Monthly Archives: January 2017

Small Business Loan Application

Believe it or not, every small business loan application doesn’t have to take up a few weeks of your life. Not every lender will require perfect credit, a complicated business plan, and pages and pages of documents just to tell you whether or not your business is going pay rent this month. Occasionally small business owners find themselves in a financial tight spot. That’s a simple fact of doing business. What’s not a fact is that the major banks, SBA and fast cash merchant cash advance companies are your only options for a small business loan application. Read on to learn what other small business loan applications options you have.

The Good and Bad of a Small business Loan Application from a Bank

If you have ever tried to fill out a small business loan application from a traditional bank, you may already understand the headline. If you haven’t, allow me to fill you in. Banks place heavy emphasis on the entrepreneurs personal as well as business credit, in addition to many other factors. For some business owners, a few missed payments on a credit card can be the difference between receiving funding and being left out in the cold.

Most banks will also want years’ worth of tax returns and other documents for their loan application. They will spend weeks analyzing the data, slogging through every decision you have ever made. You will also need to explain exactly how every penny of the loan will be spent in advance, and detail it in a business plan.

Banks will also require a list of collateral and capital that you are willing to risk on the loan. Should your business run into hard times, you may find the delivery van that you need to run your business has been taken away by the bank.

Finally, after the banking crisis of the last few years, many banks are still feeling the after effects of their poor lending policies that led to the near collapse of the economy in the first place. This can make it difficult to simply find a bank that is accepting small business loan applications at all.

I don’t want you to think that bank loans are all bad. Quite the contrary, banks provide some of the cheapest and safest working capital a business owner could ask for, which often more than makes up for the inflexibility of the loan application process.

What about an MCA or alternative loan for small business?

An MCA (Merchant Cash Advance) is a very different form of lending. To qualify, most lenders require you to have been in business for more than a year, as well as a minimum monthly number of credit card transactions. While the terms and process are much more flexible than a small business loan application, the price tag for the capital can vary widely from lender to lender.

MCA’s are not technically a loan; rather, the lender purchases an amount of future credit card sales your business is expected to make at a discount. Because of this, the loan is repaid in micropayments as credit card sales are made. The advantage to this is there are no large monthly minimums to meet. The disadvantage is a slightly higher overall cost unless the lender has access to inexpensive capital and can provide a discount on merchant account services that will further offset the cost.

Unsecured loans, while sometimes more expensive, often have a much simpler small business loan application process. The trade off is the possibility of slightly higher interest rates to cover the risk of the loan. Because of that, it’s best to find a company that offers a lowest rates guarantee during the small business loan application process. Shopping around can help you save a substantial amount.

So what are your options?

Choosing the right option really depends on your situation. If you can afford the extra time and resources necessary to get a traditional small business loan, then perhaps it really is the best option for you. If you have less than perfect credit or believe you may have a few slow months coming soon, a loan based on cash-flow or an advance on your credit card sales may be the best option. In the end the key is finding a reliable bank or lending company that you can trust to help you find the right solution

Small Business Loans

Just like individuals, businesses are also in need of finance. In fact, it could be said that businesses need finance more than individuals to run the show. There are times when the business meets financial bottleneck or may need extra finance to start or alter some area of the business. In such times, loan options are always looked at. For small and medium businesses it is always better to go for unsecure small business loans to solve the problem.

How To Get A Small Business Loan

Unsecure small business loans are available for individuals and businesses. The steps to apply for them are quite different when it comes to business loans when compared to personal loans. The main difference from personal loans is that for business loans the credit score of the business is usually considered. If the credit score is high then the chance of getting it is higher. Different of them providers require different credit score for providing the loan. It always helps to ask regarding this and get a clear picture of what is required.

A check on the business’s credit score can then be done to see if there is eligibility. It always helps to check the eligibility criteria and weigh the company’s options before applying for it. This is because once one or two loan providers check the credit score and rejects the loan there is always the risk that other of them providers will follow suit. So one should always apply for the loan where there is the best chance of getting approval. In case of these loans there is absolutely no need to give any security or divulge social security number. Once the loan application is filled up getting the loan is easy and some loans are approved within a short period of 24 hours. The repaying of these loans can usually be done within six months to 80 months.

The Advantages Of Small Business Loans

Unlike huge secure financial loans, small loans and unsecured loans have many advantages.

  1. They require minimum paper work.
  2. They do not require any collateral.
  3. They are approved within a period of 24 hours in usual circumstances.
  4. There is usually no restriction on the business types who can apply for the loan.
  5. Most of the loan providers allow unrestricted use of the funds.
  6. The loans are usually available at great rates and are easy to repay compared to other loans.
  7. In many cases there is no annual fee charge.
  8. Guidance and support from the service provider with regard to repayment of the loan.
  9. Finally the application process is simple and easy.

For small and medium businesses financing small business loans are ideal. They are easy to obtain and payback. They are the most economical option that is available and can be used for any genre of business. These loans can also be used for startup companies as well as established companies who are facing financial cringe

Small Business Loans For Bad Credit

There was a time when business owners could simply walk into a bank and get a loan for the business based on their working relationship with the bank and loan officer. With today’s turbulent economy, those times are over, and banks are not willing to expend poor credit business loans. Today’s loans are issued primarily based on the credit score of the business owner, which can make it frustrating to search for a loan to expand or improve your business. Rather than turning to your local bank to find small business loans for bad credit, there are some other alternatives to help you to understand how to get a small business loan with bad credit.

In some cases, local business owners can find small business loans for bad credit by speaking to a smaller, local bank and asking them to consider factors other than the owner’s credit score. Many people don’t realize that their business also has a credit score, which is based on the same factors as a personal credit score- your business credit cards and other unsecured debts, payment history for bills, and the outstanding balance on any loans your company has. If your business has a good credit rating, you may be able to obtain a loan even if your own credit rating is lower.

Online specialty lenders sometimes offer small business loans for bad credit. Some of these lenders actually search for businesses that need money. Many of these lenders offer loans that have high initial interest rates, with the provision that the interest rate will be lowered as the business owner demonstrates the ability to make on-time payments. If you are confident in your business’ ability to pay back the loan, this type of loan can be ideal for your business.

An alternative to poor credit business loans is available to business owners who own their own home. In many cases, you can take out either a home equity loan or offer your home as collateral for a secured loan. For those business owners who are confident in their ability to pay back the amount borrowed, using a home as collateral toward bad credit business loans can be a way to get a lower rate and better loan terms.

When you are looking for a more flexible way to get money for your business to make purchases and pay small bills, you may want to consider looking for poor credit business credit cards. There are lenders who are willing to offer credit cards to businesses in lieu of small credit business loans, and by using small business credit cards for bad credit, you can help to build up the credit score of your company. If you need money to make small purchases, such as office equipment, fuel, or supplies, applying for poor credit business credit cards can offer you far more flexibility than poor credit business loans.

Finding the money you need to make your business work may not be as intimidating as you think. Using the resources of lenders who are willing to extend small business start up loans for bad credit, can not only help you stay afloat in a difficult economy, they can help your business grow. Don’t let worries about bad credit keep you from applying for commercial loans.

However, do keep in mind that when you are looking for Small Business Loans For Bad Credit, you have to look at all the alternatives and compare the interest rates of different loans to ensure that you are getting the best deal possible. Often times, you will get the best rates for loans that are secured by some form of collateral.

Small Business Loans Explained

Small business loans are typically bank loans. People who are just starting out on a small business like to approach banks for financing because they give a certain amount of security. Generally, these loans are what are known as term loans. The concept of a this type of credit is really simple – this is of a fixed length, which means that one must return the amount within a stipulated period of time. Generally, the amount is also amortized.

What They Are

Amortization basically means that the loan must be paid in installments, which will cover both the amount of the loan and the interest calculated on the loan, depending on the rate charged by the bank. Term loans are generally of two basic categories and it is important to understand them before applying for a small business loan. These two categories are – Short and Long.

As is obvious, in the case of a short term loan, one must pay back the amount in a short period of time – usually a year or two. But long term loans are for much longer periods of time and they reach a maturity in a period anywhere between one to seven years. A lot of times, the period of returning the amount of these loans run into decades!

Application process

How do you secure term loans? Most times, you need to secure collateral to achieve this feat. The typical amount of the loan is about twenty five thousand dollars – a reasonable amount for a small business to take off. The average rate for fees is one percent. All sounds simple till now? Well, the tricky part is the approval bit.

Generally, the process of approval is a very thorough one, so be prepared for a very tough screening process. As an applicant, you must be able to prove that you are of a good character, competent and able to handle your business and have a pretty good history when it comes to credit. This process is in fact similar to any other process of securing a loan because banks take into consideration all the same factors, in the case of a term loan.

The good news is, if you are eligible for a loan after this screening process, the interest rate which you have to pay will generally be lower than it is for any other type of loan. For an established small business, it is a smart idea to take a long term loan or an intermediate loan. But do keep in mind, that your bank will demand a squeaky clean financial statement for long term loans of amount exceeding a hundred thousand dollars.

Another thing to keep in mind when applying for a term loan is that banks often limit the liabilities that your business can assume, in addition to the loan. This may sound simple enough, but this can cover every aspect of your business, for example, the salary of your employees! So thoroughly evaluate the pros and cons before you apply for a small business loan

Small Business Insurance Quote

A Small Business Insurance Quote along with an automobile insurance policy will normally complete your insurance program. We have outlined below a few key points that you should consider when requesting an insurance policy.

  • Liability limits. Depending on your business, you should have the appropriate liability limits based upon your exposure to claims or accidents. Thus, if you are in some sort of delivery type business the chances are that you will be more likely to have automobile accident than someone who is not in a delivery type business. Also, if you are part of a franchise usually your franchisor will dictate what liability limits you need.
  • Hired/borrowed auto liability. Sometimes you might find it necessary to rent a truck or a van for your business. Having this coverage already on your policy can save you a lot of money from not having to buy auto coverage from the rental car agency. Although, if you tend to rent vehicles routinely many automobile insurance companies frown upon providing coverage for this exposure. The automobile insurance premium for this coverage is usually based upon receipts.
  • Non-owned auto liability. If you have someone who uses their personal vehicle on your behalf, this coverage you should be in place to protect your small business. The rule of thumb to remember is that insurance follows the car first and the driver second. So, if somebody is using a personal vehicle on your behalf and get into an accident, their personal auto insurance will pay first. It is quite possible that you too will be sued in the accident because they were working on your behalf. This coverage protects you from those kinds of claims.

As you can see, and automobile insurance policy can easily round out your small business insurance program.

Small Business Insurance Quotes

Business insurance covers workers compensation, general liability, business, auto and property insurance. There are types of business insurance, the big and small business. They may cover different insurance in different types of businesses. You may need something about a small business insurance quote for the benefits of you and you’re your company.

To put up this kind of business, you have to apply on small business insurance. To do this, you have to understand what the insurance may cover for you. To find an insurance quote, the following should be considered:

• You have to know the kind of your small business because there are companies that may reject your kind of business you want to open.

• Specify the building and address where you will be situated. You have to state the location if it is a private or commercial location. If the location is a commercial office, then you have to consider the following queries.

– The total area
– How old is the building
– Types of occupant of the building

• If your production uses chemicals, you have to specify where the chemicals are stored. If you think of is a mobile service, indicate where the mobile is to be parked

• Description of your business: when it started, annual income (projected and current income), and the number of employees and their nature of work.

• If you have a vehicle production, you have to register a name, license number, drivers’ license for the employee and provide other information.

• The insurance usually covers health, disability, life, property, general liability and interruption insurance, and workers’ compensation.

• When buying insurance, you don’t have to think that it is an additional expense but it is part of it that provides protection in your company.