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.
How do I go about getting a business loan for buying a tow company?
There are now A LOT of different ways you can get business loans, and most of them do not come from conventional banks.Conventional banks are great sources for low-rate and long-term SBA loans, but in most cases you can only qualify if you have good consistent cash flow and profits per your tax returns, good personal and business credit, and collateral of 20% or more of what you are borrowing.To get a business loan, first consider any positive lending strength you have. If you OR someone you know who many want to be part of your venture, has some type of collateral such as a 401k or stocks, equipment or inventory, account receivables or purchase orders, commercial real estate, or some type of other viable form of collateral, you can get approved for low-rate financing regardless of your personal credit quality or cash flow.If you do have consistent cash flow in your business of 8-10k monthly and 12 months in business or longer, you can get approved for cash-flow financing regardless of collateral or credit.If you do have good credit with scores of 700 or higher OR can find a guarantor who does, then you can usually get approved for 0% unsecured business financing up to 150k… even as a startup.If you have none of these than you have no true lendable strength and getting a business loan will be near impossible, for now. In this case business credit is your best option as you can immediately start getting credit for your EIN that’s not linked to your SSN.This is the only real type of financing you can get when you have no collateral, cash flow, or good credit. And by getting it you also become more lendable.With business credit you can start to get high-limit revolving vendor and store credit cards quickly. Shortly after you can start to get fleet and cash credit, and almost all of this is linked to your EIN and requires no credit check for approval.We welcome an opportunity to talk with you more about the exact financing you can get now, we work with all options mentioned above and many others. And we can help you with all aspects of obtaining business credit, including getting you a FREE copy of your business credit report. So we have solutions regardless of your credit, collateral, or cash flow.Here’s a guide we put together for 27 Killer Ways to Get Cash for Your Business http://www.creditsuite.com/27-ki... that outlines many ways you can get a business loan. And here you can grab a free guide that outlines the steps to start getting business credit here www.creditsuite.com/ein-credit-quoraI hope this helps!
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 is the easiest way to get a business loan?
Business loansBusinesses require an adequate amount of capital to fund startup expenses or pay for expansions. As such, companies take out business loans to gain the financial assistance they need. A business loan is debt that the company is obligated to repay according to the loan’s terms and conditions According to the U.S. Small Business Administration, before approaching a lender for a loan,it is imperative for the business owners to understand how loans work and what the lender will want to see from the owner.What is business loan?A business loan is a kind of financing you can avail to meet the urgent needs of your growing business.If you are not getting favourable funds then you can now settle with the option of Business loans for bad credit to develop your business.Typically, small business loans are availed in order to expand or revamp an existing business or to fund a new business or a startup. It can be used to buy the inventory, for marketing, or to strengthen the financial base of your business. You can get all the capital you need to your business development by availing a quick business loan.Different types of business loansWorking capitalWorking Capital refers to the venture capital of the business venture, i.e., the money that is available to run the business after its assets & liabilities are taken care of. It is essential for every company or venture to have a cushion of working capital so that the business can run smoothly without running into any crisis or for the work to be done without any breaks.A working capital loan is one taken to overcome the shortage of cash. This is generally used to when cash in the business is not enough to take care of the day-to-day operations of the company.A working capital loan is a really a great way to overcome the seasonal shortfall of cash. Working capital loans are generally in the range of 6 to 12 monthsThere are 4 easiest ways to getting a business loan:1.Get your financial house in order:Typically, a business needs to have been profitable for the past three years in order to qualify for a bank or SBA loan. Remember, most banks will require that you personally guarantee the loan, maximum most of the lenders will look closely at your credit history prior to making a decision, keep an eye on your credit score and anything in your credit report that might be a red flag.2. Tell your company's story:In my prior experience as the co-founder of a lending company, one of the most basic errors made by loan applicants was not telling me why their company needs the money. And they wouldn't reveal why we should approve the loan even though their company doesn't meet our minimum standards3. Go localA national bank is less likely to hear you out if your business hasn't been profitable for the last three years. It is also likely that your company will be passed over if you are lacking sufficient collateral to secure a loan.4. Look at alternative financing for short-term needs.Alternative financing is on the rise as historically profitable or growth-stage companies face shortfalls in cash flow. If you don't qualify for traditional bank financing, look at these alternatives, but expect interest rates on these types of loans to be at least double what you'd pay for a traditional loan.
How do I get the best loan for an established small business?
There are now A LOT of different ways you can get business loans, and most of them do not come from conventional banks.Conventional banks are great sources for low-rate and long-term SBA loans, but in most cases you can only qualify if you have good consistent cash flow and profits per your tax returns, good personal and business credit, and collateral of 20% or more of what you are borrowing.To get a business loan, first consider any positive lending strength you have.If you OR someone you know who many want to be part of your venture, has some type of collateral such as a 401k or stocks, equipment or inventory, account receivables or purchase orders, commercial real estate, or some type of other viable form of collateral, you can get approved for low-rate financing regardless of your personal credit quality or cash flow.If you do have consistent cash flow in your business of 8-10k monthly and 12 months in business or longer, you can get approved for cash-flow financing regardless of collateral or credit.If you do have good credit with scores of 700 or higher OR can find a guarantor who does, then you can usually get approved for 0% unsecured business financing up to 150k… even as a startup.If you have none of these than you have no true lendable strength and getting a business loan will be near impossible, for now. In this case business credit is your best option as you can immediately start getting credit for your EIN that’s not linked to your SSN.This is the only real type of financing you can get when you have no collateral, cash flow, or good credit. And by getting it you also become more lendable.With business credit you can start to get high-limit revolving vendor and store credit cards quickly. Shortly after you can start to get fleet and cash credit, and almost all of this is linked to your EIN and requires no credit check for approval.We welcome an opportunity to talk with you more about the exact financing you can get now, we work with all options mentioned above and many others. And we can help you with all aspects of obtaining business credit, including getting you a FREE copy of your business credit report. So we have solutions regardless of your credit, collateral, or cash flow.Just go here to setup a time for no-cost consultation http://creditsuite.com/free-busi... or here to grab a free guide that outlines the steps to start getting business credit here http://www.creditsuite.com/einI hope this helps!
Angel Investment: Is Small Business (SBA) loan from banks an alternative for Internet startups to raise fund?
I recently wrote a blog post on this topic that might prove helpful.  How to Get a Loan for a Software Startup - http://www.projectionhub.com/fin... As the Director of an SBA Microloan Program, I get a number of microloan requests from software developers looking for a small loan to build their software application.  This is not an easy type of loan to fund.  Traditionally, software startups secure funding from investors or friends and family, but it is possible to secure a loan for a software startup.  So today I wanted to provide 3 tips on how to secure a small loan for software development.  1.  Have a Backup Plan – I think the most important factor in your loan application is a section where you outline your backup plan.  Providing a loan to help fund software development is incredibly risky.  What if you spend all of the loan money, build the software product and find out that your potential customers are not willing to pay for the product?  Since you have no proven sales, you are going to need to demonstrate a backup plan to the lenders.If you are a software developer in 2012, I am sure you are able to find work.  You may have a day job now, or work on a project by project basis as a freelance developer, but ultimately you should be able to find work if your startup fails.  If you can prove that you have generated enough personal income in the past to make the loan payments, and show that you are willing to go back to a day job if the business fails, you should be able to put the lender at ease.2.  Prove the Market – You need to prove, as best you can, that there is a market for your product.  There are a number of ways to do this:Competitors are Profitable – Maybe the software you are developing is a direct competitor to a company who is already profitable.Google Adwords Keyword Tool – You can use the Google Adwords Keyword Tool to find out how many people are searching for keyword phrases related to your product.  For example, the ProjectionHub software helps entrepreneurs create financial projections, and we know that each month there are approximately 15,000 searches on Google alone for the keyword phrase “Financial Projections”List of Interested Customers – Maybe you set up a 1 page website with a form for potential customers to fill out if they are interested in your software when it launches.  If you are able to generate significant interest from your pre-launch page, then there is probably a market.3.  Pre-sales  - You might be able to talk to potential customers and actually have them sign a letter of intent that states they plan to purchase access to your software once it is completed.  These letters will immediately prove the market to the lender, and help them run some preliminary numbers to determine whether or not you will be able to pay back the loan based on those projected sales.Getting a loan for a software startup is not easy, but it is possible if you position yourself the right way.You can get started with your loan application today by creating a set of financial projections for free using ProjectionHub - http://www.projectionhub.com   Good luck!
Is there any way to get out of an SBA loan?
Yes, there is a way to “get out of” an SBA Loan. There is a process called SBA Offer In Compromise (OIC). The OIC is specifically designed to give small business owners who have failed a chance to settle their personal guarantee. Once your business closes, and all the business assets have been liquidated, the bank/SBA will consider a settlement if you can demonstrate that you lack the ability to repay the debt in full. They require complete financial disclosure in order to determine whether an OIC is warranted.I have posted the most comprehensive post ever written on the entire SBA OIC process on my website. Just click on the link below to be taken there.Everything You Need To Know About SBA Default, Compromise, Collections, Forgiveness & More.
How does an SBA loan work? How does the SBA decide whether or not to guarantee a loan?
So, essentially, SBA loans are the best option for small business borrowing, because they are partially guaranteed by a government entity— the U.S. Small Business Association. Because of this partial guarantee, the interest rates are low, the payment terms are long, and the loan amounts are high.That being said, SBA loans are the most difficult type of small business loans to qualify for. Your business will need 2+ years of business, 640+ credit, and $100,000+ in annual revenue.You can find more details about SBA loans here:Where to Find the Best SBA LoansHope this helps!
Are economic conditions too risky to take out an SBA loan to buy a business right now?
The wee word ‘too’ is crucial. Depends on where you are and what your business is all about: what state/country, what kind of products and/or services you wish to offer, potential clients?It helps if one has already some kind of (great or small) network IRL and/or online.