When It’s Your Only Option
If an easy small business loan is the only type of loan that you qualify for, then itâs time to think realistically about the nature of the loan.
Taking on debt is a huge decision, even more so when the debt is as expensive as easy business loans normally are. As such, youâre going to need to ask yourself if this easy business loan is completely necessary for you to take. If it is, and itâs the only option you qualify for, and you feel confident that you will be able to pay it back, then you should move forward with an easy business loan.
In many cases, an easy business loan now could be a stepping stone to better, longer business loans in the futureâgranted that you use the first, easy small business loan responsibly and improve your qualifications.
How To Get A Small Business Loan
Getting a business loan is an art that needs to be carefully researched to get right. There are so many options that it can be very easy to make the wrong decision. Pinning all of your dreams on a 3-month loan application that gets rejected could have catastrophic consequences for your new enterprise. Thankfully, there are some well-trodden paths that you can follow to acquire the right business loan.
How To Get A Small Business Loan With Bad Credit
- Vendor credit and equipment financing
- Small business administration loan
- Invoice factoring
- Merchant Cash Advance
- Short-Term Small Business Loans from Alternative Lenders
If you are still worried about how to get a business loan with bad credit then dont give up. Opt these simple ways to get bad credit business loans
Vendor Credit and Equipment Financing
If you need financing to purchase items for your business to sell, such as raw ingredients for a restaurant or clothing for a store, then the vendors who sell them may be willing to provide those items on credit. The purchasing business can open a line of credit with the vendor and pay back the vendor once all the items have been sold or used to produce revenues.
Businesses purchasing equipment can use an arrangement that works similar to financing a new car. They pay a percentage of the price as a down payment and pay the remainder of the balance in installments.
These two forms of credit are relatively easy for a small business to come by because they are secured with collateral. If the purchaser cannot repay, the vendor simply takes the items back.
Small Business Administration Loan
The SBA will also expect all of the documents listed above as well as a personal resume, work history, and possibly even a personal bank statement. Not every business can produce these documents out of thin air, especially if theyre brand new, so these demands can be a barrier.
Merchant Cash Advance
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When Is It A Good Time To Take Out A Business Loan
It’s been said that the best time to get a business loan is before you need it. Having strong sales and healthy cash flow boosts your odds being approved for a business loan. If you don’t need capital now but know you will need it in a year or so, now is the time to start researching loan options.
Good reasons to get a business loan include:
- To buy assets that will add long-term value to your business or help to increase your revenues. Paying cash for equipment, machinery or real estate ties up funding you need to run your business. As long as the purchases are good investments, using a business loan to buy them makes sense.
- To expand your business. Using a loan can help you finance expansion without draining working capital from the business.
- To better manage cash flow. If you have customers who take 60, 90 or even 120 days to pay you, or you’re in a seasonal industry with predictable slumps, a business line of credit or invoice financing can help you meet your working capital needs.
- To help build your business credit score. Getting a business line of credit and using it responsibly can help a new business build a business credit history. Just make sure that the lender reports your payments to the major business credit bureaus: Experian, Equifax and Dun & Bradstreet.
Do You Make Enough Money
Many lenders require a minimum annual revenue, which can range anywhere from $50,000 to $250,000. Calculate your revenue and find out the minimum a given lender requires before you apply.
You lack time in business.
You need funding quickly.
Online lenders provide small-business loans and lines of credit from about $1,000 to $5 million. The average annual percentage rate on these loans ranges from 6% to 99%, depending on the lender, the type and size of the loan, the length of the repayment term, the borrowers credit history and whether collateral is required.
These lenders rarely have APRs as low as those at traditional banks, but approval rates are higher and funding is faster than with banks as fast as 12 hours.
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Manage Seasonal Gaps In Cash Flow
Industries like retail, manufacturing, and transportation have seasonal trends that can hamper cash flow in some months. You can either scale down your team and expenses, which is not realistic to do each year, or you can bridge the gap with a quick business loan. A short term loan gets your company back on track to succeed when the seasonal downtrend passes.
Want To Check Your Eligibility Before You Apply
In many cases, we can let you know upfront whether youre likely to get the business lending you want with no impact on your credit rating. If you already have a business account with us, you can log in to see any business lending limits you have.
If you dont bank with us, or cant access Online Banking, you can check your eligibility before you apply.
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The Top Easy Small Business Loans
For small businesses looking for capital, its been a good year. Small banks are approving nearly half the small business loan applications they received this year, according to a November 2019 article in Forbes. Big banks are approving 28% of loan apps for the first time since the recession, according to online funding arranger Biz2Credit. On top of that, the Federal Reserve cut interest rates again for the third straight time in 2019.
That means the cost to borrow money is lower and it makes more money available.
Big banks, community banks and are options, but many small businesses are turning to online lenders for:
- Flexible lending criteria
- An easy application process
- Fast access to cash
Applying online through direct lenders or peer-to-peer lenders can get money in your hands quickly. Most require only simple loan applications and basic information about your business. They will give you a quick review and, if approved, often fund loans within 24-48 hours of approval.
- What Is Business Finance?Read article
- The State of Online Business Lending: The Feds Small Business Credit SurveyRead article
Determine The Types Of Costs
As you embark upon your entrepreneurial journey, you need to differentiate the many expenses you will encounter – not just the dollars and cents. There are different types of expenses you will have, so lets explore:
- One-time expenses: These are mostly what you will pay during the initial phase, such as a business registration or a licence.
- Fixed expenses: An ongoing outlay is something that you will pay every month, like utilities or rent.
- Essential expenses: An essential cost relates to anything critical to the growth, development and success of your company.
- Optional expenses: An optional purchase should only be executed if you have enough in your budget and you think it can help the enterprise in some capacity.
- Variable expenses: A variable receipt is an expense that you will pay every few months or so. Think of it like a haircut: youre not getting a haircut every month, but you will get one perhaps every two or three months.
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Fast Loans: Small Business Financing In Months
- SBA loan: A government-backed loan with A-list name recognition. SBA loans are beloved for their enviable rates and loan terms.
- Business term loan: A classic. The loan most people think about when they say small business loan.
- Commercial mortgage: Financing for your office, storefront, restaurant, or other commercial property. Use it to buy, build, expand, remodel, or refinance.
- Business acquisition loan: Need capital to purchase an existing business or franchise? Look no further.
Our Fast Business Loan Options
Every company is different and deals with its own set of unique financial circumstances and challenges What works for one company may not work for another. AdvancePoint Capital lenders understand that you need an individualized financial solution that fills your businesss situational needs at that specific time. Our choices for a fast business term loan are diverse and can provide financial solutions for a wide variety of industries with a simple application process.
Our knowledgeable live agents are available 24 hours a day, every day of the year, to listen to your concerns and offer you fast and easy business term loans and lending solutions with terms that will work for you. We work with business owners in nearly any industry to uncover valuable term loans, SBA loans, merchant cash advances, lines of credit, and other financing options like a credit card.
Our wide array of quick and easy solutions can be used for nearly any business need and can help you get funded today. With simple paperwork and a streamlined process, our agents will help determine if your business needs can be met through alternative small business loans such as:
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S To Get A Private Mortgage In Simple Step
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How Will My Application Be Evaluated
We understand that your personal credit score isnt necessarily representative of the health of your small business. Thats why we take a holistic view of your business, evaluating your application differently than a bank would. We incorporate a variety of factors into our decision model to determine your eligibility and credit limit.
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How To Get A Business Loan In 6 Simple Steps
Heres how to get a business loan. Learn how banks assess you. Know the factors to creditworthiness. Decide what type of loan you need.
Every business, irrespective of its size may need a business loan to help boost its growth, profitability, and Return On Investments . Whether you want to start or grow your business, business loans can go a long way in helping you achieve your financial goals.
Getting a business loan is not as complicated as you think it is. With the right knowledge of the business loan process and its requirement, you will find it easier to navigate the loan process and lending standards.
In this article, you will learn everything you need to know to get a business loan in six simple steps.
Lets get started.
When Speed Is Everything
Even if you and your business are qualified to borrow, you might find yourself in a bind that requires quick capital.
Maybe youâre seeking funding for an exciting but time-sensitive opportunity or maybe youve had a business emergency. Whatever the reason for urgency, an easy business loan might be the only option quick enough to meet your needs.
In this case, you should again take a moment to consider if the quick extra capital that this easy business loan promises is totally necessary.
Can you wait a little longer? If not, move forward with securing your easy business loan, use it to solve your immediate funding needs, and re-evaluate for refinancing in the future.
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Six: Fill Out The Loan Application
Filling out a loan application can be another laborious task. But if you have successfully done the previous step, then it should be much easier for you. Once the necessary documents are gathered, it is easy to fill out the application and submit it. Expect an approval message between the next 24 hours to three months depending on the type of loan you applied for.
You start loan applications with the basic information. In this section, you will have to provide your name, business name, phone number, and the legal structure of your business. The next set of questions address the type of business you run. You do not need to over-explain, just tell them your sources of revenue, your target audience, and your products.
In the finance section, you will provide your bank account information, i.e. your account number, and your deposit/withdrawal information. Also, lenders might ask you for collateral or personal property to put down in case of non-payment of loans. You have to weigh your options carefully before you choose collateral.
The next section will ask for your business information like business ownership i.e. is it a sole proprietorship or partnership business? You may need to put in some personal information like marital status. Most applications end with information about the agreement of loan amounts.
Extra tip: Carefully go through the document, again and again, to be sure your information is correctly indicated.
Prepare A Detailed Business Plan
Your business plan can be a make-or-break to your loan application. When writing a business plan, include the following elements:
- An executive summary
- Description of products and services
- Overview of the management team
- Detailed financial forecasts
A good business plan should make it easy for your lender to approve your application and give you funds. To get help with writing and refining your plan, new entrepreneurs can consult with local chapters of business associations, such as SCORE or a Small Business Administration regional office near you. You may also want to consult a CPA for help in determining your business structure and in preparing or reviewing the financial forecasts.
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Why We Like Fundbox
Despite its terms having tightened during the last couple of years, Fundbox is still an excellent choice for new businesses. It has a slight edge over BlueVine due to the lower interest rate and lower minimum annual revenue required.
Borrowers must have a credit score of at least 600 and have been in business for at least six months. One improvement over Fundboxs previous offerings is the increase of the maximum credit limit, which is now $150,000. Because this is a line of credit, borrowers can take draws against it as funds are repaid.
|Once approved, funds can be deposited the same day||Borrowers with credit scores below 600 likely would be limited to BlueVines invoice factoring product|
|Because BlueVine uses simple interest, borrowers can save by paying loans back early||BlueVine has a slightly higher interest rate than Fundbox|
|BlueVine has no origination, prepayment, or early repayment fees||While invoice factoring product is excellent, it may not fit the needs of low-credit score borrowers|
Is A Business Loan What You Need
Theres something else we want you to think about is assessing if a business loan is what you need right now.
Here are some good reasons to get a business loan:
1. To grow your business.
Using a loan to expand your business is helpful in the long run since ultimately, you would be increasing your sales and cash flow by having a bigger business.
2. To buy long-term business assets.
Tying up cash to buy equipment or real estate may leave you in a cash deficit.
But if youre using a loan to buy these assets, it can actually be a better setup for you as long as the assets are a good investment.
3. To temporarily improve cash flow.
If youre in a seasonal business with predictable declines, then a line of credit could certainly help you meet your working capital needs.
It may not be a good idea to get a business loan if:
1. Your business has constant cash flow problems.
A business loan will not improve a continual decline in business. You would need to re-evaluate what your business is doing wrong from an operational standpoint.
2. You already maxed out your lines of credit.
Getting more loans will only negatively impact your business credit, and youre less likely to get approved anyway.
Its better to focus on paying down your existing debt before taking on more.
3. You cant find any loan terms that suit your needs.
Theres no need to hastily getting into any financial trouble over loan terms that dont serve you.
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