FAQ

What is the best resource for small business loans?
I am a business consultant and I have helped at least 300 businesses raise money from lenders in the last year. The best resource for business loans is obviously the Small Business Administration (SBA). SBA loans offer low interest rates (6.25 to 7.25% rates) loans up to $350,000 and no pre-payment penalty.The loans can be used for working capital, business expansion, equipment financing, debt refinancing, business acquisition and more. Lots of small businesses qualify for a SBA loans, a business needs to be operational for at least 2-years, must have cash flow to support loan payments and no bankruptcies or foreclosures in the last 3 years.Getting an SBA loan has traditionally been an extremely time consuming effort for most businesses, until the launch of GoSBA Loans.Los Angeles-based GoSBA Loans started in 2012 with the goal of using new financial technology to provide small-business loans quickly and easily.Best Option: GoSBA LoansLeast expensive financing: It would be tough to beat the low rates of SBA loans. SmartBiz is an excellent option for small-business owners looking to keep financing costs down.Great financing for growth: If your primary goal is to grow your business, getting an SBA loan from GoSBA Loans is an excellent way to reach that objective. You get the funds you need on manageable terms. Unlike with other online loans, you don’t get stuck with high monthly or daily payments that could eventually cause serious financial headaches.If your business is growing steadily and it’s time to add a new store branch or hire more employees, GoSBA Loans is the best way to get a SBA Loan which is considered the most affordable type of small-business financing today.You have to have a strong business and then spend the time filling out forms and submitting documents required by the SBA, but if you qualify, you could secure the funds for growing your business in a way that won’t break the bank.
What are things to look out for and consider when applying for a small business loan (SBA)?
Getting approved for start-up small business loans takes a lot of preparation, but it is definitely worth it once you get the hang of all the business loan requirements.So how do you qualify for a small business loan? For starters, determine how much you actually need, and what you need it for. When you’ve answered these two important questions, here’s how to make sure your business loan gets approved.1. Use your loyalty perksYou’re most likely to get approved in a bank where you’ve already set up your savings or merchant (business) account. And since you already know the bankers there, you can ask for advice on how to go about your business loan application.Which should lead you to…2. Check your credit historyBefore anything else, see if you may have overlooked some negative credit records from the past. Maybe you’ve forgotten about them because you have been earning a steady stream of income from your start-up business. Review old credit records and settle things if anything appears, before you even start applying for a business loan.3. Do your researchNow that your business loan purpose has been established, and your credit history cleared, this is where due diligence on your part comes in. As a loan applicant, you will need to find and compare lenders.Look for the types of business loans available to you, the terms and conditions, and the eligibility and document requirements. Nowadays, you can easily compare business loans in one website and apply online.At this stage, you will know if the type of industry you’re in is creditworthy or acceptable for an SME loan application. Most lenders tend to decline applications from certain industries that are deemed “risky.”4. Prepare your answers and pertinent documentsAll these preparations should include preparing to answer any questions that your lender may have.Can you show a solid business plan? Have you done a proper feasibility study? Why do you need that much loan amount? How long do you think you can have a return of investment? These are just some of the important questions you need to answer.Prepare the complete business plan and documents. If your business is new, you can prepare and submit a sales forecast instead of the usual audited financial statements, along with your bank statements. Each lender may have specific documents they will require you to submit.Everything should be in order and documents within reach during your presentation. Be thorough, accurate, and honest during the application.5. Wait for the application resultWhen you know you’ve done everything on your part to provide a good business loan application, there should be little reason to worry about the result. The usual loan processing time is two weeks, but it always depends on the lender.In case of rejection, you can always ask them for things you need to improve on, so you know better on your next application. If you’ve been approved, then congratulations! You’re well on your way to growing your business.If you need to apply for a business loan, you can check and apply here https://www.ecomparemo.com/busin...
How do small business owners apply for an SBA loan?
To learn more about this I interviewed Stephen Speer, a lender at one of the the nation's largest SBA preferred lender banks, on the Quiet Light podcast.As a lender, Stephen knows what it takes for a small business owner to apply for an SBA loan.When applying for an SBA loan, both the seller and the buyer have to fulfill some requirements. The buyer has to have enough money to come up with the 10 percent of the loan and a relevant skill set to run the business.On the other hand, the seller, or to be more precise, the business has to fulfill some requirements, too. When asked what kind, size or age a business needs to be in order to be suitable for a loan, Stephen emphasized that the BankUnited, bank he works at, is more flexible than the others. Other banks require three years of solid tax returns.They require one solid year of tax returns.If you are a seller and you had a ramp-up year, but the year you are in is solid and is expected to be solid, it is better to wait a little bit before applying for a loan. Stephen advises his clients, in this case, to wait until the end of the year, submit the tax returns and then apply for an SBA loan.It is important to know that most lenders will not tolerate the so-called commingling. Commingling is merging two different businesses into one and having a single tax return. Then if you plan to sell, problems appear.It is better to split the businesses with your accountant before you apply for an SBA loan. The lender will advise you, to separate the businesses because it is their job to prepare you for the interview with the underwriters who make the final decision.Need to apply for an SBA loan and financing? You’ll be happy you took the time to listen to this podcast episode.
How efficient is the small business loan process, whether through the SBA or a bank?
The SBA does not provide loans directly.  Banks and alternative lenders offer SBA Loans that are typically easier to qualify for than traditional bank loans but they usually require collateral and several months to decide whether or not you’ve been approved. Terms range from five to twenty-five years, with amounts ranging from $5,000 to $5 million.  Obtaining a loan from a bank, however, couldn’t be less efficient.  You have to prepare a ton of paperwork along with a hefty deposit just to learn that you’ve been rejected. Banks reportedly reject 4 out of 5 applications for small business loans, and even if you are approved, it will likely take more than three months for funding to reach your bank account.  As an alternative, you may want to consider online funding sources, such as the company I founded, United Capital Source, as a way to get working capital for your business without the hassle of things such as the required collateral and long contract lengths provided by traditional banks.  Most online lenders only need you to prepare a few documents including bank statements, business tax returns, and a profit and loss statement. Approval is quicker than banks, and can be granted in less than 24 hours with no collateral necessary, and funding will reach your bank account in a matter of days.  Differently from banks, small business loans from companies like ours are truly customized to your business, carrying fixed or flexible terms based on the circumstances of your industry. Flexible terms ensure minimal impact on cash flow, allowing you to run and grow your business at the same time.  If any problems arise with a bank loan, odds are, you’re on your own. But at UCS, our experts form long-term relationships with clients and are available to guide them through any unprecedented speed bumps. We offer plans designed to stabilize businesses for years to come. Should you need another, larger amount of funding down the road, UCS will get it to you even faster than the first.  I hope you find this answer useful and you consider the alternative I've provided for your working capital needs!  -Jared
Are SBA loans a good option for equipment financing for small businesses?
There’s no simple answer to this question.Yes, SBA loans could be a good option for equipment financing regarding their attractive loan terms and their high loan amounts.But, unfortunately, the cons outweigh the pros of SBA loans, especially in the current climate:U.S. government shutdown - SBA loan approval was brought to its knees with the recent government shutdown. Around $2 billion worth of SBA loans were delayed. Even though the SBA doors have opened (albeit temporarily), there is such a backlog of SBA loan applications, that the approval process has been crippled. It’s certainly not worthwhile even applying right now through this channel. There are other options for small businesses though - read this article for more information on the effects of the SBA shutdown on small businesses.Strict qualification criteria - it’s extremely difficult to qualify for an SBA loan. Applicants need to demonstrate the following:Good credit historyPersonal equity contribution2+ years in businessStrong financialsTax returnsSufficient management skillsLong approval time - even without the shutdown, approval can take up to 3 months through the SBA, with the average approval time being 3 weeks.Very competitive - because the loans are guaranteed by the government up to 85% and the terms are so attractive, there’s a lot of competition from other small businesses, making it hard to get approved.Here’s a table comparing SBA loans to alternative funding options:In summary, SBA loans are not a good option for equipment financing for small businesses right now nor in the near future. It’s best to exercise the other equipment financing options available through online lenders.
Dealing with the SBA. How to get a loan to start a VERY small business. Teeensy.?
If it is a dropshipping business. forget it. If it has anything to do with food or other thing that requires government oversight, forget it if it is teensy.The SBA has a microloan program Financing Your Small Business With a Microloan but you don’t go to the SBA- they don’t make direct loans. Instead, you go to a bank that supports the SBA program and apply… it isn’t just a one-page application that you can complete in an hour, but first…In order to qualify for an SBA guaranty you have to exhaust all other financing possibilities which generally means you have to be turned down by at least one bank. Your Business Plan has to be complete with every detail including financial projections (your bank can explain further).You see, it takes as much time and effort to obtain a SBA guaranty for a tiny enterprise as it does for a big one.I strongly suggest that you look for alternate means of financing. Credit cards, friends and family, a personal loan… anything else… before you start thinking about SBA.You should know that if you default on the SBA guaranteed bank loan that the SBA pays the bank, then they come after you for the amount they gave the bank, and the bank comes after you for whatever the SBA didn’t cover and no type of business organization will protect you as you will have to provide a personal guarantee,
What are the requirements needed to get a loan from Small Business Administration (SBA)? I really need your help.
I am a business consultant and I have helped at least 300 businesses raise money from lenders in the last year. The best resource for business loans is obviously the Small Business Administration (SBA). SBA loans offer low interest rates (6.25 to 7.25% rates) loans up to $350,000 and no pre-payment penalty.The loans can be used for working capital, business expansion, equipment financing, debt refinancing, business acquisition and more. Lots of small businesses qualify for a SBA loans, a business needs to be operational for at least 2-years, must have cash flow to support loan payments and no bankruptcies or foreclosures in the last 3 years.Getting an SBA loan has traditionally been an extremely time consuming effort for most businesses, until the launch of GoSBA Loans.Los Angeles-based GoSBA Loans started in 2012 with the goal of using new financial technology to provide small-business loans quickly and easily.Best Option: GoSBA LoansLeast expensive financing: It would be tough to beat the low rates of SBA loans. SmartBiz is an excellent option for small-business owners looking to keep financing costs down.Great financing for growth: If your primary goal is to grow your business, getting an SBA loan from GoBizLoans is an excellent way to reach that objective. You get the funds you need on manageable terms. Unlike with other online loans, you don’t get stuck with high monthly or daily payments that could eventually cause serious financial headaches.If your business is growing steadily and it’s time to add a new store branch or hire more employees, GoSBA Loans is the best way to get a SBA Loan which is considered the most affordable type of small-business financing today.You have to have a strong business and then spend the time filling out forms and submitting documents required by the SBA, but if you qualify, you could secure the funds for growing your business in a way that won’t break the bank.
What are banks' average customer acquisition costs for a Small Business Loan (SBA or bank) customer?
Acquisition cost for small business loan customer is well over $1,000. However, most banks (particularly those banks with assets $50b) do not track this cost or make significant errors in calculating the total cost.