Restaurant loans are offered by both traditional and online lenders and often are used for working capital expenses like payroll, utilities, and inventory. Restaurant financing can also be used for large projects like new locations, equipment, and renovations. Average rates range from 6% to 50%, with repayment terms ranging from three months to 10 years….
Trucking Business Loans: Costs, Terms & Requirements
Trucking business loans are typically short-term loans for working capital growth or lines of credit (LOC) to help truckers overcome unforeseen cash flow gaps. The best working capital loans from trucking companies have short repayment terms and fast funding because truckers sometimes need to make quick repairs or get owner-operator startup loans quickly. Types of…
5 Best Construction Factoring Companies 2020
Construction factoring is a financing option for businesses in the construction industry. Instead of delaying work because of slow-paying clients, factoring allows your business to forge ahead, taking on more and larger projects. We examined eight construction invoice factoring companies and compiled our list of the six best for small business owners. Top 6 Construction…
Debt Service Coverage Ratio – What It Is and How to Calculate It
When you apply for a small business loan, numbers can mean everything. For example, the lender will want to know your income, your credit score, and your debt service coverage ratio (or DSCR). Debt service coverage ratio (DSCR) measures your business’s ability to repay debt by dividing your net operating income by your total debt…
10 Ways to Solve Business Cash Flow Problems
Cash flow problems arise when businesses cannot cover debt payments, payroll expenses, or inventory restocking. Many of these problems are temporary and only pose a serious threat if they become chronic. The first four solutions are types of financing that can be used for quick, and the remaining six are long-term managerial adjustments you can…
What Is a Business Line of Credit?
A small business line of credit (LOC) allows you to draw against a predetermined credit limit as you need it, instead of receiving the full loan amount at one time like a term loan. Every draw you make must be repaid, with interest, over a set period of time. This makes lines of credit best…
What Is Invoice Factoring?
Invoice factoring is a type of financing that converts invoices due within 90 days into immediate cash for your small business. You submit an outstanding invoice to the factoring company, and it provides you with part of the invoice value for a small fee. It’s different than invoice discounting, which uses the invoices as collateral….
What Is a UCC Filing & How Does a UCC Lien Work?
A UCC lien filing, or UCC filing, is a notice lenders file when a business owner takes a loan against an asset. A UCC filing gives lenders a claim on assets a debtor pledges as collateral. The term originates from the Uniform Commercial Code (UCC), a set of rules governing commercial transactions. When a UCC…
5 Best Invoice Factoring Companies 2020
With invoice factoring, a business can convert unpaid invoices into immediate cash through an advance of 80% to 90% of the total amount owed. We reviewed more than two dozen invoice factoring companies to select the six best invoice factoring providers. Each company selected earns stellar reviews from small business owners. We ranked the top…
5 Best Non-recourse Factoring Companies
With non-recourse factoring, if a company fails to pay an invoice, the borrower is not held liable by the factoring company. It’s more challenging to qualify for non-recourse factoring solutions because businesses typically need a higher invoice volume and customers with stellar credit. While most factoring companies will offer non-recourse factoring to their top customers,…
SBA Form 1368: The Ultimate Guide
SBA Form 1368 offers small business owners the opportunity to show the financial impact of an economic disaster on a business. It comprises three sections that require you to disclose monthly sales figures, an economic forecast, and additional information not captured in the forecast. The last part is an important opportunity to explain any details…
How Invoice Factoring Works
Businesses that invoice clients can assign unpaid invoices to a factoring company to get fast cash. For a fee, the factoring company advances a portion of the invoice value to the business. The factoring company then collects payment from the invoiced client and sends the business the remaining invoice balance. That’s how invoice factoring works….