Using American Capital to Grow Your Overseas Business: What You Need to Know

“Maximizing Business Loan Options with Strong Credit and Revenue”

You’re in a strong position to qualify for a solid business loan, especially with:

A 792 credit score – excellent credit
2 years of LLC tax history – many lenders require 2 years minimum
Six-figure income – strong revenue
Assuming you’re profitable – even better

Here’s a breakdown of loan options you likely qualify for, and what you might get approved for:

1. SBA Loans (Government-Backed)

Type: SBA 7(a), SBA Microloan, SBA Express

Loan Amount: Up to $5 million (most common approvals are $150K–$350K for smaller businesses)
Interest Rates: ~7%–10% (depends on lender and terms)
Terms: 7–25 years
Pros: Low rates, long terms, flexible use
Cons: Slower approval, lots of paperwork
Where to apply: SBA-approved lenders (banks, credit unions)

2. Business Term Loans (Banks or Credit Unions)

Loan Amount: $50K–$500K or more depending on revenue and credit
Interest Rates: 6%–12% typically
Terms: 1–5 years
Pros: Predictable monthly payments
Cons: Strict qualifications
Where to apply: Local credit unions, big banks (Wells Fargo, Chase, etc.)

3. Business Line of Credit

Loan Amount: $10K–$250K+
Interest Rates: 8%–25% depending on lender and terms
Use: Great for cash flow or recurring needs
Pros: Only pay interest on what you use
Cons: May have draw fees or annual fees
Where to apply: Banks, credit unions, online lenders

4. Online Lenders (e.g. Fundbox, Bluevine, OnDeck, Lendio)

Loan Amount: $10K–$500K
Interest Rates: Higher than banks (15%–40% depending on risk)
Terms: 6–36 months
Pros: Fast funding (1–3 days), easier approval
Cons: Higher cost
Best for: Quick capital needs or short-term borrowing

5. Credit Union Business Loans

Credit unions often have better rates than banks and are more flexible.

Good option if you already bank with one.
Many offer SBA loans too.
Loan sizes and terms vary.

How Much You Might Qualify For:

Let’s say your net income is $100K+, with a clean credit record:

SBA loan: Up to $250K–$350K likely
Bank term loan: $100K–$300K
Credit union: Similar to bank if you have strong relationship
Line of credit: $50K–$150K starting
Online loan: Up to 75%–100% of monthly revenue, but shorter terms

Tip:

Want to maximize approval amount?

Make sure your business has a separate business bank account
Show consistent monthly revenue
Keep your debt-to-income ratio low
Have tax returns, P&L, and balance sheet ready

Do Business Loans Require a Down Payment?

Sometimes. It depends on the type of loan and the lender. Here’s the breakdown:

1. SBA Loans

Down Payment: 10%–20% of the loan amount
Why: SBA wants to see that you have “skin in the game”
Exceptions: Some working capital loans (like SBA Express) might not require one
Example: For a $200,000 SBA loan, you may need to put down $20,000–$40,000

2. Bank/Credit Union Term Loans

Down Payment: Varies – usually 10%–25% if it’s for equipment or real estate
For working capital loans: Usually no down payment, but they may require collateral instead

3. Business Line of Credit

No down payment – it works like a credit card: you only pay interest on what you use.

4. Online Loans

Typically no down payment, but the trade-off is higher interest rates
They may deduct repayments daily or weekly from your bank account

5. Equipment or Real Estate Loans

Usually require a 10%–30% down payment, especially if you’re buying a physical asset.

Bonus Tip:

If you want to avoid a down payment, focus on:

Lines of credit
Short-term loans
Revenue-based financing
Unsecured working capital loans

These may not require collateral or down payments but expect higher interest rates or shorter terms.

You can use an American line of credit or business loan to fund a business you own in the Philippines — but there are a few things you need to know to avoid legal or financial issues:

**1. It’s Your Money, So You Control the Use**

Once funds from a business loan or line of credit hit your account, you can typically use them how you want, unless the loan has:

Use restrictions (some SBA or bank loans restrict use to U.S. operations),
Or the lender specifically asks for documentation of use (rare unless it’s a secured loan).

Online lenders and lines of credit are usually flexible with how funds are used.

2. Legal & Tax Implications

If you’re sending money from your U.S. LLC to a foreign corporation, here’s what to think about:

U.S. Tax Side:

Not illegal to invest or loan money to a foreign company.
But it may trigger foreign reporting (like Form 5471, FBAR, or FATCA) if:
- You own more than 10% of a foreign corporation,
- You send large amounts ($10K+),
- You have signing authority on foreign accounts.

Philippines Tax Side:

You’ll want to structure the funding as either:
- A loan (your U.S. business loans the Philippine corp), or
- A capital investment (your U.S. LLC buys equity or adds capital)
Each has different tax treatments for repatriation of profits, ownership rights, etc.

3. Bank & Currency Transfer Issues

You can wire or transfer money legally.
Best to go through registered channels (e.g., Wise, OFX, or business banking wire) to keep it clean and trackable.
Keep records of all transfers and purpose of the funds.

4. Risk Factor

Lenders in the U.S. may not care how you use the funds, but you’re still personally liable, so:

Make sure the foreign business has real operations.
Have clear documentation if audited or questioned by lenders or tax authorities.

TL;DR:

Yes, you can use U.S. loan/credit funds to support a foreign business you’re part of.
Just be smart: track it, document it, and make sure you’re not tripping tax flags.
Want to send more than $10K? Might need to file a few IRS forms to stay clean.