Author: Jacqueline Lane

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.

Get a Business Credit Card Online in a Recession

You Can Get a Business Credit Card Online in a Recession

Get a business credit card online in a recession. Here’s how – no matter what is going on with COVID-19.

Per the SBA, small business credit card limits are 10 – 100 times that of personal cards! This shows you can get a lot more money with business credit.

And this also means you can have personal charge cards at stores, and now have an additional card at the same stores for your small business. And you won’t need collateral, cash flow, or financial information in order to get business credit.

Business Credit Card Online in a Recession Features

Benefits vary, so be sure to choose the benefit you prefer from this range of choices.

Secure Business Credit Cards for Average Credit, Not Needing a Personal Guarantee

Brex Card for Startups

Have a look at the Brex Card for Startups. It has no yearly fee.

You will not need to provide your Social Security number to apply. And you will not need to supply a personal guarantee. They will take your EIN.

However, they do not accept every industry.

Also, there are some industries they will not work with, and others where they want more paperwork. For a list, go here: https://brex.com/legal/prohibited_activities/.

To determine creditworthiness, Brex checks a business’s cash balance, spending patterns, and investors.

You can get 7x points on rideshare. Get 4x on Brex Travel. Likewise, get triple points on restaurants. And get double points on recurring software payments. Get 1x points on everything else.

You can have poor credit scores (even a 300 FICO) to qualify.

Find it here: https://brex.com/lp/startups-higher-limits/

Small Business Credit Cards for Luxurious Travel Points

Flat-rate Travel Rewards

Capital One® Spark® Miles for Business

Take a look at the Capital One® Spark® Miles for Business. It has an introductory annual fee of $0 for the first year, which after that rises to $95. The regular APR is 18.49%, variable due to the prime rate. There is no introductory annual percentage rate. Pay no transfer fees. Late fees go up to $39.

This card is excellent for travel if your costs don’t fall into common bonus categories. You can get unlimited double miles on all purchases, without any limits. Earn 5x miles on rental cars and hotels if you book through Capital One Travel.

Get an introductory bonus of 50,000 miles. That’s the same as $500 in travel. But you only get it if you spend $4,500 in the first 3 months from account opening. There is no foreign transaction fee. You will need a good to outstanding FICO score to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-miles/

Bonus Travel Categories with a Sign-Up Offer

Ink Business Preferred℠ Credit Card

For a terrific sign-up offer and bonus categories, have a look at the Ink Business Preferred℠ Credit Card.

Pay an annual fee of $95. Regular APR is 17.49 – 22.49%, variable. There is no introductory APR offer.

Get 100,000 bonus points after spending $15,000 in the initial three months after account opening. This works out to $1,250 towards travel rewards if you redeem via Chase Ultimate Rewards.

Get 3 points per dollar of the initial $150,000 you spend with this card. So this is for purchases on travel, shipping, internet, cable, and phone services. Plus it includes advertising purchases made with social media sites and search engines each account anniversary year.

You can get 25% more in travel redemption when you redeem for travel through Chase Ultimate Rewards. You will need a great to outstanding FICO score to qualify.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/business-preferred

Establish business credit fast and beat the recession with our research-backed guide to 12 business credit cards and lines.

No Annual Fee

Bank of America® Business Advantage Travel Rewards World MasterCard® credit card

For no yearly fee while still getting travel rewards, check out this card from Bank of America. It has no annual fee and a 0% introductory APR for purchases during the first 9 billing cycles. Afterwards, its regular APR is 13.74 – 23.74% variable.

You can get 30,000 bonus points when you make at least $3,000 in net purchases. So this is within 90 days of your account opening. You can redeem these points for a $300 statement credit towards travel purchases.

Get unlimited 1.5 points for each $1 you spend on all purchases, everywhere, every time. And this is regardless of how much you spend.

Likewise get 3 points per every dollar spent when you book your travel (car, hotel, airline) via the Bank of America® Travel Center. There is no limit to the number of points you can earn and points don’t expire.

You will need superb credit scores to get this one (as in, 700s or better).

Find it here: https://www.bankofamerica.com/smallbusiness/credit-cards/products/travel-rewards-business-credit-card/

Hotel Credit Card

Marriott Bonvoy Business™ American Express® Card

Check out the Marriott Bonvoy Business™ Card from American Express. It has an annual fee of $125. There is no introductory APR offer. The regular APR is a variable 17.24 – 26.24%. You will need good to exceptional credit to get this card.

Points

You can earn 75,000 Marriott Bonvoy points after using your card to make purchases of $3,000 in the first three months. Get 6x the points for eligible purchases at participating Marriott Bonvoy hotels. You can get 4x the points at United States restaurants and filling stations. And you can get 4x the points on wireless telephone services purchased directly from American service providers and on American purchases for shipping.

Get double points on all other qualified purchases.

Rewards

Plus, you get a free night every year after your card anniversary. And you can earn another free night after you spend $60,000 on your card in a calendar year.

You get complimentary Marriott Bonvoy Silver Elite status with your Card. Also, spend $35,000 on qualified purchases in a calendar year and earn an upgrade to Marriott Bonvoy Gold Elite status through the end of the next calendar year.

Also, each calendar year you can get credit for 15 nights towards the next level of Marriott Bonvoy Elite status.

Find it here: https://creditcard.americanexpress.com/d/bonvoy-business/

Business Credit Cards with a 0% Introductory APR – Pay Zero!

Blue Business® Plus Credit Card from American Express

Have a look at the Blue Business® Plus Credit Card from American Express. It has no yearly fee. There is a 0% introductory APR for the initial one year. Afterwards, the APR is a variable 14.74 – 20.74%.

Get double Membership Rewards® points on day to day business purchases like office supplies or client suppers for the first $50,000 spent each year. Get 1 point per dollar afterwards.

You will need good to outstanding credit to qualify.

Find it here: https://creditcard.americanexpress.com/d/bluebusinessplus-credit-card/

American Express® Blue Business Cash Card

Also check out the American Express® Blue Business Cash Card. Note: the American Express® Blue Business Cash Card is identical to the Blue Business® Plus Credit Card from American Express. However its rewards are in cash instead of points.

Get 2% cash back on all eligible purchases on up to $50,000 per calendar year. Then get 1%.

It has no annual fee. There is a 0% introductory APR for the first twelve months. After that, the APR is a variable 14.74 – 20.74%.Business Credit Card Online in a Recession

You will need good to excellent credit scores to qualify.

Find it here: https://creditcard.americanexpress.com/d/business-bluecash-credit-card/

Secure Business Credit Cards for Fair Credit Scores

Capital One® Spark® Classic for Business

Check out the Capital One® Spark® Classic for Business. It has no yearly fee. There is no introductory APR offer. The regular APR is a variable 24.49%. You can earn unlimited 1% cash back on every purchase for your company, without minimum to redeem.

While this card is within reach if you have fair credit, beware of the APR. However if you can pay on schedule, and completely, then it is a bargain.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-classic/

Starwood Preferred Guest® Business Credit Card from American Express

Another choice is the Starwood Preferred Guest Business Credit Card from American Express.

This card is for those who stay at Starwood Preferred Guest and Marriott hotels often. Earn six points per dollar of eligible purchases at participating SPG and Marriott Rewards hotels.

And get four points per dollar at American restaurants, US filling stations, and on US purchases for shipping.

Also, earn four points to the dollar on wireless telephone services purchased directly from US service providers. For all other eligible purchases, earn two points per dollar.

Details

Earn 75,000 bonus points when you spend $3,000 in the initial three months of account opening. Benefits include free in-room premium internet access, Sheraton Club lounge access, and purchase protection.

Plus you get car rental loss and damage insurance. And you get baggage insurance. There is also a global assistance hotline. And there is a roadside assistance hotline. And get travel accident insurance and extended warranty coverage.

The most significant issue is the yearly fee. There is a $0 introductory annual fee for the first year, then it’s $95 afterwards. Plus there is no 0% introductory APR. Instead, there is a 17.74 – 26.74% variable APR

Get it here: https://www.americanexpress.com/us/credit-cards/business/business-credit-cards/spg-amex-starwood-credit-card

Secure Business Credit Cards for Average Credit

Capital One® Spark® Classic for Business

For average credit, we like the Capital One Spark Classic for Business. It has no yearly fee. There are cash-back rewards. The card gets an unlimited 1% cash back on all purchases. There is an annual fee of $0.

With this card, you will get benefits including an auto rental collision damage waiver, and purchase security. And you also get extended warranty coverage. And you get travel and emergency assistance services.

But BEAR IN MIND: the ongoing APR is 24.74% variable APR. And the penalty APR is even higher, 31.15%. Also, there is no sign-up bonus.

Get this business credit card online in a recession here: https://www.capitalone.com/small-business/credit-cards/spark-classic/

Small Business Credit Cards for Luxurious Travel Points

Capital One® Spark® Miles for Business

Be sure to check out the Capital One® Spark® Miles for Business card. With this card, you can get 2 miles per dollar on all purchases. When you spend $4,500 within the first 3 months of opening an account, you can earn 50,000 miles. So, that is worth $500 in travel.

Benefits for cardholders include an auto rental collision damage waiver, and purchase security. And they also include extended warranty coverage. And you get travel and emergency assistance services.

Cardholders will pay $0 introductory for first year. But they will pay $95 after that for the annual fee.

There is no 0% APR for purchases or balance transfers with this card. The APR is 18.74% (variable).

Get it here: https://www.capitalone.com/small-business/credit-cards/spark-miles/

Grab a Terrific Business Credit Card Online in a Recession for Cash Back

Flat-Rate Rewards

Capital One ® Spark® Cash for Business

Take a look at the Capital One® Spark® Cash for Business. It has an introductory $0 yearly fee for the first year. After that, this card costs $95 annually. There is no introductory APR offer. The regular APR is a variable 18.49%.

You can get a $500 one-time cash bonus after spending $4,000 in the initial three months from account opening. Get unlimited 2% cash back. Redeem any time without any minimums.

You will need great to superb credit to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-cash/

Establish business credit fast and beat the recession with our research-backed guide to 12 business credit cards and lines

Flat-Rate Rewards and No Yearly Cost

Discover it® Business Card

Check out the Discover it® Business Card. It has no yearly fee. There is an introductory APR of 0% on purchases for year. After that the regular APR is a variable 14.49 – 22.49%.

Get unlimited 1.5% cash back on all purchases, with no category restrictions or bonuses. They double the 1.5% Cashback Match™ at the end of the first year. There is no minimum spend requirement.

You can download transactions| conveniently to Quicken, QuickBooks, and Excel. Keep in mind: you will need great to superb credit to receive this card.

https://www.discover.com/credit-cards/business/

Bonus Categories

Ink Business Cash℠ Credit Card

Have a look at the Ink Business Cash℠ Credit Card. It has no annual fee. There is a 0% introductory APR for the first year. Afterwards, the APR is a variable 14.74 – 20.74%. You can get a $500 one-time cash bonus after spending $3,000 in the first three months from account opening.

You can get 5% cash back on the initial $25,000 spent in combined purchases at office supply stores and on internet, cable, and phone services each account anniversary year.

Get 2% cash back on the first $25,000 spent in combined purchases at filling stations and restaurants each account anniversary year. Earn 1% cash back on all other purchases. There is no limitation to the amount you can earn.

You will need exceptional credit scores to get approval for this card.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/cash?iCELL=61GF

Boosted Cash Back Categories

Bank of America® Business Advantage Cash Rewards MasterCard® credit card

Have a look at the Bank of America® Business Advantage Cash Rewards MasterCard® credit card. Get an 0% introductory APR for the initial 9 billing cycles of the account. After that, the APR is 13.74% – 23.74% variable. There is no annual fee. You can get a $300 statement credit offer.

Get 3% cash back in the category of your choice. So these are gas stations (default), office supply stores, travel, TV/telecom & wireless, computer services or business consulting services. Get 2% cash back on dining. So this is for the initial $50,000 in combined choice category/dining purchases each calendar year. Then get 1% after, with no limits.

You will need outstanding credit to qualify.

Find it here: https://promo.bankofamerica.com/smallbusinesscards2/

Get a Flexible Financing Business Credit Card Online in a Recession

The Plum Card® from American Express

Check out the Plum Card® from American Express. It has an introductory yearly fee of $0 for the first year. After that, pay $250 per year.

Get a 1.5% early pay discount cash back bonus when you pay within 10 days. You can take up to 60 days to pay without interest when you pay the minimum due by the payment due date.

You will need good to excellent credit scores to qualify.

Find it here: https://creditcard.americanexpress.com/d/the-plum-card-business-charge-card/

Unbeatable Cards for Jackpot Rewards That Never Expire

Capital One® Spark® Cash Select for Business

Have a look at the Capital One® Spark® Cash Select for Business. It has no annual fee. You can get 1.5% cash back on every purchase. There is no limit on the cash back you can earn. And earn a one-time $200 cash bonus when you spend $3,000 on purchases in the first 3 months. Rewards never expire.

Pay a 0% introductory APR for 9 months. Then pay 14.49% – 22.49% variable APR afterwards.

You will need great to excellent credit to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-cash-select/

Establish business credit fast and beat the recession with our research-backed guide to 12 business credit cards and lines

The Perfect Business Credit Card Online in a Recession for You

Your outright best company credit cards hinge on your credit history and scores.

Only you can pick which features you want and need. So make sure to do your homework. What is excellent for you could be disastrous for someone else.

And, as always, be sure to develop credit in the recommended order for the best, fastest benefits. The situation with COVID-19 will not last forever.

The post Get a Business Credit Card Online in a Recession appeared first on Credit Suite.

Business Mortgage Leads

Industrial Mortgage Leads

If you are a business home mortgage broker, or running an industrial home loan providing business, you have to have really felt the requirement for business home mortgage leads. Business home loan leads aid borrowing establishments come close to business home mortgage lending candidates with financing deals. Business home loan hunters, while looking for the ideal home mortgage offers, send their home mortgage car loan demands to the industrial lead-generating business.

Prior to authorizing the business home loan leads, home mortgage lead generation business confirm the credibility of the applications. Industrial home mortgage leads are not just a collection of call addresses of the customers. Certified business home loan leads make the work simpler for business home mortgage loan providers.

On the basis of the business home mortgage leads, the borrowing firms use quotes to the car loan candidates. Industrial home mortgage leads are developed to help with the interaction in between customers and also financing companies.

If you are a business home loan broker, or running an industrial home loan providing firm, you should have really felt the requirement for business home loan leads. Industrial home mortgage leads assistance borrowing establishments come close to industrial home mortgage car loan hunters with car loan deals. Industrial home loan hunters, while browsing for the finest home loan offers, send their home mortgage finance demands to the business lead-generating business. Certified industrial home loan leads make the task much easier for industrial home loan providers.

The post Business Mortgage Leads appeared first on ROI Credit Builders.

CareRev (YC S16) Is Hiring a Senior Back End Engineer in Los Angeles

CareRev (YC S16) | Senior Back End Engineer | Los Angeles, CA (Marina/Culver City) | Full-Time | Onsite

Us:
We build software to help the health care industry fully staff RNs, CNAs, MAs, Therapists, and Technologists efficiently. We are experiencing strong growth selling to both Surgery Centers and Hospitals.

Role:
Senior Back End Engineer with 7+ years experience. We’re looking for someone that tends to think data and data structures first and loves RDBMS.

Our Back End Tech Stack:
* Postgresql
* Redis
* Ruby
* Rails
* Linux

Compensation Package:
* 140-160k/y salary
* Stock Options
* Health/Dental Insurance
* 401k
* 2.5k/y continuing education (conferences, books, online courses, etc)

Email us at derrek at carerev.com

Comments URL: https://news.ycombinator.com/item?id=22410044

Points: 1

# Comments: 0

Fall in Love with SBA Loans

We all love a good romance. I mean, falling in love is the stuff of many movies and books throughout the centuries. However, we don’t typically think of romance in relation to business funding.  Honestly, it sounds a little silly. Still, when it comes to SBA loans, there are more than a few reasons to fall in love. Here are 5 of them just to give you a taste.

5 Reasons SBA Loans Could be the Love of Your Life as a Business Owner

The Small Business Administration is, as its name states, designed specifically to be a hero to the little guys.  Who doesn’t love a hero? Whether you need working capital or a natural disaster has struck, the SBA can swoop in and cause you to swoon. 

Overall, there’s a wide range of products offered through SBA programs.  For the most part, the SBA does not lend money directly. In contrast, they work through partner lenders to guarantee small business loans. As a result, they are able to leave the administration of the loans and disbursement of funds to those who do it on a regular basis. 

We’ll make you fall in love with SBA loans with our top 5 reasons.

Learn business loan secrets and get money for your business. 

Reason #1: More Borrowers Qualify

SBA loans 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.  Loans that are more than $150,000 they will guarantee up to 75%. The maximum loan amount they offer is $5 million. 

Above all, this means that since borrowers do not have to guarantee the entire loan themselves, more are eligible for funding through SBA programs than they would be otherwise.  

Who Can Get an SBA Loan?  

To be eligible for SBA loans, you do have to meet these qualifications. 

  • Your business must be for profit.
  • Your business must be inside the US.
  • Business owners must invest equity.
  • All other financial options must be exhausted.
  • Your business must qualify as a small business.
  • Your business must be in an eligible industry.

Reason #2: Plenty of Knowledgeable Partner Lenders

There are SBA partner lenders virtually everywhere.  There are a couple of ways to find one. First, you can contact your SBA district office.  Better yet, use the SBA lender match option.  It’s pretty handy. Basically, all you have to do is enter some general information about your business and what you need funds for.  Accordingly, it matches you with a list of potential lenders that should meet your needs. 

How Does the SBA Choose Lender Partners?  

Surprisingly, not every lender gets to be a partner lender.  The Small Business Administration has a couple of different lender partner programs. Some loan programs are only available from certain types of lenders. For example, SBA 504 loans are only available through a bank, online lender, or a certified development company (CDC.) Community advantage loans are only available through community-based lenders like local banks and credit unions. 

Regardless, all SBA lenders must meet certain criteria. 

SBA’s Certified Lender Program (CLP) 

To qualify to be a CLP, a lender must have some experience and meet certain standards set forth by the SBA. What does it mean for borrowers if their lender is a CLP? Basically, it means that the SBA is able to expedite the application by simply reviewing the credit decision of the lender rather than underwriting the loan itself. 

SBA’s Preferred Lender Program (PLP) 

Lenders in the PLP are more experienced and meet even more rigorous standards than CPL lenders. In fact, they have the ability to underwrite and set their own eligibility standards without the SBA needing to review the application at all.  

Reason #3: Favorable Repayment Terms

One perk of SBA loans is that there is more time to pay them back. According to the Small Business Administration, the terms depend on how you want to use the funds. 

For example, working capital loans, or funds you intend to use for daily operations, have a repayment term of seven years. However, funds for new equipment purchase have a term of 10 years.  Furthermore, real estate loan terms extend even longer to 25 years. Of course, the longer the term the lower the interest. That means lower regular payments.

Reason #4: Better Interest Rates

Speaking of interest rates, because of the government guarantee, lenders are able to offer much more favorable interest rates than they would otherwise be able to.  The exact rate is dependent upon the specific loan program for which you are applying. Still, it is almost always going to be less than it would be without the government guarantee. 

Reason #5: Something for Everyone

There are many types of SBA Loans.  As a general rule, there is something for pretty much any small business need or situation.  Following are the most popular programs. 

7(a) Loans

This is the Small Business Administration’s most popular loan program. One reason is, it offers federally funded term loans up to $5 million. In addition, 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. 

The minimum credit score to qualify is 680.  Also, there is a required down payment of at least 10% for the purchase of a business, commercial real estate, or equipment. Lastly, the minimum time in business is 2 years. In the case of startups, business experience equivalent to two years will do the trick. 

Funds are available for a wide variety of projects, from working capital to refinancing debt.  You can even buy a new business or real estate. 

504 Loans 

These loans are available up to $5 million and can buy machinery, facilities, or land. For the most part, they are for expansion. Private sector lenders or nonprofits process and disburse these loans. They especially work well for commercial real estate purchases. 

Terms for 504 Loans range from 10 to 20 years.  Unfortunately, funding can take from 30 to 90 days. They require a minimum credit score of 680, and collateral is the asset the loan is financing. Furthermore, there is a down payment requirement of 10%, which can increase to 15% for a new business. 

Another requirement is that you be in business for at least 2 years, or that management has equivalent experience if the business is a startup. 

Microloans 

Microloans are available in amounts up to $50,000. They work for starting a business, purchasing equipment, buying inventory, or for working capital. Community based non-profits administer microloan programs as intermediaries. Unlike the others, financing comes directly from the Small Business Administration. 

Learn business loan secrets and get money for your business.

Interest rates on these loans are 7.75% to 8% above the lender’s cost to fund.  Also, terms go up to 6 years. Similar to the others, they can take upwards of 90 days to fund. A minimum credit score of 640 is necessary for microloans, and the collateral and down payment requirements vary by lender. 

SBA Disaster Loans 

Disaster loans go up to $2 million.  They are actually processed directly through the SBA. These loans are for small-business owners that have been affected by natural disasters.  Terms go up to 30 years.  The maximum interest rate is 4%, and you can apply for disaster loans directly at SBA.gov.

The minimum credit score for these loans is 660. Additionally, collateral is necessary if the loan goes over a certain amount.  That amount is usually $25,000. For a military economic injury disaster, the amount that requires collateral is $50,000. Either way, a down payment is not necessary.

SBA Express Loans 

These loans max out at $350,000.  Moreover, they have a maximum interest rate of 11.50%. Terms range from 5 to 25 years.  In contrast to the others, the SBA guarantee is less, at 50%. To qualify, your credit score must be above 680.  Also, you must have a debt to service ratio of 1.1 or higher. If the loan is greater than $25,000, collateral may be necessary depending on the lender. 

The turnaround for express loans is much faster.  In fact, SBA takes 36 hours or less to give a decision. Not only that, but the necessary paperwork for application is less also.  This makes express loans a great option for working capital, among other things, if you qualify. 

SBA CAPLine Fall in Love with SBA Loans

There are 4 distinct CAPLine programs that differ mostly in the expenses they can fund. Each of them carries a maximum amount of $5 million. In addition, the interest rate for each ranges from 7% to 10%. Like many of the others, funding can take 45 to 90 days. 

The four different programs are: 

  • Seasonal CAPLines 

This is financing for businesses preparing for a seasonal increase in sales. 

  •  Contract CAPLines 

Financing for businesses that need funding to fill a contract. 

  • Builder’s CAPLines 

Financing for businesses taking on a real estate or construction project.

  • Working Capital CAPLines 

Financing for businesses that are struggling with a short-term slump in sales.

For these, the minimum credit score to qualify is 680. However, there is no minimum time in business requirement unless you are getting a seasonal CAPLine. That one carries a one year in business requirement. 

SBA Community Advantage Loans 

This program is a pilot set to either expire or extend in 2020. Its purpose is to promote economic growth in underserved areas and markets. Consequently, credit decision makers overlook factors such as poor credit or low revenue if the business has the potential to stimulate the economy or create jobs in underserved areas. 

Loan amounts range from $50,000 to $250,000 with a maximum interest rate of 11%. Terms range up to 25 years.

SBA Loans: The Application Process

Noticeably absent from this list of 5 reasons to love SBA loans is the application process.  Every rose has its thorn, and SBA loans are no different. While they truly are a fabulous funding option for most small businesses, the application process is not as easy as some other loan processes. 

Even though the government guarantee makes these loans great in a lot of ways, it is that same thing that makes applying for them a little more involved.  

How to Apply for an SBA Government Loan 

The main downside to SBA loans is that they have a lengthy and somewhat complicated application process. There is a lot of red tape involved, but understandably so considering it is the federal government and they are guaranteeing a huge chunk of the loan. Here’s how to start the process.

Gather the Information 

The first thing you have to do is gather the information you will need. This includes:

  • The SBA borrower loan information form 
  • Statement of personal history
  • Personal financial statement
  • Personal income tax returns for the previous 3 years
  • Tax returns for the business for the previous 3 years
  • Business certificate or license
  • Business lease
  • Loan application history

This list, along with links to forms and templates, is available at SBA.gov. Once you have this information, you can start looking for a lender. Either contact your local office or use the match tool mentioned above.

Remember, once you and the lender determine which loan program will work best for your needs, there may be additional paperwork.  This is because each loan has its own set of requirements.  

Other SBA Programs

In addition to those programs listed above, the SBA also offers these options that are designed more for specific groups. 

  • Veterans Advantage

 General-use business loans with no guarantee fee for majority veteran-owned small businesses.

  • International Trade

General-use financing for businesses actively involved in international trade or hurt by competition from imports.

  • Export Working Capital Program

Short-term working capital for exporters backed by invoices or other business assets.

Learn business loan secrets and get money for your business.

SBA Loans: A Love Hate Relationship? 

Overall, there are many reasons to fall in love with SBA loans.  Still, they are not perfect. For example, SBA loans offer longer repayment terms and lower interest rates, but there is an extensive and complicated application process. There are low down payment requirements and a variety of loan programs, but the personal credit score requirement is high and there are strict conditions for approval. 

Keep in mind, one benefit of SBA loans that is unique and often overlooked is the support some programs offer before, during, and even after the loan. This can be a huge benefit, especially for those startups with minimal experience. 

SBA Loans: All Relationships Take Work  

Don’t let the longer, more complicated application process scare you away.  For the most part, if you can get an SBA loan it’s a good idea to do so. They offer plenty of support through the longer application process, and the lower rates, lower personal guarantee, and better terms can only help you.  In the long run, if you have the necessary credit score, this is one relationship that is worth working for.  

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Settlement Methods On Ebay

Repayment Methods On Ebay

When just money (or livestock in some instances) was the only accepted setting of settlement for professions, gone are the days. As the principle of trading progressed, so did the ways of spending for things.

Today’s digital globe presses the envelop additionally. With the introduction of on-line trading systems such as ebay.com, lots of brand-new types of repayment have actually thrived.

Of all, on ebay.com, the setting of repayment depends on the arrangement in between the vendor and also the purchaser. The majority of commonly, the vendor will certainly define his or her wanted settlement technique.

The following is a checklist of typical ebay.com repayment settings.

Money On Delivery

This repayment technique can be done with a 3rd celebration messenger system or by the customer and also vendor conference each various other at a concurred area. The benefit of a money purchase is that the exchange of the product for repayment is done in the existence of the vendor as well as the purchaser (or the vendor’s rep).

Individual Check

One preferred technique of settlement is individual check. Creating checks is risk-free as well as very easy. Several vendors do not such as approving check since they are simple to terminate.

PayPal

PayPal is the repayment of selection on ebay.com. Ebay.com has PayPal.

Utilizing PayPal is very easy, practical, as well as fairly secure. PayPal works as like a net ‘cord transfer.’

After signing-up for PayPal, one might send out money to anybody with an e-mail address making use of the PayPal system. PayPal additionally has safety and security attributes that protect versus scams in instance there is a disagreement in between the purchaser as well as the vendor. This system is best for deals as much as $1000.

Escrow.com

Escrow.com is the settlement of option for acquisitions over $500. Escrow.com holds the purchaser’s cash from the vendor up until the vendor supplies the thing.

Cable Transfer

This is the repayment of option for nations that do not lug the PayPal solution. Since the customer normally has to cord over the funds prior to the vendor sends out the products, cable transfers are high-risk. The possibility for non-delivery of products is high.

Various Other Payment Systems

The variety of 3rd party repayment solutions is progressively increasing. Their systems for settlement differ. To be effective they need to be practical to make use of as well as risk-free.

Of all, on ebay.com, the setting of settlement depends on the contract in between the vendor and also the purchaser. The majority of frequently, the vendor will certainly define his or her wanted settlement approach. In these instances, the vendor typically has primacy in the choices pertaining to repayment settings. The benefit of a money deal is that the exchange of the thing for repayment is done in the existence of the vendor as well as the purchaser (or the vendor’s agent). One prominent approach of repayment is individual check.

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