How business credit affects personal credit scores depends on whether or not there is a personal guarantee involved. Most credit card issuers require a personal guarantee, and making timely payments may boost your personal credit score. Business credit can also cause your personal score to decrease if you default on payments. Whether your business is…
All Financing Articles - Page 13
7 Best Term Loans 2020
Term loans—loans with fixed repayment terms—are a common source of small business financing. These loans are repaid through regular payments over the predetermined term of the loan. We’ve evaluated business term loans based on costs and qualifications to deliver a list of the seven best term loans for your small business consideration. 7 Best Business…
Types of Invoice Financing for Small Businesses
Invoice financing is the process business owners rely on to borrow against unpaid invoices and receivables. The industry offers small business owners multiple options that include factoring, discounting, selective financing, spot factoring, and invoice auctioning. These types of invoice financing for small businesses have varying costs, terms, and requirements. Invoice financing is part of a…
Current Mortgage Rates for Residential Home Purchases
Current mortgage rates range from 3.9% for a 15-year conventional fixed-rate loan to as high as 7.13% for a 10-year home equity loan. Thirty-year fixed-rate mortgages range from 3.39% for FHA loans to 4.14% for jumbo loans. Understanding current mortgage rates helps buyers find the best rate for purchasing their home. Current Interest Rate for…
What Is Invoice Financing?
Invoice financing is a type of working capital loan for small businesses that invoice customers. By using invoice financing, business owners can borrow against the value of money they’re owed by customers. Invoice financing allows businesses to borrow 85% to 100% of invoice values at a starting rate of 0.25% per week. What Is Invoice…
How to Set Up a Rollover for Business Startups (ROBS)
A rollover for business startups (ROBS) enables entrepreneurs to access retirement funds to start or buy a business. Setting up a ROBS involves rolling an existing 401(k) into a new C corporation’s (C-corp’s) retirement plan. The new business purchases shares in the company with the ROBS 401(k), allowing the business use of the funds. To…
How to Refinance a Merchant Cash Advance
Merchant cash advances are an expensive form of small business financing, which is why many owners want to know how to refinance a merchant cash advance. To refinance a merchant cash advance, you need to determine how much you owe, check your credit, and find another loan product for which you qualify. 1. Determine the…
Types of Short-term Business Loans
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…
What Is Merchant Financing?
Merchant financing is a short-term working capital for business owners that accept credit card transactions. Credit card processing companies offer this financing, and they base loan amounts and repayment terms on a business’s credit card receivables, similar to a merchant cash advance. Merchant financing has high costs, low minimum requirements, and quick funding speeds. What…
Merchant Cash Advance vs Business Loan: What’s Best
Merchant cash advances (MCAs) and business loans are both financing options that provide small businesses with working capital. While both can be beneficial for small businesses, there are tradeoffs in costs, terms, and qualifications that business owners should consider. For most borrowers, a business loan is best, but an MCA also has uses. Merchant Cash…
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…
What Is a Term Loan & Where Can You Find One?
A term loan is the most common form of small business loan, and what most people think of when they think of a loan. With a term loan, the length of repayment is set when the loan is made, and the borrower makes regular recurring payments over this time period to repay the loan. What…