Category: Business Credit

Small businesses are often in need of substantial capital for one project or another, but small business loans from traditional banks can be difficult to acquire for many firms. There are alternatives that can help companies get the working capital they need, among which are personal loans. Although they carry high fees, there are several situations when they just might save the day. Brand-new Companies It can be very challenging for start-ups to secure funding from banks or other lenders because […]

Among the more recent additions to the business financing scene is the microloan. Microloans are small loans –typically ranging between $500 and $35,000 – that require less paperwork and have less stringent underwriting standards than traditional small business loans. They do charge slightly higher rates and fees but when only a small amount of cash is required, they can be just the thing to keep a business going. Most microloans are made by nonprofit companies who are interested in helping […]

The rate of approval for small business loans is typically fairly low, with rates among banks, credit unions and other lenders averaging between 20 and 40 percent. That means that far more entrepreneurs hear the word “no” from lenders than those who hear “yes.” While have a loan application rejected can be disappointing, it is even more frustrating to be rejected without knowing why. Many business owners coming away from being turned down for financing without having any idea why they did […]

Having enough cash on hand – working capital – to pay for day-to-day operations is essential for creating a successful small business and yet accomplishing that task is actually much tougher than it sounds. It will require some careful thought and planning. THINK BIG Start by making some long-term plans and projections for your business. You need to have a very good estimate of how much money you plan to bring in over the course of a month and during the whole year. You should also think through […]

Having access to cash as a small business is crucial for growth and flexibility. Business lines of credit have always been an ideal source of financing…for those who could qualify. A traditional line of credit from a bank offers some of the lowest rates and largest credit maximums, but they also require good credit scores and proven track records of substantial annual revenue. Fortunately, for all those businesses that don’t fit that profile, many alternative lenders offer business lines of credit […]

In some industries, business is conducted with only a few large contracts and a few major clients. One client may make up almost half of a company’s business dealings. While having so few customers can make things simpler, it can also be dangerous if any one of them pulls out of their contract for financial reasons. In order to limit exposure to these kind of catastrophes, business owners can take steps to check out a potential client’s credit-worthiness before signing a contract. Here are the […]

If your company relies on the contracts of just a few big clients, it is essential to you to know that each of those clients is likely to make good on their financial obligations. There are several ways to vet a client before taking on that contract. Part One discussed running business credit reports and doing some background searches. Here are a few more tips for discovering the creditworthiness of any potential client: Ask for References It is completely appropriate to ask potential clients […]

Small business loans from traditional banks and lenders are often considered the gold standard among business owners. They typically offer the lowest interest rates, the most generous loan terms and the highest dollar amounts. One of the long-standing drawbacks to traditional business bank loans, however, is that they often take weeks or months to secure. The application process can be tedious and resource draining, and even when a business owner has the good credit and assets to qualify, he may […]

Securing a small business loan can sometimes mean the difference between failure and survival for new and growing companies. Yet there are many mistakes some entrepreneurs make when preparing to apply for small business funding. Putting some basic principles into practice will help you avoid those mistakes and be in a better position to get that much needed cash infusion. 1. Safeguard your Credit Both your personal and business credit histories will be important to lenders evaluating your loan […]

In the wake of the financial crisis, alternative lenders popped up everywhere to fill the funding gap for small businesses. Today they continue to provide valuable financing options for many fledgling and growing companies, especially when traditional bank loans are still hard to come by. While alternative small business loans can be life-saving for some firms, it is important that entrepreneurs go into them having done their due diligence. That means having fully researched at least the following […]