Business Loans for Small Business – Soft Pull and Fast Funding

October 5, 2023 By Marco Carbajo

Business Loans for Small Business

Is your business in need of a loan or line of credit?

In today’s post we’ll discuss business loans for small business owners and how to apply. First, let’s discuss how a business loan or line of credit can benefit your company.

You can use a loan or line of credit for many costs, such as buying new equipment or expanding your business. Two major industries are construction and trucking. Other popular industries are Manufacturing, Healthcare, Restaurants, Retail, Auto Repair, etc.

For construction funds usage, funds can be used for inventory, material cost for new jobs, labor/ employee cost for taking on more jobs, Delayed AR (payouts from old jobs), etc.

In the trucking and transportation industry, funds are generally used for new equipment, fixing current equipment, fuel/lodging expenses and working capital / cash flow.

Business Term Loans Overview

$10k – $2 Million
Up to 5-year terms
No prepayment penalties
Avg gross monthly rev $25k+
FICO® Score 600+ (soft pull)
2 Years+ Time in Business

Click to continue …

Loans for Small Business

May 27, 2010 By Marco Carbajo

Loans for Small Business

If you’re looking for a loan to expand your business, purchase equipment, buy inventory or simply increase working capital than this post will provide some helpful information.

First, before you begin searching for a loan it’s worth the time to fully understand the types of loans for small business that are available to you. Each type has its pros and cons and it really depends on your particular situation.

Here is a breakdown of the most common loan types for small business:

Term Loans

This is a loan that pretty much speaks for itself. You’ll repay the loan over a set term and the interest rate is usually fixed. You can also obtain a short term loan where it’s paid in full at the end of the term (usually 12 months or less) instead of dealing with monthly payments.

Secured Loans

This is one of the easiest ways to qualify for a loan because you are putting up collateral like commercial real estate, receivables or inventory to secure the loan. Your rates are usually lower and you have a greater chance of negotiating as well.

Now I wouldn’t suggest putting up your home or car for collateral because if you are unable to pay off your loan your personal assets that you pledge can be seized.

Unsecured Loans

A complete opposite of the secured loan is the unsecured loan which requires no collateral. Because these loans carry much more risk lenders place greater underwriting guidelines so strong business credit scores and other factors will come into play so be prepared.

Lines of Credit

This is a popular source of capital because of its ability to obtain large sum of cash, what I call cash on demand. Typically, it works like a revolving credit card but the major difference is that it has a much lower interest rate and higher credit limits than a revolving credit card.

You have payment flexibility and some banks provide special features that require monthly interest only payments which keep payments small when you tap into your credit line.

Merchant Cash Advance

By borrowing against future credit card sales you can receive cash rather quickly with this type of loan. It doesn’t matter if you have bad credit or no collateral because the loan is based strictly on credit card transactions and best of all you pay back the loan in small amounts with your credit card sales so no need to track payments or worry about defaulting.

Factoring

Also known as receivables financing you’re basically selling your invoices to another company instead of waiting for your customers to pay you. The factoring company pays you usually 80% of the funds immediately with a small fee taken out. Once the customer pays then you get the remaining funds.

Equipment Financing

Qualifying for this type of financing is easier compared to others because the equipment serves as the collateral. You not only benefit from tax deductible lease payments but you also can get a buy-out option as well.

Keep in mind it’s always tougher to get a loans for small business when you need it the most. So plan ahead and prepare to provide a well written plan to support your request. It helps to have skin in the game so if you have already committed funds of your own for your startup then make sure you provide this information to the lender if it will help close the deal.

While some of these loans don’t require so much due diligence it’s always smart business to know what options are available.

Are you ready to access a step-by-step business credit funding engine? A system that provides you access to premium vendors, business credit cards, funding sources and lenders that report to all the major business credit bureaus. Become a member of my Business Credit Insiders Circle. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

About the Author

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. A corporate credit builder system providing business owners no personal guarantee business credit. He is a weekly columnist for Dun & Bradstreet Small Business Solutions, a business credit blogger for All Business & American Express Small Business and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.

Building Business Credit for Your Small Business

April 15, 2010 By Marco Carbajo

Building Business Credit

If you hope to qualify for financing for your business without having to use your personal credit then building a solid company foundation with positive business credit history is mandatory.

Here is a brief overview of the steps you will take to move you through the process and get your company on the path to obtaining the funding it needs based on its own creditworthiness.

Shelf Corporations

If you think purchasing shelf corporations will open up the credit floodgates for your company think again! These aged corporations provide the perception of years in business which is important in the eyes of lenders and customers. But there is a lot more to building corporate credit then age alone but if you do decide to purchase one make sure it’s reasonably priced and at least two years old with no liabilities attached.

Dun & Bradstreet

Once you have a corporation set up and completed all the necessary corporate conformity guidelines including but not limited to 411 listings, verifications and licenses you will be ready to register with Dun & Bradstreet.

Establish Business Credit

Once your registered you will need to establish business credit by first applying for vendor credit accounts with companies that report on a monthly basis. Once you get approved and start making purchases make sure to pay your invoices on time and monitor your files.

To get listed with Corporate Experian and Equifax Small Business you will need to establish accounts with companies that report to these specific bureaus.

Business Credit Cards

One of the ways you can start establishing business credit is through a secured card. This helps prevent your company from incurring any revolving debt so it’s a good place to start but as you continue building corporate credit you may soon qualify for no personal guarantee business credit cards.

If you must apply for business credit cards that requires your personal guarantee be sure that it reports your payment history to your business credit files and not your personal credit reports.

Small Business Loans

Obtaining small business loans can be difficult but it’s not impossible. It really depends on the level of bank credit that you have established. I would first focus on securing a business line of credit for your company so you can have the funds readily available when needed. This is much more convenient then having to apply for a loan every time your business needs the funds.

Business Credit Information

Finally you should stay plugged in and up to date with the latest news, resources and business credit information so your company can continue to expand its funding capabilities as well as leverage its diversity of credit.

Building business credit is not something you should spend your precious time or resources trying to figure out. It’s simply smart business to utilize a system that can take you through the process. With the right plan and execution of that plan you can expect your company to qualify for business financing without having to put your personal credit and personal assets at risk.

Looking to access a proven step by step business credit building system? A system that provides you access to premium vendors, business credit cards, funding sources and lenders that report to all the major business credit bureaus? Become a member of my Business Credit Insiders Circle. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. A business credit builder membership helping business owners build business credit. He is a weekly columnist for Dun & Bradstreet Small Business Solutions, a business credit blogger for All Business & American Express Small Business and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.

Top 10 Myths about Building Business Credit- Part 1

February 23, 2010 By Marco Carbajo

Building Business Credit Myths

Building business credit is one of the greatest opportunities for small business owners. It provides our business with the ability to obtain financing for unforeseen expenses, operations, expansion costs and investments.

There’s so much going on with building corporate credit that there are several different fields devoted to servicing it, including business credit cards, small business loans, accounts receivable factoring, merchant account cash advance, business lines of credit, equipment financing, secured/unsecured loans and many others.

These types of financing have been around for a long time, so you’d think that by now we would know all there is to know about building small business credit. After years of studying and applying every aspect of it, there are still many facets of business credit that remain secretive. And because building business credit is complex, we tend to simplify information about how it works in order to make it more understandable.

This has resulted in many myths about establishing business credit. Let’s look at the 10 myths that have been circulating about business credit, beginning with, of all things, its starting line.

10: Sole proprietorships can establish business credit

A sole proprietorship is not considered a separate legal structure. Instead, it is considered a personal extension of you so you don’t have any protection from them. So every time you apply for credit for your business you will need to supply your social security number as the number that identifies your business.

As a result you are responsible for all debts and agreements you enter into in the name of your business; you’re also on the hook for all of your partner’s actions in the name of your business as well.

9: Using personal credit for business has no effect on the corporate veil

When you use your personal credit for the benefit or operation of your company it can lead to an “alter-ego” decision by regulatory or a financial organization, and a piercing of the corporate veil. This would directly endanger the owner’s personal assets and make the owner or owners directly liable for the penalties or repayment of any debts incurred by the business or corporation.

8: Obtain unlimited business credit for real estate investing

There are certain industries like real estate investing that are flagged as a high risk with the business credit bureaus. If you plan on investing in real estate then you will want to make sure that the company you are building corporate credit for is not “real estate investing”. Most banks will automatically turn you down because your company is operating in a high risk industry. You still will be able to invest in real estate but you may have to set up a business that does business development, business management, business consulting, marketing & advertising, training and development, etc. and then operate your real estate investing from a separate division of the company.

7: Credit repair is illegal and cannot be done.

False. Consumers have every right to repair their own credit in accordance with the Fair Credit Reporting Act. If you choose to use a credit repair company be sure to verify their track record with the BBB. Also, if you are paying for the service before its rendered be sure the company is in compliance with the Credit Repair Organizations Act (CROA). *Non Profits and Credit Union Service Organizations (CUSO) are exempt from CROA.

Read part 2 of the Top 10 Myths about Business Credit

Business Credit Resources

» Start Business Credit

» Business Credit Builder

» Business Credit Blog

To access business credit insider secrets, premium vendors, leasing companies, business credit cards, and lenders that report to all the major business credit bureaus become a member of my Business Credit Insider’s Circle. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

Marco Carbajo is a business credit specialist, author, speaker, and founder of the Business Credit Insiders Circle. He is a weekly columnist for Dun & Bradstreet Small Business Solutions, a business credit blogger for All Business & American Express Small Business and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.