Business Loans Blog Posts | Page 19

installment loans

The Merchant’s Guide To Installment Loans

If you need business financing, an installment loan is probably the first type of loan you think of. As some of the most common and straightforward type of loans available, installment loans are a popular type of business financing. Also commonly referred to as term loans, installment loans can be useful for many business financing needs—from […]

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Mar 11, 2020 Filed under: Business Loans
What is a merchant cash advance?

What Is A Merchant Cash Advance For Business Funding?

A merchant cash advance is a sales agreement where the merchant (the “seller”) is selling their future revenue at a discount to the merchant cash advance company (the “buyer”). Because merchant cash advances are sales agreements, they generally aren’t covered by usury laws that govern loans. This is where they get their dubious reputation. The effective APRs of merchant cash advances can easily crawl into the triple digits.

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Apr 28, 2022 Filed under: Business Loans, Merchant Cash Advance
Loan to value ratio

Loan-To-Value Ratio Guide

In addition to any background checks the hard money lender may decide to factor in, the property’s qualities will be considered. Properties in booming real estate markets and “up-and-coming” neighborhoods may push the lender’s LTV tolerance close to 75%, often considered the upper limit for hard money. In contrast, a property in a poor market, or a remote one, will push the maximum LTV closer to zero.

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Jan 31, 2024 Filed under: Business Loans

Hard VS Soft Credit Inquiries

Having good credit is a very important factor to getting a business loan. The higher your credit, the more loans you’ll have access to, and the better rates you’ll be offered. Frustrating as it may be, applying for a business loan (or other sources of funding) can have a negative effect on your credit. Knowing […]

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Mar 11, 2020 Filed under: Business Loans, Merchant Cash Advance

What Is A Factor Rate On Small Business Financing? How To Understand The Cost Of Borrowing

Although factor rates and interest rates appear similar, there are some important differences which potential borrowers need to be aware of. Fixed fees (the fee determined by a factor rate) are only calculated once, before the loan is issued. The fee will stay the same, regardless of how long repayment takes. On the other hand, interest rates are accrued over time—the longer your loan is outstanding, the more fees will build up. Read on for more about the difference between factor rates and interest rates.

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Feb 26, 2020 Filed under: Business Loans, Merchant Cash Advance

The Best Minority Business Loans

For minorities seeking business loans, the normal challenges of financing can be compounded by lending biases, systemic racism, language barriers, and geographical positioning in communities that have been written-off by many lenders. It’s not all bad news, though. Many institutions and organizations have programs designed to circumvent these issues and get money into the hands of minority entrepreneurs.

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Apr 25, 2023 Filed under: Business Loans

What Is A Lease Line Of Credit?

We often think in terms of insurance for expensive items we already own, but when it comes to anticipated future expenses, we usually only think in terms of savings. Businesses that expect to replace equipment in the near future, however, can prepare for those expenses in another way: by seeking a lease line of credit. […]

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Jan 9, 2020 Filed under: Business Loans, Equipment Financing