Small Business Blog Posts | Page 20

Because it is so difficult for startups to qualify for bank loans, many startup owners turn to SBA programs for their funding needs. A government guarantee on loans takes some of the risk off of lenders while providing startup and small business owners with rates and terms that are competitive with bank loans.

A commercial construction loan is a type of loan that is used to finance the costs associated with the construction or renovation of a commercial building. The funds from a construction loan can be used to pay for labor and materials for the construction of a new property, the purchase and development of land for a new commercial property, or the renovations of existing properties.

Credit score requirements for business loans vary by lender, borrowing amount, and type of loan. Borrowers with excellent scores and a solid credit history will have more options for low-interest, long-term loans. Borrowers with fair to poor credit scores may find the funding they need with alternative lenders that offer short-term, high-interest business loans.

To obtain a small business loan, lenders often require the borrower to pay a percentage out of pocket as a down payment. But why do you have to pay money upfront when you need to borrow money? Is there a way around this apparent catch-22? What loans require down payments, and what are your options if you don’t have the funds to pay it?

Some loans, such as long-term installment loans and SBA loans, are difficult to qualify for and have lengthy application and approval processes. However, there are other loans like short-term loans, lines of credit, and merchant cash advances that are easier to qualify for, even if you have a short time in business, low revenue, or poor credit.

Getting a commercial real estate loan takes time, but it doesn’t have to be difficult. By shopping around, knowing what rates and terms to look for, and working with a reputable lender, the process for obtaining a loan can go smoothly, providing business owners with the funding they need to grow their businesses.

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.

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.

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.