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Are You Looking For Business Loan and Business Receivable?

Looking for business loan generally refers to the process by which a business owner researches and compares the different financing options available to find the one that is best suited the needs and capabilities of the business. Most business loans are available from the Small Business Administration (SBA), commercial banks, and non-traditional finance companies.Most businesses consider the SBA when looking for business loans because this agency’s goal is to help small businesses succeed and contribute to the economy. The most common loan offered by the SBA is the 7(a) loan, which is available to small business owners who have been denied traditional financing and who can prove their ability to repay the funds borrowed. This loan requires applicants to submit business and personal financial documents and a business plan in order to be considered for approval. Other variations of the 7(a) loan may require additional documentation. Interest rates and repayment terms vary depending on the business’s financial stability and the type of loan obtained.Most start-up small businesses do not look to commercial banks when looking for business loans because banks see them as too high of a risk. However, established small businesses may be able to obtain a bank loan with the necessary documentation. Like with the 7(a) loan, interest rates and repayment terms will vary.Another option when looking for a business loan is an independent financial company. These companies usually accept high-risk borrower, such as start-up businesses or businesses with poor credit. Because they do accept high-risk applicants, their interest rates tend to be much higher than SBA and bank loans.People looking for business receivable are usually referring to accounts receivable, an asset account that tracks the money owed to a business. This account is considered an asset because it records money that is legally owed to a company. Businesses often allow individuals and companies who purchase frequently or large quantities of products to buy those items on company credit. To add a transaction to the receivable account, the receivable must be debited and the revenue account must be credited. Once an account is paid off, the account receivable is credited and the cash account is debited to balance the business’s accounting ledger.Businesses who offer credit accounts must be prepared for customers who fail to pay their accounts on time. To encourage quick payments, many businesses offer discounts to accounts paid off within a short time period and charge late fees to accounts that are not paid in time. If a customer continually fails to pay his or her balance, the business has the right to turn the customer over to collection agencies and attorneys to receive payment.Because the business receivable account is an asset, it may be used as collateral for funding. Lenders may allow a business to use the accounts receivable and other assets to secure a loan with a lowered interest rate. Businesses can also sell their receivable account to another company for immediate cash. This financing option is known as factoring, and it is not considered a loan.Looking for business loan?
Looking for Business Receivable?

Business Loans – What You Need to Know

Business loans are very important for any business not just for businesses which are just in the initiation stage, but also well established businesses looking for expansion. Businesses are not that easy to handle especially financially which is why you will find most business people going for the loans to boost their business growth and productivity.The business loans available in the market today are of many kinds, there are secured and non secured loans. Under the secured loans, you will need to give collateral for the loan as security in case you are not in a position to repay the loan. Collateral can be in any form including your home, land or other assets to your name. The unsecured loans on the other hand will not require you to have any collateral to get the loan. However, you will need to have very good credit history for your business and also on a personal level.The loans can be got from banking institutions or other different lenders now flooding the market and they all work on different kinds of policies as far as processing the loans are concerned. Whereas some of the lenders take you through a long process before processing your loan, others will process it within 24 hours thereby giving you immediate boost for your business. You therefore need to choose your lender wisely especially depending on the urgency of the loan you need.Since there are people who do not have any collateral and have bad credit history, but still need the business loans, it can seem impossible to get the loan. However, it is now possible even for such people to get business loans. This is through the bad credit loans for business which do not require you to have good credit to qualify for the loan. This kind of loan for business in most cases will only require that your business be in business for a certain period of time and also be in a position to bring in a certain amount of income on a monthly basis.With such information, the lender is certain that you will manage to repay the loan. The repayment terms are very friendly and you will manage therefore to grow your business and repay the loan at your own pace from the growth. Business loans are different and come with different terms and conditions hence the need to ensure you are well aware of every option in the market before making the final decision.

Low Rate Business Loan – an Inexpensive Source of Finance

Is business loan the only source of finance available to a businessperson? No, there are quite a few methods by which the businesspersons can raise cash for business purposes. Business loans have to compete with government grants, which cost nothing to the entrepreneur. For entrepreneurs who want not to use external sources of finance, they can retain a part of profits to be introduced into business. Again, the entrepreneur has to shell nothing in terms of cost. Therefore, business loan has a tough competition. Hence, for business loan, it is not only optional but also crucial to be available at low rate of interest.What low rate business loans outscore over the other methods is on the point of faster approval. Securing government grants is an arduous task. There are many procedures to be completed. Even difficult are the prerequisites that need to be fulfilled. The process is made so very difficult that entrepreneurs have to think twice upon taking them. Moreover, the chances of receiving government grants in time are generally low.Same is the case with retained profits. It is a tough decision to make on the use of profits. There are number of stakeholder of profit. The decision to reap profits into business will be made at the cost of these stakeholders.Business loans differ from these sources of finance in the sense that it is available as and when the entrepreneur desires. There are several banks and financial institutions operating in the UK, which may be approached for a business loan. If the details mentioned by the entrepreneur in his application form are genuine then he will be approved for loan within a few days of application. Thus, the use of business loans will often be less complex.In the initial part of our article, we dealt with the cost of business finance. We see that government grants and retained profits are available at little or no cost. So how does a business loan compete with these? A business loan competes with these sources of finance in terms of time. A business loan is advanced for longer terms such as 25 years. During the period, borrower can pay loan through smaller payments every month. The sum charged as interest goes towards compensating the loan provider for the opportunity lost. Moreover, interest rate at which business loan is available is competitive.Having chosen business loans from the other sources of finance, entrepreneur still has to make a number of decisions. A principal decision relates to the lender to process the loan request. The low rate business loan is largely dependent on the loan provider. Responsible loan providers will often try to advance the best of deals to the entrepreneurs.If it is becoming a tough task to find a responsible lender then online search will be helpful. An online search involves looking out for loan providers and their offerings through the internet. For beginners, they need to go to any of the search engines like Google, Yahoo, AltaVista etc. On putting the requisite type of business loan in the search box, the search engine will generate thousands of results. The next step will be to search, after studying their offerings, certain number of loan providers, optimally five. These loan providers may be requested for loan quotes, mentioning the terms on which a low rate business loan will be available. Out of these loan quotes, borrowing businessperson can accept a particular quote. A loan provider is thus accepted to process the low rate business loan.Businesses must however make use of low rate business loans keeping in mind the debt equity ratio. Low rate business loans increase the debt and thereby create disequilibrium in the ratio. Business loans often keep a charge on certain business assets. When larger amount of business loans are used, they may result in ill functioning of the business.