Keys to Getting a Small Business Loan

In most instances, it is imperative for businesses to borrow money to start their company, expand, or even sell their companies. It is almost imperative for people to approach a bank and some people are hesitant due to the preparation and need to organize a great business proposal.

If a business owner has a good outline and direction for the company they may be in the position to successfully ask for a loan. Preparation is the key. You may want to visit the bank and see what the qualifications and expectations are for the lender. It would be best to visit your own personal bank. You also may want to thoroughly fill out the loan application. You may want to seek advice from other people who have already done it. Visiting your local SBA (Small Business Association) office may be beneficial. The idea is to build partnerships with as many organizations as possible.

You should also make sure you have a clear plan on how you will repay the loan even if your business goes sour. You will also have to discuss and share your credit history with the bank. It is best to be in good credit shape.

You should also try to muster up a great deal of your own money to almost match or stand against the amount you are asking for. This will give the bank the impression that you are serious about your commitment and have already saved money for your business.

If the bank you choose declines you, that’s alright, just keep trying. One slammed door may equate one opened door. In the business world you will always run into obstacles and dry seasons but preparation and the willingness to never give up will help you achieve your goals.

The good part about working with a bank is the fact that they will help you determine what is good for your company. Make sure you take the time to work with a bank who takes time to understand your business and your unique credit needs.

  1. Develop a written business plan
  2. Show you have a personal investment and a financial stake in the business
  3. Prove you have management experience and have a great knowledge of the field of business you are venturing into
  4. Show that you have a record of maintaining adequate retained earnings
  5. Prepare a contingency plan in case things go bad.
  6. Develop a plan that can protect you if a key person leaves

Can Payday Loans Really Help You?

We have all seen payday loans advertised on the Internet, heard the commercials on the radio or television, and seen lenders’ offices while driving around town.

You might even know someone who has borrowed cash from guaranteed payday loans institutions in the past, or is currently paying back a loan. No one ever wants to think that a time will come when they may need a payday advance.

However, if an emergency does present itself and you are in need of quick cash, are same day loans really a good idea? Can they actually help you out if you are in a financial bind?

This question is asked by people every day they find themselves in need of fast cash to cover an emergency. With so many financial counselors advising against payday loans and people who talk about their terrible experiences, one must wonder if the myths are really true.

Most people who work in finance advise people to find other options and avoid payday lenders at all costs, but if this is your last option, it is wise to know the advantages and risks involved by payday advances.

How do payday loans work?

Understanding how these short-term loans work is the first step to breaking down any myths you may have heard. If you have never used one before, you might not understand all the details.

Years ago, the word has it that, if people needed quick cash, they had to resort to illegal means and seek out the help of a loan shark. This meant borrowing money from a sketchy person who could charge you whatever they saw fit for interest.

The terms of this loan could change at any time, because some thug with a baseball bat would come break your kneecaps if you did not agree. You could also get hurt for not being able to pay on time. The loan shark would send their lackey to bust up your business, home, or break your fingers for nonpayment.

Many of us do not know whether this is the truth or a myth, and the same thing goes for payday advances. Just as they spoke bad about loan sharks, people now often speak badly about bad credit loans and the lenders that provide them, but have never actually experienced borrowing from one. This is why there are so many myths.

Payday advances are short-term loans that help people out when they are in a financial crisis. They do not require a credit check and are based on your income. This makes them convenient for people with bad credit or no credit history that cannot borrow from traditional lenders. The loans are easy to apply for and only require proof of income and identity.

They come at a higher interest rate than traditional loans, but, used correctly, can be paid back with minimal interest and fees. Most lenders charge between $15-$25 dollars per $100 dollars borrowed, which is much cheaper than your average loan shark that could charge you 100 percent interest for your loan.

Payday Loans Benefits

  1. No credit check – Payday lenders do not require a credit check in order to approve your loan application.
  2. Security - Payday lenders do not require information from your financial institution or a social security number to apply, which keeps your personal information secure. This is great in a time where identity theft is high.
  3. Flexible payments - Payday advances are meant to be short term, but many lenders allow you thirty days to repay the loan. This is helpful if you cannot afford to pay back the full amount with your next paycheck.
  4. Fairly reasonable interest - While the cost might seem high, it can be a lot cheaper than paying late fees on credit cards or reconnection fees.

Payday loans are not for everyone and should be used wisely, but, if you are in a bind they may really help you out.