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You are here: Home / Archives for business loan

How Do I Get a New Business Loan? What it Really Takes

August 29, 2018 By Marco Carbajo

New Business Loan

Are you looking for a new business loan?

If you’re an existing business, looking to acquire an existing business, or buy a franchise; a business term loan may make the most sense to meet your needs. If you’re a stand-alone startup looking for funding you may want to consider a personal loan for business rather than a traditional business loan. new business loan

The fact is it’s extremely difficult to get a business loan from a lender as a stand-alone startup because it presents the most risk for a lender.  Whereas an existing business has an established track record and a franchise has an existing infrastructure and support of a large corporation.

In today’s blog post we are going to go over what it really takes to get a business term loan, who it’s ideal for, what are the requirements, and how to apply. With a business term loan, you get a lump sum loan that is paid back with regular monthly payments at a fixed interest rate over a set period of time. Repayment terms can range from 2 to 25 years depending on the lender. This ultimately gives you more time to repay and have lower monthly payments.

It’s important to realize if you’re applying for a new business loan, you can expect a longer application process (typically 8-12 weeks). You will also be required to furnish many more documents which we’ll cover shortly.
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Filed Under: Business Credit Tagged With: business loan, get a new business loan, how to get a business loan, new business loan

Personal Business Loans: The Big Upside for Your Business

September 8, 2017 By Marco Carbajo

Personal Business Loans

Are you looking for a small business loan?personal business loans

Is getting a personal loan for your business a better alternative?

In today’s post, I’m going to show you why a personal loan for your startup or existing business may be your best option. In a recent Pepperdine University study, only 34% of small businesses received traditional funding through their bank, compared to 75% of larger businesses.

The reality is securing a traditional business loan through a bank can be extremely challenging for startups and small businesses without a proven track record and solid revenues.

The good news is a personal loan could be an excellent way to fund your business.
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Filed Under: Business Credit Tagged With: business loan, business loans, personal business loan, personal business loans

10 Uses of a Small Business Express Loan and How to Qualify

May 12, 2016 By Marco Carbajo

Small Business Express Loan

Is a business loan right for you?

Like a mortgage or personal loan, a small business express loan comes with a fixed interest rate and monthly payment. Business loans are so common that you’re probably familiar with how it works, but nevertheless, it makes sense to go over the uses and how to qualify. small business express loan

First, it’s important to understand that a business loan is a traditional source of funding and requires extensive documentation. With a Small Business Express Loan the rates start as low as 6% with terms ranging from 1-10 years.

Remember, a key factor in getting the lowest rate with this type of funding program is the amount of time that you need to obtain the loan. If your timeline allows for 45 days or more the better compared to a deadline of just three weeks.
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Filed Under: Business Credit Tagged With: business loan, small business express loan, small business loan

Business Loan vs Line of Credit: What You Need to Know

February 4, 2016 By Marco Carbajo

Business Loan vs Line of Credit

Why type of credit is right for your business?

Determining whether to choose a business loan or line of credit should be based on how much funding you need, when you need it, how long you need it and when you can pay it back. business loan vs line of credit

The main difference between a loan and a line of credit is a loan is a lump sum of money issued at one time allowing you to make a specific purchase; a line of credit is like having cash on tap up to the credit limit issued whenever you need it.

Before you decide which funding vehicle to pursue, let’s review both options so you can gain greater insight between the two as well as the pros and cons of each.
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Filed Under: Business Credit Tagged With: business loan, business loan vs line of credit, line of credit

Are Bad Credit Business Loans Worth It?

November 5, 2009 By Marco Carbajo

Bad Credit Business Loan picTimes are tough for small business owners who have seen their good credit fall to the wayside from using their personal credit cards to finance purchases, equipment, and even payments to suppliers or vendors to keep their businesses going during these tough economic times.

 

While bad credit business loans are a viable option they do come with a price that most are not willing to pay. It can also be a difficult task but it is definitely possible despite the current economic times.  

 

Before you decide this is an option you’re willing to pursue I encourage you to do your homework and don’t jump into anything without carefully weighing all your options on the table.

 

Below I have listed several ways to obtain a business loan if you have bad credit but be prepared to pay higher fees and higher interest rates with some of them.

 

Sub-prime lenders

While there is sub-prime lending programs designed for business owners with bad credit, these specific programs charge anywhere from 12% to 18% interest, and even higher. This is not an option I would recommend because you end up weakening your finances in the long term.

 

Transfer of Ownership

One of the ways you can solve a bad credit problem is through a transfer of ownership. In many cases two partners in a corporation own 50% each and one partner may have excellent credit while the other may have bad credit. In these cases both will have to be included in the credit check for a business loan with the bank and the one partner with bad credit will ruin the chances of obtaining a loan for the business.
If this is the case than an option would be to transfer 100% of the business to the partner with the strong personal credit profile. The transfer of ownership is done privately and is simple to complete and can easily be filed in your corporate record keeping book. Make sure you consult with your CPA and attorney if this is something you would like to do. Remember, the ownership can be transferred right back once you have finished applying for a business loan with your bank.

 

Secured Business Loan

A sure way to obtain a loan with bad credit is to post sufficient collateral. This type of loan is known as a secured business loan and is typically asset-based, which means hard assets are used like equipment, commercial real estate, receivables and in some cases inventory.

 

Co-Signer

This happens to be a very common solution for bad credit business loans. A creditworthy co-signer will act as a guarantor for the business loan and they can be a business or trading partner, or investor, or subsidiary company with a strong credit score.

 

As you can see a business loan with bad personal credit is possible even during these challenging times. As you work on repairing your personal credit these options can be a temporary solution for your business to obtain the funding it needs. While bad credit business loans are costly you have to ultimately decide if it’s a price your willing to pay.

 

To Your Success!

Marco Carbajo

About the Author

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Marco Carbajo is a business credit specialist, author, speaker, and founder of http://www.startbusinesscredit.com . Want to learn more about how to build business credit and obtain unlimited financing for your business? Claim Marco’s popular FREE business credit seminar ($597 Value), available by simply submitting your email below=>

Filed Under: Business Credit Tagged With: bad credit business loan, bad credit business loans, business loan, small business loan bad credit

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