New to Working Capital Loans? Here’s What You Need to Know

When money is tight, small business owners have a variety of financing options available to them. They can sell equity to investors, they can apply for small business loans through the SBA, or they can try to secure funding through traditional financial institutions.

But not all business owners are keen on the idea of selling stakes in their companies. Additionally, many business owners don’t have the patience required to secure funding via the SBA. And even if they were okay with filling out mountains of paperwork, small business owners—particularly those with bad credit and those who haven’t been in business that long—are unlikely to have banking institutions view their applications favorably.

Luckily, another option for outside financing is found in the form of working capital loans.

Unlike most traditional business loans, the approval process for working capital loans is lightning fast. There’s a minimal amount of paperwork required, and even folks with bad credit scores can secure funding within a few business days. Business owners also don’t have to put up any collateral, nor do they have to make any personal guarantees to secure funding. So if for whatever reason your small business is unable to repay a working capital loan, you won’t have to worry about putting your personal assets in jeopardy.

Working capital loans are meant to cover expenses in the near term. So while you shouldn’t use a working capital loan to put a down payment on a piece of real estate, you can use the money to:

  • Meet payroll. You can’t expect to keep your doors open if you don’t have money to pay your hardworking staff. You can use a working capital loan to ensure you remain current with payroll—which means you’ll be able to continue to rely on your employees.
  • Get more inventory and supplies. A restaurant owner, for example, can’t expect to grow his or her business while constantly running out of food and drink. In this light, working capital loans can be used to ensure businesses have enough inventory on hand to meet customer demand.
  • Pay rent and other bills. Both your landlord and the electric company won’t be too happy if you don’t pay your bills on time. Working capital loans give small business owners the money they need to ensure their accounts don’t become delinquent.
  • Invest in new equipment. From time to time, small business owners will need to invest in new tools and equipment to stay competitive. Restaurateurs need new refrigerators, physicians need new exam tables, and marketers need new technology. Use the money from a working capital loan to finance these kinds of crucial acquisitions.
  • Open an additional store or restaurant. When business is going well, sometimes it makes sense to expand to another physical location. Working capital loans help you cover the costs associated with securing a new spot and getting it ready for business.
  • Renovate an existing location. For the most part, you can’t expect to continue to attract customers to your store if it looks like it was designed decades ago. Use a working capital loan to modernize your physical locations.
  • Launch a new marketing campaign. To grow your business, you need to reach out to your customers—at least every now and again. It can be hard, however, to find enough money to set aside specifically for marketing. Instead of kicking the can down the road and telling yourself you’ll get around to it eventually, you can use a working capital loan to finance your new marketing initiatives today.
  • Cover miscellaneous expenses. You never know when a customer might accidentallydrive through your front window or when an employee might clumsily knock over a laptop, breaking it. Working capital loans provide the funds you need to absorb any kind of unpredictable expenses like these.

Thanks to consumer comparison services, it’s easier than ever for small business owners to find working capital loan lenders. You can search many lenders at once, making it incredibly simple to find the best quote for your business—and quickly.

Quite simply, working capital loans give small business owners the peace of mind that comes with knowing they will be able to invest in growing their operations while also being able to stomach any unforeseen expenses that may materialize. What’s not to like?

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How Emergency Business Loans Can Keep Your Company Afloat

Even when things are going as good as they possibly can, there are still times when the most insightful and prepared business owners are faced with cash shortages.

A huge client could decide to stop doing business with you. The cost of your supplies could unexpectedly shoot up overnight. You might have a stack of invoices that your customers just don’t seem to want to pay.

You need cash to run your business—it’s as simple as that. So when you’re faced with a cash shortage, you have to act.

You could raise your prices. You could shop for new vendors to see whether better deals can be found. You could try to find a cheaper office or store to rent.

Instead of risking the ire of your customers or spending a lot of time searching for better prices you may never find, you can also use small business loans to solve your cash flow problems.

Great news: You don’t have to go to the bank to get a loan, either.

Thanks to the internet, it’s easier than ever to match lenders with borrowers. Small business owners can use business loan comparison services to shop quotes from many would-be financiers in one fell swoop. Once you find a quote you like and are approved for a small business loan, funds are deposited into your company’s bank account within a few business days.

If your business is light on cash, you may be a prime candidate for an emergency business loan. Once the funds from the loan are secured, there are a number of things you can do to keep your business afloat. Here are some of them.

  1. Buy new equipment.

Restaurant owners might need new ovens. Doctors might need new exam tables. Marketing companies might need new computers and subscriptions to various platforms. Whatever the case may be, emergency business loans can be used to acquire new equipment and tools necessary to grow your business.

  1. Hire additional employees.

Is your company growing at a fast pace? You may need to hire additional employees from time to time. Once those folks get to work, your business will generate more revenue. If you don’t have cash on hand to hire additional employees right this second, you can use an emergency business loan to get the funds you need to afford new blood.

  1. Pay bills during slow times.

For a variety of reasons, business can slow down substantially—regardless of industry. These things happen. Unfortunately, your suppliers and vendors don’t give you a break when your revenues fall. Get a small business loan, and you’ll have a nice cushion that gives you the peace of mind that comes with knowing you can pay all of your bills on time.

  1. Open a new location in a new market.

Opening additional offices or stores is a great way to grow your customer base. But it can be pricey. Don’t let your lack of cash hinder the growth of your business. Get a small business loan, and you’ll be able to cover the costs associated with finding a new place, renovating it, and hiring additional staff.

  1. Develop new products or services.

To remain relevant, your business needs to innovate; you can’t do the same thing forever. A small business loan enables you to invest resources in the development of new products and services, creating additional revenue streams. Your cash reserves may run thin in the interim, but in the end, you’ll be better positioned financially.

  1. Handle any unforeseen expenses.

There are so many things that could cause your business to incur expenses you don’t budget for. An employee could get into an accident in the company car. A tree could smash into your office, breaking the roof. A worker could accidentally break a server. With an emergency business loan, you’re able to cover any of these kinds of expenses.

Emergency business loans are unsecured, meaning you don’t have to put up any collateral against them. If your business fails—and sometimes that just happens, no matter how hard you fight—you personally won’t be on the hook for the loan.

Remember, emergency business loans are secured quickly. You won’t have to fill out a mountain of paperwork to apply. Once you’re approved, money will be in your bank account within a couple business days. It’s convenient, to say the least.

There are many things business owners can’t control. But there are just as many things they can. By simply being aware of the fact emergency business loans that are easy to get exist, you’ll know exactly what to do the moment a cash gap materializes: Get your small business loan and save your business. Good luck!  

5 Secrets of Physician Loan Requirements That Everyone Misses

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

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

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

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

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

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

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:

  • variable interest rate mirrors the market. When market interest rates go up, payments go up; when they go down, payments go down.
  • 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

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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