Small Business Grants

Are you thinking to run or start a business? If yes, then nothing sounds better than “free money”. Unlike business loans, here you don’t have to repay small business grants, as such, there’s nothing to worry over refinancing, interest rates or over term length. Rather you only have to apply, quality and boom.

Now, to help you with caveats, you can find here some pre-compiled list of verified startup grants and small business grants for you to check out. This is in a categorized form so that you can figure out which grant is best for you to begin. Get to know more about application process, timelines, eligibility criteria and more for each grant.

How to get Grant for a Small Business loan

A quick Google search will pull up millions of result for business grants. You can find a lot many possibilities that will seem impossible to narrow down the prospects. You can find certain resources that will not only help you find the right grants, rather also assist in application procedures. These will in-turn help you determine grant opportunities that cannot be missed.

Grants.gov

Everybody would want free money from the government. Now, Grant.gov is the federal govt. landing page for the entire federal govt. grants across agencies. This is a great resource to find grant opportunities, however you will find small businesses that are disappointed to find many grants closed to them. This website include grants for nonprofits, individuals, local governments, schools system, and so you’ll have to sift through to fine one that is best fit for you.

You can receive a business grant particularly a govt. funded one. This is tricky and so get to know some of the needs and general guidelines that the federal govt. uses to identify business grant eligibility.

  • Grants are not given to start a business
  • Grant money is not for business to pay-off debt or cover operational expenses
  • Local and state grants maybe awarded to organization that assists with economic development

Small Business Development Centers

After you have done lot many trials for federal govt. business grants, the forward thing to consider here is state and local business grants. Here, you can hit and find some on your own, but you can also be funded by government grants that will help you out.

One crucial aspect where this grants can help is by navigating the grant process. You can get an appointment to make while searching for small business grants.

SCORE.org

This is a nonprofit organization backed by small business administration that promotes mentoring and free tools for small business owners. They serve as free resource for entrepreneurs seeking for expertise having many local experts that you can connect with.

Your Local Librarian

With so many things alongside, local libraries do render for free at lower cost to business owners in finding grants. The librarians are trained researchers and have access to hundreds of databases. As such they can help you in narrowing down the search. As they work in conjunction with local chambers, they know the local pay of the land and will help you find business grants that are particular to your community.

How to Apply for a Small Business Grant

One best way to go through this is by working smart and hard. So, instead of filling out an individual grant application, you can create a resume for your business that outlines your answers to common queries business grant givers. Here, certain applications will vary based on what is needed. For instance, a local govt. grant will need an explanation of how the business growth and development will gain local commerce directly.

Some common assets you might need to provide while applying for a business grant are:

  • Time in business, number of employees, monthly revenue, how the funds will be used, your business elevator pitch, your employer identification number, your social media handles, a photo, a business plan,

Federal small-business grants for women

There are certain federal govt. grants for small business owners who are designated for particular purpose like the research and development projects for rural and business regions. These grants are used for day to day expenses and other startup costs.

1. Grants.gov

This is a database of federally sponsored grants that includes grants for small businesses. In order to apply for it, you must have a unique identification number and register to do business with the govt. in website. It will be only then where you can create an account at grants.gov.

2. Transfer programs for Small Business Innovation Research and Small Business Technology

The small business administration facilitates two competitive programs, that render grants to small businesses to contribute into federal research and development. The federal agencies including the health and human services, defense, department of agriculture, post grant opportunities on their websites. You can search for current grant opportunities on their site. Here, to qualify for it, you should operate a for-profit business with no more than 500 employees and meet other eligibility criteria’s.

3. The Girlboss Foundation Grant

Here, each grant recipient receives funding that are exclusive to female business owners working in arts, music, fashion and design. The selections are judged by innovation and creativity, demonstration, business acumen and planning of a financial need.

State and local small-business grants

Since federal small business grants are limited in number and even very competitive, you can seek for grants at the municipal and state levels. All you have to do is research and pin point particular grant programs in your regions.

4. Women’s Business Centers

The small business administration sponsors women nationwide designed to help female entrepreneurs with business development and access to capital. Some lend money directly while other help find small business grants and loans that you may qualify for.

5. Economic development administration

Many cities and states have economic development resources focused to promote strong local economics. For instance, you can find cities and states having several economic development districts that render financing to local entrepreneurs.

6. Small Business Development Centers

There are numerous small business administration sponsored centres around the country usually housed at colleges and universities. You can find one on one business consulting that including helping with developing finding financing, researching markets and developing business plans.

Private small-business grants for women

There are certain businesses and private organizations that offer national grant programs for women small business owners.

Best Alternatives to Small Business Grants

Small business grants have one main benefit over business loan as you don’t have to pay back a grant. Here, a loan has to be paid with interest and can be tough on new businesses with flow struggles. Here, qualifying for grant is hard and in case thing doesn’t plan out for you; you can find traditional financing option as the best option.

Given here are some loan options you can seek in case you don’t qualify for grant

Micro loans

Micro loans usually have reasonable interest rates and easy eligibility criteria. Many organizations that render grants like govt. organizations and nonprofits, also provide micro loans. So, if you don’t qualify for a grant, you can ask the organization if they give loan.

Crowd funding

There are a range of crowd funding websites where your business can access funding. Here, you have to create an account, pitch your product/service and wait for people to donate to your organization. In exchange for money, you can render prizes like a free product or coupon. So, if you’re opting for crowd funding, you must ensure to read all the rules as this platform takes a small cut of your capital.

SBA Loans

SBA loans are another alternative in case you don’t qualify for grant, mostly a federal govt. grant. This guarantee small business administration loans and works with banks to get them in hands of small business owners. You can find any local bank and check whether they give sba loans.

Business Credit Cards

Even if you don’t think of business credit cards as a financing option, these are very convenient way to finance start-up costs and other business expenses. Business credit cards usually have high credit limits and other perks and so you must make sure to use them wisely without trying to carry a big balance months after months.

What Is a Bridge Loan?

Do you know what a bridge loan is? If not, then there is a brief definition to this in here. A bridge loan is a short term loan used until a company or person removes an existing obligation or secures permanent financing. This allows the user to meet present obligations by rendering quick cash flow. Bridge loans are short term, up to one year, have high interest rate and are usually backed by certain type of collateral like the inventory or real estate.

Key takeaways

  • A bridge loan is short term loan used until a company or person removes an existing obligation or secures permanent financing.
  • Bridge loans are short term, usually taken up to one year
  • These are usually used in real estate
  • Home owners can use this towards buying a new house while waiting for their present house to sell

How bridge loans work

While applying for a bridge loan, you can except debt-to-income and same credit needs like the mortgage. Most bridge loan lenders won’t go above 80% loan-to-value ratio. As such, you will have to at least avail 20% equity in your present home for a bridge loan to be an option.

Bridge loans are typically used in one of the two ways

  • To pay off the present mortgage, putting any excess toward the new down payment
  • A second mortgage that becomes your down payment for the new home

When to use a bridge loan

In case you find yourself in one of the sticky condition, a bridge loan might keep things over the right direction

  • Sellers in your region won’t accept contingent offers
  • You can’t afford a down payment without proceeding from your present home
  • You’re confident your home will sell but prefer to secure a new home prior to listing it
  • Closing on the present home might be scheduled after closing date for your new home

How to find a bridge loan lender

If we take an example to Mr. Anderson, “instead looking for bridging loan service on web, it is best to consult a professional and trusted credit or bank union in your local market”

He also suggests to stay away from collateral based “hard money lenders who advertise “fast cash” online. They offer bridge loans, but they will charge even high rates than conventional lenders who are not reputed ones.

Benefits and downsides of bridge loans

There are both merits and demerits of using a bridge loan you make transitioning to a new home to run smoothly. In this case, you can consider things like:

Merits

  • You don’t have to move twice

In case you sell your old house prior to closing on the new one, you might require finding some temporary house until you complete the procedures. Here, a bridge loan would simplify the procedure can get you into a new house directly

 

  • You can make a stronger offer

The alternative to use a bridge loan makes a contingent offer on a new home. This means, the offer to purchase is contingent upon you selling your present house. Unfortunately, these offers make a lot of uncertainty for sellers, so they will take offers from another purchaser without the contingency. In case you have a bridge loan, it will help eliminating the contingency altogether.

 

  • Qualifying for a low interest rate

The higher you down payment on a mortgage, the less risk you pose as a borrower. So, you might be qualified for a low interest rate if you render a big down payment. In case your present house is not sold yet, a bridge loan will give you that high down payment and potentially a low interest rate.

Demerits

  • It can be expensive

Between high interest rates and fees, a bridge loan can be more costly than alternatives that also include the home equity loan.

 

  • It is not easy to qualify

If you are not selling your present house yet, you can make two mortgage payments for at least a month or two, and possibly longer. Keeping that as burden, bridge loan lenders will have debt to income and strict credit ratio needs for those who apply.

 

  • You may not get enough

Bridge loan lenders usually offer loans up to a combine loan to value ratio of 80%. This means, you present loan can’t total more of the house fair market value. In case the ratio is above 80%, you might get the money you require, making it an not valuable expense.

Businesses and Bridge Loans

Businesses need bridge loan when they wait for long term financing and require capital to cover expenses. For instance, a company is undergoing a round of equity financing expected to close in 6 months. It may look for bridge loans to render working capital to cover expenses like inventory costs, utilities, rent, and payroll until the round of funding goes through.

Bridge Loans in Real Estate

Bridge loans also show it in real estate industries. In case a buyer has a lag between buying one property and selling another, they may look for bridge loan. Usually, the lenders here offer only real estate loans with low debt to incomes ratio and excellent credit rating. These roll the mortgage of two homes together, rendering the buyer much flexibility as they wait for their old home to be sold.

But, in many times, lenders only offer real estate loans worth 80% of the combined value of the two properties. This means, the borrower should have ample cash saving on hand and significant home equity in original property.

Bridge Loans vs. Traditional Loans

Bridge loans usually have a faster funding process, approval and application process than conventional loans, but, in exchange for this, the loans do have short-term, large origination fees and need fast fees. They pay high interest rates as they know that the loan is short term and they can pay off with low interest, and long term financing immediately. Further, most bridge loans doesn’t have repayment penalties.

What is Bridge Financing?

Bridge financing, often in the form of a bridge loan, is an interim financing option where various entities and companies makes use of it in order to solidify their short term position until a long term financing option is been arranged. This normally comes from a venture capital firm and investment bank in the form of equity or loan investment.

This type of financing bridges the gap within the time when the company’s money is set to run out and when it can expect to receive an infusion of funds. Bridge financing is not widely used to fulfill the company’s short term working capital requirements.

It is also used for initial public offering and includes equity for capital exchange in exchange of a loan.

Key takeaways

  • Bridge financing can take the form of equity or debt and can be used during an initial public offering
  • Bridge loans are usually short term in nature involving high interest rates
  • Equity bridge financing needs giving up a stake in the company instead for financing
  • IPO bridge loan financing is used by companies going public. The financing covers the costs and then is paid when the company goes public

The bottom line

A bridge loan seems attractive, but you should weigh the risks and costs carefully, prior to applying, you might consider certain more options like home equity conversion mortgage, 410(k) loan, personal loan, home equity line of credit, etc. These kinds of loans will help you move out of your current home into the new one, and giving low risk interest and fees related with bridge loans.

Commercial Finance

Are you in the world of business? If yes, then you might be acquainted with worlds like “commercial finance” and might also have uttered once or twice in your lifetime or may be more times. However, even it is a very common jargon within the industry; it can still conjure up uncertainty for some business owners who don’t know the options that come to them.

At first, giving a simple definition to this; a “commercial finance is a term given to large number of business finance item products that includes both long and short term solutions, offered by the providers who are external.

Why we need commercial finance support?

It is only possible for businesses to reach a point where growth is imminent through commercial financing. Sometimes there seems to be obstacle in the way of attaining necessary growth like funding option.

Now, these finances make sure that businesses no matter of the size can thrive and hit target instead of missing them. This is because they have to wait to generate enough case to re-invest for them. This is importantly a way to render working amount for businesses.

In this modernistic time, better access to commercial finance showed the way for small and medium size enterprises to prosper. At present, the finance landscape have come to cover more areas, where as once there were just banks, and alternative finance providers who have more business option than ever. It can be said that the new alternatives gave fast access to those who’d otherwise have to go lacking it.

This means, you can find and avail better options, whether it means you’re a customer seeking to shop around within a particular marketplace or a business owner wanting to achieve growth

Commercial Finance: The Different Options Available

Prior to coming access to stand at front of various commercial financing companies in the marketplace, you can set some down.

What types of business loans you can qualify?

At present, you can find more than just one kind of business loan. As such, it is crucial to understand the type of loan you are seeking prior to opting a business financing company that doesn’t render solution as per your requirement.

Therefore, prior to getting to list out every financing company, you can find some quick overview of the entire type of business loans present in marketplace.

1. SBA Loans

SBA loans are known as the gold standard of small business financing. These are loans that are issued by conventional banks, and guaranteed by Small Business Administration. To get a sense of who offers these programs, you can check out the list of some active SBA lenders.

Now, the most popular type of small business administration loan, the 7(a) loan, is large, low rate and long term loans. Loans from the 7(a) loan program are very general financing products, so they’re best for any prime business requirements. But, these are some of the harder loan to qualify; only for borrowers with stellar personal credit, strong revenues and established businesses to qualify.

2. Term Loans

Conventional termed loans are usually the business loans you’d know. These are lump sum loans that are repaid over certain time duration with regular payment. The long term loans are offered by conventional banks that are very much hard to qualify for.

But, non-bank, and alternative commercial finance agencies do offer the medium term loans. These are the conventional bank loans but somewhat small with slightly high rates and short termed. These loans are easy to qualify rather than SBA loans and bank loans, and are perfect for huge business expenses and investments.

3. Short-Term Loans

Short term loans are like medium term counterpart which is short lived. Non-banks, and online commercial finance companies offer lump sum loans over short terms with high rates and small amount. As such, you will avail high interest rate with a short term loan product as the commercial financing companies do offer fast financing and more accessibility that you can find at other SBA lenders. They charge high interest rate and riskier borrower because of it.

Now, short term loans can give rise to capitals you’ll require to accomplish short term projects, meet the working capitals and handle any one-off expenses.

4. Business Lines of Credit

A business line of credit is a financing solution that renders you access to a pool of funds for your business to draw from whenever you require. This is similar to the business credit card where you’ll have to pay interest on the funds you draw and once you pay them back, your line of credit gets filled to your original capital.

Here, the commercial finance companies do offer small as well as large line of credit along with multiple accessibilities. These loans are taken to be the perfect financing products for small business financing owners in part as these are very much flexible. The business line of credit works specifically well for owners who are in need to have as a safety net in their pocket, smooth out cash flow or cover regular expenses.

5. Equipment Financing

This help one to afford the pricey equipment needed for the business; however it cannot pay for upfront. These commercial finance companies that render financing advance you up to 100% of the value of the equipment that you will pay back over a set amount of time with interest. After you have completely paid up, you will own the equipment.

Equipment financing is a good option for those businesses that require both used and new office supplies, vehicles, machinery and so forth.

How Commercial Finance Companies Difference From Banks

The two kinds of commercial finance companies viz: banks and alternative lenders differ from one another in some crucial ways. Here are some of the most important differences to catch up.

#Flexibility

There are banks that only offer term loans and line of credit, as such alternative lenders are more flexible with these kinds of financing type they offer. Not only do the commercial finance companies offer line or credit and term loans, rather also working capital loans, merchant cash advances, invoice financing, short term loans and so forth.

#Accessibility

Banks are notorious and tight with their credits. As such, alternative lenders open their options to a huge range of small business owners. So, previously unbankable business owners do qualify for the alternative commercial finance companies.

#Speed

Bank loans do take a long time to apply to, and long time to fund, in case you are approved. Overall, this method of applying can take few months.

On the other hand, alternative commercial finance companies work faster than banks. Some of the longer lenders take nearby 10 days to fund a loan, while some can approve a loan on the same day you apply.

How do they do this?

This is because of the accessibility and speed aspect that goes hand-in-hand with the type of lenders. Many companies do not require as much paperwork on the borrower’s end as SBA lenders and banks do. This means, you spend less time compiling a loan application, and the lender spends less time to review the paper work.

Further, the commercial finance companies also make use on online technologies to underwrite loans more efficiently making it a faster process.

#Affordability

The accessibility and speed difference between commercial finance companies and banks lends itself to a difference in affordability. This is because it works on such a faster timeframe and wants to work with less qualified borrowers. As such, they charge high interest rates that what you would find at a bank.

Commercial Finance Companies: How to Choose

After you have found a list of top commercial finance companies, there is a question here as to how to choose them.

This can start with what you qualify for. For sure, you would not like to work with term loan lender in case your credit score was high. Rather you’d consider short term loan or a short term line of credit.

After you have the knowledge about the qualifications and criterions, you can come to know the list of commercial finance companies that will be realistic option for your business. Further, you’d be working with the lenders that will offer the best and meet your requirement within a much low capital.

Small Business line of credit

There are many benefits of opting for small business line of credit. In one way, this helps entrepreneurs maintain a constant supply of money keeping up with recurring expenses, flow of seasonal changes and ebb in business. Nearby 50% of business owners who have experienced cash flow issues, a small business line of credit can be a necessary lifeline.

If you are in a mental setup that your business is profitable and you do not require any additional cash reserves, then it is wrong on your part. There are businesses with or without any cash flow problems that keep a line of credit handy for expansion opportunities or unexpected growth. So, a business credit line is a flexible, mostly lower cost path to cover short term financing requirements no matter what is the nature of those business line of credit requirements.

Now, a business line of credit renders flexibility that a regular business loan doesn’t. Here, you can borrow up to certain limit and pay interest only on the portion of amount that you borrow. You can then draw and repay funds according to your way for the moment you don’t exceed your limit. A line of credit comply many factors and can be taken as how credit cards work.

So, if you want to pay for any surprise expense, buy inventory or want to manage cash flow; then a business line of credit makes total sense.

Through this line of credit, you can avail access to a lot funding option and draw when you’re in need of money. It is unlike the conventional business loans, and so here you’ll the flexibility to borrow certain amount and repay only the amount you withdraw with some business line of credit interest rate.

You can draw on small business line of credit to manage cash flow gaps, avail more working capital or address any other opportunity or emergency.

How to get qualify for a business line of credit?

There are conventional lenders like banks that need businesses to possess strong revenue for few years to qualify for a line of credit. Here, the bigger line of credit will need collateral that can be seized by the lender in case you fail to pay.

To apply, the lenders usually need following documentation like:

  • Personal and business tax returns,
  • Bank account info
  • Business financial statements

Like a balance sheet or profit/loss statements

These days, the online business lenders have looser qualifications than banks. But, they can charge high rates than banks and may have low credit limits. So, you will need at least 6 months in business to qualify for a business credit line. Even if there are lenders that don’t set a min score, still borrowers will require a score in order to qualify.

How Do You Apply for a Business Line of Credit loan?

The application can be a very easier, noting on the line of credit, the lender you are working with. The online business renders will have a quick and streamlined application because of the increased work of technology in the underwriting processes. Otherwise, the conventional banks will have more intensive business-line-of-credit application.

Usually, the online business line of credit providers offer small and short term option that will come with faster and easier application process. Meanwhile, banks will offer long term options that will require additional paper work thereby taking more funding.

The applicable documents needed for this application process are:

  • Driving license
  • Profit and loss statements
  • Balance sheet
  • Bank statements
  • Voided business check

How Does a Business Line of Credit Work?

You might have come with many surprises in your life and so you should expect the unexpected when it comes to business. Here, a small accident can set you back long way if you are not prepared. This is the reason the business financing need to be very flexible. Here’s what you must know about the business line of credit bad credit and how it will help you keep protected from storms and take advantage of unforeseen opportunities.

Different Kinds of Business Lines of Credit

Even if your purpose is not industry standard means, the business lines of credit has been splited into short term and medium term. This is because even if the small business line of credit doesn’t have term lengths, you can withdraw and payback the funds indefinitely as long as your lender believe that you are responsible borrower. These labels will help to compare short term loans with short term conventional term and short term line of credit with medium term line of lines of credit.

The difference is usually in the interest rates, max fund amounts, and min qualifications. The longest term lines of credit usually come from conventional bank and the two loan types are found with online lenders.

The Benefits of a Business Line of Credit

The biggest benefit of business line of credit is its renewability where you can draw funds, pay them back and draw again. You can use small credits to help provide a cushion to protect against emergencies, take advantage of unexpected opportunities, cover cash flow gaps, and finance ongoing operating expenses.

Now, the lines of credit are so flexible and can be used for larger purchases, unforeseen problems, seasonal expenses, and for payroll. This flexibility is what makes a line of credit valuable for small business owners.

Business Line of Credit vs. Credit Card: What’s the Difference?

Even if business line of credit and credit cards are both forms of revolving credit, you can find some differences to be aware of.

  • Credit cards have high interest rates
  • Credit cards charge extra fees for cash advances and also balance transfers
  • Credit cards need payments over a monthly basic while business line of credit usually don’t.
  • Lines of credit gives you access to cash

Revolving line of credit vs. Business credit cards?

Even if, the credit card is very much similar to revolving line of credit; one should know that they are not same. Credit cards tend to have high interest rates and charge extra fees for balance transfer and cash advance. They need monthly payments while some lines of credit don’t. The loan amount is higher through a business line of credit.

Since they are unsecured loans, they will need personal guarantee that will make one liable for any unpaid debts. If you are trying to grow your business, a business line of credit serves to be a good option.

What is a secured vs. unsecured business line of credit?

A secured line of credit is a line where a borrow puts up collateral as a security deposit on the line of credit. Putting up property as a form of collateral is common, however this will be other items owned by businesses like inventory and equipment. There are preferred over unsecured lines by borrowers and lenders. Here, the lender takes less risk to get grant of high credits at lower interest rate. In case of new businesses having poor credits, you can be qualified for a secured line because of the inherently high risk.

Business Credit Cards

What is a business credit card? To give you a simple explanation in brief, business credit cards are credit cards meant to use by businesses instead of using in personal use. These cards are meant for businesses of all sizes. They do help businesses built a credit profile for improving future credit borrowing terms. Here, the small business credit cards are backed by personal guarantee that integrates personal liability to help in structuring credit terms.

How a Business Credit Card Works?

Various lending institutions do offer business credit cards. The method of applying is same like the standard credit card application where the borrowers do apply with/without any employer identification number. As such, the process makes it easy for every type of business to avail business credit cards.

Advantages and Disadvantages of Business Credit Cards

Are you thinking to obtain the best business credit cards for travel? If yes, then you should complete an application. Usually, these cards are easier to apply than non-revolving business loans as the method is automated with an immediate credit decision. They do come with various advantages and so have high interest rates unlike the conventional loans. Here, the credit card debt is unsecured that raises financing costs because of high risks for lenders.

Business owners can apply the form through an employer ID number if they have one established. However, they can also use their personal social security number. The lenders will go through some under writing analysis over the entire info that are present in a new credit application. Business has credit reports and establishes a credit history in the way that individual does. As such, any activity that makes use of employer ID number will reflect on the business credit report.

Some essential points to note down

  • Business credit cards are used by firms for professional expenses, as opposed to personal credit cards that are used by individuals
  • The cards do help small companies to build credits in order to have better credit borrowing terms in upcoming days.
  • The cards are easy to apply than non-relieving business loans and come with gains and high interest rates than conventional loan types.
  • The cards are helpful for small businesses, for bookkeeping and keep professional expenses separate than personal one.

Business Credit Cards for startup

Business credit card for newer business is sometimes misleading. The age of your business here doesn’t matter and your odds of approval usually depend on the personal credit standing. This is the reason why issuer requests the social security number and is why you cannot get a newer business credit card without a credit check. Bearing that in mind, you can find business credit cards for startups of all credit levels displayed. The customization of offers is based on the credits that stands and the desired rewards and rates to make it easy for finding the best card according to your requirement.

Instant Approval Credit Cards

Instant approval business credit cards are cards that determine the application in real-time. Now, many applicants can decide – either approved or denied the right way that depends on the credit card company’s ability to validate your identity. In case the issuer is unable to validate your identity, they will request some additional info and take a few days to process the application.

If you’re thinking to raise the odds of getting instant approval, you need to focus on cards that are suitable to make your credits stand out. the more high is your credit score, more there will be.

Understanding business credit cards

Firstly, the small business credit card seems more like consumer cards. It comes with same signup fees, rewards and bonuses. However, the consumer and business cards are unlike in some ways. Below is given some tips you ought to know prior to applying.

You’ll have to sign a personal guarantee

Virtually, all small business credit card application includes personal guarantee and clause that states that you’re liable for the debt accrued. This means you are responsible for the balances even if your business goes belly-up. Bear this is mind while applying and prevent borrowing more than you are able to payback.

Your personal credit may be affected

While applying for small business credit card, the application will show up as an inquiry on the personal credit report. This will cost you some point on the credit score for less duration. This is because your issuer will ensure that you are over the solid financial footing prior to letting you borrow money.

These cards usually fall into two categories: some report to both commercial bureaus; while other to your account payment history only to commercial credit bureaus. In the former case, your good/bad spending habits affect both of your business and personal credit.

Who can apply for a small-business card

Anyone who operates a business can apply

Here, you do not require incorporating or have a formal structure like LLC or partnership. Sole proprietors are eligible and your business can be your full time job, a side hustle, or a part time operation. You should be prepared to answer queries over the application that includes things like:

  • Your business name and contact info
  • The industry you are in, how long you have been in business and how many staffs you have
  • Your business spending and annual revenue

How to choose a small business credit card

There are times where you will use your small business credit card so little, so ensure you get one with some favorable terms. Some tips to consider here like:

Take stock of your business’s spending habits

If you plan to carry balances months after another, getting a card with 0% APR period or less ongoing interest is crucial than seeking for generous rewards. Otherwise, in case you plan to pay in full every month, a card with lucrative rewards and big signup bonus can be perfect.

Figure out what type of rewards you should go for

Is earning higher rewards you goal? If yes, then you should give more concern to your costs. For businesses that spend more on office supplies and travels, a card that renders bonus rewards will serve a good choice. Also, for companies with spending that doesn’t fit into category, you can opt for flat rate reward.

How to compare small-business credit cards

You can narrow down your choices according to the business’s requirement. This is how to determine and compare the features of various cards.

Annual fee

Many best small business credit cards charge annual fees in hundreds of dollar range. The rewards you earn here from your total sending can easily makeup. So, you shouldn’t miss the idea to pay fees out of your hand. Here, high volume businesses gets rewards that dwarf the fee and so annual fees get deductible business expenses.

Rewards structure

In case you go for rewards credit card, you will have two choices viz:

  • Flat rate card
  • Bonus category card

Another choice is whether you want your rewards as points or cash back.

Points card gives you miles or points for each dollar you spend, rather with bonus points of flat-rate categories. These rewards will be redeemed for travel even if you have other options like cash back or merchandise. Whereas, the cash back card pays you back a certain percentage of every purchase and this is most commonly redeemed like credit against your account.

An Overview Of Student Loans

 

Here is a brief introduction to student loans. A clear definition to that is: “A student loan is money you borrow from any financial institution to pay for expenses in school”. It includes things such as personal computer, textbooks, room and board, tuition and fees, and many more.

Now, for prospective and returning college students should fill out the application form for federal students every year in order to identify whether they have the eligibility for financial assistance to cover the college cost. In case you meet all the criteria, then the school can offer you lot many grants, loans and work study which are part of financial aid offers.

If your loan case has got the approval, it will be beneficial for you. However, take into concern that this is not free, and you will have to pay it back in future along with the interest.

Different types of student loans

Federal student loans are backed by the federal govt. and have lower interest rates, whereas private loan private loans are backed by private lenders, credit unions and banks. The private student loans can have some higher interest rates. This blog will give a more clear detail to each type of student loans.

Federal loans

For federal loans that have fixed interest rates serve as good option for prospective college students. These loans are less that comes over the long term than the private loans. Here, you must get your name enrolled in school for half time to be eligible for certain federal loans. So, you don’t have to repay the loan until after your graduate, or you leave school, or choose to take classes less than half-time that totally depends on the loan terms.

Here, you can have a grace period prior to beginning the payments. The grace period varies by loan, but the repayment starts 6 months after your change the enrollment status or graduate from school.

Private loans

Private student loans is another option for students, but the government student loan recommends this loans type after you have tried to get the federal loan, work study funds, grants and scholarships. The reasons here is these loans are more expensive and have high variable interest rates. Therefore, the amount you need to pay back can rise with respect to time, in case the rate goes up.

Sometimes, the family members aren’t eligible for federal financial aid option, or the complete financial aid package to cover all the costs of school.

What type of federal student loans can I get?

The mostly used two loan programs are discussed in brief here. These loans are:

  • The Federal Loan Program
  • Direct Loan Program

#The Direct Loan Program is the largest of the federal govt.’s student loan program and include 4 various kinds of direct loans.

  • Direct subsidized loans – These loans are available to eligible undergraduates who have the criterion filed for financial requirements. The govt. pays the interest while you are in school for half time.
  • Direct unsubsidized loans – These loans are available to professional students, graduates, undergraduates no matter what their financial need is. With this loan, one can be responsible to pay all the interest even if it accumulates the time you are in school of during deferment or grace period.
  • Direct plus Loans – the professional parents of dependent undergraduates, professional or eligible graduates can take out this Plus loan. The highest amount you are approved for depends on the amount of attendance minus other financial aid you have received.
  • Direct consolidation loans – This kind of loan allows a student to combine the eligible federal student loans into a single loan with a single loan service.

#The Perkins Loan differs from other federal student loans when the school is the lenders and not federal government. However, this is not the case for every loan program. Students can avail the low interest loan if they are professional students, graduates, or undergraduates who have exceptional financial needs.

When to use private student loans

You should consider federal student loan options first, but private student loans is a better option for some borrowers like those who have borrowed the max of federal loans and still require more.

Here, the graduates and parents with good credits can get a good interest rate with a private student loan than a federal one. Now, the borrowers can stick with federal loans even if they gate a better rate with private loans. This is because the federal loans offer forbearance options, income driven repayment plans, and forgiveness programs.

How to apply for private student loans

Unlike most federal student loans, private student loans need complete underwriting process. Now, lenders opt for ones with enough extra cash and good credit to make loan payments given other expenses which is a lower debt to income ratio. In case you do not meet those needs, the cosigner can help you become qualified for the private student loan.

Further, credit unions, banks and new crop lenders all offer private student loans. The biggest student lenders offer. These loans with so many options to compare interest rates, borrowers protections, and fees prior to choosing any lender.

Can I get a private student loan with bad credit?

You may need a cosigner

It is feasible that you can avail a cosigner. Since many private student loans, credit independent or federal loans, these are identified by the credit history; many do not qualify for private loans on their own because of their lack in credit history or due to bad credit student loans. If this is what you are dealing with, you might have a cosigner on your behalf to let you qualify for the private loan.

A co-signer can help lower your interest rate

Credit application is needed for private student loan that examines credit report, employment and income. The less you have the credit score; more will be the risk for the lender that will cause again for high interest rates. One way to get the loan approval with low rate is by adding cosigner with good credits to your application.

Compare co-signers for the best rate

Here, credible makes it easy to invite a cosigner to your application and even compare multiple cosigners to see which one is found at best rates.

The final thought!

Finally, student loans are required to pay for the costs of your education. So, you can consider them an investment in your upcoming days. Still, it doesn’t want to sacrifice your financial future by taking more debts than you should get for the graduates or undergraduates.

So, prior to signing on the application form, ensure that you know all you are getting loan for. This also includes the amount of time it will take you to pay it for. Getting along with your due diligence can let you avoid for biting off more debts than you can bear.

Small Business Loans

Usually, people require loads of resources to effectively manage their business. In case this person is you, your main objective might start from new ideas or even an old one with new methods of introduction. Either way, you can know that business requires overseeing lot many necessities and requirements, most particularly over the financial aspects.

Business loans are widely found that range from govt sponsored loan to private loans made to assist new businesses. Usually, you will be able to find series of options that relies on your taste and preference. In case you want your interest rate to be less, it is advisable that you go for Money loans that come from government grants.

Now, a comprehensive, clear and well drafted will make it easy for you to gather loans. Generally, a concise assessment is made by lenders to scrutinize if your business plan does deserve a loan approval. This won’t take long as lenders usually know your requirement so they look for minimizing the time spent in loan processing.

These loans are usually processed in almost every major bank. So, you can ensure that you’ll not have issues with banks assisting you with whole process as these institutions care to help your business as much you are. So, prior to committing to any business pursue or venture your small business loans, ensure that you have done your advance research to avoid any unnecessary situations. After you have made enough arrangement, your loan transaction will firmly be hassle free and a rewarding experience.

Different types of small business loans are available

Here, you can find a range of best small business loans available till date. The diversity of companies operating with the small business industry does prompt the making of different kinds of small business loans. These are described in brief as follows:

Short term loans

A short term loan is a type of loan that is created to support a temporal personal or business capital need. Since, this is a kind of credit; it involves a borrowed capital amount and interest that requires paying or returning back on the schedule date. This time is generally within a year from availing the loan.

This loan is a valuable option mostly for start-ups or small businesses that are not eligible from a credit line from banks. Here, the loan involves less borrowed amount that start from hundreds to hundred-thousands of dollars. Further, these loans are suitable not only for businesses rather also for individuals who are going through sudden or temporal financial issues.

Business line of credit

A small business line of credit has more in common with the small business credit card, than with a small business loan. Like a small business loan, an unsecured line of credit renders businesses with access of money to use to address any business expenses that arise. Unlike a small business loan, there is no lump sum disbursement made at account opening that need a frequent monthly payouts. Also, this is subjected to credit review and annual renewal that is revolving like a credit card..

SBA loans

Among a lot many kinds of small business funding, the SBA loans are one of the perfect ways to financial your enterprise. These loans are guaranteed by the federal agencies that allow lender to offer them lower interest rates and flexible terms. So, availing help will let your business to grow without taking on crippling debts. These loans are the agency’s most popular kind of financing.

Commercial financing

If you’re in a world of business, you might have heard the words “commercial finance”. However, no matter it being common jargon within the industry, it can conjure up uncertainty for some business owners those who are unaware of the options given to them. Therefore, one can say that the commercial financing is the tern given to a range of business financial product items that includes both long and short business money loans solutions, offered by the provider external to their business.

Small Business Startup Loans

A best small business loans for start-ups is a type of financing that aims particularly towards start-up with little or no business history. There is a range of financing process and business loans process available to new business owners viz: crowd funding, friends and family, business grants, business credit cards and SBA microloans.

Equipment Financing

Equipment financing is the use of lease or loan to borrow or buy hard assets for your business. This kind of financing can be used to buy any physical asset like a company car of restaurant. Here, the most crucial thing to know is that it is for financing a physical asset. This is because equipment financing tends to be a more affordable and less risk process to bring equipment than other forms of financing.

Personal Loans for Business

A personal loan is one of the perfect way to fund a budding business of your own, however it also have demerits. There are a range of queries like: “seeking for right idea to use personal loans instead of applying for traditional business loan”. So, you need to apply and get approved for a personal loan.

Benefits of Small Business Loans

Businesses require funding at various stages like while expending operations, recovering from losses or starting new projects. Now, starting a business is mostly the part where funding is almost non-existent. Experts work their ways to make optimal use of resources but this is not enough. As such, you can find a lot many ways to fund your business, and one such way is small business hard money loans. Here, you will find some benefits of small business loans.

  • Convenient Repayment – The small business reflects in the repayment option and also knows the complexities involved with businesses and their plans likewise. They will render repayment plans as per the cash flow to prevent the hard chances in financial management.
  • Flexibility – You can choose from a range of loans to fulfill particular business requirements. Various govt schemes offer business loans designed from expanding the facility. These schemes don’t need any third party security or guarantee.
  • Low Interest rates
  • Easily available

How to apply loan for small business

For a small business to get off the ground, or keep one operating, it must have financing that is mostly in the form of a business loan. Now, small businesses can apply to financial institution or banks like credit unions for commercial loans. Generally, banks don’t make loans to startups, but do make for ongoing businesses. Here are some steps to follow through series of the loan application process.

  1. Reason for and amount of the business loan
  2. Visit your local score
  3. Review your credit history and credit score
  4. Start reviewing your borrowing options
  5. Prepare your business plan
  6. Plan a presentation and make the appointment

How Moneyman 4 business can help you getting your loan instant

Moneyman makes money when you get the funding you require. There are some small business loans providers on our site who pay us a referral fee when customer get loan being approved. Also, we always try to find the perfect option even if we do not have a paying relationship with lenders. Further, we turn down offers from lender that we think will take advantage of small business owners.

How our business loans work

Apply in minutes

You can apply through quick application in minute as we take a holistic view of your business and evaluate them.

Review & accept your offer

In case you are eligible, you will receive an instant pre-qualified offer to choose and review your repayment term.

Draw Funds

After your application is approved, the initial money loans amount will be deposited in banks and you can draw your fund under the credit limit right away.

SBA EIDL Reconsideration Business Loan Program

SBA EIDL Reconsideration Program

If you notice any inaccuracy, update your information regarding your business and credit report with supporting documents like tax return with correct industry code. You should also verify your business information on the file with the Secretary of State. Our Chief Financial Officer John Guillory can give you many other opinions to correct inaccuracies of information relating to your SBA EIDL application.

SBA EIDL did not offer, approved or funded your business with enough capital less than the current $150,000 CAP for SBA EIDL loans.You may qualify for additional capital especially if you can prove intend of use of the funds for Hiring more US-based employees & investing into USA made inventory.

Resolution: Speak directly with Money Man 4 Business, Chief Financial Officer John (JJ) Guillory at 281.763.2294 ext. 0. To determine if your business may qualify for SBA EIDL Loan increase. John Guillory has over 28+ years’ experience working with Government insured &/or funded Loans.

When an applicant applies for SBA Economic Injury Disaster Loan, the economic injury is not substantiated based on the initial application. On the basis of information provided by you on your loan application, it has been determined that your economic injury cannot be substantiated. The decision has been arrived on the basis of the following two reasons.

The economic injury faced by you is less than the amount received from EIDL advance. Based on this, SBA cannot substantiate any additional claim at this point in time.

Because of information provided by you, SBA cannot determine any economic injury to your business.

Many applicants did not seek professional or experienced help completing the application & incorrect figures were used on the initial application.

Resolution: Money Man 4 Business can request your application to be reconsider for up to $150,000 which is the current CAP amount for SBA EIDL loans. If your figures were reported incorrect. Money Man 4 Business will revise any portion of the application that may had been incorrectly report at the initial application.

If you had late payments in the past and might be caused by you are struggling with low cash flow, reduced business revenue because of the Pandemic or you made all payments on time but you are over leveraged because you have depend on your personal credit to support your business cash flow requirements.

Resolution: You can submit your current Experian Credit report to Money Man 4 Business. We will review the entire Credit report with you and develop narrative report to explain how problems & economically issues in the past has hurt your credit while you were building your business. In the past 10 years in the US Business Owners has been depending on personal credit & financing that has taken away from the business profit margins. We recommend you obtain current credit report for only $1 from the LINK below. After you submit the Current Experian credit report. We will review in detail with you and help compose narrative report that we will submit on your business behalf for your application to be reconsidered for SBA EIDL loan. Link to IQ: https://www.identityiq.com/sc-securepreferred.aspx?offercode=4311491X

888.88.CASH.1 ext: 0 (888.882.2741)

Cash@moneyman4business.com

Small Business Start up Loans

What is Small Business Start Up Loans ?

If you have planned to start a business, it is certain that you would have something on your pocket in order to get off the ground and know the full potential. But, there are lenders and banks that render most weight to elements like in annual revenue and business with things that a new business can’t point to on small business loan applications.

A startup business loans is a type of financing that aims particularly on startup with little to no business history. Now, you can find a lot many varieties of new financial processes and business to new business owners viz: crowd funding, friends and family, business grants, business credit cards, and SBA micro loans.

This is where the startup business loan comes in handy. These loans are made to help startup businesses know basic operating things and expenses such as staffing, equipment, and inventory. These things usually needed to be placed prior to a business starting to generate revenue and make things possible.

Different Options for Startup Business Loans:

SBA Microloans

This program is mostly the conventional startup business loans on the list. The SBA microloan program offers small businesses with a large amount while the small sized business startup loan with small and less substantial startup cost to bear. Even if with this, the programs aren’t actually loans issues by the Small Business Administration. Rather, these loans make the ultimate decision of which startup businesses makes fund out of.

Business Credit Cards

Business owners with less than six months in business must consider getting business credit cards to cover the startup costs. Even if this is not a conventional startup business loan, a business credit card can grant you limits you can borrow when you need to cover large expenses. So, as long as you pay off your balance each month, you don’t have to be afraid of higher interest rates that you carry.

Small Business Grants

Small business grants serves to be a great way of raising money for the startup business; who don’t want free money. However, small business grants from govt. organizations and non-profit organizations can be challenging to secure, as many small business across the country do apply it. Further, some grants are reserved for some type of businesses such as the businesses that operate in particular communities, non-profits, and mission oriented businesses. Even if these grants are not a conventional replacement for startup business loans, they are worthy applying if you think you have a shot at receiving one.

Friends and Family

When more traditional small business startup loans aren’t available to your new business, you can turn to friends and family to raise initial funds. Now, there are many successful businesses who have built off the back of generous friends and family members, but this financing process is very risky for startup owners.

Crowd funding

Crowd funding is another creative funding process for starting business loans when other loans don’t make sense. This method lets you raise capital from online campaign mostly through dedicated platforms. Here you have to set a particular amount of capital where users will have to donate money if they feel inspired to do so. Unlike debt financing or equity, you do not have to pay interest or give up ownership to the funders.

Equipment Financing

To speak of, banks are usually conventional known for their lending opportunities. With the number of startup businesses starting at a peak scale, the conventional loan doesn’t seem to be a good option. Now, banks have strict small business lending standards and their offering is only available to established businesses. Here, still you can work with the banks to secure the equipment financing.

Personal business loans

There are lots of small business owners who access financing through personal loans. They do it through the growing number of online lenders. However, like credit cards, personal loans can have higher APRs, mostly for bad credit borrowers. Now, personal business loans can sound the best option for borrowers with strong income and excellent personal credit.

Take  a startup loan to gear up your business success

If you are building a small business, know that it doesn’t have to be a difficult task. Rather you just have to lend yourself a financial cushion. Now, getting access to the capital you should focus on hiring buying equipments, increase inventory, lease office space, hire staffs or simply cover monthly expenses while you grow.

Also, you can find lot many financial options to select viz: business credit cards, business line of credit, equipment financing, SBA loans, short term loans, and so forth. No matter the type of startup loan, you just have to have some extra cash and fewer headaches.

Who Qualifies to get Startup Business Loans?

For any small business startup, there is not one option that covers the entire financing options for the startup owners. So, the various methods to adapt are: crowd funding, friends and family, small business grants, business credit cards, and SBA microloans. Now, there are many new and young businesses that qualify for a startup business loan.

The most crucial key elements in all of this small business startup financing option will be the personal credit score. The higher the score the better chances to qualify for the personal loan business, business credit card, and SBA microloan.

Your eligibility for a more alternative start-up business loan like friends and family, crowd funding or grant will depend less on your credit score and more on the detail of your business like your business model, your customers, your communities, and many such things.

How Do You Apply for Startup Business Loans?

If you have planned to apply for new business loans, you must consider the method of financing you do apply to. Here is a breakdown of what to expect with each kind of startup business loan. Now, SBA micro loan will usually have a high intensive application procedure, where many documents will be needed and processed and the time for this would be at most few weeks.

Business credit cards have a very simple application procedure that requires “social security number” or federal tax ID. The application process here depend on the grant you apply for. The creative funding options such as crowd funding or friends and family doesn’t have conventional business startup loan application and so will depend on your unique funding conditions.

How Do Small Business Startup Loans Work?

Have you recently started to grow your business and already feeling lost about the funding options? If yes; the world of business financing can be lot confusing; mostly when the first timer business owners strike it out on its own.

Now, getting capital in the form of startup business loan is challenging and with no proven business history to show up, the start-up is the riskiest type of business to fund upon. However, there is nothing to be stressed as you can find lot many varieties of small startup business loan available for the startup owners. You only have to check them out and consider which one reflects better output to stick best for your business.

Take an Advantage of Loans to Meet the Requirement!


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About SBA 7(a) Loans:

Loans are insured by SBA which is known Small Business Administration in U.S to entrepreneurs in order to meet their requirements in different sectors.  But everyone could not take its benefits; there are some important aspects where users can take its benefits. There are some key factors which can be taken onto consideration while granting the loans to entrepreneurs and other people. These factors may cover over all profit of the concern along with its ownership part whether it is public or privately owned.

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