From understanding loan types to breaking down the process of funding, we offer a treasure trove of helpful articles for business owners of all sizes. Read on to learn how to maximize your business and minimize your frustration.
Before applying for a loan for your small business, you need to prepare the documentation that lenders want to see. Although you have many different choices of lenders, from banks and government-backed lenders to private lending companies and peer-to-peer options, most ask for the same types of information.
Bad credit is usually the result of not paying your bills on time repeatedly, whether that means credit card bills, mortgage payments, or both. Those who have bad credit have a hard time obtaining loans for the big purchases that have become necessities in life today, such as cars, and landlords may be wary of signing a lease with someone who has a low credit score.
Small businesses are known for struggling through their first few years of being in business. These companies are more likely than their larger counterparts to fail within the first five years, and overwhelming debt is often the culprit for closures.
Borrowing money is standard practice among small businesses, particularly during the initial stages, and when a company flounders at any point along the way to financial success. The adage, “it takes money to make money” is true – and rarely do people have the private funds to finance their endeavors or pay for the necessary hurdles that can thwart an up-and-coming business.
You have a great business idea. You’ve done the research, drawn up a business plan, and chosen the perfect name for your company. Now comes the hard part; funding your startup. For many entrepreneurs, financing their new business is one of the most intimidating parts of the startup process. In fact, according to Entrepreneur.com, 79% of failed business owners cited “starting out with too little money” as one of the causes of their failure.
Whether you're starting a new business and need funds to help cover your startup costs, or need extra capital to expand your existing small business, a small business loan can provide the money you need. The following guidelines, set by the Small Business Association (SBA), will help you determine if you qualify or a small business loan.
Congratulations, you have a great business idea. You've even done research on how to get started. Now you need to figure out how much it will cost and how you will pay for it. Many entrepreneurs underestimate the cost of starting their business and this leads to failure for many new small businesses.
Most small business owners need a loan at some point. As your business grows, your need for funding does not diminish. Whether you need to hire additional employees, want to introduce a new product or service, expand your facilities, or purchase new equipment, growing your business requires capital.
As a small business owner you are likely to require a small business loan at some point, whether to help start or grow your business. Small business loans are meant to help your business succeed. However, like all loans, they need to be repaid. It’s important to borrow only what you are capable of paying back.