As a company owner, CFO or Controller, one of your most important tasks is to select the right business bank. It is easy to think that all banks are the same, but there are important differences in services, fees and culture. So it’s worth taking some of your valuable time to insure that the bank you select is the best fit for your business.
First, analyze the services you need from a bank. Here are some factors to consider:
- Cash-Flow Management – Are lines of credit for smoothing cash flow available at reasonable rates, and what are the penalties involved? Are you in a business with low transaction volumes but high dollar amounts (such as capital equipment sales), or high transaction volumes and low dollar amounts (such as gas stations and discount retail)? The former would require more cash-flow management than the latter. If you want more credit, check out MoneyTips’ list of
Lending institutions profit from helping businesses thrive. If you are concerned about your business simply surviving, or if there are indications of fundamental flaws in the business model, there may be too much risk for any outside investor to take on. Before you approach any financial institution for a business loan, there are several key documents you should develop and questions you should be prepared to answer. These must demonstrate who, what, when, where, how and why an institution would be making a sound investment by loaning money to your business. And, in the spectrum that ranges from failure to survival to a thriving business, you should develop these documents in such a way that the focus on thriving is front and center and well-articulated.
- Who — Create executive profiles that provide detailed biographical information, education, past work history and major accomplishments for each key decision maker in your business. Because banks w…
If you own a small business or intend to buy or start one, you will probably be borrowing money at some point — and possibly more than once. You may need money for startup costs, expansion, cash-flow management, disaster recovery, or any number of uses requiring operating funds and/or capital investment. Unless you have a money tree, trust fund or fairy Godmother, you may need a business loan to tide you over when cash is tight.
Typical types of small business loans include:
- Standard Term Loans – A standard loan used for working capital. They may be secured (using company assets as collateral) or unsecured (based only on the credit rating of the business). Personal assets can be used as collateral for secured loans, but with obvious risk.
- Startup/Acquisition Loans – Funds used to start up a business or acquire a business/franchise. To convince a lender, startup loans will often require a sound business pla…
As the qualifications for small business loans become more difficult to meet, many small business owners are looking for alternatives. Many have found that going with an online lender has advantages over banks and other traditional lenders, although there are some disadvantages as well.
One of the reasons small business owners are looking at online loans is because they can have their funds in hand quicker. Brick-and-mortar lenders often take more than a month to check a loan application, approve it, and transfer the money to the business. Online lenders, though, often approve loans in less than a week and have the money to the borrower in a day or less.
These lenders also may not look as closely at the applicant’s …
When applying for a loan, most small business owners assume they will be evaluated only on the information they supplied on their application, but that’s not always the case. In fact, when applying for a loan from an online lender, that lender often takes into account things such as the social media profile of the business before making a decision. Lenders with a physical location take a look at Facebook, Yelp, and other social media sites to better check a business loan applicant.
Lenders are looking at these profiles to get a better idea of where a small business stands. For example, a business with thousands of Facebook followers has a ready au…
Many businesses make use of credit cards for daily purchases, and some new small business owners even finance their entire business on credit cards in the beginning. A business can make use of various reward points and other perks to save money and build up its credit score, but there are some downsides to using business credit, too. Just as with individual credit cards, there are risks. Here are a few things a business needs to be wary of.
Multiple employees can have credit cards connected to the same account, making it easy for businesses with several employees who need to make regular purchases. However, these employees can abuse their credit cards by using them for personal purchases. The business is respons…
According to a survey by the Pepperdine Private Capital Access Index, small businesses are planning to expand this year. The survey found that 83% of respondents said they believe their small business will expand in 2016. Many added that they expect their total annual revenue to increase by an average of nine percent over the year. Owners of businesses that made $5 million or less were more confident about the growth of their business than those who owned bigger companies, showing that the small business sector is booming.
Small businesses need financing to grow, but securing that capital is often difficult. The U.S. Small Business Administration estimates that only twenty percent of all small business loan applications received in 2015 were approved.
Has your rental application just been rejected? Determined to make lemonade out of lemons, you resolve to find out why you were rejected and change the situation so that your next application is approved.
Assuming that you filled out the application correctly and made no obvious mistakes such as bringing your pet rattlesnake or a running chainsaw to the rental office, what are the most likely reasons for your rejection? Rent Café recently released their findings on the top reasons for rental rejection – and the results may surprise you.
1. Neglecting to Make Payments – Sean McQuay, Credit and Banking Expert at NerdWallet, says, “A lot of rental agreements require a credit check. They are not checking your credit score per se, but they are going to make sure that you pay your bills on time.” It’s one thing to be late on your bills, but it’s another …
Borrowers may file for bankruptcy when they no longer have the funds to pay their debts. While this may come from taking out too many credit cards and not properly budgeting, it may also occur due to a sudden illness, becoming unemployed, or any other type of unexpected financial situation.
When an individual files for personal bankruptcy, they usually have two options. Each of these is different in how it treats the consumer and their debt:
- Chapter 7 bankruptcy requires consumers to liquidate at least some of their assets to pay back their debts. Which assets to liquidate depends on the person’s finances, the state they live in, and other factors. There are many criteria a consumer must meet in order to file Chapter…