Getting a Small Business Loan Info: Understanding the Options and Increasing Your Chance of Approval

In order to be successful, any business needs a committed owner, strong concept, realistic goals, strategy, and financing. Using your own money is usually a wise option, but the problem with most new business owners is that they don’t have their own money. The only real option is to look into getting a small business loan. Financing is typically categorized into a couple of different options, such as debt and equity financing.

The traditional route of getting a business loan from a bank or financial institution is not for everyone – especially if you lack a business credit history and your own personal credit history isn’t all that great.

However, if you’ve had a business going for at least two years, you’ll have a better chance of getting approved for a long from a bank. Even if you are a start-up, there might be options for you to get a secured loan if you have some type of collateral. Don’t forget about credit cards, either. It can be beneficial for a small business to establish a line of credit with a financial institution as the company grows as a means to help manage cash flow, just as long as you make payments on time.

Increase Your Chances of Getting a Small Business Loan

To really increase your chances of getting approved, demonstrate how you intend to use the funds. Any potential investor or lender will absolutely want an understanding of why you are looking for funds, how you intend to use the funds, and how you plan to pay them back. Break down the things you will need money for. Don’t just ask for $10,000. Ask for $5,000 for inventory, $4,500 for equipment, and $500 for advertising. Explain your strategy on how you will get profits and make returns on your investment so that you will be in a good position to pay them back.

In addition to getting a small business loan, it might be worth consideration alternative lenders as well, such as online lenders, angel investors, crowdfunding, etc.

ALWAYS be upfront and honest. When filling out any type of application form, be completely honest and try to be as accurate as possible. All of the details regarding your business should be consistent across the board: the loan application itself, official documents and records, social media accounts, and so forth. One single type could actually hurt your chances.

The best place online to try getting a small business loan is with US Business Funding. All you have to do is use the free loan calculator to receive an instant, FREE estimate, and then you can apply for funding through a secure website within minutes. An agent will then get in contact with you to help you understand what to do next.

Hiring the Right Web Design Company: A Simple Guide

Why the Need for Good Website Design?

For small business owners, website design matters hugely. Choosing a good designer means more than just getting a pretty web page. It is a vital aspect of the business and thus a crucial strategic decision. It is well known that the quality of the website can boost awareness and present the business as proficient and reliable. A good website design can help bring in more business and a bad would do the opposite, meaning drive away potential clientele. Some businesses are based on their web presence and hence the need to make a great impact on visitors to help with growth. Choosing the right service provider is key to getting the absolute best websites in order to make a great impression. But first, let’s see what makes up the web design company and its team.

Know the team!

An able group of professionals helps manage and deliver various parts of projects for clientele and as per their needs. A typical team would comprise of the following members.

  • Graphics/ Web Designer

These professionals are basically responsible for designs of a web page and all its aesthetics namely, layout, graphics, colors and where the text would be located. They are also responsible for how pages are crosslinked and navigated in.

  • Programmer/ Web Developer

The ones that are responsible for coding on the site. They help build and execute advanced web services apps that help with back-end services for visitors like tech support and after-sales help desks.

  • Business Development

Although unrelated to the web but vital for business promotion, marketing professional looks after client relations and visitations. Just like in every business, they bring in more clientele.

  • Accountant/ Finance Expert

Obviously, to manage all the accounts of the business along with banking and assigned to taxation-related duties. Again, not has anything to do with the actual development but handles internal needs of the web design company.

Understanding your Needs!

Before dashing to the door to hiring an expert, its good to understand what you need and what you want exactly. As per trends, and a realistic budget, of course, here’s what a typical website should have: –

  • Homepage
  • Services / Products
  • About us
  • News & Alerts
  • Contact us
  • Blog

A small business owner would have these six basic sections to make a website that would help them make an impactful presence. But, there are other sections with specialized services that cost and it’s totally up to a business and what it requires. Manufacturers, for example, use these back-end services by to coordinate with vendors, clients and distributorships so have advanced websites that carry powerful encryption. Some businesses do have websites who need to upgrade them as they may not be mobile-friendly and old. Revamping them with a blog section and a few more products would give it a facelift. Why pay a web design company more if you already have a basic structure? For effective transmission of your requirement, browse the web to present a sample of what you want.

What to Notice in a Web Design Company!

The first thing to notice is their experience. Experience can be an indication of their capabilities and scope of work. browsing their website, one can easily ascertain the depth of their work and some service providers even display their accomplishments proudly. The team profile, if available, is also an excellent way to understand the kind of creative drive is behind the company. And, always be clear about rates. Their contact us page is a convenient means of requesting a quote. Then again, going over and visiting their office would also help decide if they are the right professionals for the job!

Business Funding Has Gone Easy for Everyone

There was a time when the majority of the people didn’t get financial aid from any banks or money lenders. But currently, a financial trend has changed. You can get financial aid from small finance companies. What is the source of small finance funds? The key sources are credit unions and banks. They provide such loans to individuals and partners. Today even the housewives establish their business through cottage industry. Women are skillful in nature. For example, some women are good in stitching, whereas others can make excellent pickle at home. Some women open their own beauty parlor as their hobby. You must follow some truths while applying for small business money:

Vital facts for small business funding application

Every individual makes mistakes. It is advisable to know the mistakes on time and fix it. You should avoid some factors while smearing for small business funding. Following are few points to consider.

Not paying the increased amount –

Sometimes people have a trend of not paying the sum that has increased. For example, if you have taken a loan and the semi went higher due to increase in tax and vat. People avoid excess amount. This is an unhealthy practice. The lenders will put a negative impression.

No scope for credit advance –

There are some emergency situations at your business establishment. For example, you suddenly need to repair your office room. If you don’t have cash at that time, it will be very difficult. You need to take out the credit in advance.

You have to be very careful while applying for the loan for your small business. You need to care about many things while applying for the loans s that it will not get rejected in any case.

Negligence of own credit –

Firms dealing with funds have become fairly elastic today. But, it is always better to keep yourself flawless. If you have the credit card, make the payment before the due date on a regular basis. This will be a plus point for you when the lenders evaluate your financial statements. But, sometimes you end up will no repayment of credit card bill. You must avoid it. Otherwise, it will provide bad influence on a financial profile.

Business and personal finances mix up –

The lending institutions will be eager to know your business success. Whether you are in loss or gain is what they will find out. Now if you mix both personal and business finances, they won’t get the proper idea. Your case may be rejected. One of the common mistakes, which many individuals make, is mixing up of personal finance and business finance. But this is not the right step to get a good deal for your small business.

Securing a Small Business Loan

Insufficient funding is one of the top reasons why 80% of businesses fail within the first year and a half. As a business owner, not only do you have to cover all operating expenses, but the time and effort needed to succeed means you will almost certainly have to bid farewell to your day job and regular pay checks. Unless you’ve saved up enough to pay for everything for at least 18 months, you will probably have to find other sources of funding.

However, here we encounter another problem. A recent survey cited by the Credit Union Times showed that only about one-fifth of small business owners – incidentally about the same rate of successful businesses – rely on a small business loan. The survey showed that 62% were fearful of taking on a loan and almost one-fourth of respondents think they would not be approved for one. A Harvard Business School working paper by Karen Mills (Administrator of the US Small Business Administration until 2013) showed even more discouraging statistics. Banks continue to apply measures that restrict small business lending since the financial crisis hit, since such loans are generally always riskier than those to large businesses. Loans amounting to $1 million or less – the domain of small businesses – have gone down 21% since 2008. These loans made up half of all bank loans in 1995, but only 30% in 2012.

So what can you do to have a better chance at securing a loan?

As the saying goes, “The devil is in the details.” Given the stricter requirements of banks, you will need to come up with a very convincing plan that shows your business will truly make a profit. Each number presented has to be supported by hard evidence or at least some realistic projections backed by in-depth research. There must also be a clear plan as to where the money will go and how it will influence your business’s success.

Aside from this, your entire personal finances will also be scrutinized, so make sure your taxes, mortgages, credit cards, assets and liabilities, and even your credentials are all spotless and in order.

The bottom line is, if you believe in your business idea and do the necessary due diligence in coming up with a sound budget and business plan, there should be no reason to be denied a small business loan. Otherwise, you may want to reconsider quitting your day job.

How To Get Emergency Business Loans

Have a business idea and want to see it come to reality as quickly as possible? Then, you are right in need of Emergency Business loans. Running out of time on execution and can’t wait for regular verifications, sanctions, etc. for a business loan are some of the reasons why you end up taking emergency funds for your business. There may be any other form of emergency in your company like underestimation of a project’s budget overestimating its profit, losing a client etc.

Facts about Emergency loans for your Business

Availing an Emergency business loan does not affect your credit score, but while applying your personal guarantee is a must. Approval of emergency business loans hardly takes a day. After approval the transfer of funds happens within 1-8 business days. Unlike bank loans your credit history is not desired when you are applying for Emergency business loans. There is a threshold revenue that a business is to have, to avail an emergency loan for his/her business. Even though credit scores are not required they sometimes require a complete history of the business within the past year or some specified time period.

Alternatives

Sometimes emergency business loans might come with a higher rate of interests on the business loans as compared to the loans offered by a bank. This may lead you to search for other options for getting money for establishing your business or keeping it alive or in case of any other emergency.

Two of these many alternatives include:

· Line of Credit

If you happen to know the bank well, which handles your business account or you have a good relationship with them, then you can ask for a line of credit. Even though this is not an immediate approval of loan, it may turn out to be useful for funding your businesses future emergencies at a lower interest rates than those offered by emergency business loan providers.

· Friends or family

Even though people think lending money from your close friends or relatives ruin the bonds of relationship, it is advisable to ask for funds from them if all other options are ruled out and you know that the problem can definitely be solved with very little risk. These may be tricky to get but once you receive the funds, then repayment is something that can be adjusted at times.

It is a known fact that emergency money lenders are definitely going to charge a high rate of interest when no one else is willing to provide a business loan in such emergencies. And this is something you don’t want to have at the moment when your business might already be struggling for its survival. Go for this only when you are confident enough that with this loan your business will flourish and it will generate enough revenue to repay the lender on time.

If your company is tough and has a solid history to give to the moneylenders then obtaining an emergency loan won’t be as difficult as it would have been otherwise. Once you receive the funds, all you need to do is work hard and repay it in time