How To Get Emergency Business Loans

Have a business idea and want to see it come to reality as quickly as possible? Then, you are right in need of Emergency Business loans. Running out of time on execution and can not wait for regular verifications, sanctions, etc. for a business loan are some of the reasons why you end up taking…

Have a business idea and want to see it come to reality as quickly as possible? Then, you are right in need of Emergency Business loans. Running out of time on execution and can not wait for regular verifications, sanctions, etc. for a business loan are some of the reasons why you end up taking emergency funds for your business. There may be any other form of emergency in your company like underestimation of a project's budget overestimating its profit, losing a client etc.

Facts about Emergency loans for your Business

Availing an Emergency business loan does not affect your credit score, but while applying your personal guarantee is a must. Approval of emergency business loans severely takes a day. After approval the transfer of funds happens within 1-8 business days. Unlike bank loans your credit history is not desired when you are applying for Emergency business loans. There is a threshold revenue that a business is to have, to avail an emergency loan for his / her business. Even though credit scores are not required they sometimes require a complete history of the business within the past year or some specified time period.

Alternatives

Sometimes emergency business loans may come with a higher rate of interests on the business loans as compared to the loans offered by a bank. This may lead you to search for other options for getting money for establishing your business or keeping it alive or in case of any other emergency.

Two of these many alternatives include:

· Line of Credit

If you happen to know the bank well, which handles your business account or you have a good relationship with them, then you can ask for a line of credit. Even though this is not an immediate approval of loan, it may turn out to be useful for financing your businesses future emergencies at a lower interest rates than those offered by emergency business loan providers.

· Friends or family

Even though people think lending money from your close friends or relatives ruin the bonds of relationship, it is advisable to ask for funds from them if all other options are ruled out and you know that the problem can certainly be solved with very little risk. These may be tricky to get but once you receive the funds, then repayment is something that can be adjusted at times.

It is a known fact that emergency money lenders are absolutely going to charge a high rate of interest when no one else is willing to provide a business loan in such emerging. And this is something you do not want to have at the moment when your business might already be struggling for its survival. Go for this only when you are confident enough that with this loan your business will flourish and it will generate enough revenue to repay the lender on time.

If your company is tough and has a solid history to give to the moneylenders then obtaining an emergency loan will not be as difficult as it would have been otherwise. Once you receive the funds, all you need to do is work hard and repay it in time

What Type of Financing Loan Should I Apply For Small Business?

This question often plagues small business owners. Funding is not hard to come by these days but there are always strings attached, especially to unsecured sources of funds. This type of funding is available with no need to furnish guarantee or collateral and may tempt business people who are faced with cash crunches every now…

This question often plagues small business owners. Funding is not hard to come by these days but there are always strings attached, especially to unsecured sources of funds. This type of funding is available with no need to furnish guarantee or collateral and may tempt business people who are faced with cash crunches every now and then.

There are other options as well. One can just approach family and friends if the amount involved is not large. However, this may not be the best business financing option. Loans that take days or months to process and require collateral are best given the go by. SB owners need cash immediately and that too without any collateral. Before one applies for such loans one must know how to apply small business finance methods.

First, one must assess the business position. It is necessary to know about repayment capabilities and whether such repayments would imposes a fresh burdens or whether deployment of finance would result in greater cash flow that would take care of repayment of installments. Smart businessmen will find out the position of creditors and debtors and if they have funds coming, they know the loan will not cause a burden. Smart businessmen may also make use of financing for business to expand business and prepare a solid plan for implementation of funds. Businessmen who simply apply for and get loans to pay off debts may find themselves in deeper trouble unless they have a plan or get advice from experts on using finance to get out of an untenable situation. This done the next step is to know how to apply.

One can just walk into the offices of a business finance lender. This means putting aside one's regular business. The process could be extended over several sessions that involve waste of further time. Lenders may ask for a variety of documents from the borrower. The much better way is to apply online. The process is simple enough. One finds a suitable lender ready to provide funds for working businesses at short notice without any security. Just fill a form on the website and submit it. The lender gets in touch with the borrower and requests for scanned copies of proof of residency, proof of business ownership and copies of bank statements to submit along with the online form. One may specify the purpose for which the funds are needed but it is not necessary for approval of the loan. One thing to keep in mind before initiating the final application process is to find out the processing charges and upfront fees charged as well as the rate of interest. Some lenders of unsecured loans may ask for interest that could be as high as 50%. 20% is a fair rate.

This done, it takes a maximum of 3 days for approval and a day more for disbursal of the amount directly into the bank account of the borrower. It is that simple.

Industrial Real Estate Market, Set To Create Record Breakthroughs in 2017

2016 was truly a record-breaking year for US's industrial real estate sector. The previous year saw this sector's demand outpace its supply, and this trend is not slowing down in 2017. Because of this bullish trend, the sector's vacancy rate has driven down to 5.8 percent-this was the figure, which was released by JLL Industrial…

2016 was truly a record-breaking year for US's industrial real estate sector. The previous year saw this sector's demand outpace its supply, and this trend is not slowing down in 2017. Because of this bullish trend, the sector's vacancy rate has driven down to 5.8 percent-this was the figure, which was released by JLL Industrial Investment Outlook, in the third quarter of 2016.

Interesting finding

Because of this trend, the landlords are preferred as the rates of rents rose up to 8.2 percent when compared with those in 2015. Seeing this trend, the investors-are grabbing the opportunities to buy real estate in this expanding market and leveraging the private sector financing via commercial mortgage lenders.

In the industrial real estate sector, the year-over-year investment is down by 28.9 percent from the third quarter of 2015, but the total investment volumes look to be on track because they're all set to create the second-largest tally since the Great Recession.

Due to this, 2017 has a few uncertainties as far as the industrial real estate is concerned. However, the overall outlook of this sector continues to appear optimistic. The mix of uncertainties and optimism defying today's real estate sector has motivated us to give you five top factors that'll drive the industrial real estate's demand this year.

Trends that¡¯ll shape 2017's industrial real estate

Reviving infrastructure

The buzz about the rising infrastructure spending in the US is growing. And the growth of the spending has seriously become faster after Trump has expressed its interest in strengthening and improving infrastructures, such as roads and bridges. And it is a no-brainer that a growing infrastructure spending will surely create a rippled effect on the mighty industrial real estate.

Evolving urban logistics and e-commerce

E-retailers are working pretty hard to ensure that their supply chains are streamlined so that goods are always delivered to end-consumers quickly and cost-effectively. These e-commerce players are continuously finding innovative distribution centers that can feed a consumer's e-commerce appetite today. In the second part of 2016, the e-commerce growth was one of the key factors that pushed down the American industrial market's vacancy to less than 6 percent. And this vacancy is continued to decline even more in 2017. A good case in point: Distribution and Marking Services Inc. leased nearly 350,000 square feet of Wonderland Industrial Park's space in California. The site's strategic location to speed up the move-in was very critical. So in the future, more of such shifts may happen, which will certainly improve industrial real estate's growth prospects.

Ports may reap a number of benefits from the updates in infrastructure and e-commerce

Swift growth in e-commerce is expected to contribute to reviving America's port systems. As the demand for warehouses and mixed infrastructure strengnthens, US ports may reap benefits too. The coastal ports in New York and Los Angeles are the favorites for many leading players in today's industrial sectors. And with repurposing obsoleste terminals and increasing infrastructure spending, this year could be the one when the Mississippi waterway reclaims its glory within the global supply chain. Because of such factors, the demand for industrial real estate in this sector is expected to grow.

The institutional investor's interest goes sky-high

When it comes to making sizeable investments, industrial real estate gives its lenders super-lucrative opportunities. So if you're a lender looking to improve your commercial capital, then speculate in the industrial realty sector. In fact, as per educated guesses from leading real-estate pundits, the sale volumes of year-end industrial investment can cross the $ 45-billion mark. Every time, the high-volume investment activity is indicative of the asset class's capacity to weather financial, political, and economic uncertainties.

Creative industrial realty development is rising

The unpresented demand for industrial real estate and the push to improve delivery services may easily influence development across the US. This development may further persuade a lot of companies to find a space in secondary or even tertiary markets. Because of this, small-sized urban-core warehouses, reconverted assets, fulfillment centers, and multistory warehouses can easily become solutions for several businesses this year.

As there are many changes taking place in regulations and policies related to trade, transportation and storage sectors may easily get affected. Neverheless, the fundamentals remain, like always, strong. The construction and infrastructure are doubtlessly looking promising owing to the growth of e-commerce. Because of all these driving factors, we're pretty optimistic about the prospects of industrial realty sector flourishing in the coming time.

Why Buy When You Can Rent

“Rent money is dead money” … or so the saying goes. But when you do the sums, the reality is quite different. Like any financial decision, there are costs and benefits associated with financing, buying and renting, and contrary to what you might expect financing or buying does not always come out on top. Here's…

“Rent money is dead money”

… or so the saying goes.

But when you do the sums, the reality is quite different.

Like any financial decision, there are costs and benefits associated with financing, buying and renting, and contrary to what you might expect financing or buying does not always come out on top.

Here's what you need to consider: –

  • Preserve your cash flow

Rental preserves valuable capital to be used for other critical investments. (Economist's call this opportunity cost of capital)

Instead of the traditional ownership model that can bring many hidden costs, rental enables your business to align IT expenditure with your overall strategic plan.

Customized payments cycles simplify budgeting and administrative tasks. (the ability to expense the full opex may bring additional tax benefits to your organization)

Payments can be designated as an operational expense, allowing you to track costs by department, accurately measure expenditure, and simplify the allocation of resources.

  • No security required

Rental products does not require security in the way of a mortgage or GSA, enabling you to leverage those assets more effectively to support business growth.

  • Seamless acquisition

Intermittent acquisition of IT & T assets may be unavoidable, however with a rental limit in place, acquiring additional equipment is seamless and efficient.

A Master limit can be established with signatories allocated for future schedules capable to be signed by designated authorities rather than directors or the board.

  • Easy upgrades & Flexible end of term options

Renting provides you with the flexibility to make changes during the rental period, upgrade to the latest equipment to meet the growing needs of your business, and shift the risks associated with asset ownership to the rental provider.

End of Term flexible options include;

  1. Return the goods with no further obligation;
  2. Make an offer to purchase at fair market value; Egypt
  3. Continue renting the equipment on the same or discounted terms.
  • Reduction in storage costs

Rental means no more chairs and costs associated with storing obsolete equipment, data sanitation and / or disposal.

  • No Residual Risk & more cost-effective solution

90 days out from the contract end, you can decide to: With a Rental, there is no end of term residual or balloon payment risk for you.

The Rentor (Lessor) takes any temporary risk & thereby reduce the rental payments you will make through the term.

With the Lessor taking any temporary risk, the reduced payments will mean a much cheaper solution for you (implicit rate) than traditional loans / chattel mortgages.

“If it appreciates buy it, if it depreciates rent it”

Factoring – New Kid on the Block

What is Factoring? Factoring is commonly referred to as accounts receivable factoring, invoice factoring, and sometimes accounts receivable financing. Accounts receivable financing is a term more accurately used to describe a form of asset based lending against accounts receivable. FCI is the global representative body for Factoring and Receivables Finance Industry. FCI has two main…

What is Factoring?

Factoring is commonly referred to as accounts receivable factoring, invoice factoring, and sometimes accounts receivable financing. Accounts receivable financing is a term more accurately used to describe a form of asset based lending against accounts receivable.

FCI is the global representative body for Factoring and Receivables Finance Industry. FCI has two main activities and value propositions:

  • FCI facilitates and promotes International Factoring through a Correspondent Factoring platform.
  • FCI is the Global Industry Association for Open Account Receivables Finance

How does it work?

Customer makes a sale, deliver the product or service to a buyer and generates an invoice. The factor (Financial Institution), then, buys the right to collect on that invoice from that pre-agreed buyer and pays usually 80% -90% of the invoice value to the customer. This payment to the customer is made as early as the next business day on receipt of such documents.

What are the required documents?

Apart from documents required for Factoring Limit assessment, which are similar to loan appraisal documents, following documents are required at the time of factoring-

  1. Lorry Receipt / Air Waybill / Bill of Lading (B / L) with Certificate of Origin
  2. Packing List
  3. Invoice
  4. Bill of exchange

What is the Cost?

Typically, a one-time processing fee and an interest charge is levied for a factoring transaction. Sometimes, a service fee is also levied which is calculated as a percentage of the value of the invoices factored.

What are different types of Factoring?

  • Disclosed – Buyers' are notified of the factoring agreement.
  • Undisclosed – Buyers' are not informed of the factoring arrangement. Customer (You have) has to pay the amount to the factor irrespective of whether customer has paid or not.
  • Recourse – Customer (You collect) collects the debts from the Buyer. If the buyer does not pay the amount when due, factor will recover the amount from the Customer (You).
  • Non-recourse – Factor undertakings to collect the debts from the Buyer. Balance amount is paid to customer on due date or when the buyer pays the factor which is earlier.

Advantages over Conventional Source of Working Capital Funding

  • Collateral security usually not required.
  • Value added services in the form of sales ledger administration, collection & credit protection, Possibility of outsourcing your receivables collections process, allowing you to focus on core competencies.
  • Customer's (Your) “limits” grows as your business expends.
  • Factors provide free back office support, including managing collections from your customers. This gives you more time and resources to focus on growing your company. Factoring is based on the quality of your customers' credit, not your own credit or business history.

7 Steps to Get A Business Loan

Before the hard strike of the Great Recession, it was a lot easier to get business loans. You have to meet certain requirements before the lender can grant you the loan. Given below are 7 steps that you may want to follow when apply for business loans. Read on. Develop a relationship with the lender…

Before the hard strike of the Great Recession, it was a lot easier to get business loans. You have to meet certain requirements before the lender can grant you the loan. Given below are 7 steps that you may want to follow when apply for business loans. Read on.

Develop a relationship with the lender

Before you even need the loan, you may want to develop a relationship with the lender. The main people should get familiar with your business. Keep in mind that lenders like to do business with trust worthy people. So, let them know as much as possible about your business.

Purpose of the money

You may want to decide on the purpose you applied for the loan for. Make sure you are going to get a loan for a good purpose. For instance, you can get a loan to buy equipment, property or software. However, it's not a good idea to get a loan to finance losses or to get unimportant business assets.

Business needs

You may want to make an assessment of how much money your business needs. If you have a small business, you may not want to apply for a large loan. However, make sure you do not underestimate the money you need to keep your business running. Both underestimating and overestimating can cause problems down the road.

Credit score

Typically, lenders consider the personal credit of a businessman before granting the loan. So, make sure you have a good credit rating. If you have a bad rating, make sure you work on it to get it in good standing.

Finding the lender

You may want to read up on the type of lender that will best suit your business needs. For conventional loans, you can go to commercial banks. However, their parameters are strict. Non-bank lenders is another option that you may consider. Then there are specific lenders that include banks and other institutions that are interested in economic development in those areas. Lastly, you can check out crowdfunding websites especially if your capital needs are not over $ 10,000. For personals, you can also check out peer-to-peer websites, such as The Lending Club and Prosper.

Loan application package

You may want to get the loan application package ready. This includes the documents submitted so as to apply for a business loan. Generally, it includes a business plan, profit and loss statements, balance sheets, and cash flow statements, just to name a few. You may want to keep in mind that lenders may also check out your social media pages while doing their research.

Hang on

Once you have submitted the required documents, you may have to wait for 15 to 30 days for a response from the lender. You can check in on a weekly basis for an update. Typically, lenders may require additional documents before granting the loan.

So, if you have been thinking of applying for a business loan, we suggest that you follow the steps explained in this article.

Financing a Craft Brewery Through SBA-Guaranteed Loans

It is often difficult for a startup to receive loans from local, regional and national banks. The Small Business Administration has become an alternative option for startups to receive funding. The Small Business Administration was founded on July 30, 1953 and provides loans, loan guarantees, and other assistance to small businesses. The SBA has a…

It is often difficult for a startup to receive loans from local, regional and national banks. The Small Business Administration has become an alternative option for startups to receive funding. The Small Business Administration was founded on July 30, 1953 and provides loans, loan guarantees, and other assistance to small businesses. The SBA has a variety of programs depending on the borrower's needs. Two programs that have been helpful for small craft breweries are the 7 (a) and CDC / 504.

The SBA 7 (a) is the most common loan program. To be eligible for assistance businesses must meet certain criteria. The business must operate for profit and be small. The definition “small” varies by industry and is based on the size standard of that industry. Small business size standard represents the largest size a business may be to remain classified as small and is stated by the number of employees or average annual receipts. Breweries size standards in number of employees is 1,250. The business must also be in the United States, have reasonable invested equity, have alternative financial resources, and use the funds for a sound business purpose. There are also a list of ineligible businesses listed on the SBA website. The 7 (a) loan can be used for a variety of finance and business purposes. Some of these include short-term or long-term working capital, purchasing equipment, machinery, furniture, supplies or materials, purchasing real estate, constructing a new building, refinancing existing business debt, or establishing a new business. The SBA does not set a minimum loan amount but has a maximum loan amount of $ 5 million. The fees vary depending on the loan amount. They can range from 0% for loans under $ 150,000, 3% for loans $ 700,000 or more, and up to 3.75% for loans of $ 1,000,000 or more. Interest rates are negotiated between the applicable and the lender and can include both fixed and variable interest rates. The SBA can guarantee as much as eighty-five percent of loans up to $ 150,000 and seventy-five percent on loans of more than $ 150,000.

CDC, community development corporation, are not-for-profit organization incorporated to provide programs and engage in other activities that support community development. The CDC / 504 Loan Program is primarily used to provide financing for major fixed assets. This can include the purchase of land, existing buildings, construction of a new facility, improvements to the building, or long-term equipment. It can not be used for working capital or inventory. This loan is good for a brewery that is only seeking fund for brewery equipment or improvements on the building. For a CDC / 504 program, a bank partner will provide 50% of the loan, a CDC will guarantee another 40% of the loan, and the remaining 10% is borrower equity. However, in some circumstances the borrower may be required to contribute up to 20%. The loan amounts are determined by how the funds will be used and rates are fixed. Unlike the 7 (a), the CDC / 504 is limited in what it can be used for and may not be the best option depending on what the brewery needs the funds for.

There have been a few breweries that have found success using the SBA for loans. One in particular is Upstream Brewing Company. Upstream Brewing Company was able to get a SBA-guaranteed loan from a national bank for $ 750,000 to pay for a new brewhouse, equipment, and furnishings for a new location in Omaha. They had success for many years and when they were ready to renew their lease they looked into purchasing the property outright. Upstream Brewing Company reached out to another approved lender under the SBA for a 504 loan. They were able to be approved for a $ 1.4 million 504 loan in 2012 to purchase the location. Brain Magee, president and owner of Upstream Brewing Company, said that without the help of the SBA's 504 loan program, it might not be a stretch that Upstream Brewing Company's west Omaha location would have vanished from the scene.

Based on information in “Entrepreneurial Finance”, by Steven Rogers, there are several ways for improving your chances as an entrepreneur in obtaining an SBA-guaranteed loan. One way to do this is by ensuring you have good credit history and no personal financial problems. Having an excellent business plan that outlines realistic goals and forecasts can increase the likelihood of receiving a loan. Utilizing other services and programs such as Small Business Development Centers (SBDCs), SCORE, and Small Business Learning Centers can help with management and technical assistance, business plan preparation, and training tools.

Invoice Factoring Financing – Whom Should You Trust?

It's a big world out there and finding the best invoice factoring financing company might not be an easy task. Even after you have considered the pros and cons of various agencies, funneling out the best one requires more than your judgment. Assessment of your needs and keeping a bird's eye view of the available…

It's a big world out there and finding the best invoice factoring financing company might not be an easy task. Even after you have considered the pros and cons of various agencies, funneling out the best one requires more than your judgment.

Assessment of your needs and keeping a bird's eye view of the available options may help you in short listing some of the best names in your region. However, what should you finally trust.

Look for a reputed company – It's important to work with reputable companies only. They have the experience and expertise to deal well with a client. You may find many lenders once you begin your search for a factoring agency, but not all follow the right approach. It's not just invoice processing and cash transferring; the agency must be capable of dealing with situations when things start going south.

Therefore, look for a commercial bank lender that is well known for its business solutions. Not only do they have the right management to aid you with cash-crunch problems, but there are lots more ways where they can be of great help.

Whether or not they are offering other lending programs – Once your business grows, you would start looking for other types of lending programs rather than just factoring. Business owners who consider the future would know that they can not depend only on invoice factoring for all their needs. Once their business grows to the next level and there is a bigger loan to pay, they will need to check the possibility of including other lending programs.

As a futuristic player, you must understand the benefit of collaborating with an agency that must specialize in other lending programs as well. Asset-based lending, trade finance, equipment financing, credit insurance, and a lot more fall into this loop. Make sure that your factoring business offers you the scalability to avail different kinds of money lending services if need be.

Constant cash flow is the key to a healthy and prosperous business. This must not stop no matter what kind of situation you are dealing with. Invest only in the Invoice factoring financing company that is ready to help you at every step and has a goodwill. A bank lender that specializes in customized financing programs can be of great help in the future. With a proper knowhow and market experience, they can aid you in finding the right vendors when the opportunity of growth presents itself.

Points to Analyse About A Business Loan

Businesses are now growing at a faster rate as compared to previous generations. And that's where a business loan plays a crucial role in. In order for a business to keep operating, funding is something it requires of. It's something that pulls them out of tedious situations and let the graph of their growth increasing…

Businesses are now growing at a faster rate as compared to previous generations. And that's where a business loan plays a crucial role in. In order for a business to keep operating, funding is something it requires of. It's something that pulls them out of tedious situations and let the graph of their growth increasing at the same time. There are a few points that every business should analyze before taking a business loan.

The businesses have the idea about their needs and the amount required for their business. Sometimes, the businesses do not have a clear vision why they need a loan or about the amount they need according to requirements. This is a crucial decision that may decide the future of the business. In those cases, what a business need is advice. SMEs have been able to provide answers to such problems. The financial institutions are also providing advice to the businesses in order to fulfill their needs. Assessing their present scenario also protects them from hideous situations.

Businesses are required to review their credit history before applying for a business loan as it's something that every financial institutions reviews before giving any kind of fund. Have a look at your credit over previous times or have a credit report from different credit reporting agencies. If the business is a start-up, then have a look at your credit score. A credit score of about 700 is considered to be good and increases your chances of getting one.

After having a look at your credit ability every business should look at the options available to them. Sometimes the smaller financial institutions offer better options than that of a larger one. Have a through review about the institutes and their financing procedures. You should have a talk with the loan officer and have a detailed idea about their terms and conditions. There are also different types of loans available such as micro finance etc. so have a view and select the best that suits your business.

Business plan is a critical stage before having a loan. You must have a proper business plan. A business plan is something that a financial institute may view in addition to your credit ability. A proper business plan has detailed study of your past, evaluation of assets and project statements. It also includes an analysis of the market that your business serves and your growth over the years.

In order to have a security that, you will definitely get a business loan all you need to have is an appealing presentation. Fix an appointment with the loan officer and show them your presentation followed with a brief description. Do include your growth, market hold and assets in form of visual aids along with your application and required documents.

A Small Business Loan Is Easy to Get If You Are Doing the Important Things Right

When your business is in its starting phase, you need a loan to grow it. Yes, there are ways for you to start your business with very little capital, but even in the age of the internet you need loans for the growth and expansion of your business. Oftentimes, startup and small business owners are…

When your business is in its starting phase, you need a loan to grow it. Yes, there are ways for you to start your business with very little capital, but even in the age of the internet you need loans for the growth and expansion of your business. Oftentimes, startup and small business owners are scared of taking loans because they believe returning the same loan with interest on it will hinder their growth. The fact is a loan is not such a big liability if you have done your homework before getting it. Hastily getting a loan without researching the market and knowing your business' growth potential can be detrimental to the business.

Your Business Plan Matters Big Time

It does not matter how experienced your management team is when your business plan is weak. When you ask for a loan from lenders, they are trying to find reasons to forward you the desired loan. They want to be sure that the loan they forward is returned in time and according to the terms and conditions set at the time of loaning. Lenders will seldom gauge the potential of your business to return the loan based on what you speak. What they want to see is a solid business plan and that's why you need to have an impressive one. A strong business plan will consist of the following and some more.

  • The company description
  • Management role and experience
  • The product description
  • Strategy for marketing
  • Financial projections
  • An executive summary
  • Documented cash flow

Keep in mind that banks often look at the cash flow in the documented form, and their scrutiny is not limited to what your projections are for the future but more importantly how you have managed things in the past. They will look at your company's cash flow records for past couple of years to see if you should be given the loan you are asking for. So, keep your business plan in mind and make sure you have worked on every aspect of it to present something impressive to the investors.

Your Loan Options Are Many

Sometimes, you have a solid business plan and everything else is in place, but your understanding of loan options is not at its best. Many small business owners live with the impression that the only institution available to them for obtaining a loan is a bank. That's far from truth because there are dozens of other ways to obtain the loan or investment for your startups that's much easier to manage than a bank loan. Some of the options available to you include SBA loans from the government, invoice financing, business equipment financing loans, etc. If you are just a startup and none of those options seem viable to you, there is online fundraising.

Online fundraising has become quite a popular method of getting investments for your startup from individuals who trust in your idea and concept of the business. Using funding website you have access to hundreds of thousands of investors located all around the world that are willing to help if you can convince them with your business plan and the team that's behind your project. So, avoid making the mistake that many small business owners make when they think bank is the only place for them to get any money for their businesses.

Your Timing to Apply for a Loan Is Important

This is a huge mistake that small business owners often make and pay the price in the form of not being able to obtain the loan they want at the terms they want. See, you will always be told to have a strong business plan because that's the only way investors will trust you as an entrepreneur or businessperson. When you create your business plan, you are not just jotting down random numbers on a piece of paper. Your plan should give you an idea of ​​what your business' needs will be in the coming times. That's when it makes sense to apply for loans well in advance and not at the eleventh hour.

When you apply for a loan at the eleventh hour, you are seen as a business in trouble. Most investors will see your business as the sinking ship and they will never want to get on it. Obtaining a loan in these circumstances can become close to impossible. This is the reason why you should apply for a business loan in advance and not at exactly the moment you need it. You also have to keep in mind that loan approval process takes time too. If you need the cash on an urgent basis, every day that passes during the approval process will be causing more damage to your business.

The Right People Can Make the Difference

Delegating responsibilities to the right people is an art and skill that not many business owners have. Oftentimes, small business owners very much much on their own skills and are scared to trust any other person to do things for them. This can be a grave mistake because you can not be the jack and master of all the trades at the same time. For example, you might be great at crunching numbers and making accurate projections for the business but not very great at sales and pitching ideas. If you have to pitch your business idea, its marketability and scope to the investors, choose the person who can best present it. After your great business plan, you will fail to obtain a loan because of your nervousness and lack of confidence when it comes to acting like a clever salesperson.

You have to bear in mind that investors are not investing only in your business, they are also investing in you. It is very important for them to like your personality to invest in your project. Appearing unprepared or nervous in front of them will send an impression that you are not fit to lead the project, your decision making is faulty and that you can not create strong teams.

A Well-prepared Presentation Can Win Hearts

It does not matter who is giving the presentation when the content is boring and does not address the points that investors are most curious to know. First, get your numbers straight and bring them into the presentation at the right points. Be the investor in your mind and think of the questions you would ask if someone offered the same product / service to you. Have your accountant, advisor and business lawyer by your side when preparing the presentation. You do not want to give wrong figures during the presentation and fall for a bad deal at the end of it. The most important thing is to explain your business idea as clearly as possible. Many times the presentations are so all-over-the-place that investors can not make heads and tails of it. If they do not understand your business, they will never invest.

So, bear in mind that obtaining a loan is not that big of a challenge. Most of the times, it is just some small mistakes in the areas mentioned above that become the cause of lost opportunities to get the right loans for your business. Create a solid business plan , choose the right people to represent your business and use all the options that are available to you at the right time to grow your business at the pace you want.