Loans, Insurance & credit card information

When you are in business for yourself, you need to realize that you have to take full advantage of EVERYTHING that is available to you. I understand that locating money for your business needs is not as easy as ordering a grant book from a guy on television with question marks all over his suit, but the truth is YOU CAN INDEED use the federal government to grow your small business.

The government backed loans that you want to look into is the Small Business Administrations (SBA) GAAP loan used for business expansion. Now, you may be thinking that obtaining Federal Government small business loans through the SBA would be terribly difficult, but what if I were to tell you that 99.9% of EVERYONE that applies gets the loan immediately? Truly amazing isn’t it. For many years, the Federal Government small business loans have been granted to the general public, it’s simply a matter of locating the one that is best for you.

Getting back to the GAAP line/loan, there is not a better or easier way for you to fund your business. Here are a few of the points why it is such a good thing to go after.

1. It is an unsecured line, which means that there are no assets or collateral needed to obtain the loan.

2. It is quick. The approved funds can be in your account in 10 business days.

3. Extremely low interest rates , because they are government backed.

4. Almost everyone is approved.

The trick to obtaining these loans is to find them. We have made our business out of jus locating these sources and you would be surprised at just how many government backed programs are available. All are nationwide and you simply have to know the right person to contact and let them know what you need.

So to wrap things up….Can you locate and use the Federal Government to fund your small business in the form of a loan? Yes indeed you can.

Are you ready for this? In a truly innovative move, Congress is proposing to let the Small Business Administration pre-qualify your small business for a loan. I’m not kidding. If this ever becomes a common occurrence, you can imagine how it will dramatically change the face of small business lending.

We all know the drill. When applying for a home loan or credit card, for example, you can be pre-qualified. This means someone is checking your income, credit, business history, and the like to make a preliminary decision. If you’re pre-qualified, you are assured to get a loan when you finish filling out the mounds of paperwork. A similar process works with a small business loan.

Under the SBA loan program, all loans are made (with the exception of FEMA disaster loans and the Microloan program) by private SBA licensed lenders. They made the decisions and do the pre-qualification. But there’s always doubt in the mind of a lender as to which borrower should be approved. Remember SBA lenders are audited frequently and their decisions, especially if there is a default, can be critiqued. So the SBA is going to step in and make the decision for the banks.

This novel program is expressed in Section 111 of the Small Business Credit Expansion and Loan Markets Stabilization Act of 2009. There is budgeted a department of 250 Federal workers who will collect all the information and determine creditworthiness. If approved, you will be placed on a list which is made available first to lenders within 100 miles of your principal place of business. If no one bites off, it can then being disseminated to preferred lenders throughout the nation.

But it’s even better. If no lender opts to make a loan, the SBA themselves will directly loan monies to you. It cannot be emphasized how substantial a change this is. The SBA simply does not make direct loans other than those in a disaster area.

And, there is an SBA loan program in effect that is delivering the goods to small businesses. Believe it or not, there is a loan program out there and SBA lenders are actually making loans currently: the Community Express Loan Program. This gives unsecured small business loans between $5,000 and $50,000 with very little paperwork, answers typically in two days, interest rates presently at 7.75%, funding and two weeks, and monies wired directly to your business account. There are still lenders participating in this program.

Hopefully this novel approach will catch on.

The Small Business Administration states that business loans for women are on the rise, and will continue to be needed on an increasing basis in coming years. Business loans for women are more popular than ever due to a variety of factors.

1. Women are taking the initiative needed to become business owners and are opening new businesses.

According to the most recent data on businesses, available from the U.S. Department of Commerce, Bureau of the Census, there were 5.4 million women-owned businesses in the United States in 1997. The Bureau of the Census also stated that the number of women-owned firms grew almost three times as fast as all firms between 1992 and 1997. They have reported that the number of women-owned firms increased by 16 percent in this five-year period, compared to a six percent increase for United States firms in general. The 1997 Economic Census states that women-owned firms made up 26 percent of the nation’s 20.8 million nonfarm businesses, employed seven percent of the 103 million workers, and generated four percent of the $18.6 trillion in receipts. The National Foundation for Women Business Owners states that the current estimated growth rate in the number of women-owned firms is nearly twice that of all firms, and this increase is a trend that is expected to increase even more in coming years. The anticipated increase in women-owned firms, therefore, brings about a tremendous need for business loans for women.

2. The past decade has shown a boom in the home-based business arena.

The increase in home-based businesses popping up nationwide is due very much to the idea that many mothers are starting businesses in order to choose a work-at-home lifestyle to bring income into the home, and at the same time, raise their children at home rather than placing them in daycare. While these home-based business are operated in a nontraditional work environment, in perhaps a nontraditional style of operation, they are nonetheless the same as other businesses in the style of carrying inventory, making purchases for the business, marketing the business, and creating a web presence. Business loans for women are crucial for small businesses such as these. Many have proven to be just as successful or even more successful than traditional businesses and businesses owned by men.

3. Women often purchase existing businesses.

Nearly no explanation is needed to stress the need for business loans for women in this area. Purchasing a business requires money, most often obtained through business loans for women or through another type of loan. Because more and more women are leaving the work place and carefully weighing all factors of owning a business, purchasing an existing business is a wonderful option for those that don’t want the risk involved in actually starting a business. By purchasing an existing business, it allows the potential new owner the opportunity to carefully examine the existing business regarding many things, including its profitability, gross sales, and market position. A business that rates high in all three areas is a good business investment for a new potential business owner, especially a women with past business experience. Business loans for women can offer a new, potential business owner the opportunity needed to operate a successful business.

4. With more women in business for themselves, business loans for women are needed to offer women capital crucial for a business to succeed.

Regardless of whether the business is home-based or more traditional in nature, and whether it’s a start-up business or was a purchased, existing business, capital is needed for a business to succeed, and to start, business loans for women are of great assistance. Business loans for women offer women a way of starting a new business with capital. Business loans for women can also assist women in increasing sales for an existing business, as well as marketing the business or expanding a business.

5. Women tend to choose to operate businesses in the services or retail trade industries.

According to the U.S. Census Bureau, more than seven out of every 10 women-owned businesses and firms are operated in the services or retail trade industries. Considering the nature of these two types of businesses, one can easily see why the need for business loans for women is on the rise. In order for a woman to successfully operate a retail trade business, for example, inventory is needed. While drop shipping can sometimes be an option, especially for an at-home retail business operated through an online store, more realistically speaking, inventory needs to be purchased. Business loans for women offer women the option of purchasing inventory to be sold in a retail business. Likewise, a service-related business normally operates with the use of equipment, and is often specialized equipment for that specific type of business. The availability of business loans for women offers women the opportunity to purchase equipment and supplies needed to operate and succeed in running a service-related business.

Business loans for women are increasingly important for female business owners. However, careful consideration should be taken before securing a business loan to make sure that the loan is truly needed for the business to expand and succeed, and to make sure that the loan payments will easily fit into the business’ budget.

SBA Loans

Explanation: The Small Business Administration is an independent agency of the federal government. Its mission is to help people start, build and grow businesses. The SBA does not actually supply the loan; lenders are responsible for that part. But the SBA guarantees between 50 to 85 percent of the loan, making the lender less wary of lending to riskier borrowers. The SBA does this by backing and securing loans that are given by banks.

Requirements/Documentation: Applicants of SBA loans will be required to provide a business profile, loan request, collateral, business financial statements and personal financial statements.

Pros: SBA can back loans of up to $2million dollars. Start up businesses can also take advantage of SBA loans if they meet the requirements, provide the proper documentation and present a sound business plan.

Cons: Borrowers are at the SBA’s discretion when it comes to getting a loan. They have to be able to persuade them that the loan will be put to good use, and they must outline exactly how the loan will be used. Also, as bank lending practices tighten, SBA loans are also becoming harder to receive.

Business Line of Credit

Explanation: A business line of credit is like a credit card for one’s business. A business line of credit offers revolving credit with lines that typically range from $10,000 to $100,000.

Requirements/Documentation: Many different banks offer business lines of credit. They may offer lines of up to $25,000, or lines of $25,000 and over. Requirements may vary depending on the lender that you are working with.

Pros: You have accessible cash on hand anytime you want. Also, many lenders do not require borrowers to have collateral to receive a business line of credit.

Cons: Like a personal credit card, you must pay interest on the outstanding monthly balance.

Business Cash Advance

Explanation: A business cash advance is a purchase of a business’s future credit card receivables. Borrowers receive an upfront lump sum and in return, a small percentage from their business’s future credit card sales is deducted and used to repay the advance.

Requirements/Documentation: Most business cash advance lenders require that the borrower has a business that has been in operation for at least four months, and that the business processes a minimum of $2,500 per month in credit card sales. Borrowers must provide lenders with at least the four most recent months of their business’s credit card statements.

Pros: Borrowers do not need to have collateral to receive a business cash advance. There is no interest on the advance, and there are no fixed monthly payments. There are also no penalties for repaying the advance slower or faster than expected. Also, there are no restrictions on how your business cash advance can be used.

Cons: Business cash advances can not be used to fund start-ups, as the borrower must have owned his/her business for at least four months to be eligible to receive the advance. Also, only merchant businesses that process credit card transactions are eligible to receive business cash advances, as the payments are taken as a small percentage from a business’s daily credit card sales.

Small businesses will from time to time require extra funds for expansion or simply maintenance. While there are many sources of finance, loans happen to be the most preferred for various reasons. However, small business loans may not be easy to come by, especially from the banks. The reason is that, you have to provide them with a lot of details regarding the enterprise so that they are able to gauge your credit worth.

To improve the prospects of being extended the loan facility, the recommendable thing to do is to present your loan application form accompanied with a business proposal. A well written proposal will capture both the scope of your enterprise and the financial needs at hand. A proposal also presents your enterprise as one that can be trusted to repay the amount and interest without defaulting.

A well written proposal will suffice to accompany your loan application forms. It should therefore include a number of important things. These are, the name of the enterprise, name of owners or partners, the Social Security number for each one of them, their locations and addresses. The proposal should also describe the enterprise in brief, showing its goals, objectives and nature of operations.

It should also capture the organizational structure of the enterprise, including number of employees. The structure should outline the profile of each of the principals of the enterprise. Other details are the amount required, and purpose of the loan applied for. Once you have this in place, you can go ahead and send your application.