Unsecured Business Loan

The benefits of unsecured business loans

More Unsecured Business Loan Articles

Unsecured Business Loan

Getting an unsecured business loan is one of the best ways of funding a small business. Getting an unsecured business loan is a wonderful source for getting money for all of your business related expenses because you won’t have to worry about producing collateral in order to secure the loan, which is a prerequisite in a secured business loan. An unsecured business loan is especially beneficial to entrepreneurs who are just starting out with their first business or those who have plans to expand a business that they are already running.

Unsecured business loans are generally categorized as multi purpose loans and can have terms that could be short term or long term depending on what you apply for and what the lending institution approves.

There are many benefits to getting an unsecured business loan. These benefits can even have long term beneficial effects that can help improve your situation or status as an entrepreneur. The biggest benefit of an unsecured business loan, as previously mentioned, is that you do not have to produce a collateral in order to get the loan.

Getting an unsecured business loan that is serviced diligently can also improve your credit record that it improves your chances of getting approved for a line of credit that you can draw at a later time, especially when you need additional funding for your business.

Another good benefit of an unsecured business loan is that interest will only be charged on the funds that you have borrowed from the credit line.

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EQUIPMENT LEASE FINANCING

The business benefits of equipment lease financing

More Eqipment Lease Financing Articles

Starting a business entails letting go of a lot of cash. There are just so many items to purchase in order to get a business off the ground. Most entrepreneurs buy a lot of brand new equipment as part of their initial business expense. We all know how expensive business equipment is. But there is a way around this expense that can actually lessen your business expenses – it is equipment lease financing.

Equipment lease financing is a great solution for businesses who are a bit strapped for cash. Although equipment lease financing does not necessarily bring in cash to your business. What it does is to reduce the amount of cash you need to let go for your business.

The concept of equipment lease financing is quite simple. When you get a lease for an equipment, the supplier or dealer provides the said equipment to you (either by buying it or providing you one that they already possess in their inventory). Instead of buying the equipment you make monthly payments instead — the concept is basically the same as renting the equipment for your use. The payment system also gives you the added benefit of making the payments a tax deductible business expense.

The added benefit of equipment lease financing is that your office becomes more future proof in terms of new technology. Whereas as a business who buys their own equipment is stuck with those same items when new technology comes in, you can just request for new equipment at no extra cost to your business.

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BUSINESS CREDIT CARDS

Learning to handle business credit cards effectively

June 23rd, 2007 | Business Credit Card Articles

Business credit cards are becoming increasingly popular among many businesses today. The wide acceptance of business credit cards and the effective, almost fool proof way, of tracking down business expenses has made them almost indispensable for companies. But a business credit card is still a credit card, and you are still at the same risk of having credit problems if you mismanage your business credit cards. Below are some effective strategies you can use in order to make your business credit cards work for you:

Apply for a card at your bank – Applying for a business credit card at the bank you already established a business relationship with can actually help in facilitating the approval of your application. Additionally, this relationship can work for you because it could even be possible for you to apply for a higher credit limit without the bank even resorting to scoring system.

Avoid mixing your personal and business purchases – Mixing what should be two separate types of expenses can create problems in terms of tax and money management.

Do not card hop – it is not advisable to apply for multiple credit cards just because a particular card company is offering a great sign up deal. This practice can actually lower your credit rating and also pose a problem in terms of money management.

Do not make any cash advance – You can actually reduce your interest costs as well as your credit card fees by simply not using the cash advance feature of your business credit card. A cash advance actually carries more fees and additional costs.

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SMALL BUSINESS LOAN

Important things to consider when getting a small business loan

June 23rd, 2007 | Small Business Loan Articles

Small Business Loan

One of the inevitabilities of setting up and running a small business is getting a loan. You can say that you are liquid or that you have enough capital but at some point in the life of your business you will have to apply for a small business loan. This loan will be crucial in either maintaining your business or, more importantly, in expanding it. Without a small business loan, you will definitely experience financial difficulties.

Getting a small business loan is not that hard especially if you make the adequate preparations before applying for one. One of the things that you have to realize is that lending institutions will have certain expectations in terms of the application for a small business loan. These expectations usually revolve around the readiness of the borrower to provide important information. The information that you provide will help lenders to decide whether or not you are a good credit risk. Your success in getting your small business loan application approved will depend on your preparedness to actually fulfill those expectations.

One of the most crucial and yet most overlooked aspects of applying for a small business loan is providing the necessary documents that lenders will immediately look for. It is a sad practice that most entrepreneurs only make the important documentation when they are about to apply for a loan. More often than not the limited time to prepare makes these documents look unprofessional, which greatly contributes to the denial of any applications. To prevent this you should have these important documents ready as soon as possible. For example, a business plan should be made even before the business is realized. A well written business plan gives a good impression and increases your chance of having your small business loan application approved. Other documents that you should also prepare in advance are cash flow projections, your previous business tax returns, and a statement of your personal financial status.

Tags: Small Business Loan, Unsecured Business Loans

Establish Business Credit

How to establish business credit

June 23rd, 2007 | Establish Business Credit Articles

Establish Business Credit

A business credit is a useful tool in helping your business grow and flourish. But you have to realize that you have to pursue getting your own business credit. Getting one entails a lot of work; no one will just come to you with a ready made business credit line and drop it into your lap.

You can get a business credit from two main sources – from a bank or lending institution or from your suppliers. You will need to plan properly in order to get the establish business credit from any of these two sources. Remember that getting business credit can help in easing the pressure that is exerted on your capital investment so play your cards right in order to achieve your business credit goals.

In order to successfully establish business credit you will need to know how banks or suppliers assess the credit worthiness of an entrepreneur. What they usually do is to look at five crucial factors. These are:

Capacity to pay – this is one of the most important factors that banks and suppliers look at before they establish business credit for you. It is quite essential for them to know if you have the capability to pay back the credit. After all, they are also establishing the business credit not to help you but also to earn profits.

Business Capital – banks and suppliers will also look at how much capital you have invested into your business before they determine if they want to establish a business credit with you. The larger your capital, the more risk you have if your business folds. This assures them that you will be less gung ho with the business.

Collateral – Providing collateral will definitely make it more worthwhile for banks and suppliers to establish a business credit with you

Business Conditions – this refers to the general business environment or climate as well as to how the credit will be used. You will need to convince the bank or supplier that your business can operate optimally in the present business climate. You can even present your own plans in case the business climate becomes a bit negative.

Character – This refers to you, the entrepreneur. Banks and suppliers look at you as the face of the business. You have to present yourself impeccably. You should also present your credentials, educational background, and business experience as it will definitely help them in making their decision.

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