Monthly Archives: September 2019

How To Get Business Loans For Small Start-Up Business

There are a lot of loan options available for small businesses today. The easiest type of loan to secure is unsecured business loans. This is not really a loan. It’s more like a business credit card. So if you do have good credit or good credit partner or a guarantor, you can get five times the amount of money from whatever your highest credit limit account is now.

Business Loans for Small Company

Look at your credit report. Whatever is the highest limit you have on a credit card is, you could typically get unsecured financing fives times that amount of money. You can get approved regardless of your company size. Also, the rate starts at 0% so this is perfect to start a business because you can get a zero percent rate for generally six to eighteen months. After which, your rate will follow a normal credit card rate.

You can also get approved without your financials. If you are not a start up and you need a no-doc type of loan, unsecured financing is the best way to go.

Asset-Based Loans

This is another type of small business financing. You can get this regardless of your company size. These loans use assets as the main factor for approval. Rates are usually five percent or less or even as low as one percent regardless of your credit score. You can get approved if you have 401k or stocks, inventory, equipment, real estate, or book of business including purchase orders or account receivables. So regardless if you are a small business, you could still get approved for this type of financing. Depending on the value of your assets as collateral, you can get large amounts of money.

Business Credit

Business credit is another great option because any company, regardless of size can get business credit even if you are just opening your business. There’s no personal credit check required. So if you have consumer credit issues, this can be a great option for you. It takes about 6 months total time to get approved for business credit cards with limits of $10,000 or higher. These are visa-mastercard type of cards. Amongst that 6 months, you are also getting approved for vendor credit and store credit.

Bottom line

There’s a lot of funding options available for large and small businesses but they all need cash flows of $10,000 or higher monthly cashflows to qualify. This is includes cash advances, private money, conventional loans, SBA alternative loans. All these become available to you when you have revenue in tax returns. So even if you are a small business if you have tax returns and bank statements to show deposits of $10,000 a month or more, even proof of small amounts of profit and gross revenue, then this opens up a lot of other funding options.


Debt Management – How To Avoid Delays And Defaults

When the unforeseen happens, such as getting into a car accident, some have enough funds to cover any expenditure the accident may have brought. However, some may be financially tight that the only way to pay for such expenses is to take out a loan. For example, the American Pride Car Accident Loans offer car accident loans to help individuals get by after a vehicular accident or perhaps until their case related to the accident is resolved.

Many people think that taking out loans could turn into a financial burden. This could be true especially if the loan is used on irrational things. On the other hand, if one uses their loan wisely and are able to manage debt well, obtaining loans could be beneficial.

Debt Management – Avoiding Delays and Defaults

No matter how small or big a debt is, everyone must learn how to manage it for it not to spiral out of control. Here are a few things you could do to make sure you avoid delays or defaults on your payments and to keep your debt at minimum and/or be debt-free.

Name Your Creditors and How Much You Owe

Come up with a list of all your debts, along with the name of the creditor, the entire amount you owe, monthly repayment, as well as the due date. You could utilize your credit report to verify the debts that you have on your list. Having a list allows you to have an idea of the wider and complete picture of what you are obligated to pay. Make sure to periodically check and update your list.

Pay Bills and Debts Regularly and Promptly

Deferred or overdue payments will make it more difficult for you to repay your debt because you will be obligated to pay late fee for each missed or delayed payment. If you fail to pay two consecutive payments, finance charges as well as interest rate will likely increase. If you could pay earlier, then do so. Don’t wait for its due date.

Pay at Least the Lowest Payment

In the event that you couldn’t manage to pay for more, at least pay the minimum amount. It may not aid in making actual headway repaying your debt, but it would retard your debt rising and maintain a satisfactory standing of your account. Often, missing a payment will make it more troublesome for you to catch up and could lead to default.

Determine Which Debts is to be Settled First

Usually, to first pay off credit card debts the top tactic as they carry higher rates of interest compared to other debts. Make use of your list to rank and prioritize which debt to be paid off first.


Options for Getting Financial Assistance either Personal or Business

Every businessperson knows the importance of having easy access to financial services to keep their business afloat. Aside from that, it is vital to be mindful of its types. That way, if you fail for one, there’s a backup where you can go to. On the other hand, what are exactly these types of financial services that can be applied for?

Financial Services Available

First stop will be the Equity Capital. This is otherwise referred to as net worth or book value. This is a figure that is representing the assets of the company minus the liability. There are businesses that are entirely funded with equity capital, which is the cash invested either by the owners shareholders into the company with no offsetting liability.

Despite the fact that it is the more favored capital by majority of businesses as they do not need to pay it back, it is unimaginably expensive. Furthermore, it demands strenuous workload in growing the enterprise if they’re funded in such a way.

Then we have Debt Capital. This kind of capital is the money given as form of loan to business with agreement that it should be paid back in the date discussed. In the meantime, the owner of capital which is usually a bondholder, bank or a wealthy person, they agree to accept interest payments. This is in exchange for making use of their finance.

Think of the interest as cost of rental or the capital needed in expanding your business.

Easy Expansion

For various businesses, debt could be the simplest way in expanding the business. It’s for the reason that it is easier to access and understood by average workers. This is thanks to the widespread homeownership as well as community based nature of the bank.

The profit for business owners is basically the difference between cost of capital and return of capital. For instance, you have borrowed a hundred thousand dollars and paid 10% interest yet, earned 15% after taxes. Your 5% is the profit or equivalent to 5,000 dollars. This would not exist without the business borrowing a debt capital. This may just be ideal when you want to see progression in your cryptocurrency by buying personal tradelines for sale.