Category Archives for Business Loans

A business loan is a debt that meets the financial needs of a growing business. Whether to expand an existing business or to start a new one, this loan is essential. It creates a debt that must be paid back with interest.

Instead of buying long-term assets, business loans provide working capital to cover short-term operational expenses such as rent, debt repayments, and payroll. In short, working capital loans are corporate borrowings used to finance operations in an organization.

Types of Business Loans

Businesses can choose from different types of loans to get started.

Bank Loans

Traditional bank loans are the most popular option. Bank loans can be either secured or unsecured. Banks take collateral for secured loans and it may be lost upon non-repayment.

Asset-Based Finance

Businesses having a lack of credit rating to qualify for a bank loan can opt for asset-based finance. It focuses on the collateral provided by the company against the loan.

SBA Microloans

The US Small Business Administration or SBA’s microloans are also a good option for a small business owner. They cover debts of USD 100,000 or less. The loan depends on the personal credit score of the borrower.

Invoice Finance

It is an alternative finance option in which a company borrows debt against outstanding invoices. Funds are obtained with the creation of new invoices.

Interest on Business Loan

When a borrower applies for a business loan, it is a promise to pay back actual amount with some interest. Lenders charge this interest as a fixed or a variable amount. While fixed interest rate remains constant throughout the duration, variable interest may fluctuate due to some determinants. There is a specific payback period that the borrower must know.

Qualifications to Apply for a Business Loan or Business Financing

The main qualification to apply for a corporate debt loan is the creditworthiness of the borrower. Other qualifications for seeking business loans are:
• Age of the business must be 6 months to one year.
• Annual revenues in the range of $50,000-$150,000 are essential.
• Personal debt-to-credit ratio must be good.
• Net operating income must be at least 1.25 of annual total expenses.
• Business plan to use the funds.
• Documents like balance sheet, bank statements, revenue statements, personal financial details, and tax returns are needed.

Commercial debt loans
Commercial loans
Business debt loans
Working capital loan
Corporate loan

Bad Credit Business Loans that Won’t Break the Bank

Credit business loans

Bad credit business loans are the best way to finance your business without breaking the bank. If you have a credit score below 630 and have trouble getting financed through more traditional channels, this financing option may work for you. So let’s say that you have a poor credit history.  Lenders then conceive you as a high-risk investment. That means they will charge higher interest rates and offer shorter repayment terms.  All this adds to the degree of a financial Read More

What is a business cash advance?

Get financed with small business loans with bad credit. Woman holding cash.

A business cash advance is a lump sum payment that is taken up by a business in return for a fixed percentage of future credit or debit sales. They’re a smaller, more convenient alternative to traditional bank loans as they are characterized by short-term, regular payments. Enabling a business to sell a certain portion of its future sales in the present makes it easier for small businesses to gather funding in order to pay its operational expenses and to undertake Read More

5 Steps to Get a Bad Credit Loan

Bad Credit Handshake

Bad credit loans are all you think about. You had assumed that opening your own coffee shop would be amazing. You could set your own hours, serve single origin espresso, and really perfect your pastries. But in recent days it’s been nothing but long hours, bills, and a broken coffee machine you spent thousands on. You know bad credit loans are what you need, but you don’t know the first thing about getting them. “I can’t just walk into my Read More

7 Ways to Get a Loan with Bad Credit

Business loans

You’re desperate for bad credit loans – especially since you walked in on Monday to discover that essential equipment is out of order. As you think about all the ways you could scrounge up the cash for repairs, your business partner suggests bad credit loans. “Wait, that’s a thing?” you ask. “Totally,” your partner says. “I was looking at bad credit loans last night when I first noticed the machine was acting up.” You take a seat as this all sinks Read More

How to Get Small Business Loans with Bad Credit

Small Business Loans Bad Credit

Bad credit is the biggest financing hurdle for small businesses. It is one of the most common grounds for traditional banks rejecting small business loan applications. But all hope is not lost for those seeking small business loans with bad credit. In this article, we’ll tell you about the options you have to get the funding you need despite the bad credit. Financial lenders consider bad credit loans a credit risk. Credit score is a measure of your creditworthiness. To Read More

You Can Get Small Business Loans with Bad Credit

Small Business Loans Bad Credit

If you have a bad credit score, trying to get small business loans could be a bit difficult. As such, banks do not cater SBA loans to startup companies. They require a couple years in business or, when do they lend to startups, they generally expect the business owners to have experience in the industry. As a startup or small business, it can be hard to raise capital. However, having a low score does not stop you from getting your Read More

Yes, Bad Credit Business Loans Exist

Bad Credit Business Loans

Yes! Bad credit business loans exist and you can get one, too. Running a business is no easy feat. And it becomes even tougher when you are in need of funds but have bad credit. One of the major financial hurdles businesses face today is cash crunch. Bad credit only amplifies the challenge of financing. But can a business get a business loan with bad credit? How do Business Loans with Bad Credit Work? Although a poor credit score makes Read More

Struggling? Try a Bad Credit Business Loan

Bad Credit Business Loan

If your business is struggling, it just may be time to try bad credit business loans. When you have bad credit, it becomes virtually impossible for you to get a business loan approved from the bank. In fact, even when bad credit does not translate in to bad revenue, running the business on a day-to-day basis becomes an uphill task. So how then do you get funds? Bad credit does not necessarily mean a business is a total loss. Lenders Read More

California Wildfires: Help Rebuild with Financing and More

California Wildfire Damage

There are plenty of out-of-state companies migrating to assist with the California wildfires. These companies typically have higher costs to assist with the issues: relocation, equipment, housing, etc. However, First Capital Business Finance is different. If you’re a contractor helping California wildfire victims rebuild, First Capital can help you with affordable options. We’re here to help with equipment financing and more to help you get back on your feet. California’s Camp Fire is now 100% contained, according to local officials, but Read More

How to Refinance Your Working Capital MCA Loan

Merchant Cash Advance

How to Pay Off Your Merchant Cash Advance (MCA) Loan If you are looking for a solution to get out of your working capital loan, we have a new creative funding solution that might be able to help! Many business owners have recently obtained Merchant Cash Advance loans (MCA). They’re also referred to as short-term business loans, work capital loans, and business cash advance loans. The majority of these types of loans require the business to make daily payments, which Read More