Business Loans Blog Posts | Page 5

On the low end, you have loans that are made at the prime rate and subsidized loans like Economic Injury Disaster Loans (EIDL). The former is a fluctuating rate reported by the Wall Street Journal, which itself is based on the Federal Reserve’s federal funds rate. If you have pristine credit and a good relationship with your bank, you might be able to get a prime rate loan.

The EIDL is a low-interest, long-term loan for small business owners that have been impacted by COVID. These loans offer low, fixed rates and repayment terms up to 30 years. Businesses with fewer than 500 employees, certain nonprofits, and agricultural businesses can apply and be approved if they meet all criteria set by the SBA.

Your original business plan may not have called for seeking a same-day business loan from an alternative lender, but, as you know, things happen. You may not have planned for certain challenges, but when the unexpected happens, it’s possible to get a quick business loan — perhaps even a same-day business loan. Read on for a look at the most reputable same-day lenders.

Revenue-based financing grants investors a regular, ongoing percentage of a company’s income in exchange for a cash infusion. The investors receive scheduled payments until they’ve collected an agreed-upon amount of money from the new business.

Seed funding can be any amount of money, from any source, that helps move a business from the conceptual phase to the implementation phase. Seed funding is typically a small amount of money relative to the scope of the business proposal and often comes from personal sources like family and friends.

Monthly Recurring Revenue (MRR) lines of credit is a form of venture debt designed for a very specific kind of tech business that offers subscription memberships for software that it provides as a service (Saas).

You will need to apply for forgiveness through the lender that serviced your PPP loan, not the SBA itself. To do this, you’ll need to submit one of the three available forgiveness application forms, depending on your circumstances: SBA Form 3508, SBA Form 3508S, or SBA Form 3508EZ.

Startup accelerator programs are offered by an organization, usually a non-profit, to help get a startup off the ground. They do this by combining aspects of education, group collaboration, mentorship, and financing.

Every business owner probably dreams of regular, stable, month-to-month cash flow, with spare cash on hand to cover any expenses that might arise. The reality for most businesses, of course, is that sales are often seasonal. One way to bridge the famines between the feasts is to use seasonal financing to normalize your cash flow.

While the words might sound confusing or even intimidating, a business incubator could potentially be one of the greatest resources to help you launch your startup. While not for everyone, it’s important to understand what a business incubator does and how it can help your startup take off with an abundance of resources, from financing to shared office space.