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

Tips To Qualify For a Startup Business Loan with Bad Credit

Bad Credit Business Loans

Entrepreneurship is risky, and all ventures require some form of capital investment. In the earliest stages of business, owners may tap into their credit and savings to give their businesses a headstart. These and other factors can severely impact your personal and business credit. Even so, there are lenders who are willing to take a chance on riskier businesses and lenders. The trick is knowing how to get a business loan with bad credit. How To Get a Bad Credit Read More

How To Get A Small Business Loan With Bad Credit

Bad credit history report

Applying for bad credit truck loans, equipment loans, and similar programs is an excellent solution for business owners facing credit issues. Here are six important steps for success. 1. Evaluate Your Options Whatever the cause of poor credit, there are small business loans you can qualify for. Maybe you’ve been asking, “How to get a business loan with bad credit?” Because small business loans are specifically designed for businesses with bad credit, it’s much easier to get approved. These options still provide low-interest Read More

The Business Owner’s Guide To Equipment Financing Bad Credit

excavator heavy equipment

If your goal is to obtain valuable equipment for your business, equipment loans for bad credit programs are an excellent way to make it happen. There’s no need to save up for years to get the equipment your business needs right now. With the right financing, you can invest in state-of-the-art equipment that gives you an edge over competitors. Here is everything you need to know to get started. Why Is Equipment Financing Important for Your Business? Using capital to purchase or lease equipment Read More

6 Ways Equipment Financing Can Grow Your Business

Construction Equipment

Equipment financing is a powerful tool for generating business growth. All business owners want their companies to grow in revenue, and there are many ways to make it happen. High-quality equipment gives your company important advantages, such as: Superior productivity Reduced costs Increased sales Larger customer base Better online reputation By providing superior service and attracting more clients, your business can increase the number of profits generated. Expand your company by leaps and bounds with these six types of equipment: Read More

Top 10 Industries Bad Credit Business Loans Can Help

Top 10 Industries Bad Credit Business Loans Can Help

Bad credit business loans help many small businesses get the financing needed for success. What is a poor credit score? Generally, a credit rating under 600 makes it difficult to find an approval for traditional loans. You can still get business funding with bad credit. Contrary to what you may think, you don’t have to accept absurd interest rates to qualify. All you need to do is select financing designed specifically for businesses with past credit issues. 10 Industries That Benefit From Bad Credit Business Read More

Best Bad Credit Business Loans for 2020

Bad Credit Business Loans

Most business loans are based primarily on credit or may be based on a combination of credit and collateral. This can be a problem for new businesses that don’t have established credit or collateral. Fortunately, there are financing alternatives available for those who don’t meet strict bank lending requirements. You may find bad credit business loans that practically anyone can qualify for. At First Capital Business Finance, we offer a variety of business loans for bad credit. Below are a few of the Read More

Bad Credit Business Loans and Other Ways First Capital Business Finance Can Help Your Business During COVID-19

Bad Credit Business Loans During COVID-19

If you need bad credit business loans or other financings to help you recover from a temporary closure, supply problem, business slowdown, or other issues caused by the COVID-19 pandemic, First Capital Business Finance is here to help. We will help your business get through this difficult time and come out stronger on the other side. If your business needs assistance, consider these five ways First Capital Business Finance can help. 1. Bad Credit Business Loans If you’ve seen a drop-off in sales due Read More

How Bad Credit Business Loans Can Help You Grow Your Business

How Bad Credit Business Loans Can Help You Grow Your Business

Bad credit business loans can help you get the cash you need to grow your business. If you have poor or limited credit, or have been in business for less than two years, our financing options can help your business in a variety of ways. Maintain Control of Your Business If your business needs more cash, you may be considering bringing a partner on board or selling equity shares in your business. Business loans for bad credit can help you get the money you Read More

Bad Credit Business Loans: One of Four Main Solutions Business Owners Now Turn To

Main Solutions for Business Owners

More business owners across America are considering bad credit business loans as they face unprecedented financial and logistics struggles. These struggles followed state orders that shut down non-essential businesses to keep more people at home. To maintain some income, many business owners were forced to get creative, seek out disaster relief, or both. Where government assistance programs have failed, some people tried to fill the gap with business loans for bad credit. Banks across America now face accusations from customers and Read More

Keep Your Company Afloat During Quarantine With Bad Credit Business Loans and Other Resources

Keep Your Company Afloat During Quarantine

Bad credit business loans are an important resource for any struggling enterprise, but they’re especially valuable during these unprecedented times. With the pandemic threatening lives and livelihoods, we as an economy have had to shift our business structures to adjust. As the illness continues to threaten the country, here are a few ways to keep your company running. Where To Find Clients For many retailers, walk-ins are their bread and butter. However, with storefronts closed, how are you supposed to draw in new Read More