Category: Business Loans

Many young and growing businesses need business loans to take their companies to the next level. However, these fledgling firms may not have the collateral traditionally usually employed to secure a standard small business loan. Or they may be unwilling to pledge those assets. In this situation, an unsecured loan may be the right choice. Although no business collateral is required, often a personal guarantee is. Here is what you need to know about this clause before signing: A personal guarantee […]

When your business needs some capital, a small business loan can be an excellent source of funding. If you have no collateral to offer or do not want to tie the loan to any collateral, lenders will look for other guarantees of repayment. There two possible choices: a personal guarantee or a business lien. A personal guarantee is usually the choice when there is only business owner or the company is new and un-established. Business liens can come in a variety of forms and are generally tied to the […]

When you apply for a business loan, you may feel like the bank’s approval process is like a black box of secretive decisions. While every lender may have a few unique lending criteria, in general all lenders will take four factors into account when choosing which loans to approve. Cash Flow Lenders are going to decide if your business is worthy of a loan based on the inflow and outflow of cash from your business bank account. The bank will want to see a high average daily balance, a significant […]

Small business in the U.S. are responsible for the creation of two-thirds of the new jobs added to the economy each year. And yet, for these small businesses to continue hiring and growing, finding the business funding can be a challenge. Many big banks and lenders have no interest in making business loans under $250,000 – the cost of underwriting small loans is barely worth the profits on them. In these situations, microloans can be the best solution. A microloan, according to the Small Business […]

When starting a brand-new business, coming up with all the necessary financing can be a challenge. Most banks will not consider startups for small business loans and without a business credit history it can be difficult to get funding from alternative lenders as well. One option for procuring working capital that startup entrepreneurs can consider is bootstrapping by consulting as a side job. Startups often require money for equipment, retail space, employee salaries, or inventory. Taking on a […]

No new business is devoid of setbacks and challenges. Even companies that go on to make millions of sales and find great success often make many mistakes in the early stages. While some business knowledge can only be learned the hard way, there are a few mistakes that can be avoided by learning from others’ experiences. Here are a three of the top financial mistakes to avoid as a fledging company: 1. Not Having a Cash-Flow Plan Becoming successful takes more than just opening the doors or placing […]

Building up a good business credit score is more important to obtaining business funding than most entrepreneurs realize. In fact, one of the most frequent reasons that small business loans are denied is because of low personal and business credit scores. After establishing a credit profile with business credit agency Dunn & Bradstreet, small business owners should apply for a business credit card and start using it responsibly to start building a good credit report. These cards can provide […]

Trying to navigate the small business loan process can be confusing and exhausting. If your company is looking to find some business funding through a bank or other traditional lender, it helps to be aware of the kinds of paperwork that will be required of you. Here are the six most important pieces of data you should prepare before applying for a small business loan: 1. Personal Credit Score Even though you might not expect a bank to pull your personal credit score when you are applying for […]

Making a mistake with your business credit can cost you in your credit score for months to years. While the formulas for business credit agencies are not as transparent or consistent as those for personal credit scores, there are still several big no-no’s that will stay on your record the longest. Here are the 3 biggest business credit mistakes you can make: 1. Liens A lien is a legal claim against your company’s property or assets. It is usually the result of vendor or business loan repayment […]

Small businesses provide the majority of new job creation for our nation and yet pulling together the funding to become a successful, job-generating company can be very challenging. Small business loans are among the most desirable forms of financing a growing firm, but only about 20 percent to 25 percent of small business loan applications are approved on average. If your company is looking to secure some working capital from a traditional lender, here are five ways to put your best foot forward. 1. […]