Apple Business Financing: How it Works & Compares to Other Lenders

Cody Cromwell
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Apple Business Financing vs Top Alternatives

How Apple Business Financing Works

Apple Business Financing (ABF) enables businesses to access loans secured by eligible trade in, in-store sales, and returns. Unlike other trade receivables loans, ABF loans are only available in the United States and must be repaid in full with interest within 60 months.

ABF loans are secured by eligible trade receivables, so your business must have sold a product or service that’s eligible for purchase by a customer. The eligible trade receivables can be from an Apple-authorized reseller or retailer either in-person or online. Your business can also purchase eligible trade receivables from a third party to sell to a customer and then use the purchase order to secure the loan.

If you are an Apple Authorized Reseller buying back your own inventory, you can use Apple Business Pay to securely settle your accounts with customers. ABF loans can also be used to purchase Apple-branded products directly from Apple or its authorized resellers.

All eligible trade receivables must be listed on the loan application – usually within 1-3 days while the application is being evaluated and before the funds are dispersed – to secure the loan. If you’re an Apple Authorized Reseller, you can post eligible trade receivables you sell to customers on the application.

What Apple Business Financing Offers

Business owners who choose to seek out business loans for their business are introduced to a number of loans that cater to all types of businesses including: equipment loans, lines of credit, venture capital loans, and business-related loans. These loans are divided by their differences to each other and the way they work.

Business owners may also be introduced to Apple Business Financing. This loan comes in various forms and exists to help business owners obtain capital so their business can grow and expand. Apple Business Financing offers business owners any number of benefits, including: the ability to apply for a loan without a credit check, a flexible application process, and a quick turnaround time, as well as:

Ø The ability to access an advanced business credit score, which helps business owners to successfully compete in the lending market and at the same time helps business owners to be considered for business loans, lines of credit, or venture capital loans.

Ø The ability to access a line of credit that allows business owners to access instant capital, fast credit, a revolving account to meet short-term business needs, and 4.5-6.5% interest on funds borrowed.

Ø The ability to access the funds in excess of what is needed at this time, so business owners can have freedom to use funds as they need them, rather than needing to set aside funds when they have a need to use the funds.

Who Apple Business Financing Business Loans Are Right For

One of the best reasons to use apple business financing is for people trying to grow a business. If you’re an entrepreneur who wants to hire full-time employees, a loan from Apple can help you do that without taking out a second mortgage or incurring any interest payments.

Apple Business Financing is also a great option if you’re buying a franchise and need working capital to purchase inventory to support the new work you’ll be doing to run the franchise.

If you’re working on an innovative idea that can’t exist without financing or investing money, then an apple business financing business loan may be a good solution for you.

In addition to the above and other activities, Apple Business Financing is also a great option for people running their own business and not seeking capital or investment from another person or company.

Any business or freelancer with an iPhone is eligible for apple financing. If you don’t currently have an iPhone, you can get one outfitted with the device you need.

You can also use your Wi-Fi enabled iPad, Apple Watch, or Mac computer to access Apple Business Financing.

Apple Business Financing Rates and Fees

Apple has been in business since 1976, and in the past 45 years, it has revolutionized the way we use technology. It all started with a single computer on a small desk, but now Apple has grown into a mammoth corporation with a collection of products as diverse and vast as the most gadget-mad geek’s dreams.

Naturally, the number of products is enormous; however, with this growth comes the need for funding as well as expansion. To fill in these gaps, Apple offers financing for its products and equipment.

Unlike many other companies, Apple doesn’t accept third-party financing. Instead, it’s doing business with itself, making it easier for its customers to tap into financing deals they have in place with Apple rather than having to deal with a third-party lender like a bank.

While Apple’s business finance deals and rates are an excellent resource for many consumers, they are a bit more specialized. This is why it’s important to understand how Apple’s financing works and how it compares to other options available to you.

Apple Business Leasing Terms

Apple Business Financing Qualifications

The Apple Business Finance service requires a few things of its customers in order to offer the loans. One of the first things they check is the credit score. Credit scores range from 300 to 850, according to Fair Isaac Corporation. However, the lowest credit scores also make up the majority of the U.S. population. Therefore, if you have a credit score lower than that of a typical American, don’t necessarily write Apple off. A poor credit score doesn’t necessarily mean you won’t qualify for a business loan.

Another requirement for the loan is that you must be a current Apple customer. As long as you’ve had an iCloud account or bought an iPhone from Apple in the last five years, you’re qualified for the loan. The reason why Apple requires that is because they want to make sure that you’ve used Apple’s business systems, they’ve dealt with Apple’s support team, and you’ve purchased apps or other software from the App Store in the last five years.

Pros and Cons of Apple Business Financing

To many businesses, having money is like having oxygen. It’s essential and a necessary part of success. However, there are those businesses that want to grow and can’t always get the bank loan they need. There’s a way to get your business started that’s significantly cheaper and easier than a traditional loan.

Apple Business Financing, also known as a cash advance, provides a short term loan to a business. The loan is provided directly by Apple, which has loaned billions of dollars in the past. The loan is payable in full within 90 days of demand and can be used for short term capital expenditures – buying new equipment, renovating your space, etc. In exchange for providing this business loan, Apple receives a share of the company’s business profits.

But is this business financing really as good as it seems? Can it really provide the startup capital your business needs? Read on for an explanation of credit ratings and maturity terms, and a review of other businesses that make more sense for your particular business.

The Basics of Apple Business Financing

All business loans have terms, and Apple’s terms are designed to be similar to personal loans. Being a business, the terms are different than what you’re familiar with.

How to Apply With Apple Business Financing

The Apple Business Financing (ABF) online application is the easiest way for businesses to apply for a long-term Apple lease or line of credit. Applications are reviewed electronically and don’t require the use of a printer or fax machine.

The ABF application includes sections for credit information, your business plan, an assessment of your ability to repay the loan, and information about collateral. You can fill out the application entirely online, or download and print it then mail in the completed document.

While most people can apply for an ABF loan, you must meet certain eligibility requirements. You need to be legally organized in the United States and have a business set up as a corporation or LLC. Do not use ABF to apply for a second mortgage on your home. You also need to have a creditworthy business based in the U.S., or specific locations in the U.S. that meet Apple’s geographic requirements.

Eligibility requirements for ABF may vary slightly depending on the program you choose.

CDW : Best for Apple and non-Apple equipment

CDW Rates and Fees

CDW Terms

CDW Qualifications

& Experience.

We've compiled some CDW qualifications and experience that you should consider when considering an Apple Business Financing [AFF] loan.

The CDW…s competencies include ensuring quality and delivery of Apple products that you have purchased. The CDW acts as a middle-man between Apple and the sellers. If the product you purchased is not right, the CDW will investigate it and work to fix the problem. Other CDW competencies include negotiating contract negotiations, selecting the most convenient payment terms, handling Apple’s customer care, and maintaining a secure environment for your personal information.

The Technical Advisor is the one who is hands on and can deliver the product to your doorstep. Their competencies include a thorough knowledge of Apple’s products, the quality control process, the Apple’s customer care system, and managing the sellers and Apple’s online sales operations.

The Financial Advisor must have an understanding of current Apple finance and funding credit and leasing programs, be able to manage vendor contracts, identify credit risk, and monitor current Apple financials.

The Merchant Account Coordinator has to be able to manage Apple’s merchant accounts. He must also be capable of supervising the final day inventory and the preparation of company’s tax returns.

How to Apply With CDW

Each year Apple purchases more and more from its manufacturers directly to fill its store shelves and home users’ computers. When it needs to do this, it doesn’t use credit because the accounts receivable (A/R) process is done with its partners.

However, Apple is constantly bringing on new products and updating existing products, so it has a lot of money tied up in goods it can’t sell. In order to get that money out of the business to make it available for other uses, Apple secures a loan. Here’s what that process looks like and how it works.

Like it does with its other suppliers, Apple negotiates the terms of a loan with a commercial bank. The bank will credit your account with the amount Apple needs to draw down the money, and Apple is responsible for paying you back. You’ll also receive interest on your investment.

Crest Capital : Best for Flexible Repayment Options

CCN offers all types of financing options to suit individual and corporate businesses. The term range is anywhere from one to three years and consumers enjoy a competitive interest rate and flexible repayment options.

If you don’t need an immediate cash infusion for your business, but you would like to slow down the draw on your personal credit, you may be able to get a loan with a more advantageous interest rate in the future. One of the best applications you can use is to make the decision between borrowing from a bank or financing with a credit union. The main difference between borrowing from a bank and borrowing from a credit union is that banks charge an interest rate that tends to be higher than those in the credit union market and banks usually want a large down payment. Credit unions want to get borrowers into the member-owner system and charge a lower interest rate, plus they typically require a very small down payment.

Banks do offer some funding options, but those options usually have installment plans and longer funding terms.

Crest Capital Rates and Fees

Crest Capital, a division of Cleveland, Ohio based Crest Investment Corporation, has been one of the most popular online lenders, especially for small business loan programs designed for sole proprietors and small corporations. Since it was founded in 1957, Crest Capital has evolved into a leading B-BBEE company (a company with a policy to support the black business enterprise) and has participated in the financing of a large number of small businesses for more than half a century.

The main advantage of the Crest Capital is that it makes loans quite quickly. The company says that it focuses on making loans with quick resolutions. An applicant spends between 5 and 20 minutes filling out the paperwork and then all that is needed is a personal check.

Another benefit is that Crest Capital loans have relatively low interest rates compared to other online lenders, typically 0.9%-1.5%.

Crest Capital has separate programs for varying amounts as low as 30000 dollars to 75000 dollars. Loans typically range up to 150000 dollars.

Crest Capital loans are available in a variety of terms, including single-payment loans, installment loans, and loans with payback options.

You can compare Crest Capital rates with other services like online lenders, Credit Unions and accredited lenders.

Crest Capital Terms

Crest Capital provides financing for up to 100% of your investment cost, in some cases as less as 50-70% percent with conditions occur.

There is also a 10% interest rate processing fee taken out whenever you close and the length of time it takes to receive a loan will depend on many things such as financing amount, credit scores, and the financing package chosen.

Ryan Feeney of Crest Capital says that most deals are closed in 7-12 days and funding will take 3-5 business days to receive.

A letter of acknowledgment will be provided to the client within 5 business days of the loan closing and the purchase documents will be mailed out within 1-2 days.

Crest Capital does not have to process onsite verification to cross compare the loan to a credit check, which is a major advantage over larger banks.

Crest Capital Qualifications

Crest Capital has a broad financing services portfolio focusing on a variety of industries. From real estate lending to small business loans, Crest Capital’s clients include commercial real estate property owners, developers, investors, local governments, utilities, and technology startup companies. Though they offer commercial financing solutions, Crest Capital’s application process hasn’t been designed for customers seeking commercial financing purposes. Rather, it is based on documented need and financial strength. Unlike the majority of other lenders, Crest Capital requires its clients to qualify their businesses through its business advisory services division before receiving the loans they seek.

How to Apply With Crest Capital

National Funding : Best for New Businesses

National Funding is a type of financing that lets you use your existing business credit to get a loan from a bank. Your business will be the main borrower, with the bank acting as the secondary (so you’ll have two loans on your business).

National Funding is generally used for new businesses and for growing businesses that need more working capital.

Let’s break down the basics of National Funding so you understand how it works.

Your business will be the main borrower.

You’ll have at least two separate loans.

When you get a loan through National Funding, you’ll be using part of your existing business credit to get the loan.

When you take a loan, your credit history will be the same as your business credit history. This means that you’ll be able to use your business credit to get other bank or lender loans.

If you’re looking for a loan for a new business, National Funding might be a great option. If you’re looking for a big loan and want to consolidate your current business and personal credit, check out our Finance Resource Center!

Check out the link below to get started on Funding your business:

National Funding Rates and Fees

Apple Business Financing offers a competitive financing program. They offer the following financing terms for equipment purchases of all Apple products:

  • 8% APR for 12-36 months
  • 5% APR for 36-72 months
  • 5% APR for 72-96 months

They also offer a post-delivery payment plan that retails at a discounted rate to the advertised finance rate.

The above rates are based on the prevailing composite index and adjust automatically every four months. On the loan application the Reserve Bank of Australia provides the figure for the base index that Apple will apply. This can be found on the Reserve Bank of Australia Liquidity Ratios

Apple Business Financing also offers the following low APR options for equipment purchases of Microsoft and Android products:

  • 5% APR for 36-72 months
  • 5% APR for 72-96 months

These options are based on the composite index and do not adjust automatically every four months.

Apple Business Financing also offers a unique low rate for purchases of Monitors, Printers and Scanners. These rates are also based on the composite index and do not adjust automatically every four months.

National Funding Terms

We understand that your business is unique, so we created a unique approach to understanding our Apple Business Financing solutions. Apple Business Financing offers a flexible plan to help you quickly access Apple products, establish a credit profile, and eventually improve your credit rating. Here’s an overview of the financing plan:

  • No cash advance fees if you use Apple Pay to make your payments
  • No origination fee when you apply for an Apple line of credit
  • No annual percentage rate (APR) for an Apple line of credit
  • Access to service and support for your Apple products during the term of the plan
  • No down payment or sales tax
  • Potential tax benefits
  • On average, the business buyer will pay off the plan in 5 years
  • In addition, buying with Apple Business Financing typically takes less time than other financing options, which typically require between 60 days and 90 days for approval, underwriting, and delivery.
  • You can buy Apple products with an Apple line of credit.
  • You can use an Apple line of credit to purchase other products or services that you can use in your business.

National Funding Qualifications

For many Americans, a home equity loan is their only means to obtain financing or take out a mortgage since a car loan, student loan or credit card account are typically not considered debt. Beyond just looking for the right rate and terms, the question of which lender is right for you comes down to finding the right lender. There are a few different types of lenders that specialize in providing mortgage financing and some of these lenders may not be right for everyone.

If you are in need of either a secured or unsecured loan, the ultimate question you’ll want to ask is which lender will provide the best terms for your situation. This includes the types of terms you’re looking for, the amount of cash you’ll need to put down and if you can take a mortgage loan or want an unsecured or a secured loan.

Lenders like the following will meet specific requirements if you need to make a down payment:

General Financing Lenders …

These lenders are, as you might expect, not specialized in mortgage lending. They do not prioritize lending to people who have a low income, credit rating or a blemished credit history. If you’re seeking a mortgage loan, this type of lender should be your last resort if you are looking for a competitive rate or terms.

How to Apply With National Funding

When you’re a start-up, you need competitive, fast and personal loans to help your business grow. Thanks to our partnerships with National Funding, potential borrowers can quickly apply for funds from over 1,000 lenders nationwide.

Applicants need to be able to validate their credit score and income in order to qualify for a loan with National Funding. We compare the rate to other lenders and guarantee a lowest rate possible through our network.

Home Equity: U.S. National Funding's Home Equity program provides financing based on the value of your home. The Home Equity Home Loan product allows you to borrow up to 80% LTV of your home equity. Home Equity requires the owner-occupied property be in and a hazard insurance policy to be in force.

Reverse Mortgage: A Reverse Mortgage is designed to help eligible homeowners age 62 and older age afford their home. They can access the funds in your home without triggering a taxable event. To qualify, you must also be a U.S. National Funding member and have an average to above-average credit score.

Personal: If you don’t need to borrow the total value of your home, then how do you finance your business? That’s where Personal Loans come into play. Personal loans provided by National Funding offer a variety of payment options and flexible terms to help businesses grow.

Balboa Capital : Best for Small Businesses With Poor Credit

It might surprise you that many businesses survive in the current financial market even when they have poor credit histories. But, just like small businesses with no credit history, small, less-established businesses have to deal with the burden of financing as well. For this reason, it is extremely important for them to get the right financing package in order to succeed regardless of the situation.

Always remember that the ability to handle financing is directly related to the ability to take on successfully in any given business venture. Thus, a decision on whether a business has the ability to take on financing or not can be made from the business’s track record. It will tell you a lot about its foundation and growth prospects.

As you know, small business financing is an integral aspect of running a business, especially for the small and start-up businesses that lack a credit rating. Thus, if they are unable to secure financing from the bank, they have to seek out other types of funding.

For this reason, it is important for them to see the benefits of borrowing from a small, not-so-well-known carrier or a direct lender. Small businesses that lack a credit history are likely to see the competition easing the path of financing for them with less risk, higher return and more favorable terms.

Balboa Capital Rates and Fees

Balboa Capital Terms

And Conditions:

Balboa Capital makes business loans through their wholly owned subsidiary, CCB Business Funding. Terms and conditions apply to all loan applications. Terms and conditions include a commitment letter, underwriting and documentation requirements, covenants, and operating guidelines. Loan amounts are not fixed and vary based on application. The maximum loan amount is shown at the top of this post. The loan amount plus the funding fee is deducted at the time of disbursement. Loan fees and closing costs may also be added to the loan amount. Rates, fees, and closing costs may include origination fees, underwriting fees, and interest charges. Loan amounts and interest rates are subject to change until final loan closing. Loan decisions are made at the sole discretion of Balboa Capital. Loan approval is based on qualifying criteria and creditworthiness of the applicant. No loan decision is final until all documentation has been reviewed and the loan is closed. Balboa Capital reserves the right to decline a loan request depending on the probability of success.

Balboa Capital Qualifications

Apple Business Financing program loans are not open to the general public due to limited access to the program.

Balboa Capital is comprised of credit-qualified partners who are investors and potential lenders in the Apple Business Financing program. These partners have undergone an extensive background check, a verification process and thorough training; ensuring they are aware of the importance of business financing.

All Balboa Capital partners must first qualify for the Apple Business Financing program and earn an Apple Business Finance business loan. Balboa Capital partners are then able to refer borrowers to the Apple Business Financing Program and set general parameters for the loan such as amount, repayment schedule, capital utilization and repigmentation fees.

Once approved, Balboa Capital partners can choose to provide the loan utilizing a direct credit arrangement or a secured debt facility. Payment terms can also be customized for each loan. Balboa Capital reserves the right to not fund a loan if the business is not viable.

How to Apply With Balboa Capital

Do you have a business idea? Looking to get back into business? Or is your small business struggling, and you’re looking for a way to keep it afloat? One of the best ways to relieve your cash flow problems is by receiving a business loan. It’s not easy to get a traditional business loan, but not all business loans have to come from a traditional bank. One way to get the necessary funds is through Apple Business Financing.

Borrowing with Balboa Capital

Before you apply for a business loan, take some time to fully understand what business loans are and what they do in the world of business financing. A business loan is a loan to businesses that is backed by the assets of the borrower. The assets of the business include the inventory, accounts receivable and most importantly, the business itself. As a business grows and has more assets, the loan can increase, assuming the business is capable of repaying the loan.

If you consider this, you might be wondering how Apple business loans work. Although many other business loans work the same way, it’s important to note that Apple business loans are slightly different.

TigerDirect Business : Best for Short-term Financing Needs

TigerDirect Rates and Fees

TigerDirect Lending offers a wide range of products and financing solutions to consumers of all ages. The website search tool at the top of the page includes some products that are not currently available for UK and EU residents. The company does not currently offer loans or financing for Mac products.

Although this company offers some of the traditional products that consumers need for both personal and business use, it doesn’t offer some of the more innovative products and technologies that consumers have come to expect. For example TigerDirect offers only electronics and peripherals, but does not offer finance for Mac products. If you don’t need a computer or possibly a tablet, then this lender will quickly become a good fit for your needs.

When financing a Macbook or other Apple product, TigerDirect provides one of the lowest interest rates among all the companies that we researched.4 The company offers an APR from 1.9% to 13%, depending on your type of loan (Macbook purchase or other Apple product). With a term of 84 months, the company’s interest rate is not quite as good as some of the competitors.

TigerDirect Terms

TigerDirect Qualifications

Apple Business Financing is available only to businesses that are located in the United States.

Technically, a business can only qualify for these loans if they are located in the US, but there are some exceptions. Apple actually guarantees loans for businesses in the UK and Australia.

So, you can get a Business Financing loan even if you are located outside the US, but only if you meet the following conditions:

The business is physically located in the US.

The business is incorporated in the US.

You have a physical US address registered to the company.

The business has a US-based bank account.

You have a US-based tax ID number, company number and state tax ID number.

If this sounds like a lot of requirements, you are right. However, you should know that there are a few exceptions that could allow you to qualify. For example, if a foreign company owns US-based assets that do not benefit directly from any acquisitions, partnerships or mergers. You can also qualify if you are the agent or owner of a US entity that use its services (for example, an intellectual property).

How to Apply With TigerDirect

Bottom Line

In general, Apple Business Financing is really an easy way to buy an apple product at a great interest rate. It is very much like other financers including payroll loan, line of credit and business credit cards.

Some small businesses complain that the great interest rate is too high. If you look at this from a business credit angle, you can ensure your small business with a good credit line is able to access the funds.

If you find this credit card another way to expand your income or fund your business, I think you will like this product or service,.

You can see that this is a decent product that supports your small business.