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According to a report in The Boston Globe the recent winter weather has given Small Business Owners the cold shoulder. Small Business Loans from the Federal Government may be a financing option. Restaurants, retailers, beauty salons and spas have been frustrated as snow piled up and business ground to a halt. Small Business Administration (SBA) loans can provide small businesses with the working capital they need to recover from physical damages like failing roofs and frozen pipes. They can also help with losses triggered when employees could not get to work.

 

According to The Boston Globe:

 

A wide array of Boston-area businesses — restaurants, retailers, print shops, law firms — have been frustrated in recent weeks as snow piled up and business ground nearly to a halt. The snow derailed MBTA service, snarled vehicle traffic, and turned commutes into hourslong treks.

Even Valentine’s Day dinner reservations ended up being canceled. As a result, some companies might be struggling to make payroll.

For most companies, the loss of normal business can be among the most difficult costs to recover and usually isn’t reimbursed by insurance. Most insurance policies will cover lost business during a storm only if there is direct damage, such a roof collapse.

Add to that a variety of other exclusions in the fine print of insurance policies and some businesses can find it tricky to claim financial losses from their insurance companies.

 

If you are a Small Business owner and you are in immediate need of working capital we can help. Premier Business Capital has helped thousands of customers like yourself build their businesses by solving their issues with liquidity and stifled growth. Our client list is full of success stories. If you need a solution to provide working capital to your business, please contact us!

Published inPBC Blog
Wednesday, 04 February 2015 00:00

How Big Is The Typical Small Business Loan?

How Big Is The Typical Small Business Loan?

Loans can range vastly in size, and what would be a massive windfall for one company could be a drop in the bucket for another. Traditional small business loans usually max out at $750,000. Some of the small funding solutions, however, are more typically lent at around $10,000. In general, many loans amount to about $150,000. Borrowers can basically fall anywhere among those numbers, but the bigger the amount, the harder they are for borrowers to secure.

How Can I Get Financing To Start A Business Since It Seems That Organizations Only Want To Find Growth?

Securing funds when you’re just starting out can be difficult because you have no documented history of success. Banks usually want to put their money into growing a business rather than risking it all on start up. There are a few solutions for those who are just getting started that will still get them the capital that they need.

Investors- Some businesses forgo banks all together and work with individuals or companies who want to use their money to float the operation while it’s growing. These could be venture capitalists, angel investors or people who the business owners know personally. Do your research about the person or entity who wants to invest because they’ll likely take an equity stake in the operation once you start making money. That means that a percentage of everything that the business makes will go to them over the lifetime of the agreement, and sometimes over the lifetime of the operation.

Cash Advances and ACH Loans- Another option that can get businesses up and running are merchant cash advances and ACH loans like the solutions offered by Premier Business Capital. These are similar to small business loans, but they have a faster application process, require less of a documented history, and can be attained within a few business days. They’re usually paid back through a percentage of the operation’s daily credit card sales or through a fixed daily debit. The lenders work through a different kind of bank, so it enables them to skip the arduous terms and just get business owners the funding that they need.

What Associations Can Help Me Figure Out What To Do Next?

For additional guidance on the different types of funding and on how to secure a small business loan, the Small Business Association, run by the federal government, has plenty of information available and people who can answer questions. They were established to assist small businesses in finding success, and they’re behind the rules and regulations that come with traditional small business loans.

What Do You Need For Success

Whether you opt to go for a small business loan or want to get your funding through another channel, getting these documents in order is never a bad idea. You can have them on hand for a rainy day or in the event you decide to sell the operation. They’re valuable for more than just the purposes of getting a loan, and sorting them out when it’s not crunch time makes things that much easier.

Published inPBC Blog
Wednesday, 04 February 2015 00:00

What Information Do I Need To Apply For A Loan?

What Information Do I Need To Apply For A Loan?

A loan application can feel like a scavenger hunt of collecting information. The forms and data necessary to complete your application include corporate and personal data. If you’re getting ready to put together your packet, make sure you have these things:

  • Financial statements from the business and each owner
  • You can get a sample financial statement from the Small Business Association
  • Copies of credit reports for the business as well as each owner
  • Profit and loss statements that have been reviewed by an accountant
  • A strong business plan
  • Proof of collateral
  • Resumes for each owner

What Can I Do In Advance To Make This Easier?

If there’s a chance that you might need a loan, then there are things that you can do from day one that will make it easier to get what you need. They make for more work up front, but they can seriously pay off in the end when all you have to do is hit the “print” button.

Accounting Software- Start your operation using professional accounting software, and make sure that every penny gets accounted for. If a bill payment gets made, an invoice comes in, supplies are purchased or any other major or minor exchange of money happens, it should be recorded and itemized every time.

Inventory- Do regular inventories to make sure that your money isn’t walking away. Supplies and inventory need to be regularly accounted for so that you can prove to the lender that you know what’s going on within your own house.

Expense Reports- If you have employees (or owners) who spend money that is reimbursed as a business expense, make sure everyone is filling out expense reports that get itemized and submitted. Keep those on file to prove that they are actual, deductible expenses.

Record What You Take- It’s easy to fall into the trap in the beginning of just taking money out of the till or living off your business credit card, but it’s not a good idea if someone is going to be scrutinizing your finances and liabilities. Figure out how to pay yourself and employees on the record so that there is no question as to where the money is “walking away” to.

Keep Your Own Finances In Order- Even if it means living lean for a while, keep your own finances in order when you start a business. They’ll be looked at down the road when you decide to go for a loan, and letting them get out of hand could be the reason that you don’t qualify.

Published inPBC Blog
Tuesday, 03 February 2015 00:00

How To Get A Small Business Loan

How To Get A Small Business Loan

It’s easy to get overwhelmed by the sheer number of documents that you need to get ready to apply for a small business loan. Whether you’re an established operation or just trying to get your foot in the door of an industry, the process to securing funds can be long and arduous--depending on who you’re borrowing from. Small business loans can provide the liquidity to grow by leaps and bounds, but you’ll want to make sure that you have everything that you need before spending months in the application process. A denial after that amount of time does more than just sting.

What Criteria Do Banks Look For When Making Small Business Loans?

Banks aren’t likely to just hand out money. The first step in getting a small business loan is qualifying based on set criteria. There are certain things that every borrower has to prove before they’ll be considered.

Location- Loans like this are only for businesses that operate within the United States.

For Profit-Small business loans are reserved for “for-profit” companies, so you must represent one of the eligible business types in order to be considered. This means that they don’t lend to charities or other organizations who fall under the “not-for-profit” umbrella.

Funds Allocation- You’ll have to be able to prove that you plan to use the funds for a purpose that has been approved by the lender. For instance, loans are rarely made if their purpose it to pay off another debt of some kind. In essence, you have to be using the funds for future growth and operational expansion. You can use it to hire staff, buy new equipment, build another location, and other, similar pursuits. A few cases exist that make it possible to borrow money in order to refinance existing debt, but the instances are limited and you must fall into a very slim category.

No Other Options- Most banks won’t lend to a small business if the money could come from somewhere else. If you have major investors who could supply the capital or a large amount of capital somewhere in the operation, then they aren’t likely to dole out funds.

Good Credit- Both the operation and the business owners have to have stellar credit to get a traditional small business loan. That means that everyone who has a controlling interest in the operation is under the microscope. If even one owner has a history of default, you could be stopped in your tracks.

Repayment- Operations have to be able to prove that they can repay the debt. If there is a significant chance of default, the small business won’t qualify. While paying back a loan seems like a no-brainer, it’s not always that simple. Banks have procedures that determine likelihood of ability to pay back the loan, and they can be very complex calculations.

Management Skills- When a small business borrows money, banks are relying on not only the potential profitability of the organization, but also the skills and character of the people in charge. They want to see a long history of management skills as well as a personal history of being responsible with money. If either are missing, the chances of getting a loan from a big bank can be slim.

Trajectory- Business owners have to prove that they know where they’re going. Getting a business loan without a business plan can be nearly impossible when you’re working with a big bank. A business plan illustrates the kind of growth that will require the funding that you’re asking for. Banks want to see that it’s possible to get where you say you’re going based on numbers, marketing plans, potential buyers and more.

Published inPBC Blog

 

We provide two highly accessible financing programs that can get your business the working capital it needs in days instead of months.

For a small business, obtaining a traditional loan today is a complex and difficult process. That’s where Premier Business Capital comes in. 

Merchant Cash AdvanceACH Loans 

 

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