Small businesses really need a helping hand in these difficult financial times. With more and more people losing their jobs, those who take initiative and are running a small business should be supported and applauded. But what does this all have to do with working capital? Basically, the financial needs that any business has on a day to day basis – this translates into the investment that is needed to keep a business working – is what is known as “working capital”. In financial terms, it is the assets a business currently holds, take away the liabilities that this business has. That is the daily cash flow that is needed and includes such things as personnel costs, insurance, utilities and so on. It measures not just how efficient a company is, but also how good its short term financial health is.

Working Capital Issues For Small Businesses

Large businesses have always had many options available to them when it comes to having and maintaining a good working capital position. They have the ability to go through such things as stock selling, inventory maintenance, accounts receivable financing and the issuing of bonds. These are all great ways to raise capital when it is necessary. For small businesses, however, it is difficult to have good levels of working capital and the cash flow is not regular enough to maintain it. Very often, their liabilities far exceed their assets. Without managing this the right way, small businesses may struggle to pay their creditors, which in turn can lead to bankruptcy. Luckily, loans are available and they provide a great solution for small businesses. These types of loans allow for rapid growth in a business. They are not generally targeted at buying assets or investments, but are used to clear up financial responsibilities such as wages, credits, accounts payable and business obligations. Very often, a small business for example, will pay their debts and then have an issue with incoming cash, meaning they struggle to pay their staff’s wages. The staff would then in turn, refuse to continue to work which means the income of a small business comes to a halt. Working capital loans are designed to stop these types of things from happening, rather than enlarging and increasing the business itself.

Working Capital Loans

If finances in a small business are not properly managed, the risk of the business failing is greatly magnified. They will be unable to grow and achieve higher profits, as well as having to pass up on some potentially amazing opportunities. The saying is that you need to spend money to make money, but sometimes that simply isn’t possible. The loans that are available to assist small business with these type of problems generally mature after one year. This means that they have to be paid back in full – plus interest – within twelve months. They are designed to allow businesses to invest in other issues to help them grow, so that it should not be a problem to pay this loan back after that period of time. However, as a small business, you do need to think long and hard about whether you are simply buying a stay of execution, or whether you really just need a little bit of extra cash flow to get you back on top and ready to face the game.

Unsecured Working Capital Loans

In years gone by, it was always necessary to have good collateral in place for working capital loans. However, new loans have been developed that don’t need any security. Of course, these can be slightly hard to get and lenders will significantly scrutinize your business before agreeing to this type of financing. Your credit history, for example, is one thing that is certainly going to influence the decision as to whether or not you will be able to receive financing. Your vested interests and your perceived ability to repay are other items that are considered. You will need to provide quite a large range of financial statements from your past operations. These statements should demonstrate how hard you have worked and what amount of personal financial investment you have put into your business. Of course, the trend of your cash flow will also be looked at.

Working capital loans are very popular amongst small business owners, particularly the unsecured versions. It is also possible to apply for working capital loans that are basically a cash advance on your credit card sales and receipts. This means that you loan on what you expect to make. This is only useful if you think that the money you are borrowing will lead to larger profits, otherwise you will end up with more problems further down the line.

Getting financing for your small business doesn’t have to be as tough as you think…To apply for Working Capital and receive multiple rate quotes Click Here!

What exactly is success? The definition will depend on a person to person basis. It may mean success at education, in money or in love. It can be amassing a great fortune or becoming famous. For business owners, however, success means that their profits are as high as they possibly can be and that the name of the business becomes established as a household name. Hence, a business owner has to be a creative thinker and be very confident. They also have to be passionate and committed and have a vision of success and a mission on how to achieve that. A person may have all of these qualities, but without the necessary financial backing, starting up a business and achieving success is never going to happen. This is where unsecured business loans come into play. Unsecured business loans are provided to those who don’t want to provide or don’t have collateral to put up against a loan. These can be hard to get, particularly in the current global financial downturn, and particularly if you are turning to conventional banks and lenders. These types of lenders have incredibly tight approval criteria. But there are other options available as well, even if you are looking for an unsecured business loan.

What Are Unsecured Business Loans?

Businesses have to deal with a lot of insecurity. They may have maximum profits one month and virtually no sales the next, for example. Using unsecured business loans to help you through these periods is a great idea. Business owners could use the loans to purchase new fixed assets, to pay off creditors, to pay the wages of their staff or to expand their business for example. The amount that a business owner can borrow on an unsecured business loan will vary and depends mainly on their credit history, the lender they are choosing and their regular profits. However, they are usually set between $30,000 to $250,000. Because they are unsecured, these types of business loans can be provided much quicker and with less paperwork. This is because there is no need for a surveyor to come out and assess whether the collateral that is put up against the loan is actually worth what the business owner says it is worth. A big downside to unsecured business loans, however, is that they generally come with higher interest rates. This is to protect the lender in case something goes wrong, as they will not be able to claim it back through any collateral. This basically means that they are more likely to at least get back the money that they borrowed.

How To Find An Unsecured Business Loan

For those who are starting up a new business, more effort needs to be made to obtain unsecured business loans. This is mainly because they will not be able to provide any financial statements that demonstrate that your business is profitable enough to repay the loan. Hence, it is very important that those starting up a business write up or have a professional draft an amazing business plan. This plan has to show how a business owner believes that they will have the necessary profits to pay back the loan, but also what systems are in place in case these profits don’t actually materialize. Having a really good business plan in place is one of the most important things. For those with an existing business, unsecured business loans will need slightly different information. However, writing a business plan can still be incredibly beneficial. They will generally have to demonstrate what their sales have been in the past – usually during the past year – and provide all their accounts and tax statements.

Credit Ratings And Unsecured Business Loans

One of the most important factors in whether or not a business will be able to receive an unsecured business loan is their credit score. Those who have a higher credit score have a higher chance of obtaining a loan. It may be advisable to any business to first check their credit score, so that they know whether there is any point in going down this avenue. Generally, the better a business’ credit score, the lower the interest rate they will have to pay. A credit score gives an overview of the payment and borrowing history that an individual person or business has.

There are quite a number of financial institutions that provide unsecured business loans. Of course, it is possible to turn to conventional banks, but these have incredibly tight approval guidelines. For those who want a fast and hassle free lending experience, searching online for a Business Cash Advance is generally the best option. Comparing the market online is very easy to do, and a business will generally only need to provide a few details to receive a quote.

Getting financing for your small business doesn’t have to be as tough as you think…To apply for Unsecured Business Loans and receive multiple rate quotes Click Here!

Many people who own businesses have heard of lenders that offer the opportunity to borrow against potential upcoming credit card sales through merchant credit card accounts. This is known as loans against credit card sales. This system allows businesses to have working capital that can be used to build up higher sales volumes. Although it is an interesting way to acquire capital quickly, loans against credit card sales are a more expensive way of borrowing. However, it is a much easier type of financing to get, making it very interesting for businesses who have credit issues or who need money quickly. It is incredibly important to think long and hard before entering this type of lending agreement and it is advised that businesses seek a professional opinion first. One term that generally describes this type of lending is “receivable factoring”. This better explains what the process involves, as it shows that it means an advance against likely receivables, as opposed to the creation of debt. It is very important to know the difference between receivable factoring and a conventional business loan.

There are a number of lenders who offer loans against credit card sales. Some, for example, will offer 30% of the average credit card turnover a business has each month, which has to be repaid within half a year. Usually, the costs will range between 6.5% and 7.5% every month. The average credit card sales do need to be over $4,000 every month in order to be eligible for this loan. Usually, credit card statements over the past three months need to be provided. Other lenders offer loans against credit card sales up to a set amount, such as $250,000. Other lenders also set a minimum lending amount, usually around $5,000. Often, businesses need to have been operating for a minimum period of time, usually six months to a year, before being able to apply for this type of financing. Very often, lenders only work with organizations that are in a certain line of business, such as retail or restaurants. Sometimes, lenders offer higher advances, even up to $400,000 but these will have tighter acceptance criteria, such as having been in business longer and having higher average credit card sales over a longer period of time. They will also offer higher percentages of average monthly credit card sales, sometimes even up to 100% or – in rare occasions – 150%. These lenders will generally allow for a slightly longer repayment time (usually nine months to 1 year, rather than six months).

If you are considering loans against credit card sales, it is important to really learn more about what it is and whether it is the best solution for your business. The reality is that in these difficult financial times, even those businesses that have a very good financial history and highly consistent profits are still turned down by banks for financing. This means that traditional loans, such as a small business loan, are simply not an option for many people. The more traditional forms of business loans include small business loans, equipment loans, secured and unsecured business loans, working capital loans and line of credit. Because of the terrible financial situation we face in today’s market, many businesses don’t even take the time to apply for any of these types of loans, because it is so likely that they will be denied their application. A business cash advance can be a good solution. Loans against credit card sales are different because there is no need to draft a full business plan or to provide lengthy financial and tax records. There is no need to present a lender with collateral. This type of loan is available for all businesses, including those with credit that is not entirely squeaky clean. Cash flow is protected because the monthly payments aren’t fixed. These types of loans also offer high degrees of flexibility, meaning that a business can choose how to use the money themselves. This type of credit will also not show up on a credit report, which means that future finances will not be negatively affected. The application is generally quick and easy, with most businesses approved for funding within 24 hours.

It is important, however, to not be swayed by the terminology used by the lenders offering loans against credit card sales. They will often state things such as repayments to be made through small fixed percentages, for example. As a business, you do need to check exactly how “small” this percentage is.

Getting financing for your small business doesn’t have to be as tough as you think…To apply for Loans Against Credit Card Sales and receive multiple rate quotes Click Here!

Small businesses are said to be the most difficult of all to run. It can be a real challenge just to find the capital to start yourself up. There are some businesses that are cheap to start up, but you will have to invest heavily in your own professional training. Other business don’t cost much in terms of training, but have incredibly high overhead costs. Luckily, small business loans are able to help in this situation. With a small business loan, you can have the necessary capital to put towards starting your business, upgrading your business, investing in your training and, of course, in advertising. Finding the right small business loans, however, can be very difficult. We live in very difficult financial times and banks are reluctant to part with their money. This means that getting accepted for any type of loan can be quite difficult. Unless your credit rating is squeaky clean, you may really struggle to get loans, at least not from the conventional lenders. However, options are available to suit anybody’s needs.

What Do You Need For Small Business Loans?

When it comes to small business loans, regardless of which type you are going for, there are a few things that you should have. You should start with a very detailed business plan. This should indicate what you want to do with the money you are lending, but also how you foresee that it will be paid back. This is particularly important if you are using it to set up a new business, as you will not be able to demonstrate that you will be getting an income from your business. If you are using the money to build up an existing business, make sure the business plan demonstrates how the money you will be borrowing will help you enhance your business and how this will translate into increased profits. Also make sure you have your tax records with you – generally for the past two or three years – and have detailed accounts reports with you that demonstrate what your expenditures have been and what your profits have been. Also make sure you have information on what your monthly expenses are of course. If at all possible, try to get a hold of your credit report, so you know whether or not there is any point in you applying for loans with conventional banks.

Small Business Loans And Credit Ratings

If you don’t have a good credit rating, there are still options available to you. Unfortunately, these options are generally more expensive. This seems like such a contradiction in terms, but unfortunately, the reality is that those that demonstrate that they have had difficulties with their finances in the past will have to spend more money. Depending on your credit rating, the interest rate and period of time you have to pay small business loans back will vary. If your credit rating is still quite reasonable, you may want to go to a second tier lender, whose interest rates will be slightly higher than conventional banks, but still quite reasonable. If this is also not an option for you, you may want to consider other options than standard small business loans such as a Merchant Cash Advance. If the amount you require is not too high, you may want to consider applying for a credit card rather than a loan, for example. This is a particularly useful option if you are trying to use the money to set up your business and hence don’t have any documentation to prove that you will be able to pay back the money.

Other Lending Options

If you are an existing business, you could also consider lending against foreseen profits. If you can demonstrate how much profit you’ll make on a monthly basis, you may be able to borrow some of the amount. Most lenders will allow you to borrow around 30% of these profits and have repayment terms of around six months to a year. You do need to be careful with these types of small business loans that you don’t end up with a whopping bill at the end of your repayment period. Most lenders will allow you to pay a minimum amount every month, which generally covers the interest. This means that at the end of your loan period, you will have to pay the full amount back. Hence, try to always pay more than the minimum required amount. This is true for both credit cards and other types small business loans. Although you don’t have a maximum amount of time to pay back credit card debt, if you only pay the minimum amount, you will be paying for a very long time.

Getting financing for your small business doesn’t have to be as tough as you think…To apply for Small Business Loans and receive multiple rate quotes Click Here!