All Financing Articles - Page 21

SBA 7(a) Loan: Rates, Terms & Requirements

By Tricia Tetreault on June 26, 2019 | Business Loans, Financing, Ultimate Guide | Comments (0)

Small Business Administration (SBA) 7(a) loans provide up to $5 million in financing to small, United States-based, for-profit businesses. They feature relatively low-interest rates ranging from 7.75% to 10.25%. SBA 7(a) loans are good for businesses needing long-term capital to fund working capital, equipment purchase, or commercial real estate acquisition. If the COVID-19 pandemic has…

SBA 504 Loan: Buy Commercial Real Estate With SBA/CDC Loans

By Tricia Tetreault on June 24, 2019 | Business Loans, Financing, Ultimate Guide | Comments (11)

The SBA 504 loan program combines two loans―one from a lender, one from a community development corporation (CDC)―that can be used for commercial real estate, and other fixed assets like equipment. The lender portion covers up to 50% of the loan, the CDC portion covers 40%, with the borrower providing the remaining 10%. What an…

Franchise Financing: Costs, Features, & Providers

By Tricia Tetreault on June 24, 2019 | Financing, Startup Financing, Ultimate Guide | Comments (2)

Franchise financing is used to fund the purchase of a franchise or provide working capital to an existing franchise. The costs and terms associated with franchise loans vary by the type you choose. Small Business Administration (SBA) loans for franchises have interest rates from 7.75% to 10.25%, and loan terms of up to 10 years….

100 Top SBA Lenders For Loans Under $150K

By Tricia Tetreault on June 20, 2019 | Business Loans, Buyer's Guide, Financing | Comments (0)

Between 2010 and 2018, based on data we obtained from the Small Business Administration (SBA), lenders collectively issued 493,843 SBA 7(a) loans to small businesses. Of these loans, 57% were for amounts of $150,000 or less. We’ve compiled a list of the 100 top SBA lenders for loans under $150K. 100 Top SBA Lenders for…

6 Best Working Capital Loans 2020

By Dennis Shirshikov on June 19, 2019 | Business Loans, Buyer's Guide, Financing | Comments (9)

A working capital loan is short-term business funding used to finance a company’s day-to-day operations, like buying inventory or covering payroll. Common small business working capital loans are lines of credit, term loans, invoice financing, and merchant cash advances. We reviewed working capital loan providers on costs, terms, and qualifications to identify the top six….

Business Line of Credit: What It Is, Where to Get One & More

By Dennis Shirshikov on June 19, 2019 | Business Loans, Financing, What is | Comments (2)

A small business line of credit (LOC) allows you to draw against a predetermined credit limit, as you need it, instead of receiving the full loan amount at one time like a term loan. The biggest advantage of a business credit line is that you only pay interest on the funds you draw. How a…

6 Best Working Capital Lines of Credit 2020

By Dennis Shirshikov on June 17, 2019 | Business Loans, Buyer's Guide, Financing | Comments (0)

Businesses can use a small business working capital line of credit to cover temporary gaps in working capital resulting from seasonality or unexpected expenses. In contrast to term loans, it’s best used for smaller gaps in funding rather than large one-time payments. The best lenders offer flexible terms to small businesses for working capital management….

SBA Microloans: What They Are & Who They’re Right For

By Tricia Tetreault on June 17, 2019 | Business Loans, Financing, What is | Comments (0)

The Small Business Administration (SBA) makes microloans of up to $50,000 available to small businesses through nonprofit lenders. Interest rates for SBA microloans range from 8% to 13%, with terms of up to six years. SBA microloans are available to startups and established businesses, and provide funding much faster than other SBA loans. What is…

Angel Investor vs Venture Capitalist Funding: Which Is Best?

By Dennis Shirshikov on June 17, 2019 | Financing, Startup Financing, Versus | Comments (0)

When considering raising funding from an angel investor compared to a venture capitalist, the deciding factor is your startup stage. Startups ready to scale are best served by venture capital, which can provide more funding for equity. However, startups in earlier stages may not need as much funding and are better served by angel investors….

Interest Rate vs APR: How They Differ & When They’re Used

By Dennis Shirshikov on June 12, 2019 | Financing, Real Estate Financing, Versus | Comments (0)

An annual percentage rate (APR) and interest rate both represent the annual cost of borrowing as a percentage of the borrowed amount. Lenders use your interest rate to calculate monthly payments and disclose the APR. APR includes some fees in addition to interest resulting in a more comprehensive annualized cost of borrowing. What an Interest…

Medical Practice Loans: Where to Get Business Loans for Doctors

By Dennis Shirshikov on June 10, 2019 | Business Loans, Financing, What is | Comments (0)

Doctors who own their own practice can generally qualify for most medical practice loans because of their high earning potential, strong net worth, and stable revenue. An SBA loan will typically give a doctor the lowest monthly payment of most term loans. However, alternative lenders offer quicker business loans for doctors with less paperwork. If…