Tag: small business loan

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 […]

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. […]

It is a common situation: a business cannot qualify for a traditional small business loan so the owner takes out multiple personal loans or merchant cash advance loans with high interest rates. Pretty soon those “stacked” loans with expensive fees become oppressive and can threaten the health of the company. One possible way out is to reconsolidate all that debt. Reconsolidating debt means paying off all your smaller loans with a larger loan that has a lower interest rate. While small businesses […]

You have a small business loan with a high interest rate. Your firm does better than expected and you have the money to pay it off early. While an early-payoff may seem like a no-brainer at first glance, there may actually be some good reasons NOT to finish off that loan as soon as possible. Increased APR Unlike most car loans and mortgages, many small business loans do not fully amortize. With an amortizing loan, the principal and interest are both spread out over the term of the loan, with […]

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 […]

There are seemingly millions of articles out there on the Internet handing out advice on how to financially run a better business and it can be difficult to sort through all the static. In reality, there are a few basic principles that when followed will lead to success time and again. 1. Have Focus and Stick to It A business will be successful and find the needed investors when it has a clear mission and fulfills a real need. It is important to define your company’s meaning and then make financial […]

Building up a small business often requires lots of capital, and obtaining that capital is much easier when your business has a good credit history. But how do you create a good business credit file if your personal credit is a mess? Here are three important steps that can help you overcome that bad credit hurdle. 1. Create a Business Credit Profile First, separate your business and personal affairs legally turning your business into a corporation or a limited liability company (LLC). This will […]

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 […]