Tag: A

Business Loans – Apply for a Business Loan Today, loans for starting a business.#Loans

Business Loans

Loans for starting a business

A business loan can help you realize your aspirations for your company. Whatever the size of your business, whether you are just starting or you need a cash injection to expand, you might require the extra support of a loan. However, if you are considering a business loan make sure that it is something your business can afford. It is worth comparing as many different business loan offers as possible to ensure that you get the best deal possible. This loan could be the make or break of your business. Work out all of your costs carefully and make sure you are confident that you will be able to make payments on time. Generally speaking the two main types of business loans are either secured or unsecured. It pays to do your research and shop around because you are more likely to find a better deal than just accepting the first loan that you come across. We provide the details for loan suppliers who offer some of the best interest rates in South Africa.

If you wish to speak to someone: Contact Us

Related Business Loans Products

Compare Business Loans

Loans for starting a business

Whether you are just starting up or are already an established business, a business loan can help you reach your goals.

These types of loans are taken out for people looking for financing for their business. Often getting the right finance is critical to the success of any business.

Business loans can help you realise your current and future aspirations.

Whatever the size or type of your business you can find a wide range of loans that can suit your corporate requirements. There are lenders that specialize in finding both short term and long term financial solutions for business owners, regardless of their personal credit history.

Be prepared to be required to submit a business plan when applying for a loan to provide information to the lenders on the performance and future plans for your business.

What can a Business Loan be used for?

Most business loans are taken are in order to expand a business’s earning potential in some way. Business loans are particularly helpful for companies looking to get started. Business loans give businesses instant access to money allowing companies to expand their potential profitability.

Business loans are used for a range of purposes. It could be that you are looking for new offices or space for your business, you want to purchase business insurance or you need to buy necessary equipment, employ more staff or for promotion for your company.

Finding the right loan for you and your business

Whatever your needs it is important that you choose the right business loan to ensure you get the best deal. Make sure you find the lender that offers the most competitive interest rates and a range of loan terms to suit your requirements. Choose a company that understand your specific needs.

The amount you can borrow will depend on your business and each lender will have its own criteria. The exact amount you can borrow is usually based on the size or type of your business but could also be determined by what you need the money for.

Watch out for any hidden or upfront fees that might be attached to the loan and always read the terms and conditions thoroughly.

Business loans can have many flexible aspects so take your time and compare the different loan offers. Use the table above to compare different lenders.

How to compare business loans quickly and easily

Searching for a loan that is suitable for you can be a challenging task. That is why our comparison grid will come in helpful so you are able to make an informed decision your you and your company. You are quickly able to compare information such as the provider, representative APR, total amount payable, product and terms and conditions.

Remember, every time you are refused an application for a loan it could have an effect on your credit rating. Only apply for a loan you are confident you will be accepted for.


Tags : , , , ,

Form a Corporation – File a Corporation Online – Business Formation Services, MyCorporation, incorporate

Start a Business

Save time, money, and hassle when you use our professional document filing services to help form your corporation.

  • Secure personal assets through liability protection
  • Save money on taxes
  • Establish credibility with customers

Learn More

Services start at $69

Our Customers Say

We make it easy to file your documents

Do it all in just 3 steps.

Answer a few basic questions.

We prepare the documents.

You receive your completed filings.

Incorporate Your Business

Let the business filing experts at MyCorporation save you time, hassle, and money to incorporate your business.

  • We make incorporating a business affordable.

Our incorporation services start at just $69 ( plus required government fees ). Lawyers charge, on an average, over $200 per hour. With our document filing services, you know exactly what you need, what you are getting and how much it all costs from the very beginning.

  • We take the bureaucracy out of incorporating.

    You could file everything yourself, but when you consider the time needed to file, administer and maintain all the documents necessary to keep your business running legitimately, why would you? MyCorporation offers you serious savings when it comes to your time and resources.

    Once you decide on incorporation, simply fill out our online incorporation application and we take care of the rest.

    Call one of our business filing experts to walk you through the incorporation process. Or, simply answer our questionnaire online that walks you through the process step-by-step, and one of our experts will contact you to confirm and track your order. We are an online service, backed by real people.

    Incorporate your business today for only $69

    View Frequently Asked Questions

    What are the types of corporation to choose from?

    When you decide to incorporate your business, there are four different business entities to choose from: C-Corporation, S-Corporation, Non-Profit Corporation, or Professional Corporation . Read more or compare business entities in our Comparison Chart.

    What is a C-Corporation?

    What sets a corporation apart from all other types of businesses is that a corporation is an independent legal and tax entity, separate from the people who own, control and manage it. Because of this separate status, the owners of a corporation don’t use their personal tax returns to pay tax on corporate profits the corporation itself pays these taxes. Owners pay personal income tax only on money they draw from the corporation in the form of salaries, bonuses, and the like.

    If you would like to learn more, visit our Learning Center or Comparison Chart.

    What is an S-Corporation?

    An S-Corporation is a regular corporation that has elected S-Corporation tax status. Forming an S-Corporation lets you enjoy the limited liability of a corporate shareholder but pay income taxes as if you were a sole proprietor or a partner. In an S-Corporation, all business profits pass through to the owners, who report them on their personal tax returns. The S-Corporation itself does not pay any income tax. Therefore, an S-Corporation elects not to be taxed as a corporation. After the corporation has been formed, it may elect S-Corporation status by submitting IRS form 2553 to the Internal Revenue Service (in some cases a state filing is required as well). Read more about electing S-Corporation status.

    What is a Non-Profit Corporation?

    State laws distinguish between for-profit (stock) corporations and non-profit (non-stock) corporations. A non-profit corporation often involves an organization whose primary objective is to support some issue or matter of private interest or public concern for non-commercial purposes. Examples of non-profit types might relate to the arts, charities, education, politics, religion, research, sports or some other endeavor. Under the Federal Tax Code Section 501(c), a tax-exempt corporation cannot pay dividends and, upon dissolution, must distribute its remaining assets to another nonprofit group.

    What is a B-Corporation?

    A benefit corporation is a corporation organized under a state’s general corporation law that has elected to become subject to benefit corporation statutory provisions. Most benefit corporation statutes require that the entity “shall have the purpose of creating a general public benefit,” meaning it must create a “material positive impact on society.” In many states this general public benefit purpose is in addition to, and may be a limitation on, any specific purpose set forth in its articles. The benefit corporation was created to provide an option for entrepreneurs who want to voluntarily adopt higher standards of corporate purpose, transparency, and accountability. The entity provides a way to legally cement a social or environmental mission into a company’s corporate and legal structure.

    The provisions of general corporation law apply to benefit corporations except where those provisions are in conflict with or inconsistent with the benefit corporation provisions. Therefore, like a traditional for-profit corporation, a benefit corporation is an independent legal and tax entity, separate from the people who own, control and manage it. Because of this separate status, the owners of a benefit corporation don’t use their personal tax returns to pay tax on corporate profits-the corporation itself pays these taxes. Owners pay personal income tax only on money they draw from the corporation in the form of salaries, bonuses, and the like.

    What is a professional corporation?

    If your corporation will be engaging in what your state might call Professional Services, the Articles of Incorporation must bear special language and the corporation must be formed pursuant to certain statutory provisions.

    • Medical Services
    • Legal Services and Representation
    • Accounting and Financial Services
    • Architectural Services
    • Other services may be included in this list depending on your selected state of incorporation

    It is important to note that most states vary in their requirements regarding licensing of professional activities, therefore, we encourage you to seek the advice of an attorney if you fall within the Professional Services statute of your state.

    How do I assign a corporate officer?

    Our applications allow you to name up to four officers for your corporation when you file with us. Most states allow businesses to authorize one person to serve in the three mandatory positions:

    This person’s responsibility and authority changes for each position.

    The President The President has the overall executive responsibility for the management of the corporation and is directly responsible for carrying out the orders of the board of directors. He or she is usually elected by the board of directors.

    The Treasurer The Treasurer is the chief financial officer of the corporation and is responsible for controlling and recording its finances and maintaining corporate bank accounts. Actual fiscal policy of the corporation may rest with the Board of Directors and be largely controlled by the President on a day-to-day basis.

    The Secretary The Secretary is typically responsible for maintaining the corporate records. In addition to these required officer positions, a corporation may also have vice presidents and/or assistant secretaries or assistant treasurers.

    What is a Registered Agent?

    The purpose of a Registered Agent is to provide a physical address for your business so that it can accept official documents on behalf of your corporation (tax notices, annual reports, legal-process documents such as a summons, etc.).

    The primary benefit of this service is that it provides a layer of privacy between you and the public. As the Registered Agent’s name and address is one of public record, generally the Registered Agent’s legal address will be the one listed in all official public documents.

    Penalties for not maintaining a Registered Agent may include fines or revocation of business’s corporate legal status. Please note that post office boxes are not allowed.

    What else after I incorporate?

    To keep your business legally viable, there are a number of steps you may need to follow after you incorporate your business. For example, you may need to file an Article of Amendment if you need to make changes to your company. You also may need to issue stock or file an Annual Report, which is a requirement in most states. Our business filing experts can help you process necessary changes to your business.

    What our Customers are Saying

    “This is my first experience with setting up an LLC (or any type of company), so I did not know what to expect. Your website walked me through the process and it was very easy”

    “The experience was wonderful and extremely simple using MyCorporation. We really appreciate the fast and easy service they provided for us!”


    Tags : , ,
  • Financing Your Business – No Bank Account Loans, financing a business.#Financing #a #business


    financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business

    Financing a business


    Tags : , ,

    How to get a business loan, options & requirements, Business Victoria, applying for a

    Apply for a business loan

    Not what you’re looking for?

    • Choosing a loan you need
    • Improve your loan approval chances
    • Risk assessment

    When applying for a business loan, it’s essential to prepare a detailed business plan and fully inform the lender about your proposed venture. This information helps the lender to provide you with the right type of finance and advice.

    Deciding that your business needs a loan is only the first step. There are a number of things to consider before you approach a lender:

    • how much do you need to borrow?
    • what type of loan will you need?
    • how long will you need it for?
    • can the business afford to repay the loan, interest and any one-off or ongoing fees that come with the loan
    • what security can you offer the lender and how this affects the interest rate offered.

    Online repayment calculators are a good tool in researching options but make sure you take the following into account:

    Access to funds you borrow

    If you need to access the funds on a semi regular basis to help with cash flow to keep the business operating while waiting for your customers to pay for goods, ‘at call’ loans such as an overdraft or line of credit are designed for this purpose. However, if you need the funds to buy a new business or equipment to expand your existing business you will need the funds ‘upfront’. This is also known as a ‘fully drawn advance’ and provides you with the entire loan amount all at once.

    Loan terms

    Loans provided upfront will need a portion of the loan plus interest paid back at regular intervals. The repayment amount will depend on the term or length of the loan. To determine the loan term suitable for your business you will need to calculate how much you can afford to service the loan. Be aware that the longer the loan term the more total interest you will pay. Loans that are at call have no fixed terms.

    Ongoing funding

    This is the average amount of an overdraft or line of credit that is used at any one time. For example, you may wish to have an overdraft limit of $20,000 to provide money for the occasional big expense, but usually you won’t use more than $5000 of that credit limit on average. So in this case $5,000 is the level of ongoing funding you need.

    When applying for an overdraft limit, things to watch out for are:

    • higher the overdraft amount higher the fees
    • clauses where the lender can demand repayment of the whole loan at any time.

    Fixed or variable interest rate

    The choice of rate will affect the stability of repayments, overall cost of the loan and the loan features available. With a fixed rate loan the lender bears the risk of interest rate moves, while with a variable rate you will bear this risk. Ultimately, the choice of variable or fixed rates will depend upon how much free cash flow your business generates after you have paid all your expenses, including loan repayments. If your business has a low profit level, a variable rate loan repayment may rise beyond your ability to pay.

    Loan security

    Loans can be secured or unsecured by various types of assets, including residential, commercial, rural property or business assets. Alternatively, some loans are unsecured by any asset. Generally the less you provide for security the higher the interest rate will be. Be aware the lender has the legal right to seize any property or asset you offer as security if you can’t repay a loan on time.

    There can be fees which can make a loan less attractive than it first seems. These include one-off fees such as establishment/application fees, exit/discharge fees and early termination fees or regular fees such as service fees or line/credit advance fees. The Business Loan Finder tool includes the cost of set-up and ongoing fees in the average monthly repayment to give you a better idea of the true cost of the loan.

    Seek advice

    The information provided here will provide you with a range of possible finance options. It is important to seek advice from your accountant or business advisers before approaching a lender for a loan.

    Tip: Use our below Cashflow forecasting template to plan your cash flow and work out how much you need to lend.

    Plan the business, plan the finance

    Lenders will ask for a lot of in-depth information about the financial history of the business. It’s also important for you to create a convincing and detailed business plan which should include a profit and loss budget and cash flow forecast. The information you use to build your business plan may also be needed by the lender to assess your project. This includes both the past and future plans for your business, the people working in it and the market itself.

    The outcome of your application is strongly influenced by how well your proposal is researched and how well it is presented.

    Risk assessment

    Banks and other lenders will look at your business’s risk profile when considering your loan application. Understanding what lenders look for and what they consider risky will help you present your business in a favourable manner.

    As a general rule, lenders look for:

    • the level and nature of your security (what you’re offering to give them if you can’t repay the loan)
    • your ability to make regular loan repayments (cash flow risk)
    • your ability to ultimately repay the debt (business risk), including any other debts you might already have.

    You need to be able to assess the level of cash flow or business risk in your specific circumstances. A projection of the cash requirements of the business is most important to a lender, as it is the actual cash left after expenses that will repay the loan, not income. It also shows you are an effective manager.

    A lender’s perception of risk

    The following factors can influence your lender’s perception of risk. If a number of these areas apply to you and your business you may need to consider another source of finance.

    • start up businesses incorporate financial, business and management risk
    • lack of security
    • lack of business history
    • industry sector, factors will include levels of competition, barriers to entry, profitability profile and current economic conditions
    • highly seasonal businesses, for example swimwear and agriculture. You’ll need to demonstrate how you’ll deal with cash flow pressures in the off season
    • lack of planning, market knowledge and finance skills
    • poor credit history.

    Watch out! Before entering into a payment arrangement with the Tax Office, businesses should discuss this with their current or future lenders. Many businesses are unaware that entering into a payment arrangement with the Tax Office or other government agencies may adversely affect their current and future financing arrangements. For instance, a lender may not lend to a business if it is currently in a payment arrangement.

    For more details visit the Guide to managing your tax debt on the ATO website.


    Tags : , , , ,

    Small-Business Loans – 3 ways to get a loan, loans for a business.#Loans #for

    3 ways to get a small-business loan

    The recovering economic environment has meant that small businesses have had to be more creative when looking for loans.

    However, companies with sound business strategies still can borrow. Options include loans from traditional banks and institutions affiliated with the Small Business Administration, as well as financing from Internet-based lenders.

    “For creditworthy, high-scoring small businesses, there is money available,” says George Cloutier, CEO of American Management Services, a consultant to small businesses.

    Bank loans

    The best place to get a small-business loan is still a bank, says Cloutier. Banks typically offer the lowest interest rates and many have established reputations as trustworthy lenders.

    “Many small businesses try three or four banks and then stop looking,” Cloutier says. A more persistent approach has better odds of success.

    Calculate business loan payment

    Want to calculate your small-business loan payment? Go to Bankrate’s loan and amortization calculator.

    “Take out the phone book, target 10 banks and work through that list,” he says.

    That strategy worked for Michael McKean. He is founder of The Knowland Group, a company that helps hotels fill up their meeting space.

    A few years ago, as the success of The Knowland Group grew, McKean began searching for a bank that would give the growing company expanded access to credit.

    “We talked to every bank in our area, at least a dozen,” McKean says. “Many came back with proposals, but the terms were very onerous. Or sometimes they shifted terms.”

    Finally, M T Bank came through.

    “They just wanted to get our business,” McKean says.

    McKean says his company did not approach M T any differently than it had approached the other banks. It was just a matter of being persistent until the right deal came along, he says.

    “We did everything right, approaching the right person at each bank,” he says. “We’re a profitable business. I think it was just the … credit crunch that prevented us from getting a loan.”

    Cloutier says the key to success with banks is to show past profitability, and to describe a well thought-out plan for future profits.

    “If you aren’t making a profit now, you must be able to tell the bank how you will change that in the short term, or you really won’t be able to get a loan,” he says.

    He also recommends that businesses start small in their loan requests.

    “If you need money for four trucks, ask for two,” Cloutier says. “The bigger the loan request, the harder it is to get it approved.”

    SBA loans

    Another way to find a bank loan is through the Small Business Administration, or SBA. The SBA can direct you to banks that offer loans guaranteed by the agency. This way, you’ll have the advantage of approaching banks specifically interested in lending to small businesses.

    Interested businesses should contact the SBA office nearest to them, which can be found on the agency’s website. Jeanne Hulit, the SBA’s acting administrator, urges businesses to seek a bank that is an experienced SBA lender.

    Banks granting SBA loans place increased emphasis on business plans, cash flow and profit forecasts in deciding whether to lend, she says. The SBA also can refer businesses to free counseling centers to improve their performance.

    Online opportunities

    Another source for loans is the Internet. There are several sites where businesses can seek alternative lenders, such as individuals and small companies.

    Interest rates are generally a little higher than what a bank will charge, but it’s much less than what you’ll have to pay on many credit cards.

    Look around at different sites, some may charge a one-time fee to list your business, while others are free to list but might have fees reflected in loan rates.

    If you’re going to list your company on one of these sites, describe your business in clear and concise language.

    Lastly, make sure to investigate the company you are looking to post your business on. These kinds of companies were successful in 2008 and during the recession, but times have changed. Many have since gone out of business. Before paying for anything, make sure the company is legit.


    Tags : , , ,

    How to Get a Business Loan, getting a business loan.#Getting #a #business #loan


    How to Get a Business Loan

    Getting a business loan

    Getting a business loan

    Sooner or later most small businesses need to know how to get a business loan, whether to get the operating capital for business startup or to finance an expansion. But whether you re approaching a bank or a friend for a business loan the lender will have the same expectations.

    You can greatly increase your chances of successfully securing a loan by being prepared to meet those expectations.

    Put yourself on the other side of the desk for a moment.

    If someone asked you for a small business loan, you d want to know exactly why he or she wanted the money and what the chances were that he or she would repay the loan in full and on time.

    The key to getting a loan is preparation. First, gather together the documents that will help persuade the lender that a business loan is necessary and that you are a good risk.

    Documents Needed

    • A business plan – The business plan shows the lender not only why you want a small business loan but what you plan to do with the money. Don t have one yet? Here s a simple business plan template you can use.
    • Cash flow projections – What s the first question any lender has? Will you be able to repay the loan? Your business s cash flow projections give lenders concrete financial data that they can use to assess this risk.
    • A statement of your personal financial status – A list of your personal assets and debts to give the lender a fuller financial picture.

    You may also need these documents:

    • Past business tax returns – If your business is established and you have past business tax returns, it s a good idea to take them with you. They ll give the lender a better idea of how your business is doing financially.
    • A credit rating report – Basically, you establish a credit rating by buying things on credit and paying back the money you owe. Your loan repayment history plays a big part in establishing your credit rating, but all your credit dealings make up the history that s used to determine your credit rating.

    It s not necessary that you include a credit report with your small business loan application; it s easy enough for potential lenders to check your credit rating. But if you don t know what your credit rating is or suspect your credit rating is tarnished, you may want to get one.

    In the U.S., you can get a free credit report once a year through the website AnnualCreditReport.com. For more information, see How to Get a Free Credit Report.

    In Canada, you can get a free credit report by contacting one of the two credit reporting agencies, TransUnion or EquiFax Canada. To receive your free credit report you will need to mail or fax one of these companies a request along with copies of two pieces of I.D. Note that you will not be able to get a free credit report through the website of either company; you will be charged a fee for an online report. CreditKarma provides free online credit reports through much of Canada.

    The credit report you receive will include information on what to do if you find errors in the report. If you have a poor credit rating, you will want to take steps to repair your credit rating before trying to get a business loan.

    Making the Presentation to the Lender

    The next step in how to get a business loan is to persuade the lender that your business is viable and you are a good credit risk.

    You need to prepare in advance to make a winning loan presentation.

    Start by considering the lender s point of view. You want money. But he or she is most interested in the answers to these two questions: What are you going to do with the money? and Are you a good risk? , and to make a successful business loan presentation, you need to come up with the right answers to these two questions.

    Answering the first question means being fully conversant with all the details of your business plan and being able to point to the relevant financial statements, charts or graphs that will help convince the lender that you need the amount of money you re asking for to do what you want to do.

    Answering the second question means having already given some thought to the credit risk you represent to the lender and being ready to address their concerns.

    To get a small business loan, be prepared to tell your potential lender:

    • What collateral you have – Collateral refers to the tangible assets that you are willing to put up to secure the loan. These assets might be equipment, a house, a car – something of value that you own. If you fail to repay the loan, then the proceeds from the sale of the assets are used for repayment.
    • How much money you re personally willing to put into the business – Being willing to risk your own money shows the lender that you re committed to the enterprise.
    • Your expertise and/or experience in your chosen field – Because the success of your business is dependent on this to some degree, any potential lender will want to know more about you. Be prepared to talk about yourself when you apply for a small business loan – your background, your expertise, and even your aspirations.

    How to Get a Business Loan? Be Prepared

    Your chances of getting a business loan will be greatly improved if you have all your documents in order and are prepared to assuage the lender s concerns about loaning you the money. Think of it as a presentation to an important client or customer, and you ll have a better chance of success.

    Read more about getting a business loan:


    Tags : , , ,

    Financing Small Business Enterprises: Sources of Information (Business Reference Services, Library of Congress), financing

    Financing Small Business Enterprises: Sources of Information

    Table of Contents

    Image (left): Bills and coins

    Courtesy of Microsoft Corporation

    This revised brief is intended as a guide to representative sources of information on obtaining funding for both the newly formed and the expanding small business in the current economic environment. As such, the focus is on recently published books, current journal articles and online resources that will be of immediate, practical use to the practitioner. This revision includes sources on the latest trends in financing small businesses; new and creative ways of funding such as crowdfunding; revised editions of many popular sources on the subject; more internet resources than the original brief had; and a new section on directories that lists various online and print directories that would help an entrepreneur exploring financing options.

    Regardless of the specific financing techniques discussed, certain themes are repeated throughout many of the publications listed in this brief. Chief among these is the emphasis on the importance of self-assessment in determining what it takes to be an entrepreneur coupled with caveats to those seeking financing to expect rejection before finally winning approval of their financing proposals. To this end, there are frequent discussions of the importance of developing business and/or finance plans, of placing one’s existing business in the best financial position possible by effecting economies in the day-to-day operations of the company, and of obtaining competent legal and financial counsel. Likewise stress is placed on the importance of comparing one’s business or potential business to industry standards for the same or a related industry or to a public company in the field which has disclosed financial information.

    As these sources make plain, acquiring seed money and initial capital for start-up is likely to be only the beginning of an on-going process of financing one’s business; the need to acquire financing becomes especially critical for the survival of existing and growing companies as they move beyond seed money and start-up, and seek other types of financing. Moreover, while some businesses may go through only one or two phases in their search for financing, others may go through multiple phases of the process more than once as the company grows.

    While this brief is intended to provide accurate information regarding sources of information about obtaining financing for small business, it is not intended as a substitute for professional legal, accounting, or other services, and users of this guide are encouraged to obtain the services of competent professionals in these fields as needed.

    This guide is based on Business Brief compiled by: Angela Wilson, Carolyn Larson, Shari Jacobson of Business Reference Services, Humanities and Social Sciences Division, Library of Congress, Washington 1994

    Revised by Gulnar Nagashybayeva, Business Reference Specialist, with contributions from

    Fathin Achmad, Montgomery College Paul Peck Humanities Intern.


    Tags : , , ,

    Financing For Small Business – Payday Loans Online, financing a small business.#Financing #a #small

    financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business

    Financing a small business


    Tags : , , ,

    How to Get a Business Loan, get a business loan.#Get #a #business #loan


    How to Get a Business Loan

    Get a business loan

    Sooner or later most small businesses need to know how to get a business loan, whether to get the operating capital for business startup or to finance an expansion. But whether you re approaching a bank or a friend for a business loan the lender will have the same expectations.

    You can greatly increase your chances of successfully securing a loan by being prepared to meet those expectations.

    Put yourself on the other side of the desk for a moment.

    If someone asked you for a small business loan, you d want to know exactly why he or she wanted the money and what the chances were that he or she would repay the loan in full and on time.

    The key to getting a loan is preparation. First, gather together the documents that will help persuade the lender that a business loan is necessary and that you are a good risk.

    Documents Needed

    • A business plan – The business plan shows the lender not only why you want a small business loan but what you plan to do with the money. Don t have one yet? Here s a simple business plan template you can use.
    • Cash flow projections – What s the first question any lender has? Will you be able to repay the loan? Your business s cash flow projections give lenders concrete financial data that they can use to assess this risk.
    • A statement of your personal financial status – A list of your personal assets and debts to give the lender a fuller financial picture.

      You may also need these documents:

      • Past business tax returns – If your business is established and you have past business tax returns, it s a good idea to take them with you. They ll give the lender a better idea of how your business is doing financially.
      • A credit rating report – Basically, you establish a credit rating by buying things on credit and paying back the money you owe. Your loan repayment history plays a big part in establishing your credit rating, but all your credit dealings make up the history that s used to determine your credit rating.

      It s not necessary that you include a credit report with your small business loan application; it s easy enough for potential lenders to check your credit rating. But if you don t know what your credit rating is or suspect your credit rating is tarnished, you may want to get one.

      In the U.S., you can get a free credit report once a year through the website AnnualCreditReport.com. For more information, see How to Get a Free Credit Report.

      In Canada, you can get a free credit report by contacting one of the two credit reporting agencies, TransUnion or EquiFax Canada. To receive your free credit report you will need to mail or fax one of these companies a request along with copies of two pieces of I.D. Note that you will not be able to get a free credit report through the website of either company; you will be charged a fee for an online report. CreditKarma provides free online credit reports through much of Canada.

      The credit report you receive will include information on what to do if you find errors in the report. If you have a poor credit rating, you will want to take steps to repair your credit rating before trying to get a business loan.

      Making the Presentation to the Lender

      The next step in how to get a business loan is to persuade the lender that your business is viable and you are a good credit risk.

      You need to prepare in advance to make a winning loan presentation.

      Start by considering the lender s point of view. You want money. But he or she is most interested in the answers to these two questions: What are you going to do with the money? and Are you a good risk? , and to make a successful business loan presentation, you need to come up with the right answers to these two questions.

      Answering the first question means being fully conversant with all the details of your business plan and being able to point to the relevant financial statements, charts or graphs that will help convince the lender that you need the amount of money you re asking for to do what you want to do.

      Answering the second question means having already given some thought to the credit risk you represent to the lender and being ready to address their concerns.


      Tags : , , ,

      Startup Financing – Small Business Funding, financing a small business.#Financing #a #small #business


      Startup Business Financing

      Financing a small business

      Wouldn t you love to have a few million dollars to start your business? Me too! With a great idea and a great business plan, you probably feel almost entitled to get the funding you re seeking.

      The reality, though, is that for most entrepreneurs, you must prove your concept first before anyone will put up that kind of money. But most businesses require some sort of initial capital for things like inventory, marketing, physical facilities, incorporation expenses, etc.

      According to the U.S. Small Business Administration (SBA), While poor management is cited most frequently as the reason businesses fail, inadequate or ill-timed financing is a close second. Sometimes it comes down to simple cash flow–many companies have closed their doors because they just couldn t make it another few months until the money came in.

      When exploring your funding options, there are several factors to consider:

      • Are your needs short-term or long-term? How quickly will you be able to pay back the loan or provide a return on their investment?
      • Is the money for operating expenses or for capital expenditures that will become assets, such as equipment or real estate?
      • Do you need all the money now or in smaller pieces over several months?
      • Are you willing to assume all the risk if your company doesn t succeed, or do you want someone to share the risk?

      The answers to these questions will help you prioritize the many funding options available.

      • Debt financing – You borrow the money and agree to pay it back in a particular time frame at a set interest rate. You owe the money whether your venture succeeds or not. Bank loans are what most people typically think of as debt financing, but we will explore many other options below.

      • Equity financing – You sell partial ownership of your company in exchange for cash. The investors assume all (or most) of the risk–if the company fails, they lose their money. But if it succeeds, they typically make a much greater return on their investment than interest rates. In other words, equity financing is far more expensive if your company is successful, but far less expensive if it isn t.

      Because investors take on a much higher risk than lenders, they are typically far more involved in your company. This can be a mixed blessing. They will likely offer advice and connections to help grow your business. But if their plan is to exit your company in 2-3 years with a substantial return on their investment, and your motivation is the long-term sustainable growth of the company, you may find yourself at odds with them as the company grows. Be careful not to give up too much control of your company.

      Let s take a closer look at the many options available for startups.

      Friends and family are still your best source for both loans and equity deals. They are typically less stringent regarding your credit and their expected return on investment. One caveat: structure the deal with the same legal rigor you would with anyone else or it may create problems down the road when you look for additional financing.

      Prepare a business plan and formal documents–you ll both feel better, and it s good practice for later.

      Credit cards are a great tool for cash flow management, assuming you use them just for that and not for long-term financing. Keep one or two cards with no balance on it and pay it off every month to give yourself a 30 to 60-day float with no interest. And the low introductory rates on some cards make them some of the cheapest money around. Managed well, they re extremely effective; managed poorly, they re extremely expensive.


      Tags : , , ,