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

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

5 Ways to Preserve Capital During Slow Times

Ways to Preserve Capital During Slow Times

During slow times, many businesses focus on preserving capital rather than taking out bad credit business loans (although loans can still be a smart option). However, the emphasis is usually on asking for rent relief and putting a hold on vehicle insurance. Here’s a look at these two approaches and three other ways to save money. 1. Ask Your Landlord for Rent Relief Communicate with your landlord sooner rather than later about rent relief. Landlords appreciate having the time to think through Read More

The 6 Top Construction Equipment Loans for Bad Credit 2020

Construction Equipment Loans for Bad Credit

A construction equipment loan is a great way to obtain the capital you need to purchase the equipment for your business. However, if your credit is that great, you may fear that a loan is out of your reach. Fortunately, some lenders recognize unforeseen circumstances that can blemish the credit of even the most promising small business owner. These are six of the best options for bad credit business loans. 1. Overall Top Option for a Construction Equipment Loan  Small business Read More

The Importance of Working Capital for Construction Companies

Working Capital for Construction Companies

Access to working capital plays an indispensable role in a business’s survival and growth. To ensure there is always cash in hand, proactive companies use elaborate cash flow forecasts to determine what they need money for and when. Some also rely on relationships with a construction equipment loan provider to spread out the initial cost of any equipment investments they need to make. Why Your Company Needs Working Capital The importance of any asset in business is directly tied to Read More

How To Keep Your Small Business Healthy After an Unexpected Disaster

emergency financing for a natural disaster

As a small business owner, your company, employees and customers are more than numbers on a sheet. They’re important to you. That’s why you always go the extra mile to take care of them. Unfortunately, natural disasters and other emergencies can take even the best owners by surprise. How can you keep your small business healthy when the going gets tough? Small Business Needs To Prepare For in an Emergency Preparation makes you more adaptable in the case of natural Read More

What You Need to Know About Asset-Based Lending for Medical Practices

Equipment loan. Providing quality healthcare for patients. This often means managing updated technology and installing latest medical equipment in a facility.  Many times when there is need of expansion or renovation; and capital expenditure on equipment may not be feasible due to the high cost of medical assets or a tight cash flow situation.  What’s more… According to a study conducted by National Small Business Association (NSBA), one-quarter of small business owners accept that they can’t find the required funds for their Read More

The Ultimate Guide to Trailer Financing

Trucking can be a profitable business to get into — but getting started in this industry? That takes resources. Financing and funding to kickstart or expand your trailer business ought to play a central role in your strategy. Prior to making a decision, know that buying tractor-trailers are expensive. Manning, equipping, and maintaining an entire fleet of them can be difficult, especially when you’re just starting out. Fortunately, there are designated truck, trailer, and equipment financing options that can help. Read More

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