Elora University / Programs 101
Understand your options.
Take your next step.
Practical funding education, in plain English.
Learn what each program does, who it may fit, what to prepare and which questions to ask. Start with your business or property goal, then explore the lessons below.
Each lesson now includes detailed screening examples, underwriting considerations, document checklists, costs, deal challenges and practical scenarios. Open “Detailed program guidelines” inside any lesson.
7 lessons available
Educational overviews only. Program availability, requirements, fees, terms and timelines depend on the provider and transaction. Examples are hypothetical, not quotes or approval decisions.
Real estate / Programs 101
DSCR Rental Loans 101
Investment rental property
Residential DSCR loans evaluate a rental property’s qualifying income relative to its housing payment. They are generally for investment property, not a home you intend to occupy.
Who it may fit
Investors purchasing or refinancing eligible rental properties with supportable rent and an appropriate reserve and credit profile.
How it works
For the residential estimate used on this site, DSCR = monthly rental income ÷ monthly loan payment, property taxes, insurance and HOA dues. Lenders decide the qualifying rent and payment method.
What to prepare
Purchase contract or payoff statement, lease or rent information, entity documents, insurance details, appraisal and market-rent support. Credit authorization and reserves may be required separately.
Keep in mindIllustration: $3,250 monthly rent ÷ $2,600 monthly housing cost = 1.25× DSCR. This ratio alone is not an approval.
Detailed program guidelines
Illustrative screening guide, not a current offer. Non-SBA ranges below are examples from Elora’s August 2026 guide, not confirmed provider limits. Ask Elora to verify the current program, state availability and full terms. Timing assumes a substantially complete file and can change.
| Screening item | Illustrative guide / what to confirm |
|---|
| Guide loan range | $75,000–$3,000,000+ per property |
|---|
| Property use | Non-owner-occupied investment rental; property eligibility varies |
|---|
| Illustrative leverage | Guide examples reach 80% LTV for purchase/rate-term; cash-out commonly lower |
|---|
| Credit / coverage examples | Guide often prefers 660+ credit and 1.00×–1.25× DSCR; exceptions and stricter programs exist |
|---|
| Structure / planning window | Commonly 30-year investor loans; guide estimates 15–30 days after a complete file |
|---|
What the provider reviews
Qualifying lease or market rent, monthly housing payment, property type and condition, valuation, credit, equity, reserves, borrowing entity, occupancy and the requested cash-out amount. Lenders may calculate qualifying payments differently.
Detailed document checklist
- Purchase contract or current mortgage payoff statement
- Leases, rent roll and appraisal/market-rent support
- Property taxes, insurance quote and HOA information
- Entity and ownership records, reserve evidence and separately collected credit authorization
Costs and closing questions
Review rate structure, points, origination, appraisal, title, insurance, reserves, escrows, prepayment penalties and whether interest-only periods or balloons apply. A lower rate may come with different prepayment restrictions.
Common deal challenges
Borrower occupancy, insufficient supported rent, low coverage, property-condition issues, inadequate reserves, unexpected taxes or insurance, or assuming a short-term-rental projection will be accepted unchanged.
Worked example / practical scenarioA $250,000 request on a $300,000 value is 83.3% LTV. If the applicable cap is 80%, that test limits the loan to $240,000 even when DSCR is strong. Value, coverage and other caps all apply.
Common questions
Does DSCR mean my credit does not matter?
No. Providers may still review credit, property value, liquidity, ownership structure, experience and other requirements.
Can I live in the property?
Residential investor DSCR programs generally prohibit borrower occupancy. Tell the team how the property will be used before applying.
Does a ratio above 1 mean positive net cash flow?
Not necessarily. Rent minus the modeled housing payment excludes vacancy, repairs, management and other operating expenses. Review a complete property budget.
Real estate / Programs 101
Fix & Flip 101
Acquire, renovate and exit
Fix-and-flip financing is short-term investor financing for acquiring and renovating a property, usually with sale or refinancing as the exit.
Who it may fit
A specific investment project with a supported acquisition price, detailed rehab plan, realistic completed value and a clear exit strategy.
How it works
A lender may apply several caps: purchase loan-to-value, total loan-to-cost and after-repair value. Renovation funds may be released through inspections and draws rather than paid entirely at closing.
What to prepare
Purchase contract, line-item rehab budget, scope, comparable sales, experience, liquidity evidence, entity details and contractor information.
Keep in mindA strong projected resale price does not remove the need for cash equity, reserves, closing costs and funds to manage construction timing.
Detailed program guidelines
Illustrative screening guide, not a current offer. Non-SBA ranges below are examples from Elora’s August 2026 guide, not confirmed provider limits. Ask Elora to verify the current program, state availability and full terms. Timing assumes a substantially complete file and can change.
| Screening item | Illustrative guide / what to confirm |
|---|
| Guide loan range | $75,000–$5,000,000+ |
|---|
| Illustrative term | Often 12–24 months |
|---|
| Guide leverage examples | Up to about 90% LTC and 70%–75% ARV; other caps also apply |
|---|
| Payment / exit | Commonly interest-only; sale or approved refinance |
|---|
| Guide planning window | Often 7–21 days; title, valuation and documents can extend it |
|---|
What the provider reviews
Purchase basis, as-is and after-repair value, rehab scope, budget, comparable sales, sponsor experience, contractor capability, liquidity, contingency and the sale or refinancing exit. The lowest applicable leverage test can control the amount.
Detailed document checklist
- Executed contract, detailed scope and line-item renovation budget
- Comparable sales, ARV support and proposed timeline
- Borrower and contractor track record, entity documents and liquidity evidence
- Title, insurance and permit information when required
Costs and closing questions
Ask about points, interest on funded versus committed amounts, draw fees, inspections, extension costs, reserves, title and insurance. Confirm whether rehab draws reimburse completed work or fund costs in advance.
Common deal challenges
Underestimated rehab, unrealistic resale value, no contingency, unclear permits, insufficient liquidity for draw timing, weak contractor oversight or no credible backup exit.
Worked example / practical scenarioA $200,000 purchase plus $50,000 rehab is $250,000 of simplified project cost. At 90% LTC the cap is $225,000. If ARV is $280,000 and its cap is 75%, that cap is $210,000; the lower $210,000 controls before other tests.
Common questions
What is ARV?
After-repair value: the estimated property value after the planned improvements. It must be supported and is subject to lender valuation.
Can a first-time investor apply?
Some programs consider less-experienced borrowers, but leverage, liquidity, contractor and other requirements may differ.
What if the property takes longer to sell?
Review the maturity date, extension options, extension costs and refinance plan before closing. An extension or takeout loan is not guaranteed.
Real estate / Programs 101
Ground-Up Construction 101
Build from the ground up
Construction financing supports eligible new development through an initial closing and a controlled draw process.
Who it may fit
Projects with site control, a credible budget and timeline, permits or a clear approval path, an appropriate contractor and sufficient borrower resources.
How it works
An initial advance may cover eligible land or acquisition costs. Later draws are approved against progress, inspections, invoices and lien requirements. Plan for the gap between paying for work and receiving a draw.
What to prepare
Land contract or ownership evidence, plans, permits, zoning, line-item budget, construction schedule, general-contractor agreement and credentials, sponsor experience, equity and contingency support.
Keep in mindThe budget needs more than materials and labor. Consider design, permits, financing and carrying costs, contingency and the intended sale or permanent-loan exit.
Detailed program guidelines
Illustrative screening guide, not a current offer. Non-SBA ranges below are examples from Elora’s August 2026 guide, not confirmed provider limits. Ask Elora to verify the current program, state availability and full terms. Timing assumes a substantially complete file and can change.
| Screening item | Illustrative guide / what to confirm |
|---|
| Guide loan range | $100,000–$10,000,000+; larger requests reviewed individually |
|---|
| Illustrative term | Often 12–24 months; extensions require approval |
|---|
| Guide leverage examples | Up to about 85%–90% LTC and 70%–75% completed value |
|---|
| Project readiness | Site control, plans, budget, permits and approvals substantially ready |
|---|
| Experience / exit | Relevant sponsor and GC experience; sale or permanent takeout plan |
|---|
| Guide planning window | Often 30–90+ days, depending on complexity and third-party review |
|---|
What the provider reviews
Land basis, entitlements, completed-value support, hard and soft costs, contingency, sponsor equity, liquidity, GC capacity, insurance, timeline and the final sale or permanent financing plan.
Detailed document checklist
- Land purchase contract or ownership evidence, plans and zoning
- Permits, line-item budget, schedule and sources-and-uses statement
- GC agreement, license, insurance and relevant track record
- Sponsor experience, equity-source evidence, liquidity and contingency plan
Costs and closing questions
Review interest reserve, points, inspections, draw administration, retainage, extension fees, legal/title costs and insurance. Establish who pays for work before each draw and which lien waivers are required.
Common deal challenges
Incomplete permits, aggressive completed value, missing equity, inadequate contingency, budget gaps, contractor issues or a construction schedule that does not align with the financing maturity.
Worked example / practical scenarioThe draw sequence is usually: approved work → inspection and supporting documents → approval → disbursement. Delays between these steps can require extra working cash even if the project is otherwise within budget.
Common questions
Do I receive all construction funds at closing?
Usually not. The draw schedule and completion conditions control disbursements. Confirm whether draws reimburse costs or pay contractors directly.
Do I need experience?
Relevant sponsor and contractor experience is often important. Requirements differ by provider and project complexity.
What commonly causes delays?
Incomplete approvals, unrealistic budgets, unsupported completed values, inadequate contingency, missing documents and unclear equity or exit plans.
Business capital / Programs 101
Merchant Cash Advance 101
Short-term working capital
An MCA generally purchases a portion of future business receivables. It is different from a traditional interest-bearing term loan.
Who it may fit
Businesses with regular deposits and a defined short-term need, such as inventory, payroll or urgent repairs.
How it works
An offer may use a factor rate and daily or weekly remittances. Some agreements adjust remittances with sales. Review the actual contract and reconciliation process.
What to prepare
Recent business bank statements, a signed application, entity details and balances on any existing advances. Additional verification may be required.
Keep in mindIllustration: a $50,000 advance at a 1.30 factor has $65,000 total payback before other fees. A factor rate is not APR, and paying early may not reduce the contracted cost.
Detailed program guidelines
Illustrative screening guide, not a current offer. Non-SBA ranges below are examples from Elora’s August 2026 guide, not confirmed provider limits. Ask Elora to verify the current program, state availability and full terms. Timing assumes a substantially complete file and can change.
| Screening item | Illustrative guide / what to confirm |
|---|
| Funding amount | $5,000–$2,000,000+ |
|---|
| Time in business | Often 3+ months; more options with 12+ months |
|---|
| Monthly deposits | Often $10,000+ on average |
|---|
| Credit review | Different credit profiles may be considered; offer size and cost vary |
|---|
| Remittance | Daily or weekly, according to the agreement |
|---|
| Illustrative timing | 24–72 hours after a complete approval file; not guaranteed |
|---|
What the provider reviews
Deposit consistency, true operating revenue, negative-balance days, returned payments, existing advances and the cash left after remittances. Large transfers are not automatically treated as sales.
Detailed document checklist
- Signed application and separately collected identity verification
- Recent complete business bank statements; Elora’s full application asks for at least four months
- Current advance balances, payment schedules and relevant processing statements
- Business bank verification, entity and ownership information
Costs and closing questions
Compare the amount funded, net cash received, total purchased amount, factor cost, additional fees, remittance schedule, reconciliation provisions, liens and guarantees. Do not assume early payment creates a discount.
Common deal challenges
Repeated overdrafts, undisclosed advances, revenue that cannot be verified, inconsistent documents or a remittance burden the business cannot support. Additional advances may be restricted by existing contracts.
Worked example / practical scenarioA $50,000 advance with a 1.30 factor creates $65,000 contracted payback before other fees. If $2,000 is withheld at funding, net proceeds are $48,000; the contracted payback may still be $65,000. Confirm actual terms before deciding.
Common questions
Can bad credit still be considered?
Some providers review a range of credit profiles. Revenue, deposits, existing obligations and provider rules also matter. Acceptance of an application does not guarantee approval.
Can funding happen within 24 hours?
Select approved files may fund quickly once all conditions are satisfied. Missing documents, verification and bank timing can delay funding; 24-hour funding is not guaranteed.
What should I check before accepting?
Ask about total payback, net funds received after fees, payment frequency, reconciliation, personal guarantees, existing liens, early-payoff terms and restrictions on additional advances.
Business capital / Programs 101
Business Term Loans 101
Predictable scheduled payments
A term loan provides a lump sum repaid over an agreed schedule. Bank and alternative-provider offers can have different costs, documentation and payment frequencies.
Who it may fit
A planned business expense with a repayment period that matches the benefit: equipment, expansion, eligible refinancing or working capital.
How it works
Compare the interest rate and APR where provided, all fees, payment schedule, collateral, guarantees and prepayment rules. Elora’s calculator models monthly fixed-rate loans over 3–5 years; other programs can differ.
What to prepare
Business financial statements, bank statements, entity information, debt schedule, use of proceeds and tax returns when required.
Keep in mindA lower monthly payment does not automatically mean a lower total cost. Compare both payment affordability and total repayment.
Detailed program guidelines
Illustrative screening guide, not a current offer. Non-SBA ranges below are examples from Elora’s August 2026 guide, not confirmed provider limits. Ask Elora to verify the current program, state availability and full terms. Timing assumes a substantially complete file and can change.
| Screening item | Illustrative guide / what to confirm |
|---|
| Illustrative amount | $25,000–$5,000,000+ |
|---|
| Guide term range | Often 1–10 years; the website calculator models 3–5 years |
|---|
| Operating history | Requests are often stronger with 12–24 months in business |
|---|
| Payment | Scheduled principal and interest; confirm frequency and any balloon |
|---|
| Illustrative timing | Days to several weeks after a substantially complete file |
|---|
What the provider reviews
Operating cash flow after existing debt, revenue stability, business and owner credit, debt schedule, collateral, guarantees and the benefit created by the proposed use of funds.
Detailed document checklist
- Year-to-date profit-and-loss statement and balance sheet
- Recent business bank statements and tax returns when required
- Business debt schedule, payoff details and entity documents
- Specific use of proceeds, vendor quotes or an expansion budget
Costs and closing questions
Review APR where supplied, origination and documentation charges, repayment frequency, amortization versus maturity, collateral, personal guarantees and prepayment provisions. A variable rate can change future payments.
Common deal challenges
Weak cash flow, large unexplained revenue changes, heavy existing debt, missing financials or using short repayment periods for projects that will not generate cash soon enough.
Worked example / practical scenarioCompare two offers with the same net proceeds. A smaller monthly payment over more months can cost more overall. Ask for the payment schedule, total repayment and any final balloon before comparing.
Common questions
Are all term loans repaid monthly?
No. The agreement determines frequency, amortization, maturity and any balloon payment. Our calculator is an estimate for monthly amortizing loans.
What strengthens a request?
Consistent revenue, sufficient cash flow after existing debt, accurate financials, manageable leverage and a clear use of funds.
Is a line of credit the same thing?
No. A true revolving line may replenish as principal is repaid, subject to continued eligibility. A term loan is generally a funded lump sum.
Business capital / Programs 101
SBA Loans 101
Longer-term eligible business needs
SBA programs support loans made through participating lenders. An SBA guarantee supports the lender; it does not remove the borrower’s repayment obligation.
Who it may fit
Eligible business acquisitions, expansion, equipment, working capital or owner-occupied business property, depending on the program.
How it works
7(a) can address a range of eligible business uses. 504 focuses on qualifying long-term fixed assets and generally does not fund working capital, inventory or passive rental investments.
What to prepare
Business and personal tax returns, interim financials, a debt schedule, personal financial statement and transaction documents. A business plan or projections may be requested.
Keep in mindAn operating company buying its own premises and a passive investor buying a rental property have different financing needs. Program eligibility must be checked before choosing SBA.
Detailed program guidelines
Illustrative screening guide, not a current offer. Non-SBA ranges below are examples from Elora’s August 2026 guide, not confirmed provider limits. Ask Elora to verify the current program, state availability and full terms. Timing assumes a substantially complete file and can change.
| Screening item | Illustrative guide / what to confirm |
|---|
| SBA 7(a) maximum | Up to $5 million, subject to eligibility and underwriting |
|---|
| 7(a) maturity | Generally 10 years or less, with longer terms for eligible real estate or long-life equipment; confirm transaction structure |
|---|
| SBA 504 purpose | Eligible long-term fixed assets, commonly owner-occupied property or equipment |
|---|
| Typical structure | 7(a): participating lender; 504: commonly bank + CDC/SBA portion + borrower equity |
|---|
| Guide planning window | Often 30–90+ days; complexity and third-party work can extend it |
|---|
What the provider reviews
Business eligibility, size, permitted activity, creditworthiness, repayment ability, ownership, use of proceeds, collateral and required borrower equity. Exact requirements depend on the current SBA rules and lender.
Detailed document checklist
- Business and personal tax returns, interim financials and a debt schedule
- Personal financial statement and ownership information
- Purchase agreement, acquisition details, lease or equipment quote as applicable
- Business plan, projections and equity-source evidence when required
Costs and closing questions
Ask about down payment or equity injection, SBA and lender fees, appraisal, environmental and legal work, guarantees and prepayment rules. A government guarantee is not a promise of approval and does not cancel the debt.
Common deal challenges
Ineligible activities or uses, unsupported repayment capacity, incomplete ownership disclosures, unverified equity, insufficient documents or expecting SBA to finance passive rental investment under a program that excludes it.
Worked example / practical scenarioAn owner-occupied business property may fit an SBA path; a passive rental investment generally requires a different program. Mixed-purpose transactions need a use-of-proceeds review, not an assumption that one term applies to everything.
Common questions
Is SBA funding a grant?
No. This section describes loans that must be repaid according to their agreements.
Can everyone qualify?
No. Size, business activity, location, creditworthiness, repayment ability and program-specific requirements are reviewed by the lender.
Is it a same-day option?
Do not plan an SBA transaction around same-day funding. Full documentation, eligibility review and closing conditions take time. Ask for a transaction-specific estimate.
Business capital / Programs 101
Invoice Factoring 101
Capital tied up in invoices
Factoring converts eligible unpaid business invoices into cash by selling receivables to a finance provider. An accounts-receivable loan is a different structure.
Who it may fit
Businesses selling to other businesses or government customers with documented invoices for completed work or delivered goods.
How it works
The provider may advance part of an eligible invoice and hold a reserve. The reserve is reconciled after collection, less agreed fees and adjustments. Customer credit quality, invoice eligibility and existing liens matter.
What to prepare
Accounts-receivable aging, customer list, sample invoices, proof of delivery or completion, contracts, entity information and existing lien details.
Keep in mindAn advance percentage is not the same as the fee. Ask how the reserve, time outstanding and customer payment affect the amount ultimately received.
Detailed program guidelines
Illustrative screening guide, not a current offer. Non-SBA ranges below are examples from Elora’s August 2026 guide, not confirmed provider limits. Ask Elora to verify the current program, state availability and full terms. Timing assumes a substantially complete file and can change.
| Screening item | Illustrative guide / what to confirm |
|---|
| Guide facility range | $25,000–$10,000,000+ |
|---|
| Illustrative advance | Often 70%–90% of eligible invoice value; not a fee quote |
|---|
| Receivables | Commonly eligible B2B or B2G invoices |
|---|
| Primary focus | Customer credit, invoice validity, aging, concentrations and existing liens |
|---|
| Guide planning window | Often 3–15 business days after diligence; first setup may take longer |
|---|
What the provider reviews
Whether goods were delivered or services completed, customer payment ability, invoice disputes, aging, concentration in one customer and prior liens over receivables. Factoring and an A/R-secured loan are different arrangements.
Detailed document checklist
- A/R aging, customer list and sample invoices
- Proof of delivery or completed work and relevant contracts
- Accounts-payable aging and existing lien information
- Business formation records and bank information through the appropriate process
Costs and closing questions
Ask how fees accrue with time, what happens if invoices pay late, when reserves are released, whether minimums apply, whether customers are notified and which nonpayment risks remain with your business.
Common deal challenges
Disputed invoices, missing delivery evidence, related-party or ineligible receivables, excessive aging, high customer concentration or unresolved receivable liens.
Worked example / practical scenarioAn eligible $100,000 invoice with an 80% advance creates an initial $80,000 advance and a $20,000 reserve before fees. The reserve release depends on collection, the contract and applicable charges.
Common questions
Will my customers know?
Customer notification and collection procedures depend on the arrangement. Ask who communicates with customers and where payments go.
What does recourse mean?
Recourse provisions may require your business to repurchase or replace certain unpaid invoices. Non-recourse protection is limited by the contract and does not necessarily cover every dispute.
Can any invoice be factored?
No. Disputed, aged, related-party, consumer or otherwise ineligible invoices may be excluded. Provider rules and customer concentrations vary.
No lessons match. Try a broader search or choose All programs.
A quick reference
Funding glossary
- Factor rate
- A multiplier applied to an advance amount to determine contracted payback. It is not an annual interest rate or APR.
- DSCR
- Debt service coverage ratio. This site’s residential calculator compares rent with the monthly housing payment; commercial-property underwriting may use net operating income divided by debt service.
- LTV and LTC
- Loan-to-value compares the loan with property value. Loan-to-cost compares it with eligible project cost. Lenders may apply both limits.
- ARV
- After-repair value: a supported estimate of a property’s value after planned improvements.
- Draw
- An approved release of financing, often tied to completed construction work and documentation.
- Stipulation
- A required condition or document that must be satisfied before approval or funding can be completed.
- NSF
- Non-sufficient funds: a payment returned because the account did not have sufficient available funds.
- Exit strategy
- The practical plan to repay short-term financing, such as a sale or eligible permanent refinance.
What happens after you inquire?
Share your amount, purpose and timing. The team can review the initial request, identify potential paths, explain documents needed and coordinate next steps. Providers verify the file and determine final approval and terms. Do not submit IDs, Social Security numbers or bank statements through the public inquiry forms; ask our team for secure collection instructions.
Business funding inquiry Real estate quoteLearning resources
Course structure draws on Elora’s Commercial Finance Program Guide v1.0 (August 2026). Public references: SBA 7(a), SBA 504, CFPB business financing overview, and residential DSCR explanation. Reference links are educational and do not imply a partnership or endorsement.
General education, not legal, tax, accounting or investment advice. Contact Elora for a current program discussion.
