SmartBiz VS National Business Capital

Smartbiz vs National Business Capital

SmartBiz National Business Capital

$30,000 – $5,000,000

Borrowing Amount

$10,000 – $5,000,000

Up to 25 years

Term Length

Up to 25 years

Up to 4%

Borrowing Fee

Unknown

While it’s nice to have choices, sometimes it can be difficult to narrow your search down to a single, best option. It’s no different when you’re looking for business financing. SmartBiz and National Business Capital both promise to save time and headaches by allowing you to effectively apply to multiple lenders with a single application. Note that neither directly originates loans.

But while they’re both loan aggregator services, there are some notable differences between the two that may help you decide between them.

SmartBiz is heavily specialized toward SBA loans. If you aren’t familiar, the Small Business Administration has a number of programs wherein they’ll guarantee a portion of a business loan for qualified applicants. This can help you access better rates and terms than you may otherwise be able to get without the SBA guarantee. The tradeoff is a longer and more complex application, as well as a longer time to funding. SmartBiz helps you navigate through the red tape while also connecting you to SBA-approved lenders.

National Business Capital can also connect you with SBA loans, but they’re a bit less specialized, also offering unsecured small business loans, lines of credit, merchant cash advances, equipment financing, and startup business funding.

So in this battle of depth vs. breadth, which lender is the better middle man?

SmartBiz National Business Capital

2 years

Time In Business

6 months

N/A

Minimum Sales

$15K per month

650 (personal)
150 (business)

Minimum Credit Score

N/A

Qualifying

Winner: National Business Capital

To qualify for an SBA loan through SmartBiz, you’ll need to have been in business for two years, and have a personal credit score over 650 and a business credit score of 150. You must be a US citizen or legal permanent resident. You also can’t have defaulted on any government-backed loans, have any tax liens, or had a bankruptcy or foreclosure within the last three years.

Since they aren’t dealing exclusively with SBA loans, it’s a lot easier to qualify for National Business Capital’s loans. You’ll only need to have been in business for 6 months and take in at least $15,000 per month in revenue. There are no explicit credit requirements. Even if you don’t meet that benchmark, National Business Capital may still be able to work with you through one of their alternative programs. National Business Capital can work with businesses in all 50 states, Puerto Rico, Canada, and the U.K.

Overall, it’s a lot easier to meet the minimum qualifications of National Business Capital, but if you’re looking for an SBA loan you’ll have to meet guidelines similar to those of SmartBiz.

Fees

Winner: SmartBiz

Since we’re talking about third parties, you’re going to want to know what the convenience they offer will cost you.

SmartBiz charges two fees, beyond those charged by those normally associated with an SBA loan (0 – 3.75 percent guarantee fee and around a $450 fee from the lender): a one-time referral fee, and a one-time packaging fee. Each can cost up to 2 percent of the loan’s amount.

National Business Capital doesn’t divulge much information about their fees, and it’s difficult to get a straight answer from a rep when you ask about them.

Loan Terms

Winner: Tie

The SBA itself sets the acceptable terms for SBA loans, so you won’t find a ton of variation between lenders. Since SmartBiz deals exclusively in SBA loans, there’s not much to compare here. If you’re looking for a non-SBA loan or other financial product, National Business Capital can offer that.

Application Process

Winner: SmartBiz

Both SmartBiz and National Business Capital promise an easy, simplified application process, and both companies deliver. I’m giving SmartBiz the nod here for one reason: their screening process will let you know ahead of time whether or not you’re qualified for their service. This saves you the time of filling out an application only to be rejected down the road. Since National Business Capital is less specialized, they’re more likely to be able to help you, but in rare cases, customers may be well into the process before they discover that NBC can’t help them.

Time To Funding

Winner: National Business Capital

SBA loans can only be funded so quickly. If you need money immediately, SmartBiz won’t be able to do much for you. On the other hand, National Business Capital’s versatility allows them to offer faster products, often within the span of a couple days.

Transparency

Winner: SmartBiz

When it comes to online lenders–and let’s be honest, the financial sector in general–transparency is in short supply. Signing up for a loan is risky. Even submitting your basic information can lead to a future full of annoying cold calls. If possible, you’ll want to know what you’re getting into before you even make contact.

SmartBiz lays out most of what you need to know in a convenient FAQ on an easily searchable website.

National Business Capital, on the other hand, throws around lot of general information about financial products but comes up short on actual rates and fees. There are some calculators you can play with, but they’re not necessarily representative of the terms you’ll be offered.

Customer Service

Winner: SmartBiz

Customer service is usually one of the most divisive topics when it comes to alternative lenders. Satisfied customers will usually be very happy with the service they received, while angry customers will describe it in the most uncharitable terms.

While both companies seem to suffer from some communication issues, overall SmartBiz’s customers have fewer beefs with customer service.

Negative Reviews & Complaints

Winner: Tie

Both SmartBiz and National Business Capital receive generally positive reviews from customers and other review sites, usually within a point or two of each other. Complaints about both companies are typical for alternative lenders, including fees, rejections, and communication problems.

Complaints specific to SmartBiz include unhappiness with the amount of paperwork customers had to fill out. For National Business Capital, a common theme was aggressive marketing calls.

Positive Reviews & Testimonials

Winner: Tie

You’ll find no shortage of satisfied customers for both companies.

Fans of SmartBiz liked the personal touch offered by their representative, the relative speed (for SBA loans) of funding, and the company’s transparency.

Happy National Business Capital customers appreciated the wide variety of options offered, the customer service, and the quick turnaround time on their loans.

And The Overall Winner Is…

smartbiz logo

Specialization has its advantages. When it comes to a third party service for SBA loans, it’s hard to do better than SmartBiz. They take a long, complex process and make it a little less grueling for small businesses while offering a refreshing level of transparency.

Of course, if you’re looking for something other than SBA loans, National Business Capital can help you in ways SmartBiz simply can’t. This is especially relevant if time is a factor.

If you want a deeper look at SmartBiz or National Business Capital, check out our comprehensive reviews.

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APR VS Interest Rate: Know The Difference

When you’re searching for your business’s next credit card—or looking for loans—you’ll often come across the terms APR and interest rate. These pesky concepts represent extra money you’ll have to repay on top of your initial loan amount, but are necessary pieces in the world of lending.

While APR and interest rates share similar roles and can sometimes be used interchangeably, they ultimately mean different things. Understanding these differences will help you make informed decisions and can save you money the next time you take out a loan.

So what is the difference between APR and interest rate? Read on! We’ll break it down below.

What Does Interest Rate Mean?

The interest rate on a loan is effectively a way for lenders to make money when you borrow.

In most cases, when you borrow money and take time to pay off what you borrowed, your lender will charge you an extra amount. This extra amount is called interest. In other words, the interest rate is a percentage charged by your lender that you must pay in addition to the lump sum of money you have borrowed.

Depending on the type of loan you take out, you may pay a fixed or variable interest rate. Fixed rates stay the same for the life of the loan. Variable rates, on the other hand, can change based on the market rate. Most lenders will calculate a variable rate based on the prime rate, a metric published by the Wall Street Journal. If your interest rate goes up, then you’ll wind up paying more interest charges.

In many cases, your credit history will affect your rate. As such, you’ll want to aim to have a high credit score.

What Does APR Mean?

APR stands for Annual Percentage Rate. It incorporates a loan’s interest rate as well as various other charges, like points and fees. Broken down, the APR represents the total cost of borrowing on an annual basis. You’ll frequently see APR mentioned in relation to credit cards, although it still comes into play with traditional loans.

As an example, if you have a four-year loan with an interest rate of 15% and an origination fee of 4%, your APR will be 17.26%. This rate is higher because it accounts for the extra cost of the origination fee. Because it’s inclusive of all fees, the APR provides the true cost of borrowing annually.

With credit cards, the APR is affected by the prime rate as published by The Wall Street Journal. It is usually 3% higher than the federal funds rate, set by the Federal Reserve. In most cases, card issuers will determine a card’s APR based on the prime rate, plus a variable percentage rate calculated on your creditworthiness. Credit card APRs typically range from about 10% to 25%.

To get the lowest APR possible, you’ll want to have a solid credit history. If you struggle with a low score, there are numerous cards that can help boost your credit.

The Difference Between APR & Interest Rate

When it comes to credit cards, there is essentially no difference between APR and interest rate. Credit card issuers are required to state a card’s interest rate as APR (according to the Truth in Lending Act, a federal law enacted in 1968). This makes it easier for consumers to accurately estimate the credit card interest they might owe because APR shows the actual annual rate, whereas an interest rate alone does not account for additional upfront charges.

Note that even though issuers state APR, credit cards may carry extra fees that aren’t included in the official APR. You can often expect fees such as an annual fee, a balance transfer fee, a cash advance fee, and/or a foreign transaction fee.

Depending on the card you choose, however, you may manage to bypass one extraneous fee or more. For instance, many of the best travel cards forgo foreign transaction fees, while numerous other cards feature no annual fees.

When looking at more traditional business loans, however, the APR and interest rate will tell different tales. The interest rate is simply the amount of interest you’ll owe every period. The APR, meanwhile, is inclusive of the interest rate and other fees. These fees could include origination fees, closing costs, maintenance fees, or others.

You’ll want to keep this in mind because lenders aren’t required to advertise APRs upfront. Of course, most decent companies clearly and easily share their APR, interest rates, and other fees so you’ll have the full picture before borrowing.

APR & Credit Cards

You’ll want to consider APR carefully if you don’t intend to fully pay off your monthly credit card balance. This could be because you’ve made a large purchase or many purchases you can’t immediately pay off in full.

You may also need to consider multiple APRs since most credit cards come bundled with a few different rates. The most publicized APR (and the one that affects most people) is the card’s purchase APR. On top of this, there are usually additional APRs for balance transfers and cash advances. You may also see a penalty APR if you fail to make your payments on time.

However, by completely paying off your credit card balance every month, you probably won’t need to bother about APR. This is because most credit cards provide a sizable grace period between purchase date and payment due date. During this grace period, APR isn’t applied to your balance.

Oh, and don’t worry about timely payments negatively affecting your credit score — that is an urban legend. You’ll still be able to take advantage of the credit-building bonuses that come with having a credit card. In fact, paying off your monthly bills is one of the best things you can do to increase that all-important credit score.

Some cards also offer 0% introductory APR for a set number of months after you open your account. This means it might be beneficial to apply for such a card if you’re planning to make a large purchase that you won’t be able to pay off right away.

How To Find A Credit Card’s APR

By United States law, card issuers are required to easily and legibly share important details about the cards they offer. Most details you’ll ever need can be found in a card’s Schumer box, a legally-mandated text document named after U.S. congressman Charles Schumer, who paved the way for the box’s legislation. You’ll usually be able to find all of a card’s APR’s at the top of its Schumer box under a section titled “Interest Rates and Interest Charges”.

If you’re reading about credit cards on Merchant Maverick, we’ve made it quick and easy to spot a card’s APR. In every card info box, we’ve placed the APR under the annual fee on the right side. You can also see if a card has an introductory rate for both purchases and balance transfers by clicking “More card details” beneath the box.

APR & Interest Rate For Business Loans

While a credit card’s APR and interest rate are one and the same, APR and interest rates are more complex in the context of business loans.

As mentioned above, the APR communicates the total cost of a loan over the period of one year. It accounts for the interest rate plus other fees and costs, including origination fees, closing costs, and maintenance fees. In some cases, you may see these fees called “points”.

This means that a loan’s interest rate alone doesn’t tell the full story. You’ll want to double-check to find out if there are additional charges you might have to pay alongside the interest rate. Luckily, most decent lenders will state their APR upfront, meaning you won’t have to do the legwork yourself.

Want to get into the nitty-gritty of APR? Read up on the subject with our Beginner’s Guide to APR.

How To Calculate APR

Need to calculate APR on a loan? Determine it below with our handy calculator:

Want to calculate something else, like estimated APR or payments on cash advances or short-term business loans? Check out the rest of our small business calculators.

Final Thoughts

APR is an important tool, whether you’re looking at credit cards or business loans. While it shouldn’t be the only factor you consider, understanding how APR works can help you make informed decisions and potentially save you money. Knowing the difference (or lack of difference when it comes to credit cards) between APR and interest rate is also key, especially when you’re trying to get a holistic view of a potential loan or credit card.

Now that you have a grasp on the essentials, take a peek at the best low-interest small business loans. Or you can keep learning by perusing our guide to variable APR. New to business credit cards? Check out the basic dos and don’ts of business credit cards.

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How To Secure A $10,000 Loan Online For Your Business

Even the most prepared business owners will face a financial shortage from time to time, whether it takes the form of a holiday uptick in your retail business, a slow season for your construction business, or unpaid invoices that have brought your incoming cash flow to a screeching halt. Unexpected or emergency expenses can arise out of nowhere in any industry, and they have the potential to have a devastating financial impact your business.

If your cash flow begins to suffer from seasonal slumps, late-paying customers, or emergency expenses, know that there are options available to you. Online small business loans and financing products can help you overcome any financial hurdle.

On the other hand, maybe things are going well for your business, and you just need a little boost to help expand your facility, hire new employees, and take your business to the next level. Online business loans can help with that, too.

If you need $10,000 for your business — for whatever reason–, you’re in luck. There are many loan products available to you, from traditional installment loans to short-term loans, invoice financing, or lines of credit. Best of all, you don’t have to have a perfect credit score or high annual revenues to qualify. With some online lenders, you can be approved in just minutes, and in some cases, you may even receive the financing you need within 24 hours.

Many online lenders can fund your loan or financial product without the delays or heavy paperwork requirements imposed by banks or traditional lenders. You’ll pay higher rates and fees for this convenience, but if you need cash fast, an online loan is the way to go. Depending on the lender you select, you may get approved and funded simply by supplying basic information about yourself and your business and a few recent bank statements.

Ready to secure a $10,000 online business loan? Read on for our top lender picks.

1. BlueVine

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One lender that makes it easy to get $10,000 for your business is BlueVine. With two different financing options, you can receive up to $5 million to cover your business expenses.

The first financial product offered through BlueVine is a revolving line of credit. You can receive between $5,000 and $250,000 with simple interest rates starting at just 4.8%. Through BlueVine, the application process is simple, and you can be approved for an unsecured line of credit in just minutes. You’ll be able to make draws from your account as needed up to the credit limit assigned by the lender. Repayments are made weekly or monthly over 6 or 12 months. Interest is only charged on the borrowed amount, and your funds will be replenished as you make your payments.

To qualify for a BlueVine line of credit, you must have:

  • A minimum personal credit score of 600
  • A time in business of at least 6 months
  • At least $100,000 in annual revenue.

The application requires you to supply information about yourself and your business, as well as business bank statements from the last 3 months.

If unpaid invoices are dragging your business down, BlueVine also offers invoice factoring. You can receive up to $5 million for your qualifying invoices with rates starting at just 0.25% per week. You’ll receive up to 90% of the total balance of your invoices upfront and the remainder once the invoices are paid, minus fees charged by the lender.

To qualify for BlueVine’s invoice factoring, you must:

  • Operate a B2B business
  • Have a personal credit score of at least 530
  • Have a time in business of at least 3 months
  • Earn at least $100,000 in annual revenue

2. Credibly

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Credibly offers three financing options for business owners seeking $10,000 in capital. If you need a loan to cover daily operating expenses, Credibly offers a working capital loan. With this product, you can apply for up to $250,000. Instead of interest rates, these loans come with a factor rate. The most qualified borrowers can receive factor rates as low as 1.15. Working capital loans are repaid daily or weekly over a period of 6 to 17 months. An origination fee of 2.5% of the loan amount is deducted from your loan.

To qualify for a working capital loan from Credibly, you must have:

  • A credit score of at least 500
  • A time in business of at least 6 months
  • An average of at least $15,000 per month in deposits to your business bank account.

If you need $10,000 to expand your business, consider a business expansion loan from Credibly. You can apply for up to $250,000 to be repaid weekly over 18 or 24 months. Interest rates for the most qualified borrowers start at 9.99%. An origination fee of 2.5% of the total loan amount will be deducted from your loan proceeds.

To qualify for a business expansion loan from Credibly, you must have:

  • A credit score of at least 600
  • A time in business of at least 3 years
  • Average monthly bank deposits of at least $15,000
  • An average daily balance of $3,000

If you don’t meet the revenue or credit score requirements of Credibly’s other financial products, consider applying for a merchant cash advance. With this type of financing, you sell a percentage of your future receivables. Credibly will take a set percentage of your sales each day until your loan plus any fees are repaid. Factor rates start at just 1.15 and repayment schedules are available up to 14 months. Through this type of financing, you can apply for up to $150,000. A one-time 2.5% origination fee is added to your loan balance, and Credibly also charges a $50 monthly admin fee.

To receive a merchant cash advance, you must have a credit score of at least 500 and at least $15,000 in average monthly bank deposits. Your business must also be in operations for at least 6 months to qualify. You can be approved for your loan in as quickly as 24 hours.

3. Fora Financial

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For quick working capital loans, consider applying for financing through Fora Financial. If you want a flexible working capital loan with no restrictions, this lender offers small business loans in amounts from $5,000 to $500,000. Repayment terms are available up to 15 months.

To qualify for a working capital loan through Fora Financial, you must have:

  • A time in business for at least 6 months
  • At least $12,000 in gross sales
  • No open bankruptcies on your credit report

You can also apply for a merchant cash advance of up to $500,000 through Fora Financial. There are no set terms and no restrictions. Payment amounts are based on the revenue of your business.

To qualify, you must be in business for at least 6 months and have no open bankruptcies. You also must have at least $5,000 in credit card sales to be eligible.

4. Fundbox

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Another flexible line of credit comes from Fundbox, where you can receive up to $100,000. You’ll make equal weekly payments for 12 or 24 weeks to pay off the loan, plus the flat fee charged by the lender. Fees start at just 4.66% of the draw amount.

To qualify for a line of credit from Fundbox, you must have:

  • A business checking account
  • At least $50,000 in annual revenue
  • A connected business bank account

There are no minimum credit score requirements.

Fundbox Credit is another option to explore if you have unpaid invoices. This is an invoice financing product that provides you with up to $100,000 for qualifying invoices. Advance fees start at 4.66% with repayment terms up to 24 months.

To qualify, there are no minimum credit score or time in business requirements. You must also connect your accounting software that shows activity from at least the last 2 months.

5. IOU Financial

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With IOU Financial’s core small business loan, you can receive between $5,000 and $150,000 in extra capital for your business. These loans come with terms of 6, 9, or 12 months, and fixed payments are made daily.

To qualify for a small business loan from IOU Financial, you must:

  • Be in business for at least 1 year
  • Own at least 80% of your business (this requirement drops to 50% if you own your business with your spouse)
  • Make at least 10 deposits per month into your business bank account
  • Bring in annual revenue of $100,000

If you need more capital at a later time, IOU Financial also offers a mid-market loan of $70,000 to $300,000. Terms for these loans are 12, 15, or 18 months, and payments are made on a daily or weekly schedule.

6. Kabbage

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Kabbage offers flexible lines of credit that can be used to cover any business expense. If you’d like access to money on-demand, Kabbage’s lines of credit allow you to make draws as needed up to your credit limit.

Through Kabbage, you can be approved for a line of credit up to $250,000. With each draw, you’ll receive terms of 6 or 12 months, with payments made monthly. Kabbage charges fee rates between 1.5% and 10% based on the performance of your business.

If you have a low personal credit score but your business is doing well, Kabbage may be the right option for you. There are no minimum credit score requirements to receive a Kabbage line of credit.

However, to get a line of credit from Kabbage, you must:

  • Be in business for at least 1 year
  • Bring in annual revenue of at least $50,000

If you don’t meet this revenue requirement, you must show that you’ve brought in at least $4,200 per month for the last 3 months.

What makes Kabbage stand out from other lenders is that it offers the Kabbage Card. Typically, with a line of credit, you initiate the draw and receive your funds in your business bank account as quickly as the next business day. With the Kabbage Card, however, you have instant access to your funds. Use this card wherever Visa is accepted without having to wait for funds. Kabbage will then create a new loan with the same rates and terms as its traditional draws.

7. LoanBuilder

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If you want a business loan with one fixed fee and terms that are easy to understand, consider Paypal’s LoanBuilder. Through this lender, you can customize your loan to get the payments that are right for you. You can apply for anywhere from $5,000 to $500,000 and receive your funds as quickly as the next business day. Repayment terms of up to 52 weeks are available and are based on the amount of the loan. Payments are made weekly until your loan plus the lender’s fee are repaid. Fees range from 2.9% to 18.72% of the borrowing amount.

To qualify for a LoanBuilder loan, you must have:

  • A personal credit score of at least 550
  • A time in business of at least 9 months
  • At least $42,000 in annual revenue
  • No active bankruptcies on your credit report

8. OnDeck

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OnDeck offers several financing options if you need $10,000 for your business. With a short-term loan, you can receive up to $500,000 with repayment terms of 3 to 12 months. The lender charges a simple interest rate starting at just 9% for the most qualified borrowers. Long-term loans are also available with repayment terms of 15 to 36 months with annual interest rates starting at 9.99%. Daily or weekly payments are automatically deducted from your bank account with both loan options.

To qualify for a term loan from OnDeck, you must:

  • Be in business for at least 1 year
  • Have a minimum of $100,000 in annual revenue
  • Have a credit score of at least 500

An origination fee up to 4% of the borrowing amount will be charged to service and process your loan.

If you want a more flexible financing option, OnDeck provides lines of credit to qualified borrowers. Lines of credit from $5,000 to $100,000 are available, with APRs starting at 13.99%. Automatic payments are deducted weekly from your business bank account.

To qualify for a line of credit from OnDeck, you must have:

  • A time in business of at least 1 year
  • $100,000 or more in gross annual revenue
  • A personal credit score of at least 600

You must also be the majority owner of your business.

9. QuarterSpot

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Through Quarterspot, you can receive up to $250,000 in funding for your business in as quickly as 24 hours. Repayment terms of 9, 12, and 18 months are available with factor fees starting at 12.5 cents per dollar borrowed. With a Quarterspot loan, you can repay early to save on interest and fees.

To qualify for a loan from Quarterspot, you must have:

  • A credit score of at least 550
  • A time in business of at least 1 year
  • Monthly revenue of $16,000 or more
  • At least 10 sales every month
  • An average daily bank account balance of $2,000

You must also live in the United States, although applicants located in the states of North Dakota, Rhode Island, South Dakota, and Vermont are ineligible to receive funding through QuarterSpot.

Online Loans For Business Startups

You’ve reviewed all of your options, and there’s one major problem standing in your way: you’re running a brand-new business or startup. Most online lenders require your business to be in operations for at least one to two years in order to qualify for a business loan. While getting the capital you need for a new business may be more challenging, it certainly isn’t impossible. In some cases, you may even have to get a little creative with your financing options.

One option to consider is a personal loan for business. If your personal credit score is solid and you meet income requirements, you can receive a personal loan to use for business expenses. The lenders below offer personal loans for business with reasonable rates and fee:

Lender Borrowing Amount Term Min. Credit Score Next Steps

$2K – $25K 2 – 4 years 15.49% to 30% 600 Apply Now

$1K – $50K 3 or 5 years 8.16% – 27.99% 620 Apply Now

$2K – $35K 3 or 5 years 6.95% – 35.99% APR 640 Apply Now

lending club logo

$1K – $40K 3 or 5 years 5.32% – 30.99% 640 Check Rate

Another way to get $10,000 online to grow your new business is with crowdfunding. Through crowdfunding, you have a platform to pitch your business in front of multiple investors. Whether you want to expand your business or bring a new product to market, you can launch a campaign to raise the capital you need. One such platform to consider is Kiva US.

Kiva US

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Through Kiva US, you can receive up to $10,000 for your business. The best part is that you’ll be charged 0% interest on your loan. However, financing through Kiva doesn’t work like a traditional loan. With a traditional loan, you submit your application, the lender considers your business history and credit profile, and if you’re approved you’ll receive your payment.

With Kiva US, you’ll fill out an application once you’re pre-qualified. Then, for 15 days, you use the platform to get friends and family members to lend money to you. Once you’ve raised money from people you know, your campaign will go public to over 1.6 million people for 30 days. After you’ve raised the funds you need, you have up to 36 months to pay back your interest-free loan.

Unlike other loans, there are no credit score, time in business, or annual revenue requirements. To qualify, you must live in the United States, be at least 18 years old, and use the loan for business purposes.

What To Do If You Have Bad Credit

Let’s be honest: securing a loan with bad credit can be a challenge. Traditional options like bank loans and SBA loans are typically completely off the table with a poor credit score, even if your business is successful.

Before you apply for a business loan, it’s always important to know where you stand credit-wise, even if you know you have a great score. The internet makes this easier than ever, and there are multiple sites that allow you to view your credit score at no cost. If you have credit challenges, review your report for any errors that can be disputed with the credit bureaus.

Once you know your score, you’ll be able to better gauge what types of loans and which lenders you can work with. If you have a score that is in the low 600s or even lower, know that your financing options may be more limited.

Before you apply, also understand the cost of borrowing. A low credit score shows lenders that you’re a risky borrower, so not only are your financing options limited, but you’ll face higher fees and interest rates than more creditworthy borrowers. When you do apply for a loan or other financing, make sure to evaluate the full cost of the loan to ensure it makes sense for your business. Your loan should help your business — not drag you into uncontrollable debt.

The wisest financial move is to take steps to boost your score before applying. However, if you need a loan immediately, improving your score over months (or even years) may not make sense for your business. If this is the case, short-term loans, business credit cards, invoice financing, and lines of credit may be your best options. Some of the lenders on this list, such as OnDeck and Kabbage, work with borrowers with all credit types. Crowdfunding is a low-interest option you can also explore if you’re facing credit challenges.

Final Thoughts

Getting $10,000 for your business is easy when you know where to look, even if you have past credit challenges, operate a new business, or have annual revenue that falls below traditional lending requirements. However, having access to quick loans also makes it easier to push your business further into debt.

Be smart. Shop around with lenders, evaluate all of your options, and calculate the return-on-investment to ensure you’re making a sound, responsible financial decision for your business.

The post How To Secure A $10,000 Loan Online For Your Business appeared first on Merchant Maverick.

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Where To Find Fast $5,000 Loans For Your Business

When most people hear the term “business loan,” they immediately think about the large amounts of capital used to purchase real estate, buy bulk inventory, or hire a new team of employees. But even though business loans can be used to cover big expenses, sometimes all you need a small loan to assist with day-to-day cash flow, deal with an unexpected emergency, cover payroll for a few weeks, or help you get through a seasonal slow-down.

If you need $5,000 fast, a small business loan can help you clear your financial hurdles. The good news is that with a loan this small, you have your pick of online lenders that can get you funded as soon as the next business day. Paperwork requirements are also minimal for these smaller loans. With some lenders, a little basic information and a few bank statements are all you need to get approved.

However, not all online lenders issue $5,000 loans. Some lenders have much higher minimum borrowing amounts. Instead of spending hours weeding through search engine results, kick off the loan process with one of our picks. The following lenders offer loans, lines of credit, and other financial products that can help you get the $5,000 you need fast.

Ready to learn more? Let’s dive in!

1. LoanBuilder

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If you want to “build” a loan that’s customized to your business, consider applying with PayPal’s LoanBuilder. Thanks to the LoanBuilder Configurator, you can get a quick overview of your financing options and pick the borrowing amount, terms, and payments that work best for your business.

LoanBuilder small business loans are available in amounts from $5,000 to $500,000 and have a single fixed-fee structure, with fees starting at 2.9%. Weekly payments are made over 13 to 52 weeks depending on the amount borrowed. In some cases, you can receive your funding as quickly as the next business day.

To qualify, you must be in business for at least 9 months, have at least $42,000 in annual revenue, and operate in an eligible industry.

2. Accion

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Accion specializes in term loans in amounts from $300 to $1 million. Term lengths vary based on the loan products you are qualified to receive. Typical APRs are between 7% and 34%. An origination fee of 3% to 5% is required.

To qualify, you must have a credit score of at least 575. Depending on the state you’re in, credit score requirements may be as low as 550. There are no time in business requirements, but you must have sufficient cash flow to repay your loan. You must also be no more than 30 days overdue on any bill, have no bankruptcies within the last year, no late rent or mortgage payments within the last year, and no foreclosures within the last 2 years.

If your business is a startup, you must have less than $500 in debt that is past due, have a referral, and provide a business plan with future cash flow projections.

3. Credibly

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Credibly offers three business financing options: working capital loans, business expansion loans, and merchant cash advances (MCAs). With Credibly’s working capital loans, you can receive up to $250,000 that is repaid over 6 to 17 months. Instead of interest rates, Credibly uses factor rates that start at 1.15. Learn more about factor rates and how they affect the cost of borrowing. Payments on working capital loans are automatically deducted daily or weekly.

Requirements for Credibly’s working capital loans are at least 6 months in business, a credit score of at least 500, and at least $15,000 in monthly bank deposits.

If you need money to grow your business, consider Credibly’s business expansion loans. These loans are available in amounts up to $250,000 with term lengths of 18 or 24 months. Interest rates are as low as 9.99% and payments are made weekly.

Qualifying for a business expansion loan is a bit more difficult. To receive this product, you must have a time in business of at least 3 years and a personal credit score of at least 600. You must also have an average of $15,000 in monthly deposits to your bank, as well as an average daily balance of at least $3,000.

If you don’t qualify for Credibly’s working capital or business expansion loans, a merchant cash advance may help you get the extra capital you need for your business. You can receive up to $150,000 through the purchase of your future receivables. This means that Credibly will deduct a percentage of your sales daily from your credit card processor or bank account until the cash advance plus fees are paid off. With an MCA, repayment terms are set at 3 to 14 months and factor rates start at 1.15.

To qualify, you must have at least $15,000 in monthly bank deposits. Your business must be in operations for at least 6 months, and you must have a personal credit score of at least 500.

4. QuarterSpot

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Through QuarterSpot, you can receive small business loans up to $250,000. Repayment terms are 9, 12, or 18 months. With interest and fees, you may pay as little as 12.5 cents on the dollar to receive your loan. You can also save on interest and fees when you pay off your loan early.

To qualify for a QuarterSpot loan, you must meet several requirements. First, you must be in business for at least 1 year. You must also have a credit score of 550. Your business must make at least 10 sales per month and bring in monthly revenues of $16,000. Your average daily balance must be $2,000 to receive a QuarterSpot loan.

5. Fora Financial

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Like other lenders on our list, Fora Financial offers more than one way to get extra capital for your business. First, this lender offers small business loans from $5,000 to $500,000 with terms up to 15 months.

Fora Financial also offers MCAs for qualified borrowers. There are no set terms, and payments are remitted based on the revenue of your business. You can borrow between $5,000 and $500,000 with this product.

Fora Financial’s small business loans and MCAs both have factor rates between 1.1 and 1.3 and origination fees between 1% and 4%.

To qualify for a small business loan, you must have no open bankruptcies, a time in business of at least 6 months, and at least $12,000 in gross sales.

To qualify for Fora Financial’s MCAs, you must have no open bankruptcies, a time in business of at least 6 months, and at least $5,000 in credit card sales.

6. IOU Financial

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IOU Financial’s core small business loan allows you to receive anywhere from $5,000 up to $150,000 for any business expense. With this loan, you’ll have repayment terms of 6, 9, or 12 months. Repayments are fixed and are made on a daily schedule. For larger capital needs, IOU Financial also offers loans of $70,000 to $300,000 with repayment terms up to 18 months.

To receive an IOU Financial loan, you must own at least 80% of your business. If you co-own your business with your spouse, you must own 50% of the business. You must have a time in business of at least 1 year, at least 10 deposits per month in your business bank account, annual revenue of at least $100,000, and an average ending balance of $3,000 in your business bank account.

7. BlueVine

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If a flexible line of credit would better fit your business needs, BlueVine has an option for you. Through this lender, you can receive a line of credit of $5,000 up to $250,000 with rates starting at 4.8%. There are no prepayment penalties or monthly maintenance fees.

With your line of credit, you can make multiple draws up to your total credit limit. You only pay fees on the borrowed amount, and your account will be replenished as you repay. Payments are made weekly or monthly over a period of 6 to 12 months.

To qualify for a BlueVine line of credit, you must have a personal credit score of at least 600, $100,000 in annual revenue, and a time in business of at least 6 months.

If unpaid invoices are affecting your incoming cash flow, consider applying for BlueVine’s invoice factoring service. You can receive a factoring line up to $5 million with rates starting at 0.25% per week.

To qualify, you must have unpaid invoices, a credit score of 530, and $100,000 in annual revenue. You must also have a B2B business that has been in operations for at least 3 months.

8. Kabbage

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Another option for flexible lines of credit is Kabbage, which offers up to $250,000 to qualified small business owners. With Kabbage, you can make draws (up to your credit limit) as needed to use as working capital for your business. You only pay for what you’ve used, and fees range from 1.5% to 10%. With Kabbage, you can select from 6-month and 12-month terms based on the amount you withdraw.

Kabbage looks at the performance of your business to determine if you qualify. There are no minimum personal credit score requirements. To qualify, however, you must be in business for at least a year and have at least $50,000 in annual revenue. (If you fail to meet this revenue requirement, you can still qualify if you’ve had $4,200 in revenue per month for the last three months.)

The application process with Kabbage is easy and requires you to provide some basic information about yourself and your business. You will also link your business accounts to get the maximum line of credit based on your business performance.

You can also use the Kabbage card. This works just like a credit card and can be used anywhere Visa is accepted. With this card, you can make instant purchases, and Kabbage will create a new loan with the same rates and terms as its traditional draws.

9. Fundbox

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Through Fundbox, you can receive a line of credit up to $100,000 based on the performance of your business. Payments are spread out over a 12- or 24-week schedule and include Fundbox’s flat fee. Fees start at just 4.66%.

To be approved for a Fundbox line of credit, you must have a business checking account, at least $50,000 in annual revenue, and a business based in the United States. You must also provide business bank account statements from the last 3 months.

In addition to its lines of credit, Fundbox also offers invoice financing to qualified businesses. You can receive up to $100,000 with your unpaid invoices with fees starting at 4.66%. You must have qualifying invoices to receive this product, and you also must link your accounting software with activity from the last 2 months.

10. OnDeck

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With OnDeck, you can receive a line of credit up to $100,000 to use for any business purpose. APRs start at 13.99% for the most qualified borrowers, and payments are automatically deducted each week. There’s a $20 monthly maintenance fee, but this fee is waived if you draw at least $5,000 within 5 days of opening your account.

To qualify for an OnDeck line of credit, you must be in business for at least 1 year, have at least $100,000 in annual revenue, and a personal credit score of 600.

If you don’t meet the requirements for a line of credit, or you’re interested in another option, OnDeck also has fixed term business loans. You can receive up to $500,000 with annual interest rates starting at 9.99%. OnDeck has two different options for its loans: short-term loans with terms up to 12 months and long-term loans with terms up to 36 months. Repayments are made daily or weekly.

To qualify, you must be in business for at least 1 year and have $100,000 in annual revenue. Your credit score must be at least 500 to qualify for OnDeck’s term loans.

11. Kiva US

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If you want to bypass traditional and alternative lenders and avoid high interest rates, give Kiva US a try. This crowdfunding platform allows you to borrow up to $10,000 at a 0% interest rate.

Sounds great, doesn’t it? However, getting funded through Kiva US isn’t quite as easy as other loan options. But with a little extra work, you can receive an affordable loan for your business. Here’s how it works.

First, you fill out the application on the Kiva US website, just as you would any other loan application. Once you’ve submitted your application, you’ll prove that you’re creditworthy by getting your friends and family members to loan money to you through the platform over the next 15 days. Once you’ve passed this stage, you’ll be able to use the public Kiva platform to reach over 1.6 million people worldwide to raise your funds over the next 30 days. Once you’ve reached your goal, you’ll receive your money and up to 36 months to repay your loan.

To qualify, you must live in the United States and be at least 18 years old. You must also use your loan for business purposes. There are no time in business, personal credit score, or annual revenue requirements to qualify.

How Fast Can I Get A Business Loan?

The time it takes to receive your business loan varies by lender. For small loans of just $5,000, you could be approved in just minutes and receive your funds as quickly as the next business day. For lines of credit through lenders such as Kabbage and Fundbox, you can make draws immediately after being approved, with funds typically reaching your business bank account within 1 to 3 days.

The key to getting your business loan as quickly as possible is to make sure that you provide accurate information and upload all requested documentation. In some cases, your lender may require additional information or documentation to approve your loan. Make yourself available to answer any questions from the lender and provide the required documentation needed to approve and fund your loan.

What To Do If You Have Bad Credit

If you have bad credit, there are business loan options open to you. Some of the lenders previously mentioned, such as Kabbage and Fundbox, do not have minimum credit score requirements and consider the performance of the business when approving loans. Therefore, if you have steady revenue, you may still qualify for funding.

Business credit cards often have less stringent requirements, so these may be an option if you have a low credit score. Depending on your score, you may be able to qualify for an unsecured card. However, if your credit score is very low or you haven’t yet established credit, you may qualify for a secured card which is backed by a cash deposit. As you make on-time payments, you’ll build your credit score and qualify for unsecured cards and other financial products in the future.

Crowdfunding has also grown in popularity among small business owners. Sites such as Kiva US allow business owners to raise the capital they need without paying high interest rates. Crowdfunding is also a great resource for new businesses and startups that don’t meet time in business or annual revenue requirements of other lenders.

If you have bad credit, it’s inevitable that you’ll hit roadblocks on the path to funding. Not only will your options be more limited, but you’ll miss out on low-interest, long-term loans. To qualify for the best funding opportunities, you must have a solid credit score. Go online to pull your free score, review your credit report, and take steps to build your credit. Pay off all debt obligations as agreed, keep your credit utilization down, and dispute erroneous items on your credit report. Though this method takes time, boosting your credit score opens the door for more affordable loans and financial products in the future. Learn more about how you can raise your personal credit score.

Final Thoughts

Finding a $5,000 loan for your business shouldn’t be too difficult. However, you should go into the process knowing that smaller loans come with shorter repayment terms and may also be accompanied by high fees and interest rates.

Calculate the affordability of the loan to ensure that taking out a loan is a smart financial move. If you’re new to applying for small business loans, educate yourself before you start submitting applications to lenders. Finally, be sure to shop around to ensure you get the most affordable financing products that work best for your business.

The post Where To Find Fast $5,000 Loans For Your Business appeared first on Merchant Maverick.

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Accounts Receivable Financing: What You Need To Know

Incoming cash flow is critical to your business. After all, if you don’t have money coming in, how are you going to pay for inventory, daily operating expenses, or other costs associated with running your business?

Sometimes, cash flow shortages are due to circumstances beyond your control. A slow season, for example, could leave your bank account a little short. But maybe you’re facing a different challenge. You have plenty of sales, but one big obstacle that’s obstructing your cash flow: unpaid invoices.

Depending on your company’s payment terms, you could be stuck waiting for weeks (or even months!) to receive payment from your customers. When these unpaid invoices stack up and your business is strapped for cash, this can quickly become a big problem.

You probably already know about more traditional methods of financing that can help you out of this bind, like lines of credit, credit cards, and small business loans. Sometimes, though, these options just don’t make sense. Maybe your personal credit score is low, you don’t meet a lender’s requirements, or you need funding fast.

What you may not know is that there’s a unique financing option that gives you control of your unpaid accounts. Accounts receivable financing is a way to use your unpaid invoices to get the funds you need in just days. If you have a stack of unpaid invoices sitting on your desk and a bank account that’s seen better days, read on to learn more about accounts receivable financing and how to put it to work for your business.

BlueVine Fundbox P2Bi InterNex Capital Riviera Finance American Receivable

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Credit Facility Size $5K – $5M Up to $100K $500K – $10M Up to $10M $5K – $2M Up to $3M
Average Approval Time 2 – 7 days 1 day 2 weeks 3 – 7 days 4 – 7 days 3 days
Minimum Credit Score 530 N/A N/A N/A N/A N/A
Minimum Annual Revenue $100K $50K $500K $1M N/A N/A
Required Time In Business 3 months N/A 6 months 2 years N/A N/A

What Is Accounts Receivable Financing?

With accounts receivable financing, you receive the capital you need using your outstanding receivables, typically in the form of unpaid invoices. This is why accounts receivable financing is also known as invoice financing.

There are two common definitions used when talking about accounts receivable financing. The general definition is simply financing based around receivables. Invoice discounting and invoice factoring (more on that a little later) both fall under this umbrella.

More specifically, though, this type of financing uses your accounts receivables as collateral for an asset-backed line of credit. A lender provides you with a line of credit based on the quality and quantity of your unpaid invoices.

For small business owners, this type of financing has many benefits. Since accounts receivable is the qualifying factor, other criteria — such as personal credit score, time in business, and the financial details of your business — are often less important to lenders. If you fail to qualify for other types of funding, accounts receivable financing could help you overcome your financial challenges.

You also won’t have to jump through hoops to get the capital you need (unlike with traditional loans and other types of financing). In most cases, all you need to provide to a lender is basic information about yourself and your business and information about your unpaid receivables. You won’t have to worry about pulling old tax returns or other documentation that’s required for traditional loans. If you have qualifying invoices, you can be approved for a line of credit with accounts receivable financing.

A/R Financing VS Invoice Factoring

Earlier, we mentioned invoice factoring. This is a type of financing that is slightly different from accounts receivable financing.

Accounts receivable financing provides you with a flexible line of credit that you can draw from as needed. Your invoices aren’t sold to the lender. Instead, they’re used as collateral to secure the line of credit.

With invoice factoring, you sell your unpaid invoices to a lender for immediate payment. You’ll receive a large portion of the invoice amount upfront — think anywhere from 80% to 95% of the invoice total. Once the customer pays the invoice, you’ll receive the remaining amount, minus any fees charged by the lender.

Another difference between the two is how payment is collected. When you choose accounts receivable financing, you collect payment from your customers as usual. Your customers will not be notified that you are working with a third party.

With invoice factoring, your lender — also known as a factor — will be responsible for collecting payments from your customers. In most cases, your customers will be notified that a third-party is collecting payments.

Invoice financing is usually best for larger companies with many invoices. Invoice factoring is usually the better choice for small companies that don’t have the time or resources to collect payments from customers.

Is invoice factoring best for your business? Learn more about invoice factoring, then compare rates, terms, and requirements of top factors.

Who Qualifies For A/R Financing?

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One of the biggest advantages of accounts receivable financing is relaxed borrower requirements. You don’t have to worry about having a perfect credit score, a long time in business, or high annual revenues — hard and fast requirements for most other lenders.

Some lenders do have credit score requirements, though. In general, you’ll find that the minimum score needed to qualify for accounts receivable financing is much lower than the credit score requirements for loans, unsecured lines of credit, and other financial products.

For most lenders, the number of invoices you have and the creditworthiness of your customers are the most important qualifying factors. During the application process, you’ll provide your invoices to the lender to determine if you’re eligible for funding. Some lenders may also look at your business bank statements to assess cash flow.

Most lenders only work with B2B or B2G companies, although some lenders will approve B2C companies with qualifying invoices.

How Accounts Receivable Financing Works

At this point, you should have a better understanding of accounts receivable financing, but you may still be on the fence as to whether it’s right for your business. Let’s explore exactly how accounts receivable financing works so you can determine whether or not to take this financial leap

1. Apply For Financing

We’ll go into detail a little later about how to choose the right lender for your business. For now, though, let’s assume that you’ve already selected your lender. Begin by filling out the lender’s application. Usually, this is a fairly short process that requires some basic information about yourself and your business, such as your federal Employer Identification Number, your full legal name, and contact information.

2. Submit Your Invoices

Once you’ve filled out your application, some lenders require you to securely connect your accounting software. This allows the lender to determine if the quantity and quality of your invoices are enough to qualify for financing. Other lenders may require you to simply upload your invoices.

3. Get Approved

Once you’ve completed the application and have submitted your invoices, the lender will make an approval decision. The lender will issue a line of credit based on the value of your invoices. Approval decisions may be given the same day, or you may have to wait several days for a decision.

4. Use Your Line Of Credit

Once you’ve been approved, you can now make draws from your line of credit to pay for business expenses. Most lenders transfer funds to your banking account immediately after you initiate the draw. In most cases, you should have the funds in your account within 1 to 2 business days.

5. Collect Payments & Repay Your Lender

You’ll continue to collect payment from your customers as usual. As you collect payments on your invoices, you’ll repay any funds you’ve taken from your line of credit, as well as any fees charged by the lender.

Typical A/R Financing Rates & Fees

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The rates and fees charged by a financer will vary based on a number of factors. You’ll qualify for lower rates if you’re in a low-risk industry, have multiple invoices with creditworthy customers, and bring in steady cash flow.

On average, expect to pay about 3% to 5% each month on the portion of used funds. Some lenders may offer rates as low as 1%, which is why it’s important to shop around for the best rate. This also highlights why it’s so important to get payments from customers as quickly as possible. The longer you have an outstanding balance with your financer, the more you end up paying.

You may also be required to pay additional fees based on the lender you select. Some of the most common fees that you may encounter include:

  • Servicing Fees
  • Application Fees
  • Setup Fees
  • Withdrawal Fees
  • Processing Fees

How To Choose The Right A/R Financer For Your Business

If you’ve decided to move forward with accounts receivable financing, the next step is to find the right financer for your business. What works for one business may not work for yours, so make sure to do your research and apply the following tips when making your selection.

  • Understand & Meet All Requirements: Know what the lender requires before you even apply. While accounts receivable financing may be easier to obtain than other types of funding, some lenders have stricter requirements. Make sure that you meet all of these requirements. If the lender requires a minimum credit score, check your score for free online to make sure you’re a good fit. Also pay attention to annual revenues, minimum time in business, excluded industries, and other requirements.
  • Review Total Cost Of Borrowing: Sure, one lender’s monthly rate is low, but add in fees and other costs and you may end up paying much more. Make sure to look at the numbers — all of them — to calculate the most affordable financial solution.
  • Consider Borrowing Limits: Assess the borrowing limits of each lender. For example, if a lender only issues lines of credit up to $50,000, but you’d prefer to have a higher line, you can immediately eliminate this lender from your list.

Recommended A/R Financers

With an idea of what to look for in an accounts receivable financer, you’re one step closer to scoring the funding you need for your business. Maybe you’ve even started your search, but thousands of search engine results have your head reeling. To cut through the clutter and get you started, check out our recommended options for accounts receivable financers.

BlueVine Fundbox P2Bi InterNex Capital Riviera Finance American Receivable

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Credit Facility Size $5K – $5M Up to $100K $500K – $10M Up to $10M $5K – $2M Up to $3M
Average Approval Time 2 – 7 days 1 day 2 weeks 3 – 7 days 4 – 7 days 3 days
Minimum Credit Score 530 N/A N/A N/A N/A N/A
Minimum Annual Revenue $100K $50K $500K $1M N/A N/A
Required Time In Business 3 months N/A 6 months 2 years N/A N/A

BlueVine

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Through BlueVine, you can apply for accounts receivable financing lines up to $5 million. Rates begin at just 0.25% per week, and you can be approved as quickly as 24 hours after applying.

The application process is easy. Filling out the application takes less than 10 minutes. Once your application is reviewed, you’ll receive a decision from BlueVine. If approved, you can sync invoices from your supported accounting software, or you can upload invoices right to your dashboard. You’ll receive up to 90% of the invoice amount up front, and you’ll receive the rest (minus fees) after the customer pays. You select the invoices to submit, and there are no long-term contracts.

To qualify, you must operate a B2B company. You must have a minimum FICO score of 530, have $100,000 in annual revenue, and be in business for at least 3 months. If you need additional funding options, BlueVine also offers business lines of credit.

Fundbox

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Through Fundbox, you can receive up to $100,000 with accounts receivable financing. Advance fees start at 4.66% and repayments are weekly. One thing that sets Fundbox apart is that you can get 100% of your invoice value deposited into your bank account.

Registering with Fundbox couldn’t be easier. There’s no credit check and no paperwork requirements. All you have to do is link your accounting software, and you can receive approval in just hours. Once you’ve been approved, funds can be transferred to your checking account as quickly as the next business day.

To qualify, you must use a Fundbox-supported accounting or invoicing software. Your business must be based in the U.S. and have annual revenue of at least $50,000.

P2Bi

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Through P2Binvestor, you can receive an asset-backed line of credit up to $10 million. Through this lender, you can draw up to 80% of the value of your receivables.

There are several fees associated with a P2Bi line of credit. This includes a one-time origination fee equal to 1.5% of your credit line, an annual renewal fee of 1.5% of your credit line, and a daily discount cost. Annual rates average 8% to 20%.

To qualify, you must be in business for at least 6 months and have annual revenue of $500,000. You must also run a B2B business based in the U.S. There are no minimum credit score requirements, although personal credit is evaluated during the underwriting process.

InterNex Capital

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InterNex Capital provides asset-backed lines of credit from $250,000 to $10 million for qualified borrowers. Rates are between 7.99% and 18.99%. All lines of credit come with 12-month terms with the option to renew.

After filling out the application, you’ll receive an approval decision within 3 business days. Once you’ve accepted your revolving line of credit, you can make your first draw immediately.

InterNex Capital is more suited for large businesses. To qualify, you must have annual revenue of at least $1 million. There are no minimum credit scores required to qualify, but you must be in business for at least 2 years. InterNex Capital charges fees including an origination fee, draw fee, unused line fee, and renewal fee.

Riviera Finance

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When you work with Riviera Finance, it’s possible to get up to $2 million for your outstanding receivables. You can receive up to 95% of your invoice value within 24 hours after products have been accepted by your customers. Rates start at 2%. Standard terms are 6 months, but the company works with borrowers if different terms are needed.

Riviera Finance works with businesses in all 50 states. There are no annual revenue, personal credit score, or time in business requirements to qualify.

American Receivable

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With American Receivable, you can receive funding up to $3 million for your unpaid invoices. This company will provide up to 90% of the value of your invoices within 24 hours after submission. Rates start at just 0.8% per month.

To qualify, you must have qualifying invoices to creditworthy customers. There are no time in business, credit score, or revenue requirements.

Final Thoughts

If you deal with a lot of accounts receivable and you don’t qualify for other types of business financing, accounts receivable financing could be a smart next step for your business. Of course, this financial solution isn’t for everyone.

Weigh out the total costs of accounts receivable financing and evaluate the needs of your business. You may find that this type of financing is right for you, or you may choose another source of funding such as a business line of credit or business credit card. Regardless of what path you take, make sure that any financing you accept is financially feasible and will be used to better your business.

BlueVine Fundbox P2Bi InterNex Capital Riviera Finance American Receivable

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Credit Facility Size $5K – $5M Up to $100K $500K – $10M Up to $10M $5K – $2M Up to $3M
Average Approval Time 2 – 7 days 1 day 2 weeks 3 – 7 days 4 – 7 days 3 days
Minimum Credit Score 530 N/A N/A N/A N/A N/A
Minimum Annual Revenue $100K $50K $500K $1M N/A N/A
Required Time In Business 3 months N/A 6 months 2 years N/A N/A

The post Accounts Receivable Financing: What You Need To Know appeared first on Merchant Maverick.

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The Best Business Grants For Veterans

Many veterans that have spent their lives protecting our nation and our freedom also own and operate small businesses. According to a Small Business Administration study, there are 2.4 million veteran-owned businesses in the U.S. These veteran business owners continue to give back to the nation by providing jobs to 5.8 million employees.

Like any other small business owners, veterans face financial hardships on the path to entrepreneurship. Emergency expenses, cash flow shortages, and expansion are just a few situations where a business might need extra capital. Veteran-owned businesses may face even more financial challenges – for example, if a reservist that also owns a small business is suddenly deployed, money, time, and resources may become scarce quickly. While your incoming revenue should cover most of your expenses in theory, there will always be times when the current cash flow situation just isn’t enough.

If you’re a veteran who runs your own business and are facing a financial challenge, there are options available to you. One of the best options? Grants for veteran-owned businesses. With a grant, you can receive money to fund startup costs, pay for the research and development of new products, or support your established business. Best of all, grants don’t have to be repaid.

What’s the catch? Obtaining a grant is difficult for many business owners. You may not know where to even begin to find these grants. Once you find them, the application process can be confusing, and you’ll find the competition extremely stiff. Not only do you have to be a veteran to qualify for these grants, but you may also have to meet additional requirements, including the location of your business, the industry you’re in, and your time in business. Grants are available through the federal government, nonprofit organizations, and even corporations.

However, just because it’s difficult to receive a grant doesn’t mean it’s impossible. The first step is to understand what grants are available to you, learn the requirements, and move through the application process. In this article, we’ll explore the best grant options available to veterans, how to find your own grants, and other financial options available for your business. Ready to move one step closer to getting the business funding you need? Let’s get started!

StreetShares Foundation Veteran Small Business Award

StreetShares is an online lender that specializes in lending to veterans. In addition to financing products like loans and lines of credit (which we’ll discuss later in this post), small business grants are also available through the StreetShares Foundation.

As of 2018, the StreetShares Foundation awards grants to three winners. First place receives $15,000, second place receives $6,000, and third place wins $4,000.

The StreetShares Foundation Veteran Small Business Award is open to any military veteran, reserve or active duty member of the Armed Forces, or a qualifying spouse. Applicants must live in the U.S., be at least 21 years old, and own at least 50% of the business. All businesses must be legal entities and must have an impact on the veteran community to qualify. Award amounts and additional requirements may change from year to year.

To be eligible for the grant, all applicants must view educational content through StreetShares. Once qualifying content has been downloaded or viewed, the application is available. Applicants must write a summary of their business and submit a video. The Foundation will choose up to 10 finalists based on the business idea, how the award will be used, the history of the business, the product-market fit, and the social impact on the military and veteran community. Once the finalists are selected, their businesses will be presented to the public and put to a vote to determine the winners.

National Association For The Self-Employed Growth Grants

For businesses with smaller capital needs, the National Association for the Self-Employed Growth Grant provides small grants up to $4,000. Like other grants, the funds must be used for a specific purpose, such as purchasing equipment or hiring new employees.

Applications are reviewed quarterly and awards up to $4,000 are distributed monthly. To qualify, you must submit an application outlining your business need and providing details of how you will use the grant to fund this need.

You must also be a member of the NASE to qualify. Annual fees are $120, but veterans only have to pay $99 for an annual membership. Once you’ve joined, you are eligible to apply, and your application will be reviewed based on the association’s quarterly review schedule.

FedEx Small Business Grant Program

The FedEx Small Business Grant program has awarded over $500,000 in grants since its launch in 2013. In 2018, FedEx awarded $120,500 to 10 U.S.-based small businesses. The top prize for the contest is a $25,000 grant and $7,500 worth of FedEx Office services. Other winners bring home smaller grants and money to be used toward printing and businesses services.

To qualify, all businesses must be for-profit and based in the U.S. All small businesses must have fewer than 99 employees and must have a time in business of at least 6 months. Participants must fill out an application, write a short profile for their business, and upload four photos. Participants may also submit a 90-second video for voting, although this isn’t required. Participants do not have to be military veterans to apply.

The annual program usually opens its entry period at the end of February, and interested small businesses can apply through the FedEx website.

USDA Rural Business Enterprise Grant Program

Through the United States Department of Agriculture, eligible small businesses can receive grants from $10,000 to $500,000. To qualify, you don’t have to be in the agriculture industry, but your business must be located in an eligible rural area.

Other requirements include operating a business that has no more than 50 employees and less than $1 million in annual revenues. Grant proceeds can be used to purchase or develop commercial real estate, to cover expenses related to business planning, and for purchasing equipment.

All applicants can apply for the grant through their USDA Rural Development state office.

How To Find & Apply For VA Small Business Grants

small business loans for veterans

If you’ve missed the deadline for applying for the grants discussed in this article, don’t qualify, or are looking for more grant opportunities, there are additional resources you can use to find your own grants.

To find federal grant opportunities, check out Grants.gov. This searchable database of federal grants is easy to use. Through this website, you can search and apply for grants, use their educational resources to learn more about grants, and even track your submissions. A mobile app is now available for Android and iPhone, making it easy for you to search for grants on the go.

Another great resource is the SCORE Association. This nonprofit agency has counselors and mentors located nationwide. These volunteers can not only point you toward national and local grants, but also provide free business advice for starting or building your business. You can participate in online workshops as well, and take advantage of the other free resources available to small business owners.

Try using resources at your local library to find small business grants. Many library branches offer specialized tools, including search engines and databases, that provide information on available small business grants for startups and established businesses in all industries.

Once you’ve found grants, the next step is to begin the application process. Because grants are to be used for very specific purposes and are extremely competitive, take the time to adequately prepare.

Before getting started, make sure that you meet all requirements of the grants that interest you. Once you’re sure that you qualify for a startup grant, complete all required registrations. This may include registering on a website to fill out an application and/or applying for an Employer Identification Number or DUNS number.

The next steps vary based on the specific grant program. Some grant programs require you to create a short business profile or a short video giving information on your business and why you need a grant. Other grants have more extensive requirements, including writing a detailed business plan and in-depth summary of how you plan to use grant proceeds. Work through these steps very carefully. You don’t want to overlook a minor detail that could render you ineligible to receive the grant.

Your grant proposal should sound professional and include details. Your proposal should be well-organized, and you should do your research on details such as potential costs. Include supporting documentation and citation to back up your claims as needed.

If you’re new to the application process, consider hiring a grant writer. If this simply isn’t in your budget, there are free resources online that can help you through the process.

Other Financial Resources For Veteran-Owned Businesses

Whether you don’t qualify for a grant program or have greater financial needs than a grant can cover, there are more financing options available for your business. The Small Business Administration and StreetShares stand out by offering low-cost loan options to veteran-owned businesses just like yours.

VA SBA Loans

SBA loans have developed a reputation among small business owners for their low interest rates and great terms. Rates and terms are comparable to bank and credit union loans. The best part, though, is that even if you don’t qualify for traditional loan options, you may still receive an SBA loan. This is because these loans are backed by the government in amounts up to 85%, taking some of the risk away from the intermediary lender. What does this mean for you? Your small business can still be approved for an affordable loan, even if you’ve been turned down by other lenders.

One of the most popular loan options is the SBA 7(a) program. Through this program, you can receive up to $5 million for nearly any business purpose. The SBA sets the interest rates at the prime rate plus a maximum markup of 4.75%, so these loans are extremely affordable.

For military veterans, the SBA Veterans Advantage program is available. Through this program, you’ll receive the same high borrowing limits and low rates and terms of the 7(a) loan, with the added advantage of reduced guarantee fees.

To qualify for the SBA Veterans Advantage loan, your business must be a veteran-owned business that is considered a small business based on the SBA’s definition. You must demonstrate the ability to repay the loan and meet all criteria for receiving an SBA loan, including personal credit score requirements.

If you’re a military reservist or are in the National Guard, a deployment can throw your business off track. You shouldn’t have to worry about a pile of expenses that pose a threat to your business when you go on active duty. Luckily, the SBA has a financial solution.

The Military Reservist Economic Injury Disaster Loan Program provides loans up to $2 million for military reservists or National Guard members during or immediately following deployment. Under this program, you can receive a loan with interest rates set at 4% and repayment terms up to 30 years. Loan proceeds can be used to cover operating costs but can’t be used to refinance debt, expand a business, or cover lost income or profits.

You may also qualify for other SBA loan options not specific to veterans. For example, if you need capital for your startup costs, you can apply for SBA microloans up to $50,000 through an SBA-approved nonprofit lender. Interested in learning more about SBA loans? Check out our post on SBA loans for veterans.

StreetShares

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We already touched on StreetShares earlier when discussing grants. However, if you missed the deadline to apply, don’t want to go through the hassle of applying for the program, or don’t qualify, StreetShares has traditional financing options for your business.

StreetShares was founded by veterans and was originally targeted only toward veterans. Today, however, any qualifying business owner can apply for StreetShares financing. There are some special concessions made for veteran-owned businesses, which we’ll discuss in detail a bit later.

You can apply for a StreetShares installment loan of up to $250,000 to be repaid over 3 to 36 months. The interest rates for these loans are around 6% to 14%.

If a flexible line of credit better fits your financial needs, StreetShares offers those, too. You can apply for a line of credit of up to $250,000 with repayment terms of 3 to 36 months. Interest rates are around 6% to 14% for a StreetShares line of credit.

To qualify for a loan or line of credit, you must be in business for at least 2 years. However, some businesses may qualify with a time in business as short as 6 months. You must also have a minimum personal credit score of 620. However, if you’re a veteran, this score requirement is lowered to 600. You must also have an annual business revenue of $100,000.

If you have federal, state, or commercial contracts, you could also qualify for contract financing. You can receive up to 90% of your contract in advance by paying a factor fee. You can apply for contract financing in addition to an installment loan or line of credit.

Final Thoughts

Grants for a veteran-owned small business are difficult to receive, but you can improve your odds by doing your research and taking your time throughout the application process. A grant is a great way to fund your business, and you don’t have to worry about repaying funds.

Even if you don’t qualify for grants, your veteran-owned business can take advantage of other affordable financing options to start or expand your business. Consider SBA loans or our picks for small business loans for veterans to give your business the financial boost it needs to be successful.

The post The Best Business Grants For Veterans appeared first on Merchant Maverick.

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The Best Business Grants For Minorities

business grants for minorities

Modern American capitalism is an ironic tableau of cruel contradictions. While cheap consumer goods are more accessible than ever and the price of large high-resolution TVs keeps going down, the things actually required for human beings to live and thrive — housing, health care, education, retirement security, etc — become ever less accessible to the exploited, over-policed masses by the day. This reality has all the more salience to minority groups whose access to these necessities was precarious at best to begin with.

Startup capital is another resource that has been made scarce to marginalized communities. 10 years after the financial crisis of 2008, banks still aren’t lending to those who could do the most good with the cash (never mind that all of us, both marginalized and privileged, were made to bail out these same banks after they ruined the world). For most minority small business owners, the prospect of getting free money to cover business expenses is going to sound rather far-fetched.

That’s where business grants come in. Small business grants are not easy to obtain, but they do exist and can be an invaluable source of funding for those who obtain them. We decided to compile a list of the best grants and grant-related resources for minority-owned businesses.

But first, here’s more information on getting funding for your small business:

  • Do I Qualify For A Startup Grant?
  • How To Find A Startup Grant
  • The Best Business Grants For Women
  • The Best Small Business Loans For Minorities With Bad Credit

Minority Business Development Agency

An agency of the U.S. Department of Commerce, the purpose of the Minority Business Development Agency, or MBDA, is to help connect minority business owners to federal contracts and other financial resources. The agency also periodically awards grants to minority-owned companies for specific purposes. In November, the federal government announced that the MBDA had awarded over $13 million in grants to 35 projects across the country.

From helping you find grants and loans to providing marketing and legal assistance, the MBDA’s physical business centers are set up to provide a range of assistance to minority business owners and entrepreneurs. Here’s a searchable directory of these MBDA business centers.

Grants.gov

Grants.gov doesn’t originate grants; rather, it’s a searchable database of every grant program from across all 26 grant-making agencies of the federal government. It’s a valuable resource, though the website is pretty clunky.

In order to apply for federal grants, you must do the following:

  • Get a DUNS number from Dun & Bradstreet
  • Register to do business with the federal government through its System Award Management website
  • Create an account at Grants.gov

National Association for the Self-Employed

The NASE is a nonprofit trade association that gives grants and provides educational resources for small businesses and entrepreneurs. Their Growth Grants Program lets small business owners apply for grant financing for a particular small business need.

These grants are worth up to $4,000 each, so while you won’t hit the funding motherlode with the NASE, it’s a great resource for minority business owners with a specific, defined funding need. You’ll need to join the NASE to apply for a grant, and you’ll need to explain in detail how you’ll use the funds and how this funding will bolster your business operations.

FedEx Small Business Grant Contest

The FedEx Small Business Grant Contest is a nationwide competition held annually to award grants in the form of cash and prizes (such as credits for FedEx services) to small business owners and entrepreneurs. The amount awarded to contest winners and the number of grant recipients varies year-to-year. The details of the 2019 competition have yet to be unveiled, but these specifics will be unveiled when the 2019 competition is announced early in the new year.

For reference, here is a series of features on the winners of the 2018 Grant Contest winners.

Dare To Dream Grant Program

The Eugene Applebaum Dare to Dream grant program is a prominent program based at the University of Michigan offering business development seminars and $500-$5,000 in grants to individuals and/or student teams. Prospective entrepreneurs in the upper midwest, take note!

USDA Rural Business Development Grant

For minorities in rural areas, this grant, issued by the United States Department of Agriculture, is an attractive prospect. In the words of the USDA:

This program is a competitive grant designed to support targeted technical assistance, training and other activities leading to the development or expansion of small and emerging private businesses in rural areas which will employ 50 or fewer new employees and has less than $1 million in gross revenue.

Program applications vary by state, so you’ll need to find the specifics of what’s on offer in your state through the USDA’s RBDG website.

Native American Business Development Institute (NABDI) Grant

This grant program is funded by the U.S. Department of Indian Affairs and is intended to support Native American and Alaskan Native business owners. Currently, they don’t have a great deal of information posted on the grants being offered, but you can always contact the Office of Indian Energy and Economic Development to learn how the program stands to benefit your business.

Office of Minority Health Grant Programs

A division of the Department of Health and Human Services, the Office of Minority Health (OMH) offers grants to businesses whose mission is to eliminate health disparities among racial and ethnic minority populations. Keep an eye on the OMH website to learn about grant opportunities when they are announced.

How To Find & Apply For Small Business Grants For Minorities

startup grants

Finding the right grant program, applying for it, and actually getting the grant in question can be a daunting prospect. That’s why it may be a good idea to simultaneously look for alternate sources of funding, such as personal loans or lines of credit. We recommend the following reputable funder to minorities who are looking for business financing:

Personal Lenders For Business

Lender Borrowing Amount Term Interest Rate Min. Credit Score Next Steps

$2K – $25K 2 – 4 years 15.49% to 30% 600 Apply Now

$1K – $50K 3 or 5 years 8.16% – 27.99% 620 Apply Now

$2K – $35K 3 or 5 years 6.95% – 35.99% APR 640 Apply Now

lending club logo

$1K – $40K 3 or 5 years 5.32% – 30.99% 640 Check Rate

Lenders That Specialize In Lines Of Credit

Lender Borrowing Amount Draw Term Draw Fee APR Next Steps

$6K – $100K 6 months None Starts at 13.99% Apply Now

$2K – $5M Varies Varies Varies Apply Now

$5K – $5M 6 months 1.50% per draw 21% – 65% Apply Now

$1K – $100K 12 weeks None 12% – 54% Apply Now

Remember that unlike with loans and the like, the money that comes with grant programs has strings attached. It must be used in precisely the way specified by the grant giver. That’s why it pays to know the details of the grant you’re applying for, as there’s no reason to apply for grants that would disburse money for a funding need you don’t even have.

I should reiterate that in order to qualify for any federal grants, you need to register at sam.gov. Unfortunately, the registration process isn’t as straightforward as it should be, as the government agencies in question seem to be in the middle of shifting their small business assistance materials between agencies and websites. As things stand, sam.gov lays out the steps required to register your small business here.

One organization that can get you pointed in the right direction in your quest for business funding is SCORE. It’s a partner of the Small Business Administration (SBA) and provides mentoring services to small business owners and entrepreneurs from over 300 chapters across the country. They also provide online webinars and business courses.

What To Do Before Applying For A Grant

  • Define your exact funding need: be ready to define the precise objectives a grant would help you meet
  • Create a detailed business plan
  • Gather and assemble all the business records you can from at least the last three years
  • Have your plan and records reviewed by experts, whether they be SCORE mentors or others with experience in guiding business owners through the grant-hunting process
  • For a large grant, consider hiring a professional grant writer if you can

Final Thoughts

Entrepreneurial talent can be found in every community across this land. Sadly, social and structural barriers to equality persist. Small business grants are but one means by which minority small business owners can get some ever-elusive funding. For other such means, check out our article on the various types of alternative financing available for small businesses, or look into one or more of the alternative funders below:

Lender Borrowing Amount Term Interest/Factor Rate Req. Time in Business Min. Credit Score Next Steps

$5K – $500K 13 – 52 weeks x1.029 – x1.1872 9 months 550 Apply Now

$5K – $300K 6, 9, 12, 15, or 18 months x1.15 – x1.31 1 year 600 Apply Now

$5K – $500K 3 – 36 months x1.003 – x1.04/mo 12 months 500 Apply Now

$2K – $5M Varies As low as 2% 6 months 550 Apply Now

The post The Best Business Grants For Minorities appeared first on Merchant Maverick.

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SBA Loans For Women: What You Need To Know

Being an entrepreneur is never easy. However, if you’re a female entrepreneur, you may face even more challenges when owning and operating your own business. After all, until the passage of H.R. 5050: Women’s Business Ownership Act in 1988, women in many states couldn’t even receive a business loan without having a male cosigner. Thanks to this legislation, more resources are available for women business owners. Unfortunately, though, women still face challenges when applying for business loans and financing.

If you’re a female business owner or you’re ready to start your own business, don’t lose hope. There are resources available to fund the launch or expansion of your business. One of the best resources? The Small Business Administration.

The Small Business Administration — or SBA — provides a variety of resources, including affordable loan programs, to female entrepreneurs. Ready to learn more? Read on to find out more about the SBA, growing your business with SBA loans, and additional resources available for women-owned businesses.

What Is The SBA?

The SBA was founded in 1953 to provide assistance to small business owners. The SBA provides various resources to help small business owners become successful entrepreneurs. This includes in-person and online counseling, low-cost training, and advocacy for small businesses. One of the SBA’s most significant resources is its low-interest loan programs.

Securing a traditional loan from a bank or credit union can be tough for any business owner. These financial institutions view small businesses as a risk, even when the business has established a track record of success. Because traditional lenders tend to avoid risky borrowers, many business owners have the door shut in their face.

At this point, there are a few options to consider. Alternative lenders have fewer requirements but much higher rates and less favorable terms. Low borrowing limits through these lenders may also prove to be a problem.

Instead of simply accepting a loan with less-than-desirable terms, many business owners look to the SBA to receive loans with competitive rates and terms, even when they’ve been turned down for other loans.

Overview Of SBA Loan Programs

Loan Program Description More

7(a) Loans

Small business loans that can be used for many many business purchases, such as working capital, business expansion, and equipment, inventory, and real estate purchasing.

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Microloans

Small loans, with a maximum of $50,000, which can be used for working capital, inventory, equipment, or other business projects.

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CDC/504 Loans

Large loans used to acquire fixed assets such as real estate or equipment. 504 Loans are offered in partnership with Community Development Companies (CDCs) and banks.

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Disaster Loans

Loans used to rebuild or maintain business following a disaster. 

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How The SBA Helps Women-Owned Businesses

The SBA’s Office of Women Business Ownership was created to enable and empower female entrepreneurs. Training and counseling are available to all women through Women’s Business Centers, with over 100 educational centers open nationwide.

The Office of Women’s Business Ownership collaborates with other organizations to provide additional resources to women entrepreneurs. We’ll explore some of these resources a little later in this post.

The SBA also provides federal contracting opportunities for women through the Women-Owned Small Business Federal Contracting program. Through this program, certified women-owned businesses can compete for federal contracts.

The SBA does not discriminate when it comes to funding and resources. Women-owned businesses can take advantage of everything that the SBA has to offer. Female entrepreneurs can apply for all SBA loans provided they have a “small business” as defined by the SBA and meet all other requirements. These loans open up funding opportunities for women to launch or grow their small businesses.

One important thing to note here is that the SBA is not a lender. Instead, this organization has created guidelines that keep interest rates low and repayment terms flexible. Money is loaned through lenders known as intermediaries. An intermediary can be a bank, credit union, nonprofit organization, or another lender. The SBA takes the risk off of lenders by guaranteeing large percentages of most loans. This makes it easier for lenders to loan to small businesses, which can then take advantage of these affordable financing opportunities when other options aren’t available.

How To Qualify For An SBA Loan

One of the most valuable resources available through the SBA is access to low-cost loans. Female entrepreneurs that don’t qualify for traditional loans can receive competitive rates and terms through SBA programs.

Starting or expanding your small business takes capital … and sometimes, lots of it. Purchasing or leasing a commercial building, buying equipment, and even having working capital for daily expenses can be a financial burden that most entrepreneurs can’t handle alone. This is when an SBA loan can really be beneficial.

Women can apply for any SBA loan product, provided they meet the requirements. The first requirement is that the business must meet the SBA’s size standards for a small business. The SBA limits the number of employees, annual revenues, and net worth of the business.

To receive an SBA loan, your business must be based in the United States. Most loans are only available to for-profit businesses, although SBA Microloans are also open to nonprofit childcare centers. Businesses in certain industries are also ineligible to receive SBA loans. These industries include, but are not limited to:

  • Multi-Level Marketing Schemes
  • Real Estate Investment Firms
  • Religious Institutions
  • Lending Firms
  • Businesses In Illegal Industries
  • Government-Owned Businesses
  • Gambling Businesses

When applying for SBA loans, your personal credit score will be a factor for approval. Though credit requirements vary by lender, most SBA intermediaries require a solid credit score at least in the mid-600s. Of course, the higher your score, the higher your chances are to receive a loan. Your credit report must also be free of:

  • Recent Bankruptcies
  • Tax Liens
  • Defaults On Government Loans

Other negative items on your credit report will need to be explained to your lender, and depending on the severity, may disqualify you from receiving a loan.

You must also show sufficient revenue to cover your monthly loan payment. Your lender will evaluate your revenue and your current debts during the underwriting process to determine if you can afford the new loan.

Depending on the loan you apply for and the total borrowing amount, you may also be required to pay a down payment and/or put up collateral to secure the loan. You may also be required to pay fees to receive your loan including but not limited to:

  • Guarantee Fees
  • Origination Fees
  • Packaging Fees
  • Loan Service Fees
  • Closing Costs

To qualify for an SBA loan, you must have invested your own time and money into your business. You also must have exhausted all other financing options before applying.

Can I Get An SBA Loan If I Have Bad Credit?

To qualify for an SBA loan, a solid credit score is required. Credit score requirements are not set by the SBA, but this doesn’t mean that your score isn’t important. Your personal credit score is, in fact, an important factor considered by intermediary lenders.

Most lenders want to see a credit score of at least 620, while scores over 700 are preferred. If your credit score falls below 620 or your credit report has negative items such as bankruptcies, foreclosures, or collections, the chances of receiving an SBA loan are slim to none.

If your credit prevents you from receiving an SBA loan, there are a few options. The first is to work on your credit, build your score, and apply when you meet all requirements. Start by receiving your free credit score online, reviewing your credit report, disputing any errors, and paying your current debt obligations as agreed. Although this can be a lengthy process, building your credit score will open up many affordable financing opportunities for you, including SBA loans.

If your financing need is more urgent, you can apply for loans and other financing for bad credit borrowers. Be aware, however, that these loans have less favorable terms, higher interest rates, and are more expensive than SBA loans.

Types Of SBA Loans For Women-Owned Businesses

Now that you have a general understanding of SBA loans, which loans are best for women-owned businesses? While all SBA loans are available to female entrepreneurs, three loans stand out the most: SBA 7(a) loans, Microloans, and CDC/504 loans. Let’s delve into the details of each type of loan to help you determine which is best for your business.

SBA 7(a) Loans

The SBA 7(a) loan is one of the most popular loan options for small business owners. Through the 7(a) program, borrowers are eligible to receive up to $5 million that be used for nearly any business purpose, including the purchase or expansion of an existing business, refinancing existing debt, or to pay startup costs.

Repayment terms are based on the borrower’s ability to repay and are up to 10 years for loans used as working capital or up to 25 years for loans used for commercial real estate. Interest rates are based on the amount borrowed and the repayment terms. The maximum interest rates for a 7(a) loan is the prime rate plus a markup between 2.25% and 4.75%. Check out the current rates for SBA loans.

SBA 7(a) Loan Base Rates + Markups

Loan Amount Less Than Seven Years More Than 7 Years

Up to $25,000

Base rate + 4.25%

Base rate + 4.75%

$25,000 – $50,000

Base rate + 3.25%

Base rate + 3.75%

$50,000 or More

Base rate + 2.25%

Base rate + 2.75%

SBA 7(a) loans of $25,000 or less do not require collateral. Loans of more than $25,000 up to $350,000 may require collateral based on the lender’s policies. All loans that exceed $350,000 must be secured with collateral. Fixed assets of the business are used to collateralize the loan, although trading assets and personal real estate may be used as collateral if needed. A guarantee fee must be paid by the borrower for 7(a) loans over $150,000.

Women-owned businesses may also qualify to receive the SBA’s Community Advantage loan. Through this program, business owners can receive up to $250,000. Loan proceeds can be used for nearly any business purpose, just like with the 7(a) loan. Repayment terms are the same as the 7(a) program, and the maximum interest rate is the prime rate plus 6%.

What makes this loan different from the traditional 7(a) loan? The Community Advantage program is designed for small businesses in underserved markets. Women-owned businesses, businesses located in low-to-moderate income areas, businesses in rural areas, and businesses that are less than 2 years old qualify for funding through this program.

SBA Microloans

If you have smaller capital needs, the SBA Microloan program may be the right financing solution for your business. Women-owned businesses can apply for up to $50,000 through this program. The average loan amount distributed through this program is $13,000. These loans are distributed through nonprofit lenders.

SBA Microloan proceeds can be used as working capital, to purchase equipment or fixtures, or to cover improvements. Microloans can’t be used to repay existing debt.

Maximum repayment terms are set at 6 years. The interest rate is based on the lender’s cost of funds. The lender can add a maximum of 8.5% to its cost of funds when distributing loans. There is no guarantee fee required with these loans. Collateral and/or a personal guarantee may be required by the lender as a condition of receiving the loan.

SBA Microloan Rates & Terms

SBA 504 Loans

Borrowing Amount

$500 – $50,000

Term Lengths

Up to 6 years

Interest Rates

6.5% – 13%

Borrowing Fees

Possible fees from the loan issuer

Personal Guarantee

Guarantee required from anybody who owns at least 20% of the business

Collateral

Collateral normally required, but depends on the lender

Down Payment

  • No down payment for most businesses
  • Possible 20% down payment for startups
  • Possible 10% down payment for business acquisition loan

SBA CDC / 504 Loans

If you need to purchase commercial real estate or update your existing facilities, consider applying for an SBA CDC/504 loan. This program is a little bit different from other SBA programs because you work with two different lenders.

Proceeds from an SBA CDC/504 loan can be used to purchase buildings, land, or long-term equipment, to improve land or update facilities, to pay costs for new construction, or to refinance debt connected to purchasing or updating facilities or equipment.

This is how the SBA CDC/504 program works: a Certified Development Company that is licensed through the SBA provides 40% of your project costs up to $5 million. A private lender provides 50% of the project costs. You are responsible for paying the remaining 10%. If you’re a new business or purchase a special-use property, you may have to pay up to 10% more.

Your CDC loan comes with repayment terms of 10 or 20 years. Interest rates for the portion of the project funded by the CDC are based on the 5-year and 10-year U.S. Treasury issues. Interest rates and repayment terms funded by the private lender vary.

SBA 504 Loan Rates & Terms

SBA 504 Loans

Borrowing Amount

No maximum, but the SBA will only fund up to $5 million

Term Lengths

10 or 20 years

Interest Rates

Fixed rate based on US Treasury rates

Borrowing Fees

  • CDC servicing fee, CSA fee, guarantee fee, third party fees (however, most of these fees are rolled into the interest rate or cost of the loan)
  • Possible prepayment penalty

Personal Guarantee

Guarantee required from anybody who owns at least 20% of the business

Collateral

Collateral required; usually the real estate/equipment financed

Down Payment

10% – 30%

For these loans, additional collateral is not typically required. The assets being purchased act as the collateral. All owners of 20% or more of the business are required to sign personal guarantees to receive this loan.

How To Apply For An SBA Loan

If your business needs financing and you meet the requirements of the SBA, you can apply for an SBA loan. The steps that you take next are determined by the type of loan you select.

To apply for an SBA 7(a) loan, the first step is to find an intermediary lender. You can do this through the SBA’s Lender Match service, which connects you with a lender in your area. You can also get referrals through your existing financial institution.

If you’re applying for an SBA Microloan, you’ll need to find a nonprofit lender in your area. If you’re applying for an SBA CDC/504 loan, you will need to find a CDC that is licensed with the SBA, as well as a private lender that will loan money to cover 50% of your project costs.

Once you’ve found a lender, you’ll fill out an application for the loan of your choosing. In addition to providing details about your business, you may also be required to provide a breakdown of ownership, a summary of how loan proceeds will be used, and details surrounding how you plan to pay back your loan.

Documentation will also be submitted with your application. This documentation will be used to determine if your business qualifies for funding. While requirements may vary by lender, expect to present the following items:

  • Business & Personal Credit Scores/Reports
  • Business Licenses
  • Articles Of Incorporation
  • Business & Personal Income Tax Returns
  • Cash Flow Statement
  • Balance Sheet
  • Profit & Loss Statement
  • Business Plan
  • Financial Projections

Depending on the loan product you select, additional documentation may be required. For example, a letter of intent from a private lender is needed when applying for an SBA CDC/504 loan.

As you move through the application process, be prepared to provide information on the collateral being used to secure the loan (if required) and all owners should be ready to sign a personal guarantee.

Once all documentation and information are gathered, the lender will evaluate your application, taking into consideration factors including credit score, credit history, time in business, and your ability to repay the loan. Don’t be surprised if the lender has questions or requests more information throughout the process. Make sure that your contact information is up to date and you make yourself available to keep the process moving forward.

The underwriters may take several weeks to review your full loan application. With banks and traditional lenders, you may wait 2 to 3 months (or longer) from the application stage to funding. Some lenders offer expedited services to help you get the money you need fast, so if time is an issue, shop around for intermediary lenders that offer fast approvals and funding, like SmartBiz or Lendio.

SmartBiz

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Through SmartBiz, you can apply to receive anything from $30,000 to $5 million to finance your small business. If you want to expand your business, refinance debt, hire employees, purchase inventory or equipment, launch a marketing campaign, or just have funds to use as working capital, consider applying for SmartBiz’s SBA 7(a) Working Capital and Debt Refinancing Loans.

Qualified borrowers can receive up to $350,000 through this program and can be funded in as quickly as 7 days. To qualify, you must have a minimum credit score of 650, a time in business of at least 2 years, and a credit history free of bankruptcies, foreclosures, charge-offs, and settlements. Your credit report should also be free of defaults on government-backed loans and tax liens.

You can also apply for up to $5 million for a 7(a) Commercial Real Estate Loan through SmartBiz. You must have a credit score of at least 675, a time in business of at least 2 years, and no delinquencies or defaults on government loans. The property being financed with loan proceeds should be at least 51% owner-occupied. You must also show proof of sufficient income to cover your loan payment.

Lendio

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Through Lendio, you can apply for the SBA 7(a) loan, the SBA 504 loan, and the SBA Express loan. Loans are available for $50,000 up to $5 million.

To qualify, you must meet all the requirements for receiving an SBA loan. Documentation can be uploaded securely to Lendio’s platform, and if you encounter any trouble along the way, you can work with your personal funding manager.

The average time for funding SBA loans through Lendio’s platform is 30 to 90 days.

Other Business Resources For Women

As mentioned earlier in this article, the SBA offers more than just loans for women-owned small businesses. One program offered through the SBA is the Women-Owned Small Business Federal Contracting program.

Through this program, women-owned businesses can bid on federal contracts with less competition. Only businesses that are certified WOSBs are eligible to compete for these contracts. To qualify, a business must be a small business as defined by the SBA, be at least 51% owned and controlled by U.S. citizens that are female, and have women in charge of day-to-day operations and long-term decisions.

Women that operate economically disadvantaged businesses can bid on federal contracts with even less competition, provided they meet all requirements of the SBA.

Even though legislation has been leveling the playing field for female entrepreneurs, the Center for Women’s Business Research found that almost half of women business owners don’t seek outside sources of funding for their business. The SBA believes that one reason women may not seek financing is that they don’t understand the process and may be unsure of who to ask for more information. The SBA has online resources, Women’s Business Centers, and local SBA offices that provide counseling, training, and loan information to women business owners.

There are plenty of other resources for female entrepreneurs outside of the SBA. The National Women’s Business Council offers nearly 200 resources through the Grow Her Business initiative, including accelerators and incubators, business competitions, conferences, crowdfunding, and alternative lender programs.

The National Association of Women Business Owners also provides resources to help empower women business owners. This organization offers training, education, and virtual networking to female entrepreneurs.

Entrepreneurs can also take advantage of many funding opportunities outside of SBA loans. Learn more about grants and small business loans available for women-owned businesses.

Final Thoughts

Women have come a long way in recent years, especially when it comes to entrepreneurship. The great news is that there are plenty of resources available to female entrepreneurs — you simply need to know where to look. By taking advantage of resources like SBA small business loans, you’ll be able to start, build, or grow your business, taking it to new levels you never thought possible.

The post SBA Loans For Women: What You Need To Know appeared first on Merchant Maverick.

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19 Reasons To Get A Business Loan (And How To Get Started)

business loan reasons

There are so many good reasons to get a business loan that you probably haven’t even considered half of them. For example, have you ever thought about taking out a loan to hire a new employee or getting a loan for the sole purpose of building your business’s credit? Those are both valid reasons to apply for business financing, and there are many other reasons that might not have ever crossed your mind.

While many small businesses are debt-averse — afraid to apply for financing because they don’t think they have good enough credit, or unsure if they can afford repayments — it’s a simple fact that you need money to make money. In some ways, living debt-free can actually hinder your business’s growth or even its ability to stay afloat. You might also be surprised at the wide variety of financing products available for almost any type of business pursuit.

Even if you’ve never applied for financing before, a business loan is definitely something to think about if you are short on funds or are considering a new opportunity or investment that could advance your business.

Read on for a look at 19 reasons you might want to take out a business loan.

Or, skip down to the “Types of Business Loans” section to see if what type of loan you should pursue for your particular business need.

1. Start A Business

Want to get your brand-new business off the ground with a running start? A startup loan can help you do just that. A few startup-friendly lenders will lend to brand-new businesses with no time in business, while others will want to see that you have 6 months’ worth of revenue.

However, startup loans are not by any means easy to get for spanking new businesses lacking in experience, especially if your business is still in the “idea stage.” If this sounds like you, you might consider a crowdfunded loan or small business grant in lieu of traditional financing.

2. Increase Working Capital

Working capital—the money required for day-to-day business operations—is a big reason businesses might need to apply for financing. For myriad reasons, your business may simply be short on cash. Sporadic cash flow, business growth spurts, and seasonal sales fluctuations are just a few reasons businesses apply for a working capital loan.

In many circumstances, you might not know exactly how much money you need, but expect you’ll need some extra working capital in the near future. In such cases, you might be wise to apply for a short-term business line of credit that you can draw from as needed.

3. Purchase Inventory

Businesses new and old, large and small, commonly apply for financing to cover the cost of purchasing inventory or raw materials to make products. A healthy inventory allows you to have enough product on-hand to meet demand and keep customers happy.

Retail businesses, in particular, often require financing to replenish stocks, particularly is your store sees a big sales up-tick during certain seasons. For example, a company that sells a popular holiday gift might take out a short-term loan to purchase product ahead of the holiday season, and then repay that loan with the proceeds of their seasonal sales.

4. Purchase Equipment

Almost all businesses require equipment of some sort — especially businesses involved in manufacturing, as well as those in the food and service industries. Whether you need professional gym equipment or even a business vehicle, such assets can represent a major expense to a new, struggling, or expanding business.

Purchasing equipment may necessitate a business loan, or perhaps you’d rather charge it on your business credit card if your credit limit is high enough. One popular way to buy business equipment is equipment financing, as this type of loan typically does not require any collateral other than the equipment itself.

5. Hire New Talent

According to the National Small Business Association, data going back as far back as 1993 shows a strong connection between businesses’ ability to hire employees and their ability to get financing. Indeed, payroll is a significant expense businesses must contend with, including not just wages, but healthcare and other benefits, as well as employee training. In some cases, businesses even have to reduce their number of employees or scale back employee benefits if they don’t have sufficient access to financing.

While taking out a loan to hire someone is always a risk, it’s true that employees are a business’s greatest asset; if the employee is worth their salt, they will eventually justify the expense of the loan.

6. Expand Products/Services

Businesses in the growth stage, as well as stable businesses trying to increase revenues and/or stay competitive with peers, will need to expand their offerings from time to time. Regardless of how you’re going to achieve a product or service expansion, an installment loan or another type of business loan can help you make the necessary investments to keep your offerings fresh and relevant.

7. Open A New Location

Your business is growing fast and you need to open a new location. Expanding to a new location is a major undertaking requiring a lot of capital, but one that can pay off tremendously in time.

If you have at least two years’ time in business, you may be eligible for a long-term business expansion loan with low interest rates. Businesses purchasing real estate to open a new location be eligible for a commercial real estate mortgage such as those offered by the SBA through the  SBA CDC/504 program. There is even such a thing as real estate crowdfunding for businesses.

Or, say you own an online business and want to establish your first physical location, you might consider a startup loan to help get your new operations up and running.

8. Pay Taxes

Ideally, you will set aside enough money throughout the year to pay your business taxes when the tax man comes a knockin’. But alas, life doesn’t always work out that way, which is why small businesses frequently take out loans to pay taxes.

Rather than get in trouble with the IRS for not paying your taxes, you are much better off using a business loan or even a cash advance to pay your taxes.

9. Create A Safety Net

A safety net is a cash or credit “cushion” you can use to fall back on during slim times. Perhaps you own a seasonal business or simply have cash-flow problems from time to time; even though you don’t require any extra working capital at the present moment, you feel good knowing it’s available if and when you need it.

You’re probably especially aware of the need for a safety net if you’ve been caught without one in the past, and had to pay overdraft bank fees or get an expensive short-term loan to cover unforeseen shortfalls.

A revolving line of credit, working capital loan, or even a business credit card can all help provide a safety net for a future rainy day. If there are no rainy days on the immediate horizon, you will have some peace of mind knowing you’re prepared for anything.

10. Refinance Another Loan

While it may seem strange to take out a loan to pay off another loan, debt refinancing is a popular and sometimes necessary reason to take out a business loan. You might choose to refinance your business debt because you are offered a loan with better rates and fees, or you might choose to consolidate multiple loans into one loan.

If you’re considering refinancing a loan you are currently paying on, check out our Complete Guide To Refinancing Small Business Debt.

11. Buy A Business

A business acquisition loan, or a loan to buy a business, is another popular category of business loans. You can take out this kind of loan to expand your current business’s offerings with the purchase of another business, or to buy a business even if you don’t have an existing business (in which case you will probably need a startup loan).

Depending on your business credentials, the health of the business you want to purchase, and other factors, you may be able to get a business acquisition loan through a bank or the SBA. You might also finance your business purchase through a business expansion loan or a startup loan from an online lender. There are also franchise loans available to individuals looking to purchase a new or existing franchise.

12. Buy Out A Partner

business loan vs personal loan

Sometimes it just doesn’t work out with a business partner. But just because your partner agrees to be bought out doesn’t mean you’ll necessarily have the money to do so. In these circumstances, you can get a business loan to execute a partner buyout.

There is not really a specific type of loan for partner buyouts but you can use many standard business loans for this purpose, including an SBA standard 7(a) loan.

13. Cover Construction Costs

Perhaps you want to expand or improve your physical business location(s) with renovations or improvements, or maybe you want to construct a brand-new building for your business. Either way, a commercial real estate loan—also called a commercial mortgage or commercial construction loan—is the type of financing you need.

You can use a commercial construction loan, typically obtained through a bank or credit union, to pay for construction costs such as labor, materials, and land development. Hard money loans are another option to pay for business construction.

14. Cover Unpaid Invoices

Businesses with a lot of outstanding invoices can free up pending earnings using a type of loan called invoice factoring.

The financer fronts you the money that your customers owe you, and then you repay them as the customers pay off their debts. With this type of financing, your business does not necessarily need to have good credit, as the invoice factor is more concerned with your customers’ credentials than with your business’s.

15. Buy Insurance

Insurance is a major business expense. Business insurance requirements vary by state and industry. Liability insurance, property insurance, employee healthcare insurance, malpractice insurance, and flood insurance are just a few types of insurance your business might need. For certain business loans, you even need insurance in order to get the loan in the first place. For example, you may need life insurance and various other types of insurance to qualify for an SBA loan.

While, ideally, insurance costs will be included in your budget as a percentage of your gross sales, a business loan or line of credit can help your business pay your insurance policy during times you cannot afford to do so.

16. Cover An Unexpected Expense

Remember that safety net we talked about earlier? Well if you don’t have it, you could have no choice but to take out a loan after-the-fact to cover an unexpected business expense that you didn’t budget for. This could be anything from replacing some expensive equipment that failed unexpectedly to making repairs after a natural disaster. Fortunately, an emergency business loan can help your business cover the expense of just about anything life can throw at ya.

17. Advertise Your Business

Marketing/advertising is a business expense that can cost a lot of money upfront but will hopefully pay off in the long run. SEO and online advertising, commercials, billboard advertising, radio ads, and promotional materials are all types of marketing for which you could need a loan, especially if you’re hiring a marketing agency to try to achieve big results.

18. Build Credit

A lot of small businesses don’t have much of a business credit history, even though the business owner herself might have good credit. Taking out a business loan is one way of establishing a business credit history rather than using your personal credit for your business. Building business credit will allow you to separate your personal and business credit profiles, and will also put you in a good position if you need to ask for a business loan in the future.

For more information on this and other ways to build your business credit history read my Ultimate Guide To Improving Your Business Credit Score.

19. Take Advantage Of A Business Opportunity

Every now and again, your business may be presented with an awesome opportunity that is just too good to pass by—even if you can’t afford the whole thing up front. Business success requires a lot of pragmatism and planning, but there is also some degree of risk-taking and, dare I say it, magic. Whatever that special something is, if you get a “spidey sense” that a certain opportunity will help take your business to the next level, it can pay off handsomely to trust your intuition and go out on a limb to make that investment.

Of course, going out on a limb in this case likely means taking out a business loan. Just make sure you’re not so focused on the opportunity that you rush things and say yes to the first loan offer you come across. It’s absolutely essential to compare multiple loan offers to make sure you are getting the best deal.

Types of Business Loans

I’ve discussed many types of business loans in this post, and it can be confusing to sort through all the different loan categories if you don’t know what you need. To help simplify things, I’ve made a chart with brief explanations of different loan types discussed, and below that, I included longer descriptions of some popular loans you should know about.

Resource Description

Startup Loan

Financing for businesses 6 months old or younger.

Crowdfunded Loan

Funds sourced from a network of backers or investors. 

Small Business Grant

Free funds granted to businesses, normally for a specific project. 

Working Capital Loan

Financing to cover daily operating expenses of running a business.

Business Line of Credit

A credit facility from which your business can borrow money at any time. 

Short-Term Loan

Usually a higher-interest loan that you pay back quickly, typically within a year. 

Business Credit Card

Credit card used for business expenses.

Equipment Financing

Self-securing loan to finance major equipment purchases.

Installment Loan

A standard type of business loan also called a term loan, repaid in regularly scheduled installments.

Long-Term Business Expansion Loan

Usually a large, low-interest loan, repaid over 5 or more years.

Real Estate Crowdfunding

Crowdfunded capital to purchase real estate for a business.

Merchant Cash Advance

Expensive but quick source of business financing for merchants who need fast funds.

Business Acquisition Loan

Loan to purchase a business.

Franchise Loan

Loan to open a new franchise or purchase an existing franchise.

SBA 7(a) Loan

Standard business loan backed by the U.S. Small Business Administration.

Commercial Real Estate Loan

Long-term loan to purchase commercial real estate for a business.

Hard Money Loan

Shorter-term real estate loan similar to a mortgage, requiring the property you’re purchasing as collateral. 

Invoice Factoring

Service which converts your small business’s outstanding invoices to cash.

Emergency Business Loan

Fast loans to cover business funding emergencies. 

Installment Loan

Term loans, also called “installment loans” are a broad category of business loans. This type of funding is paid back in periodic installments, with interest. It may be a short- or long-term loan. Higher-quality term loans typically give you a longer amount of time to repay the loan, and let you pay via monthly installments (vs. weekly or daily installments with short-term loans). However, you will need at least 2 years in business, plus good credit and strong revenues, to qualify for a long-term business loan, particularly if you borrow from a bank; online lenders have less strict requirements.

Long- and medium-term loans are useful for established businesses making long-term investments in fixed assets like property or renovations, though they can also be used for working capital.

You can get term loans from a bank or credit union, though the lenders below offer reasonably quick installment loans as well:

Lender Borrowing Amount Term Req. Time in Business Min. Credit Score Next Steps

smartbiz logo

$30K – $350K 10 – 25 years 2 years 650 Apply Now

$2K – $5M Varies 6 months 550 Apply Now

$25K – $500K 6 months – 5 years 2 years 620 Compare

lending club logo

$5K – $300K 1 – 5 years 12 months 600 Compare

Short-Term Loan

Short-term business loans—installment loans that are repaid in 3 years or less, or sometimes in a matter of months—usually come in smaller amounts with higher rates when compared to long-term loans. Short-term loans also tend to require weekly or daily repayments. Although they are more expensive and less desirable than long-term loans in a lot of ways, short-term loans are relatively fast and easy to get and don’t have as stringent borrower requirements in terms of credit score, income, or time in business.

Because they have such a short repayment schedule, short-term loans are good for short-term problems, such as one-time expenses/investments.

The following lenders offer good terms and reasonable rates if you need a short-term loan:

Lender Borrowing Amount Term Interest/Factor Rate Req. Time in Business Min. Credit Score Next Steps

$5K – $500K 13 – 52 weeks x1.029 – x1.1872 9 months 550 Apply Now

$5K – $300K 6, 9, 12, 15, or 18 months x1.15 – x1.31 1 year 600 Apply Now

$5K – $500K 3 – 36 months x1.003 – x1.04/mo 12 months 500 Apply Now

$2K – $5M Varies As low as 2% 6 months 550 Apply Now

Merchant Cash Advance

Merchant cash advances are not technically loans; rather, they are advances on your future sales or revenue. With a cash advance, you’ll receive a lump sum, which you’ll then begin repaying out of your daily credit card sales.  The interest charged on MCAs is usually calculated in terms of a factor rate rather than interest rate—for example, you might have a factor rate of 1.3, which means you’ll have to repay 1.3x the amount you borrowed. A typical factor rate for an MCA is between 1.2 and 1.4.

An MCA is good for an emergency situation where you need a large sum of money quickly and/or have bad credit, but you have a healthy daily cash flow. It does not help you build business credit because it’s not actually a loan and these lenders don’t usually report to credit agencies.

Generally, we don’t recommend MCAs if you’re eligible for another type of financing, but the following cash advance providers are reputable:

Lender Borrowing Amount Min Credit Score Time To Funding Next Steps

$5K – $500K 550 1-3 Days Apply Now

$2K – $5M 550 1-2 Days Apply Now

$5K – $500K 500 2-5 Days Apply Now

$5K – $250K 500 2-5 Days Apply Now

Business Credit Card

Business credit cards are useful the same way personal credit cards are useful—they allow you to pay for large or small expenses even if you don’t have the cash on hand, while also earning you rewards and building your credit history. Of course, you can get yourself into trouble if you don’t pay off the balance in a reasonable amount of time. With that said, business credit cards are super handy for any type of business expense that doesn’t exceed your credit limit, particularly if you can find a card with a 0% introductory rate, like the ones below.

Credit Card 0% Introductory Period Next Steps
American Express Blue Business Plus 0% APR on purchases and balance transfers for the first 15 months Compare
Chase Ink Business Unlimited 0% APR on purchases and balance transfers for the first 12 months Apply Now
American Express SimplyCash Plus 0% APR on purchases for the first 9 months Compare
Capital One Spark Cash Select For Business 0% APR on purchases for the first 9 months Compare
Bank of America Business Advantage Cash Rewards Mastercard 0% APR on purchases and balance transfers for the first 9 months Compare

Even if you don’t have an expense looming on the immediate horizon, a business card is just good to have in case you need it.

Business Line of Credit

A business line of credit is an amount of money available for you to draw from as needed. You only have to pay back what you borrow (plus interest). Similar to term loans, you can get a line of credit from a bank or online lender. Not unlike a business credit card, a line of credit is useful to have just in case you need to make up for any type of shortfall or gap. An LOC can come in handy especially if you have a seasonal business or a business with occasional cash flow problems. Additionally, a line of credit, like the ones offered by the lenders below, can help you build business credit.

Lender Borrowing Amount Draw Term Draw Fee APR Next Steps

$6K – $100K 6 months None Starts at 13.99% Apply Now

$2K – $5M Varies Varies Varies Apply Now

$5K – $5M 6 months 1.50% per draw 21% – 65% Apply Now

$1K – $100K 12 weeks None 12% – 54% Apply Now

Invoice Factoring

Invoice financing, sometimes called invoice factoring, is when you sell your business’s unpaid invoices to a credit facility. The facility fronts you the amount of the unpaid invoice (minus a percentage they charge as a fee), and you then repay the lender as your customers repay you. Note that you do still need to repay the lender even if your customer never pays you.

Invoice financing is a useful type of financing for businesses with a lot of unpaid invoices that want to free up some cash. The borrower requirements are usually pretty relaxed, as invoice finance companies are more concerned with your customers’ creditworthiness rather than your business’s.

Equipment Financing

Equipment financing is useful for the purchase of any type of equipment or machinery your company needs but can’t afford outright. This type of “self-securing” financing does not require any collateral other than the equipment itself, and you usually don’t need to have excellent credit or much else in the way of borrower credentials. If you default on the loan you could lose the equipment, but if you make all your payments, you will eventually own the equipment.

We recommend the following equipment financers:

Lender Borrowing Amount Term Interest/Factor Rate Additional Fees Next Steps

$2K – $5M Varies As low as 2% Varies Visit Site

$5K – $500K 24 – 72 months Starts at 5% Yes Compare

Up to $250K 1 – 72 months Starts at 5.49% Varies Compare

Do You Need A Business Loan? Next Steps

If you’ve decided you need a business loan, it’s time to take the next steps to secure one.

1. Compare the different types of small business loans discussed above and determine which type of loan best suits your need. Or, read more about common types of business loans.

2. Take a look at our free guide to small business loans.

3. Calculate how much you can afford to borrow.

4. Take a look at our favorite lenders.

Once you complete your initial research by taking these steps, you should have a very good idea of what to look for in a loan and which type or types of financing are best for your situation. You’re now ready to start applying!

To save time applying to multiple loans, you might consider using a lending matchmaker service like Lendio, which allows you to compare multiple loans tailored to your needs.

Final Thoughts

Applying for business financing can be daunting, given all the myriad types of loan products out there, and the possibility of being rejected for financing. You might also be worried about your ability to make payments on the loan.

However, if you have a good reason to apply for a business loan, there is a very decent chance that there is a lender willing to lend to you with feasible, realistic terms. With those funds, you’ll be able to address whatever needs your business has while building up your business credit profile with each repayment.

Lender Borrowing Amount Term Interest/Factor Rate Req. Time in Business Min. Credit Score Next Steps

$5K – $500K 13 – 52 weeks x1.029 – x1.1872 9 months 550 Apply Now

$5K – $300K 6, 9, 12, 15, or 18 months x1.15 – x1.31 1 year 600 Apply Now

$5K – $500K 3 – 36 months x1.003 – x1.04/mo 12 months 500 Apply Now

$2K – $5M Varies As low as 2% 6 months 550 Apply Now

The post 19 Reasons To Get A Business Loan (And How To Get Started) appeared first on Merchant Maverick.

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Top Business Financing Options For Contractors

As a professional contractor, it takes the right resources to complete each job. From equipment to employees and insurance, careful planning, preparation, and the right tools for the job are always required. No matter what type of contractor you are, you have one thing in common with other contractors and business owners: the need for capital to operate and expand your business.

While it’s great to be able to pull the funds you need from your own bank account to cover your expenses, this isn’t always a possibility. For times when you need financial help, consider a business loan for contractors. A business loan can be used to expand your business, fund daily operating expenses, or fill in gaps during seasonal lulls.

Before you start your loan application, first understand the types of loans available to you and which is best for boosting your business. Whether you’re an electrician, carpenter, plumber, painter, or another type of contractor, you have financing options.

Read on to learn more about business loans for contractors, choosing your lender, and how to apply for the financing you need.

Financing Need Best Loan Type Recommended Lender
Purchasing Equipment Equipment Loan Lendio
Supplies & Inventory Line of Credit Kabbage
Working Capital SBA Loan SmartBiz
Marketing & Advertising Short-Term Loan LoanBuilder
Emergency Funds Business Credit Card Chase Ink Business Cash
Cash Shortages Invoice Financing BlueVine
Hiring, Training & Payroll Installment Loan OnDeck

Purchasing Equipment

No matter what industry you’re in, as a contractor, heavy equipment is a must for your business. If you specialize in land grading, a skid steer is necessary to complete each job. Maybe you need a work van or truck to move from job to job or even an equipment trailer to transport your equipment around town. Regardless of what type of equipment you need for your projects, one thing is certain: equipment can be expensive.

Even if your business is successful, tying up tens of thousands – or even hundreds of thousands – of dollars from your own pocket could be financially damaging to your company. Instead of shouldering this financial burden alone, consider applying for an equipment loan.

Equipment Loans

With an equipment loan, the lender provides funding to purchase equipment. You’ll pay just a small down payment — typically 10% to 20% of the purchase price — and can then put the equipment into use immediately. You’ll then repay the loan with interest through regularly scheduled payments that are typically made monthly or weekly.

Equipment loans can be used to purchase all types of equipment, from heavy equipment to vehicles. The equipment purchased with loan proceeds is used as the collateral. Repayment terms, interest rates, and down payment requirements are determined by the lender and are typically based on creditworthiness, annual revenue, and other factors.

Recommended Option: Lendio

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When you’re shopping around for business loans, Lendio is an excellent resource. Lendio is a loan aggregator, which means that you’ll connect with multiple lenders with just one application. Once you’ve filled out the application, you’ll receive offers and can easily compare which are the best for your business.

Lendio connects contractors and other business owners with a variety of financial products, including equipment loans. Interest rates start at 7.5%. Borrowers can apply to receive between $5,000 and $5 million. Repayment terms of 1 to 5 years are available. Loan proceeds can be used for the purchase of any type of equipment, including heavy equipment, software, office furniture and fixtures, vehicles, appliances, and more.

To qualify, you must have $50,000 in annual revenue. You must be in business for at least 12 months, and a minimum credit score of 650 is required. If your credit score is lower than 650, you may be matched with a lender if you have solid cash flow and revenue.

Supplies & Inventory

In addition to equipment, supplies and inventory are also important to the operations of your business. No matter what type of supplies you need — lumber, hand tools, paint, ladders — these expenses can pile up quickly.

If you’re in need of inventory and supplies but your cash flow is a little short, you can receive a loan to cover this expense. A financial product that works well for supply and inventory purchases is a line of credit.

Lines Of Credit

A line of credit is a flexible financing option that can be used as needed. When you receive a line of credit, you can make multiple draws up to and including your assigned credit limit. Once a draw is initiated, most lenders transfer funds immediately, which are then available in your business checking account as soon as the next business day.

A line of credit can be used to purchase supplies and inventory and comes in handy when you’re unsure of exactly how much money you need. Interest is only charged on the borrowed amount. As you repay your line of credit, funds become available for you to use again as needed.

Credit score, time in business, and annual revenue requirements vary by lender. Some lenders put more weight on incoming cash flow over personal credit score, making it possible for business owners with credit challenges to receive a loan.

Recommended Option: Kabbage

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Kabbage is a lender that offers lines of credit up to $250,000 to qualified borrowers. Repayments are made on a monthly basis over a period of 6 or 12 months, which is determined by the amount borrowed. Fee rates vary from 1.5% to 10% based on business performance.

One of the benefits of working with Kabbage is access to the Kabbage card. This card gives you instant access to funding. Use your Kabbage card like a credit card for on-the-spot payments without waiting for a transfer. Once you’ve made a purchase, a new loan will be created under your account with the same rates and terms as traditional draws.

To qualify for a Kabbage line of credit, you must have either $50,000 in annual revenue or $4,200 in monthly revenue for the last 3 months. You must be in business for at least 1 year to qualify. During the application process, your business accounts — such as business checking, PayPal, Amazon, and Stripe — are connected to determine your maximum credit limit.

Working Capital

Every business needs working capital — money that’s used to pay day-to-day operating expenses. While your incoming cash flow should cover these regular expenses, it’s not uncommon to come up a little short from time to time. A slow season, unexpected expenses, and other issues could affect your incoming cash flow and your amount of working capital. When you don’t have adequate working capital, operations can slow … or come to a screeching halt.

If you need working capital and you have a solid credit score, one option to consider is a Small Business Administration loan.

SBA Loans

The Small Business Administration, or SBA, helps business owners succeed through its resources and programs, including small business loans. The SBA offers multiple loan options for small business owners. All loans are distributed through SBA-approved lenders known as intermediaries.

Loan Program Description More

7(a) Loans

Small business loans that can be used for many many business purchases, such as working capital, business expansion, and equipment, inventory, and real estate purchasing.

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Microloans

Small loans, with a maximum of $50,000, which can be used for working capital, inventory, equipment, or other business projects.

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CDC/504 Loans

Large loans used to acquire fixed assets such as real estate or equipment. 504 Loans are offered in partnership with Community Development Companies (CDCs) and banks.

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Disaster Loans

Loans used to rebuild or maintain business following a disaster. 

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The 7(a) loan program provides up to $5 million for any business purpose with repayment terms of 10 or 25 years. The Express loan is similar to the 7(a) loan but is available in amounts up to $350,000 and comes with an approval decision guaranteed within 36 hours. The SBA Microloans program provides up to $50,000 for smaller capital needs. There are also financing opportunities for veterans, service members, and businesses operating in underserved areas.

While SBA loans have more stringent borrower requirements than other loans, those who qualify will receive competitive interest rates and terms. Many SBA loans, including the ones previously mentioned, can be used for working capital needs.

Recommended Option: SmartBiz

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SmartBiz makes the SBA loan application process easier than ever. Through this lender, you can apply for loans between $30,000 and $350,000 to use for working capital or debt refinancing.

Interest rates are currently 8% to 9% — the prime rate plus 2.75% to 3.75%. Fees will need to be paid to receive a loan, including a packaging fee, referral fee, and guarantee fee. Specific collateral is not needed but a blanket lien is required.

To qualify for a SmartBiz SBA loan, you must be in business for at least 2 years. A minimum personal credit score of 650 is required. Other credit requirements include no bankruptcies or foreclosures in the last 3 years, no open tax liens, and no outstanding collections. Business owners that have past defaults or delinquencies on government loans are ineligible. You must meet the standards of a small business as defined by the SBA, which limits annual revenues, number of employees, and company net worth. You must also show that you have sufficient cash flow and can afford to pay the loan.

Marketing & Advertising

You can’t grow your contracting business without marketing and advertising. To gain new clients and increase your revenue, a marketing and advertising campaign is a must.

Unfortunately, this comes at a price. Of course, you could rely on free methods to get the word out about your business. However, to efficiently and effectively scale your business, a paid campaign is key. A short-term loan could provide you with the extra funds you need to launch your marketing and advertising campaign.

Short-Term Loans

A short-term loan is a loan for a specific amount of money that is paid back over time. While many short-term loans have repayment terms of 12 months or less, more lenders are loaning money with longer terms up to 3 years.

Short-term loans can be used for any business purpose, including funding a marketing and advertising campaign. Many short-term lenders have fewer requirements and can release funds quickly – sometimes even within 24 hours.

One difference with short-term loans, when compared to other financing options, is that a factor rate is used in place of an interest rate. This factor rate is a multiplier that determines the lender’s fee, which is added to the loan balance.

If you pursue a short-term loan for marketing and advertising, it’s necessary to plan out your campaign. Since your loan will be for a specific amount, you’ll need to know exactly how much you plan to spend. If you’re looking for a more flexible option, consider a line of credit to fund your next campaign.

Recommended Option: LoanBuilder

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LoanBuilder, by PayPal, offers short-term loans for $5,000 to $500,000. Repayment terms are between 13 to 52 weeks. Repayment terms are based on the amount of the loan. A one-time fee of 2.9% to 18.72% of the borrowed amount is added to the loan. A blanket lien is required to receive this loan. Once approved, funds can be transferred to your banking account as soon as the next business day.

To qualify for a LoanBuilder loan, your business must be in operations for at least 9 months. An annual revenue of $42,000 and a personal credit score of at least 550 is required. You can’t have any active bankruptcies in order to qualify. The lender will review your credit history and the health of your business to determine your maximum loan amount and rates.

Emergency Funds

An unexpected expense pops up, and you don’t have the money in your account to cover it. This is a scenario that can be stressful for the most level-headed and prepared business owner.

If you don’t have an emergency fund of your own and shuffling your finances to cover an emergency expense isn’t working out, take control of the situation by applying for a business credit card.

Business Credit Cards

If you’ve ever had a personal credit card, you already know how this works. After approval, the lender gives you a credit card that can be used anywhere credit cards are accepted. Your credit card comes with a credit limit. You can make multiple purchases up to and including this limit.

Each month, you make a payment toward the balance and the interest charged by the lender. As you pay down the balance, funds become available to use again. Interest is charged only on the borrowed portion of funds. A credit card can be used for any business expense, such as purchasing supplies or paying recurring expenses. A credit card is a good choice for emergency expenses because it’s available to use immediately. Once you’re approved by the lender and have received your card, you can use it whenever you want without having to wait.

Interest rates are based on your creditworthiness. Credit cards for fair credit scores are available. If your score is very low, you may qualify for a secured card, which requires a cash deposit. By using and paying your card off responsibly, you can increase your credit limit, improve your credit score, and qualify for additional cards or loans with better rates and terms.

Many credit cards even come with rewards programs, which reward you for using and paying off your card. You’ll rack up points to receive cash back, hotel stays, or other benefits with responsible use of your card.

Recommended Option: Chase Ink Business Cash

Chase Ink Business Cash



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Annual Fee:


$0

 

Purchase APR:


15.24% – 21.24%, Variable

The Chase Ink Business Cash credit card is a popular choice with business owners that have good to excellent personal credit. The Chase Ink Business Cash card comes with an introductory 0% APR for the first 12 months. After the introductory period, rates are 15.24% to 21.24%.

If you spend $3,000 or more within the first 3 months of opening your account, you’ll receive $500 cash back. The rewards continue with 5% cash back on the first $25,000 spent toward internet, cable, phone, and office supply store purchases every year. You’ll receive 2% cash back for the first $25,000 spent at restaurants and gas stations every year, and 1% cash back on every other purchase.

Cash Shortages

From time to time, cash shortages occur in your business. Even when cash flow slows, expenses still need to be paid. Cash flow shortages occur for a number of reasons, from winter slowdowns to slow-paying customers.

If your issue is the latter and you’re waiting to receive payment for completed jobs, cut down your waiting time by applying for invoice financing.

Invoice Financing

Invoice financing is a type of loan that is borrowed against unpaid invoices. There are two types of invoice financing: invoice factoring and invoice discounting.

Invoice Financing Invoice Factoring

Uses invoices as collateral for a line of credit

Sell invoices for immediate cash

You are granted a credit facility based on the value of your unpaid invoices, and can draw from your available funds at any time

Factor gives you an advance when the invoice is sent and sends you the rest once the customer pays (minus a factoring fee)

You are responsible for collecting invoice payments

Factor is responsible for collecting invoice payments

With invoice factoring, you’ll receive a partial payment for your unpaid invoices. Once the lender collects the total invoice amount from your customer, you’ll be paid the remaining amount, minus fees and interest.

With invoice discounting, you’ll receive approximately 90% to 95% of the total invoice. Once you collect full payment from the customer, you’ll repay the lender for the loan, including interest and fees.

Personal credit often doesn’t play a significant role in qualifying for invoice financing. Instead, the quantity and quality of the invoices are most important. That is, are the invoice totals enough to cover fees and interest charged by the lender, and are your customers likely to pay? You also must be a B2B business in order to qualify for invoice financing.

Recommended Option: BlueVine

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BlueVine provides invoice factoring lines up to $5 million. Rates are as low as 0.25% per week, with funding approvals as fast as 24 hours.

With BlueVine’s invoice factoring, you’ll receive 80% to 85% of your invoice total immediately. Once the invoice is paid, you’ll receive the remaining amount after fees have been paid to the lender.

To qualify, you must have a personal credit score of at least 530 and a time in business of at least 3 months. You must also be a B2B business with at least $100,000 in annual revenue.

If you don’t qualify for invoice factoring from BlueVine, the lender also offers lines of credit up to $250,000 with rates starting at 4.8%.

Hiring, Training & Covering Payroll

Your business is growing, and you’re taking on new projects. This is what you’ve worked so hard to achieve, but what happens when you don’t have the manpower to complete all your jobs? The logical answer is to hire and train new employees, but what do you do when you don’t have the funds to bring on new hires?

Whether you’re stalling on hiring and training new employees due to financial issues or you’re struggling to cover your current payroll, an installment loan may be the solution.

Installment Loans

An installment loan is a loan that is paid in regularly scheduled installments. You’ll receive a lump sum of money, which is paid back over time along with interest.

Installment loans provide you with the money you need for any business expense. You’ll have money in your account to pay your expenses, such as covering payroll or hiring new employees, and can repay it through more manageable daily, weekly, or monthly payments. Rates, terms, and borrowing limits vary by lender and are typically based on creditworthiness and your ability to repay the loan.

Recommended Option: OnDeck

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OnDeck offers small business installment loans up to $500,000. Eligible borrowers can apply for short-term loans with repayment terms of 3 to 12 months or long-term options with repayment terms of 15 to 36 months. Daily or weekly repayment plans are available.

Short-term loans have simple interest rates starting at 9%, while long-term loans have annual rates as low as 9.99%. An origination fee between 2.5% and 4% of the total loan amount is required, and fees are reduced for repeat customers. Interest rates are based on business and personal credit scores, as well as the performance of your business.

To qualify, your business must be in operations for at least one year. You also need a personal credit score of at least 500 and $100,000 in annual revenue.

Best Financing Options For Contractor Startups

You have the skills, you have the drive, and you’re ready to start your contracting business. There’s just one problem: you don’t have the money to start your business and traditional lenders aren’t taking you seriously. Before you throw in the towel, know that there are financing options that will help you get your business off the ground.

Startup and new business owners can look into SBA Microloans, which provide up to $50,000 to cover startup expenses. The average loan amount given through this program is $13,000. SBA Microloans are available through SBA-approved nonprofit intermediary lenders.

SBA 504 Loans

Borrowing Amount

$500 – $50,000

Term Lengths

Up to 6 years

Interest Rates

6.5% – 13%

Borrowing Fees

Possible fees from the loan issuer

Personal Guarantee

Guarantee required from anybody who owns at least 20% of the business

Collateral

Collateral normally required, but depends on the lender

Down Payment

  • No down payment for most businesses
  • Possible 20% down payment for startups
  • Possible 10% down payment for business acquisition loan

If you don’t qualify for an SBA loan, you can also apply for microloans through nonprofit organizations and alternative lenders like those below:

Lender Max. Borrowing Amount Rates Req. Credit Score Next Steps

$500,000

2.9% – 18.72% factor rate

550

Apply Now

$250,000

9% – 36% factor rate

500

Apply Now

$500,000

9.4% – 99.7% APR

500

Apply Now

Another option to consider is taking out a personal loan to use for startup expenses. With this strategy, you can receive an affordable loan with favorable terms (if you have a solid credit score) from lenders like these:

Lender Borrowing Amount Term Interest Rate Min. Credit Score Next Steps

$2K – $25K 2 – 4 years 15.49% to 30% 600 Apply Now

$1K – $50K 3 or 5 years 8.16% – 27.99% 620 Apply Now

$2K – $35K 3 or 5 years 6.95% – 35.99% APR 640 Apply Now

lending club logo

$1K – $40K 3 or 5 years 5.32% – 30.99% 640 Compare

Peer-to-peer, or P2P, loans may be another option for funding your new business venture. Crowdfunding and loans from friends and family are additional loan options available to cover startup costs.

What To Consider When Choosing A Lender

5 C's of Credit: What Lenders Look For

Before you begin the application process, you must choose the right lender. The internet gives you access to more lenders than ever. While this gives you more choices, it can also complicate the process of finding the right lender that offers the loan you need.

The goal of your loan is to advance your business. You want to ensure that your return on investment is worth the cost of the loan. You also want to make sure that you work with a lender that provides the best rates and terms for your financial situation.

To narrow down your choices, ask yourself a few key questions. Once you’ve answered these questions, you’ll be one step closer to selecting your lender and applying for your business loan.

Why Do I Need A Loan?

Before you apply for a loan, ask yourself why you need the money. Having a plan for loan proceeds is the first step in responsible borrowing. When you apply for a loan, you’ll need to communicate with your lender how you plan to use the funds.

Knowing how you will use the money will also help you choose a lender. Let’s say you’re seeking a line of credit. A lender that only offers short-term or installment loans won’t fit your needs, so you can scratch this lender off the list and keep shopping.

How Much Money Do I Need?

Calculating how much money you need before applying for a loan is just a financially responsible move. You never want to take money just because it’s offered to you.

For most loans, you need to request a specific amount from your lender during the application process. Before filling out an application, calculate how much money you need. For example, if you’re purchasing supplies or equipment, shop around and gather quotes and bids. While you’re making your calculations, also figure out how big of a loan you can afford.

By determining how much money you need, you’ll be able to immediately eliminate multiple lenders. If you need $150,000 but a lender has maximum borrowing limits of $100,000, you can simply move on to the next financing option.

Am I Qualified?

Every lender will review your personal information and documentation to determine if you are qualified to receive a loan. Applying to a lender with requirements that you simply don’t meet is a waste of time … and creates an unnecessary inquiry on your credit report.

For every lender you’re considering, evaluate all requirements. Is your personal credit score high enough? How about revenue? Does the lender have a time in business requirement, and if so, do you meet it? Can you provide all documentation that is required by the lender? Pull your free credit score, evaluate your finances, and search for a lender based on this information.

If you don’t qualify with one lender — or several — don’t worry. There are plenty of other options available for your specific financial situation.

Do The Rates & Terms Meet My Needs?

Taking out a loan that you can’t afford is a recipe for disaster. While the loan may be helpful over the short-term, the long-term effects can be damaging. This is why you need to make sure that the rates and terms best fit your needs.

Compare interest rates and repayment terms to make sure you’re receiving the most affordable loan for your situation. For example, a short-term loan that’s funded quickly may seem like a great option when you need quick cash. However, a loan with a high factor rate, short repayment terms, and weekly payments may quickly become too much for your business to handle. Be smart, be responsible, and shop around before signing on the dotted line.

What You Need To Apply For Contractor Business Loans

The process for applying for a contractor business loan differs based on your chosen loan product and the lender you select. For some loans — such as lines of credit and business credit cards – the application process is quick and easy, and you can be approved minutes after applying. For other financing options – such as SBA loans – the application, underwriting, and approval process may take several weeks or longer.

During the application process, you’ll submit information and documentation to the lender. At the most basic level, you’ll provide basic information including your name, business name, address, telephone number, email address, social security number, and federal tax ID number.

While this may be sufficient for some loans, other loans require more documentation. These requirements include:

  • Personal & Business Credit Reports/Scores
  • Personal & Business Bank Statements
  • Income Statements
  • Profit & Loss Statements
  • Balance Sheets
  • Business Licenses
  • Business Owner Resumes
  • Business Plan

Requirements vary by lender. During the underwriting process, your lender may require additional information. Make sure to make yourself available through email or over the phone to provide additional details and documentation as needed to expedite your loan request.

Final Thoughts

Being a contractor certainly has its advantages and can be a profitable venture. However, running your own business doesn’t come without its challenges — especially when it comes to finances. No matter what scenario you face, knowing your loan options, taking the time to find a lender that meets your needs, and borrowing responsibly can help you clear these financial hurdles.

The post Top Business Financing Options For Contractors appeared first on Merchant Maverick.

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