Both business and personal credit provides insight into your ability to manage debt effectively. However, business credit is related to your business’s financial history while consumer credit is based on your personal spending history. Additionally, business credit is linked to your business’s employer identification number (EIN). Meanwhile, personal credit is tied to your Social Security…
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Medical Practice Loans: Costs, Terms & Requirements
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. A Small Business Administration (SBA) loan typically will give a doctor the lowest monthly payment of most term loans. However, alternative lenders offer quicker business loans for doctors with…
How to Check Your Credit Score for Free
You can check your credit score for free through one of the major credit card issuers, including American Express, Discover, and Capital One. Personal credit scores typically range from 300 to 850, with 850 being the best score possible. Additionally, there are two primary credit scoring models: FICO® and VantageScore®. Depending on the model you…
6 Best Construction Factoring Companies 2020
Construction factoring is a financing option for businesses in the construction industry. Instead of delaying work because of slow-paying clients, factoring allows your business to forge ahead, taking on more and larger projects. We examined eight construction invoice factoring companies and compiled our list of the six best for small business owners. Top 6 Construction…
Debt Service Coverage Ratio – What It Is and How to Calculate It
When you apply for a small business loan, numbers can mean everything. For example, the lender will want to know your income, your credit score, and your debt service coverage ratio (or DSCR). Debt service coverage ratio (DSCR) measures your business’s ability to repay debt by dividing your net operating income by your total debt…
10 Ways to Solve Business Cash Flow Problems
Cash flow problems arise when businesses cannot cover debt payments, payroll expenses, or inventory restocking. Many of these problems are temporary and only pose a serious threat if they become chronic. The first four solutions are types of financing that can be used for quick, and the remaining six are long-term managerial adjustments you can…
Dental Practice Loans: Costs, Terms & Requirements
Dentists use dental practice loans for working capital like payroll or major projects like purchasing a facility. Small Business Administration (SBA) loans for dentists have the best rates and longest terms but take 30 to 90 days to fund. Alternative loans have higher rates but are quick to fund and easy to qualify for. Types…
Payroll Funding Options and Alternative Solutions
Payroll funding refers to financing used to cover your payroll expenses when you can’t make payments with available cash. It may be needed to fund an upcoming busy season, when you grow too fast, or if you have slow-paying customers. Funding speed is the most important aspect of choosing the right payroll financing option to…
What Is a Business Line of Credit?
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. Every draw you make must be repaid, with interest, over a set period of time. This makes lines of credit best…
Factoring Companies: What They Are & How to Pick One
An invoice factoring company is a financial institution that lends money to businesses based on the value of invoices. Invoice factoring companies offer lower minimum qualifications than other lenders because they rely primarily on the creditworthiness of a business’s customers. Most factoring companies specialize in a particular industry or form of factoring to serve a…
10 Differences Between Invoice Factoring and Invoice Discounting
There are two types of invoice financing: traditional invoice factoring and invoice discounting. Traditional factoring offers larger amounts of capital, but it is also costlier, and you have to be OK with the factor contacting your customers. Invoice discounting provides smaller amounts of capital but at lower rates, and it doesn’t require client contact. Invoice…
Top Alternatives to Invoice Factoring
While invoice factoring may be common in certain industries, it is not a one-size-fits-all financing solution. It does not address large capital needs, and it requires an ongoing invoice assignment. It is also active financing, so even if the business doesn’t utilize the capital, it still must pay a fee. The top alternatives to invoice…