3 Sources Where Your Small Business Can Get A Loan Today – Yes, Even Your Small Business

Now, when we talk about small business loans, we mean just that – small business loans. We are not talking about a $1 million loan to purchase some commercial real estate or $500,000 to buy some investment property. We are not talking about a $3 million credit line just to show capital on a balance sheet. And, we are not talking about a $250,000 equipment loan for a regional construction company.

We are talking about true small business credit – loans under $150,000. Capital amounts that the 22 million small businesses in this country could use at some point in time for working capital, to renovate their location, purchase inventory, marketing, meeting payroll, developing new products or to simply have the capital on hand to acquire and satisfy customers (what business is really about).

But, we have heard ad nauseam that banks are just not lending to small businesses – claiming there is too much risk in smaller firms. So, many small companies are not even applying for credit anymore out of fear of being turned down. And, as a result, we are seeing small businesses not reach for or obtaining their full potential – essentially letting profitable opportunities slip by.

However, just because banks don’t see the true value of small companies, that does not mean that others don’t – others who are willing to do what they can to fund your business.

The Benefits Of Small Business

There are some 22 million small businesses in the U.S. and they are quite the power house.

According to the Small Business and Entrepreneurship Council, small businesses;

Provide two-thirds of all new jobs in the nation.
Contribute almost 50% to our Gross Domestic Product.
Account for 97.8% of all exports. And,
Create 16.5% more innovation than larger firms.
All items that help make America the country that it is.

But, if banks think these firms are too risky, that is OK, because given the entrepreneurial spirit in this country, other financing firms (lenders) are stepping up to cover the small business loans that banks and traditional lenders will not. So now, you don’t have to be afraid of being turned down anymore.

3 Sources That Will Fund Your Small Business

1) SBA Loans: Sure, SBA loans have to go through banks – which are not lending. However, banks might not be lending for their own loan portfolios but they are lending under the SBA’s programs.

Did you know that over the last three years, the SBA has been growing the number and dollar amount of the under $150,000 loans they back – even given that banks (who originate these products) are not approving them?

From the latest SBA data;

In 2012, the SBA guaranteed 14,520 under $150,000 loans for a total loan amount of over $802 million. In 2014 (two years later), the SBA increase the number of these loans to 16,043 with a total volume of $955 million – with a down year in 2013.

Part of this increase is the fact that the SBA has reduced or waived its fees on these smaller loans. From the SBA’s website:

“The SBA determined to eliminate the fees on loans of $150,000 or less after conducting a review of the 7(a) Loan Program. As a result, a small business owner obtaining a $150,000 loan will save more than $2,500.”
Bottom line – the SBA is actually doing what it can to fund small businesses in this country – including yours.

Programs to look for:

The 7(a) program offers nearly any business loan under the sun from working capital to commercial real estate.

The CDC/504 program only focuses on real estate and equipment lending. But, if your business needs either one of these under the $150,000 amount – including renovating your location – then by all means as this is a great program.

And, the express program – which is capped at $350,000 – is a great program. Quick and easy access to needed capital.

Now, for some quick benefits of SBA loans. The SBA’s guarantee does several things:

By capping interest rates and fees, these products tend to be cheaper in the long-run for the borrower.

Lower down payment requirements – meaning that you can keep more of your own money in your own business.

Long loan terms also allow payments on these facilities to be more affordable. Just image which loan payment would be easier to make on a $100,000 loan at 10% interest. A bank may require the loan to be repaid in 36 months – making the monthly payment $3,227. While the SBA could extend the term to 6 years (72 months) making their monthly payment $1,853. The lower the payment amount, the easier it is to cover with current cash flow, making the overall loan less risky and easier to get approved.

Express programs can significantly speed up funding as some traditional business loans can take months to close while those under the express programs can be funded in the matter of weeks.
If you have been fearful of applying for a SBA loan, knock it off and go apply!

2) Alternative Lending: Alternative loans (non-bank loans) from factoring and business cash advances to revenue based loans have really picked up steam over the last 5 plus years.

These lenders are focused solely on small businesses and as such have created products that allow them to approve more loans to companies that traditional lenders will not touch – by not using old and outdated underwriting standards but by focusing more on technology.

Most alternative lenders – especially the leaders in this space – have seen their loan volumes (thus their approval rates) – increase by 150% or more year after year.

A couple of examples: According to the SBA, their largest lender – Wells Fargo – approved and funded just over $266 million in small business financing last year. However, OnDeck Capital, a leading revenue based lender, nearly doubled that amount over the same period. Further, CAN Capital claims to have funded over $800 million in 2013 – far out pacing even the top 100 SBA lenders combined.

While these loans are high-cost loans, they offer several benefits like approvals when other lenders say “no” as well as quick (in the matter of days) funding.

3) New Players: Peer-to-peer lending is know for its ability to match regular people who have extra money to lend with regular people who need to borrow. These loans are typically personal loans that can be used for nearly any purpose – like starting or growing a small business.

However, just this year, Lending Club – the leader in P2P lending – has begun to offer a true small business loan product where businesses can borrower anywhere from $15,000 to $100,000 at low rates. And, their approval and funding is not based on some standard cookie cutter formula that most businesses just do not meet but comes from regular people who listen to your story and decide for themselves the merit of your financing request.

Conclusion

Capital for your business is still available.

Don’t always believe what you hear. Sure, small business lending is tight – when compared to the hey days of the mid-2000s. But, that does not mean that you still cannot get the funding your small business needs to start, grow and succeed.

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3 Easy Tips to Start a Clothes Business Minus the Myths

One myth is that the fashion business requires you to have a fashion degree to be taken seriously as a fashion designer or clothes business owner, is completely false! Yes, it can be advantageous to have a fashion degree but, it is definitely not absolutely necessary. You can create a very successful business without this and go on to become a fashion designer in your own right because of your creative individuality.Another myth is that you will need to be able to sew, knit or use any of the tools required to create garments. You may even have been led to believe that you will also need to have completed a basic art and design course as well as have sketches and examples of your artistic talents available and ready at hand for examination. Other myths include, that you need to have a sound knowledge of textiles and their uses, and that a bank or lending institution will not take you seriously, if you do not have a fashion degree.Putting these myths aside, following are three tips to start you on the road to creating a very successful fashion business and what you will actually need to start.Clothes Business Tip No.1
You need a vision of what you want to achieve in your business before you can even start to put this dream into action. In most cases, a person who is drawn to the fashion industry is someone who is innately artistic and this talent is normally dormant until the time arrives that it becomes an overriding passion to be expressed.The first thing to do when the vision of designing garments start appearing in your minds eye, is to start sketching or even doodling these designs. Your design could start with just the mental picture of the back of a garment, seeing a particular pleat in your imagination. This vision will grow into the whole skirt and then the jacket to match. Before long, you be looking at alternative jackets and coats, all in your minds eye!Clothes Business Tip No.2
Once you have your sketches of the designs you want to create ready, your next step would be to have these translated into garments.To do this, you have a few alternatives. You can either find someone within your family, or circle of friends, who has the skill to do it for you or, you can ask them to find out if they know someone within their own circle of friends who would be able to create the garments for you. Alternatively, you could advertise in the appropriate magazines to find a suitable person to make up your garments.Clothes Business Tip No.3
Now armed with your designs, you need to find customers because as soon as you have a database of customers and a working history in the fashion market, then you will be looked upon as a good investment by banks or other financial lending companies.Just by starting with your very first customer, this can lead to many others, through recommendations. Therefore your task is to ensure that each and every customer is completely happy with the garment they have paid for, so that they in turn will pass your details on to their family and friends.The above three tips will help you to get started with creating a clothes business and hopefully dispel the myths which may have held you back in the past from entering into the fashion business.

Thinking of Setting Up a Business on Your Own? – 7 Tips You Should Know!

Starting your own business can be a grueling task and involves a lot of caution as the entire future of the business depends on the foundation you lay during the early days of your business. The success of every thriving business can be attributed to the strategies employed during the foundational period of the business. When closely analysed all these strategies are invariably the same for every successful business. These tips applied to your business during its inception stage are a sure ticket to successful business enterprising.Tip 1: Choose what you love
If you to start a business, then you will be devoting a lot of time to your business; instituting it and developing it to be a strong establishment. So if your business is something you enjoy doing, not only will you take pleasure in doing the laborious tasks demanded by your business, you will also have the perseverance to stick to your business during tough times.Tip 2: Do some research
It is important to do some research before you embark on doing business. Before you begin your business, you should have mastered every detail of your business and know the concerned industry inside and out. You can read books, find information from online resources and join communities of people with similar interests to study your business. This will help you to start your business correctly, publicise it in the right place and find the right customers.Tip 3: Don’t quit your current job
Start your business while you are still employed. Do not quit your job until your business has started to take off and you have enough funds to handle any situation. The world of business is very competitive and it is not likely that your business will start prospering the moment it starts. Even if you make some money, do not forget that you will need money for maintenance purposes and to develop your business.Tip 4: Draft a business plan
If you devote sometime to drafting a fail-safe business plan, you can avoid plunging your time and money into a business that will not succeed. A business plan will help you to figure out how to go about every step of business, it will prepare you to handle any issue and avoid unforeseen setbacks.Tip 5: Don’t start a business by yourself
Even if you are a very knowledgeable person in the business you are about to begin, it is good to have people that assist you in making decisions. You can talk to them about your plans, new decisions and activities of the business and they may throw a different light on the whole topic.Tip 6: Follow regulations of the law right from the beginning
There are rules and regulations for running a business. In order to avoid any trouble in the future, it is important that you follow all the rules and perform all the legal regulations right from the beginning.Tip 7: Hire professional employees
If you want your business to be strongly established, you have to ensure that your service is professional and perfected to the detail. This is not possible if you do all the tasks involved in business yourself. A business activity involves many different tasks and you may not be good at doing everything. Once you have figured out all the tasks involved in the activity, you can set about hiring professionals to do some jobs for you. This way you can ensure that all the tasks are performed on time and professionally.Now hiring qualified candidates is an easy task with the many online recruitment companies that help businesses find the right candidates through their flat fee recruitment service. With the help of such companies you can hire competent employees that will contribute to the development of your business. These low cost recruitment services are the best places to hunt for qualified candidates for your business.