CD-Backed Loan
Get a low-interest business loan using your Certificate of Deposit as collateral. Unlock liquidity without cashing in your savings.
Get what you need when you need it!
CD-Backed Loan
Faster Funding offers CD-backed loans that let businesses access cash without touching their savings. By using a certificate of deposit (CD) as collateral, you can secure a low-interest loan with flexible terms and fast approval. It’s an ideal option for covering short-term expenses, purchasing equipment, or funding growth—especially if you want to maintain financial stability.
Because the loan is secured, rates are lower, and even businesses with limited credit history may qualify. You continue to earn interest on your CD while putting that asset to work for your business.
Get Started in 3 Simple Steps
- Connect with your bank or credit union—confirm your CD’s eligibility
- Submit documents—ID, proof of address, and application to Faster Funding
- Receive approval and funding—usually within a few business days
Ideal Use Cases
A CD-Backed Loan is ideal if you:
- Need short-term liquidity without sacrificing savings
- Are looking for a low-cost alternative to personal or business loans
- Want to maintain your CD’s full term to maximize interest
- Prefer to borrow at lower interest rates with reduced credit pressure
Low Interest Rates
Competitive rates from 2% to 6% APR
Easy Approval
Great for building or rebuilding credit
Quick Access to Funds
Get up to 100% of your CD value
Learn how the Business Line of Credit process works!
Limit Amount: Up to 100% of your CD’s value
Terms: 1 to 5 years, based on the CD maturity
Rates: Competitive rates from 2% to 6%
Loan type: Secured loan – low risk and easier to qualify
Qualifications: To qualify for a CD-backed loan, most lenders will require the following:
- Certificate of Deposit in your name – Held with the issuing bank or lender and in good standing
- Minimum CD Value – Typically $1,000 to $5,000+
- Matching Bank Relationship – CD must usually be held at the same institution offering the loan
- Valid Identification – Driver’s license, passport, or other government-issued ID
- Proof of Address – Recent utility bill, lease agreement, or similar document
- No active liens or legal claims on the CD
- CD must be active – No early withdrawals or pending maturities
- Minimum credit score – Most lenders require 600 to 650+
- Repayment capacity – Some lenders may assess income or repayment ability
Faster Funding’s
CD-Backed Loan: Access Cash Without Touching Your Savings
Unlock liquidity without cashing in your savings. A CD-Backed Loan allows you to borrow against your Certificate of Deposit (CD) while it continues earning interest. Whether you’re looking to fund a business expense or handle an emergency, this low-risk secured loan provides affordable, flexible access to capital—without disrupting your financial strategy.
What is a CD-Backed Loan?
CD-Backed Loans, or Certificate of Deposit-Backed Loans, are a secured loan that allows borrowers to use their CD as collateral. Instead of withdrawing or closing the CD early (and facing penalties), the CD remains intact—earning interest—while you gain access to up to 100% of its value in the form of a personal or business loan.
Here are some of the benefits of our CD-Backed Loan program:
- Keep earning interest on your CD while borrowing against it
- Access liquidity without breaking your savings
- Lower interest rates than unsecured personal or business loans
- Easier approval – great for building or rebuilding credit
- Quick processing – especially when your CD is held with the same lender
- No impact on your investment strategy
How It Works
- Apply online or in person with the financial institution holding your CD
- Submit necessary documents including proof of ID, address, and CD ownership
- Loan is approved—typically for up to 100% of your CD value
- Funds are disbursed into your account; CD remains untouched
- Repay monthly over 1–5 years while your CD continues earning interest
- CD is released once the loan is fully repaid
How We Work. Our Mission & Values
At Faster Funding, we’re committed to helping businesses of all sizes succeed. Our CD-Backed Loan program is just one of the many ways we’re working to make that happen.
To learn more about our CD-Backed Loans or to apply for other types of funding, please contact us. Our team of experts is standing by to help you find the perfect lending solution for your business.
Faster Funding is Here to Help
Frequently Asked Questions
We understand you are probably wondering how this all works. Here are some key topics to help you make informed decisions to unlock your business’s growth opportunities.
Will I lose the interest on my CD?
No. Your CD continues to accrue interest during the life of the loan.
Can I use a CD from another bank?
Most lenders require the CD to be held with their institution.
What happens if I default?
The lender may liquidate the CD to recover unpaid loan balances.
Is this a good way to build credit?
Yes. On-time payments may help improve or establish your credit score.
Is this only for individuals?
No. Businesses can also use CD-backed loans for operational funding without liquidating their reserves.
Get Started
Contact us to learn more about our business revolving line of credit. Our team of experts is standing by to help you find the perfect financial solution for your business.
