Business Loans Blog Posts | Page 15

A microloan is defined as a small loan that is typically for $50,000 or less. Microloans offer an alternative to traditional bank loans. These loans are for smaller amounts, so they are easier to qualify for, opening up options to small businesses that aren’t eligible for conventional loan options, either due to low revenue or lack of establishment.

You can use just about any business credit card for travel, but if you intend to charge travel purchases to your card with any regularity, you’ll want to get a business credit card that offers travel-specific rewards and benefits. And if you do significant international travel, you’ll want a business credit card that does not charge a foreign transaction fee.

Collateral is an asset used to secure a loan and ensure that the lender gets paid. The asset used as collateral is something of value that shows a lender that you’re prepared to pay off your loan. In the event that you are unable to make your loan payments, the lender can seize your collateral and sell it to cover the remainder of your loan.

High-risk business loans may have higher interest rates and shorter repayment terms. But high-risk loans also have minimal borrowing requirements and are easier to obtain than loans from traditional lenders like banks.

Sometimes called medium or long-term loans, installment loans are what most people think of when they hear the word loan. In most cases, a business that successfully applies for a term loan will receive a lump sum of cash which can then be used for business expenses. In some cases, there may be restrictions on what the money can be used for.

To get a first time business loan, you’ll need to do your research, find a potential lender, prepare your documents, and apply! Our article on first time business loans will walk you through the process in-depth.

Short-term loans and merchant cash advances are typically the easiest to get. Certain business credit cards and lines of credit may also be easy to get. One thing to note that many business loans that are fast and easy to obtain come with shorter repayment terms and higher rates and fees.

Due to their low borrowing limits, SBA Microloans are one of the easiest loans to receive. However, there are borrowing requirements in place, the application and approval process can be time-consuming, and there may be extensive documentation requirements based on the policies of the lender.

Working capital is one of the keys to running a smooth business operation. Often, it’s possible to maintain a consistent cash flow just by making smart tweaks to your business model and keeping an eye on your assets and liabilities, but there are times when you may need assistance raising working capital.

If you have questions about completing your loan application, you can always ask your SBA-approved lender. If you haven’t yet found a lender to work with, SCORE is a great resource. This nonprofit organization provides resources and services including free business mentors that can help you through every step of the process.