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Check Out the Best Discover Business Credit Card and More

Are you looking for a Discover business credit card?

The Very Best Discover Business Credit Card

We looked into lots of corporate credit cards for you, to find the best Discover business credit card. So, here are our choices.

Per the SBA, company credit card limits are a whopping 10 – 100 times that of personal credit cards!

This reveals you can get a great deal more money with company credit cards. And it likewise reveals you can have personal credit cards at stores. So, you would now have an additional card at the same stores for your small business.

And you will not need collateral, cash flow, or financials to get business credit.

Discover Business Credit Card Benefits

Benefits can vary. So, make certain to pick the benefit you would prefer from this choice of alternatives.

A Discover Business Credit Card and More Cards for Cash Back

Here is a great Discover business credit card and some similar cards from other providers, so you can make a reasonable comparison.

Flat-Rate Rewards and No Annual Cost

Discover it® Business Card

Check out the Discover it® Business Card. It has no annual fee. There is an introductory APR of 0% on purchases for twelve months. After that the regular APR is a variable 14.49 – 22.49%. 

Get unlimited 1.5% cash back on all purchases, with no category restrictions or bonuses. They double the 1.5% Cashback Match™ at the end of the first year. There is no minimum spend requirement.

You can download transactions| quickly to Quicken, QuickBooks, and Excel. Note: you will need good to outstanding credit scores to get this Discover business credit card.

https://www.discover.com/credit-cards/business/

Flat-Rate Rewards

Capital One ® Spark® Cash for Business 

Have a look at the Capital One® Spark® Cash for Business. It has an introductory $0 annual fee for the first year. Afterwards, this card costs $95 annually. There is no introductory APR offer. The regular APR is a variable 18.49%.

You can get a $500 one-time cash bonus after spending $4,000 in the initial three months from account opening. Get unlimited 2% cash back. Redeem at any time with no minimums.

You will need good to superb credit to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-cash/ 

Discover Business Credit Card Credit Suite

Establish business credit fast with our research-backed guide to 12 business credit cards and lines.

Bonus Categories

Ink Business Cash℠ Credit Card

Check out the Ink Business Cash℠ Credit Card. It has no yearly fee. There is a 0% introductory APR for the first 12 months. Afterwards, the APR is a variable 14.74 – 20.74%. You can get a $500 one-time cash bonus after spending $3,000 in the first three months from account opening.

You can get 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on web, cable, and phone services each account anniversary year. 

Get 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other purchases. There is no limit to the amount you can earn.

You will need exceptional credit scores to get approval for this card.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/cash?iCELL=61GF 

Boosted Cash Back Categories

Bank of America® Business Advantage Cash Rewards MasterCard® credit card

Have a look at the Bank of America® Business Advantage Cash Rewards MasterCard® credit card. Get an 0% introductory APR for the initial 9 billing cycles of the account. After that, the APR is 13.74% – 23.74% variable. There is no yearly fee. You can get a $300 statement credit offer.

Get 3% cash back in the category of your choice. So these are filling stations (default), office supply stores, travel, TV/telecom & wireless, computer services or business consulting services. Earn 2% cash back on dining. So this is for the first $50,000 in combined choice category/dining purchases each calendar year. Then earn 1% after, with no limits.

You will need superb credit to qualify.

Find it here: https://promo.bankofamerica.com/smallbusinesscards2/ 

An Alternative to a Discover Business Credit Card: Company Credit Cards with a 0% Introductory APR – Pay Zero!

These cards have another feature similar to the Discover business credit card rated above.

Blue Business® Plus Credit Card from American Express

Have a look at the Blue Business® Plus Credit Card from American Express. It has no annual fee. There is a 0% introductory APR for the initial one year. After that, the APR is a variable 14.74 – 20.74%.

Get double Membership Rewards® points on day to day business purchases like office supplies or client dinners for the first $50,000 spent each year. Get 1 point per dollar afterwards.

You will need good to outstanding credit to qualify.

Find it here: https://creditcard.americanexpress.com/d/bluebusinessplus-credit-card/

American Express® Blue Business Cash Card

Also take a look at the American Express® Blue Business Cash Card. Note: the American Express® Blue Business Cash Card is identical to the Blue Business® Plus Credit Card from American Express. Yet its rewards are in cash rather than points.

Get 2% cash back on all qualified purchases on up to $50,000 per calendar year. Then get 1%.

It has no yearly fee. There is a 0% introductory APR for the first year. Afterwards, the APR is a variable 14.74 – 20.74%. So, the APR is comparable to that of the Discover business credit card.

You will need great to superb credit scores to qualify.

Find it here: https://creditcard.americanexpress.com/d/business-bluecash-credit-card/

Here are a few more great business credit cards with different features which may also be of interest.

Secure Business Credit Cards for Fair Credit Scores

Capital One® Spark® Classic for Business

Have a look at the Capital One® Spark® Classic for Business. It has no annual fee. There is no introductory APR offer. The regular APR is a variable 24.49%. You can earn unlimited 1% cash back on every purchase for your business, without any minimum to redeem.

While this card is within reach if you have average credit, beware of the APR. However if you can pay in a timely manner, and in full, then it’s a bargain.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-classic/

Discover Business Credit Card Credit Suite

Establish business credit fast with our research-backed guide to 12 business credit cards and lines.

Outstanding Business Credit Cards with No Annual Fee

No Yearly Fee/Flat Rate Cash Back

Ink Business Unlimited℠ Credit Card

Take a look at the Ink Business Unlimited℠ Credit Card. Past no annual fee, get an introductory 0% APR for the first 12 months. Afterwards, the APR is a variable 14.74 – 20.74%.

You can get unlimited 1.5% Cash Back rewards on every purchase made for your business. And get $500 bonus cash back after spending $3,000 in the first three months from account opening. You can redeem your rewards for cash back, gift cards, travel and more via Chase Ultimate Rewards®. You will need excellent credit to get approval for this card.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/unlimited

Unbeatable Cards for Jackpot Rewards That Never Expire

Capital One® Spark® Cash Select for Business

Take a look at the Capital One® Spark® Cash Select for Business. It has no annual fee. You can get 1.5% cash back on every purchase. There is no limit on the cash back you can get. And get a one-time $200 cash bonus as soon as you spend $3,000 on purchases in the initial three months. Rewards never expire.

Pay a 0% introductory APR for 9 months. Then pay 14.49% – 22.49% variable APR after that.

You will need great to superb credit scores to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-cash-select/

Small Business Credit Cards for Luxurious Travel Points: Alternatives to the Best Discover Business Credit Card

Flat-rate Travel Rewards

Capital One® Spark® Miles for Business

Take a look at the Capital One® Spark® Miles for Business. It has an introductory yearly fee of $0 for the first year, which after that rises to $95. The regular APR is 18.49%, variable due to the prime rate. There is no introductory annual percentage rate. Pay no transfer fees. Late fees go up to $39.

This card is wonderful for travel if your expenditures don’t fall into standard bonus categories. You can get unlimited double miles on all purchases, without limits. Earn 5x miles on rental cars and hotels if you book via Capital One Travel.

Get an introductory bonus of 50,000 miles. That’s the same as $500 in travel. But you just get it if you spend $4,500 in the first 3 months from account opening. There is no foreign transaction fee. You will need a good to outstanding FICO rating to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-miles/

Discover Business Credit Card Credit Suite

Establish business credit fast with our research-backed guide to 12 business credit cards and lines.

Bonus Travel Categories with a Sign-Up Offer

Ink Business Preferred℠ Credit Card

For a terrific sign-up offer and bonus categories, take a look at the Ink Business Preferred℠ Credit Card.

Pay a yearly fee of $95. Regular APR is 17.49 – 22.49%, variable. There is no introductory APR offer.

Get 100,000 bonus points after spending $15,000 in the first 3 months after account opening. This works out to $1,250 towards travel rewards if you redeem with Chase Ultimate Rewards.

Get three points per dollar of the initial $150,000 you spend with this card. So this is for purchases on travel, shipping, internet, cable, and phone services. Plus it includes advertising purchases made with social media sites and search engines each account anniversary year.

You can get 25% more in travel redemption when you redeem for travel using Chase Ultimate Rewards. You will need a great to excellent FICO score to qualify.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/business-preferred

No Annual Fee

Bank of America® Business Advantage Travel Rewards World MasterCard® credit card

For no yearly fee while still getting travel rewards, check out this card from Bank of America. It has no annual fee and a 0% introductory APR for purchases during the initial 9 billing cycles. Afterwards, its regular APR is 13.74 – 23.74% variable.

You can earn 30,000 bonus points when you make a minimum of $3,000 in net purchases. So this is within 90 days of your account opening. You can redeem these points for a $300 statement credit towards travel purchases.

Get unlimited 1.5 points for each $1 you spend on all purchases, everywhere, every time. And this is no matter how much you spend.

Likewise get 3 points per every dollar spent when you reserve your travel (car, hotel, airline) with the Bank of America® Travel Center. There is no limit to the number of points you can earn and points don’t expire.

You will need outstanding credit scores to get this one (as in, 700s or better).

Find it here: https://www.bankofamerica.com/smallbusiness/credit-cards/products/travel-rewards-business-credit-card/

Hotel Credit Card

Marriott Bonvoy Business™ American Express® Card

Take a look at the Marriott Bonvoy Business™ Card from American Express. It has an annual fee of $125. There is no introductory APR offer. The regular APR is a variable 17.24 – 26.24%. You will need good to outstanding credit scores to get this card.

Points

You can get 75,000 Marriott Bonvoy points after using your card to make purchases of $3,000 in the first 3 months. Get 6x the points for qualified purchases at participating Marriott Bonvoy hotels. You can get 4x the points at United States restaurants and filling stations. And you can get 4x the points on wireless telephone services bought straight from American providers and on American purchases for shipping.

Get double points on all other eligible purchases.

Rewards

Plus, you get a free night every year after your card anniversary. And you can get one more free night after you spend $60,000 on your card in a calendar year.

You get Marriott Bonvoy Silver Elite status with your Card. Plus, spend $35,000 on qualified purchases in a calendar year and earn an upgrade to Marriott Bonvoy Gold Elite status through the end of the following calendar year.

Also, each calendar year you can get credit for 15 nights towards the next level of Marriott Bonvoy Elite status.

Find it here: https://creditcard.americanexpress.com/d/bonvoy-business/

The Best Discover Business Credit Card for You

Your straight-out best Discover business credit card will depend upon your credit report and ratings.

Only you can select which features you want and need. So, ensure to do your research. What is exceptional for you could be devastating for another person.

And, as always, make sure to establish credit in the advised order for the best, fastest benefits.

The post Check Out the Best Discover Business Credit Card and More appeared first on Credit Suite.

Get Better Financing with Funding Circle Reviews

Looking for Funding Circle reviews? We took a look at this alternative lender to see if the information we had on them is still true. Welcome to Funding Circle reviews.

Funding Circle is one of several lending companies in the online space. They have loaned over $11.7 billion, with over 4.9 million loans under management. They work as a peer to peer lender.

In the US, Funding Circle leads the Marketplace Lending Association, along with LendingClub, Prosper, and Sofi.

Funding Circle Reviews: Background

Funding Circle is online here: www.fundingcircle.com/us/. Their physical addresses are in San Francisco, Denver, London, and Berlin. You can call them here: (855) 385-5356. Their contact page is here: www.fundingcircle.com/us/about/contact/. They have been in business since 2010.

Funding Circle Reviews: Their Borrower’s Bill of Rights

Funding Circle has a business borrowers’ Bill of Rights, here: www.fundingcircle.com/us/business-borrower-bill-of-rights/

It says:

  1. The Right to Transparent Pricing and Terms 

You have a right to see the cost and terms of any financing you are offered in writing and in a form that is clearcomplete, and easy to compare with other options, so that you can make the best decision for your business.

  1. The Right to Non-Abusive Products 

You have a right to loan products that will not trap you in expensive cycles of re-borrowing. Lenders’ profitability should come from your success, not from your failure to repay the loan according to its original terms.

Borrower’s Bill of Rights Continued

  1. The Right to Responsible Underwriting 

You have a right to work with lenders who will set you up for success, not failure. High loss rates should not be accepted by lenders simply as a cost of business to be passed on to you in the form of high rates or fees.

  1. The Right to Inclusive Credit Access 

You have a right to fair and equal treatment when seeking a loan.

  1. The Right to Fair Collection Practices 

If you are unable to repay a loan, you have a right to be treated fairly and respectfully throughout the collections process. Collections on defaulted loans should not be used by lenders as a primary source of repayment.

Funding Circle Reviews: SBA 7(a) Loans

At Funding Circle, you can borrow anywhere from $20,000 to $5 million from the SBA. Loan terms run for up to 10 years. Pay an interest rate of prime +2.75%. as of the writing of this blog post, that is 6%.

There are no prepayment penalties. 

Fees

Funding Circle will charge a one-time origination fee on each loan they fund. This amount ranges from 3.49% to 6.99% of the approved loan amount.

Funding Circle Reviews: Qualifying for an SBA 7(a) Loan with Funding Circle

Small businesses which meet the below criteria are eligible to apply for an SBA 7(a) loan:

  • In business for more than 3 years
  • At least $500,000 in annual revenue
  • No federal tax liens
  • 680 FICO for personal Guarantor
  • Positive book value (assets > liabilities)

Qualified Industries

Because these are SBA loans, Funding Circle must conform to the SBA’s requirements when it comes to industries. Therefore, they cannot lend to these industries:

  • Speculative real estate
  • Nonprofit organizations
  • Weapons manufacturers
  • Gambling businesses
  • Marijuana dispensaries
  • Pornography

Funding Circle Reviews: COVID-19 Relief

As a part of working with the Small Business Administration, Funding Circle offers their COVID-19 relief, in the form of the Paycheck Protection Program.

Funding Circle Reviews Credit Suite

What frustrates you the most about funding your business during a recession? Check out how our guide can help.

Funding Circle Reviews: More Information

Apply online, and a personal account manager will reach out to you within one hour. They will ask about your business and request and collect documentation. They will decide on your loan in as little as 24 hours. 

If you accept a loan offer, you can get funding in as little as one business day. You can return for more funding in as little as six months.

If your monthly payment is more than 10 days late, they may charge a late fee of up to 5% of each missed payment amount. The late fee will be payable immediately and is in addition to the missed payment.

They will place your loan into default if you miss three or more consecutive payments, four out of six monthly payments or do not comply with your loan agreement.

Funding Circle Reviews: Advantages

So the advantages include no prepayment penalty. There are also relatively fast decisions and funding. In addition, the Borrowers’ Bill of Rights is encouraging. The maximum rates you could pay are within reason.

Funding Circle Reviews: Disadvantages

So what are Funding Circle’s disadvantages? It should be obvious: fees, fees, and more fees. They are for origination, missing payments, and also for insufficient funds. 

An Alternative to Funding Circle

Of course one great alternative to Funding Circle is to build business credit. But how do you do that? Fortunately, we have the method right here. And we’re more than happy to let you in on the secret.

Corporate credit is credit in a small business’s name. It doesn’t connect to a business owner’s personal credit, not even if the owner is a sole proprietor and the only employee of the business. Accordingly, an entrepreneur’s business and personal credit scores can be quite different.

The Advantages

Because small business credit is separate from individual, it helps to protect a small business owner’s personal assets, in the event of legal action or business insolvency. Also, with two separate credit scores, an entrepreneur can get two different cards from the same vendor. This effectively doubles buying power.

Another benefit is that even startups can do this. Visiting a bank for a business loan can be a formula for disappointment. But building business credit, when done the right way, is a plan for success.

Individual credit scores rely on payments but also other components like credit usage percentages. But for company credit, the scores actually only hinge on whether a company pays its bills in a timely manner.

The Process

Growing small business credit is a process, and it does not happen automatically. A corporation must proactively work to establish corporate credit. Having said that, it can be accomplished readily and quickly, and it is much more efficient than establishing individual credit scores. Merchants are a big part of this process.

Performing the steps out of order will cause repetitive denials. No one can start at the top with company credit. For instance, you can’t start with store or cash credit from your bank. If you do, you’ll get a denial 100% of the time.

Company Fundability

A business needs to be fundable to loan providers and vendors. For this reason, a business will need a professional-looking website and e-mail address, with website hosting bought from a supplier like GoDaddy. And company phone and fax numbers need to have a listing on ListYourself.net.

In addition the business telephone number should be toll-free (800 exchange or the like).

A corporation will also need a bank account devoted strictly to it, and it must have all of the licenses necessary for running. These licenses all must be in the specific, correct name of the company, with the same company address and telephone numbers. Bear in mind that this means not just state licenses, but possibly also city licenses.

Funding Circle Reviews Credit Suite

What frustrates you the most about funding your business during a recession? Check out how our guide can help.

Working with the Internal Revenue Service

Visit the IRS website and acquire an EIN for the small business. They’re totally free. Choose a business entity such as corporation, LLC, etc. A business can start off as a sole proprietor but will probably want to change to a kind of corporation or partnership to decrease risk and maximize tax benefits.

A business entity will matter when it concerns tax obligations and liability in the event of litigation. A sole proprietorship means the entrepreneur is it when it comes to liability and tax obligations. Nobody else is responsible.

If you operate a business as a sole proprietor at least file for a DBA (‘doing business as’) status. If you do not, then your personal name is the same as the corporate name. Hence, you can find yourself being personally responsible for all small business debts.

In addition, per the Internal Revenue Service, with this structure there is a 1 in 7 possibility of an IRS audit. There is a 1 in 50 possibility for corporations! Avoid confusion and significantly decrease the odds of an IRS audit at the same time.

Note: any DBA filing should be a steppingstone to incorporating, which is best for building business credit.

Starting Off the Business Credit Reporting Process

Begin at the D&B web site and obtain a free D-U-N-S number. A D-U-N-S number is how D&B gets a business in their system, to generate a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.

Once in D&B’s system, search Equifax and Experian’s websites for the corporation. You can do this at https://www.creditsuite.com/reports/. If there is a record with them, check it for accuracy and completeness. If there are no records with them, go to the next step in the process. By doing this, Experian and Equifax will have activity to report on.

Trade Lines

First you must establish trade lines that report. This is also called vendor accounts. Then you’ll have an established credit profile, and you’ll get a business credit score.

And with an established business credit profile and score you can begin getting revolving store and cash credit.

These varieties of accounts have the tendency to be for the things bought all the time, like shipping boxes, outdoor work wear, ink and toner, and office furniture.

But first of all, what is trade credit? These trade lines are creditors who will give you initial credit when you have none now. Terms are often Net 30, versus revolving.

Hence if you get approval for $1,000 in vendor credit and use all of it, you will need to pay that money back in a set term, such as within 30 days on a Net 30 account.

Details

Net 30 accounts must be paid in full within 30 days. 60 accounts must be paid in full within 60 days. Compared to with revolving accounts, you have a set time when you have to pay back what you borrowed or the credit you made use of.

To launch your business credit profile properly, you need to get approval for vendor accounts that report to the business credit reporting agencies. Once that’s done, you can then make use of the credit.

Then pay back what you used, and the account is on report to Dun & Bradstreet, Experian, or Equifax.

Not every vendor can help like true starter credit can. These are vendors that will grant an approval with minimal effort. You also need them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.

You want 3 of these to move onto the next step, which is revolving store credit. 

Accounts That Don’t Report

Non-Reporting trade accounts can also be helpful. While you do want trade accounts to report to at least one of the CRAs, a trade account which does not report can yet be of some worth. You can always ask non-reporting accounts for trade references. And credit accounts of any sort ought to help you to better even out business expenses, thus making financial planning simpler. These are providers like PayPal Credit, T-Mobile, and Best Buy.

Revolving Store Credit

Once there are 3 more vendor trade accounts reporting to at least one of the CRAs, move onto revolving store credit. These are businesses which include Office Depot and Staples.

Use the business’s EIN on these credit applications.

Fleet Credit

Are there more accounts reporting? Then move to fleet credit. These are companies such as BP and Conoco. Use this credit to buy fuel, and to repair and maintain vehicles. Make certain to apply using the small business’s EIN.

Cash Credit

Have you been sensibly managing the credit you’ve up to this point? Then move onto more universal cash credit. These tend to be MasterCard credit cards. Keep your SSN off these applications; use your EIN instead.

If you have more trade accounts reporting, then these are in reach.

Funding Circle Reviews Credit Suite

What frustrates you the most about funding your business during a recession? Check out how our guide can help.

Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and deal with any mistakes ASAP. Get in the habit of checking credit reports and digging into the specifics, and not just the scores.

We can help you monitor business credit at Experian and D&B for 90% less. Update the relevant information if there are errors or the data is incomplete.

Disputing Errors

So, what’s all this monitoring for? It’s to challenge any mistakes in your records. Mistakes in your credit report(s) can be corrected. But the CRAs usually want you to dispute in a particular way.

Disputing credit report errors typically means you send a paper letter with copies of any evidence of payment with it. These are documents like receipts and cancelled checks. Never mail the original copies. Always send copies and retain the original copies.

Disputing credit report errors also means you precisely spell out any charges you contest. Make your dispute letter as clear as possible. Be specific about the issues with your report. Use certified mail so that you will have proof that you sent in your dispute.

A Word about Building Business Credit

Always use credit smartly! Never borrow beyond what you can pay off. Track balances and deadlines for repayments. Paying off punctually and in full will do more to elevate business credit scores than almost anything else.

Growing business credit pays off. Excellent business credit scores help a business get loans. Your creditor knows the business can pay its financial obligations. They recognize the small business is for real. The small business’s EIN attaches to high scores, and creditors won’t feel the need to require a personal guarantee.

Business credit is an asset which can help your small business for years to come.

Funding Circle Reviews: Takeaways

Fees are high at Funding Circle, but at least they’re being transparent about them. Plus, there is no prepayment penalty – but there are late fees. Hence Funding Circle is best for companies which do not need to borrow much and can pay it all back not only on time, but early. Borrowers which need more time to pay a loan back would probably do better elsewhere.

Finally, read the fine print and do the math. Therefore, go over details carefully. And decide if this option will be good for you and your company. In addition, consider alternative financing options beyond lending. This includes building business credit, to best get the money you need. Funding Circle reviews should be just the beginning.

The post Get Better Financing with Funding Circle Reviews appeared first on Credit Suite.

5 Small Business Loan Options (Some of Which You’ve Probably Never Heard of) 

What Small Business Loan Options are Out There and Which Ones Are Best for You

Funding a small business is no easy task.  There are an overwhelming number of funding options.  From small business loans to crowdfunding, and a seemingly infinite number of possibilities in between, it can be hard to choose.  For most, it will take some combination of these to get the job done.  It can help to know your small business loan options.  There may be more than you think.

Small Business Loan Options: Lenders

The first decision to make is what type of lender to use. A lot of business owners think that it’s a bank or bust.  There are a few different types of lenders to consider when looking at your small business loan options however.

Learn business loan secrets with our free, sure-fire guide.

Big Banks

These are those nation-wide institutions like J.P. Morgan Chase and Wells Fargo.  As a general rule, they are not a friend to small business.  There is nothing specific that they hold against smaller businesses.  It is simply that these businesses do not generally meet their lending requirements.  It’s all numbers.  If you don’t have the numbers, you don’t get the funding.

small business loan options Credit Suite2

Community Banks

Community banks are the smaller, local financial institutions.  They are the “hometown” banks, if you will.  These guys are friendlier toward small businesses.  They are able to look a little deeper and see a tad bit more than the numbers. Their small business loan options may have slightly less strict eligibility requirements.  However, it is still a numbers game.  Whatever those numbers are, whether credit score, annual income, years in business, or some combination, you will have to have them to be eligible.

Credit Union

Credit unions come in large and small sizes as well.  The main thing to remember is that you must be a member to get a loan from a credit union.  They do usually offer more favorable interest rates however. If you are a member of one, be sure not to count them out when shopping around for loans.

Alternative Lenders

Alternative lenders generally function online, though some do have brick and mortar locations.  Their main draw is that they offer small business loan options to those that may not qualify with traditional lenders.  Their credit score requirements are lower.  They may or may not require a certain amount of time in business or minimum revenue amounts.  The main drawback is that their small business loan options typically have higher interest rates.

Small Business Loan Options: Types of Loans

In addition to the types of lenders, there are various types of loans including:

●        Traditional

These are the standard loans that disperse a set amount of funds, with the borrower repaying over a certain period of time.  The payment is the same each month, and they can be either secured or unsecured.  Unsecured small business loan options usually have higher interest rates.

●        Line of Credit

This is revolving debt similar to credit cards.  Borrowers are given a maximum limit of the amount of funds they can use, but only pay back the amount that they actually use.  For example, a borrower may have a $5,000 line of credit and use $2,000 to buy a new printer.  They will only pay back $2,000, until the time comes that they choose to use more. Lines of credit can also be secured or unsecured.

●        Invoice Factoring

Factoring invoices is an option if you have receivables.   The lender basically buys unpaid invoices from you at a premium, meaning you do not get full value.  You then have immediate cash however, for those open invoices.  The lender collects from the consumer directly at full value.  The older the invoice, the higher the premium. This is due to the fact that the likelihood of collecting on the invoice goes down the older the invoice gets.

Learn business loan secrets with our free, sure-fire guide.

●        Merchant Cash Advance

If you accept credit card payments, a merchant cash advance can help you out in a cash pinch.  It is basically just what is says.  It’s a cash advance on predicted credit card sales.  They base the amount of the loan off of average daily credit card sales, and then take payment from future credit card sales. This usually happens electronically. Most often, the process is automatic.  The draw is that you get the funds fast, and there are usually more flexible options for repayment terms depending on your eligibility.

Small Business Loan Options: The Small Business Administration

No discussion of small business loan options would be complete without mentioning the SBA.  While they do not lend funds themselves, they do administer a number of loan programs that help small businesses get the funds they need through partner lenders.

7(a) Loans

This is the Small Business Administration’s most known program.  It provides federally funded term loans up to $5 million. The funds can be used for a number of purposes.  These include expansion, purchasing equipment, working capital and more. Banks, credit unions, and other specialized institutions, in partnership with the SBA, process these loans and disburse the funds.

504 Loans

504 loans are also available up to $5 million and can buy machinery, facilities, or land. Typically, they are used for expansion.  They work especially well for commercial real estate purchases.

Microloans

These are $50,000 or less. They are good for starting a business, purchasing equipment, buying inventory, or general working capital.

SBA disaster loans

This is a program available to businesses that have fallen victim to natural disasters.  These loans are different because, unlike the others, the SBA actually processes them directly rather than using partner lenders.

SBA Express Loans

The turnaround for express loans is much faster, with the SBA taking up to 36 hours to give a decision. There is less paper work as well, making express loans a great option if you qualify.

SBA CAPLines

There are 4 different CAPLine programs.  They differ mostly in how the funds can be used. The maximum on each is $5 million.  It can take 45 to 90 days for the funding on CAPLines to come through.

Learn business loan secrets with our free, sure-fire guide.

SBA Community Advantage Loans

This is a pilot program.  It will either expire, or the SBA will extend it in 2020. Its purpose is to promote economic growth in underserved areas and markets. Decision makers look past such things as poor credit or low revenue if the business has the potential to create jobs or promote economic growth in underserved areas.

These are some of their most popular programs. The Small Business Administration does so much more for small businesses in addition to these.  Get more details on the SBA, these loan programs, and additional resources offered by the Small Business Administration here.

5 Specific Small Business Loan Options

Now, you are probably here because you need to know specifically where to go to get a small business loan.  As you have seen, the possibilities are endless.  However, here are some of our favorite online lenders for those that may be having trouble qualifying for loans.

Upstart

Upstart is a fairly new online lender that is using cutting edge technology.  They question whether financial information and FICO alone can really determine the risk associated with a specific borrower.  Instead, they are using a combination of artificial intelligence and machine learning to gather alternative data.  They then use this data in the credit decision making process.

Alternative data includes such things as mobile phone bills, rent, deposits, withdrawals, and even other information less directly tied to finances.  Software from the company uses this data, then learns and improves on its own.

They offer various types of financing products to fit a broad range of needs. From credit card refinancing to student loans, and pretty much anything in-between, there is something for everyone.  Debt consolidation and personal loans are included, in addition to business loans.

You can get a quote on a loan to start or expand a business.  Quotes are available online in a matter of minutes.  Learn more in this comprehensive review.

StreetShares

StreetShares started as a service to veterans.  Now, they offer term loans, lines of credit, and contract financing. They also offer small business loan investment options. The maximum loan amount is $250,000.  Pre-Approval only takes a few minutes. They use a soft pull on your credit so it doesn’t affect your score.

To be eligible, you must be in business for at least 12 months with annual revenue of $25,000. Exceptions are possible, with loans to companies in business for at least 6 months with higher earnings happening on a case by case basis. The borrower’s credit score must be at least 620. For more on StreetShares, see our in-depth review.

Kabbage

Kabbage is a well know online lender. They offer a small business line of credit that can help businesses accomplish business goals quickly. The minimum loan amount is $500 and the maximum is $250,000. They require you to be in business for at least one year and have $50,000 or more in annual revenue, or $4,200 or more per month in the previous 3 month period.

They are great if you need cash quickly. Also, their non-traditional approach puts less weight on your credit score, so they may work better for some borrowers than other lenders.

Fundation

Fundation provides both term business loans online and lines of credit. It is most known for its working capital funding options. These are funds meant to help cover the day-to-day costs of running a business rather than larger projects. Typically, these funds come in the form of a line-of-credit.

Their minimum loan amount is $20,000 while the maximum loan amount they offer is $500,000. They require you to be in business for at least 12 months and have annual revenue of at least $100,000. To be eligible, your personal credit score must be no less than 600. Additionally, you must have at least 3 full time employees.  That number can include yourself.  Business owners cannot live or operate their business in North Dakota, South Dakota, or Nevada.

SmartBiz

If you want the convenience of online lending but need to look toward products offered by the SBA, then SmartBiz is for you.

With the help of the Small Business Administration, SmartBiz offers loans that are government backed. While SBA loans typically take a lot of time and paperwork, SmartBiz found a way to speed things up.  This makes getting loans through the Small Business Administration easier than ever. The minimum loan amount is $30,000 and the maximum is $5,000,000.

As stated, SBA loans are government-backed business term loans for business owners who’ve had difficulty qualifying for other types of financing.  As such, the requirements are a little stricter. Your credit score has to be 650, and you have to be in business for 2 years or more. In addition, annual revenue has to be $50,000 at least, and there can be no outstanding liens, bankruptcies, or foreclosures in the past 3 years.

Knowing Your Small Business Loan Options Can Help You Make the Best Decisions

Of course, a lot of the choosing will be done for you based on your qualifications.  Your credit score, length of time in business, and annual revenue will make a difference.  Still, knowing where to start based on what you have to work with is a huge first step.

If you are eligible for a loan with a traditional lender, you may find the lowest interest rates there.  They tend to have the most favorable terms and rates.  Their online counterparts typically have higher interest rates, but the loans are easier to qualify for.

However, if you are struggling with credit or just starting out, one of these 5 options for alternative lenders could be great.  In addition, there is the option of traditional loans with the SBA programs, if you fall somewhere in between.  Whatever you do, don’t jump in without doing your research.

Shop around with a variety of lenders to compare what they offer, what their requirements are, and figure out which lenders and loans will work best for your specific business. A little time spent on the front end doing this can save you a lot of time and money after the fact.

 

 

 

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