5 Secrets of Physician Loan Requirements That Everyone Misses

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It’s true that many banks look favorably on physicians and dentists. Everyone needs to maintain good health, and no one wants their teeth to rot.

Medical services, as we all know, can be expensive. Because such services are always in demand, banks figure doctors will have a much easier time paying back their small business loans in full compared to other kinds of businesses.

But just because common sense might tell you that a bank is your practice’s best bet for securing a business loan doesn’t mean it actually is. In fact, one of the biggest mistakes doctors make when applying for business loans is failing to understand the variety of financing options that are available to them.

Before you go ahead and apply for a physician loan for your business at a bank, here are five things you need to consider:

  1. The application process takes forever.

Your medical practice is doing well. You have a lot of revenue, but you’re anticipating an upcoming cash gap. You might think you’d be able to waltz into a bank and waltz right back out with a fistful of cash. But you’d be wrong.

Believe it or not, the business loan application process at banks can easily extend beyond 30 days. Thirty days! Who has time to wait that long?

  1. You need to provide a detailed business plan as well.

Even if your practice is doing fantastic, there’s a chance you won’t be able to repay your business loan, however small it may be.

If there’s one thing banks are good at, it’s collecting money that’s owed to them. Before they lend you any cash, they expect you to give them a thorough business plan that outlines your bank and tax records, your collateral, and your other business records. Do you have enough time (and energy) to prepare all of that?

  1. You’ll probably have to put up your personal guarantee.

Banks almost always require borrowers to put up personal guarantee. This means that in the event you default on your small business loan, the bank will hold you—and any other partners—personally liable.

In other words, should you default, the bank will be able to go after your personal assets, as well as those of your partners, until it is repaid. Or until you all are bankrupt.

  1. It doesn’t always make sense to sign on to long-term debt.

Generally speaking, banks offer long-term loans. That’s exactly what they want: The longer you’re borrowing money, the more interest the lending financial institution will accrue.

But it doesn’t always make sense to sign onto long-term debt. Sometimes physicians might need some extra cash to make payroll for two months or to cover the costs associated with office renovations, for example. In other instances, doctors need to invest money in pricey machinery and equipment which they believe will generate significant chunks of revenue down the road.

In situations like this, short-term borrowing probably makes more sense.

  1. If your practice is new, it will likely be harder to secure a loan.

For the most part, banks require businesses to submit three years of tax returns during the business loan application process. Suffice is to say that if your business is just starting out, you won’t have three years of returns to fork over. Quite simply, banks hesitate to help newer practices because they view them as riskier borrowers.

The good news is that, when it comes to financing, physicians have more than one option. Instead of going through a bank, doctors can seek alternative financiers that offer considerably more favorable rates and terms than traditional financial institutions.

The application and approval process for these kinds of physician loans is simple as can be. And you don’t have to put up any collateral, either. It doesn’t even matter if you have a bad credit score; business financing is based on the performance of your medical practice.

It doesn’t make a whole lot of sense to take out a long-term loan for what you hope will be short-term needs. Instead of risking your own collateral—and being personally reliable for the business loan in the event of default—consider applying for an unsecured doctor loan for your business.

Assuming you’re approved—and there’s virtually no reason you wouldn’t be—you’ll have the money you need to grow your practice in a matter of a few business days. What’s not to like?

How Unsecured Business Loans for Doctors Are Used

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There’s this perception that every medical practice in the world is flush with cash. That couldn’t be further from the truth.

Doctors routinely run into cash flow problems for a variety of reasons. Expenses can pile up. Sales cycles can keep expanding. Customers can be slow to pay. Insurers can keep negotiating for lower rates. The economy could force folks to second guess whether they really need to go to the doctor in the first place. The list goes on and on.

From time to time, just like all other business owners, many doctors have to scramble to find money to keep their doors open, stay in good favor with suppliers, and grow their practices.

These funds can come from a variety of places. Doctors can apply for small business loans through traditional financial institutions. They can reach out to the Small Business Administration to see whether there are any grants available. They can consult business partners to see whether those folks would like to make further investments in their practices.

Instead of spending a lot of time applying for loans or giving up even more ownership of their practices, doctors can utilize unsecured business loans, an alternative form of financing. The approval process for these kinds of loans is incredibly quick, meaning doctors can get their hands on money within a few business days—which sure beats waiting for what seems like forever for traditional loans to come through.

With the funds that come from unsecured business loans, doctors can:

1. Open additional locations.

When business is going well and the front desk is forced to schedule appointments months in advance, it might be time for a doctor to expand his or her offerings by opening up an additional location. On top of being able to appeal to a wider customer base, opening another location can also provide patients with better experiences because they won’t have to wait as long to see their doctor. If you need funds to help cover some costs associated with opening a new location, you can find them in unsecured business loans.

2. Buy another practice.

Sometimes, instead of opening another location on your own, it might make sense to buy another practice outright. For example, a nearby doctor who you have a good relationship with might be retiring. If your practices overlap and you think the other business’ financials are in good shape, you can use an unsecured business loan to help with any unforeseen costs you may incur as a result of the purchase.

3. Invest in new medical equipment.

In order to give patients the caliber of care they deserve, doctors need to have access to the latest and greatest medical equipment and tools. Sometimes, doctors will need to buy new equipment outright. Other times, something might break, and they’ll need to replace it. Depending on what you have your eye on, this new equipment can be incredibly pricey. But it’s an investment you need to nonetheless make. Unsecured business loans give you the money you need to absorb these costs.

4.Boost employees’ salaries.

Want your best workers to stick around? Boost their pay. Believe it or not, nearly 25% of employees would take a job somewhere else if it came with a 10% raise. That being the case, doctors would be wise to make sure they’re paying the members of their staff competitively. In doing so, they can rest comfortably knowing they can rely on their best employees for the foreseeable future. If you need a bit of help to cover the costs of these pay increases in the near term, turn to an unsecured business loan.

5.Pay legal fees.

Medical services, lawyers, and lawsuits seem to go hand-in-hand. Such is life. From time to time, doctors may need cash to cover unforeseen legal expenses that accrue. When you need funding fast, there’s perhaps no better financial vehicle than an unsecured business loan.

Doctors aren’t immune from cash flow problems. Just like any other business, money can get pretty tight at a medical practice—and quickly.

Luckily, when their practices’ bank accounts are dwindling, doctors can use unsecured business loans to provide the cash infusion their businesses need. The end result? A more versatile business that’s ready to provide even better care for its patients.

Where to Find the Right Fast Business Loans for Your Company

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As hard as it may be to believe, 82% of small businesses are forced to close their doors sooner or later because of cash flow problems. So first things first: If your company is running into cash flow problems, take comfort in the fact that you’re not alone. From time to time, most small businesses have to get creative in order to keep their cash flow positive. Some gimmicks small business owners might try in order to accomplish that objective include:

  • Raising prices: When prices go up, revenues can go up—assuming you don’t price a lot of your customers out.
  • Offering favorable payment terms: In an effort to get customers to settle their invoices sooner, small business owners might decide to offer discounts for early payments. This can help solve cash flow problems—but it can also cut into revenues significantly.
  • Leasing equipment and space instead of buying it: Rather than forking over huge amounts of cash to buy assets, small business owners can lease them instead, saving a ton of money in the process. Just remember that at the end of the lease, the money’s gone and you don’t own the assets.

Instead of potentially alienating some customers by raising prices or reducing revenues by offering payment discounts, many small business owners look for outside financing to secure the funds they need to solve their cash flow problems—and grow their companies.

By obtaining a small business loan, small business owners are able to reclaim control over their cash flow. In doing so, they’re able to open additional locations, target new customers or markets, develop new products, launch new marketing initiatives, buy or lease new equipment, and boost their employees’ salaries to retain top talent, among a slew of other things.

Where Can I Get a Small Business Loan?

There’s no shortage of options available to small business owners looking for business loans. They can try to secure loans through traditional financial institutions. They can also try to get loans through the Small Business Administration (SBA).

Both of these options might not be the best choice. Traditional banks, for example, don’t fund companies that haven’t been in business for at least two years. They also expect small businesses to generate $250,000 in revenue each year. Altogether, this translates into the harsh reality that banks fund fewer than half of the businesses that apply for small business loans.

On the other side of the coin, the SBA can move very slowly. You may end up securing a business loan from them sometime down the line, but when you need money today, the SBA will most assuredly not help you.

Luckily, small business owners aren’t completely out of options. The Internet has made it easier than ever before to find small business lenders that will fund them even if they don’t have the best credit scores or don’t have any collateral to put up against a loan.

By using a business loan comparison service, you can shop a seemingly endless amount of small business financing companies in a matter of a few minutes.

These companies offer all kinds of financing options, like unsecured business loans, merchant cash advances, business lines of credit, and credit card factoring. Lenders listed on consumer comparison services are all well aware that they’re competing against one another—which means you can shop with the confidence that comes with knowing you’ll get the best rates possible.

When small business owners need cash, they need it right away. If they want to continue serving their customers, they don’t have the luxury of being able to sit around waiting for money to come in.

Unlike traditional banking institutions, alternative business loan lenders don’t require small business owners to fill out mountains of paperwork. The approval process doesn’t drag on forever, either. All you have to do is fill out a few forms, shop the different financing options available to you, and choose the small business loan you think makes the most sense for your operations.

Once you’ve done that, the funds you need to grow your business will be available within a few business days. It’s really as easy as that.

When Unsecured Business Loans Can Help With Your Restaurant’s Payroll

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There’s a reason 60% of restaurants fail within the first year and 80% of them fail within five years: Being a successful restaurateur is hard work.

In addition to having to serve up tasty food and create an inviting environment, restaurant owners also have to combat an uncertain economy which makes many customers’ wallets lighter.

They also have to fight against the weather: According to a recent study, 75% of restaurants reported a 10% dip in sales during periods of exceptionally inclement weather.

There are still more variables outside their control. Take a look at Seattle, where the minimum wage was recently raised to $15.

With all these factors in mind, it comes as no surprise that restaurant owners are constantly battling cash flow. They need to make payroll, pay their bills, buy supplies and furniture, and have enough food and drink on hand to keep customers happy.

When cash flow is mismanaged at a restaurant, it’s only a matter of time before owners are forced to close their doors.

Instead of rolling the dice and hoping you’ll get lucky enough to not be crushed by the above factors, it’s worth considering whether it makes sense to be proactive and secure supplemental funding that’ll help your restaurant survive its infancy. That way, for example, you won’t have to worry about making payroll in the event a blanketing snowstorm forces you to shut your doors for a week and you have to throw out a lot of food.

Unfortunately, banks typically don’t lend new restaurants money. They prefer borrowers who have a proven history of strong revenue, because the statistics tell them those folks are more likely to pay their loans back in full.

You’re not out of luck though. Instead of trying to get a loan from a traditional financial institution—and most likely striking out—restaurant owners should seek financing from alternative lenders in the form of unsecured business loans.

Unlike secured loans which require you to put up collateral in return for financing, unsecured restaurant business loans do not—you don’t have to tie up any assets to get money.

Yes, unsecured business loans generally have slightly higher interest rates than loans issued through banks. But since banks don’t fund many restaurants, it’s still an attractive option. Plus, you’ll know the exact terms of the agreement when you sign it. Terms can’t change during the middle of a contract, so you’ll know what you’re getting into.

Unsecured restaurant loans are really easy to get—even for budding restaurant owners with bad personal credit scores. Financing is based on how well your business is performing and how much revenue it generates each month.

You have a restaurant to run, dishes to create, and a staff to manage. You can’t afford to spend a ton of time researching a slew of potential lenders. But if you want to make sure your restaurant lives to see year two and beyond, you need money, and you need it quickly.

Good news: You won’t have to fill out a billion forms and go through a long approval process to receive an unsecured restaurant business loan. You can get funding quickly and easily; money will be deposited in your account in a matter of days once you’re approved.

Running a successful restaurant involves having access to capital—it’s as simple as that. Rather than taking a chance on your funds drying up due to any of the numerous variables that kill restaurants, put yours in a position to succeed right from the start.

By applying for an unsecured business loan for your restaurant, you’re buying the peace of mind that comes with knowing you’ll always be able to pay your staff in a timely manner. They’re the people you depend on the most, after all. Without them, where would you be?

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6 Ways Working Capital Loans Can Make or Break Your Restaurant

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Running a restaurant is hard work. Just ask anyone who’s ever done it.

Restaurant owners face a ton of challenges. They can be affected by seasonality. Bad weather can force them to shut their doors. The economy can cause many folks to eat meals at home more often.

This all translates to the reality that many restaurant owners have a hard time putting together the cash they need to grow their business. When cash becomes tight enough, it can be difficult to stay open in the first place.

Luckily, restaurant owners struggling with cash flow problems aren’t completely out of luck. If you find yourself in that group, you can apply for a working capital loan and use the funding you receive on any short-term obligation that will help your restaurant grow.

When it really boils down to it, working capital loans can make or break your restaurant. Here’s why.

  1. Working capital loans help you meet payroll and pay your bills

Running a restaurant is tricky business. Every restaurant owner knows how difficult it can be to pay your employees each week and keep up with all the various bills: rent, energy, heating and cooling, garbage, water, internet, landscaping, etc.

Working capital loans give restaurant owners the peace of mind that comes with knowing they’ll be able to afford all of their obligations when bills are due. With a working capital loan, you won’t have to scramble at the end of each month to piece together the funds necessary to keep your doors open.

  1. Working capital loans allow you to renovate or relocate your restaurant

We’ve all eaten at restaurants that look like they were designed decades ago. We’ve all also eaten at newly designed restaurants that have brilliant atmospheres.

If you haven’t updated your restaurant in years, you might want to think about whether it’s time for a renovation project. Working capital loans provide you the means to afford such an undertaking.

Similarly, everyone knows that both physical location and space can be critical to the success or failure of any restaurant. If you happen to stumble across a fantastic property that’s available, you can use your working capital loan to relocate your restaurant to a more attractive (i.e., profitable) area of town.

  1. Working capital loans enable you to open additional locations

If your restaurant’s doing extremely well, you may get to the point where you eventually think about opening up another location. When done correctly, a second location can help grow your business’ bottom line significantly.

You can use a working capital loan to open up a second location when your cash is tied up in your business. If that second location takes off, you may never have cash flow problems again.

  1. Working capital loans let you buy new equipment

When’s the last time you revamped your kitchen?

Working capital loans give you the money you need to buy that new stove you’ve been eying for some time—or that bigger refrigerator you needed three years ago. When deployed correctly, new equipment helps you provide your customers a better experience every time they step foot inside your restaurant. You’re able to cook better dishes and offer more diverse options on your menu.

  1. Working capital loans ensure you won’t run out of food or drink

You can’t exactly expect to grow your business if you’re constantly running out of food and drink items on the menu. You won’t generate any revenue if you’ve got nothing to sell.

With a working capital loan, you can rest comfortably knowing that ingredients and drinks are fully stocked at all times. You’ll be able to handle even the busiest of rushes—and still offer a full dinner menu to the late-night stragglers.

  1. Working capital loans make marketing and advertising affordable

Since it can be tricky enough to pay your employees and your bills on time every week, it’s almost unfathomable for many restaurant owners to set aside any money for marketing and advertising expenses. Still, we all know that marketing works wonders for businesses—andrestaurants are no different.

Good news: Restaurant owners can use working capital loans to pay for marketing initiatives and advertising campaigns. A little money invested up front can go a long way toward growing your business over the long term.

Are you a restaurant owner looking for financing to grow your business? Working capital loans may be exactly what the doctor ordered. Get a free quote today!

How Unsecured Business Loans Can Help Grow Your Inventory

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You can’t expect to grow your small business if you don’t have enough inventory on hand.

A new restaurant, for example, probably won’t develop a great reputation if it’s constantly running out of dishes and drinks because it doesn’t have enough ingredients on hand. Similarly, brick-and-mortar retail stores are unable to generate any revenue whatsoever when their shelves are empty.

If you’re running low on inventory, shouldn’t you just use the money your business has in the bank to get more supplies?

It’s not that easy. As any small business owner will tell you, cash flow management is critical to the success of any company. When the cash river runs dry, it can be difficult, if not impossible, for small businesses to pay their bills and meet payroll. And forget about devoting resources to expand your business. Without access to cash, you can’t invest in new products, open new locations, or target new customer segments.

From time to time, many small businesses need a little help when it comes to their finances—particularly when they’re just getting started. That’s just how it is. But instead of tapping into their own paltry cash reserves, they decide it makes more sense to look for funding elsewhere. You never know when you might need money for an emergency, after all.

Unfortunately, it can be difficult to secure small business loans from traditional financial institutions, particularly when your business is newer. This problem is perhaps more pronounced when business owners have bad personal credit scores.

If you find yourself having a hard time securing small business funding through more traditional lenders, it might be time for you to look into unsecured business loans.

Whereas a lender takes title of your collateral in a secured loan, borrowers don’t need to put up any collateral to obtain an unsecured business loan . For this reason, unsecured loans tend to have slightly higher interest rates. But they’re much easier to obtain—particularly if you don’t have the best credit in the world.

Since you don’t have to put up any collateral to get an unsecured small business loan, you don’t have to worry about tying any assets to your company’s financial statements. In other words, you won’t lose your personal car if your business goes under.

Keep in mind that borrowers are more likely to get better small business loan rates when they’re planning on putting the money toward revenue-generating endeavors. By using your unsecured small business loan to build up your inventory supplies, you’re increasing the potential of your revenue stream—something which should convince lenders to give you lower rates.

One of the best parts about unsecured business loans is the fact that you get access to cash quickly. You don’t have to go through a long, drawn-out process and complete form after form after form. Sure, there’s some paperwork required (it’d be kind of crazy if there weren’t), but for the most part, you won’t have to spend that much time signing up for an unsecured business loan. The approval process is fast and easy. And once a contract’s signed, you get money in a couple of business days.

If you’re struggling to grow your business because you find that you run out of inventory on a regular basis, it might be time for you to find an unsecured business loan through an alternative lender. Then, in a matter of days, you’ll be able to acquire the inventory you need to generate more revenue and better serve your customers.

Thanks to the Internet, it’s easier than ever to find the best prices on unsecured small business loans. A few minutes of research should go a long way toward padding your company’s bottom line.

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6 Things You Need to Know About Commercial Loan Rates

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Three out of every five small businesses use loans to finance their operations at one point or another, according to Harvard Business School.

Do you find yourself in that majority? If so, here are six things you need to keep in mind before you apply for any old commercial loan for your small business:

1. Interest rates can be variable or fixed.

When shopping for a loan, it is critical to consider the kind of interest rate you’re most comfortable paying. For the most part, you have two choices:

  • A variable interest rate mirrors the market. When market interest rates go up, payments go up; when they go down, payments go down.
  • A fixed interest rate stays the same over the life of the entire loan.

Generally speaking, if you suspect interest rates will go up in the near future, you’d be better off looking for loans that have fixed interest rates. On the other hand, if you think rates will decrease, a variable interest rate may be more desirable. But be warned that your payments will shoot up if and when market interest rates increase.

For what it’s worth, studies have found that, on average, borrowers are likely to pay less interest when choosing variable interest rates. But everyone’s situation is different, and there’s no way to be certain you’d pay less by choosing a variable rate. Use the length of the loan you need and your assessment of the economy to guide your ultimate decision.

2.There are a ton of fees that are tacked onto loans.

As you begin your search for commercial financing, remember that interest rates aren’t the only numbers that matter. There are lots of fees tacked on to many loans. There’s a borrower origination fee. There are closing costs. There are underwriting fees. The list goes on and on.

Be sure to ask lenders what kinds of fees are hidden in their commercial loans. Shop around and see which lender’s fees are most reasonable.

3. Pay attention to the annual percentage rate (APR).

It’s important to shop interest rates and fee rates. But if you want the easiest apples-to-apples comparison between two different loans, look at APRs.

APRs are calculated by adding interest rates and fees together. If you have a 5% interest rate and 2% in fees, for example, you’ve got a 7% APR.

4. Your personal finances can affect your rates.

Think your personal finances don’t have any impact on whether your small business can secure a commercial loan? Think again.

Financial institutions will usually look at a small business owner’s credit history, tax returns, and personal financial statements before deciding whether to finance a company. How well you manage your personal finances can have a direct effect on the interest rates you lock down.

5. Bank loans can be particularly difficult to secure in the first place.

Even if your business is doing pretty well, it can seem impossible to secure a commercial loan from a traditional banking institution.

Banks typically won’t loan money to small businesses unless they’ve been in business for at least two years. Beyond that, businesses need to generate $250,000 in revenue annually and have positive cash flow. The business’ credit score—as well as the business owner’s personal credit score—are also taken into consideration.

All told, this means that only half of small businesses that apply for loans actually get financed by banks.

6. There’s no shortage of lending options available.

Having trouble getting a bank to sign off on a commercial loan for your small business? You certainly aren’t alone, so don’t let it discourage you. The good news is that there are tons of alternative lenders out there, and thanks to the Internet, it’s easier than ever before to connect with them.

If you’re a small business owner who’s looking to secure some financing, consider applying for a small business loan through an alternative lender. You’re likely to qualify for a loan even if you have bad credit.

Commercial loans can seem intimidating to those who aren’t familiar with them. By doing your due diligence and researching the different financing options that are available to your small business, you’ll make the right decision. Good luck!

5 Tips for Choosing the Right Business Lenders for Your Restaurant

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Unless they’re independently wealthy or have rich friends or business partners, those who open their own restaurants usually have to secure some kind of funding. There’s equipment and inventory to purchase, construction and renovation projects to cover, and wages and utilities to pay—which doesn’t include the host of other costs, like taxes, fees, and the like.

Where can funding be found?

In most cases, banks won’t be much help. Bankers are well aware that 60% of restaurantsshutter their doors within 12 months and 80% of them go under within five years. What’s more, banks usually rely on historical income data to determine whether to give out loans in the first place. This is information that most restaurants simply cannot provide. It doesn’t exist.

Most of the time, aspiring restaurateurs are forced to find funding through less traditional avenues.  Luckily, the process of tracking down that money has been made considerably easier thanks to the Internet. It’s now simple to compare many potential financiers at once.

If you need to secure funding for your restaurant, the following five tips should increase the likelihood you partner with the best business lender right off the bat.

1. Choose a lender that can put money in your hands right away.

The restaurant industry moves quickly. Owners can’t afford to delay the running  their restaurants any longer than is absolutely necessary.?

When searching for restaurant loans, look for lenders that promise to get money in your bank account within a few business days. Approvals should be fast and easy, with minimal paperwork required.

With a lender who moves money quickly on your side, you’ll be able to start satisfying your customers’ appetites a whole lot sooner.

2. Look for a lender that has a proven track record.

Instead of making a deal with the first business lender you come across, do your due diligence to make sure the lender is respectable. A quick Google search should give you an indication as to whether customers are generally satisfied with a specific company or individual.

Since securing funding can be critical to the success of your restaurant, you shouldn’t roll the dice on a company that no one’s seemed to vouch for quite yet.

3. Select a lender that prides itself on customer service.

Dealing with finances can be just as stressful in your professional life as it is in your personal one. That being the case, you don’t want to partner with a lender only to find out down the line that the company or individual financier is unbearable to deal with.

Look for companies that put their customers first and are willing to be patient, knowledgeable, and perhaps most importantly, available. You never know when you might have questions about restaurant financing. Do your best to ensure someone will pick up the phone when you do.

4. Pick a lender that offers competitive rates.

It’s one thing to find a nice lender who’s ready to fund your company quickly. It’s another thing to find a lender who can do that at a price point that makes sense for your restaurant.

When looking for loans for your restaurant, look for providers who very visibly advertise their low rates. Some financing platforms include offers from a host of financiers. This allows you to compare and contrast a bunch of lenders at once and find the best rate quickly.

5. Partner with a lender that has flexible repayment terms.

In a perfect world, you’d be able to pay your lender back on a very well-defined schedule.

But it’s nearly impossible for restaurateurs to predict sales and cash flow, particularly when they’ve just recently began serving customers. For example, the best steakhouse in town might have just opened a few months ago. But if the weather has been rather inclement, sales could suffer, making it difficult to stick to a fixed payment schedule.

Due to the unpredictable nature of the restaurant business, you should look for a lender that offers flexible repayment terms. That way, you’ll be able to select a plan that works best for your operations instead of having to figure out how to keep up with less sensible terms.

Finding a business lender for your restaurant can be a bit tricky. But it’s certainly not impossible. By partnering with the right restaurant loan provider, you’ll gain access to the funds you need to grow your business.

Bon appétit!

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How to Identify Small Business Loans for People with Bad Credit

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It’s easy for owners who have good credit to get small business loans at favorable rates.

But according to a recent report, 56% of Americans have subprime credit scores, which have historically been defined as FICO scores below 640. It’s certainly not uncommon for small business owners to find themselves in that majority.

Unfortunately, it’s a lot harder for folks with bad credit scores to secure funding and loans for their companies. Generally speaking, traditional financial institutions are considerably less likely to sign off on loans for businesses whose owners have bad credit. That’s because credit scores give a good indication of how likely someone is to settle their debts. The lower your score, the more likely a bank will think you are to default on a loan.

While it may be trickier to get a small business loan if you have bad credit, it’s not impossible. Here’s how you can secure funds despite your credit score.

1. Create a bulletproof business plan.

First things first: If you’re looking to secure funding, you need to be sure that you can convince your audience—whoever happens to be in it—about the merits of your business. To do that, you need to have a strong business plan that outlines how your company will succeed.

Business plans should include your value proposition; which customers you will target; how you will target them; what your business model is; how much money you need to get started; and when you expect to be profitable, among other things.

2. Tap into your personal network.

With a robust business plan in place, you can turn to your friends, family, and business associates to see whether any of them would be interested in financing your idea.

Be honest about your credit history and make sure they thoroughly understand the risks—and envisioned rewards—before writing you a check.

3. Take your case to the crowdfunding community.

The American crowdfunding industry is surging. While venture capitalists collectively pour $30 billion into businesses each year, investors threw upwards of $34 billion into crowdfunded projects in 2015. Phrased another way, more money was pledged to projects on platforms like Kickstarter and Indiegogo than VCs funneled into traditional Silicon Valley startups.

If you’re up for the challenge, pitch your business idea to the crowdfunding community. If your project ultimately gets supported, you can give your early investors different rewards depending on their particular level of support.

4. Consider alternative financing sources.

It’s easier than ever before to explore small business financing options online. Thanks to the rise of platforms that match lenders with those seeking funding, small business owners with bad credit are able to secure loans in a matter of days.

Many of these lenders will finance businesses owned by folks with bad credit based on how well their companies are performing. These loans don’t require collateral, meaning your business won’t have to fork over its assets in the event you default.

5. Apply for grants.

They might be hard to secure, but private foundations, nonprofit organizations, and government agencies offer small business grants. They do exist. For example, there are specific business grants for U.S. veterans. There are also small business grants for women. If you’ve got the time, it couldn’t hurt to apply for relevant grants.

6. Take steps to rebuild your credit.

Though you will likely be able to secure small business loans via alternative lenders even if you have bad credit, you can’t run away from your credit score forever.

There’s no better time than the present to begin rebuilding your credit score. To do that:

  • Pay your bills on time. Your payment history accounts for 35% of your credit score.
  • Ask someone (a friend or family member) to let you get a credit card on their account, and pay that person on time each month. This’ll help build your credit history.
  • Keep your credit card balances low. Your credit card utilization rate is the second most important factor in the credit score equation.
  • Don’t close credit cards. You’ll hurt the length of your credit history, adversely impacting your score.
  • Stay on top of your credit scores with free tools like Credit Karma. Don’t be surprised.

After rebuilding your credit score, you should have an easier time securing a small business loan in the future. Good luck!

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Why Business Loans For Medical Practices Are Needed And How To Locate The Best Ones

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In the world of business today, no matter which sector of the economy your business is based in, you are going to need financing at one point or another. Whether you are in the food industry and need small business loans for your restaurant or in the health care industry and need financing of a medical nature, knowing what you need and how to get it is going to be crucial for your business. There are a number of reasons that physicians and other health care professionals take out medical practice loans and this is part of what we want to focus on right now. We will determine what these loans are, what they are used for, who takes them out, where you can find the right ones for your needs and the best way to go about getting the best deal on them. By the end, you should have a far fuller understanding of business loans medical practices and know more about how to get exactly the right financing for your needs. Let’s get started learning more.!

First Off, What Are Medical Practice Loans?

This type of loan is relatively self-explanatory, but for the sake of clarity we will look deeper into the exact definition. To start with, medical practice loans can be taken out either for those who are starting a new practice or who are expanding one that they currently have. Generally, these loans are used to do such things as purchase necessary medical equipment, cover day to day operating expenses, fund marketing to find new patients and pay those who are employed by the practice itself. In short, this is simply a small business loan that is geared to the specific needs that a medical practice has. That is really all there is to it. These loans can come from banks or other lenders and some medical practices will even turn to options such as credit card processing loans to seek an alternative to a more complex process of getting a traditional bank loan. Really, there are a wide range of options out there which can work well for a medical practice.

Who Uses Medical Practice Loans and Why?

As mentioned earlier, these loans are taken out by doctors and other health care professionals in order to either fund the start of their business or, perhaps more commonly, to keep the cash flow of their current practice healthy. Generally speaking, unsecured business loans are going to be the easiest to get and these are what most of those involved in a medical practice are going to opt for. The process tends to be simpler and more straightforward. There are a variety of reasons that such loans may be taken out, ranging from expanding a practice with a new marketing campaign to upgrading equipment and tools used by the practice to bringing in a new partner and doing the work to promote that professional’s services which are a new feature the practice offers. There are nearly as many reasons to take out this kind of loan as there are medical practices operating today.

Where Can Medical Practice Business Loans Be Found Today?

Banks are where most people will first think to go when they need a loan for their medical practice, but this is not always the smartest move. After the credit crunch of 2008, getting a loan has become very tough and it could be a far smarter decision to look into alternative sources of capital that can be obtained more easily. Choices such as accounts receivable factoring, merchant account cash advances and other choices might not be the traditional route for those in health care, but these days this is one sector that has to be savvy in order to stay afloat. Rising medical costs mean patients are often holding back and not seeking care until it is absolutely crucial. Malpractice insurance premiums continue to skyrocket affecting all medical professionals either directly or indirectly. Those that can find more efficient ways of doing business can lower the costs to the patient and have a key advantage in their markets that can assist them in attracting more business.

What is the Best Way to Shop for Medical Practice Financing in Today’s Economy?

For those that want to see what their options are for medical practice financing really should look for a source of quotes on a website like SmallBusinessLoanRates.com. These offers can be compared to quickly and easily locate the best deal for their needs. This is a far quicker and simpler route to finding the perfect fit in terms of a lender and a loan solution.

Finding Out About Factoring Based on Future Credit Card Receivables In Today’s Market

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All businesses today need to maintain a good cash flow and to do this, they often have to turn to lenders that can help them out. In the past, there were banks that would do this, but the market has shifted and this is why so many companies are now exploring options other than a standard bank loan. In today’s market, many can use factoring based on future credit card receivables to get the cash flow they need a lot faster than they might get it otherwise. We are going to look more closely at this type of funding and get an idea of what it is about and what it has to offer. We will also look at which businesses benefit most from this type of funding, as well as how to choose the right financing company for your particular needs. This way, you will be well armed to decide whether or not this is funding you can use right now and, if so, where you ought to look to find it. Let’s get started!

 

What is Credit Card Receivables Factoring All About?

 

It is important that we make a distinction at this point because some funding products bear this name, yet they are not exactly factoring. You may hear or see terms such as accounts receivable factoring or invoice financing and these are the most common options out there. While they are not credit card receivables factoring per say, they are sometimes called this and that is not far from the truth. Factoring involves giving loans against invoices that a company already has coming in where as financing based on future credit card sales expected is different. The only real difference is in how the lender decides whether or not they are going to give you the money you are seeking. In a pure factoring situation, you will be judged on invoices. All you really need to do is look closely at what the lender is offering you to see the difference because both of these solutions can work.

 

Who Can Use Factoring Based on Future Credit Card Receivables to Their Advantage?

 

The short answer here is that any company which accepts payments via credit card can benefit from this kind of funding. However, as with most short answers, a few details are missing. You will normally need to have a credit score that is around 500 or so in order to be approved by the majority of financing companies, but there are some financing companies who are willing to take on a small business that they still feel will be safe to lend to even with a lower credit score. This is why you want to make sure you speak with someone at the factoring company and see what they are looking for in a borrower and what you can do to meet their guidelines. Once you get an idea of what they are looking for, then you can decide if you could use the money to do some repairs, pay off a debt or buy more inventory. In many cases, this is the easiest way to get money for those types of situations and this is what has put factoring on top when it comes to easy cash flow solutions that are good for a variety of businesses.

 

Why Credit Card Receivables Financing is Better Than Other Funding Types

 

As mentioned earlier, one of the strong points with this kind of lending is that you are not going to have to wait a long time to get your money. That is definitely a wonderful feature, but you also want to take into account that you can usually get approved by one of these lenders with a lot fewer hurdles than what you would face from a bank or other type of lending institution that is not using your credit card account receivables to judge whether or not you are a good candidate for their offerings. You will find that this is a simple and fast solution that generally gets you the money you need with two weeks or less.

 

Examine Credit Card Receivables Factoring Providers Before Deciding

 

As with any lending situation, shopping around for the best deal on credit card receivables factoring is a great way to get better terms or lower interest rates. You will find that this is going to be simpler to do with the web today. You can find sites like www.smallbusinessloanrates.com that let you compare funding offers and decide which provider you want to work with. That is one very simple way to make your decision making process simpler and make sure that you get the best terms for your business.

Essential Things To Know About Business Loans & Alternate Types Of Financing

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In this article by Sam Zastrow on B2C, he goes into social media tools and the strategies to use them correctly so you can get the most out of them. As always, Read, Comment, Share and Enjoy!

By Sam Zastrow (Business 2 Community)
June 19, 2012

Top Social Media NetworksIf you’re having a tough time figuring out how to implement and use social media for your business, you’re not alone. Social media is a fairly new and unexplored marketing platform for most folks. Even those who use social media regularly are forced to constantly adapt as Facebook, Twitter and the like roll out changes several times a year and new marketing arenas spring up left and right. Just in the last year, we’ve seen Facebook roll out its Timeline feature, Twitter enhance its brand pages and Pinterest marketing and even Instagram marketing become viable inbound marketing cogs.

But regardless of your personal experience with social media, there are a few things to keep in mind when deciding how to use it in part of your business’ marketing plan.

  1. Adjust your expectations. In most cases, social media sits firmly at the top of the sales funnel. People don’t log into Facebook or check their Twitter feed looking to buy something, so don’t try to use these channels for that purpose. Social media is all about discovering or familiarizing oneself with a brand. You can find and nurture leads with social media, but it’s not a medium for direct sales.
  2. Decide when and where to post. If you don’t have time to use all of the social outlets out there (and who does, really?), you’ll need to choose your media. Twitter is great for non-visual marketing and for PR monitoring. Facebook, Pinterest and Instagram are great for visuals (you can even use coupons on Facebook now). Google+ isn’t as hot right now as other platforms, but it’s great for niche marketing and it’s growing steadily.
    You’ll also need to pick a time to schedule your posts. Hubspot’s Dan Zarrella has spent a good chunk of the last two years looking at optimal times to post to social media. His webinar on the subject is available here, but you should also be sure to do some timing-based testing of your own. When people like to interact with your brand? That’s when you should be posting.
  3. Analyze. Social media analytics can be tricky because you need to know three things: ifweb traffic is driving social media, which social medium web traffic it’s coming from and which individual post it’s coming from. You have a couple of options here. You could use UTM tags, which specify the source of social media web traffic right in the URL, or you could purchase a HubSpot subscription and use their analytics without the use of UTM tags.
  4. Guide key followers down the sales funnel. Without question, the vast majority of your brand’s social media followers will never be your customers. But that doesn’t mean you shouldn’t devote resources to figuring out with ones might. Create a database with information on folks who interact with your brand frequently or who you’ve identified as likely customers. Try to move these folks down the sales funnel by targeting them in your posts.

How does your company use social media to attract customers? What ways has social media changed your marketing plan? Let us know in the comments section below.