There are several types of short-term business loans designed to give businesses quick access to needed capital. The most common types include short-term loans, business lines of credit, accounts receivable financing, and merchant cash advance. Costs vary based on the type of short-term loan, with interest from 6%–120% APR. How Short-term Business Loans Work Short-term…
About the Author
Robert Newcomer-Dyer
Robert is a staff writer at FitSmallBusiness, where he covers small business financing. Robert has over 15 years of experience in sales leadership, finance, and business development. He recently spent six years leading a team of small business financing professionals, facilitating the deployment of critical capital to over 9,000 small businesses across the U.S.
When Robert isn’t writing he enjoys spending time with his wife, two children, and an assortment of pets, camping and hiking throughout the beautiful Pacific Northwest.
Short-term Business Loans: Definition, Costs & Providers
A short-term business loan supplies working capital for businesses to meet various needs, and may be secured or unsecured. Short-term loans typically have repayment terms up to two years. Interest rates start around 6% with the average APR on short-term business loans between 30% and 50%. Short-term Small Business Loan Providers Banks, online lenders, business…
Business Valuation Calculator: How Much Is Your Business Worth?
A business valuation calculator helps buyers and sellers determine a rough estimate of a business’s value. Two of the most common business valuation formulas begin with either annual sales or annual profits (also known as seller discretionary earnings), multiplied by an industry multiple. Both methods are great starting points to accurately value your business. For…
What Is EBITDA: Formula, Definition, and History
Earnings before interest, taxes, depreciation, and amortization (EBITDA) is a measure of a company’s revenue before accounting for deductions related to interest expense, taxes, depreciation, and amortization. It is a method of determining the health and value of a business that discounts how the business is financed as well as accounting and tax strategies. What…
How to Get Heavy Equipment Loans for Your Business
Heavy equipment refers to heavy-duty vehicles like those used in construction. A heavy equipment loan is collateralized by the equipment with the buyer agreeing to pay down the principal and interest over a predetermined period of time. In return, the lender grants the buyer the benefits of ownership while the business preserves cash on hand….
How to Buy a Business in 7 Simple Steps
Buying a business can be a daunting process. Steps include determining your budget, finding the right business, negotiating the price, and obtaining financing. Along the way, you will need to know how to properly value a business, what documents you will need to exchange with the seller, and who your professional allies are. The seven…
How to Get Heavy Equipment Financing for Your Business
Common types of heavy equipment financing include loans and leases where the heavy equipment acts as collateral. The word heavy refers not to the weight of the equipment, but its classification. Borrowers should expect to pay between 5% and 12% per year and between 1% and 4% in closing costs to finance heavy equipment. For…
Equipment Lease Calculator
Our equipment lease calculator allows you to estimate the potential costs of an equipment lease by comparing three common lease options: a fair market value lease, $1 buyout lease, and 10% option lease. Estimate your monthly payment and total cost by changing key inputs like the interest rate, down payment, and length of the term….
What Is the Prime Rate: How it Works, Definition & Formula
The prime rate is an interest rate set by banks representing the lowest interest rate at which a bank will lend money to its most creditworthy borrowers. It is highly correlated to the Federal Funds Target Rate set by the Federal Reserve. The current prime rate, published by the Wall Street Journal, is 4.75%. Current…
How to Lease Restaurant Equipment With Bad Credit
If you want to lease restaurant equipment with bad credit, you should expect to pay higher rates than with better credit. Bad credit leases also may not be available on new or premium equipment. However, there are still steps you can take with bad credit to get the equipment you need for your small business….
6 Best Equipment Financing Companies 2019
Businesses that need equipment have several equipment financing methods to choose from, including equipment loans and equipment leases, Small Business Administration (SBA)-backed loans, unsecured term loans, and lines of credit. We analyzed more than 20 providers and to create our list of the top six equipment financing companies. Top 6 Equipment Financing Companies 2019 How…
Succession Planning Template & 5 Steps to Write a Succession Plan
A business succession plan includes step-by-step instructions that establish procedures in the event a business owner or key employee leaves the business. Our succession planning template helps business owners as they answer questions like who will take over the business, how long will it take, and what standard operating procedures need to be passed on….
