Business can never be successful without financial aid. Investment in business is a must. Even if you have some savings, it is better to forget about it. Instead, go for the trade loans from financial institutions and banks. This will be convenient and profitable for the businessmen. Do you think a loan is a risky product? Don’t worry at all. The representatives at small business finance institution will provide each of you with the risk-free loan. Every businessmen and partner have big dreams. But these dreams cannot be fulfilled without appropriate funding.
How is small business loan risk-free?
If you have nothing as a security, the loan disbursing company will ask for the property. This means you have to keep your property paper as the mortgage in exchange for the loan. This really very risky as the bank or the financial institution will take away your property if you fail to repay the business loan amount back. There will be risk factor even if you fail to pay once or twice. But the small business loans are totally risk-free. You don’t need to keep any property papers as the mortgage. But the financial company will make sure that you are paying the loan amount in regular installment. There are a lot of sources to get a loan at a rate this is affordable.
Varied purpose of small finance loan –
You can now get such loans for many purposes. Following are a few of the reasons for which the loans are required
Financing project –
Each and every business house boasts of a target. For example, if you are dealing with garment supply, orders from the clients will be mandatory. Once you get the project, funding is required. This is the time you will require the small business loans. You have to purchase the material and then sell.
Finance for equipment –
Some businessmen also deal with the equipment. If you are one among them, loans for the equipment finance is an important fact. The microfinance companies are here to satisfy your unique needs. You can take the loan for your raw material purchase.
Operation cost –
If you are running a business, definitely you must have an office. There are so many operational expenses you need to bear in an office set up. Do you have salaried employees? Even if your business runs in no profit for few months, you have to continue paying them a salary. The rent of the establishment, electricity bill, telephone bill as well as the office maintenance costs must be borne. The small business funding providing institutions can help you in paying such expenses.
The above points are enough to know the finance requirement in a business firm. There is no security need for such type of loans. You can now get in touch with the financial institutes on the web (online). There will be no worry in business with such loan and flexibility of repayment.
Before applying for any type of loan, a budget is important. The actual financial position of a business is important to find out. Also, the financial goal of a business will be met out with the budget. This will ensure spending that much of money in the trade which is needed. Once you are done with the budget, think about the portion which you can bear. The rest amount will be extracted from financial companies. There are some preparation processes before applying for micro finance loan.
Preparation steps for small finance loan –
You need to go through certain steps before getting small business finance. Preparing self is the first step. Following are some points which you can follow:
1. Get ready with all Information –
The small finance providing company will need your information before sanctioning the amount. Your personal information, company profile, partners involved in business etc. must be placed in the written form of application. You have to provide more facts if asked by small business finance company.
2. Search for small finance company –
You can now find many micro finance institution and banks that provides finance for small business and enterprises. But, you cannot borrow money from all. It is better to have a look at each of their profile. Go for the one that is easily accessible and have low rate of interest.
3. Decision on how to apply –
There are several ways of applying for the small business finance. You can go to the local micro finance company and apply. Otherwise online application option is also present. These days’ people are searching for easy and effective way. Most of the folks are going for the online application method.
4. Desired loan amount –
Sometimes people starts applying for the finance but struck in the option where the loan amount should be mentioned. It means they have not decided upon the loan amount at first. This is a vital decision you need to take while preparing for the loan application process. You have to know how much you need to borrow.
5. Review application –
Once you have filled up the application form, the next step is left. You need to review the application one by one. Starting from the top point you have to review what you have written. You must ensure that each and every data you have provided is true as well as genuine. It is always good to follow the best practice.
The lender of the finance company will verify the facts. The documents and the photocopies you have submitted should not have any flaws. There should be no discrepancies between the information written in the form and the facts in documents. These above-mentioned points are very important to apply for small business funding.
Blog source: http://www.wscapnow.com/blog
Small business owners in Canada face the same issues as their counterparts across the border: cash crunch from time to time or the requirement of funds to finance expansion, buy equipment or launch ad campaigns. It is not all that different from the situation in the States.
Rather than opt for regular finance that requires a lot of documentation and involves delays, it is better for Canadian small business owners to opt for unsecured business loans from lenders who work in the States and also offer finance to Canadian businesses, like WSCapnow.com. Why Stateside lenders? They offer finance quickly, have the easiest of online processes and are geared to assist businesses. Restaurant and bar owners, IT professionals, small transporters, automotive dealerships, professionals and small manufacturers are people who can apply for and obtain fast funding without any collateral. For unsecured business loans Canada based businesses can approach US- based lenders and they do not have to worry about the withholding tax. Wscapnow is located in the States and by not having a presence in Canada they do not contravene the Bank Act (Canada) since the prohibitions apply only if a lender has a presence in the country. Maintaining a local bank account could also contravene the provisions of the Act and lenders transferring money directly from US bank account to borrower’s account in Canada do not violate any clauses of the Act.
The process for any small business owner in Canada to access funds from the USA lender is simple and straightforward. All that he has to do is visit the website of the lender like wscapnow that lends to Canadian borrowers, fill in an initial form to determine eligibility and wait for the lender to call. Thereafter the process is easy. The borrower fills in a form, online if preferred, and submits electronic documentation such as proof of identity, proof of ownership of business and proof of residence along with bank statement for the previous 6 months. Usually, if these primary documents are in order, the loan is approved and money is deposited into the bank account of the borrower in Canada in about 4 to 5 working days. It is not that there is any lack of Canadian finance companies that offer unsecured funding but there are times when a US lender’s terms, a rate of interest and approach are better suited to Canadian businesses.
It may be advantageous to consider US lenders since the terms are more flexible and the rate of interest may be low. Further, if a lender wishes to obtain guidance and advice from expert professionals, they can get it without any obligation. Most lenders are geared to lend and make money. Only a few like wscapnow care for borrowers and wish to see them grow. A phone call or submission of the online form is a good starting point to obtaining unsecured finance on the softest terms from US lender for Canadian small business owners.
Savvy businessmen rely on the dictum “other people’s money” to move ahead and up the business ladder. Which is why, even if they have property or assets, they do not sell it to raise money in order to start a business or to meet needs of funds when they are up and running but come up against bumps. They may mortgage assets and get loans or, better still, opt for unsecured loans from various sources. A whole world of business financiers is waiting for businesses to knock on their doors and ask for funds. Why way to go?
If time is not of the essence then SBA loans are the way to go. These are government backed loans with the low rate of interest. One can get a loan under 7A program for special requirement, access the microloan program for short-term requirements or go in for CDC/504 loan program for long-term financing for expansion or modernization. The downside is that one must be prepared for paperwork and delays.
Working capital financing and order purchase or bill purchase
This type of financing gets money in the hands of a small business owner against orders he has received or bills he has received or just a rolling sort of credit for working capital. The downside to this is a high rate of interest.
Merchant cash advance
Lenders usually advance amounts to businesses that are already in existence and link repayment to daily card sales at a usurious rate of interest that could be as high as 50%.
The downsides to the above forms of business financing services are that either there is a delay in obtaining cash or one has to be prepared to pay a high rate of interest. On the other hand, there are easier methods of obtaining finance such as business financing by wscapnow.com, a painless and quick procedure to help cash-strapped businessmen get the vital oxygen to help them breathe easy.
Financing is more than just providing funds. Small business owners usually lack a solid business plan based on business intelligence or future thinking because they are too busy running a day to day operations. If they need cash they borrow and repay, even if it means shelling out more interest than they should. Wscapnow helps businessmen not only with cash but with guidance that will take them to the next level, which are growth and a healthy bottom line.
One can opt for merchant cash advance but at a much more considerate and reasonable factor rate, with no upfront processing fees or any unpleasant hidden charges. One can ask for a small business loan on soft terms and get it on repayment terms of 1 to 3 years. There is no need to have an exemplary credit history, furnish collateral or undergo extensive paperwork. Experts guide borrowers on what will be best and if MCA suits them, then they provide card processing terminals at no extra cost. Lenders who work on the premise that it is not worth killing the goose that lays the golden egg do prosper along with their clients.
For small business owners the going can be quite tough when it comes to financing but not an impossible task. Savvy businessmen find out the best sources of finance and leverage them to grow using the basic principle of “other people’s money”. The trick is to get finance at the lowest rate and on the best terms, which means looking at various business financier and their services.
There are different kinds of business financing services that small business owners can turn to for their requirement of funding. One is the secured funding for which a borrower usually furnishes a guarantee and collateral. The interest rate is low and repayment may be extended over 3 to 5 years but it takes time for applications to be approved. Banks may even reject applications. The second type of business funding service is one that offers unsecured business loans and cash advances.
Even in this category, there are differences. One financing service for small business may offer unsecured advance or loan but repayment may be strict, the interest rate may be cripplingly high and they may add their own “fixed” charges. More reasonable services offer flexible repayment terms, affordable interest rate and may even waive fixed fees. After all, they are making money from interest are they not?
There is more flexibility in financing services for small businesses. Lenders may advance a lump sum amount. Repayment may be linked to daily credit card sales as in the case of MCA, or one can negotiate a fixed monthly interest. The Rate of interest may be fixed or may be variable. Borrowers can also seek alternate funding methods from such services. This can be in the form of invoice credit. Invoices may be outstanding and lenders will advance cash against such outstanding invoice, which, when paid, are credited to the borrower with the lender taking back the amount he advanced plus charges.
Borrowers can even look at various other options if they are not in immediate and dire need of cash from business lending organizations. For instance, one can arrange a line of credit, which means the borrower need not withdraw the amount sanctioned immediately but has it on hold should ever need it such as making payments for purchases as and when required. Borrower benefits since he does not have to divert funds from routine cash flow to fund purchases and he can make payment in installments or pay the entire amount after a fixed period during which time he can utilize his funds for revenue generation. Business advances also consider requests for cash to finance marketing campaigns, renovation of premises, purchase of equipment and other needs. The cost of money is high in unsecured methods but, if a savvy business owner plans it right, he can well afford it and also make a profit by the infusion of cash.
One can get small business financing services from wscapnow.com, with access to expert consultation to help plan a business better and grow.
Blog Source: http://www.wscapnow.com/blog/
Loan prolonged only on the basis of the borrower’s economic level, credit history, creditworthiness, and the general image. He clues a promissory note but does not vow any particular commodity as ancillary. Unsecured loan also termed character loan, signature loan or the good faith loan. An unsecured loan is that loan that is attaining without the use of assets as ancillary for the loan and it is denote as personal loan or the signature loan.
In the investment market, the loan providers can help him out to bring out his business from the debts. They provide the many different services which can benefit him in carrying out his business processes effectively. They ask him to perform the basic three steps and help him to process out the routine firm’s activities. Therefore for the business drowning in debts, unsecured business funding can aid a lot in many manners.
They just requires him to apply for the amount of business fund he is seeking of and helps him to decide upon the crucial decision needed for the continue running of business. He needs a proper guidance before taking such significant step which can affects his business positively. The end step after the deciding factor is the funding done by the company which is concerned of to fund him. This in a way ensures and motivates him to work efficiently to clear off all his business debts.
Unsecured business funding by wscapnow.com has following advantages:
- They require no private ancillary.
- For him to qualify for the business loan, no stellar credit history is required.
- They require nil checks to write.
- They aid in maximum business growth on a busy day.
- They need only a minimum of $10,000 of the gross sales per month to qualify and excluding start ups.
- It is an instant and convenient as compared to the other alternatives such as the traditional loan.
The unsecured business loan acts as the bond of trust. The funding firm provides the enormous capital to the business on the basis of the understanding that the business will perform better to pay back the loan on time. He gets the effective help by the funding firm to boost up his business and perform brilliantly to maximize his own business sales and carry out the routine activities. The funding fund aid the borrower with the surplus amount till the time period decided with a minimum percentage of interest.
The unsecured business loan comprises of the following features:
- They demand no extra credit to qualify for the signature loan.
- The payments made by the borrowers are in the form of percentage depending upon the monthly sale.
- There are no such restrictions to use the fund provided only for the business processes. He can use it for any business purpose.
- It is a rapid and convenient process to improve the business functioning.
- The loan can be providing for any industry.
The aim of any firm owner should be to attain long term wealth maximization. There is a diversity of funding alternatives and one of them is unsecured business financing. It is ideal for the borrowers who are just gearing up.
No doubt, it needed money to make more money! It is more vital when considering business funding. This funding process includes getting a cash to start a business, which can sometimes be a challenge. The traditional means to get it done is consulting a bank but it seems tough, as they do not lend money to the business owners who have no appealing assets.
To make it simpler he can consult various companies who are providing reliable solutions online for such issues. Multiple companies understand that small- scaled and medium-sized businesses at times need immediate access to money for keeping their regular operations running smoothly and as professionally as possible. He can consult them to make his Small Business Funding much easier like never before.
Every business needs funds for existing in corporate market, no matter whether it is a small or big scale company. For a small business, there is a drawback that they do not have strong background or working history like a brand. All this make it complicated for people to gather funds. Apart from this, some top online companies are providing quick fund for their customers. He can utilize their services and facilities to start with what is necessity.
Essential factors necessary for business funding:
Numerous factors would help him to get desired money with complete ease. Considering such factors, he can access the loan without having any problem.
- Have complete knowledge about the authentic investment you need.
- Keep in mind that small business requires much patience.
- He needs to be single-minded to do well in his line of business and stay focused to achieve the targeted goal.
- Patiently plan the funding strategy in a manner that things will go on the way he wants them to.
Services offered by funding companies:
The companies, which are providing online help in form of funds are also have appointed experts to guide their clients or business owners. Firstly, they do not play partial and offer funds for both big and small businesses, which is really admiring. Secondly, they have expert persons to guide him what suits his business accurately. Their consultant will hear and understand all the business requirements and caters the entire needs.
If found something which is going in a wrong way or may be going wrong in future, they immediately warn him and consult better idea. It is not necessary to invest according to them only but consulting is surely not harmful. Overall, there are many alternatives to gather funds for starting a business with strong backups. You just have to select the company or group who can believe your ideas and help you out by providing essential funds.
Earlier, it was little hard to get loan for small businesses but at present several companies makes it easier. He can easily confer with their agents and get perfect solutions for various problems. Hence, Small Business Funding is not a big issue for him.
A recent forum held by a finance network company gave insights into perspectives of financing from the borrower’s side and from lenders’ viewpoint. One fact that stands out is that regular lending institutions are tightening their purse strings when it comes to funding small businesses. Predatory, unregulated online lenders are having a field day and are primarily responsible for driving a number of businesses into a debt trap. The forum highlighted the need for innovative, borrower-friendly lending procedures that would really help them grow. Where such small businesses are perceived as high risk by regular lenders, innovative lenders view them as distinctive growth possibilities given the right infusion of cash at the right time. Such businesses also generate employment with at least 3 people on their payroll and need encouragement.
Business financing by wscapnow.com has always believed in blazing innovative paths along the financial lending routes. Its cash advance and business financing strategies are shaped and influenced by requirements of small businesses and their expectations. The objective is to help enterprises in critical need of cash infusion with funds at the right time. When a guy is gasping for breath one does not ask for solid credit history or collateral to pull out of a swamp. Pull him out first is the motto.
Business financing can be a double edged sword. If it can oxygenate an enterprise gasping for breath, it can also strangulate if it comes from usurious lenders who charge exorbitant interest rates that, forever, put the borrower in a debt spiral. Water Street Capital does not believe in taking advantage of a guy’s situation to put a stranglehold on him. Borrowers find the best customized terms that actually help revitalize their businesses. It is the norm, rather than the exception, that a small business will face a cash crunch every now and then. Business might be slow and inventory may pile up resulting in blockage of funds while employee salary and vendor payment liabilities stare them in the face. At times like this when there is a liquidity crisis, immediate funding with least hassles is what a borrower is looking for and what he gets through wscapnow.
The process of obtaining merchant cash advances is simple enough. One submits minimum possible documentation such as bank statement, turnover figures for last 3 to 6 months, personal identification papers and an application form. Credit history does not matter but what matters is that the business must be running and should be generating $ 10000 gross sales each month in order to qualify. A simple verification is followed by approval and disbursal of funds within 3 days. The borrower can heave a sigh of relief at being able to meet his commitments. Repayment is easy: daily percentage of sales or a fixed monthly amount. Wscapnow is the ICU for businesses and offers the best factor rate that makes borrowing affordable. Innovative, future-looking approach centered on helping rather than exploiting, is the core of wscapnow’s policy that is paying rich dividends.
When looking for small business funding, business owners have a variety of options at their disposal. The first and most common option people think of are banks. Banks were invented to loan out money so it makes sense to look there first. However, there are so many more options in the year 2016. While many businesses go with the better-known financing option via a traditional bank loan, more and more borrowers are turning to merchant cash advances.
A merchant cash advance is essentially the same thing as a loan but with a few twists. Water Street Capital is a great example of such a business and offers some of the best tips on the merchant cash advance business. Although it is usually much easier to apply, there are still a few general tips that are good to know before starting the process.
- Minimum Requirements
Before any business owner even thinks of applying for a merchant cash, he/she should be aware of the minimum requirements for getting approved. The most important rule is that no startups are approved. Merchant cash advance business are like investors. There has to be evidence of an already successful business that generates at least $10,000 in gross sales per month. This ensures that the lender will be repaid rather than basing it on a credit score.
- Applying Online
If the business meets the $10,000 minimum, they can easily apply online. As stated earlier, no excellent credit history is necessary. The application usually is approved and the borrow can receive the money in as little as 3 business days! While amounts vary with the lenders, Water Street Capital can lend out up to $500,000 if the small business meets the criteria.
- Uses of a Merchant Cash Advance
A merchant cash advance is much more flexible than a traditional loan and can be used on a number of things. Some business owners use it to add new employees to the payroll until business speeds up again. There have been business owners that used the money to advertise on billboards or television. Some simply use the loan to get caught up with bills during a slow period.
- Repayment method
Even if the business is experiencing a slow period, that is okay! With a traditional bank loan, the payments are fixed at a certain amount for each month, yet with a merchant cash advance the rate actually fluctuates. That might sound scary, but it shouldn’t; the payment varies depending on how well the business does during that certain month. A small percentage is retracted from the business’ sales each month and automatically applied to the outstanding balance. If the sales are down for some reason, the owner simply pays back a smaller amount. During high times, however, more money is applied to the account and it is paid off faster than expected. Either way, the business owner has much less risk of not being able to repay.