HOW TO BE READY FOR A BUSINESS LENDER

December 6th at 9:34pm

Planning is the key to getting that business funding you need for starting a business or for business expansion and change. Justin Pritchard, Guide to Banking, says, “Working with banks on small business funding can be easy or difficult — it just depends on how prepared you are.” Preparation and planning are essential to business funding success. If you have an existing business, a funder will look at your current business records carefully to help answer questions about how your business is doing. Include information on: Business Credit, including business credit reports, Dun & Bradstreet information, or other information that…

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MERCHANT CASH ADVANCE FOR SMALL BUSINESS

November 29th at 9:33pm

A merchant cash advance (MCA) was originally structured as a lump sum payment to a business in exchange for an agreed-upon percentage of future credit card and/or debit card sales. … The term “merchant cash advance” may be used to describe purchases of future credit card sales receivables or short-term business funding. When you receive a merchant cash advance, your business gains upfront working capital in exchange for a percentage of future credit card sales. Merchant cash advance companies frequently partner with card processing companies to hold back a percentage of sales revenue. Merchant Cash Advance Costs, Terms, & Qualifications…

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WHAT IS LEVERAGED FINANCE? IS IT APPLICABLE FOR YOUR BUSINESS?

November 22nd at 9:24pm

Debt is a source of funding that can help a business grow more quickly. Leveraged finance is even more powerful, but the higher-than-normal debt level can put a business into a state of leverage that is too high which magnifies exposure to risk. Financial leverage is favorable when the uses to which debt can be put generate returns greater than the interest expense associated with the debt. Many companies use financial leverage rather than acquiring more equity capital, which could reduce the earnings per share of existing shareholders. Using Leverage to Support Business Startup and Growth When a business is…

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SBA FUNDING

November 1st at 9:00pm

The US Small Business Administration 504 Funding or Certified Development Company program is designed to provide financing for the purchase of fixed assets, which usually means real estate, buildings and machinery, at below market rates. The SBA does not make direct funding to small businesses. Rather, the SBA sets the guidelines for funding, which are then made by its partners (lenders, community development organizations, and micro-lending institutions). … SBA funding can be as large as $5 million. Most SBA funding are through banks. The SBA works with lenders to provide funding to small businesses. The agency doesn’t lend money directly to small business owners. Instead, it sets guidelines for funding made by its partnering lenders, community development organizations, and micro-lending institutions.…

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FINANCING FOR RETAIL BUSINESSES

March 8th at 11:30pm

Small retail businesses rely on borrowed capital to purchase inventory, buy fixtures, expand, or bridge seasonal cash flow gaps. Financing retail businesses like restaurants, grocers, and other merchants can be challenging depending on the nature of the particular business. A funding for retail businesses can cover day-to-day and seasonal small business expenses, including: Investing in new technology to increase efficiencies.Creating new marketing materials to address changing trends.Hiring new employees to boost customer experience.Purchasing additional inventory for a busy season. Top six business funding for retail: SBA 7(a) funding. Best for general expenses.SBA 504/CDC funding. Best for commercial real estate.Business lines…

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HOW TO GET A MERCHANT ACCOUNT

February 1st at 10:41pm

A merchant account is an agreement between a merchant and an acquiring bank. This agreement allows the former to process and accept credit card payments. Creating a merchant account is in the merchant’s best interest. Even in the brick-and-mortar retailing, customers do not always have cash on them. So, the owners of such businesses have to open merchant accounts to be able to process and receive credit card payments. And it is even more critical for online businesses that want to process credit card payments. How to create a merchant account Choose credit card brands to work with. This is the…

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HOW TO IMPROVE YOUR CREDIT FOR BUSINESS FUNDING

January 26th at 9:58pm

A strong business credit profile doesn’t just help you secure funding; it’s also important for attracting new business. Unlike with personal credit reports, anyone — including potential customers, partners and suppliers — can look at your business credit report. Those parties look at your report as an employer would an individual’s resume, says Amber Colley, director of sales and partnerships at Dun & Bradstreet, a business credit bureau. WAYS TO IMPROVE YOUR BUSINESS CREDIT SCORE: Keep your information current with all three credit bureausEstablish trade lines with your suppliersMake payments to creditors on time or earlyBorrow from funders that report…

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BEST BUSINESS PRACTICES FOR GOOD CREDIT

January 25th at 10:36pm

Report from Experian When your plan for the future includes getting better acquainted with your credit, you’ve already recognized that your current approach likely needs some work. There’s a way to do it better – but how? Sometimes the first thing you need its a little more information, so you can more clearly see how your actions play a role in your credit. Your credit report is a detailed listing of how you handle your financial responsibilities over time. Creating good credit habits from the beginning can help funders view you as a low-risk borrower, and can be reflected in…

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