Small Business Loans Startup
Term Loan Program
For Small Business Loans Startups, term loans are the most common form of business funding. You get a lump sum of cash upfront, which you then repay with interest over a predetermined period. (More)
Business lines of credit
A business line of credit provides access to funds up to your credit limit, and you pay interest only on the money you’ve drawn. It can provide more flexibility than a term loan. (More)
Purchase Order Financing
Purchase order financing is a way for businesses to get the cash they need to pay for inventory and supplies before they receive payment from their customers. The financing company pays for the inventory directly and the supplier sends the product to the customer.. (More)
Working Capital and Cash Advance
A working capital advance (also known as a Business Cash Advance or Merchant Cash Advance) is not considered a loan. It is an advance of cash on your future credit card receivables. (More)
Business Equipment Financing And Equipment Leasing
Equipment loans help you buy equipment for your business. An equipment loan’s term typically is matched up with the expected life span of the equipment, and the equipment serves as collateral for the loan. (More)
Invoice factoring
Let’s say your small business loans startup capital is tied up in unpaid customer invoices, which are typically paid in 60 days. If you need cash now, you can get money for those unpaid invoices through invoice factoring. (More)
Questions for qualification preparation
Please review the questions below, which will require your response during your qualification process
HOW MUCH MONEY DO YOU NEED?
While this question may seem obvious, it’s sometimes the obvious questions that prove most difficult to answer. A lender won’t ask you how much money you want—they’ll press you for what you need. Lending money is a cautious, prudent, conservative sort of business. Lenders want to see that, where finances are concerned, your business is the same. Ideally, you should be able to show a lender that you’ve thought this question through to the last cent, that you’re borrowing only what you need.
WHAT DOES YOUR CREDIT PROFILE LOOK LIKE?
This one’s important because it can make or break whether or not a lender will even ask the next 4 questions. Depending on the lender, they may pull both your personal and business credit reports or scores. If these are both solid, they’ll move onto the next questions. If you have derogatory marks on your credit report, they may ask about those as well.
HOW WILL YOU USE THE MONEY?
This question is really about how you’ll use the money to build your business. If you need to buy a truck, for example, it won’t be enough to simply say you’ll use the money to buy a truck. You should be able to explain how a truck is integral to your small business.
HOW WILL YOU REPAY THE LOAN?
You will repay the loan with the proceeds of your booming small business, of course. But a lender will need more assurance than that. They’ll want to see that you have enough assets, savings and personal collateral to (a) survive the ups and downs of business life and (b) still repay the loan. They may ask if you have current or past loans, any outstanding business debts, and they will likely want to take a look at your previous business or personal tax returns.
DOES YOUR BUSINESS HAVE THE ABILITY TO MAKE THE PAYMENTS REQUIRED UNDER THE LOAN?
For an existing business, proof of solid cash flow sufficient to the terms of the loan will go a long way towards securing the loan. A lender may ask to see a balance sheet and profit and loss statement from the previous year. A new business owner’s best bet is to show that they’ve been profitable in a comparable business venture in the past, or have strong expertise and have done their research in the particular industry of the business.
CAN YOU PUT UP ANY COLLATERAL?
Collateral is something (such as a house or inventory) you pledge as security for the loan in the event that you cannot repay it. If you don’t repay the loan, your lender takes the collateral. Collateral will be extremely important if you are hoping to secure a bank or SBA loan. Other alternative lenders may not ask for collateral, but they may ask for a personal guarantee on the loan. With a personal guarantee, you agree to be personally responsible for the debt if worse comes to worst and your business is forced to default. Unlike collateral, a personal guarantee is not tied to a particular asset, however, it does put the business owner in a tough spot to pay back the loan should the business not pan out as expected.
Address
99 Northfield Ave., Suite 7
West Orange, NJ 07052
info@getmorelocalreviews.com
Small Business Loans Start Capital is available..