Ascentium Capital Review

Lender Overview

Types of loans
Working capital loans for small businesses; equipment financing and leasing; franchise financing; partner financing for merchants to offer financing to their own customers
Loan amount
$150,000 maximum; $5,000 minimum
Interest rates
1.11 to 1.36
Origination fees
$195 document fee; No origination or application fee
Loan term
Fixed rate, self-amortizing loans with terms of between 3 months and 18 months
Funding time
Apply in minutes; funding in as little as 24 hours after approval
Customer services
Contact by phone or email, 8:00 AM to 5:00 PM, Monday through Friday
Pros
  • Fast approval and funding - loan approval in minutes, and funding within 24 hours of approval.
  • Most industries accepted as long as they meet Ascentium Capital's credit policy guidelines.
  • Auto sales and non-profit organizations accepted (not accepted with most small business lenders).
  • True business loans, and not a cash advance on future sales.
  • Specific financing programs available for franchise-based businesses.
  • Easy qualification - qualify on as little as three month's recent bank statements.
  • No origination fee, in an industry known for origination fees.
Cons
  • High credit score requirements for personal guarantors, at a minimum of 675.
  • Relatively low maximum loan amount, at $150,000.
  • Limited ability to refinance competitor loans, since there is a minimum 50% merchant net requirement.
  • Merchant will be declined for a loan renewal if they layer a competitor loan on top of Ascentium Capital loan.
  • No interest forgiveness on renewals.

About Ascentium Capital

Ascentium Capital LLLC is a leading provider of equipment and technology financing solutions. They offer financing and leasing for manufacturers, distributors, resellers, and franchise organizations. They also provide direct financing options for small, midsized and Fortune 500 companies.

Ascentium Capital provides Small Business & Working Capital loans and Equipment Financing & Leasing. They also offer Partner Financing program, which enables businesses to offer financing and leasing plans to their own customers, as well as franchise financing options.

The company was founded in 2011, and is based in Kingwood, Texas.

Ascentium Capital Drill Down

Ascentium Capital Blog. Ascentium Capital provides this resource to offer merchants business education. It includes dozens of articles on a multitude of topics important to small businesses. Some of the recent informational reports provided include:

  • Why Does My Small Business Need an Environmental Sustainability Policy?
  • The 3 Stages of a Press Release Distribution
  • How Much Could Your Business Save with Section 179 Tax Incentives?
  • Keep Your Information Safe in Times of Security Breaches
  • Best Practices for Effective Tradeshows
  • 8 Video Tools to Help Animate Your Marketing Efforts

Notice that many of the blog posts have an orientation toward marketing and growing your business. This is an area where a lot of small businesses could benefit from additional coaching. Ascentium Capital provides it.

Company Reputation. Ascentium Capital has the following ratings from third-party business rating services:

Licenses and Accreditations. The company is based in Texas, however it is not licensed through either the State of Texas Secretary of State or the Texas Banking Commission.

Ascentium Capital Short-term Business & Working Capital Loans

Small Business & Working Capital Loans are offered under the following terms:

Loan purpose. Loan must be used for a specific business purpose. Funds can be used for purchasing inventory, paying taxes, bridging payroll, business expansion, consumable supplies, technology upgrades, or anything else your business needs. Proceeds can also be used to pay off competitor loan balances, but merchant must net at least 50% of the loan proceeds.

Industries funded. Almost all industries will be considered as long as they meet Ascentium Capital credit requirements. Includes auto sales and nonprofit organizations, which are restricted almost everywhere else. Specific target industries include hospitality, healthcare and retail. Others include commercial and industrial, commercial vehicles, franchises, technology and software, and gas stations, convenience stores and carwashes.

Cautionary Industries. None. Ascentium Capital will consider any industry that meets their credit policy guidelines.

Interest rates. 1.11 to 1.36

Origination and document fees. $195 document fee, which is used to process the application, as well as cover expenses related to credit reports and UCC filings. Check required to be made to "Ascentium Capital LLC" from a business checking account, and is payable upon approval. There is no application fee or origination fee.

Loan term. 3 to 18 months.

Repayment frequency. Daily fixed payments. Ascentium Capital accepts credit cards for payment, including American Express, Visa and MasterCard.

No stacking. Merchant will be declined for a loan renewal if they layer a competitor loan on top of a Ascentium Capital loan.

Loan Renewal Policy. Ascentium Capital will consider a renewal as soon as at least 30% of the original loan balance has been paid.

Interest forgiveness. Not available. Early termination on your written request. The payoff amount is calculated using the present value rate to discount the future payments due under the agreement. There is no prepayment penalty or fee.

Exceptions:

  • Weekly repayments will be considered for companies with consistent daily ledgers.
  • Will consider 50% ownership on a case-by-case basis, for files with strong commercial credit.

Small Business & Working Capital Loan Borrower Requirements

To qualify for a working capital loan through Ascentium Capital you must meet the following requirements:

  • Be in business for at least two years
  • Have at least 100% ownership in the business
  • Maximum ending negative days - no more than three in the past three months (merchant cannot be negative at the end of a business day more than 3 times in the past 3 months)
  • A minimum personal credit score of 675
  • Loan amounts are determined by 3.5 times the merchant's average daily ledger (or average daily balance; for example, if a company averages $20k in their bank account, Ascentium Capital will likely approve them for a $70,000 loan - $20,000 X 3.5)

Ascentium Capital Loan Application Process

The Ascentium Capital loan application can be completed and approved in a matter of minutes. Funding can occur in as little as 24 hours after approval. The entire application process is completed online. No application fee is required, and the documentation fee will be charged only if your loan application is approved and accepted by you.

In order to make application, you need to provide the following documentation:

  • Loan application
  • Specific use of funds explanation
  • Personal information of majority owner(s) (personal credit will be checked)
  • Most recent three months of bank statements

Special situations to be aware of in the application process include:

  • Personal guarantors are required on closely held companies in order to qualify for credit.
  • Bank and financing references will be required.
  • Both business and personal credit bureau ratings are used in the decisioning process.

Who Ascentium Capital Small Business & Working Capital Loans Work Best For

We've identified six types of merchants for whom Ascentium Capital can be a preferred loan source:

  1. Merchants who need money in a hurry. The loan application process can be completed in a matter of minutes, and approved shortly after. Funds can be transferred to your account in as little as 24 hours following approval. If a major business expense or acquisition opportunity comes up suddenly, you'll have the capital you need to go forward.
  2. Merchants looking for easy qualification. Unlike the commercial lending process with traditional banks, the Ascentium Capital process is not paperwork intensive. You can be qualified for a loan with as little as three of your most recent business bank statements. There's no need to provide reams of documents, such as financial statements and income tax returns.
  3. Merchants looking for a credit facility for their own customers and clients. Acentium Capital's Partner Financing (see description below) enables merchants to provide financing to their own clients and customers. The partnership enables merchants to offer a seamless financing option as part of their own operations.
  4. Auto Sales companies and nonprofit organizations. These businesses have been virtually shut out of the working capital loan space. Ascentium Capital will make loans available to businesses in either sector, as long as they meet the lender's credit policy.
  5. Businesses in other industries excluded by lenders. Ascentium Capital doesn't have a list of prohibited industries. There's an excellent chance they'll make a loan to your business as long as you meet their credit policy.
  6. Franchise operators. Ascentium Capital has financing programs available for franchisees (see description below). They provide financing to expand your business, purchase equipment, add new technology, and remodeling or reimaging of your business.

Ascentium Capital Equipment Financing and Leasing

Ascentium Capital offers customized equipment financing and leasing to match the unique business needs and goals of your company. Programs are available to acquire new equipment, technology, and commercial vehicles, as well as to provide working capital. You can apply in minutes, and get quick financing.

They can create a payment structure that works for you. For example, two possible payment arrangements include:

  1. Full payments delayed until the equipment begins generating revenue
  2. Terms extending to as long as 84 months

Benefits of Ascentium Capital's equipment financing and leasing programs include:

  • Financing for up to $1.5 million for new and used equipment and technology
  • For financing of up to $250,000, a simple one-page application is all that's required
  • Instant credit decisions
  • Low- to no- upfront costs - deferred payments and up to 100% financing options are available
  • Pre-approvals provided - merchants can know what they can afford to spend when shopping for equipment and technology

Ascentium Capital also offers all-inclusive financing. Since the cost of new equipment goes beyond base price, other costs can be included in the financing. That includes shipping, taxes and other expenses. Financing these additional costs enables merchants to avoid out-of-pocket payments upfront.

Ascentium Capital Partner Financing

If your product line includes the kinds of transactions that require financing, Ascentium Capital Partner Financing will enable you to give your clients access to the financing and leasing options they need to purchase your products. You will work in partnership with Ascentium Capital, enabling you to offer a streamlined finance platform for your clients and customers. It will give your business an advantage against competitors who don't have the same arrangement.

Ascentium Capital Partner Financing will enable you to offer fast, flexible business leasing and financing options to your customers. That will increase revenue, and improve your closing ratios.

With the Ascentium Capital Partner Financing program you can give your customers and clients access to the following benefits:

  • Financing and leasing facility of up to $1.5 million
  • Single-page applications for loans and leases up to $250,000
  • Terms up to 84 months
  • Flexible repayment options
  • Potential tax savings
  • Instant credit decisions

As a participating merchant, your business will have the following benefits from Partner Financing:

  • 100% pre-funding potential - As a participating merchant, you'll be paid in full upon purchase by your client or customer.
  • CreditPlus - Informs you when your customers or clients are approved for a higher financing amount.
  • iCalc Quoting - Provides online quick quotes and proposals so that you can close your sales faster.
  • MyAscentium - Ascentium Capital's online portal, with finance tools, program reporting and in-depth portfolio details.
  • Support Material - Ascentium Capital will provide you with sales and promotional materials to promote your business initiatives.
  • Financing training - This gives you the ability to determine how involved you'd like to be in the finance process.

Ascentium Capital Franchise & QSR

Ascentium Capital has more than 20 years of franchise financing experience. They provide financing solutions to help franchisees grow their business.

Financing is available for the purchase of the following equipment:

  • POS systems
  • Furniture and fixtures
  • Industry equipment
  • Signage and canopies
  • IT hardware and software
  • Expansions and acquisitions
  • Remodels and reimaging
  • Leasehold improvements
  • New and used equipment
  • Technology acquisitions

Ascentium Capital Franchise & QSR provides fast, flexible franchise financing for franchise locations. Terms include:

  • Flexible financing of up to $1.5 million
  • Equipment financing for new or used equipment
  • Funds for financing, leasing and working capital
  • One-page application for financing of up to $250,000
  • Credit decisions in as little as two hours
  • Pre-approval and deferred payment options
  • 100% financing to bundle associated costs
Kevin Mercadante
About Kevin Mercadante
Since 2009, Kevin Mercadante has been sharing his journey from a washed-up mortgage loan officer emerging from the Financial Meltdown as a contract/self-employed “slash worker” – accountant/blogger/freelance blog writer – on Out of Your Rut.com. He offers career strategies, from dealing with under-employment to transitioning into self-employment, and provides “Alt-retirement strategies” for the vast majority who won’t retire to the beach as millionaires. He also frequently discusses the big-picture trends that are putting the squeeze on the bottom 90%, offering work-arounds and expense cutting tips to help readers carve out more money to save in their budgets – a.k.a., breaking the “savings barrier” and transitioning from debtor to saver. He’s a regular contributor/staff writer for as many as a dozen financial blogs and websites."