most business line of credit programs require a minimum personal credit score of 600–625. For the highest limits and best rates, 680+ is preferred. Monthly business revenue needs to be typically $15,000+. Fintech lenders like Bluevine can approve qualified businesses in minutes with limits up to $250,000. Traditional bank business credit lines (which offer higher limits for strong credits) take 1–4 weeks. We present options across both channels so you can choose the right balance of speed and cost.
SBA 7(a) Loans

SBA Loan Questions

The SBA 7(a) loan is the most popular government-backed small business loan program in America. The SBA guarantees up to 85% of the loan, allowing lenders to offer dramatically lower rates and longer terms than conventional business loans. Key benefits: up to $5 million; working capital terms up to 10 years; real estate terms up to 25 years; rates tied to WSJ Prime Rate with SBA-capped spreads; as little as 10% down for business acquisitions (vs. 20–30% for conventional). Uses: working capital, equipment, commercial real estate, business acquisition, and debt refinancing. See SBA loan details →

Core SBA 7(a) requirements: U.S.-based for-profit business operating in an eligible industry · Meet SBA size standards (typically under 500 employees or under $7.5M annual revenue) · Minimum 650 personal credit score (680+ for best terms) · 2+ years in business · Demonstrated cash flow to repay · No outstanding federal delinquencies (taxes, prior SBA loans) · Collateral required when available (lack of collateral alone does not disqualify). Most for-profit industries qualify — exceptions include passive real estate investment businesses, gambling, and certain financial services.

Yes — business acquisition is one of the highest-impact uses of the SBA 7(a) program. The SBA allows financing up to 90% of a business purchase price in many cases, with the seller carrying a standby note for a portion of the remainder. Compared to the 20–30% conventional acquisition down payment, this dramatically reduces your upfront capital requirement. Hawk Funding Group has relationships with SBA lenders who specialize in acquisitions across restaurants, franchises, healthcare practices, professional service firms, and manufacturing businesses.

Standard SBA 7(a) loans close in 30–60 days from complete application submission. SBA Express loans (up to $500K) have a 36-hour SBA response requirement and often close in 2–3 weeks. The most common cause of delays is an incomplete or improperly packaged application. Hawk Funding Group's SBA team ensures your file is complete and optimized before it reaches a lender's desk — which is the single biggest driver of faster closings in the SBA process.
Working Capital

Working Capital Loan Questions

A working capital loan is a short-term business loan used to fund daily operations — payroll, inventory, cash flow gaps, rent, emergency expenses — rather than long-term investments. Working capital = Current Assets − Current Liabilities. When that number goes negative, a working capital loan bridges the gap. Loans from $5,000 to $250,000. Funded in 24 hours. No collateral. Approved based on monthly business revenue (typically $10,000+/month). Terms of 3–18 months with auto-ACH repayment. See working capital loan details →

Most lenders in our network fund working capital loans in 24 to 48 hours after approval. Application: 3 months of business bank statements + basic business info + signed application. No tax returns, no collateral, no lengthy analysis. If you need funds by Friday, submit by Wednesday — you'll almost certainly have the money in your account by end of day Thursday.

Working capital lenders approve borrowers with scores as low as 550–580 when monthly revenue is strong and consistent ($10,000+/month). Revenue is the primary qualifier — not credit score. A business generating $60,000/month with a 570 score will often get better terms than a business with a 680 score generating $7,000/month. Higher credit scores unlock lower rates, longer terms, and higher amounts.

Working capital loan: Short-term (3–18 months), funded in 24 hours, minimal documentation, for immediate operational cash needs. Higher effective cost but maximum speed and accessibility.
Business term loan: Longer-term (1–5 years), funded in 3–7 days, more documentation required, for larger defined investments (opening a location, consolidating debt, major equipment). Lower rates but requires more time and paperwork.
Choose based on urgency and the nature of what you're funding. We'll tell you which is right for your situation. See business term loan details →
Equipment Financing

Equipment Financing Questions

Equipment financing funds the purchase of business machinery, vehicles, or technology — with the equipment itself serving as collateral. This is what makes equipment financing more accessible than unsecured business loans: the lender has a tangible, revenue-generating asset securing the loan, which significantly reduces their risk. Most equipment loans finance 80–100% of the purchase price with terms of 2–7 years that align with the equipment's useful life. You own the equipment outright at the end of the term. Startups and newer businesses often qualify because the collateral story is so clear. See equipment financing details →

If your business uses it to generate revenue, it can almost certainly be financed: Commercial vehicles and fleets (trucks, vans, refrigerated vehicles) · Construction equipment (excavators, cranes, forklifts) · Manufacturing machinery (CNC machines, presses, conveyors) · Restaurant equipment (commercial ovens, coolers, fryers, POS systems) · Medical and dental equipment (MRI machines, X-ray systems, dental chairs) · Technology and IT (servers, workstations, networking). New and used equipment both qualify — new typically gets better rates and terms than used.

Yes — equipment financing is one of the most startup-accessible business loan products because the equipment serves as collateral. Some lenders will finance equipment for businesses under 1 year old, even brand-new businesses, when the equipment has strong resale value and the owner has a credit score of 600+. A 10–20% down payment may be required for very new businesses. This is often the recommended first financing product for business owners who need revenue-generating assets but can't yet qualify for unsecured business loans based on time in business or revenue history.

Equipment financing rates in 2026 typically range from 5% to 18% APR depending on credit score, time in business, equipment type, and whether the equipment is new or used. Well-qualified borrowers — 680+ credit, 2+ years in business, financing new equipment with strong resale value — often access rates in the 5–9% APR range. Newer businesses or lower scores fall in the 10–18% range. Rates are consistently lower than unsecured working capital loans because the collateral significantly reduces lender risk.
Revenue-Based Financing

Merchant Cash Advance & Revenue-Based Financing Questions

A merchant cash advance is a purchase of future business receivables — not technically a loan. A funding company advances a lump sum in exchange for a fixed dollar amount of your future sales. Repayment is automatic: a holdback percentage (5–20%) is withheld from daily credit card processing or bank deposits until the total repayment amount is recovered. MCAs fund in 24–48 hours, require no collateral, and approve borrowers with credit scores as low as 500+. The tradeoff: effective costs are significantly higher than traditional loans. Best for high-volume businesses needing fast capital with flexible repayment that scales with revenue. See MCA details →

Factor Rate Formula: Total Repayment = Advance Amount × Factor Rate

Example: $60,000 advance × 1.35 factor rate = $81,000 total repayment. You always owe $81,000 — factor rates don't decrease with early repayment the way interest rates do. Factor rates typically range from 1.15 (low-risk) to 1.50+ (higher risk).

To truly compare an MCA to a term loan, ask for the effective APR — which on short repayment timelines can translate to 60–150%+ annual rates. We always show clients a side-by-side cost comparison before recommending any product. Transparency is non-negotiable at Hawk.

MCA makes sense when: You need capital in 24–48 hours. Your credit is too low for conventional products. You're in a high-revenue, cash-flow-volatile industry (restaurant, retail, medical practice) and want repayment that naturally slows during slow periods. The ROI on what you're funding clearly exceeds the cost.

MCA does not make sense when: You have 30+ days and can qualify for an SBA loan or term loan — both dramatically cheaper. You're considering stacking multiple MCAs (creates a repayment spiral). You're using it for long-term investments where compounding cost erodes returns.

Hawk Funding Group will always show you the full picture — MCA vs. working capital loan vs. term loan — and give an honest recommendation based on your actual situation.

Revenue-based financing and merchant cash advances work best for: restaurants and food service (high daily transaction volume, seasonal fluctuations); retail businesses (brick-and-mortar and e-commerce with strong daily sales velocity); salons and personal service; medical and dental practices with consistent daily billing; seasonal businesses that need capital before peak season; and businesses with credit scores below 600 who can't access conventional products. The flexible repayment — less on slow days, more on busy days — is a genuine operational advantage for businesses with predictable high volume but irregular cash patterns.
Process & Timeline

Process, Timeline & Documentation Questions

Step 1 — Inquiry (3 minutes): Submit our short online form or call 737.443.9313 with your scenario.

Step 2 — Term Sheet (within 24 hours): A dedicated specialist reviews your deal and delivers preliminary loan terms. Usually within 4 hours during business days.

Step 3 — Application & Documents: You provide the documentation specific to your loan type. Your specialist provides a deal-specific checklist — no guessing.

Step 4 — Underwriting & Third-Party Reports: We order required appraisals, title searches, or inspections while underwriting your file in parallel.

Step 5 — Approval, Close & Fund: We issue a Commitment Letter, coordinate closing with your title company, and wire funds on closing day.

Working capital / MCA: 24–48 hours
Equipment financing: 2–5 business days
Business term loan / line of credit: 3–7 business days
Luxury residential: 5–10 business days
Hard money / bridge loans: 7–15 business days
Fix-and-flip loans: 7–15 business days
DSCR rental loans: 14–21 business days
Multifamily loans: 21–45 business days
Construction loans: 30–60 days
SBA 7(a) loans: 30–60 days (Express: 2–3 weeks)
Commercial real estate: 30–60 days

Rush closings are available for hard money, bridge, and fix-and-flip loans. Call us early — the sooner we start, the better the chance of meeting a tight timeline.

All investment property programs: Government-issued ID · Purchase contract or property address · Entity documents (if LLC/Corp) · Recent bank statements (2–3 months)

DSCR loans add: Signed lease or market rent appraisal (1007 schedule). No tax returns required.

Hard money / bridge / fix-and-flip add: Property photos · Scope of work with contractor bids (for rehab loans)

Multifamily adds: Current rent roll · 12 months operating statements · Property photos. No personal tax returns required.

Construction adds: Complete construction plans · Contractor license and insurance · Full project budget and timeline

Your specialist provides a deal-specific document checklist immediately after your inquiry — no guessing what you need.

No. Our initial review process uses a soft credit pull — it does not appear on your credit report and has no impact on your score. A hard credit inquiry only occurs when you formally proceed with a specific lender. We coordinate this carefully to minimize the number of hard inquiries across multiple lenders, and we'll always notify you before any hard pull is made. You'll never be surprised by an unwanted inquiry.

Depends on the specifics — here's an honest breakdown:

Tax liens: Active federal tax liens complicate real estate title and are challenging for most programs. SBA loans require resolution. Hard money and some DSCR programs can work around older or state tax liens in certain cases.

Judgments: Unsatisfied judgments creating liens against real estate need resolution before closing. Unsecured judgments not attached to property title are less impactful.

Bankruptcy: Discharged Chapter 7 (2+ years ago) is acceptable for many hard money and DSCR programs. Active or recent bankruptcies severely limit options. SBA requires 3+ years post-discharge.

Tell us your full situation — we'll give you a frank, no-spin assessment of what's possible and at what cost. We've seen every credit scenario and know which lenders will and won't look past specific credit events.

You can check your loan status at any time by contacting your dedicated Hawk Funding Group specialist directly by phone or email. We proactively communicate at every key milestone: application received · underwriting in progress · appraisal ordered · conditional approval · clear to close. If there's ever a delay — third-party report slowdown, lender condition — you hear from us before the deadline becomes a problem. For a same-day status update at any point, call us directly at 737.443.9313.