Tag Archives: business loans

Business affected by Riots or Protests? Get Discounted Loans

Business affected by RiotsJust when we thought that the market has started to heal from the damage done by COVID-19, we weren’t exactly ready for more hits. Yet, more did come, and this time in the form of riots and protests. Many businesses had to stay shut while some even faced direct damages. Many business owners agree that the timing could simply not have been worse than this.

At Business Capital USA, we know that many of these business owners are our clients and in the interest of being a considerate alternate business lender we see the rising requirement of loans and are offering lower than our typical rates to businesses that have been affected negatively by the riots and protests. Read ahead to understand the benefits offered by our grants and discounted loans offered to assist your business sail through yet another challenging time.

Disaster Loans from Business Capital USA

Any business impacted negatively by a disaster can face a temporary financial difficulty and we are here to help. In the period that it takes you to resume to the usual business pattern, we can provide you grants and discounted business loan deals based upon your business operating figures. All you have to do is apply for our loan and we shall make brief verifications and then get in touch with you to understand your needs and situation. Thereafter, our experts shall make you offers to match your requirements.

Choose our disaster loans and you shall get funded in a matter of 2 business days and we hope the funds help you get your business back on the track of growth.

Bad Credit? It’s not a Problem for our Business Loans

Bad personal credit history and scores are something that shall not just trouble you with your personal financial transactions, but are very likely to limit business borrowing options for you as a business owner too. Making matters worse, is the fact that during times of financial difficulties, most frequent borrowers tend to take further hits in their credit performance and lenders tend to make loan approvals harder.

However, when you choose a disaster loan from Business Capital USA, your personal credit performance is completely out of the equation. Our assessment only considers the finances of your business and provided that certain indicators still look healthy, we approve loans that can help your business get back on track. So, if you need a business loan while you suffer from a bad credit score, you shall need to look no further as we are here to assist you.

Quick Business Loans for Emergency Needs

Protests and riots can lead to times of uncertainty and oftentimes, a business may face a very urgent requirements of liquid funds that may find use in various ways like enhancing security, hiring added staff, etc. When a loan is what you need to handle such emergency expenses, what you shall need is a quick business loan that credits fast enough for the situation to be managed well.

Our quick business loans can be ideal for emergency funding requirements of businesses. A loan from us typically gets credited in 2 business days when all provided information is accurate and complete and the eligibility assessment is straightforward.

Quick Business Loans for Emergency Needs

Rejected from an SBA Disaster Loan or Coronavirus Loan? Choose us for a Second Chance

Time and again when disasters hit our economy, state and federal supports and grants are made available to help businesses sail through the rough times. Amongst these is the well-known SBA disaster loan. While the terms of the loan are really friendly and welcoming, qualifying for one and being accepted isn’t always easy. Businesses have faced rejections on various grounds.

If your business has been rejected a loan, many other loans also get harder to secure. With Business Capital USA, this is not a problem. We welcome second chance loan applications and since we conduct no credit checks, you can also consider us your last chance borrowing source – even multiple rejections in your past do not affect our decision. Only your business finances and performance figures are what we consider for the approval of our loans, grants and funding plans.

So, if your business has been negatively impacted by riots or protests and even if a previous loan application of yours has been rejected elsewhere, then a disaster loan from Business Capital USA is available right here to help you find the funds that your business may need. Simply fill up our online application form now and we shall get in touch shortly to assist you.


Are Business Loans Based On Personal Credit?

Some Business Loans May Be Based On Personal Credit, but Not All Are
Business Loans Based On personal Credit

Before taking a business loan, you may wonder whether your credit score matters to lenders. It could affect their decision to approve your request.

The importance of your credit score in the approval process depends on which kind of lender you decide to approach.

Let’s go through who is most likely to require your credit score as a mandate and who isn’t:

Traditional Lenders: If you want a loan from a traditional lender, such as a bank, but you have a bad credit score, you may want to re-consider applying for one with them. First of all, it is almost impossible to get a loan from a bank if your credit score isn’t good; forget about it being average or bad. If they do, however, choose to give you a chance with their loans, there may be conditions for that.

One major condition that they may set forth is for you to provide collateral. Collateral refers to something valuable that you have to give as security. You give it to your lender, who asks for one. It can be property, a car, or anything that holds a price enough for your lender to cover your loan cost in case you fail to pay it. The disadvantage is that not every borrower has something expensive to use as security, even if you are 100% sure about repaying your loan.

The next disadvantage of applying with a traditional lender is that they conduct hard credit checks. If your credit score is already on the undesirable side, a hard credit check will only hamper it further. This can majorly reduce your chances of getting funded in the future, which isn’t the best situation to be in.

Online Business Loan Lenders: Many online business loan lenders do not need your credit rating to fund you. Their loans are aimed at small and medium-scale businesses. Traditional loans are usually offered on a large scale. It isn’t surprising for a small business owner to have a poor credit rating due to reasons such as not being established yet or taking small amounts from many lenders. These lenders know that a bad credit rating isn’t the deciding factor about whether a borrower will be able to repay them or not. Also, they do not ask for security, which is why it is very easy to get a loan from them. The only drawback is that the rates of interest may be higher than those of traditional loans.

Traditional Lenders: If you want a loan from a traditional lender, such as a bank, but you have a bad credit score, you may want to reconsider applying for one with them. First of all, it is almost impossible to get a loan from a bank if your credit score isn’t good; forget about it being average or bad. If they do, however, choose to give you a chance with their loans, there may be conditions for that.

One major condition that they may set forth is for you to provide collateral. Collateral refers to something monetarily valuable that you have to give as security to your lender, who asks for one. It can be property, a car, or anything that holds a price enough for your lender to cover your loan cost in case you fail to pay it. The disadvantage of this, even if you are 100% sure about being able to repay your loan, is that not every borrower has something that expensive to give as security.

The next disadvantage of applying with a traditional lender is that they conduct hard credit checks. If your credit score is already on the undesirable side, a hard credit check will only hamper it further. This can significantly reduce your chances of getting funded in the future, which isn’t the best situation to be in.

Online Business Loan Lenders: Many online business loan lenders do not require your credit rating in order to fund you. Firstly, their loans are aimed at small and medium-scale businesses, unlike traditional loans that are usually offered to large-scale ones. It isn’t surprising for a small business owner to have a poor credit rating due to reasons such as not being fully established yet or taking small amounts from multiple lenders. These lenders know that a bad credit rating isn’t the deciding factor about whether a borrower will be able to repay them or not. Also, they do not ask for security, which is why it is very easy to get a loan from them. The only drawback is that the rates of interest may be higher than those of traditional loans.

Figure Out What You Need To Help Plan Your Budget

Business FundingIt may sound very basic and simple, but first thing’s first. It is important to chart out your budget plan in an orderly manner to make life easy.

If you’re somebody who prefers doing things the traditional way then gather a couple of pens and notebooks for you to start writing a detailed your budget requirements in a detailed manner.

However, technology has undoubtedly made life easy for many in various aspects and a software like Microsoft Excel can be a user-friendly option. In fact, it may be a tad bit more useful than going forward the traditional way since saving documents on a gadget that is difficult to misplace- such as your laptop or computer- can come in handy.

However, the phrase “to each their own” does come into play here so it is important to choose a method that helps with your budgeting in the way that seems most convenient to you.

Make A List Of Your Costs/ Expenses

Once you’re ready with your tools, list down every aspect of running a business that needs investment, even if it’s something as basic or small as stationery. Prioritizing them from most important to most general can be a good idea. Some costs can be termed assets while the others can be called expenses.

Let’s have a look at your assets: These can include costs like real estate, furniture, gadgets, etc. Your assets aren’t usually tax deductible.

Let’s now take a look at what may be your expenses: Costs like payroll and rent/lease will fall under this category and are tax deductible.

Other costs may include those for your website, marketing , design, etc. that is a good idea to include in a separate list.

Figure Out Your Fixed Costs

Fixed costs are those that do not change on a regular basis because they do not depend on production and sales volumes. Things like rent or lease, payroll expenses, telecommunication expenses, advertising and marketing expenses, insurance, payment of subscriptions, etc.

Figure Out What Your Variable Costs Are

Quite the opposite of fixed costs, variable costs are those that fluctuate as per an increase or decrease in your levels of production. The best example of a variable cost is the raw materials that one purchases to run a business. Apart from that, a few other examples include sales commissions, electricity, direct labour costs (employees who work in the production unit and not administration or other departments of a company).

Monthly Revenue And Break-Even Point

Every business owner looks at earning a profit and if one doesn’t determine his/her budget and expenses appropriately then it can be difficult to achieve what one is looking for. After figuring out your costs, the next step is to estimate your monthly revenue and ROI in order for you to understand when you will reach a point when you start earning a profit. By figuring out your budget and investing it in the right areas, you may be able to reach your break-even point as per your estimation and desire.

Where Can You Get The Funds That You’re Looking For?

It is known that most start-up business owners have around $50000 or less in their bank account, which may or may not be enough to help fund their business. In case it isn’t, applying for a loan is the best way to go about it.

However, it may be a little difficult for an SME to get a small business loan from a bank which is why they can choose to opt for online business loans. Many online lenders offer amounts that are good enough to cover all your expenses and getting a loan from them is way easier than getting one from a traditional lender.

To start with, many of them do not consider bad credit as a reason to deny individuals a chance of getting funded by them. The requirement for collaterals is also not a part of their eligibility criteria which is a huge plus point considering the fact that most traditional lenders do ask for some kind of security in order to provide you with the financial assistance that you need.

However, the rates of interest of such loans may be higher that what may be offered by a bank, but the chances of getting approved and fast is also way higher.

By taking into account the factors listed above, you can plan your budget requirement in a satisfactory manner and understand what investments are most crucial for your business, at least in the beginning. For a start-up, you may want to consider putting a halt on fancy decorative items or other things that aren’t essential to avoid taking a bigger risk than is already involved in starting your business, but without a doubt, the decision is yours.

Take out a few days to figure out your costs and revenue and you will undoubtedly be good to go!

Safety of Bad Credit Business Capital Loans

Trends go to show that bad credit business capital loans are growing in both demand and supply. What remains an apprehension however, is the concern for the safety of such loans. Safety in a loan can be seen as having two prongs:

  1. With regards to repayment ability and the assessment/understanding thereof, and
  2. Choosing the right lender – one that is both legitimate and fair.

One thing is true for virtually every transaction in business – there are risks and there are ways to mitigate them.

Being a trusted and well-established lender of alternate business loans that include services tendered to bad credit score borrowers, at BusinessCapitalUSA we believe in educating our borrowers and being transparent about all risks and concerns that are relevant to borrowing from us. With each risk that we discuss, we share simple, logical ways to protect against them.

With the first few sections ahead, we aim to cover the first point above and in the last section, we throw light on ways to identify trustworthy direct lenders, so that if you ever need to deal outside of our services, you should still know what to look out for.

Bad Credit Business Loans

The Risks associated with Unsecured Loans

If you as a small business owner seek to apply for a business loan and have a poor credit performance history, most chances are that you shall need to look for a non-bank direct lender providing alternate business loans. These are essentially unsecured loans as such lenders are not authorized (at the time of the writing of this article) to provide loans against collaterals.

While such loans are more tempting and also useful in the majority situations, there are a certain number of risks that come along with such a transaction:

  1. In case of repeated failure of repayments and long over-dues, there is a risk of legal action being taken for recovering the loan as there are no collaterals at stake to cover for the loan when unpaid for.
  2. There is a slight possibility of securing a loan amount higher than the worth of the assets or liquid assets of the business, which may need the borrower to consider availability of personal liquid assets in case the repayment is not manageable by the business.
  3. Typically, bankruptcy of a company or personal bankruptcy would not protect against the liability of unsecured loans.

The best and perhaps the only way to mitigate such risks is to only apply for loans that are very likely to be repaid by you or your business as per the laid out time lines. Keeping a back-up plan chalked out for what needs to be done if repayment is becoming difficult, is a good practice.

The Risk in Guaranteed Loans with No Credit Checks

Whether your business is a startup or an established one, many lenders today are dedicated to offering guaranteed loans with no credit checks.

While a lender with healthy and fair practices would attempt to assess the financial health and estimate the financial trajectory of the business before deciding the loan amount that can be offered/approved on a guaranteed basis, there is a limit to how accurately any future predictions can be made.

To mitigate risks associated with such an offer, it is important to disclose accurate information to your lender at the time of application for the loan, and to only apply for a loan amount that is safely repayable.

The Risk specific to Long-Term Business Loans for Bad Credit

A poor credit score can often be a representation of poor understanding of the credit system. It can also reflect poor financial management skills and habits. While in the short run (say 1 to 12 months) income is a fair indicator of repayment ability, in the long run, credit scores are a key indicator that must ideally not be taken for granted.

Long-term business loans for bad credit borrowers tend to be expensive as the high risk loans are high in interest that accrues more with time.

The only way to mitigate this risk is to borrow high risk loans for the shortest tenure that repayment should be workable for and avoid choosing longer term loans over feasible short term loans.

Finding a Legitimate Lender

After understanding the main risks and addressing each one, a loan decision needs to include the understanding of the lender’s legitimacy and fairness in offering loans. High risk loans such as those for bad credit borrowers are bound to be more expensive than traditional loans and are only offered by non-bank direct lenders.

With BusinessCapitalUSA, you can rest assured of being offered a competitive deal for any business loan that you apply for. Years of trusted services tendered to our valued customers gives us an advantage of being experienced in dealing with business from many varied industries.

Easy signs that ensure you’re dealing with a legitimate lender shall include:

  • A contact number and an email ID that are promptly responded to
  • Prominent online presence and good consumer feedback
  • A secured website
  • Years of trusted service
  • A transparent and clear agreement that one receives on successful application of the loan.

If you would like to initiate communication with us for a loan, a simple online application shall be the fastest way forward and you can find it here.

Are Business Loans Hard To Get?

Business loans can be hard to get, especially if you own a start-up or a small business. A bank doesn’t offer loans to all business owners and they see the funding of smaller businesses as a higher chance of a risk being involved. On-deck recently conducted a survey about statistics related to small businesses being denied loans by banks and the results turned out to be a whopping 82%.

One of the reasons why banks deny small businesses loans is because most small business owners may find it difficult to offer collaterals in comparison to larger businesses. Another reason is that the process of approving and providing small and large loans is the same, which is why they focus on catering to clients who need larger sums of money.

Even if an individual wanting to take a loan for a small business (typically less than $2M) has great credit and a concrete business plan, there is no guarantee on getting his loan approved from a bank, especially if they don’t have tangible assets.

In order to get a small business loan, you should know whom to approach. There are a lot of lenders other than traditional ones who are willing to fund borrowers who need fairly smaller amounts of money to kick-start their business.

Business Loans from Business Loan Lenders

There are a few lenders in the market who offer loans specifically to those individuals who need less than $2M to get their businesses running, and start-ups are funded without having to go through much hassle.

These loans are specifically meant for business owners who are denied finances from traditional lenders. It is fairly easier to get funded from such lenders since their demands are very few. Most of them ask for very basic documents which makes getting funded easy.

Business loan lenders such as BusinessCapitalUSA require minimal documentation and criteria to be followed in order for one to get a loan from them. Along with that, they offer various advantages that a traditional lender won’t, including:

  • Online applications- this makes applying for a loan a quick and an easy process. You don’t need to go around hunting for the right lender, waiting in long queues or going through long application procedures that can take hours to deal with. You can apply from at a time and place that’s convenient to you while concentrating on your business instead of where to get a loan from.
  • An elaborate business plan is not required. Basic details regarding one’s business may be asked for just to be sure that the borrower is legitimate. Blue prints, scope, and other unnecessary statistics or information isn’t required.
  • Got anything less than excellent credit? You can still get funded without worrying since that is not a requirement.
  • Collaterals are not asked for which is probably the biggest benefit of the lot. This advantage helps a lot of professionals start their businesses without hesitating about not being funded due to the inability to offer security.

Not everyone today is blessed with the best when talking about finances. Some people may have the capability of starting a business all by themselves and may be confident about succeeding. Nobody should be deprived of loans only because they do not have something good enough to offer as collateral.

However, one must be aware of the fact that such loans demand a higher rate of interest as compared to business loans that you get at banks. That’s basically because the other advantages that they have to offer are plenty which is a plus point for anybody who is willing to spend a little more on a loan that has such benefits.

If you are confident about being able to repay a business loan from a direct lender with the particular interest rate that they charge you and haven’t been granted a loan from a bank for your business, then going ahead and applying for such a loan will do you no harm. However, keep in mind that if you aren’t too sure about being able to pay back the borrowed money on the dates agreed upon by your lender and you, think again before burdening yourself with debt.

Why Applying for a Business Loan Online is a Good Idea

A business has to undergo a lot throughout its tenure. From paying off employee salaries to a large number of bills, they do include a lot of expenditure and the owners may find it difficult to do so all on their own. Here are a few examples of when and why applying for a business loan is a great option for you.

Business Loans

Situation 1- Payroll Expenses:

It is not new news that these days, employees come with an expectation of a salary that can fulfil their daily needs. This means, paying off their rent, EMIs if any, grocery bills, electricity bills, gas bills and transport to name just a few.

In order for one to run a business successfully, you must have enough number of employees to fill in every position that your firm may need. Let’s take a restaurant business for example. Being the owner of one, you will have to take into consideration these various job profiles that will require you to hire employees for the same, for your business to run efficiently.

  • Cashier: Depending on your opening hours, you will have to hire at least 2 cashiers who can take care of the billing.
  • Servers: A food and beverage business definitely calls for a good number of waiters to be hired. You must keep in mind the various job roles a server has to play- from taking orders to generating KOTs and serving the dish to your guests. Some basic restaurants are not very choosy about whom to hire. However, if your target market is the upper class and your menu is expensive, then you should ensure to hire professionally trained butlers- who without a doubt, will charge much more than an individual who is not specialized in the field.
  • Bartender: If your restaurant serves alcohol, there is no doubt that you will need a few bartenders for the same.
  • Accountant: A very necessary job role that very few can pull off. A C.A. or an accountant needs to be hired to manage your revenues, incomes, profits and losses just to name a few basic factors that accounting entails. Apart from that filing taxes, which ones can be waived, etc. are also necessary, which only an accountant can help you get through with.
  • Chefs: Ever heard of “Kitchen Nightmares”? Yes. You do not want your restaurant to be part of that, do you? In order to be able to run for a long period of time, you must factor in ambience, vibe, service and most importantly food! The presentation, quality and taste of your food are all very important in order for your food outlet to be success. To do that, hiring the right people who specialize in the kitchen department is very important; and they obviously will demand a fair amount of money when it comes to their salary.
  • Maintenance Staff: Maintaining good hygiene and cleanliness are undoubtedly very essential. Keeping crockery and cutlery clean and ensuring that the kitchen and dining area are neat and tidy will certainly need a good number of staff which will require you to invest a good amount in.

This was an example of a basic restaurant business, which needs quite a few employees to run smoothly. You should keep in mind that not every day is a Sunday and that some days may be profitable while some may just not be the best, financially. However, in order to sustain you will need to keep your employees and to do that you will have to pay them. These are the time when a business loan can come in handy and be quite beneficial to you and your business.

Situation 2- Equipment Replacement or Investment:

Technology is undoubtedly growing in every aspect and field. That being said, we always want to invest in the best of the best equipment for our business, because they promise a longer duration of sustenance and in general, make life easier while running a business. Let’s take the above example of the restaurant business into consideration once again. Most restaurants these days prefer investing in a deep fryer instead of going the traditional way of heating oil in a huge cooking pot that not only takes a long time to heat but also wastes a lot of time while cleaning it, apart from the fact that it needs to be changed every few months since it gets worn out sooner.

However, even though more durable and long lasting, such equipment can get spoilt once in a while, or you may just want to invest in one that you don’t own yet. These are definitely not cheap which is why a loan can help you invest in a piece of equipment that seems like a good choice for your business.

Situation 3- Renovation of Your Office:

With time, trends, interests and preferences change. Maybe a few years back a certain theme- for example dim lights and recorded music was preferred- and now something that makes the ambience lively and vibrant with a stage for musicians to perform live is preferred for a restaurant. Also, one may want to change the look of their workplace in order to break the monotony. Whatever be the reason, renovation is key for many businesses to do better than they already are. In such circumstances, availing a business loan from a trusted lender can be a good option.

If you have bad credit, it can be very difficult for you to receive a loan from a bank or any other traditional lender. A business loan from a lender like BusinessCapitalUSA can help you solve that problem, since we know that there can be a number of reasons as to why one may have a faulty credit rating especially while trying to run a business. For instance, if you’re still paying back a loan that you may have taken a few months ago, your credit rating may not be the best but it still doesn’t imply that you’re incapable of repaying your lender and may be the case of your repayment term not being over itself.

From taking care of employee salaries to investing in stationery, everything requires funding which may not be very easy to get. In such circumstances, a business loan can be very beneficial and these were just a few of the many examples of such situations.

Business Loans for Human Resource Development

Business Loans for Human Resource Development – Great Intangible Returns for the Long Run

Businesses use debt in many ways in today’s scenario. It is very simple and common for a business owner or another authorized individual to go out there to the market or just browse online and find a loan for equipment purchase, rental payments, upgrades, new store openings and a lot of other such projects or even simply added liquid capital. However, what a lot of business owners tend to overlook, might just be the one that could provide top-notch returns on every dime invested! We here, are referring to Human Resource Development.

What is Human Resource Development?

Human Resource Development, or simply HRD in simplified business terminology, can be explained as a planned approach to enhance competencies in individuals and groups at a workplace/organization through learning activities. The aim of any initiative within HRD, is to ultimately ensure progress of the employees (the Human Resource of an organization) in a way that is useful to the business and individuals too – at a professional level.

Examples of HRD activities/initiatives may include educational programs, team building activities, fitness programs, time management training, support for qualifications and certifications, career guidance, cross-training and so on. HRD can be most effective when planned right and executed as per plans, that and be reviewed periodically keeping the progress in mind.

A great example we could give you from a past borrower of ours is, of a company that works as a logistics consultancy firm (name undisclosed as requested). The start-up company, just a few months old, took wonderful advantage of the fact that we ask no questions about where our clients invest until the time that they choose to leave a feedback. They used their loan from us at Business Capital USA to train their front line sales team in negotiation from a very reputable but equally expensive consultancy service. In a few months, the manager dealing with us was so happy about his team having cracked a lot of deals at amazing prices, that it drove him to call our team to specially thank us, which is one of the biggest things that keeps us as lenders, motivated to do our jobs well.

Who in an Organization Plans & Executes HRD?

Typically, larger organizations tend to benefit from a team dedicated towards planning and executing HRD. Smaller businesses might integrate this role with HR management, training management or the general management of the organization. We have served a company where the business owner himself did the task, possibly without even knowing that what she’s doing, is known in today’s business world as HRD (we say this because we later introduced her to the term after hearing about the experience and benefit her business had, through the initiative).

Why Investing in HRD can make your Money Grow Faster than the Interest Rate of your Loan?

Generally, it is safe to state that the goal of taking a business loan is usually to be able to generate an output from the money borrowed that is higher in value than the loan amount plus the interest that accrues from it. In simpler terms, a stakeholder in a business would like to see the loan money directly or indirectly grow into an amount larger than the loan’s payback itself.

Unlike equipment, liquid cash capital, refurbishment and other traditional investments of loans, HRD is an intangible investment. This is perhaps the reason why it often gets overlooked. However, the monetary and non-monetary gains that an organization can get out of having better skilled employees who work even better as a team, stay fit (hence requiring less leaves due to sickness), manage time efficiently and are greater at selling or producing what they are intended to, can be remarkably huge.

In our example from the past where the logistics company managed to bag multiple great deals thanks to a training in negotiation, if we assume that a training came at a cost of $2,000 which was financed by a loan which came at a total cost of $2500 and it resulted in an average of $500 increase in each negotiated contract value, in a matter of just 5 such sales, the loan amount was covered and every sale thereafter, was simply profit from the loan for the business, virtually coming out of the thin air! This is a scenario that is well plausible in today’s business environment and a lot of organizations of all sizes and industries are today able to utilize this and reap wonderful, lasting benefits.

 Further Reading

How to Provide the Best Professional Development Opportunities for Your Team – Bonus.ly

5 Easy Steps To Getting A Business Loan

Like any other small business owner, you want to see your business prosper. Besides, wise and timely business decisions are imperative to increase your business capacity and generate profit. It is understandable that any business, irrespective of the type of industry, is prone to fluctuations. Occasionally, your business may be in surplus and you want to reinvest in your business by hiring additional staff, expand to another location, add a new service or product, and grab a money-spinning opportunity. It may also be that your business needs extra money to get the necessary equipment repairs done, buy new equipment, pay for employees, or deal with any other day-to-day costs. However, to stock up your resources, you may need money from an external source, which is usually challenging. If you are already exploring business funding options, then you may consider a business cash advances from direct lenders online.

What is a Business cash advance? 

Business Cash Advance or Merchant Cash Advance is a straightforward or reliable funding alternative to business loans from banks.  It is unsecured financing against future sales of your business. With a simple online application and approval in minutes, you can receive up to $500,000 for any business purpose in as little as one business day. Thus, it offers quick access to small business financing with reasonable requirements.

Business Loan

Here’s how to obtain a business loan/merchant cash advance in few simple and easy steps:

1) Determine the need for a business loan

There are several reasons to avail small business financing. It may be for growing your business, deal with daily business spending, or merely having a secure financial cushion. However, you have to decide what exact business purpose you need money.

2) Choose the right type of loan for your small business

You have a vast choice when it comes to choosing the loan type, as each funding option is designed specifically to suit individual business requirements. Accordingly, there are women’s business cash advance, business working capital, equipment financing, business invoice financing, business expansion loan, etc.

3) Deal with the genuine cash advance loans lender

You can either opt for conventional lenders or alternative online lenders. However, financing a small business is increasingly becoming difficult given the stringent lending standards by traditional lenders such as banks and credit unions. Whereas, a business cash advance is the best financial option if you lack assets to pledge, want speedy approval decision, need funds quickly, and desire convenient repayments.

4) Check whether you qualify for a business cash advance

Realize that, getting approved for bank loans needs an outstanding credit score and collateral. However, eligibility criteria for the business cash advance are relatively simple and easy. With at least 1 year in business and a minimum of $15,000 in monthly revenue or steady monthly cash flow, you can improve your chances of qualifying for funds even without collateral and excellent credit.

5) Submit your documents and sign the contract

Subsequent to narrowing down your funding option, apply for a suitable loan that suits your business needs. Depending on the type of lender, you may be asked for various document combinations. However, if you are considering a merchant cash advance, you may be asked for bank statements of the past three months, lease agreement or landlord contact information, and credit card transaction processing statements of the past three months. Finally, read all the terms and conditions carefully, understand them clearly and then sign the loan agreement.

Explore when and why you should consider Small Business Loans.

Small business needs improvements occasionally and it also true that it takes money to make money. Hence, depending upon the type of industry, a small business may involve working capital to reinvest in business by buying equipment, covering marketing and advertising costs, managing cash flow; placing in real estate, etc. However, small business loans can facilitate in financing both the anticipated and surprising shifts in your business and thus enable you to reap high returns.


Know how Small business funding is a smarter option and taking it can help your business grow:

Buying equipment or machinery

Exceptional business performance may require some or the other improved equipment or machinery to complete the job. At times, having got the required equipment appears insufficient as the costs of unforeseen repairs or replacing of defective equipment can go beyond your planned budget. Additionally, broken machinery can result in delayed services that in turn can ward off your potential customers. Thus, dent the business credibility, gradually. However, when considering equipment, you have options- to buy or to lease it. A straightforward cost-benefit breakdown can help you make a wiser and quicker financial decision. Small business funding, apart from aiding you to deal with equipment costs competently, it also serves to hold your business coordinated with the technical advancements.

Expanding your business operations

If you are aware that your small business is flourishing and it has exceeded your present office location, then it is time for expanding your physical location. However, realize that expanding business means hiring additional staff, increased advertising costs, renovations, etc. If you lack decent funds for such a big shift, you can also consider loans for small businesses for putting in an opportunity to expand. Yet, employ a revenue forecast and determine how the supposed expansion would influence your business before buying a second location for your business. Since purchasing real estate is a healthy business indicator; banks can easily approve your loan request. Nevertheless, if you want convenience and fastness, small business funding from Business Capital USA is your best bet as it maintains your business operational costs undisturbed.

Purchasing additional inventory

Addressing inventory costs is often a challenge for many small business owners. In order to sustain the customers’ growing demand and allow uninterrupted service to them, you constantly need to refill your inventory with ample options. This turns even harder to handle when your small business is a seasonal one such as a retail business. Moreover, buying bulk inventory without even gaining the return on investments can is high-risk. A well-established sales projection can render ease and confidence while making this unmanageable financial move. As a small business, you can make the most by applying for a small business loan prior to the holiday season and repay conveniently with the sales profits from the recurring sales. Thus, opting for small business funding can easily make up for the chief expenses- inventory overheads.

Boosting working capital

Holding a steady cash flow is not possible always. Sometimes, you need extra money to address routine business operations. Cash flow issues can turn more intense when you have unsold inventory, rent, staff, utilities, etc. to deal with regularly. Such a scenario demands small business funding to cover up the working capital requirements until the business’s earning assets recover substantially. Availing loans for small businesses can thus extend the necessary financial cushioning during periods of low sales.

Small business loans can thus grant a greater prospect to retain cash flow throughout the low business season, deal with usual operational costs, compel revenue, compensate for losses, preserve customers, etc. Moreover, it also offers ease of application, speedy online processing, and quick funds transfer.