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Small Businesses: How To Manage Your Loans During A Recession
Understanding what a recession is and how small businesses should manage their loans during one are important steps in planning for the future. What is a Recession? A recession is a period of economic decline that lasts more than a few months, typically lasting six months or longer. It is characterized by reduced spending, unemployment,…
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How SBA Loans are Affected When Interest Rates Rise?
As interest rates continue to rise, the cost of taking out SBA loans is also increasing. With an estimated decline in loan applications of 15 percent or more, small business owners are feeling the pain in their pocketbooks as they must now pay higher costs to take out loans. When Interest Rates Increase Interest rates…
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Pros and Cons of Asset Based Loans For Your Small Business
Asset-based loans are a great financing option for small businesses who don’t have a good credit score or enough cash flow to qualify for traditional bank loans. They are secured loans, meaning that the lender has collateral—in this case, the borrower’s assets—to back them up in case of default. This makes asset-based loans a great…
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Everything You Need To Know About SBA Microloans
SBA Microloans are a great financing option for small businesses. These loans, backed by the U.S. Small Business Administration (SBA), give entrepreneurs and business owners access to capital they wouldn’t otherwise be able to obtain due to their size or limited resources. What is a Microloan? A microloan from the SBA is typically between $500…
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What are the Qualifications for A Business Line of Credit?
A business line of credit is a great way for small businesses to access short-term capital. To qualify for a business line of credit, you must have a strong business track record, good financial health, and generally meet the’s eligibility criteria such as annual revenue, length of time in business, and credit score. Performance and…
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How to Qualify for a SBA 7 (a) Loan for your Small Business?
SBA 7(a) Loans are a form of funding for small business owners and entrepreneurs. The SBA 7(a) loan program provides long-term, low-interest loans to qualified borrowers who demonstrate an ability to repay the loan within the terms of the agreement. A typical SBA 7(a) loan is used to start or expand a business venture, purchase…
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Is Merchant Cash Advance Right For Your Small Business?
A Merchant Cash Advance (MCA) is a financial solution for small businesses that provides quick access to capital. It’s a lump sum loan that is repaid from the future credit card sales of the business. The repayment rate is flexible and tailored to fit with the cash flow of your business, meaning you can pay…
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How Do Interest Rates Affect Small Businesses?
Interest rates have a significant impact on small businesses. When interest rates rise, it can become more difficult and expensive for small business owners to borrow money. This means that the cost of borrowing funds for expansion or investment in new products and services is increased. Additionally, rising interest rates can make it more difficult…
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What are the differences between Installment Loans and Revolving Credit?
The terms “installment loans” and “revolving credit” refer to two distinct types of credit facilities that businesses can use when financing their operations. An installment loan is a lump-sum loan with fixed repayment periods, while revolving credit is an ongoing line of credit with different payment schedules. Understanding the differences between these two forms of…