Archive: June 2015

Finding enough working capital and other funding for a startup small business is often the toughest part of creating a viable company. And traditional bank loans are generally unavailable for firms with no financial history. Credit cards are available to almost everyone though and can provide easy capital to entrepreneurs. Is this a smart option for new businesses? Whether or not it is smart, it is a popular method of financing. In the National Small Business Association’s 2014 year-end report, […]

Commercial mortgages and residential home loans are both loans taken out on properties and they both use the property itself as collateral. What makes them different from each other? As a business owner, what do you need to know about making a commercial mortgage agreement? Borrowers While residential mortgages are usually between banks and individual buyers, a commercial mortgage is made to a company or business. An individual could sign on to a commercial loan but since the property is zoned […]

While the idea of one giant small business loan to cover all your growth needs sounds ideal, it is usually better to approach a loan thinking only about the next step in your company’s future, not the next five. Planning to borrow only what you need for the next stage will make your application much more viable with banks. Banks and other lenders, especially those making SBA (Small Business Administration) loans, want to know how you plan to use the borrowed funds. That means a specific, measurable […]

In the years following the Great Recession, small business owners found themselves faced with limited access to capital as spooked lenders avoided risk as much as possible. And while small business lending has picked up a little in recent months, the dearth of funding has sent entrepreneurs away from their traditional bank in search of better pickings. A recent Ernst and Young report found that nearly one in five businesses changed its primary bank within the past year, a sign that business owners […]

The biggest challenge most small businesses face is access to capital. Small businesses need lots of cash to get off the ground, to grow and to expand. It is hard enough for most business owners to get a loan from their local bank, but for some it is almost impossible. These are the “credit invisibles,” according to a recent survey from the Consumer Financial Protection Bureau. The report found that there “that there are 26 million adults in the United States without a credit record. This […]

Angel investors and venture capitalists get a lot of attention when it comes to small business financing, but in reality startups get much more business funding from family and friends. A report from Fundable.com found that 2013, friend and family members poured $60 billion into small businesses while venture capitalists invested just $22 million and angel investors contributed only $20 billion. In fact 38% of all startup entrepreneurs in 2013 raised money from their loved ones, with the average […]