Getting Small Business Loans with No Collateral in this Recession

The global financial crisis has made it quite difficult for companies, especially small businesses, to get business loans. Ironically, it is also in this situation that smaller companies often need additional capital infusion to boost income. You may need to get small business loans to acquire a better business location, construct a new building, renovate your premises, pay for new equipment, fixtures or furniture or increase inventory and working capital.

Most Small Business Loans Require Collateral

To get business loans, even small business loans, is a major challenge.

First you need to identify which among the many types of small business loans you need. Small business loans ranging from $5,000.00 to $35,000.00 are called micro loans. For larger needs, such as for the acquisition of land, buildings and other major fixed assets, development financing is what you should find. There are also import export loans as well as franchise financing. Do your research to find out if you are qualified for small business loans guaranteed by the U.S. Small Business Administration or SBA.

Any of these small business loans will require extensive preparations and paperwork. As a small business owner, you will need to prove your credit worthiness through a personal credit history report. Lenders will also require a business plan which includes your credentials as the business owner, your company financial statements, business assets and an analysis of your market. All of these should be packaged in a professional loan proposal which presents how the loaned amount will be used to strengthen the business and how you intend to repay the loan. Most of all, you need to present your loan collateral – the assets you will put up to secure the loan.  

Quick and Easy Small Business Loans with No Collateral

For smaller acquisitions or day to day business needs, there is a way for entrepreneurs to get small business loans easily and quickly with no collateral. This is through merchant services.

Merchant services provide credit card services to businesses. This enables them to accept and process payments through credit cards or debit cards either through face to face purchases, online transactions, or even by phone or fax. Merchant service providers supply terminal equipment for card swiping, as well as the necessary software and high speed IP solutions.

Most businesses need credit card services since consumers routinely pay for goods and services through credit cards and debit cards these days. If your business has not taken this step yet, you may have been missing out on more than half of your income potential.

These same merchant services also provide the solution for your small business loans. Collateral-free loans can be availed of through their cash advances, with the loan amount computation based on the monthly credit card revenue your business generates. Credit card sales requirements may be as low as $3,000.00 a month. You will not be asked for collateral since your future revenue is your collateral.  

The best types of merchant cash advances do not require fixed monthly payments nor do they impose deadlines on loan payment. A certain percentage is instead deducted automatically from your credit card revenue each month to go towards loan payment. This way, you never have to worry about loan amortization.

Once your cash advance has been fully paid, you may apply for another one. It is like having a revolving credit line. Make sure that you compare the terms of several merchant service providers, though, and read the fine print on contracts. There are so many merchant service providers competing for your business that you’ll surely find one that fits your needs.

Advanced Merchant Services
Contact Name: Roger Inman
P.O. Box 1475 Safety Harbor, FL 34691
Bus: 727-642-3606
Bus Fax: 877-413-6067
E-mail: rinman3@tampabay.rr.com
Website: www.bankcardprocess.com


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March 21, 2010 | Filed Under Small Business Loan | Leave a Comment 

Getting the Small Business Start Up Help That You Need

When you first decide to start your own small business, you realize you can use all the start up help you can get. The federal government can be a great source for assistance, and shouldn’t be overlooked. They can provide small business start up help in many different ways. This article will discuss three areas that your government offers help in getting your small business off the ground.

1.      Every small business needs money, and the government can help you get the cash you need in two different ways. The first option available is a loan. Believe it or not, the government provides hundreds of millions of dollars in funding specifically for small business and entrepreneurs. There are a ton of different loans created specifically for special circumstances. For example, low-income businesses, handicapped individuals, military veterans, women owned small businesses, and many more.

The second option for getting the small business start up funding that you need would be applying for one of the fifteen hundred grants that are available through the fifty-two government agencies. These grants are separated and grouped by state and business category. Some categories include but are not limited to general business, agriculture and real estate. There is also grant money available for research and development of your business. Many of these types of grants start at five thousand dollars and can end in the six figures. The best thing about receiving government grants is that the money never has to be paid back. This kind of small business start up help is like receiving free money.

2.      So now you’re getting the small business start up help you need in terms of money, but what about other assistance? The government can also help you in this area as well. They offer assistance for small business development, renovation and expansion. There are fifteen hundred different government sources that can provide the needed assistance for your small business.

The best place to start looking for this kind of information is the Small Business Administration (SBA). You can find out more information by looking in your phone book, online or the help desk at your local library. The government can provide counseling and training to improve skills to help manage and operate your small business. There are some forms and guidelines that are to be completed. Government and private foundations are a good source if you want to find some examples of these forms and more detailed information. These types of books can be found at your local library as well.

3.  Small business start up help in terms of money and assistance is no longer a concern. You may, however, require advisory services, and the government can help with that also. Advisory services will assist you in improving your management skills and labor management relations. This is very important knowledge that you should know when beginning your business.

There is so much small business start up help that the federal government can do to get your business up and running. You just need to take the time to find your local sources and get the whole process started. Make sure to take advantage of these offers, since they’re available to you. It’s not everyday someone will hand you free money that will go to making yourself more money. So don’t wait any longer, get the small business start help that you need to make your business successful.

Alan Mater provides small online business ideas and opportunities to help you work from home. Alan also offers free online training to help you get the support and guidance you need to start and run a successful small work from home business.

March 18, 2010 | Filed Under Small Business Start Up | 4 Comments