US Business Finance Corp.

Finance Resources

Benefits of Cash Advances

Can your business benefit from a cash advance? US Business Finance can fulfill your business working capital needs with company cash advance.

Financial Glossary

Use our Financial Glossary to get a quick education on financial terms - learn to talk like a banker!

Long Term Cash Flow Help

Contact US Business Finance to help you secure a commercial real estate loan.

Small Business Loans

Securing a Small Business Loan - US Business Finance Corp Can Help

Business loans refer to any money that is borrowed from a private or public (third-party) to cover or pay for any business need. In most cases, these funds are paid back to the lender according to a monthly schedule of principle and interest. Business loans have been used for thousands of years and are a standard business practice with small business everywhere. Capital, such as a loan, can be used for any business need and in some cases a lending institution requires very specific uses of their loan money as well as quarterly financial reports.

Where does a business owner, especially new business owners, go to locate business capital?

  • Friends, family and local investors are usually tapped first
  • Financial institutions, such as banks or credit unions
  • The US Government's Small Business Administration (SBA)
  • Local Government Small Business Loan programs
  • A wide variety of miscellaneous sources, such as local incubator companies

Every new business needs financial help along the way.

It is literally almost impossible for new businesses to get started without some sort of loan put in place to help them with start up expenses. The most common of source of working capital is a small business loan.

While these loans offer great help to young entrepreneurs, they can be somewhat difficult to get. The three main providers of small business loans are large commercial banks, smaller private financial companies, or the Small Business Administration, which is a part of the government that specializes in helping out new and smaller businesses. No matter which of these sources you may go to for a loan, the process is somewhat difficult. Sometimes, business owners walk away from talking to their banker thinking "If I had all the financial resources in place that the bank wants to see in order to secure the loan, I wouldn't need a loan!"

First, you must usually be in business for around two years prior to applying. This precedent has been set because if small business is not going to last or succeed, it usually fails within the first year to eighteen months. Lenders want to be sure that the small business is thriving and already has a decent customer base.

Another factor taken into consideration when funding a small business loan is the amount of revenue the business generates as well as the assets it has accrued. The number of staff or employees is also considered, as well as their business experience - especially the management's depth of experience. Usually, a business with a traditional amount of staff does better than one run by a single owner or partnership. A "one man shop" always runs the risk of financial setback if that person gets sick or hurt. The lending institution will look into the "character" of the structure of the business.

Often the personal credit of the business owner is the biggest factor in determining eligibility for a small business loan, since they are usually the primary guarantor of the loan. If the personal guarantor has a low credit score, his business may suffer by being denied the loan. Many times a cosigner will help the business get approved if the lending financial institution's criteria denies the loan due to the principal owner's credit score or history.

Generally, any small business entrepreneur needs to be able to convince the lender that their business is a stable and profitable enterprise. US Business Finance Corp's lending pros have helped many small businesses prepare their documentation prior to approaching the banks or investors. A lot of paperwork may be required to prove this, including invoices, bank statements, business references, and more. Be prepared to have your documentation readily available when you apply so you can quickly submit it to the lender and not delay a reply.

Ultimately, the goal of small business loans is to help every new business gain the financial independence they need to become successful and self sufficient. A loan can help achieve this by assisting with capital intensive investments such as equipment, computers, software, and even a brick and mortar building to hold the business. There are also hundreds of expenses associated with starting and running a business, and a small business loan can really help get the business off to a great start. Without the advantage of having a small business loan, many small businesses that grew into larger companies that we all know and recognize may not be around today. The loans give businesses the capital boost they need to make their mark in the world at the time they need it most, so they can become a well known name to many people all over America.

Use US Business Finance Corp's Expertise in Getting You A Small Business Loan

The US Business Finance team is ready to assist you in securing your small business loan. Our financial experts can guide you through gathering the necessary documentation, financial reports and the needed application in order to get you your operating capital. If you have any questions, please contact us at your earliest convenience.

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