Tag: small business loans

‘Licensed and bonded.’ You may have come across that term before when searching for a plumber or other contractor, but what does the ‘bonded’ part mean? If you run a business that owes its existence to contracts or short-term projects, being bonded can make a huge difference. Being bonded means that your work is backed by a surety bond. This is basically like insurance to your clients that you will get the project done as promised or you will repay them for any financial losses if you […]

Having a good personal credit score can make all the difference in acquiring business funding for small firms. For business owners who are sole proprietors, their personal credit is their lifeline to bank loans, online loans and other forms of business financing. What happens if an entrepreneur has been faithfully making timely payments, keeping debts on credit cards low, and generally practicing good credit behavior but then gets hit with some unexpected medical bills that he’s unable to repay […]

When you are in need of some working capital for your business or a round of funding for a new business stage, getting your hands on that cash can be much harder than it should be. It usually takes much more work and perseverance than just going down to your bank and asking for a small business loan. It can be an arduous and exhausting process to track down the right funding. When you do not have either the time or the expertise to do that, you might consider hiring a lending advisor. A lending […]

Working capital is the money your business needs to function on a daily and short-term basis. The amount of working capital you have consists of the cash on hand to make purchases and fund necessary expenses. It is measured as your current assets minus your current liabilities. When the liabilities are greater than the assets things can get scary. Working capital loans are designed to help small businesses cope with these gaps. While they can be helpful, as with any type of loan there are both benefits […]

Raising money for small business start-ups is typically one of the most important but also one of the most daunting tasks for entrepreneurs. Bank loans and angel investors are often sought-after forms of business funding, but the rates of rejection can be really high. For example, in November 2014, Biz2Credit reported that big banks only approved 20.8 percent of all the small business applications it received. That means almost 80 percent were turned down! If you have been among that 80 percent […]

Finding funding for a small business startup can be a difficult challenge. And if your personal credit score is less-than-perfect that process can seem even more grueling. It is definitely not impossible though. The path to funding might have to be a little more creative, but the following tips can help your business overcome your past credit foibles. 1. Borrow From Friends and Family While it may be uncomfortable, family and friends are often the best place to start for small business financing. […]

Getting past the start-up phase in any small business is a major accomplishment. But it is no time for resting on one’s laurels either. Expanding an established business means finding another round of funding. Where is the best place to find expansion financing? It may surprise you to know that the majority of small businesses use their personal assets or obtain extra funding from family members. According to the 2007 Survey of Business Owners (SBO), 51.2 percent of small employers kept financing […]

Many small businesses contract with large companies that take the full 120-day limit to pay their bills. The result is that the small firms often come up short in terms of working capital between payments. And unless those small companies offer a product or service unavailable in the rest of the market, they have little negotiating power with the big firms. This situation makes for some tough choices for small businesses. Take a Discount These big companies will often offer payments earlier than […]

The small business lending atmosphere, while getting better, is still chilly today compared with before the 2008 financial crisis. Small firms applying for loans are coming up against several major obstacles. In order to be approved for critical funding, small business owners need to know how to push past these hurdles. One of the major changes since the Great Recession is there are fewer lenders in general, and specifically fewer community bankers. This is an important challenge because community […]

Small business loans are a common way of securing working capital for many small businesses, but they are not the only way. Sometimes companies can generate the working capital they need from hosting special sale events or once-a-year promotions. Entrepreneur.com recently interviewed a day spa company in Pennsylvania that creates a lot of business funding each year during its Black Friday “Buy One, Get One” sale. With the rush of sales on that one day, the spa is able to reinvest those profits […]