Andrew Wan

Getting an SBA loan may seem like a complex process. Funding can take one to three months, and there’s typically more paperwork involved compared with traditional loans. However, you’ll often be rewarded with some of the best rates and terms available. You can learn how to apply for an SBA loan by following five major…

I’ll walk you through how to get a business credit line, which can be accomplished in five major steps. Once you understand how you intend to use the credit line, you’ll need to choose the right type of line of credit, understand your qualifications, shop lenders and check your eligibility, and then apply and provide…

Revenue-based financing, or RBF for short, is a type of loan in which your monthly payments are calculated based on a percentage of your company’s sales. Since this can fluctuate each month, you’ll be required to make payments until the balance of the loan is satisfied. Compared to traditional loans, RBF is less common, so…

A merchant cash advance, or MCA for short, allows you to get an advance on your credit card sales. However, it is one of the most expensive forms of financing available, with annual percentage rates (APRs) regularly exceeding 100%, which is why we recommend it only as a last resort. MCAs can be a good…

The LTV ratio is a common requirement for secured loans, such as real estate, equipment financing, and vehicle loans. A good LTV ratio is usually 80% or less. However, the requirements can vary depending on the specific type of loan you’re applying for, the lender you choose, and the strength of your credit and finances….

SBA economic injury disaster loans (EIDLs) are designed to provide funding to businesses that have suffered substantial economic injury as a result of a natural disaster. Funds can be used to cover ordinary and reasonable expenses to help the business survive until normal operations can be resumed. EIDLs are, however, only available to businesses that…

Fixed charge coverage ratio (FCCR) measures a company’s ability to cover its fixed expenses from its earnings. Lenders may evaluate this as one of several factors in determining whether you qualify for a loan, as well as what interest rate and loan terms you qualify for. A fixed charge coverage ratio above 1.2 is required…

As a business owner, you can use equipment leasing to acquire business-related equipment without the need to purchase or own it long-term. Leasing can be a good option if you only have a temporary need for the equipment, anticipate the need to upgrade it regularly, and don’t have funds for a large down payment to…

Borrowing base is a figure that refers to the largest loan amount you can get from a lender. It applies to secured loans and is calculated by taking the lender’s advance rate (sometimes also referred to as its loan-to-value limit) and multiplying it by the value of the collateral. As an example, if you have…

If you are applying for a loan through the Small Business Administration (SBA), a business plan will likely be a required component of your loan application. Your SBA business plan should provide an overview of your company’s goals and how it plans to achieve them. There is no standard format for an SBA business plan,…

A property’s after repair value (ARV) is a home’s estimated value after repairs, upgrades, and renovations have been completed. It is typically used by fix-and-flip and fix-and-hold investors to determine if a particular project will be profitable. A lender may also evaluate ARV as part of its qualification requirements. If you’re looking to get financing…

SBA disaster loans are designed to provide financial assistance to businesses that have been impacted by a qualifying declared natural disaster. This can include hurricanes, tornadoes, floods, and wildfires. The SBA has several disaster loan programs, and funds can generally be used for repairs, payment of business debts, daily expenses, and other costs that must…