A uniform commercial code (UCC) filing is a notice registered by a lender when a loan is taken out against a single asset or a group of assets. A UCC filing creates a lien against the collateral a borrower pledges for a business loan. The uniform commercial code is a set of rules governing commercial…
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What the Debt Service Coverage Ratio Is & How To Calculate It
While credit scores and income are important factors for a lender when approving business loans, another calculation can make the difference between loan approval and denial. The debt service coverage ratio (DSCR) measures your business’s ability to repay a business loan. The DSCR compares your annual business debt to your annual business income. While each…
Merchant Cash Advance: Is It Right for Your Business?
A merchant cash advance (MCA) is a business financing product that allows companies to receive a lump-sum advance payment in exchange for a fixed percentage of their daily credit card receipts. MCAs are an expensive form of credit and should only be used as a last resort by businesses that cannot qualify for other forms…
Commercial Bridge Loans: What They Are & How They Work
Commercial bridge loans are flexible loans that provide short-term financing for the purchase of commercial real estate and additional funds for the rehabilitation of property—they aren’t permanent financing. In addition to funding renovations and upgrades, a commercial bridge loan can be used by borrowers who cannot initially qualify for permanent financing. Unlike permanent financing, where…
5 Best Merchant Cash Advance Companies for 2022
A merchant cash advance (MCA) provides a business owner with a lump-sum cash advance in exchange for a percentage of daily credit card receipts. A merchant cash advance is an extremely expensive way to fund a business and shouldn’t be used unless all other options are unavailable. However, if a business owner cannot secure financing…
4 Best Commercial Bridge Loan Providers for 2022
Commercial bridge loans provide short-term financing for the purchase of commercial real estate and additional funds for the rehabilitation of a property. While there’s flexibility in commercial bridge loans, they aren’t permanent financing. In addition to funding renovations and upgrades, a commercial bridge loan can be used by borrowers who cannot initially qualify for permanent…
Startup Business Loans: The 8 Best Ways to Fund Your Startup
It can be challenging to qualify for a loan if you’re starting a new business. Without a long financial history, lenders are often reluctant to lend to startups. However, there are several financing options available, including rollovers for business startups (ROBS), Small Business Administration (SBA) loans, and lines of credit. Each type of financing offers…
How to Get a Loan to Buy a Business in 7 Steps
For individuals looking to acquire an existing business, a loan is usually necessary to obtain the required capital. Not only can the loan be used to purchase the business, but it can also give a borrower the cash flow necessary to ensure a successful start to the business. Typically, a down payment of at least…
6 Best Business Loan Brokers
Business loan brokers connect borrowers to a network of lenders, giving them several options for financing with a single application. The goal of brokers is to provide borrowers with the best rates and terms, typically at no cost. Here is our recommendation for the top six small business loan brokers for 2021: Lendio: Best Overall…
Equipment Loans: How They Work & Where to Find One
An equipment loan is fixed financing from a lender that is used to purchase vehicles and heavy equipment. The purchased collateral secures the loan. Equipment loans can be secured from many different sources, including banks and nontraditional lenders. Because of the strong collateral, lenders offer low rates on equipment loans, ranging from 6% to 9%….
Equipment Leasing ― The Ultimate Guide for Small Business Owners
Equipment leasing allows businesses to acquire equipment without purchasing it. Leasing agreements can be obtained from some of the same sources as equipment loans: banks, dealerships, equipment manufacturers, and even nontraditional financing companies. Lease payments are often significantly lower than loan payments, although balloon payments may be due at the end of the lease. Smarter…
Kabbage vs OnDeck 2021: Who Has the Best Business Loans?
When comparing Kabbage and OnDeck to determine which has the best loans, a business should first consider whether or not it has an existing relationship with Kabbage. While Kabbage would be the preferred lender for recurring working capital, the company is only offering its lending product to existing Kabbage and American Express customers. For non-customers…