Small Business Funding…How Not To Bungle

In last post I discussed the types of loan and funding choices available. Now I will talk about the requirements of successful loan application for Small Business Funding.

Applying for the commercial credit demands a lot of preparation documentation wise. The thoroughness and accuracy of the documents are absolute musts for productive borrowing, so it pays to set up them carefully. Some of the must have documents are:

• Financial statements: profit and loss statement, balance sheet and tax returns of the company
• Personal financial statements and tax returns for last three years
• Cash flow estimations on the monthly basis
• Comprehensive business plan
• Precise loan utilization detailing
• Profiles of decision making people i.e. top management

Earlier really going to the banks or any other financial institution doesn’t forget to have your financial documents reviewed by a qualified accountant, for certain in case you require capital funding.

You can deflect all those cumbrous paperwork if you just want working capital funding. In this case you can prefer for business cash advance.

The cash advance is to be repaid from the credit card sales that the business does in a particular period, commonly through automatic debit. Organizations like Merchantcashdirect furnish such cash advance.

Types of Loans for Small Business

Hi, being a financial advisor I am commonly flooded with the enquiries regarding financial backing process, particularly for small businesses. I am surprised by the lack of consciousness in most of the people making researches; mind you some of them are very successful at what they are doing.

It appears there is some kind of uneasiness amongst the small business owners who are searching either working capital loans or capital loans. May be it is those power suits………

No matter………….The procedure is very smooth, provided you are well prepared and well informed. Through this blog, I will talk about different aspects of procedure involved in small business funding .

To begin with, let’s talk about the types of loan and funding options available:

Long Term loans are the most common loans. They are mainly used as a capital funding source. Refund is monthly over a term in agreement.

Short term loans are for both capital and working capital funding source, and are to be refund in one year or less in a lump sum at the end of the term, rather of monthly.

Loan against equipments is more easygoing to secure. The equipments purchased through with funds are the direct collateral for the loan. Used for capital disbursals only.

Credit lines are mostly for working capital financial support. Alternatively of allowing the full amount of loan, a certain amount per year is loaned.

One great option is other than going for loans from banks and financial institutions: availing business cash advance.

The cash advance is to be refunded from the credit card sales that the business does in a particular time period, commonly through automatic debit. Organizations like Merchantcashdirect provide such cash advance.

In my next posting I will discuss the financial institutions providing loans, and essentials of a good loan application.