Credit score is the number one factor for obtaining a small business loan. It’s the first thing most financial institutions look at when determining approval. Other factors, like annual revenue and time in business, are also very important but won’t play as big of a role as personal credit score. Without excellent credit, it is […]
When banks were the only source of business funding, small business owners had just a few products to choose from. There was the traditional business term loan, a business line of credit, and that was about it. Today, however, there are many more options, such as the short-term business loan. Like any other business financing […]
The process of obtaining a small business loan is often categorized as “daunting” or “intimidating.” This is largely because there are so many things someone can do wrong before applying for funding. One mistake can result in rejection, a hazardous partnership, or default. But if you can avoid these mistakes, you should have no trouble […]
The terms bookkeeping and accounting are often used interchangeably. This is confusing but understandable. The jobs of a bookkeeper and an accountant are very similar. Both of them help small business owners manage their finances. Both of them tend to work together towards the same goal. But it’s important for small business owners to know […]
Auto repair shops are among the very few businesses with almost no risk of becoming irrelevant or losing traction. People will always need to get around, which creates a steady stream of demand. You can reap the full benefit of this demand as long as you have enough cash to serve your customers and cover […]
SBA Loans are among the most coveted types of small business loans on the market. Much like a traditional bank loan, the borrowing limits are high, the terms are convenient, and the interest rates are on the lower side. But only certain businesses can qualify and some widespread notions about SBA Loans may actually be […]
Arguably the most confusing part of shopping for small business loans is comparing numbers. You can only make a decision after understanding the rates and fees for each option. This process becomes much less stressful when you are aware of every numerical figure that affects the cost of the business loan. It’s crucial to know […]
You may have heard about the frighteningly high default rate for bank loans. This figure would probably be a lot lower if more previous borrowers understood that a business term loan might not have been the best option for their circumstances. While a business term loan is arguably the most advantageous type of business loan, […]
Perhaps the most impressive achievement of the modern business financing industry is making business loans available for borrowers with bad credit. In the past, a personal credit score below 700 usually meant you were out of luck in regards to your small business loan options. While a decent credit score might have gotten you approved, […]
Cash flow issues are the most popular reason for small business failure. While every business has its own financial circumstances, the majority of businesses that fall to cash flow issues likely have at least one thing in common: They didn’t make enough moves early on to prevent these misfortunes. The first few years of any […]
