There are three ways you can use your 401(k) to start or buy a business. You can cash out funds, borrow against your 401(k), or use a rollover for business startups (ROBS). The only option that does not result in penalties, taxes, or interest charges is a ROBS, making it ideal for most situations. If…
About the Author
Find Tom OnLinkedIn
5 Best Equipment Loans for a Startup Business in 2021
Startup businesses often face difficulty obtaining financing, as most traditional lenders require at least two years in business. However, equipment loans and leases are available from some lenders for startup businesses. Qualifying for equipment financing as a startup business may require a downpayment of 20% and a strong credit score to get the best possible…
5 Best Companies for Equipment Financing With Bad Credit for 2021
Equipment financing for those with bad credit can be a challenge to obtain, but lease and loan options do exist. Borrowers can work with a cosigner or make a larger down payment on an equipment lease or loan to improve their chances of financing approval. In evaluating the best equipment financing options for borrowers with…
5 Best Business Loans for Bad Credit in 2021
Many business owners cannot qualify for traditional business loans because they have bad credit scores, but several online lenders offer small business loans and lines of credit to borrowers with credit scores of 600 and lower. These lenders provide a potential lifeline to businesses in need of financing; however, borrowing costs will be higher because…
21 Microfinance Statistics You Need to Know in 2021
Microfinancing stimulates economic growth by providing small loans to those that cannot obtain conventional lending. Microfinance is used worldwide, with loans smaller than $100 offered in some underdeveloped countries. In the United States, microfinancing refers to loans of $50,000 or less. The following 21 statistics offer an opportunity to learn more about how microfinancing works…
How to Apply for PPP Loan Forgiveness
Under a Paycheck Protection Program (PPP) loan, small business owners were able to borrow money for payroll, rent, mortgage interest, and utilities. The loan was available from any Small Business Administration (SBA)-approved lender as well as through online loan brokers like . Approximately $284 billion were authorized in the second draw of PPP loans, and…
5 Best Non-recourse Factoring Companies of 2021
With non-recourse factoring, if your customer fails to pay an invoice, your business isn’t held liable by the factoring company to make payment. Qualifying for non-recourse factoring is more difficult than qualifying for recourse factoring because businesses often need a higher invoice volume and customers with stellar credit. While most invoice factoring companies will offer…
5 Best Invoice Factoring Companies of 2021
Businesses use invoice factoring to convert unpaid invoices into immediate cash through an advance of up to 90% of the invoice amount. We reviewed more than one dozen invoice factoring companies based on funding time, rates, terms, and customer service. Based on our review, here are our recommendations for the best invoice factoring providers. BlueVine:…
How Invoice Factoring Works
Invoice factoring is one way to receive funds quickly when your business faces a cash flow crunch. Businesses that invoice their customers can assign any unpaid invoices to a factoring company. Factoring companies will work with businesses that invoice other businesses or government entities. The factoring company will offer your business an advance of approximately…
SBA Form 912: How To Fill Out a Statement of Personal History
The Small Business Administration (SBA) Statement of Personal History form, otherwise known as SBA Form 912, is used to determine a borrower’s trustworthiness and evaluate whether the applicant or their business partners have any criminal history. The information gathered by SBA Form 912 helps determine if a borrower is of good character. Completing the form…
SBA Form 159: What It Is & How To Fill It Out
SBA Form 159 is required if you or your lender hire a loan packager, referral agent, broker, accountant, attorney, or consultant to help prepare or secure your SBA loan. SBA Form 159 is less common than other SBA forms, only being filled out with less than 40% of SBA loan applications annually. The purpose of…
SBA 7(a) Loan: Requirements, Rates & Terms
Small Business Administration (SBA) 7(a) loans are good for businesses in need of long-term working capital, equipment purchases, or commercial real estate acquisition. The SBA 7(a) loan program provides up to $5 million in financing, with repayment terms of up to 10 years for working capital and 25 years for real estate. These loans feature…