What You Will Need to Get Small Business Finance
Poor credit is no obstacle to small business owners wishing to acquire business finance. When a small business owner plans to expand business and finds that he has already used up obtainable supplies of funding and getting additional finance by regular supplies may be too time-consuming, then finance from “non-traditional” supplies may be a better option.
What would be the requirements for a business owner to acquire small business finance?
A running business
Startups are precluded from obtaining this kind of finance on soft terms. In order to be eligible, a business must be in operation for at the minimum a year.
A minimum amount of sales per month
Someone who has started the business recently and is generating revenues of less than $ 10000 by way of credit card sales may not be eligible for small business funding unless the case is assessed and considered on other grounds such as a possible for growth that the owner can justify and sustain.
Small businesses are usually proprietary types. A business owner, already one with poor credit, should not hesitate to acquire small business capital already if it method paying a higher interest amount because it can help him get back on track to fast growth. The documentation is minimal. He needs to submit proof of ownership. The other documents he must provide are bank statements for the past six months, proof of identity and proof of residence.
An applicant may wish to get small business finance within 3 to 5 days for which he should apply online and keep ready scanned copies of the above-mentioned documents. These may be uploaded along with the preliminary application. Should the application be approved he may be required to furnish printed copies.
What is not required for the small business loan?
• An applicant need not have a stellar credit history.
• He may not have to furnish collateral or mortgage character.
• He may not have to furnish a guarantor.
It is fast. It is easy. However, there are a few things to keep in mind. An applicant must consider the factor rate applied. This is a fancy term for rate of interest though it is not specifically so mentioned. Repayment may range from 3 months to already as long as 36 months and it is tied to the credit card sales as a percentage of daily turnover or a fixed monthly amount. Should sales be high repayment is completed in a shorter time. In real terms, an applicant may end up paying processing charges plus interest that can be as high as 50% because the loan is unsecured. The best thing to do is to examine the offer and acquire such funds only from a lender who does not charge anything upfront, no processing charges and applies a moderate interest rate.
It is easy to get this kind of finance if one has a running business but repayment is the tough part. Small business owners would do well to keep in mind to plan to use funds to generate more revenues instead of paying off existing debts.