Tag Archives: Loans


Small Business Loans are a Big Deal – It Will Make the Difference

Getting a small business loan is a big deal to a small business. It can mean the difference between being able to continue operations or have to shut down, or it can provide the necessary funding for a successful small business to grow or expand to the next level. A small business loan can also help a business overcome temporary market conditions and help it weather the storm until calmer conditions come back again.

A few important things that every small business owner should know about a small business loan. First of all it is not normally possible to get a small business loan from a bank or credit union in the first two years of operation. That’s because the failure rate for small businesses is greatest during this period and unless a business can provide security guarantees in the form of cash or property a small business loan may not be the best place to seek financing for the blossoming enterprise.

Secondly the bank or lending institution is much more vigilant about granting a small business loan than it is with other forms of credit like car loans or mortgages. That’s because they have little to seize if there is a default on a small business loan since almost all of its capital resources have already been allocated to make the business survive. They have a double set of criteria that a small business must meet in order to get a small loan, the ability to pay or repay and the creditworthiness of the business itself.

Thirdly, the bank wants to not only know that the business is or can be successful before they hand over a small business loan. They also examine the personal financial situation of the principals or owners of the enterprise to ensure that their credit record is both established and free from any unfortunate circumstances like previous bankruptcies or defaults on previous loans, personal or professional.

Once theses hurdles have been overcome, the banks, credit unions and other financial institutions are more than happy to offer assistance to their small business neighbors in the form of a small business loan or business line of credit. They also realize that successful businesses generate revenues and they want to ensure that the small business continue to take advantage of their services as their businesses grow and prosper.

Applying for a small business loan can be a nerve racking experience for even the best small business owner, but if you do your homework and make a solid business case then there’s nothing really to be afraid of. You simply do your best and follow the process and then like a hundred of other aspects of small business life you wait and hope for a positive solution to just another small business problem.

David Gass is President of Business Credit Services, Inc. His company publishes afree weekly e-newsletter on Small Business Consulting at their web site http://www.smallbusinessconsulting.com

Small Business Administration Awards Luncheon
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Image by MDGovpics
Small Business Administration Awards Luncheon. by Jay Baker at Baltimore, Maryland

Related Small Business Articles


Small Business Loans – Know the Requirements

Every American dreams of having their own business and while most of us will never be corporate giants, many of us can more easily achieve the goal of having our own small business. It will certainly mean a dedication of energy and a commitment of long hours to make this dream a reality, but what most of us don’t realize is that it will also require a small business loan. We may need some initial funding to open the doors on our new hardware store or barber shop or we may require a small business loan to keep our gardening center operating through the long winter season.

Whatever the reasons for our small business loan there are certain requirements that any bank or financial institution will ask us to meet before they lend us back some of the money that we have deposited with them over the years. Those requirements can be summed up as being eligible and creditworthy in the eyes of the banks and financial institutions. Once we can do that we can then be eligible for a number of forms of small business loans in order to be successful entrepreneurs.

The Small Business Administration of the federal government is one source of funds for small business loans. They make available guaranteed amounts of money for banks to provide to small businesses who meet the criteria noted above. One of the most common small business loans is called a 7 (a) loan. This refers to section 7 (a) of the Small Business Act and authorizes the agency to provide a series of financial assistance options to owners of small businesses. Banks and other commercial lending institutions can access these funds to provide them to eligible small businesses and while the bank lends the money, the Small Business Administration guarantees payment if the lender defaults on the loan.

To become eligible for a small business loan the business must be able to show that it has the capacity to pay back any monies that are borrowed. That means that a company must be able to show proof of revenue and customers to the bank in sufficient quantities that they can no longer continue to operate but can also pay back any monies borrowed at the same time. Once this information is presented to the bank they can then make a judgment on the eligibility of the small business loan request.

The second criteria, being creditworthy, is a little more complex and involves research by the bank on the company and its principals to see if they have a proven track record of paying their bills in the past. One document that may be requested is called a “Statement of Personal History” from each owner or operator of the company to verify this information.

David Gass is President of Business Credit
Services, Inc. His company publishes HREF=”http://www.smallbusinessconsulting.com”>a
free weekly e-newsletter
on Small Business
Consulting at their web site


Small Business Administration Awards Luncheon
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Small Business Administration Awards Luncheon. by Jay Baker at Baltimore, Maryland

Get from entrepreneur to business owner quickly. Make more money & have more fun. Use Online Sales Pro to generate leads for your business online. http://SuccessSystems.OnlineSalesPro.com/OSP-1
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How to Find Small Business Loans?

Getting small business loans has become rather difficult for business owners in the current time when the economy continues dropping and the criteria for qualifying for these loans has also been tightened by banks. However, for businesses in need of business finance in desperate times when funds are essentially needed, numerous problems have been caused for business owners because of this situation.

However, the appearance of other types of small business has caused other options to become available for business owners and fortunately even if business owners have a poor credit, they can still apply for these small business loans.

Micro loans are another name for small business loans and it is possible to obtain them as business financing for a new or an existing business. As suggested by the name itself, owners of small enterprises are ideal candidates for availing such small business loans or micro loans. There happens to a particular maximum limit of the amount that can be provided by these small business loans schemes. Small business owners can use the funds obtained as small business loans for starting up a new business or promoting their current established business.

Business owners have the options of investing into premises for their small business, or buying equipment, fixtures, furniture, machinery and other stuff related to the business from the business finance obtained from small business loans. Inventory flooring, business renovation, improving leasehold and construction are some of the other business related tasks that can be accomplished from the funds of a small business loan. For running a business enterprise, business owners can even use small business loans as working capital.

Non-profit organizations usually get funds from the SBA or the US Small Business Administration. The funds received by these lending institutions are then forwarded to qualifying candidates, i.e. the owners of small or budding businesses, in the form of small business loans. Unlike big loans, where mortgage has to be provided for availing them and usually 30 years is the average long term span, the term of small business loans also happens to be shorter.

5 to 6 years, depending on how discrete the local lenders are, is the usually loan term period for small business loans. Some kind of collateral essentially has to be placed when getting small business loans and business owners also have to present a personal guarantee to qualify as well. Certain business training and planning requirements also have to be complied to when small business loans need to be obtained and only the application for these business loans considered.

People wanting convenience and variety when choosing small business loans would be fully satisfied by the business loans that comes through Merchant Cash Advance The business loans that comes from the company have always been appreciable for the fact that they can conveniently obtained with ideal terms and conditions. The Merchant Cash Advance variety of business loans have always ranged from numerous types, all unique and innovative from the other, giving you a wide possible choices and a huge variety.

The writer is an expert in small business loans, merchant cash advance and works with merchantcashadvances.org

Rio Dulce GCA – Morning Fog 03
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Image by Daniel Mennerich
Río Dulce ("Sweet River") is a river in Guatemala, completely contained within the department of Izabal. It is part of a lake and river system that has become a popular cruising sailboat destination.

The river begins at the point where it flows out of Lake Izabal. At the entrance to the river there is a small Spanish colonial fort, the Castillo de San Felipe de Lara, built to stop pirates entering the lake from the Caribbean when this part of Central America was an important shipping staging point.

Just after the river flows from Lake Izabal it is spanned by one of the biggest bridges in Central America. On one side of the bridge is the town of Fronteras, commonly referred to by the name Río Dulce, the local center of commerce for the area. Fronteras has a local vegetable market, attracting locals from the countryside who arrive in dugout canoes. Most of these boats are powered with Japanese outboard motors but many come to market day paddling these cayucos by hand. On the other side is the town of Rellenos.

From Fronteras the river flows east for a couple of miles. In this stretch there are several marinas and resorts. The river then flows into a long narrow lake called El Golfete. This lake has an island and a large natural anchorage. A few houses and a couple of small businesses line the shore. El Golfete is about 16 km long and a couple of miles wide.

From El Golfete the river meanders for 10 km in a spectacular gorge. The sides of the gorge rise up to 91 m on either side and are covered with teak, mahogany and palms. Wild flowers bloom throughout the foliage and howler monkeys and toucans can be seen. Waterfalls flow over the lip of the gorge after rainfall.

The river enters the Caribbean Sea near the Garifuna town of Livingston.


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.

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

Small Business Administration Awards Luncheon
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Image by MDGovpics
Small Business Administration Awards Luncheon. by Jay Baker at Baltimore, Maryland

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