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Working with Lenders
Learn the Language of Merchant Cash Advances
For many business owners, merchant cash advance jargon can seem like a foreign language. With a little bit of explanation, however, you can be using the words like a pro and bantering confidently with people in the finance world.
Striking a Balance with Lenders
Small businesses need to be funded with enough capital so that they can fulfill all their needs. Finances should be secured for expansion of an existing business, for purchase of property, and to meet working capital needs. Entrepreneurs should also work on a sound business plan so that their business never fails.
What to Do If You Default on a Business Loan
Defaulting on an existing loan can significantly damage your FICO score and increase interest rates as well. When it comes to a business loan, defaulting doesn’t always mean the end of the business.
Understanding the Value of Business Credit
If you have ever purchased a car, bought a house, or applied for a credit card, the chances are strong that you’ve been asked for your personal credit score or had your personal credit report pulled. The detail contained within your personal credit…
How to Negotiate a Personal Guarantee
Personal Guarantees are a part of doing business. You need a loan, you seek a loan, and the lender requires a guarantor to sign the loan agreement. There are no ways around this. However, there are ways to negotiate a deal so that your personal assets are not entirely at risk of being liquidated given the case that the loan is not repaid on time.
An Overview of Traditional Financing
When you’re looking to raise funds to start or grow your small business, the usual place to start is the bank. Bank financing is a tried and true source of capital for many small businesses. Traditional financing will generally provide the most affordable, if not the easiest, access to the funding your business needs.
An Overview of Alternative Financing
With credit tight and traditional bank loans difficult to obtain, many small business owners are turning to the alternative financing industry to get the funding their business needs. “Alternative” financing can include a wide variety of options, some better suited to certain businesses than others. You should investigate each option to determine which is best for your business.
The “Forbidden Industries”
There are certain businesses mainstream lenders do not want to be associated with—and some of those industries would surprise you. Being in one of these “forbidden industries” can add another challenge to finding funding, and make some forms of funding impossible.
Red Flags to Avoid When Searching for Funding
Finding funding for your business is a long, involved process, but there are common “red flags” that underwriters monitor that impact your search. Here are some of the most common red flags underwriters will be looking for.
Improving Your Business Credit Score
Your business’s credit score is based on the same principles as your personal score. But there are scenarios where your credit score may not accurately reflect your business’s financial stability. If you feel that is the case, here are some steps you can take to improve your score.
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