Tag: Loans

Use This Secret Weapon to Slay Your Funding Foes and Find the Best Sources of Alternative Loans for Businesses

Are you struggling to get funding for your business? Never fear, alternative loans for businesses are here. They tend to get a bad rap. This is mostly due to the fact that predatory lending runs rampant in today’s world, and it’s hard to know who to trust and who is scamming you. However, not all sources of alternative business financing are created equal. 

10 Alternative Loans for Businesses to Help Your Business Soar

Nothing is guaranteed and things change every day. Still, at the moment, these 10 alternative lenders for small business tend to work well for many. They also offer a wide range of alternative business financing options to fit a variety of needs. 

 

Learn business loan secrets and get money for your business.

Fundation

When it comes to alternative loans for businesses, Fundation provides both term business loans and lines of credit. It is most known for its working capital financing options. These are funds meant to help cover the day-to-day costs of running a business rather than larger projects. 

StreetShares

StreetShares has its roots in lending to veterans.  They still hold true to that mission, but now offer term loans, lines of credit, and contract financing to all types of business owners. The maximum loan amount is $250,000, and preapproval only takes a few minutes. They use a soft pull on your credit so it doesn’t affect your score. 

BlueVine

There are two options for small business financing with BlueVine. They include lines of credit and invoice factoring. Minimum loan amount is $5,000 and maximum loan amount is $100,000. Annual revenue must be $120,000 or more and the borrower must be in business at least 6 months. Personal credit score has to be 600 or above.

Fundbox

With Fundbox, you get an online lender that offers a super-fast automated process. Originally, they only had invoice financing. Yet, now they offer a line of credit service as well. Repayments are automatic on a weekly basis.  So,be sure you have enough funds in whatever account you let them draft from to cover your payment each week. 

Kiva 

Kiva is an online lender that is a little different. For example, the interest rate is 0%.  That means even though you have to pay it back, it is absolutely free money. They don’t even check your credit. There is one catch though. You have to get at least 5 family members or friends to throw some money in the pot as well. In addition, you have to pitch in a $25 loan to another business on the platform. 

 

Learn business loan secrets and get money for your business.

Fora Financial

Fora Financial was founded in 2008 by college roommates. It now funds more than $1.3 million in working capital around the United States. There is no minimum credit score, and there is an early repayment discount if you qualify. 

OnDeck

Obtaining financing from OnDeck is quick and easy. First, you apply online.  If you receive approval, your loan funds will go directly to your bank account. 

Lendio

The secret to Lendio’s success is excellent customer service and a short, easy application process. The loan-connections service it offers slashes the time it takes to find the right alternative loans for businesses. This is due to its heavily vetted network of lenders. 

Credibly

Credibly is a specialized lender offering unsecured business loans online. The application process and funding can be complete in as little as two days, sometimes less. They offer daily and weekly repayment options. 

Upstart

Upstart uses a completely innovative platform for loans.  They choose to use a combination of artificial intelligence (AI) and machine learning to gather alternative data for use in making credit decisions.

This may include such things as mobile phone bills, rent, deposits, withdrawals, and even other information less directly tied to finances.  The software they use learns and improves on its own. You can use their online quote tool to play with different amounts and terms to see the various interest rate possibilities.  

 

Learn business loan secrets and get money for your business.

Warning: Alternative Loans for Businesses Aren’t for Everyone 

Despite the fact that these alternative lending companies tend to offer alternative loans for businesses with less stringent requirements, they won’t work for everyone. Alternative financing methods are just not always a good fit.  Here is another other option.  Keep reading to the end for a sure-fire way to ensure you can always qualify for the business funding you need when you need it. 

The Credit Line Hybrid

What if there were alternative financing options that allowed you to have an even better interest rate than a secured loan, and yet get the money faster and easier than any type of traditional funding.  What if you could get business funding without having to supply bank statements or check stubs? This is exactly what the Credit Line Hybrid offers. 

This is alternative funding for small business that allows you to  fund your business without putting up collateral.  You only pay back what you use. You do need good personal credit however.  That is, your personal credit score should be at least 680.  In addition, you can’t have any liens, judgments, bankruptcies or late payments.  Furthermore, in the past 6 months, you should have less than 6 credit inquiries.  Also, you should have less than a 45% balance on all business and personal credit cards. In addition, you need at least 2 credit cards with at least 2 years credit history. 

If you don’t meet all those requirements, you can still qualify.  You can take on a credit partner that meets each of these requirements.  Many business owners work with a friend or relative to fund their business.  If a relative or a friend meets all of these requirements, they can partner with you to allow you to tap into their credit to access funding. 

Use This Secret Weapon and Always Get the Business Funding You Need

To be eligible for the highest limits and best rates when it comes to business credit, your business has to be fundable. There are over 100 factors that impact the fundability of a business. It is a complicated web to weave through. Things from decades ago, long before you ever imagined owning a business, can affect fundability. 

The key to having a strong, fundable business that can qualify for any funding is to work with a business credit expert. What can a business credit expert do for you?

  • Help you assess the current fundability of your business
  • Guide you to the most effective and efficient ways to improve fundability if necessary
  • Help you find the best funding options for your business right now
  • Guide you in what specific, actionable steps you need to take to qualify for more funding with better rates
  • Leverage lender relationships to cut through a lot of the red tape and bureaucracy that can keep borrowers from getting the information they need, when they need it

It’s common for a borrower to call a lender or vendor credit department directly and not be able to find out if they report to the business credit reporting agencies, or exactly what they are looking for when it comes to credit approval.  

A business credit expert already knows a lot of this information, and what they don’t know, they  know how to get. They also know their way around alternative sources of financing for business, so they can offer guidance in this area as well. 

This is your number one top-secret weapon to getting your business to a point where you know you can get funding when you need it. Try a free consultation with a Credit Suite business credit expert to get started now.

The post Use This Secret Weapon to Slay Your Funding Foes and Find the Best Sources of Alternative Loans for Businesses appeared first on Credit Suite.

Use This Secret Weapon to Slay Your Funding Foes and Find the Best Sources of Alternative Loans for Businesses

Are you struggling to get funding for your business? Never fear, alternative loans for businesses are here. They tend to get a bad rap. This is mostly due to the fact that predatory lending runs rampant in today’s world, and it’s hard to know who to trust and who is scamming you. However, not all … Continue reading Use This Secret Weapon to Slay Your Funding Foes and Find the Best Sources of Alternative Loans for Businesses

Financial Debt Help – Debt Consolidation Loans Versus Credit Counseling

Financial Debt Help – Debt Consolidation Loans Versus Credit Counseling

Financial debt loan consolidation financings are a diy procedure, whereas debt therapy aids you to make economic choices. You most likely do not require the solutions of a credit scores therapist if you currently have a monetary strategy. If you have concerns or require assistance with a budget plan, a credit score therapist can supply useful assistance.

What Debt Consolidation Loans Can Do For You

Financial obligation combination fundings can decrease the rate of interest you are paying on unsafe financial debt, like charge card, as well as reduced your month-to-month repayments. You can pick to make use of an equity financing with its tax obligation insurance deductible rate of interest or an individual funding. Lots of loan providers supply affordable prices, which you can locate by investigating firms on the internet.

A financing provides you extra control over rate of interest as well as settlement timetables than with various other choices. Not just can you obtain reduced prices, yet you can choose to take longer than 5 years to repay your principal. By taking much longer, your settlements are reduced, offering you economic breathing space.

A financial debt loan consolidation funding ought to be component of a bigger monetary strategy that consists of spending plan preparation and also lengthy term monetary objectives. You might discover on your own in much deeper economic problem by taking out a lending if you do not have these points in location.

What Credit Counseling Can Do For You

In a non-judgmental environment, a credit score therapist can assist you specify your monetary objectives as well as story a program to obtain there. They might recommend a financial debt combination lending, financial obligation combination program, or various other monetary choices.

Credit scores therapists know with all sorts of economic programs, so they might aim you to unfamiliar resources for assistance. They might likewise assist you recognize instant cost savings by assisting you to decrease expenditures or reduced rates of interest on several of your costs.

Debt therapy is actually a financial investment in your monetary future. You obtain a fast refresher course on your funds with functional solutions. By obtaining skilled assistance, you can conserve your credit rating, conserving you thousands.

Financial obligation debt consolidation car loans are a diy procedure, whereas credit score therapy aids you to make monetary choices. If you have concerns or require assistance with a budget plan, a credit rating therapist can use useful assistance.

Financial obligation loan consolidation financings can lower the rate of interest price you are paying on unprotected financial debt, like credit report cards, as well as reduced your month-to-month settlements. They might recommend a financial debt loan consolidation financing, financial debt combination program, or various other monetary choices.

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Accounts Receivable Loans

Get to Know Accounts Receivable Loans

Are you looking for accounts receivable loans? Even though accounts receivable loans is based on receivables – more on that later – it still pays to look at fundability. Plus we are covering similar alternatives today.

This way in case it turns out that accounts receivable loans is off the table for you and your business, you would still be covered.

Fundability

Fundability is the ability of a business to get funding. It essentially covers all the points a lender or credit provider will be looking at when they’re trying to figure out if you’ll pay back a loan or credit extended to you. These include factors you probably haven’t thought about or might think aren’t so important. But they are!

Your Business name

Does your business include the name of a high risk industry? Did you know it could be preventing you from getting funding? It doesn’t have to be this way. You don’t have to include the name of your industry in your business name. There’s nothing deceptive or illegal or otherwise wrong about calling a business Chico’s rather than Chico’s Bail Bonds.

Note: if you change your business name, be sure to change it everywhere. This means you change it in these places, among others: incorporation documents, licenses, and your records with the business CRAs (D&B, Experian, and Equifax)

It’s best to copy/paste this information. Do not chance making an error by typing it by hand. This is because differences will be interpreted as fraud by lenders and credit providers. Keep records of where your business name is, so, you can be sure you’ve caught everything.

NAICS code

You choose your business’s NAICS code. NAICS industry codes define businesses based on the activities they primarily do. The NAICS puts out a list of high-risk and high-cash industries. Higher risk industries include casinos, pawn shops, and liquor stores. If more than one code would apply, there is nothing deceptive, illegal, or wrong with using a less risky one.

The IRS, lenders, banks, insurance companies, and business CRAs use NAICS codes. They are trying to determine if your business is in a high-risk industry classification. So, you could get a denial for a loan or a business credit card based on your business classification. Some codes can trigger automatic turn-downs, higher premiums, and reduced credit limits for your business. See naics.com/search.

Demolish your funding problems with 27 killer ways to get cash for your business.

Business Entity type

To get financing or credit for your business you must have a business entity. A corporation or LLC gives you more credibility in many cases. It also helps you reduce your liability. And it separates you from your business. It makes the business a separate legal entity. Make sure your entity is set up in the same state as your business address.

Your EIN

Your business must have a Federal Tax ID number (EIN). Just like you have a Social Security Number, your business has an EIN. Your Tax ID number is used to open a bank account and to build a business credit profile. Take the time to verify all agencies, banks, and trade credit vendors have your business listed with the same Tax ID number.

Your Business Address

Your business address has to be a real brick and mortar building. It must be a deliverable physical address. For a retail establishment like a toy store, this should not be a residential address or a PO Box. Don’t use UPS mailing addresses. Some lenders will not approve and fund unless this criterion is met.

Your Business Phone Number

A cell or residence phone number as your main business line could get you flagged as un-established – but VOIP is okay. It’s better to not give a personal cell phone or residential phone as the business phone number. Your phone number must be listed with 411 for most credit issuers and lenders to approve you. Check your record to see if you’re listed and make sure your information is accurate. No record? Then use ListYourself.net to get a listing. Business phone number should be toll-free (800 exchange or comparable).

Your Business Licensing

Make sure you have the proper licensing for your corporation. And make sure the address on your licenses is the same as all other documents. Contact State, County, and City Government offices, and see if there are any necessary licenses and permits to operate your type of business. Being licensed also builds credibility in your business, which can help you get more customers.

Your Business Website and Email

You need a company email address for your business. Email must be on the same domain as your website. This usually comes with a website domain provider such as GoDaddy or Host Gator. It is not just professional; it also greatly helps your chances of getting approval from a credit provider. Do not use Yahoo, AOL, Gmail, Hotmail, or similar kinds of email.

Demolish your funding problems with 27 killer ways to get cash for your business.

Accounts Receivable Loans

You can use outstanding account receivables as collateral for financing. Receivables should be with the government or another business. If you also have purchase orders,  you can get financing to have those filled. You won’t need to use your cash flow to do so. Get an accounts receivable credit line with rates of less than 1% with no consumer credit requirement. Receivables should be with the government or another business.

Accounts Receivable Loans: Terms and Qualifying

Use your outstanding account receivables for financing. Get as much as 80% of receivables advanced ongoing in less than 24 hours. Remainder of the accounts receivable are released once the invoice is paid in full. Factor rates as low as 1.33%. you can get an accounts receivable credit line with rates of less than 1% with no consumer credit requirement.

Consider Cash Flow Financing as Well

This is a company loan backed by a company’s expected cash flows. A company’s cash flow is the amount of cash that flows in and out of a business, in a specific period. Cash flow financing (or a cash flow loan) uses generated cash flow as a means to pay back the loan.

Cash Flow Financing: Terms and Qualifying

Often you will need to have a few years in business. You may need to meet a certain minimum credit score requirement. You will need to prove historical cash flow, and present your accounts receivables and accounts payables, so the lender can determine how much to loan to your business.

For an Alternative to Accounts Receivable Loans, Try Our Credit Line Hybrid

A credit line hybrid is a form of unsecured funding. Our credit line hybrid has an even better interest rate than a secured loan. Get some of the highest loan amounts and credit lines for businesses. Get 0% business credit cards with stated income. These report to business CRAs. You can build business credit at the same time. This will get you access to even more cash with no personal guarantee.

Credit Line Hybrid: Terms and Qualifying

You need a good credit score or a guarantor with good credit to get an approval (a FICO score of at least 680). You will not need to present any financials. And you can often get a loan of five times the amount of current highest revolving credit limit account. This is up to $150,000.

For a Similar Kind of Funding, Try Purchase Order Financing

This is advanced to a business with a large purchase order or contract but cannot fulfill it. Lender then loans the funds necessary to complete the order and charges a percentage for the service. Then the company can fulfill its order or contract. The difference between purchase order and accounts receivable loans is:

  • Purchase order financing involves a company lending you money to fulfill purchase orders
  • Accounts receivable loans involves a company lending you money based on buying your outstanding invoices

Purchase Order Financing: Terms and Qualifying

Terms are for Credit Suite purchase order financing. For approval, lenders will typically review your outstanding purchase orders that need to be filled. If the purchase orders are valid and the suppliers you are dealing with are credible, you can get approval regardless of personal credit history. Rates typically range from 1-4%. In some instances, you can get 95% of your purchase order financed.

Demolish your funding problems with 27 killer ways to get cash for your business.

SBA Seasonal Line

Advances against anticipated inventory and accounts receivables, or in some cases associated increased labor costs. The idea behind it is to help seasonal businesses. It can be revolving or non-revolving.

SBA Seasonal Line: Terms and Qualifying

Get loans to $5 million. Qualification requirements are the same as with other SBA programs. The maximum maturity on this CAPLine loan is 10 years. Holders of at least 20% ownership in the applicant business must guarantee the loan.

So How Do You Choose?

This is an enormous buffet of business funding choices! But how do you select the one(s) that’s best for your particular situation? This is where our Advisory Team comes in extremely handy. Or help yourself with our Business Credit Builder. It’s your choice. But it all starts with business credit.

Accounts Receivable Loans: Takeaways

There are all sorts of amazing ways to get business funding. Accounts receivable loans and similar funding types are just the tip of the iceberg. You can find the best financing which fits your circumstances, including your strengths in areas like:

  • Personal credit
  • Collateral or
  • Cash flow

The post Accounts Receivable Loans appeared first on Credit Suite.

What are the Different Types of Business Loans and How Can You Tell What’s Best for You?

What are All the Different Types of Business Loans?

There are several different types of business loans out there.

All Businesses Need Funding

It’s that simple. You would be hard-pressed to find a business owner that doesn’t know that. What many do NOT know is that there are many more types of small business loans out there than the traditional banks loans everyone knows about.

Choosing Among the Many Different Types of Business Loans Means Knowing What’s Right for You

Knowing the different types of small business loans is only half the battle. You have to know how to figure out which one is right for you. The answer to that will vary based on a number of factors, and it may even change over the course of your business.

But the right type of loan for your business now may not be the right type for your business later. The best way to start figuring out which loan is right for your business is to figure out what’s available. Did you know that traditional bank loans are not the only option?

Types of Small Business Loans

There are many more, including:

  • SBA loans
  • 401(k) financing
  • Merchant Cash Advances
  • Equipment Financing
  • The Credit Line Hybrid
  • Traditional Lines of Credit

Let’s dive in to each one and figure out which one is best for your business right now

Different Types of Business Loans: SBA Loans

Guaranteed by the federal government. Issued by participating lenders, usually banks. They offer a lot of the perks of traditional loans, such as lower interest rates and favorable terms. Due to government guarantee, lenders are able to offer them to those with a lower credit score than would typically be required.

Eligibility for SBA Loans

Lenders and loan programs have unique eligibility requirements. In general, eligibility is based on what a business does to receive its income, the character of its ownership, and where the business operates. Hence even those with bad credit may qualify for startup funding.

Normally, businesses must meet size standards, be able to repay, and have a sound business purpose. The lender will provide you with a full list of eligibility requirements for your loan. See www.sba.gov/document/support–table-size-standards.

More About Eligibility for SBA Loans

General eligibility also includes:

  • Being a for-profit business – the business must be officially registered and operating legally
  • Doing business in the US – the business must be physically located and operating in the US or its territories
  • Having vested equity – the owner must have invested their own time or money in the business
  • Exhausting other funding options – the business must not be able to get funds from any other financial lender

Ideal credit scores for an SBA loan are 680 or above. There are a number of SBA loan programs, each one designed to work for different needs and situations. Some of the most common SBA loan programs include:

  • 7(a) loans
  • 504 loans
  • Microloans
  • Disaster loans
  • Express loans

These are just a few the of the options available. Find out more at SBA.gov.

Demolish your funding problems with 27 killer ways to get cash for your business.

Which SBA Loan is Best?

The thing about SBA loans is that they each have a specific purpose. For example, if your business has suffered due to a natural disaster, you need a disaster loan. If you need $50,000 or less, a microloan may be the best option. But the 7(a) loan program is the most versatile.

SBA 7 (a) Loan Program Details

A standard 7(a) loan can be for up to $5 million. The maximum SBA guarantee is 85% for loans up to $150,000 and 75% for loans greater than $150,000. The interest rate varies but cannot exceed the SBA maximum. The turnaround is 5 – 10 business days. These funds can be used for a number of things, and the minimum credit score is 640. But of course the higher the better.

Who Do SBA Loans Work Best For?

These loans work well for those that are not in a hurry to get funding

The approval and funding process can take a while, especially with the government red tape required for the government guarantee. If you can wait, meet all the requirements, and want a more traditional type of loan, SBA loans are an option.

Demolish your funding problems with 27 killer ways to get cash for your business.

Different Types of Business Loans: 401(k) Financing

If you have an eligible 401(k), you can use those funds to get money for your business. You must not be currently contributing. You must not longer be working for the company that the 401(k) is under. And you must have a balance of at least $35,000.

You can even still earn interest on your account, and there are no tax penalties. Personal credit doesn’t really matter much. Interest rates are usually low.

401(k) Financing Details

In fact, they are  often less than 5%. Close and fund in less than 3 weeks. Can usually get up to 100% of what’s “rollable” within your 401(k). This type of loan works well for anyone that has an eligible 401(k) account.

Different Types of Business Loans: Merchant Cash Advances

Businesses that accept credit cards as a form of payment may qualify for a merchant cash advance. This means your business must have a merchant account in order to be able to accept credit card payments. Your business must bring in $100,000 or more per year in credit card sales. Typical approval is equal to one month’s credit processing volume. The minimum credit score is 500.

Qualifying for a Merchant Cash Advance

They do not ask for a lot of documents. This is not like what most conventional lenders will want. You won’t need financials, business plans, or resumes. You don’t even need collateral.

Your business’s credit card receipts and business bank statements tell lenders all they need to know. These loans work well for businesses that qualify and need funds fast, and those with credit that is less than perfect. It’s a great way to get money for  your business fast with few requirements.

Different Types of Business Loans: Equipment Financing

Businesses looking to buy or lease equipment can use equipment financing. Rates vary widely depending on risk factors. Usually can get approval with a 650 or better credit score. This is for major equipment only, not a combination of a lot of small equipment. These loans work well for those that have good credit and just need to financing equipment. The equipment is the collateral, so that helps out some with rates.

Credit Line Hybrid

It can provide some of the highest loan amounts and credit lines for startups. You can get 0% business credit cards with stated income. There are no financials required. These report to business CRAs; you can build business credit at the same time. This will get you access to even more money without a personal guarantee.

Credit Line Hybrid Details

You can usually get a loan of five times the amount of current highest revolving credit limit account. This is up to $150,000. Easily five times what you could get on your own when applying for cards. You can get cash out on this program as well.

Credit Line Hybrid Benefits

There will be no impact on your personal credit with this type of financing. You need a 680 credit score or a guarantor with good credit to get an approval. In addition, this type of financing report to the business credit reporting agencies. This means you can build stronger business credit while funding your business.

Who Does the Credit Line Hybrid Work Best For?

This is a good option for virtually everyone. Because even if you have bad credit, you can get funding by using a credit partner. Works especially well for those who need to build business credit.  See www.creditsuite.com/business-loans.

Demolish your funding problems with 27 killer ways to get cash for your business.

Different Types of Business Loans: A Traditional Line of Credit

This is similar to a traditional term loan in terms of where you get it, and approval requirements. However, it is revolving financing more like a credit card. Typically have better interest rates that credit cards. They work well for those who qualify for traditional term loans but want revolving credit rather than a term loan.

Which Types of Small Business Loans are Best for Your Business?

If you know what types of business loans are available to your business, you can make a more educated decision about which types of business loans will work best for you. Knowing what’s out there is only half the battle. You also have to understand your own eligibility and funding needs.

The Different Types of Business Loans: Takeaways

All businesses need funding. Traditional term loans are not the only option. Other options exist to help you money faster. Or funding despite bad credit. And you can better rates and terms than you would get with a traditional term loan.

The post What are the Different Types of Business Loans and How Can You Tell What’s Best for You? appeared first on Credit Suite.

Small Business Inventory Loans

What are Small Business Inventory Loans? 

You may have heard the term small business inventory loans. But do you really know what it is all about? We break it all down for you right here. This form of funding just might be perfect for your business. It’s also called inventory financing.

According to a definition from Investopedia – “Inventory financing is a revolving line of credit or a short-term loan that is acquired by a company so it can purchase products for sale later. The products serve as the collateral for the loan.” See investopedia.com/terms/i/inventory-financing.asp.

You can get a low rate credit line. And all you need to do is use your current inventory as collateral. Inventory is valuable! It is perfect for collateral for small business inventory loans.

Check out these Credit Line Details

Keep in mind that your inventory must be worth $500,000 or higher. You can get approval for a line with low rates, regardless of your personal credit quality.

You can get approval for a line of credit for 50% of inventory value. Rates are usually 5 – 15% depending on type of inventory. And you can get funding within 3 weeks or less. It can’t be lumped together inventory, like office equipment.

With inventory financing, there may be restrictions on the type of inventory you can use. This can include not allowing cannabis, alcohol, firearms, etc., or perishable goods. And there can be revenue requirements. There may also be minimum FICO score requirements.

Let’s look at Qualifying for Small Business Inventory Loans

You will not need financials, or good personal credit. Your business must have existing inventory now that is valued over $500,000. Lender will also check the quality of your inventory management system.

The inventory might be of supplies, retail merchandise. materials used to produce your product, or other non-obsolete inventory. The lender will review your existing inventory. If you have inventory that qualifies you can get approval quickly with just a review of your inventory records.

You Can Get Fast Funding with Inventory Financing

After the lenders review your inventory summaries, you can get your initial approval and funding in 3 weeks or less. And you can get a working capital credit line to use for whatever purposes you need.

But What if You Have Credit Issues? 

This program is perfect for business owners with credit issues. Lenders are not looking for, nor do they require good credit to qualify. You can even get approval for a credit line with low rates, even with severely challenged personal credit and low credit scores.

You can get approval regardless of personal credit quality. So this is even if you have recent derogatory items and major collections on your credit report. This is one of the best and easiest business financing programs in existence that you can qualify for. And you can get really good terms even with severe personal credit problems.

Demolish your funding problems with 27 killer ways to get cash for your business.

What are the Benefits of Inventory Financing?

Get 24 hour preapproval and get secure financing of 50% of your inventory value. It is just an easy inventory review for approval. And you will pay no application fees.

You can get approval even with poor credit. Go from application to funding in 3 weeks or less. You can get approval with no revenue requirements. This is low rate financing. Enjoy credit line amounts range up to $500,000.

What are the Approval Amounts? 

You can get up to $500,000, and bad credit is accepted. Your inventory serves as your collateral. No financials are necessary.

Let’s Look at Qualifying for Inventory Financing from Credit Suite

You will need over $300,000 in inventory. So, this means no jewelry, apparel, highly seasonal items, or high tech items subject to rapid obsolescence.

What do the Approval Amounts Depend on? 

You can get approval for $150,000 or more. The approval amount is based on the actual value of the inventory. You can get approval for financing up to 50%.

What are the Interest Rates? 

Interest is very low. It is typically as low as 2% monthly. And you can get approval in 3 weeks or less.

What if Small Business Inventory Loans are Impossible to Get Now? 

There are other ways to get financing for your business. Your business – and you – have assets beyond inventory. And you can tap these assets as collateral. You can use a 401(k) or IRA, accounts receivable, or stocks or bonds. Did you know that the 401(k), stocks, or bonds do not even have to be yours? You can work with a partner with these kinds of assets.

Check out Securities-Based Financing

So you can use existing stocks as leverage to get business financing. Borrow as much as 90% of their value. You continue to earn interest on the stocks pledged as collateral. And closing and funding takes less than 3 weeks.

Take a Look at 401(k) Financing

You can use your existing 401(k) or IRA as collateral for business financing. This program uses IRS proven strategies, called ROBS. And you will pay no tax penalties.

You still earn interest on your 401(k). Pay low rates, often less than 5%. And you can close and fund in less than 3 weeks. You can usually get up to 100% of what is “rollable” within your 401(k).

Note: your 401(k) has to be with a company that is no longer employing you.

Demolish your funding problems with 27 killer ways to get cash for your business.

What about Accounts Receivable Financing? 

You can use your outstanding account receivables for financing. In this instance, you can get as much as 80% of receivables advanced ongoing in less than 24 hours. The remainder of the accounts receivable are released as soon as the invoice is paid in full. And closing takes 2 weeks or less. Pay factor rates as low as 1.33%. These are accounts receivable credit line with rates of less than 1% with no consumer credit requirement.

The receivables should be with the government or another business. If you also have purchase orders, you can get financing to have those filled. And you will not need to use your cash flow in order to do so.

Check Out what OnDeck has to Offer

OnDeck offers inventory loans and business lines of credit. Term loans run $5,000 to $250,000, with 12-month terms, paid back daily or weekly.

Their lines of credit run from $6,000 to $100,000. Pay back over 12 months, with automatic weekly payments. Find them online at ondeck.com/loantype-inventory-loans.

Or how about an Amazon Corporate Credit Line? 

Do you have an online business? Then you can get a revolving credit line from Amazon. Make minimum payments or pay in full monthly. Pay 12.99% purchase APR (minimum interest charge is $1). You get an option to apply as a personal guarantor to build business credit. And you will enjoy 24/7 Customer Service.

Consider Amazon Lines of Credit and Working Capital Loans

If your business is eligible, you will see funding options when you log into Seller Central. Currently, lines of credit are offered by Marcus by Goldman Sachs. Loans come from Amazon Lending – specific terms are tailored to the business. Get access to loan funds within 5 days. Learn more at sell.amazon.com/programs/amazon-lending.html.

Demolish your funding problems with 27 killer ways to get cash for your business.

Small Business Inventory Loans: Takeaways

Your inventory is a valuable business asset. You can leverage it to get business funding. Get approval with excellent terms, even if your personal credit is not so hot. And consider alternatives like 401(k) financing or OnDeck and more if you can’t get small business inventory loans right now.

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Comparing Types of Small Business Loans

Businesses need funding. It’s that simple. You would be hard pressed to find a business owner that doesn’t know that. However, what many do not know, is that there are more options than just traditional bank loans. In fact, here are 6 different types of small business loans, and that is just the tip of the iceberg. 

7 Types of Small Business Loans and Which One Is Right for You

Knowing the different types of small business loans is only half the battle.  Then, you have to figure out which one is right for your business.  The answer will depend on a number of things. Sometimes, you may not even get a choice. You may have to take what you can qualify for.  Still, knowing your options is the first step. Then, you can work on putting your business in a position to qualify for what will work best if you aren’t there yet. 

What Types of Small Business Loans are Most Common? 

  1. Types of SBA Loans

There are several types of SBA loans.  These are small-business loans guaranteed by the Small Business Administration and issued by participating lenders, mostly banks. They can guarantee up to 85% of loans of $150,000 or less, and loans that are more than $150,000 they will guarantee up to 75%. The maximum loan amount they offer is $5 million. 

Due to the fact that these are SBA loans, meaning that they have a government guarantee, financial institutions are able to offer them at lower interest rates.

types of small business loans Credit Suite

Credit Line Hybrid Financing:  Get up to $150,000 in financing so your business can thrive.

What are the SBA Loan Options? 

Again, there are many types of SBA loans for various kinds of businesses and needs. Here are just a few. 

7(a) Loans 

This is the Small Business Administration’s flagship loan program. It offers federally funded term loans up to $5 million. The funds can be used for expansion, purchasing equipment, working capital and more. Banks, credit unions, and other specialized institutions, in partnership with the SBA, process these loans and disburse the funds.

504 Loans

These loans are also available up to $5 million and can buy machinery, facilities, or land. They are generally used for expansion.  Private sector lenders or nonprofits process disburse the funds.  Specifically, they work well for commercial real estate purchases.

Microloans 

Microloans are available in amounts up to $50,000. They work for starting a business, purchasing equipment, buying inventory, or for working capital. Contrary to most other SBA loan programs, financing comes directly from the Small Business Administration, with community based non-profits acting as intermediaries.

SBA disaster loans

Available in amounts up to $2 million, these funds are processed directly through the SBA as well. They are available to small-business owners that have been affected by natural disasters.

SBA Express loans

The turnaround for express loans is much faster, with the SBA taking up to 36 hours to give a decision. Necessary paperwork for application is less also, making express loans a great option for working capital, among other things, if you qualify. 

What Are the Best Government Small Business Loans? 

The 7(a) program is by far the most versatile. The funds can be used for a number of business needs. If you qualify, they are a great option. Credit Suite can help you get funding through this program. 

  1. Types of Small Business Loans: 401(k) Financing

Your existing 401(k) or IRA can help fund your business as well. The funds work as collateral for business financing. This program uses IRS proven strategies. Furthermore, you will pay no tax penalties, and you still earn interest on your 401(k). Rates are low, and this option usually has a quick closing and funding process as well. 

  1. Types of Small Business Loans: Merchant Cash Advances

If you accept credit cards as payment, you may qualify for a merchant cash advance.  The minimum credit score is 500.  Also, your business must bring in $100,000 or more per year in credit card sales.  Typical approval amounts equal one months’ credit processing volume.  So, you’ll also need 3-6 months of bank and merchant statements. 

  1. Types of Small Business Loans: Equipment Financing

This is one way to get financing to buy or lease new equipment.  Rates vary widely based on risk factors, but usually you can get approval with a credit score of 650 or better.

The lender will undervalue equipment by perhaps up to 50%. Remember, this is on major equipment only. Lenders won’t combine a lot of small equipment. You can get loans up to $2 million.

Equipment Sale – Leaseback

If you already own your equipment free and clear, you can use it as collateral for financing. The process involves selling the equipment to a lender for cash. Then, you lease it back from them. You need at least one larger piece of higher value equipment to qualify, and you can get funding in as little as 3 weeks.

types of small business loans Credit Suite

Credit Line Hybrid Financing:  Get up to $150,000 in financing so your business can thrive.

  1. Types of Small Business Loans: Credit Line Hybrid

One type of loan many business owners do not know about is  the credit line hybrid.   It allows you to fund your business with no collateral and typically very low interest rates.  No financials are required. Furthermore, it reports to the business credit reporting agencies. As a result, you build business credit, which will help you access more funding in the future. 

  1. Types of Small Business Loans: Traditional Business Lines of Credit

A traditional business line of credit is like a cross between a traditional loan and a business credit card. You go through a traditional bank and apply just like you would a loan.  It may be collateral based or not, depending on your lender’s requirements.  You may also use a guarantor to help reduce rates and get better terms if needed. 

The difference between a traditional loan and a traditional business line of credit is that the line of credit is revolving credit rather than a term loan. Like a credit card, you only pay back what you use. Also, lines of credit typically have lower interest rates than business credit cards. The trade off is, there are no rewards like cash back or air miles.

What is the Best Type of Loan for My Business?

Truthfully, the answer to this question varies. It depends on the specific situation your business is in at the specific time you need funding. The answer now may not be the answer later. However, here are some ideas of types of small businesses and situations that each option may work well for. 

SBA Loans

SBA government loans are an option for many business owners that find themselves stuck in the middle. For example, they may not qualify for a straight traditional loan, but still want to benefit from the lower rates and better terms these loans can offer. With a credit score slightly below what the banks typically require, many business owners can qualify for these government guaranteed loans.

401(k) Financing and Equipment Financing 

These types of small business loans are great for those business owners that have these assets to leverage.  They offer low rates and do not require credit scores as high as some other options. In fact, with the 401(k) financing, credit really isn’t an issue at all. The trick is, you just have to have a 401(k). If you do, and meet the requirements, these options can be a great way to get business funding

Merchant Cash Advance

This program is ideal for business owners who accept credit cards and need cash fast.  See, an MCA program is designed to help you get funding based strictly on your cash flow. As a result, you usually only have to provide your business bank statements. Generally, you do not have to submit a ton of documents.

You can get a merchant cash advance through Credit Suite. In fact, our merchant financing program is perfect for business owners with credit issues. Honestly, lenders are not looking for, nor do they require good credit to qualify. You can be approved for as much as $500,000 in financing with no collateral requirements and bad credit. 

Credit Line Hybrid

Maybe you do not do a lot of credit card business and still need funding. In that case, the credit line hybrid may be for you. You can usually get a loan of 5x the amount of your highest revolving credit limit account, up to $150,000. Honestly, this is more than what you could get on your own when applying for credit cards. Furthermore, you can get cash out on this program.

types of small business loans Credit Suite

Credit Line Hybrid Financing:  Get up to $150,000 in financing so your business can thrive.

Also, there is no impact on your personal credit with this type of financing. You need a 680+ credit score, but if you don’t meet that you can take on a credit partner who does. A lot of business owners use the good credit of friends or family to help them get the funding they need. 

Traditional Merchant Cash Advance

If you have strong personal credit and want the flexibility of revolving credit without the interest rates of a credit card, then this is for you. 

What are the Best Types of Small Business Loans? 

The answer to this question is not as cut and dry as it may seem.  There are a number of factors that make a difference. First, it depends on the needs of your business. Then, you have to consider what types of small business loans your business actually qualifies to get. 

The key to ensuring not only that you get the business funding you need right now, but that you are eligible for the best funding options for your business in the future, is to work with a business credit expert. They can guide you to the best funding now, and help you put yourself in a position to have even better options next time.

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From Set Up to Business Start Up Loans: What You Need to Know About Starting a Business

If you are thinking about starting a business, there is a lot you need to know. Our business experts can walk you through the entire process to ensure you have the fundability you need to succeed. From how to set up your business as a fundable entity to making sure you have what lenders are … Continue reading From Set Up to Business Start Up Loans: What You Need to Know About Starting a Business

From Set Up to Business Start Up Loans: What You Need to Know About Starting a Business

If you are thinking about starting a business, there is a lot you need to know. Our business experts can walk you through the entire process to ensure you have the fundability you need to succeed. From how to set up your business as a fundable entity to making sure you have what lenders are looking for when it comes to approving start up business loans, here is what you need to know. 

How to Get Start Up Business Loans and Other Funding

If your business isn’t fundable, you will not get startup business loans, plain and simple. Of course, if you are a start up you aren’t going to have a ton or revenue or business credit history.  So, what can you do to ensure you have a fundable business that can get the money needed to get up and running? 

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

The Set Up, and Why it Matters

Fundability starts in the very beginning.  How you set your business up can make or break your ability to get business start up loans.  Here’s why. Lenders want to see that your business is a stand alone entity, fundable on its own apart from you as the owner. It lends credibility to your business as one that is strong and able to survive on its own merits.

start up loans Credit SuiteTo start this process, you need to make sure your business has its own name and contact information. Do not use your own phone number,  address, or email address. You also need to apply for an EIN. It’s free on the IRS website. This is an identifying number for your business that’s similar to an SSN for an individual.

After that, it is vital that you incorporate. Choose whichever options works best for your budget and liability needs, S-corp, LLC, or corporation.  But, you must do it. It makes all the difference when applying for business start up loans. 

Then, you need to have a separate, dedicated business bank account. It further lends credibility to your business as one that is legit, and there are a number of other benefits that will serve your business well in the future.  For now, just know it is preferred by lenders. 

Business Plan

If your business is properly set up, you will need a business plan. Most business loan applications have a place where you can just fill in the blanks for this part, but that is not what you want to do. You need a professional, well put together business plan that shows you know what you are doing with the money you are asking for. 

You can find templates online, including at SBA.gov.  However, it’s even better if you can hire a professional business plan writer. You will also likely have to hire other professionals to help you complete each part of the business plan. 

For example, you will need a marketing specialist to help you with the market research and an accountant to help with the forecast and other financial sections. The better your business plan presentation is, the better off you will be. 

Business Start Up Loans and Other Funding

Ok, so now for the nuts and bolts. You cannot start a business without money. If your business is properly set up and you have a solid, professional business plan, you have given yourself a great start. It’s time to find the money. 

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

Business Start Up Loans

There are a few different options when it comes to business start up loans. Traditional loans are the most common and typically the first on the list with new business owners. It’s just what everyone knows. If you want to start a business you go to the bank and get a loan.  That works for a lot of people. 

Generally these are all secured loans. That means you put up collateral. However, if you have fabulous personal credit, you might be able to get an unsecured business start up loan. The thing is, you may not want to. You are almost always going to get better rates and terms if you use collateral. 

SBA Loans

For most, SBA loans are going to be the way to go.  These are business loans that have a government guarantee. Because of this, lenders are able to offer them to business owners with lower credit scores than they would otherwise, and the interest rates tend to be better as well. 

Credit Line Hybrid

This is a great option for those needing business start up loans for a number of reasons. First, if security is an issue, this is totally unsecured business financing. You do not put up any collateral, and you can get up to $150,000. It is also no-doc financing, meaning you do not have to provide banks statements or financials of any kind. 

All you need is to have a personal credit score of at least 680 and meet a few other requirements. However, if you do not meet those requirements, you can take on a credit partner that does. You can use the credit of a friend or family member to apply for the credit line hybrid, and the payments will still report to your business credit report, thus building your business credit score. 

Investors and Crowdfunding

Even though business start up loans are where most new business owners head first for funding, they are far from being the only way.  Of course corporate investors are an option. Similar to a business plan, you need a pitch. Angel investors are an option as well. While debt free and effective, neither of these are particularly easy to come by. 

 Another option when it comes to looking for investors is Crowdfunding. It’s not a huge success rate, but there are some businesses that are able to get all they need from this form of funding. You’ll never know if you don’t try. 

Help Through the Weeds

The biggest issue when it comes to business start up loans, and really any other part of starting a business, is getting through the weeds. It can be overwhelming to try and figure out what you need to do to qualify for the funding you need, and then figure out what funding will actually work best for you. A business credit expert is vital to this process. While it is possible to do it alone, it is well worth any expense to get things done not only faster, but the right way to ensure nothing is missed. 

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

Business Start Up Loans: Fundability Matters

The truth is, fundability matters regardless of the type of start up funding you use. The reason is, you are likely going to need to access funding of some type throughout the life of your business. If your business is not fundable, you will not be able to get it. So, the best option is to work with a business credit expert now, to get you on the path to fundability while helping you find business start up loans and other types of start up funding to get you up and running. Building fundability and business credit takes knowledge and intentionality. Don’t try to do it alone. You don’t have to. 

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