Different Types of Small Business Loans

When defining the term small business loan, it is important to understand the definitions of both a small business and a loan. In the United States, a small business is defined as a privately or independently owned and operated business that employs less than 100 people. And a loan is defined as something furnished on condition of being returned. Therefore, a small business loan is something furnished to a privately owned business with less than 100 employees that must be returned.

That being said, there are many different types of small business loans, various ways in which a small business loan can be acquired, and a small business loan does not have to be lent through a bank as many may have been be misled to believe.

One of the most popular types of small business loans are SBA loans, loans that are distributed through private lenders such as banks, credit unions, etc., and are backed by the Small Business Administration. Since banks are usually the lenders of these loans, they typically come with strict requirements including excellent credit scores, collateral, and fixed monthly payments. These requirements are to ensure that the borrower holds up his/her end of the deal, and repays the loan in a timely manner. A small business owner who has excellent credit, collateral, and a well thought-out and put together business plan and presentation may be able to receive a sufficient amount of money through an SBA loan.

The SBA also backs micro-loans which may be easier to obtain, but the maximum micro-loan amount is $35,000 and the average SBA micro-loan amount is only $13,000.

Another type of small business loan that many business owners may be unaware of is equipment leasing. As implied earlier, a loan does not have to be given and/or received in the form of money. Instead of providing small businesses with the funds to purchase equipment, equipment leasing companies actually supply the equipment. Small businesses can rent the equipment, and return it, and they may also be given the opportunity to eventually purchase the equipment.

As bank lending practices tighten and business owners move away from traditional forms of small business financing, business cash advances are becoming an increasingly popular form of small business loans.
Business cash advance lenders purchase a business' future credit card sales. This allows merchant business owners to receive a sum of cash upfront in exchange for a small percentage of their business' credit card sales until the business cash advance is completely repaid. Business cash advance lenders do not require borrowers to have excellent credit scores or collateral, making them easier to obtain than many other types of small business loans. The repayment procedures allow for flexibility unlike most small business loans that require a borrower to repay a specific amount on a specific date every month.

The aforementioned are only a few of the existing types of small business loans. As a small business owner seeking small business financing, be sure to look into the various types of small business loans before choosing one. Discovering which small business loan is best for you and your business could save you both time and money, and in the long run, can be more beneficial for your business.

About the Author

David Castro often writes articles about Small Business Loans for Merchant Resources International - To Learn more Visit Us at http://www.cashprior.com

Getting A Loan For Your Business

If you are looking to get started in the small business world, chances are you will need some outside start up capital. Few, if any, small business owners got their start up money out of their own pocket. Fortunately, there are a plethora of available avenues for you to secure some funds to get your small business off the ground. Of course, to get these loans you will have to show a business plan indicating you know what you are doing and have a good chance of turning a profit within a recognizable time frame.

Neither banks nor the small business association nor outside investors are looking to simply give their money away. They will want to see a verifiable return on their investment. Of course, no business is a sure thing but you will want to make it seem like yours is. If you have a smart business plan, some collateral to put up and a business degree, getting a loan should be possible. Here are some of the available outlets for procuring that all important capital.

First of all, if you are looking to buy into a franchise, you will want to look in a different area than you would if you were starting your business from scratch. There are franchise financing plans and these are often times provided by the franchise company itself. For instance, if you want to open up a McDonalds, you will want to research the company to see if they offer plans for paying off your franchise loan.

These plans are often cheaper, better and easier to procure than loans from an outside source. If the franchise company you are buying into has no such program, see if your local lending institutions offer special loan programs for those looking to start a
franchise. If franchising is not your thing, you will want to look at the available loans to start up small businesses. One of the first places you will want to look is the small business association or SBA.

This government program is specifically set up to help young entrepreneurs such as yourself. They offer several different categories of loan programs and you will want to look at each of them and see what meets your requirements. These programs do require a certain amount of collateral, though sometimes the small business itself can be counted toward this. The small business association does not actually provide the money itself but will rather recommend you to good lending institutions through which you can secure
financing.

Another good place to start for a small business loan is your local bank, meaning the one you do business with. Banks are more apt to offer loans to qualified customers with whom they already have an account in good standing. They will not have to do a lot of credit checking, as they already have most of your financial information at their fingertips. Often, the financing and interest rates through your own bank will be better than you can find at other institutions.

Finally, avail yourself of venture capitalists and angel investors. These people or foundations are in the business of investing. More than any of the other options, however they will be keenly interested in how your business can make them money. If you have a good business plan, seek out these investors for some capital to start your company.

About the Author

Obinna Heche. Los Angeles - Californi

Delivering the best home based business ideas and

opportunities so you can work at home successfully..
http://www.homeincomeportal.com/obhmy365/

Article Source: Content for Reprint

Bad credit small business loan - Does a Bad Credit Small Business Loan Make Sense?

Your enterprise has been your dream, your livelihood and even your obsession for years but due to recent events, the accounts receivable have taken a downturn and you are beginning to accrue a hefty debt. Due to new competition or just a slowdown in consumer spending, or for any reason, the monthly bills dwarf the cash flow each month, and payments are falling behind schedule. The delinquent payments are resulting in substantial late charges being levied and the interest continues to accrue and adds to a growing, rather than decreasing, principal. It seems to you that the financial obligations you are facing are spiralling out of control. The farther behind you get, the more damage is being done to the venture's credit rating.
You think it may be possible to save the venture by taking out another business loan to bring the payments current, but then you get quite a shock. The lender you have always used will no longer grant a loan due to your bad credit rating. You still entertain the idea of taking out another loan to make accounts current. Is it time to consider a bad credit small business loan? What kind of terms can you expect with a bad credit small business loan?

A bad credit small business loan is one of several types of alternative style loans that lenders offer to enterprises that no longer qualify for conventional loans due to a poor credit rating. These alternative loans may include a hard money loan that will hold collateral like real estate or other tangible goods to guarantee repayment. A hard money loan is a secured loan, whereas a bad credit small business loan is unsecured, but often has very stringent terms that make it a doubtful advantage. For example, the interest rates are generally quite high and may have balloon payment, or very large payments that come due within a few years. There are usually very stiff penalties for missing a payment and an infraction such as this often can negate the contract and the creditor may be able to demand payment in full immediately. But when an owner is struggling to keep his or her enterprise, a bad credit small business loan may look like the only alternative.

The are other alternatives and a professional debt counsellor should be consulted before taking out a bad credit small business loan and sounding the death knell to an already struggling venture.

A good consultant will explain the debt management options to a bad credit small business loan such as debt consolidation or even debt settlement. Both of these options depend upon the skilled negotiation that the consultant will undergo with the creditors on the behalf of your enterprise. A settlement or consolidation will result in being able to make reduced payments, by consolidating the debt and by reducing the interest, therefore allowing more of the payment to address the principal. Often a settlement will result in the financial obligation being paid off much more quickly.

Another advantage of debt reorganization to a bad credit small business loan is that it actually improves your credit score. Just by entering into a reorganization plan, an owner sends a signal to creditors that he or she is serious about curing the financial situation and the credit rating begins to improve, rather than continuing to sink. Speak to a debt relief consultant to find the solutions that are preferable to a bad credit small business loan, which is, after all, yet another financial obligation to add to the problems that are already in place.

Check these links to learn more:

http://www.commercialdebtcounseling.com
http://www.commercialdebtcounseling.com/business/business-y/business-index.shtml

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About the Author: James Banks is a contributing writer to http://www.commercialdebtcounseling.com and is currently writing some special articles to guide business owners on how to manage debt and avoid bankruptcy. For Free Information on Business Debt and Debt Help Consultation, call toll-free 1-877-324-1218.

Need a Small Business Loan?

Small business loans are available from a variety of sources. There are banks, savings and loans and lending companies in the private sector that make loans to small businesses. There are also some public entities that are involved in financing for small businesses. One such source is the Small Business Administration (SBA). The SBA is an independent federal agency that assists small businesses in various areas. One area of assistance is financial and as such it is a source of loan funds for small businesses. There are three different SBA loan programs geared toward different kinds of small businesses. Each functions in a different way but each provides a means of financial assistance for small businesses.

The first program is the SBA’s Business Loan program. SBA has various partners is the community known as Lenders, Community Development Organizations, and Microlending Organizations. The SBA defines the parameters for the loan program and guarantees the loans which are actually made by their community partners, the various lending institutions. The guarantee means that the federal government will repay all or part of the loan in the event of a default by the small business borrower. The small business owner should contact the SBA to learn the terms of this and other programs.

A second program involves the Small Business Investment Company (SBIC). These are public-private businesses that represent an investment partnership between the public and private sector. These business entities can borrow funds for venture capital financing through the federal government at low interest rates. The purpose of these investment companies is profit and to share in the success of the small businesses that they invest in and help grow.

The third component of the SBA’s small business financing program is called the Surety Bond Guarantee Program (SBG). This program provides financing by guaranteeing bonds for small contractors to bid on projects that they normally wouldn’t be able to bid on. The surety is the SBA’s guarantee to cover a portion of the loss if there is a breach of the contract.

These SBA programs help small businesses obtain funds that they might not otherwise obtain without the guarantee by the federal government. The government is assisting them by organizing lending sources and by assuming part or all of the risk of borrower fault. They are, in effect, shifting the risk of default from the lending institution to the federal government. These programs help small businesses grow and give them business opportunities they would not otherwise have had without the guarantee of the federal government.

Small business owners should contact the SBA to see what programs and funds are available. Funding is based on appropriations and may change from year to year.

For more information about obtaining a small business cash advance loan or bad credit loans visit http://www.1st-low-rate-loans.com

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About the Author:

For more information about obtaining a small business cash advance loan or bad credit loans visit http://www.1st-low-rate-loans.com/

Small Business Loan: Starting Your Own Empire

An entrepreneur is not the type of person you find everywhere because not everyone has got the guts and determination to turn a startup business into a prosperous one. This type of person not only needs endurance and intelligence, but money as well; that is when a small business loan comes in.

- Small Business Loan -

There are always two parties in any business. Two sides of the counter: “You”, the provider and “they”, the consumers. It might not be easy to digest, but the way to get the best results is to identify an unsatisfied need in “them”, the public. Then, “you” create or choose a product to satisfy that need. Although it may sound simple, it is not. The market will show you that people make decisions based on emotions and not on knowledge. Why is this important? It is simple: today's topic is small business loan, and how to prepare yourself to get one to start up the business of your dreams. Business owners sometimes stop being entrepreneurs and become regular people; taking on a small business loan for something they want and not what the company needs.

- Tips for Getting that Small Business Loan -

One of the first things is to accumulate information. Look into statistics, general response from the public and marketing strategies. Try also to sketch a budget plan as backup in case of an eventuality that will show the lenders you are prepared for everything, and that you are also a well organized, somebody to trust with money, and who will certainly end up paying on the scheduled time.
When the time comes to apply for your small business loan, make your presentation as neat and clear as possible. Act as if you were the CEO of your Corporation, even before it is a reality. Write down your presentation and learn it by heart. Use notes, graphs, pie-charts and anything that can help you make your points even clearer as to what your intention is. The main message with this approach is making it clear you are a confident and reliable; that you have the ability to put the small business loan to good use and succeed along the way.
Lenders worry about one thing: if you, as the owner of the business, will be able to pay them on the specified time, and that you will not have obstacles along the way.

- Sell your idea as a profitable business to get the small business loan -

The one thing you should never do is ask for “help”. That small word is a no-no. Offer the lenders of the small business loan a partnership. It may have the format of a loan when you get down to the paperwork, but in essence, is a partnership. Make sure to keep the greater percentage of the business for yourself. The decision-making must be all yours. The capital can come from anywhere, but the business should always be yours as it is your idea and creation.
You have the know-how and you have to show the small business loan lender that is the case. The more you know about the trade, the better and easier it will be for you to get the small business loan and the higher your chances of succeeding will be.

- Feel great and let the lenders notice it -

Organize your business plan and have some copies printed. Present them in a neat folder to the banker or the lender when you finally start searching for the loan. The fact that you have gone into all the trouble of drawing up a business plan will make you feel confident, positive and eventually great. Giving a good impression to your lenders and short-term business “partners” will increase your confidence even more. It will also corroborate to the small business loan lender that you are on the right track and that can make the difference.

Remember to ask yourself all sorts of questions you can come up with and answer them. This is a great way to feel prepare for any unexpected situation when talking to the lenders.

We have different articles on interesting topics and current and former clients’ experiences with our programs. Take a look at the different situations on Small Business Loans and related topics that people can fall into and how to keep yourself a debt free person.
Check these links to learn more:
http://www.commercialdebtcounseling.com
http://www.commercialdebtcounseling.com/business/business-y/business-index.shtml

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About the Author: James Banks is a contributing writer to http://www.commercialdebtcounseling.com and is currently writing some special articles to guide business owners on how to manage debt and avoid bankruptcy. For Free Information on Business Debt and Debt Help Consultation, call toll-free 1-877-324-1218.

9 Things You Must Do To Maximize Your Chances Of Obtaining A Small Business Loan

by: Neil Best

To get approval for your small business loan application, you must be able to meet the lending criteria set down. Some organisations are more risk averse than others, and will therefore have more stringent criteria. To vastly increase your chances of a successful funding application, you will need to present the following information:

1. The reason for the loan. The lender will be looking for something that fits within the normal range and expertise of your business. The amount may cover a number of items, so you will need to cover each.

2. The amount required, and the repayment term of the small business loan you want. (e.g. $10,000 term 5 years, payable quarterly).

3. Details of how you will repay the amount borrowed. For example, “From the increase in profits of reduced running costs of the Whizzbang Go4It”

4. Details of security you will be able to offer to the lender. This will act as reassurance for the lender. If you’re not prepared to put up some aspect of security, then why should they?

5. You will need to include your business plan which will serve to answer essential questions relating to management capabilities, information about the market you operate in. What kind of business you are in etc.

6. 3 Years financial statements. You will need to present quality financial information from your accounting software, preferably signed off by your accountant or tax advisor.

7. Latest Set of Management accounts. Again produced from your accounting software.

8. Accounts receivables (debtors) and payables (creditors) ageing reports.

9. Principals financial statements. – Particularly required if some form of security is necessary.

If you are a new company, the emphasis is going to be on your business plan , and the security (also called collateral) you or your business can provide against the loan.

You must take the time to practice presenting your case to the bank or lender to iron out any glitches. Practice on your colleagues and family (you never know, they might be so impressed, they'll invest or lend!). It may help to role play the lender and come up with as many pointy questions as possible. The more time you take the better your chances will be. (But remember, don’t fall into the analysis paralysis trap!)

Good luck!

About The Author

Neil Best

This article and other useful info such as sample business plans, sourcing and applying for small business grants, and how to find and approach potential investors can be found at http://www.smallbusinessfinancetips.com/small-business-loans.html

Getting A Small Business Loan

by: Daryl Des Marais

There are a variety of resources for small business owners. If you have a previous credit history and some invoices or a track record many small banks cater to business loans. If you are looking for a grant there are a great number of resources on the web. If you are creating a new innovation go to http://www.sba.gov/expanding/grants.html and check for grants that are currently being offered for innovations. You can also find small business loans for minorities and special projects.

If you need capital raised to develop your prototype and you have a viable product that people have endorsed they would buy then ckeck out growco.com and maybe you will find an angel investor. For more information on grants and loans go to www.usabuinessgrowth.com and click on grants/capital.

If you are going to apply for a business loan make sure you have a business plan and monthly income statements as well as a 2-year cash flow plan. Show them you know how to manage money or get someone to help you with a plan. Continued Success!

Daryl Des Marais
Business Growth businessgrowth.ca

About The Author

Daryl Des Marais

Mr. Des Marais has operated small businesses for over 20 years. He has been a consultant and held positions in some of the fastest growing companies in Canada. He has held past management positions in retail, tourism, hospitality and sales for a variety of companies. He has increased sales by 200% in 2 months for an herbal doctor; increased sales by 30% in 4 months for a major Canadian Big Box Retailer and helped several entrepreneurs develop and sell their business. His expertise is in the area of growth and business development. He has also been involved in developing business chapters in cities across Western Canada. In terms of charities he has been involved with several groups including Habitat for Humanity, United Way and local city soup kitchens. In terms of Business Development and mentoring Mr. Des Marais has volunteered with S.E.E.D.S mentorship review committee, ACE, YEA and university alumni and speaking events. He has given presentations at the University of Victoria and Simon Fraser University.

Selecting a Lender for Your Small Business Loan

by: Rebecca Game

Selecting a lender can be as tedious and detailed a process as preparing a business plan or loan proposal. Many business owners and potential business owners are so concerned about being approved on a business loan that they forget the importance in selecting a lender.

If you already have a bank or credit union in which you have maintained a long-term relationship, it's logical to consider that particular financial institution when selecting a lender. Your bank that you currently use for personal and/or business accounts is very familiar with you and your financial history. If that history is positive, it could play in your favor. A large part of the lender's risk is the uncertainty regarding the loan repayment. By selecting a lender in which you already have a relationship, it can greatly reduce the uncertainty about your and your business, putting you in a better position of being approved for a loan. If you have a mortgage with a bank, that same bank is probably a good place to start inquiring about a business loan when you're focused on selecting a lender.

If you have reason not to use a lender in which you have a current or past relationship, consider selecting a lender who *wants* your loan business. Sources for these lenders can be found in the business section of your local newspaper for special financing offers. When selecting a lender in this nature, also consider searching both the yellow pages and the internet. Lenders that are actively looking for small businesses in need of loans often offer a quicker process of obtaining a loan than other lending institutions.

In the instance that you are a bank customer, consider a credit union when selecting a lender. Because credit unions are generally smaller, you may be able to talk directly with higher level decision makers to state your loan proposal. Larger banks tend to have more rigid rules and processes associated with small business loans. Even if the person you talk to regarding your business loan believes in you, he or she may not be able to help you other than to take your information and present it to the decision makers in writing.

Be aware of several choices for lenders before selecting a lender for your loan proposal. Even if you feel that your first choice of a lender will approve your loan application, look into several other lenders before selecting a lender to provide your loan.

1. Make sure that the lender is sincerely interested in your business.

If you get the feeling that your loan is "just another number," for example, it may be safe to go with your instincts and search for a different lender.

2. Confirm that you'll receive the services that you desire for your loan.

When selecting a bank or other lender, be sure to select one that will provide you with the services you need. As an example, if online banking is important to you due to its convenient features, don't select a bank that charges for these services, or one that doesn't offer a full range of services that will make your loan experience easier and more convenient for you.

2. Choose a lender that "feels right" in everything that it can offer you and your business.

Selecting a lender, and ultimately choosing a lender, should include the idea that this is a lender in which you feel comfortable with developing a long-term relationship. Focus on the value of your business to the community, and what its future deposits could mean to the bank. The lender should treat you with respect, and should respect your business ideas.

When selecting a lender, consider the following questions:

- Does the lender have an industry specialty related to your specific business?

- What is the average size business in which the lender typically approves for loans?

- What are the details of the lender's loan client professional backgrounds? Is the lender more of a commercial or consumer lender?

- How long has the lender been in business?

These questions to ask when selecting a lender are important for a few reasons. Whether you patronize a large commercial bank or a small community bank depends on the needs of your business. Major banks tend to offer a wider range of services and locations, which may be important if your business has the need for a variety of financial products and services. Smaller, community banks, on the other hand, may allow you the opportunity to work with a banker that will directly make the decision as to whether or not to loan you the money, or may have close ties with the bank hierarchy. This might allow the banker, or loan officer, to offer positive feedback to the bank president on your behalf. It might also move the loan process along much more swiftly.

When finally making your decision on a first choice for a lender, file your application and loan proposal with that lender. If, for whatever reason, the loan is declined, try your second choice. Take the time needed, and be patient, both with selecting a lender and obtaining a small business loan. Doing so will offer rewards in the end.

About The Author

Rebecca Game is the founder of Digital Women ®, an online community for women in business. A 30 year entrepreneur and dedicated to helping other women find business loans. Visit her site: Loans for Women http://loans.digital-women.com.

Successfully Obtaining a Small Business Loan

by: Rebecca Game

Working with a bank to obtain a small business loan can be an easy or difficult process, depending on how prepared you are to meet with the lender and discuss your business' situation and needs.

One of the leading causes of business failure is insufficient start-up capital. Ironically, though, lenders rarely approve loan requests for the businesses that have the highest need for a small business loan. Instead, lenders tend to prefer to offer small business loans to those businesses that have been in operation for two or more years.

According to All Business, it is estimated that 95 percent of all entrepreneurs opened their businesses with capital from their own pockets, or from money they borrowed from relatives, friends, or another person in their community. Lenders want to see business owners risk their own funds in the business venture, and often require that the business owner or owners provide a minimum of 25 percent of the capital needed to start a business, and at least that much equity in the business if the business is already in existence. Simply stated, lenders aren't as willing to take a risk when a business owner doesn't even risk their own money in the investment. Businesses with a history demonstrating success in paying their bills for two and a half to three years will have the easiest time obtaining a small business loan because they've proven their ability to meet financial obligations.

Preparing a Small Business Loan Proposal

When preparing to apply for a small business loan, be prepared to face the facts that are against you, and use them in your favor. Persistency is necessary if you want to land a small business loan. Lenders follow certain criteria to determine if the small business loan is a wise investment for the bank. Most importantly, the bank will determine if the small business loan is likely to be repaid. As with other businesses, banks and other lenders must answer to their investors and stockholders, and unpaid loans show instability in the bank or financial institution.

Items compiled into a small business loan request include the following:

- Amount of money requested
- Likeliness of business profitability and demonstration of cash flow needed to service a small business loan
- Collateral, if any is owned by the business
- A reasonable balance between debt and equity

Know Your Banker

Whether you have a start-up small business or an established small business, the first step in obtaining financing through a small business loan is to develop a business relationship with your banker. Consider asking your bank's manager to open a file for your business, and provide quarterly or yearly profit and loss statements. When your business is in need of financing, the bank will already have a file and will be at least somewhat familiar with your operations. When the time comes to apply for a small business loan, approach the banker with a solid business plan to inspire the lender's confidence in your business. Provide information on business operations, marketing efforts, management ability, and financial projections for three years, as well as a cash flow projection and personal balance sheet demonstrating the worthiness of the business.

To prove worthiness for a small business loan, prepare proper documentation. Keep your credit reports as clean as possible. A lender will assume that you operate your business in the same manner that you manage your personal finances. The lower your credit rating, the slimmer your chances are of obtaining a small business loan.

When applying for a small business loan, search for a lender by first approaching the bank or banks in which you currently do business. Since you'll need to share all of your personal and business financial information, it can be beneficial to apply with a financial institution that already has that information on file and is perhaps familiar with your profile and spending habits. If your credit rating is high, your changes are good of being approved for the small business loan.

If you are unable to work with a bank or credit union in which you currently do business, or if you'd prefer not to work with your bank or credit union for your small business loan, look for a lender who wants your business. Search the business section of your local newspapers for special financing offers on small business loans and other loans. These lenders are actively looking for people needing small business loans, and the process of obtaining a small business loan with these types of lenders may be easier and faster. Additionally, check into credit unions. Because credit unions tend to be smaller financial institutions, you may be able to speak directly with a loan decision maker. Larger banks and other types of large lenders may have more rigid rules for small business loans, and the processes that they employ may be more complicated for small business loans.

If, at First, You Don't Succeed

If your first attempt at obtaining a small business loan fails, don't be discouraged. Small business loans are often not approved with the first lender that you approach, and be assured that you're not alone. Especially if you have a start-up business, lenders don't always approve small business loans, even in the most ideal situations. Search for other lenders, or become resourceful and look into other sources for loans rather than a small business loan, including home equity loans and personal loans, both of which can be used for business purposes.

About The Author

Rebecca Game is the founder of Digital Women ®, an online community for women in business. A 30 year entrepreneur and dedicated to helping other women find small business loans. Visit her site: Loans for Women http://www.digital-women.com

Business Cash Advance Vs. Small Business Loans

by: Ray Smith

Every business owner who has ever tried to get a business loan knows how difficult it is to get the money out of those banks and financial institutions. Surprisingly enough, these same people don’t need to be coaxed for a personal loan even if you are going to spend all that money for a pleasure trip or buying a car, but if you are looking for a business loan that is likely to give you a good ROI, you need to fulfill a bunch of criterions to qualify. One of the prime criteria for getting a business loan is to have a good credit score and unfortunately over 92% of the American population does not qualify for a business loan including the Small Business Administration (SBA) Guarantee Loan Program.

Credit Score is just the tip of the iceberg, even if you have a good credit score, you will have to provide the bank with financial statements, audited tax returns, business plan, a personal guarantee or collateral and meet other regulatory requirements set forward by the financial institutions.

Most banks would not even consider offering a business loan if you are

a) New in business

b) Have low credit score or no credit or credit problem

c) Do not have enough collateral

d) Need under $100,000

Also a business loan brings with it the liabilities of making monthly repayments of fixed amounts.

While it is so difficult to obtain a business loan, it becomes pretty easy to get some funding if you opt for a business cash advance. A business cash advance company would offer cash even to people with relatively low credit score. Most business that accepts credit cards and are in business for more than 2 years qualify for a business cash advance. A business cash advance is similar to a factor company except for the fact that it uses your future credit card receivables instead of business-to-business receivable invoices.

A business cash advance ( http://1rstfunds.com ) does not require a personal guarantee or a collateral neither is there a fixed monthly repayment schedule. Business cash advance is repaid automatically through Visa or Master card sales. A business cash advance is a much easier option compared to business loans. A cash advance provider would not take equity ownership of your business and you are free to use the money for any business purpose you see fit.

As the cash advance provider gets paid only when you sale and get paid, it is more of an investment to them. The repayment of your business cash advance follows the revenue trend of your business and your cash sales are never used for repayment. This ensures that it is never a burden for you to repay the cash advance.

If your business needs an injection of cash flow it is time you apply for a business cash advance and start enjoying the financial stability.

Does Bad Credit Hinder Your Business? Small Business Loans Can Help

by: Tim Kelly

If at any point of time, your business requires more funds or you want to start a new business but unable to do so because of your bad credit records, you are definitely in need of a bad credit small business loan.

A bad credit record includes cases of County Court Judgments, arrears, defaults, bankruptcy etc., which hampers your business and results in poor credit score. In this case it becomes difficult to get a loan. But in these hard times, there are lenders available who are ready to offer bad credit business loans.

When your credit account is not so impressive and you find borrowing loan difficult, you can apply for a bad credit small business loan to get a suitable amount of loan that you can easily repay and run your business well. Bad credit business loans provide you with small funds that you need for your business. Borrowing a small amount of money will help you repay it easily and also improve your credit history for future borrowings.

Bad credit small loans business fulfills your every requirement that you will expect from any other loan. The major advantage of this loan is that it is available to bad credit holders with the interest rate that will go with their financial conditions. The repayment period is also very easy and flexible. You also have the option to choose the repayment on your own and according to your convenience. The average bad credit business loan lasts for 5 to 30 years.

People with bad credit can avail small business loans for their various business purposes. They can borrow loans for starting a new business, purchasing of business assets, making payments to the creditors etc.

You can avail bad credit small business loans in both secured and unsecured forms. If you wish to take a secured loan, you will have to put collateral as a security against the loan amount. The advantage with this loan is that here lenders feel themselves secured that their money won’t be at risk. So they will offer you more money than an unsecured loan where you might not get as much amount as in secured loan. But if you take an unsecured loan, you will be free from any collateral or security.

Before signing the loan agreement, it is always beneficial to have prior knowledge about the loan as well as the lender you have chosen. This you can do easily by simply surfing the net and going through the rates and terms and conditions of different lenders. After a sharp comparison of rates, you will find a lender that will suit you from both financial and personal conditions.

Now you can run your business without any hurdle. Bad credit small loans will help your business flourish and form a strong financial ground.

Start with unsecured small business loan

By: Angelo Drew

Once you have decided to start a new business, take the help of unsecured business loans. It is not always possible to arrange all the money on your own. Anyone who is starting a new business will feel the heat – the requirements are huge and the returns in initial stages are low. So, you need a lot of patience and determination as well.

As far as business finance is concerned, there are many options. If you have something valuable like real estate or huge stocks that command good value, you can opt for secured business loans. But, it is not always possible. You may already be lacking adequate resources to start your business and then this requirement of collateral may make matters worse. So, what do you do? Obviously, take unsecured small business loan.

There is another possibility where an unsecured business loans can be of great help. Say, you already have an established business and you are earning good money. You can take advantage of your goodwill in the market and opt for unsecured small business loan – to diversify into the market abroad. As they say, money begets more money. Once you invest money and expand your area of operations, you are bound to get good results. There are many lenders in the UK financial market who can provide you business loans. These lenders evaluate on many grounds before giving you unsecured business loans. Lenders require a good credit history because in the absence of security the risk factor is higher for them.

Interest rates may also differ from one lender to another. This provides you an opportunity to hunt for a good loan deal. In case your business is well established and you have a reputation in the market, the lender may be inclined to offer you low rates. However, if you are going to start a new business with no previous track record then the situation may be different altogether.

Is an SBA Small Business Startup Loan Right For Your Business?

By: Ryan Mapes

The SBA is not primarily a direct lending institution; instead it guarantees small business startup loans made by private institutions. In other words, they back a portion of a loan made by SBA partners to eliminate some of the risk. Partners agree to structure their loans by SBA requirements in order to participate in the programs, and the amount of backing that partners receive can vary based on the federal government fiscal policies.

SHOULD YOU SEEK A SBA LOAN? Because there is one more organization involved, it can take longer to get an SBA small business startup loan than it does using a traditional lender. But if you have been unsuccessful in getting a small business startup loan traditionally, an SBA loan may be your best choice. However, realize that even if the SBA backs the loan you want, the lender is not obligated to give you the loan.

LOAN PROGRAM OPTIONS BASIC 7(a) LOAN GUARANTEE The 7(a) loan program is the most popular and most basic program offered by the SBA. Most banks and sometimes other lending institutions participate in the program. The process begins with a typical application to a bank. If the bank thinks the small business startup loan would be high risk, they submit it for consideration in the SBA program. The SBA can guarantee a portion of the small business startup loan if the lender would not get paid. The business borrowing money however, would still be obligated to pay the debt. Even if the SBA decides to offer a guarantee, it is still up to the lender to determine whether a loan will be granted.

ELIGIBILITY To become eligible for a basic 7(a) loan guarantee, you must meet the size restrictions, be a for-profit company, not have other sources of financing available for the use of funds needed, and have the ability to repay the loan under the terms agreed upon.

CONDITIONS Repayment ability from the cash flow of the business is the most important consideration in the decision of the SBA to approve or reject a loan. Management capability, collateral, character, and the owner’s equity contribution are also taken into consideration. Some variations of the 7(a) program may require other things.

PURPOSE The SBA 7(a) loan proceeds may be used to start a business, assist in the operation or expansion of a current business, or to acquire a business. This means loans may be used for working capital, equipment, land, buildings, refinancing existing debt that have no other good refinancing options, or to purchase an existing business.”

504 LOAN PROGRAM FOR A CERTIFIED DEVELOPMENT COMPANY The CDC/504 loan program provides long term fixed rate financing for major fixed assets, such as land and buildings. A certified development company (CDC) must be non-profit company designed to contribute to the economic development of the community. The CDC works with the SBA and other lenders from the community to finance small businesses. A personal guarantee by the principal owner is required along with the project assets being financed as collateral.

PURPOSE In general a company must create or retain one job for every $50,000 provided by the SBA, except for small manufacturers where the number is $100,000. The funding is not available for working capital, refinancing, and consolidating or repaying debt.

ELIGIBILITY A business must be for-profit, not exceed a tangible net worth of $7.5 million or an average net income of $2.5 million, and not be a real estate investment or speculation based company.

MICROLOANS— A 7(m) LOAN PROGRAM This program provides smaller small business startup loans (up to $35,000) to startup businesses or growing small businesses. The SBA directly gives the local community lenders who disburse the money according to their own eligibility requirements. The following link provides a list of Microloan Intermediaries by state. http://www.sba.gov/idc/groups/public/documents/sba_homepage?serv_fa_microloan.pdf

Bad credit small business loans: Sail through troubled waters

By: Angelo Drew

Lenders refer to your past financial record before giving you any loan. If you are small business entrepreneur and in the past you have already defaulted on repayments then lenders will hesitate to give you regular loans. Rather, you will have to look for bad credit small business loans.

Bad credit is a situation that may arise on many counts like you may have a County Court Judgement (CCJ) against your name or you may have earlier defaulted in repayment of a loan or applied for a bankruptcy. These occurrences put a question mark over your reliability as a borrower and, therefore, lenders keep you in a separate category. There are credit reference agencies which keep track of your bad credit situations. Lenders usually take the services of these agencies to find out your credit ratings. The better the credit ratings, easier it becomes to get loans. As is obvious, bad credit small business loans involve greater risk and, hence, high interest rates. Small businesses often stumble due to inadequate resources. Bad credit small business loans may put you on the right track by providing you the much needed funds. Bad credit small business loans may be secured or unsecured. If you are willing to give security to the lender, you can apply for secured one or else you can take unsecured loan.

Now-a-days, lenders understand that a bad credit situation in the past may not be reflective of future events. Besides, bad credit situation may have occurred out of circumstantial compulsions. That is why, now lenders have started offering bad credit small business loans more liberally. You should undertake some research in the market - a little extra effort on your part and you will sail the boat out of trouble. If you want a quick loan processing, apply online and save time.

Need a Small Business Loan?

By: Jill Kane

Small business loans are available from a variety of sources. There are banks, savings and loans and lending companies in the private sector that make loans to small businesses. There are also some public entities that are involved in financing for small businesses. One such source is the Small Business Administration (SBA). The SBA is an independent federal agency that assists small businesses in various areas. One area of assistance is financial and as such it is a source of loan funds for small businesses. There are three different SBA loan programs geared toward different kinds of small businesses. Each functions in a different way but each provides a means of financial assistance for small businesses.

The first program is the SBA’s Business Loan program. SBA has various partners is the community known as Lenders, Community Development Organizations, and Microlending Organizations. The SBA defines the parameters for the loan program and guarantees the loans which are actually made by their community partners, the various lending institutions. The guarantee means that the federal government will repay all or part of the loan in the event of a default by the small business borrower. The small business owner should contact the SBA to learn the terms of this and other programs.

A second program involves the Small Business Investment Company (SBIC). These are public-private businesses that represent an investment partnership between the public and private sector. These business entities can borrow funds for venture capital financing through the federal government at low interest rates. The purpose of these investment companies is profit and to share in the success of the small businesses that they invest in and help grow.

The third component of the SBA’s small business financing program is called the Surety Bond Guarantee Program (SBG). This program provides financing by guaranteeing bonds for small contractors to bid on projects that they normally wouldn’t be able to bid on. The surety is the SBA’s guarantee to cover a portion of the loss if there is a breach of the contract.

These SBA programs help small businesses obtain funds that they might not otherwise obtain without the guarantee by the federal government. The government is assisting them by organizing lending sources and by assuming part or all of the risk of borrower fault. They are, in effect, shifting the risk of default from the lending institution to the federal government. These programs help small businesses grow and give them business opportunities they would not otherwise have had without the guarantee of the federal government.

Small business owners should contact the SBA to see what programs and funds are available. Funding is based on appropriations and may change from year to year.

Bad Credit Small Business Loans – For a Fresh Start

By: Angelo Drew

Big organisations do not come up suddenly. Small businesses serve as the building blocks for tomorrow’s multi-national organisations. However, every project requires funds, irrespective of its kind and size. Countless businesses start but fail to sustain due to a number of reasons. But, under-capitalization is the most regretful off all the reasons. It is a well-known fact that financial strategies are of utmost importance in any business plan. However, if things go wrong, bad credit small business loans can give new heights to one’s business.

For any lender, giving a loan to someone with a bad credit history is not easy, as it could be risky. However, some institutions do approve bad credit loan applications, after a comprehensive scrutiny of the applicant’s background, at a higher interest rate and strict repayment plan. Going for a secured bad credit small business loan increases the chance of getting the loan application approved, as it guarantees security for the lender. Even a smaller loan amount may get approval.

As banks are usually more selective of their loan applicants, one should concentrate on firms that specialise and offer bad credit small business loans. This loan is specially designed for people other lenders may not want to deal with because of their poor credit history. The financial regulators allow lenders, who offer such substandard loans, to charge higher interest rates than the regular banks, as the risks are high too. However, it is an easily available alternative source (comparatively) for people affected by poor credit ratings.

Proper research is always one of the preconditions while applying for any type of loan. What can be a better option than the Internet? It is recommended that before arriving at any conclusion, a borrower must compare the different quotes offered by the lenders. Bad credit small business loans can prove to be advantageous for businesses that are in financial crisis.

Unsecured small business loan: A quick remedy to your business needs

By: Angelo Drew

Most businesses slow down time and again. So, better keep your business updated according to the latest developments in the market. If you need money, you can always opt for unsecured small business loans. Business dynamics are hard to understand but one thing is sure: a missed opportunity may cost you dearly. A shrewd businessman will never let go of any opportunity that presents itself at any point of time, even if there is a scarcity of funds. Whenever business demands, you can apply for quick business loans.

Unsecured small business loan provides many benefits like:

No need for collateral Quick processing and hence quick loan dispersal Less documentation Risk-free method of borrowing Available to both homeowners and tenants

Unsecured small business loans is usually a short-term business loan. Small businesses need to borrow frequently, as and when circumstances demand. It may be a short-term or long-term requirement. Short-term small business loans are ideal for raising working capital, as well as investing in capital assets. These loans can have duration of as little as 3-4 months or as long as 1-3 years. So, you can take them according to your business requirements.

If you have a good credit history and want to get unsecured small business loan, it should not be much of a difficulty. You can apply through any online portal to expedite the loan process. Another way is to approach High street banks. These banks have branches all across the UK and you will find their services good. Before finally picking a loan deal, make comparisons with some other lenders also. Online loan deals provide you advantages like online loan quotes and quick processing. You should requisition loan quotes from several lenders, compare them and take your own time to decide. This will eliminate any reckless decision on your part.

Override your bad credit with bad credit small business loans

By: Angelo Drew

Bad credit is considered a negative remark on your personal notebook. If you are a businessman who wants to borrow money, you will have to opt for bad credit small business loans. Lenders will shy away from giving you regular loans. But, you should not worry because bad credit is not a permanent feature, and can be done away with by showing consistency in future repayments.

Bad credit situations arise on many counts like County Court Judgements (CCJs), default in loan repayment, arrears and bankruptcy. Every such incident that gives rise to a bad credit history does not go unrecorded, as there are many reputed and professional credit reference agencies working on these aspects. These credit reference agencies record any bad credit situation that takes place in the financial arena. So, before giving any loan, the lender takes help of these agencies and finds out the credit rating of the borrower that has applied for a loan. The rate of interest that a lender charges also depends on credit rating; more grave the rating, higher will be the interest rate.

The good thing is that these days, lenders are aware about the complexities of business and understand that an isolated act of default on your part may have nothing to do with the future course of action. The default that puts you in a bad credit category may have resulted out of compulsions and adverse circumstances. If the prospects are good and presently you are doing well in your business, then lenders may ignore your isolated act of default.

You can use Bad credit small business loans for a number of purposes. You may have some plant and machinery to install, raw materials to purchase, variety to add to your existing stock and many other business endeavours to take care of. All these things require money, and bad credit small business loans can help you out when the chips are down.

Small business loan: A source of cheap finance for your business

By: Angelo Drew

A sustained financial support is very much indispensable for the development of any business. Any new business set-up or a business expansion plan requires solid capital backing. If you are into your own small business, you will realise the importance of a small business loan. In business, many situations develop that calls for immediate fund requirements.

Now-a-days, getting a business loan is no big deal. You can even make temporary arrangements with banks in the form of overdrafts. These facilities help you to get hold of money for short periods. But, if you need loan for a long term investment, then secured small business loan may be an appropriate option.

Small business loans are available in the financial market for any length of time. Short term small business loan often do not require any collateral. It is unsecured type of business loan. Although the rate of interest is higher in this case, but still this loan is appropriate for your temporary financial needs. Moreover, you can get such a loan within very short time making it all the more suitable for business needs.

Secured small business loan, which require collateral, offers you many advantages. You get a big loan amount at low rate of interest with long repayment tenure. The only flipside that works against you is the fear of collateral being repossessed by the lender. It may happen in case you fail to repay the loan amount and the lender forecloses the property put forward by you as collateral.

Any businessman who wants to take small business loan should preferably undertake a research for his own good. Information on the availability of various loan deals in the market and interest rates applicable thereon will help you get the feel of the market. You can easily apply for a business loan through online application form. Once the lender gets back to you, you can negotiate to get a better loan deal.

Small Business Loan Proposal
by: Rebecca Game

Loan Proposal

Applying for a small business loan can be exciting and yet stressful at the same time. For the best results and to heighten your level of confidence, be prepared when you visit the lender you've chosen for your business loan interview. After you have your business plan prepared, start preparing for the loan by writing a loan proposal to present to the lender.

The loan proposal should state some crucial information, and many details, about both yourself and your business or business idea. It should state who you are, how much money you need and where the money will be spent, how you intend to repay the loan, and what you plan on doing in the even that you cannot repay the loan.

The following are key elements to include in your loan proposal.

1. Summary.

This should be listed first in your proposal, but will be written last. It should contain clear, concise, accurate, inviting information about your business or your business ideas. It should summarize how the proposed loan will be used, how it will be repaid, and how it will benefit your business. Remember your competition in the summary of your loan proposal, and point out features of your business that are different from your competitors.

2. Management Profiles.

The management profile section of the loan proposal should explain, most importantly, who you are. Be prepared to reveal everything about yourself and your experience. Have a current resumŽ included as part of the loan proposal, as well as a summary of your skills, qualifications, and other credentials for yourself, as well as for all other owners and key members of your management team.

3. Business Description.

It's not necessary to state the same information mentioned in your business plan as in your loan proposal. However, you do need to present a solid description of the business. Include a brief history of the business in your loan proposal, and detail the current activities. If it's a new business, explain the details of the business that will be developed. Your goal will to be to clearly demonstrate that you fully understand your markets, your competitors, and the industry, including current trends or risks and how you plan to overcome those potential dilemmas. If the loan is for an existing business, include literature that details your products or services, such as current sales sheets, brochures, or catalogs. Include attachments to your loan proposal for this section, such as letters from suppliers, customers, or other business references. Demonstrate through these letters that you provide excellent customer service, and that you pay back your creditors.

4. Business Projections.

Create at least two years' worth of projected income statements and cash flow statements. Your projections should be clearly stated and, most importantly, realistic in nature. Generally, you probably won't need to present the "worst case" or "best case" scenario unless the lender asks for you to write the projections that way. You should, however, be prepared to answer questions pertaining to what you'll do if some of your projections don't work out as planned. For example, if you anticipate obtaining a large, new contract or customer based on improvements made with the business loan, and that contract never goes through, it could change your loan proposal projections drastically.

5. Financial Statements.

Your loan proposal should include both business and personal financial statements. Be aware that the lender will fully analyze the history of your financial statements, calculating all ratios. Be prepared to point out any significant trends you've shown in an introductory paragraph.

6. Loan Purpose.

One of the most important parts of your loan proposal is a detailed description of how you will use the loan proceeds. Have a good understanding of the type of loan that you need, and remember to include the proceeds of the loan in your cash flow projections, as well as the interest in your projected income statement.

7. Repayment Plans.

Repayment plans should also be stated in your financial projections section of the loan proposal, but details of repayment plans should be detailed separately. Propose the terms you want, and prepare for negotiations with the financial institution. The lender will consider a number of factors as they review the overall risk of lending you the money. Understandably, this will impact the repayment terms that they are willing to offer for your business.

Especially if your credit is good, and even if your credit is not so good, remember that in your loan proposal, you are offering the bank a deal that will make them money. Don't go in asking the lender for an "allowance." Instead, enter the interview with your loan proposal objective in mind; namely, focusing on how much money you'll need, and remove the idea of going into the meeting wondering how much they're willing to lend. Never go into a meeting asking for a loan, wondering whether or not they'll lend to you. If this first lender won't approve your loan proposal, have confidence that a different will.