Tag: collateral

Every small business will need an infusion of cash at some point. When the need arises, a business loan with a traditional lender generally has the best interest rates and loan terms. It also requires more from borrowers though, including some form of collateral. The bank will examine your business credit as well as your revenue and your company’s financial history. If the lender determines you have enough income to repay the loan, the bank will also ask you to provide collateral – a secondary […]

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 […]

When you are looking for business funding for a commercial mortgage, it is important to know the loan terms that will be required of you. One of the most important to understand is whether your commercial real estate loan is designated as recourse or non-recourse. Recourse Commercial Mortgages A recourse loan requires that the borrower is personally liable for the balance of the loan. That means that if the loan goes into default, the lender can seize and liquidate not only the collateral associated […]

Meeting your small business cash needs can be challenging. When it comes to financing, one of the many options is small business bank loans. Many banks will offer both traditional loans and lines of credit. Each provides different benefits and is better suited for certain types of businesses. Here’s how to figure out which one is right for your company: Traditional Bank Loan A small business loan from a bank will allow you to borrow a specific, fixed amount of money that must be paid back […]

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 […]

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 […]

The U.S. Department of Agriculture announced earlier this month plans to extend loan help to even more small business farmers, most notably by increasing the loan limits on its microloan program. Farmers with small to medium sized operations will now be able to apply for microloans up to $50,000, a $15,000 increase from the current limit. Microloans are small amount loans typically made to underserved populations, especially those that have a hard time obtaining financing with traditional lenders […]

After the initial startup phase, most small companies will come to a point where they need a blast of cash to keep business flowing on an upward trajectory. It may be that the firm needs to invest in equipment, more inventory, or additional staff. Whatever the reason, getting ahold of more money is essential. Two of the most talked-about ways of securing funds are small business loans and venture capital (VC). Here’s how they stack up against each other: Small Business Loan Pros – Taking […]

Asset-based lending (ABL) is often a path to working capital for companies without the standard collateral required for bank loans.

Preparation is key to successfully obtaining a loan from a lender. Here are four ways to make sure you are prepared before you apply…