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…
What Is a Personal Guarantee, and How Do I Negotiate One?
There are some types of loans that don’t require personal guarantees, but most lenders require personal guarantees from small business owners. The personal guarantee pledges personal assets to the lender, which it can pursue if the business defaults. It’s required from anyone that signs the loan, and business owners may be able to negotiate it….
6 Best Easy Business Loans 2020
With so many online lenders these days, getting a small business loan has become much easier. Easy small business loans have short applications, simple repayment options, easy-to-manage accounts, and fast funding process. Easy business loans can get funded in 24 hours and help small business owners save time so they can focus on their business….
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…
Merchant Cash Advance Calculator
How to Read Your Merchant Cash Advance Calculator Results Factor rate: The factor rate is what merchant cash advance providers use to determine the total amount you’ll need to repay. The factor rate for a merchant cash advance typically ranges from 1.1x to 1.5x the amount advanced. If you receive a factor rate above 1.5x…
What Is Asset-based Lending? The Ultimate Guide
Asset-based lending is a form of business financing that uses a business asset as collateral for a loan. If you default on the loan, the lender can take possession of the asset. Typical types of asset-based loans include accounts receivable financing, inventory financing, equipment financing, or real estate financing. What Asset-based Lending Is Asset-based lending…
APR Calculator: What It Is & How to Calculate
How to Read Your APR Calculator Results Interest rate: This is the primary input for the APR calculator and represents the annualized cost of borrowing money without fees. The calculator assumes that the interest rate is fixed throughout the life of the loan. Repayment term: This input is the number of years that the loan…
26 Key Small Business Loan Requirements To Know
If you’re trying to qualify for business financing, you’ll have to comply with certain small business loan requirements. Knowing the typical requirements prior to applying for financing can save you a lot of time and frustration as a business owner. We’ve compiled a list of key small business loan requirements. To ensure that you are…
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….
Debt Financing: The Ultimate Guide
Debt financing is the most common form of small business financing. It involves borrowing funds from a lender and repaying the borrowed amount—plus interest—over a set period of time by means of regularly recurring payments. Common forms of debt financing include loans, lines of credit, and credit cards. What Is Debt Financing? Debt financing provides…
Nonprofit Business Loans: The Ultimate Guide
Nonprofit business loans are made to nonprofit organizations by banks, credit unions, community development financial institutions, or other lenders. The most common types of loans issued to nonprofit organizations are asset-based loans, term loans, or lines of credit. These loans can be used for working capital, real estate acquisition, bridge loans, or equipment financing. Nonprofit…
27 Microfinance Statistics You Need to Know
Microfinancing is used to stimulate economic growth by providing small loans to those who are underserved by conventional lending. This type of financing is used worldwide, with loans smaller than $100 offered in some underdeveloped countries. Readers can use the following statistics to learn more about how microfinancing works and the populations it serves. The…