Andrew Wan

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…

Getting SBA startup business loans can be challenging as lenders know there’s a high failure rate for newer companies. However, it can be done, and we’ll walk you through how to get an SBA startup loan. You’ll need to have a business plan, know the details of how you’ll use the funds, understand the best…

Investment property financing allows you to acquire residential real estate for investment purposes. This can be in the form of a short- or long-term investment, such as a fix-and-flip or fix-and-hold property. Different types of loans can be considered for investment property financing. Common examples include conventional mortgage loans, owner financing, home equity loans (HELOANs),…

The prime rate can affect the interest rate you get on a loan, although lenders may use varying methods. It can fluctuate over time, so being aware of the prime rate can give you an idea of the range of interest rates you might be able to get. As a general rule of thumb, the…

Since merchant cash advances (MCAs) use a factor rate instead of a traditional interest rate, it can be difficult to understand the true costs of getting this type of financing. You can use our merchant cash advance calculator above to find your effective Annual Percentage Rate (APR) to understand how much you’ll end up paying….

Franchise financing can provide the money you need to purchase a franchise. It can also cover working capital needs for day-to-day expenses such as rent, utilities, maintenance, inventory, payroll, and other business costs. You can get franchise financing from a wide range of sources. Each has differences with regard to things like rates, fees, and…