What You Need to Know About a Small Business Loan Application

Believe it or not, every small business loan application doesn’t have to take up a few weeks of your life. Not every lender will require perfect credit, a complicated business plan, and pages and pages of documents just to tell you whether or not your business is going pay rent this month. Occasionally small business owners find themselves in a financial tight spot. That’s a simple fact of doing business. What’s not a fact is that the major banks, SBA and fast cash merchant cash advance companies are your only options for a small business loan application. Read on to learn what other small business loan applications options you have.

The Good and Bad of a Small business Loan Application from a Bank

If you have ever tried to fill out a small business loan application from a traditional bank, you may already understand the headline. If you haven’t, allow me to fill you in. Banks place heavy emphasis on the entrepreneurs personal as well as business credit, in addition to many other factors. For some business owners, a few missed payments on a credit card can be the difference between receiving funding and being left out in the cold.

Most banks will also want years’ worth of tax returns and other documents for their loan application. They will spend weeks analyzing the data, slogging through every decision you have ever made. You will also need to explain exactly how every penny of the loan will be spent in advance, and detail it in a business plan.

Banks will also require a list of collateral and capital that you are willing to risk on the loan. Should your business run into hard times, you may find the delivery van that you need to run your business has been taken away by the bank.

Finally, after the banking crisis of the last few years, many banks are still feeling the after effects of their poor lending policies that led to the near collapse of the economy in the first place. This can make it difficult to simply find a bank that is accepting small business loan applications at all.

I don’t want you to think that bank loans are all bad. Quite the contrary, banks provide some of the cheapest and safest working capital a business owner could ask for, which often more than makes up for the inflexibility of the loan application process.

What about an MCA or alternative loan for small business?

An MCA (Merchant Cash Advance) is a very different form of lending. To qualify, most lenders require you to have been in business for more than a year, as well as a minimum monthly number of credit card transactions. While the terms and process are much more flexible than a small business loan application, the price tag for the capital can vary widely from lender to lender.

MCA’s are not technically a loan; rather, the lender purchases an amount of future credit card sales your business is expected to make at a discount. Because of this, the loan is repaid in micropayments as credit card sales are made. The advantage to this is there are no large monthly minimums to meet. The disadvantage is a slightly higher overall cost unless the lender has access to inexpensive capital and can provide a discount on merchant account services that will further offset the cost.

Unsecured loans, while sometimes more expensive, often have a much simpler small business loan application process. The trade off is the possibility of slightly higher interest rates to cover the risk of the loan. Because of that, it’s best to find a company that offers a lowest rates guarantee during the small business loan application process. Shopping around can help you save a substantial amount.

So what are your options?

Choosing the right option really depends on your situation. If you can afford the extra time and resources necessary to get a traditional small business loan, then perhaps it really is the best option for you. If you have less than perfect credit or believe you may have a few slow months coming soon, a loan based on cash-flow or an advance on your credit card sales may be the best option. In the end the key is finding a reliable bank or lending company that you can trust to help you find the right solution

Steve R. Johnson is a small business finance adviser for Performance Commercial Capital in Irvine, CA. Performance Commercial Capital specializes in small business financing, including: loans, merchant advances, factoring, and more, so we can offer you the best option for your company’s needs.

Various Options for Small Business Loans With Bad Credit

Though the lending for small businesses are reaching the highest point in the curve, still there are challenges that many small business owners with bad credits face. Many banks and financial institutions are still not ready to lend a loan for small business owners with really a bad credit rating. Though many companies have valid reasons for having a poor credit history, those are not still considered by the banks. For example, during recession time, especially in the year 2009-10, many small businesses failed to pay their vendors or faced problems in correcting their cash flow issues. The bad remark on any company may take years to get corrected. In the meanwhile, the company may require some kinds of loans. Luckily, there are many lenders other than banks who are ready to sanction loans even if the small business or the business owner has a bad credit score.

Funding Options for Small Business Loans with Bad Credit

There have been studies conducted which shows that only 25% of bank loans or credit card options have been sanctioned to small business owners. This means there are many other options available for business owners other than these, which is really a comforting fact for many.

Home Equity Loans

To start up a business and build a credit score on it would take months together. In the meanwhile, a small business entrepreneur can apply for a home equity loan if he or she owns a home. But while applying for such a loan, one must think about various risk factors involved in the business, as he or she is pledging the home.

Merchant Cash Advance

This is a very short-term loan which is approved to a business owner in a lump sum against the business’s few future credit-card or debit-card sales. These loans are sanctioned for a short-term, generally for 24 months and the payments can be made in small installments, usually on each business day. These kinds of loans are not like regular bank loans where one needs to pay in lump sum every month and for a longer period of time. Many financial institutions which sanction such loans approve the loan application within 48 hours and the person applying needn’t have excellent credit rates. The only drawback in such loans may be the high rate of interest.

Family and Friends

Seeking loans from family and friends is also a good option. According to statistics, about 50% of families and friends like the idea of small business and entrepreneurship, and come forward to help someone in the business. This is a very good option as no relatives or friends look into credit scores before giving a loan, as they believe in one’s character.

Lending from Suppliers and Vendors

Many businesses thrive on one’s vendors and suppliers. If the supplier is ready to supply products on credit and then report to the credit agency, then it is going to be a good option to improve the credit scoring. But the credit scoring will improve only if payment is done on time.

Business Credit Cards

Business credit cards help a businessman to improve his credit scoring and at the same time get finances to improve his business.

Microloans

Many non-profit organizations and online non-bankers lend microloans to entrepreneurs anywhere between $5000 and $50,000. These loans are specifically designed for women and minority entrepreneurs and also for companies who work for economic empowerment zone. These are really excellent for people with a low credit score, but with a higher rate of interest. But, compared to credit cards and other loans the rate of interest is nominal and affordable.

These are a few loan options for small businesses with bad credits, which may help one to either start a new business or develop an already existing business with confidence.

Things Everyone Should Know Before Experiencing Pedicure Magic

On an average day, one person can take up to 10,000 steps. Although it’s good for the heart, those many steps can be bad for the feet. Treating the doggies to a pedicure is about more than just smooth skin and painted toenails – in fact, pedicures offer various benefits to the body.

1. Increases Blood Circulation
During the pedicure, most spas or nail salons massage the feet. The foot massage allows for the tendons in the foot to relax, causing circulation to increase in the feet and legs. This alleviates tension around the ankle and heel and offers some relief after a long day of walking or hiking.

2. Exfoliation
Exfoliating the feet removes dead skin cells, which are the culprits for corns and bunions. Since exfoliation removes dead skin, new skin on the foot can regenerate, particularly on the heel. This process will give feet a smooth and soft look.

3. Keeps Feet Moisturized
Pedicurists use oils and lotions to massage into the skin of the feet. This process will help keep feet moisturized, especially after exfoliation. Overall, it prevents cracking heels or excessively dry skin around the toes.

4. Prevents Infections
Toenails are a breeding ground for fungi, which is why cleaning and clipping toenails during a pedicure are important. A good foot scrub will remove bacteria from the feet and toes, which will prevent infections such as athlete’s foot.

5. It’s Relaxing
The human foot contains 33 joints, 26 bones, and more than 7,000 nerve endings. A foot massage helps to relax the body, which reduces stress and releases toxins. Some pedicurists may also practice reflexology which is an alternative therapy believed to operate different parts of the body using trigger points on the foot.

When To Say No To A Pedicure
The benefits of a pedicure far outweigh the negative. However, there are times when safety has to come before beauty. Potential reasons that a client should postpone an appointment include:

– Open sores on the heel or bottom of the feet
– Unexplained bruising
– Rashes or bumps
– Visible signs of toenail fungus

It’s important for those who suffer from diabetes to pay close attention to their feet. This is mainly because an infection can raise blood sugar levels. If a pedicure appointment is already scheduled, it’s common courtesy to call within a 24-hour period.

Finding the Right Salon
A person can tell a lot about a salon from a first impression. A great way to experience the staff of the salon is to go there and get a feel for the atmosphere. Other things to search for include:

– Visible esthetician license(s)
– Clean workspace
– Well-maintained equipment
– Clean tubs and water

Remember, a pedicure is meant to be fun and relaxing. A part of that is determining whether a salon can provide their customers with top-notch service.