Tag: Loans

Where to Find Smart Short-Term Business Loans #business #yellow #pages


#short term business loans

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Where to Find Smart Short-Term Business Loans

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Short-term business loans can get you the funds you need to overcome cash flow gaps, handle emergencies and unexpected expenses or finance a small expansion.

These loans and lines of credit typically come in amounts from $5,000 to $250,000, carry short repayment terms of a few months to several years, have looser qualifications than long-term loans and provide cash quickly.

Because short-term business loans generally have high borrowing costs, the smartest approach is to choose financing with the lowest annual percentage rate you can qualify for. Lines of credit are more flexible and generally have shorter repayment periods, while loans tend to offer a longer term.

Repaying a short-term business loan on time can help you qualify for a long-term business loan in the future. Long-term loans typically come in amounts from $250,000 to $1 million or more, are less expensive and have a repayment period of five to 15 years or longer, making them better suited to a real estate purchase, business acquisition or debt refinancing.

Short-term lines of credit: Kabbage and Dealstruck

With Kabbage’s line of credit, you borrow only the money you need and pay fees just on the money you borrow. That flexibility makes it a better option for managing cash flow than for a larger expense such as an expansion. You repay each draw on the line of credit over six or 12 months.

It’s also fairly easy to qualify (take a look at minimum qualifications below) and a good option for borrowers with bad credit. Although Kabbage does check your credit scores, it doesn’t weigh them as heavily as other factors, such as your average monthly revenue.

The pitfalls of short-term business loans

Of course, there are a few disadvantages to short-term business loans that small-business owners should keep in mind:

Higher cost: They typically carry a higher APR — the total annual cost of borrowing, including all fees and interest — than long-term loans. That’s due to their shorter repayment period, faster funding, looser qualifications (lower credit score and revenue requirements) and the fact that many are unsecured business loans. which don’t require collateral.

More frequent repayments: Lenders may require you to make loan payments daily or weekly as opposed to monthly. Although these payments are smaller, they can be an issue for businesses that have uneven sales or those that don’t always hold much cash in a bank account. You’ll have to make sure you have enough money in your account to make the payments at all times, or you’ll risk incurring fees or defaulting on the loan.

Risk of debt trap: The speed and ease of short-term business loans can become addictive. Instead of repaying the debt in full, business owners may be enticed to refinance and roll over the debt into a new loan. But this can result in a debt trap: continual refinancing just to keep up with payments. This is a common issue with merchant cash advances. a costly form of short-term financing that can carry an APR over 300%. If you have several high-interest small-business loans, business debt consolidation may be the solution you need.

Find and compare the best small-business loans

NerdWallet has created a comparison tool of the best small-business loans to meet your needs and goals. We gauged lender trustworthiness, market scope and user experience, among other factors, and arranged them by categories that include your revenue and how long you’ve been in business.

This article was updated June 21, 2016. It was originally published Jan. 12, 2016.

To get more information about funding options and compare them for your small business, visit NerdWallet’s small-business loans tool. For free, personalized answers to questions about financing your business, visit the Small Business section of NerdWallet’s Ask an Advisor page.

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Lender reviews

See how different lenders stack up in NerdWallet’s expert reviews

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2016 NerdWallet, Inc. All Rights Reserved

Disclaimer: NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions. Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.

Additionally, this site may be compensated through third party advertisers. However, the results of our comparison tools, blog content and editorial reviews are based on objective analysis. For more information, please see our Advertiser Disclosure .


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SBA Loans #business #lists


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If you’re planning to start a business or expand an existing business, you might need financing help. SBA participates in a number of loan programs designed for business owners who may have trouble qualifying for a traditional bank loan.

To start the process, you should visit a local bank or lending institution that participates in SBA programs. SBA loan applications are structured to meet SBA requirements, so that the loan is eligible for an SBA guarantee. This guarantee represents the portion of the loan that SBA will repay to the lender if you default on your loan payments.

The SBA Loan Application Checklist provides a listing of forms and documents you and your lender will need to create a loan package to submit to SBA.

The following are direct links to information about commonly requested SBA programs:

Starting and Expanding Businesses

Gives 7(a) loans to eligible borrowers for starting, acquiring and expanding a small business. This type of loan is the most basic and the most used within SBA’s business loan programs. Borrowers must apply through a participating lender institution.

Provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings.

Offers very small loans to start-up, newly established or growing small business concerns. SBA makes funds available to nonprofit community based lenders which, in turn, make loans to eligible borrowers in amounts up to a maximum of $50,000. Applications are submitted to the local intermediary and all credit decisions are made on the local level.

Disaster Loans

Provide financial assistance to victims of disasters or to individuals in a declared disaster area. You may be eligible for this type of loan even if you don’t own a business.

Assist small businesses, small agricultural cooperatives and nonprofit organizations as they recover from economic losses resulting from physical disaster or an agricultural production disaster.

Export Assistance Loans

Provide exporters and lenders with a streamlined method of obtaining financing for loans and lines of credit up to $500,000. Lenders use their own credit decision process and loan documentation; exporters get access to their funds faster. SBA provides an expedited eligibility review with a response in less than 24 hours.

Offers loans targeted at businesses that are able to generate export sales but need additional working capital to support these opportunities.

Gives term loans that are designed for businesses that plan to start/continue exporting or those that that have been adversely affected by competition from imports. The proceeds of the loan must enable the borrower to be in a better position to compete.

Veteran and Military Community Loans

Offers funds to eligible small businesses to meet ordinary and necessary operating expenses that could have been met, but are unable to meet, because an essential employee was “called-up” to active duty in their role as a military reservist.

Special Purpose Loans

Help small businesses meet their short-term and cyclical working-capital needs through the SBA umbrella program called CAPLines.

Provides financing to eligible small businesses for the planning, design or installation of a pollution control facility.

CAIP is a program established to assist U.S. companies that are doing business in areas of the country that have been negatively affected by the North American Free Trade Agreement (NAFTA ). To be eligible, a business must reside in a county noted as being negatively affected by NAFTA, based on job losses and the unemployment rate of the county.


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The Best Small Business Loans of 2016 #business #email


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Small Business Loans Reviews

How to Choose a Small Business Loan
The top performers in our review are SmartBiz. the Gold Award winner; Grow America Fund. the Silver Award winner; and Wells Fargo. the Bronze Award winner. Here’s more on choosing a small business loan to meet your needs, along with detail on how we arrived at our ranking of 10 loans.

As a small business owner, funding obtained through a small business loan enables you to take advantage of profitable opportunities. You may need the funds to expand your business by hiring additional staff to increase your productivity or to purchase equipment or machinery that broadens the range of products you offer. You may need to purchase inventory to stock up for your busy season or jump on a discount offered by a vendor. You may even need working capital to repair or replace old or damaged equipment or to sustain your business during your off season.

If your credit is good, your finances are in order and you have time to apply for a loan backed by the Small Business Administration (SBA), you can often obtain the best rates. If a fast turnaround is critical or if your credit needs improving, alternative lending can help you procure the funding you need. Peer-to-peer lending is another option to consider if your credit isn’t quite good enough for a bank loan or if the amount of money that you want to borrow is smaller than banks want to lend. Merchant cash advance lenders can provide you with a useful solution if you need cash quickly, and it’s convenient for you to repay the loan in small daily repayments that the lender automatically subtracts from your credit card sales.

Typically, SBA loans, available through banks and non-bank lenders, offer the best rates and are the first resource that you should consider. These loans are desirable because they carry lower interest rates and favorable terms, which lenders are willing to extend because the federal government assumes a large portion of the risk by guaranteeing a percentage of the loan through the Small Business Administration. The SBA also provides resources can help women, veterans and minorities obtain small business loans. The SBA 7(a) loan is the most common loan available and can range from a few thousand dollars up to five million dollars with repayment terms that can span many years.

The disadvantage of using federal money for starting a new small business with an SBA loan is that it may require you to submit more paperwork than many of your other loan options, which can be time-consuming. Although the lenders we selected for our review are preferred SBA lenders with a nationwide reach, also consider your local and regional banks, as they also offer SBA loans and may be good resources for you, especially if you’ve already established relationships with them.

Small Business Loans: What We Evaluated, What We Found
We looked for lenders that provide SBA 7(a) loans nationwide and that offer the most desirable amounts and a range of terms. We researched the company online and then contacted each lender via email and phone to gather and verify information about its rates and terms. Some key differentiators include the loan amounts offered by each lender, the fees and costs they charge, and how long it takes to get your loan approved and funded.

Loan Size: Amounts Vary by Lender
Although the SBA doesn’t set a minimum amount on loans and caps them at $5,000,000, all lenders set a minimum amount and some also set their own maximum amount. Because of the paperwork required with an SBA 7(a) loan, most lenders prefer to offer larger loans. SmartBiz is the exception, as it caters to small businesses that want smaller loans and it offers the smallest loans in our review, starting at $5,000 and capping out at $350,000, which is around the minimum amount that some lenders are willing to consider. The lender with the highest minimum, starting at $500,000, is CapitalSpring .

Fees Costs: Although Regulated, There Is Variance
Even though SBA 7(a) loans are highly regulated, there is some variance in the fees and costs that lenders are permitted to charge. Packaging fees vary the most, as some lenders, like the Grow American Fund, Wells Fargo, Chase and Ridgestone Bank. don’t charge them at all, while others may charge several thousand dollars. Almost all lenders charge closing costs, which typically bundle due diligence expenses, such as those for appraisals and lawyers’ fees. Because closing costs vary from loan to loan, you should verify with your lender what your closing costs cover and the exact amount you can expect to pay.

Approval Funding Time: A Wide Variation
SBA 7(a) loans are notorious for taking a long time to obtain, but the amount of time it takes lenders to approve and fund a loan varies widely. After you submit you completed application and all accompanying documents, five to seven days is an average amount of time for approval. Most lenders agree that the process is faster when the borrower is motivated and responds quickly when additional information is required. SmartBiz has a faster turnaround time than most because it utilizes sophisticated technology to speed up the process.

What Else Is Important in Selecting a Small Business Loan?
Other factors that influence your overall satisfaction with a loan are the interest rate and whether the loan is secured or unsecured. As you search for the best small business loan, it’s critical that you understand every aspect of the deal and that you thoroughly read and understand every document you sign so that you know precisely what you’re getting and what your obligations and responsibilities are. Consider the following factors as you research your loans options. You can also read articles about small business loans to broaden your understanding of the subject.

Interest Rate Range
The interest rate is the percentage of the amount of money you borrowed that you repay the lender. Although the SBA regulates the range of interest rates that the lender can charge you, it’s influenced by a variety of factors, including your business’s industry, the amount of time you’ve been in business, your business and personal credit history, and the overall health of your business. Most lenders charge a couple of percentage points above prime, which is the published percentage that seven of the 10 largest American banks charge their best customers. The Grow America Fund has the lowest interest rates in our review.

Secured or Unsecured
Most small business loans require you to leverage business assets, such as real estate or equipment, as collateral against the loan in order to minimize the lender’s risk. Most also require a personal guarantee from all individuals owning 20% or more of the business. You may be required to put up personal assets if you don’t have sufficient collateral from your business, particularly if the loan you’re procuring is for a startup. Take care to protect your home and personal savings when entering into a loan. Unsecured business loans are less common, though they are available for SBA 7(a) loans under $25,000.

In the above matrix, you can find information on other additional small business loan features, including details on noteworthy features and the lenders’ status with the SBA. You can also find information on down payments, the time it takes to receive your funds after your application is approved and the availability of customer support resources.

Small Business Loans: Our Verdict Recommendations
The best SBA 7(a) lender we reviewed is SmartBiz, which earned the Top Ten Reviews Gold Award for its ability to streamline the process and its willingness to offer loans in amounts smaller than most other lenders are interested in; these qualities make it the most accessible lender in our review. The Grow America Fund earned the Top Ten Reviews Silver Award because it offers the lowest interest rate in our review and specializes in helping small business owners who are women or minorities or who have businesses in underserved communities obtain funding. Likewise, CRF helps small businesses that are owned by women, minorities and veterans and that can provide jobs in low-income areas. Wells Fargo earned the Top Ten Reviews Bronze award for overall excellence as an SBA 7(a) lender, as it gives the most money to the most small businesses nationwide.

Getting a business loan is a significant undertaking for a small business, and it’s important that you take every reasonable step to ensure that it’s the best decision for your company. Shop around for the best interest rates and small business loan terms. Pay particular attention to fees and penalties and don’t be afraid to ask the lender to explain them to you. Request the fee structure and terms in writing and read your contract thoroughly before you sign it to ensure that you understand the details of your loan and your repayment responsibilities.

Top Ten Reviews strives to appraise all services and products using hands-on evaluation and research that, in so far as possible, replicates the careful exploratory process of a typical small business owner. The lenders we evaluated had no influence or input over our testing methodology, nor was the evaluation process provided to any of them in more detail than is publically available by reading our reviews, nor were the results of our research provided to the lenders prior to publication.

Disclaimer: The interest rates listed are reflective of the date this review was last updated.


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Unsecured Business Loans for Collateral-Free Cash #minority #small #business #grants


#unsecured business loans

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Unsecured Business Loans for Collateral-Free Cash

You can trust that we maintain strict editorial integrity in our writing and assessments; however, we receive compensation when you click on links to products from our partners and get approved. Here’s how we make money .

An unsecured business loan has an attractive advantage over a secured loan: You don’t have to put up collateral, such as your home, your business equipment or inventory. So if your small business goes south and you can’t repay the loan, the lender cannot seize your personal or business assets.

Unsecured loans, however, will likely carry a higher APR than secured business loans, but they typically come with higher approval rates and faster funding. Although you don’t need collateral to qualify, you may still need strong business revenue, several years of operating history and fair or better personal credit — though this will depend on the individual lender’s requirements.

Here are five alternative lenders offering unsecured business loans or lines of credit of up to $100,000.

JUMP TO OUR RECOMMENDATIONS:

Lending Club: Lowest borrowing costs among online lenders for unsecured term loans and lines of credit.

OnDeck: Solid choice for an unsecured line of credit for working capital needs and handling unexpected expenses.

StreetShares: Good choice if you have strong credit and need working capital at a competitive APR.

Kabbage: Can be a smart option if you have bad credit and need working capital fast.

Fundbox: Sound choice if you have unpaid customer invoices and want to avoid a credit check.

Unsecured business loans: Summary of funding options.

If you want a term loan or line of credit with low rates: Lending Club

Lending Club’s APR ranges from 8% to 32%, making its loans and lines of credit slightly more expensive than SBA loans but the lowest among unsecured funding options online.

Lending Club also has less stringent requirements than banks, which typically require excellent personal credit and collateral to back loans. The lender requires a minimum 600 credit score, but collateral is only needed on loans and lines of greater than $100,000.

Before you apply for a Lending Club line of credit, find out whether you meet the minimum qualifications.

  • 600+ personal credit score.
  • 2+ years in business.
  • $75,000+ in annual revenue.
  • Own at least 20% of the business.
  • No recent bankruptcies or tax liens.
  • Provide collateral for loans and lines of credit of more than $100,000.

Lending Club is currently unavailable to borrowers in Iowa and Idaho.

If you need cash for working capital or unexpected expenses: OnDeck

OnDeck’s unsecured business line of credit is a good option for business owners who need working capital to manage cash flow or handle unexpected expenses. OnDeck’s APR is slightly higher than Lending Club’s borrowing costs, but requirements are less stringent. To qualify, you need at least a 600 personal credit score, nine months in business and $75,000 in annual revenue.
Each draw on the line of credit is repaid weekly over a period of six months, and borrowers can choose to repay sooner to save on interest with no prepayment penalties.

OnDeck’s line of credit doesn’t require a lien on your business’s assets, although you still have to sign a personal guarantee, which makes you personally liable for repaying the debt if your business fails to.

Before you apply for a OnDeck line of credit, find out whether you meet the lender s minimum qualifications.

  • 600+ personal credit score.
  • 9+ months in business.
  • $75,000+ in annual revenue.
  • No bankruptcies in the last two years.
  • Personal guarantee required.

If you need working capital and have good credit: StreetShares

When you have strong credit and need working capital at a competitive rate, StreetShares is a good option but the maximum loan or line of credit you can qualify for is 20% of your annual revenue. To qualify for StreetShares, you need a personal credit score of 600 or more, a year in business and $25,000 in revenue. The lender offers term loans and lines of credit of up to $100,000, with no collateral required. The possible drawback is the 20% cap: For example, if your business makes $300,000 per year, you can qualify for a loan of up to $60,000.

Before you apply for a StreetShares loan, find out whether you meet the lender s minimum qualifications.

  • 600+ personal credit score.
  • 1+ year in business.
  • $25,000+ in annual revenue.*
  • No bankruptcies in the past three years.
  • No current tax liens or collections (unless you have proper documentation).

You only need 6 months in business if you have $100,000+ in revenue.
StreetShares is currently unavailable to borrowers in North Dakota or South Dakota.

If you need working capital and have bad credit: Kabbage

Kabbage is a good option for borrowers with bad credit who need fast cash for short-term expenses; the company does not have a minimum credit score to qualify.

Funding is fast: Once approved, you can get access to funds immediately or, at most, within a few days. You’ll pay more for it, however, as Kabbage’s loan ranges from 32% to 108% APR. With a short repayment time frame and a higher APR, it’s likely not your best option for a large expense, such a new piece of expensive equipment for your company. Keep in mind that each new draw from the line starts its own six- or 12-month term with its own fee structure, so the cost of borrowing will increase.

Before you apply for a Kabbage loan, find out whether you meet the minimum qualifications.

  • No minimum personal credit score required.
  • 1+ year in business.
  • $50,000+ in annual revenue.
  • A business checking or online payment platform required.

If you have unpaid invoices and want to avoid a credit check: Fundbox

Fundbox is a good option if your business has unpaid customer invoices up to $100,000. The lender provides an unsecured cash advance (no collateral or personal guarantee required) for up to 100% of the value of your invoices, starting at $500. The company provides instant approval, with funding typically in one to three business days.

After receiving the cash advance, you’ll repay it in 12 equal weekly installments, plus a fee. If your customer ends up paying you before then, you can repay the advance in full to save on fees, with no penalties.

Before you apply for Fundbox’s invoice financing, find out whether you meet the lender s minimum qualifications.

  • No minimum personal credit score required.
  • No minimum annual revenue required.
  • Must use online accounting software that can link to Fundbox (such as Quickbooks, FreshBooks, Harvest).

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We want to hear from you and encourage a lively discussion among our users. Please help us keep our site clean and safe by following our posting guidelines. and avoid disclosing personal or sensitive information such as bank account or phone numbers. Any comments posted under NerdWallet’s official account are not reviewed or endorsed by representatives of financial institutions affiliated with the reviewed products, unless explicitly stated otherwise.

2016 NerdWallet, Inc. All Rights Reserved

Disclaimer: NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions. Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.

Additionally, this site may be compensated through third party advertisers. However, the results of our comparison tools, blog content and editorial reviews are based on objective analysis. For more information, please see our Advertiser Disclosure .


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Bad Credit Business Loans #business #technology


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Bad Credit Business Loans

Grow Your Business Even with Poor Credit

A poor credit history severely limits your chances of securing a conventional bank business loan. Banks usually deem a business with bad credit history too much of a risk. Even if you somehow manage to convince them of the viability and growth potential of your business, it is highly unlikely that you will be able to acquire funds through traditional means. But, there are still non-traditional lenders who might be willing to offer their assistance. The truth is that bad credit business loans can be found, but the question you must ask yourself is if it is right for your business.

Business Funding Solutions for Businesses with Bad Credit

It is true that bad credit can discourage a traditional lender, but there is still hope for securing financing for your business. Boost Capital offers small business loans that do not carry the burden of a perfect credit history requirement. Your total monthly gross sales and ability to generate revenue plays a more significant role in your approval for funding than your credit score.

A small business loan from Boost Capital could be the answer you have been looking for. This business financing solution has huge advantages for small business owners.

  • Funds are available to you even with poor/bad credit history
  • No need for business plans or extensive financial records
  • Repayment is dependent on your total monthly gross sales
  • Use these funds however you see fit for your business

An important feature of a small business loan is that it does not show up on your credit report as a loan from the bank would. This means that you are free to pursue other financing opportunities.

Put aside your worries about bad credit. Business loans from the bank are not your only option. The flexibility of a small business loan from Boost Capital could be exactly the business financing solution you have been searching for.

For more information on bad credit business loans, click here or call 0800 138 9080 today!

Need a Business Loan?


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Government Grants and Loans Opportunities for Women #registering #a #business


#business grants for women

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The Top 3 Financial Resources for Women Entrepreneurs

According to a recent article written by Bernadeen McLeod, Women entrepreneurs face unique challenges when starting their own businesses. Lack of adequate information, especially related to small business financing, and a lack of female mentors are often cited as the two most important barriers. Despite these challenges women entrepreneurs are one of the fastest growing business segments in Canada.

  • Women-run companies create new jobs 4 times faster than the national average
  • Women create companies at double the national average
  • The number of women with incorporated businesses more than doubled in the past decade

To continue this accelerated growth and to allow women entrepreneurs to remain competitive there are a number of programs available across Canada that are developed specifically to assist women in starting and running successful businesses.

RBC’s Women Entrepreneurs Programs for Small Business Owners

The Royal Bank of Canada (RBC) has specifically developed advice and services to meet the needs of women entrepreneurs. Financing is available through the bank as well as additional resources and expertise. Through their Small Business Financial Services Resource Centre women entrepreneurs can access a wide variety of information and assistance in starting and expanding a business as well as succession planning for their retirement. They also provide one-on-one strategic advising for women entrepreneurs to ensure that their businesses are successful.

RBC has also developed the RBC Canadian Women Entrepreneur Awards allowing female entrepreneurs to celebrate one another and network. By celebrating women entrepreneurs RBC hopes to provide significant profile of the importance of female entrepreneurs on the Canadian economy.

Ontario Business Loans: Micro-lending for Women Entrepreneurs

Update. Micro-loan programs for women have been expanded. Accessing the link below will assist women in Ontario to find a micro-loan program for their region.

In January 2013, the Ontario government released $760,000 for a two year program to assist more than 800 low-income women become entrepreneurs. The initiative led by the Women’s Issues Minister Laurel Broten, includes financial training and microloans of $500 to $5000. This funding has been given to a number of community organizations across Ontario to support micro-lending programs and business advisory programs to low-income women looking to start their own small businesses.

Small Business Networks for Women Entrepreneurs

In a number of Canadian provinces including Saskatchewan. Alberta and British Columbia have Women Entrepreneur or Women Enterprise Centres. These organizations provide women starting or growing their small businesses with business services and resources to ensure they are successful. Their teams are trained to understand and related to the unique circumstanced of women business owners and typically include mentoring from other women entrepreneurs.

Mentor Works Supports Small Business Owners with Free, Valuable Information on Government Funding Programs

In order to be successful, women entrepreneurs need access to up-to-date information and resources. Mentor Works provides information on popular government funding programs including small business grants and loans. To stay up-to-date on Canadian government funding and business news, you may subscribe to our Small Business Funding Newsletter . We also provide a variety of tools, tips, and support services for female-led startups seeking business funding via our Startup Resources page.


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Small Business Loans for Women #global #business


#business loans for women

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Small Business Loans for Women

In today’s changing economy, women are making a name for themselves as entrepreneurs, thanks to small business loans for women. However, the dream to own a business is just the beginning. Small businesses for women is a rapidly growing segment of the economy with increased competition. Being successful requires patience, dedication and hard work, but most importantly, the financial reserves to set the wheels in motion.

According to the National Women’s Business Council (NWBC), there were 7.8 million businesses owned by women in America in 2007. Of these, about 11.7% employ full-time workers, generating average annual receipts of over $1 million. The total revenue generated by all the women-owned businesses across the country (not considering farm-based business) has increased to $1.2 trillion. Women-owned businesses make up about 52% of all the businesses in the social and healthcare assistance arena.

Why Business Loans are Important

Starting a business requires balancing your family and/or personal budget with a new, often larger budget for your business. Procuring a small business loan is pivotal to most businesses’ success. The Small Business Administration (SBA) helps people gather the resources necessary, and guides you through the completion of the loan application. Credit unions, banks, and other legitimate lenders back the loans.

Applying for the Loan

The SBA has designated different loan programs specifically for women. The Office of Women’s Business Owners (OWBO) sets out rules that are mostly the same for every loan or grant: you’ll need a good business credit report (with any of the three business reporting agencies) and a solid business plan that instills confidence in the lender. But what is life without a little risk? Some of the best companies in the world were started on shaky ground, right? True, but it’s also true that a low-risk business venture has a better chance of obtaining a coveted small business loan.

Looking for Advice

In order to help women, various organizations operate day and night, with the sole purpose of helping them realize their dreams and ambitions. Moreover, these organizations provide complete information regarding various loan programs, and how to apply for them:

Any business venture requires you to be well informed about the competition, such as the number of similar ventures established, their success-to-failure ratio, and so on. The way to convince lenders who provide small business loans for women is by showing them that you possess the drive to overcome adversity. Having that fighting spirit matters.

You just learned about: Small Business Loans for Women Help Level the Playing Field

For more information, check out this related resource: Funding a Business


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SBA-Guaranteed Loans #current #business #news


#guaranteed business loans

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Getting Started With a Loan From the Small Business Administration

What it is: These are U.S. government-backed term loans that are available at most banks and commercial lending institutions In any given year, the SBA can guarantee tens of billions of dollars-worth of loans that support tens of thousands of small businesses.

The SBA s primary lending program — the 7(a) Loan Program — guarantees as much as 85 percent of loans up to $150,000 and 75 percent of loans of more than $150,000. The maximum loan amount is $5 million.

Loan terms can last up to 25 years for real estate, up to 10 years for equipment (as long as the equipment is likely to stay useful during that time) and usually up to seven years for working capital. Interest rates are also competitive because the SBA limits the interest rate spread that banks are able to offer on the loans.

Upside: The SBA guarantee gives banks some comfort room to approve loans or allow borrowers to repay loans over a longer period of time. You might want to consider an SBA loan if you are looking for a loan with a longer term and lower payments — or have loan application barriers related to inadequate collateral or limited operating history.

Downside: Even though the SBA has tried to make it better, the time-consuming paperwork and red tape surrounding SBA loans is legendary. You might move mountains and still not prove that you have the cash flow required for a 7(a). One potential solution might be to find a bank participating in the SBA Express program. which promises a 36-hour turnaround in return for only guaranteeing half of a loan s value. The maximum loan amount of $350,000 is also a fraction of the 7(a).

How to get it: Large U.S. banks such as San Francisco-based Wells Fargo and Minneapolis-based U.S. Bank are also some of the most active SBA lenders .

However, it might be worth it to check out local community banks with a focus on business lending. Such banks are a good bet in general for businesses financing because they have more leeway when it comes to approving loans, and their officers can be a wellspring of business financing advice.

Want to find a bank with a niche in SBA lending? You can find out which area banks have the highest SBA loan volume by doing a search on the SBA website.

While shopping around among banks, ask them if they belong to the SBA s Preferred Lenders Program, in which the SBA delegates much of the decision making and loan servicing to banks that have shown themselves proficient in processing SBA-guaranteed loans. Such banks will have more SBA loan expertise, and should hopefully be able to better navigate the paperwork with you.

While 7(a) is the SBA s primary loan program, the agency supports other types of small business financing:

The CDC/504 Program provides long-term, fixed-rate financing for businesses acquiring new facilities or modernizing existing locations. The SBA designates particular nonprofits as Certified Development Companies (CDCs) that are able to provide CDC/504 loans — entirely guaranteed by the SBA — for 40 percent of project costs. The limit on the SBA s portion is $5 million. Private sector lenders finance half of the cost of the project, with the business kicking in 10 percent out of pocket.

The Microloan Program is meant to increase the availability of very small loans to small-business borrowers. Nonprofit community-based organizations serve as intermediaries. Loans can reach to up to $50,000, with an average microloan of about $13,000.

The SBA also helps provide advice to small businesses, and aids them in efforts to secure government contracts.


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How do business loans work? #small #business #crm


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How do business loans work?

To explain how business loans work, I think it’s best to first talk about the two main types of lenders to business owners: traditional banks (Chase, Wells Fargo, Bank of America) and online lenders (OnDeck, Lending Club, Funding Club).

Traditional bank loans can be your lowest-rate option, if you qualify. But bank loans are extremely hard to come by — 4 out of 5 business owners are turned away by banks. And bank loans often exclude certain industries, take far longer to process, and can only be used for limited purposes.

With online lenders, you have several different kinds of loans available. They have a quick turnaround, are available to more business owners, and have a wide variety of options.

Here are the main types of loans available and a quick explanation on how each works:

  1. SBA Loan: This loan is guaranteed by the Small Business Administration (government-guaranteed), a federal agency that helps foster entrepreneurship. The loan is generally longer term, and has a reasonable interest rate. You are lent money, which you repay over a set period of time.
  2. Traditional Term Loan: A term loan is similar to a traditional loan you would obtain from a bank. You are lent a set amount which you pay back over a set period of time.
  3. Equipment Financing: You are lent money for the purpose of purchasing equipment for your business. The equipment serves as collateral for the loan. It’s the like buying a car — you are lent money up front to buy the asset, then you pay back the value borrowed over time.
  4. Business Line of Credit: You are given access to a credit limit that you can draw from whenever you need the money. It gives you a cushion to tap into, and you only pay interest on funds drawn.
  5. Invoice Financing: Invoice financing allows you to sell your outstanding invoices to a lender, who will front you money in exchange. While you lose a portion of your potential profits, you are able to get cash immediately rather than waiting on your customers to pay.
  6. Short Term Business Loan: A term loan with a very quick payback period, as short as 3 months.
  7. Merchant Cash Advance: The lender gives you cash up front in exchange for a percent of daily credit card sales for a set future period.

If you want more info on how each type of loan works, we put together a comprehensive guide on our site: Which Business Loan is Best For You?

Hope this helps!

I work as a small business finance expert for Yellowstone Capital, a small business lender that has helped over 250,000 small business owners secure more than $500 million in funding for their businesses.

Banks look at many aspects of the company, as well as the business owner, before making a decision on whether to extend a line of credit.

Business: Revenue, profit, business plan, investors, outstanding loans

Owner: Credit history/score, outstanding debt, previous business history, personal referrals, current employment

You have to make sure that you have everything in order before you go in to apply for a loan, especially if your business is just getting off the ground.

Of course this leaves out the approval process, and where to go if you aren t able to secure a loan due to credit issues, but this covers at least how to choose the right bank if you go that route.

Here’s our own take on your question that might help shed a little more light on the topic:

Here’s the official Wikipedia entry on the subject:

Here’s a video that helps explain why small business loans can be so difficult to get approved for at traditional lending institutions like banks and credit unions:

If you have any more questions, please feel free to read any of our blog posts on the topic of small business loans.

Tony D. and the Yellowstone Team


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Small Business Loans #business #internships


#business loans

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Small Business Loans

Small business loans provide your business with the cash it needs to expand, increase or replace inventory, advertise, consolidate debt, or even pay taxes. We do not offer “one-size-fits-all” lending. We work with you to make sure you understand all your options and help you to choose a loan that makes sense for your business.

Custom Tailored Loans that s our policy.

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Why get a small business loan with National Funding?

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Variety of Loan Payment Options with National Funding

One of our most popular financial solutions, with unique features, including smaller, more frequent payments instead of one, lump-sum monthly payment.

With our weekday fixed payment plan, you can make automatic payments with fixed amounts each weekday. It’s perfect for business owners who prefer predictable, pre-set payments while avoiding the one, large, monthly lump-sum payment that often puts a strain on working capital .

How To Apply For A Small Business Loan

Small business owners who find it difficult to get small business loans from traditional lenders, like banks, may find it easier to acquire a business loan from an alternative lender, like National Funding. Learn how to apply for a small business loan.

How to Apply for a Small Business Loan.

Applying for a business loan can be an intimidating and complicated process.

Traditional lenders have a history of playing favorites, and require heaps of paperwork, such as:
• Credit history or credit score of the parties applying
• All financial statements
• Tax Returns
• Financial Reporting
• Projections for at least a year
• And much more
This leads to confusion and delays of your business loan with little chance of approval.
Over the headache and rejection? National Funding is here to help!

Why borrow from us?
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• And it’s easier to qualify for than loans from traditional lenders

National Funding offers:
• Loans up to $500,000
• Loans requiring no collateral
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Call National Funding at (888) 733-2383 or visit nationalfunding.com to apply today! That’s it!
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We needed working capital to purchase a work truck, so we contacted National Funding. The customer care exceeded my expectations and the loan fit into our budget. The National Funding representative we worked with was extremely helpful, polite, and professional. We would recommend National Funding to anyone.

We needed working capital to purchase a work truck, so we contacted National Funding. The customer care exceeded my expectations and the loan fit into our budget. The National Funding representative we worked with was extremely helpful, polite, and professional. We would recommend National Funding to anyone.

WE’RE IN A LEAGUE OF OUR OWN

Proud small business lending partner


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