A Faster Way to Get Small Business Loans
November 26th, 2009 | 
Author: It is not easy for small businesses to get small business loans. Banks and other lenders require them to go through strict and complicated financial procedures with stringent requirements for qualification. After everything, credit approval is not even guaranteed.
Even the financing for loans supported by the Small Business Administration (SBA) cannot meet the needs of the majority of small businesses. Although the amount of credit available for small businesses has reportedly been increased by 25% since March this year, it is not that easy to avail of the said small business loans.
Small businesses seeking small business loans should know how to prepare the right kind of business plans that banks are looking for. To justify the loan, they should be able to show the banks in detail how they intend to use the money in business and how viable their plan is. Experts say lenders have specific points which they scrutinize applications for and applicants should know these points and tailor their submitted business plans accordingly.
It is also said that loan applicants should first establish a strong relationship with the lending bank in order to increase the possibility of having a loan approved. Banks supposedly give more small business loans to businesses they have already known and trusted long term. Since small businesses are usually new businesses, this is quite difficult to do and it cannot be done in a hurry. How can a new small business with financial needs establish a good long term relationship with a bank in time to meet its current needs?
Another requirement of lending institutions from small businesses applying for small business loans is a good credit history score. A small business should first be deemed credit worthy by the bank before it can even be considered for loan approval. Again, small businesses that are stll young are at an immediate disadvantage here. How can they establish credit worthiness in time?
The US Congress has also placed Congressional restrictions on eligibility for the Small Business Administration loans. Small businesses first have to prove that they are at least two years old and are both struggling and viable at the same time. They should present proof that they have had a positive cash flow in one of those previous two years in business. They should, however, be currently struggling with “immediate financial hardship” with a decrease in income that should not be less than 20 percent. At the same time, they should submit their projections for cash flow for the next two years, proving that they will be able to meet loan payments.
A faster way to get small business loans would be through credit card services.
Any small business should have credit card services. Credit card services enable a company to accept customer payments for goods and services via credit cards or debit cards, whether over the counter in brick and mortar settings, through the phone or online. Credit card services provide the hardware and software for this.
Being able to accept payments through credit cards or debit cards can greatly enhance a small business’ income earning potentials. In addition to that, credit card services can provide the equivalent of small business loans with no need for any collateral. The amount of the small business loans are computed based on the average monthly income of the small business from credit card payments. The small business loans are then amortized through automatic monthly deductions of a certain percentage from the small business’ future credit card revenue. This means small businesses can almost automatically qualify for small business loans through credit card services, and will surely be able to pay such small business loans. Is there a faster way than this?
Watch the video related to small business loans
Senator Grassley answers questions on government expansion and small business loans during his weekly webcast. “Ask Chuck”.
Help answer the question about small business loans
What are good resources for applying for small business loans and grants?I'd like to get loans/grants for starting a small business. Where can I get started? What were some of your personal experiences with this process?
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One great way to improve your FICO score is to get a secured VISA or MasterCard. A secured credit card is one in which you open up a savings account with the card issuing bank. This savings account is used as a security deposit for your credit card. Your credit limit is based on the amount that you deposit into the savings account.
Once you have established a good record of payments on the credit card, the savings account funds are returned to you. Only use this secured credit card for gas or a few small purchases each month. When you get your bill, pay it immediately but overpay it by about $10 – $15. That way you always have a negative balance. The FICO system accelerates your credit rating quickly by doing this. Just make sure that you NEVER are late on making that payment.
This method worked very well for me when I had very bad credit. After receiving my secured credit card, it took about 8 months before I was receiving pre-approved non secured VISA and MasterCard offers from large banks.
More information about this method and other ways to improve your credit ratings can be found on the following website:
http://fixingyourcredit.blogspot.com/
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DO NOT listen to the two guys above me offering you loans. It's a damn scam. Tey will send you an application form and ask you for the processing fee, usually around 100$. And then it's good bye sucker. DO NOT fall for it.
OK, As for your question. I don't think you got a chance.
having said that, many times, what you lack in finances, you can compensate for by hard work. I'm not just telling you some hokey philosophical stuff. I have done it myself.
Cut down on all your expenses, save up money, have a vision, work hard. You'll make it
GOOD LUCK (-;
You'll find one, there's so many. Why not getting a Credit card ?
Good luck !
Obviously the spammers don't care about the question, just getting their link posted out there. You are looking for a franchise type business and about the best suggestion I could make is that you do a search on franchises. I don't think there are many out there that start out less than $20k, but there again, have not looked in a long time.
~jennifer
Scam. The name should have given this away.
First of all contact an attorney or accountant and see about getting incorporated immediately. Laws vary from state to state, but it makes no sense to start a business with your personal assets not being protected, especially if the company fails. See if there is a way to transfer the assets and liabilities you currently have to the business in order to protect your house and your families other belongings. Should you choose to close the company, negotiate the with suppliers, landlord, and people you owe business loans to. See if they can put you on a payment plan that will not negatively impact your credit. Businesses fail all the time, so creditors should be open to working with you. If you choose to "stick it out," incorporate immediately.
Hello I am Mr Welson am in need of a loan and a friend of my introduce me to a loan firm call First Financial Loan Investment thank God I was loaned some DAYS AGO @ 2% rate, with no credit check.if u are in interested you can contact him via email williams7590@yahoo.com , williams7590@gmail.com
Try a bank or a lending company.
You stand a greater chance of getting a government-guaranteed loan through the Small Business Administration http://www.sba.gov/financing than a government grant
It is hard to find grants to start a business. Unlike the myths that some perpetuate, federal government and even private foundations hardly give grant money for a for-profit business. And yes, grants mean PAPERWORK – lots and lots of it, that is why a cottage industry of grant writers was born.
Nonetheless, you can go to the Catalog of Federal Domestic Assistance (CFDA) http://www.cfda.gov and Grants.gov http://www.grants.gov – these are two sites created by the federal government to provide transparency and information on grants. Browse through the listings and see if you can find any grant that would support a for-profit venture.
Even if you buy books on "how to get grants" or list that supposedly has information on grants — all of them are mere rehash of what CFDA has, albeit packaged differently. But still the info is the same – hardly any grants for starting a for profit business.
Even SBA does NOT give out grants. From the SBA website http://www.sba.gov/expanding/grants.html
"The U.S. Small Business Administration does not offer grants to start or expand small businesses, although it does offer a wide variety of loan programs. (See http://www.sba.gov/financing for more information) While SBA does offer some grant programs, these are generally designed to expand and enhance organizations that provide small business management, technical, or financial assistance. These grants generally support non-profit organizations, intermediary lending institutions, and state and local governments."
Here is a listing of federal grants for small businesses. See if there is any available for individuals for starting a business — THERE'S NONE.
http://12.46.245.173/pls/portal30/CATALOG.BROWSE_BENEF_RPT.show
Most of the federal grants are given to specific target groups with specific requirements (e.g. minority business owners involved in transportation related contracts emanating from DOT – Grant#20.905 Disadvantaged Business Enterprises Short Term Lending Program
Grants are also often given to non profit groups or organizations involved in training or other similar activities (grant 59.043 Women's Business Ownership Assistance that are given to those who will create women's business center that will train women entrepreneurs
I suggest you read the following books to get ideas of how to finance your business:
Financing Your Small Business http://www.amazon.com/exec/obidos/ASIN/1572484500/powerhomebizguid
Small Business Financing: How and Where To Get It http://www.amazon.com/exec/obidos/ASIN/0808007386/powerhomebizguid
Financing the Small Business: A Complete Guide to Obtaining Bank Loans and All Other Types of Financing http://www.amazon.com/exec/obidos/ASIN/1580626815/powerhomebizguid
The SBA Loan Book http://www.amazon.com/exec/obidos/ASIN/158062202X/powerhomebizguid
Angel Capital : How to Raise Early-Stage Private Equity Financing http://www.amazon.com/exec/obidos/ASIN/0471690635/powerhomebizguid
Financing Your Small Business (Barron's Business Library Series) http://www.amazon.com/exec/obidos/ASIN/0764124897/powerhomebizguid
For small business loans / personal loans you may try following P2P – Peer to Peer (or Person to Person) sites:
They are simple and many individuals will loan you money at an interest rate you can afford.
To know more visit the link below:
http://en.wikipedia.org/wiki/Person-to-person_lending
Following is the list of Site / Organizations where you can
seek your money need.
1. you can seek money from
http://www.Propsper.com.
2. http://www.virginmoneyus.com/PersonalLoans/tabid/54/Default.aspx
3. http://www.lendingclub.com/
4. http://www.zopa.com/
5. https://www.fygo.com/
6. Coming soon:
http://www.loanio.com/
Please note that you should provide a good, honest and detailed reasoning about Why you need money and how and when will you replay it.
Finally here is a nice article with some reviews.
http://reviews.cnet.com/4520-3000_7-6530959-1.html
Good Luck.
-N
You will no know the interest rate until you get the paperwork in front of you.
Your co-signer will also have to be there, to sign the paperwork.
I had bad credit and found a co-signer for a car with perfect credit, and the rate didn't change much.
As for primary borrower, yes they would get a better rate. Time frame? It would probably take the same amount of time.
The SBA is making loans at 90% of the loan value working with SBA Banks. This is a new provision in the 2009 Stimulus plan.
Do you have equipment to start the business? You may have to start with a door to door campaign to get started with customers before you get money for the business.
If you have some equipment and you can get referrals from friends and family, you can start without the loan.
Call the SBA in your area. Also the state and local governments have loan programs for small business – If you have a computer, go to the local government for assistance.
you could try micro lenders, do you have someone who will co-sign for you?
Any lender will require a business to see if you can pay the loan off. Go to sba.gov, score.org and/or bplan.com where you will find sample business plans and instructions on how to write a business plan.
I suggest that you find someone who can help you understand your problems, be willing to look at your financial records and how you operate your business.
A loan is not a solution, just a stop gap means. If the problems still exist, that loan money will disappear and you will be in the same exact situation as you are now.
Why are you having this problem? Is it because:
- you are in the business with inadequate demand for your products
- are you not marketing to the right customers
- are you not reaching customers
- are your costs structure too high
I strongly suggest you contact your local Small Business Development Center — they can recommend you to sources of local funds or loans that you may be able to get. Better yet, they can help you understand why you are having this problem and how best to resolve this
Contact your local SBDC at http://www.sba.gov/aboutsba/sbaprograms/sbdc/sbdclocator/index.html
Many first year businesses fail for a lot of reasons, but many also survive. I hope your business will be one of those that survives
A true business credit card is a line of credit that is taken in the name of the business, under the business' credit. Activity, whether good or bad, is reflected on your business' credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business.However, some companies out there offer "business" credit cards which they require a person guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts – you are.When applying for a credit card for your business, watch out for areas asking for your SSN (and not your TaxID or EIN) and be wary of any credit card that asks for a personal guarantee. By ensuring that your credit card is in the name of your business, you can help to build your business' credit, while avoiding creating problems with your own.
Many companies offer a list of credit cards that are issued under the business name only. Those lists typically run $300-$900, depending on the quality of the information inquiring. I would suggest starting your search online via google or yahoo. Search for "strong business credit" (just like that in quotes) to find services that sell the information.
Good luck,
Ilya Bodner
Small BusinessOwner
Initial Underwriting Group
if you are looking for the best and fastest loan website, check out this site
http://best-payday-loans-usa.com/
Here you can get the best rates available for you.
I think most employers will consider your friends personal work ethic, experience, and knowledge of the position they are hiring him for, and not judge him because of the company he worked for. Instead of looking at the ethical issues regarding payday lending, your friend should focus on what he will learn and gain from working with this company.
Contact a local bank and ask them about the SBA 504 Program. You will need at least a 10% equity injection (down payment) If you have equity in your personal residence or in the property in Kentucky, you may be able to offer that as additional collateral.
A merchant cash advance gives a great opportunities for small businesses .This is up-to $300,000 but it depends only your small businesses production or monthly cash transactions .More information search from net .
You need a well-rounded credit file which takes time to build.
http://creditboards.com/forums