Category Archives: Business Loans

Safety of Bad Credit Business Capital Loans

Trends go to show that bad credit business capital loans are growing in both demand and supply. What remains an apprehension however, is the concern for the safety of such loans. Safety in a loan can be seen as having two prongs:

With regards to repayment ability and the assessment/understanding thereof, and
Choosing the right lender – one that is both legitimate and fair.

One thing is true for virtually every transaction in business – there are risks and there are ways to mitigate them.

Being a trusted and well-established lender of alternate business loans that include services tendered to bad credit score borrowers, at BusinessCapitalUSA we believe in educating our borrowers and being transparent about all risks and concerns that are relevant to borrowing from us. With each risk that we discuss, we share simple, logical ways to protect against them.

With the first few sections ahead, we aim to cover the first point above and in the last section, we throw light on ways to identify trustworthy direct lenders, so that if you ever need to deal outside of our services, you should still know what to look out for.

The Risks associated with Unsecured Loans

If you as a small business owner seek to apply for a business loan and have a poor credit performance history, most chances are that you shall need to look for a non-bank direct lender providing alternate business loans. These are essentially unsecured loans as such lenders are not authorized (at the time of the writing of this article) to provide loans against collaterals.

While such loans are more tempting and also useful in the majority situations, there are a certain number of risks that come along with such a transaction:

In case of repeated failure of repayments and long over-dues, there is a risk of legal action being taken for recovering the loan as there are no collaterals at stake to cover for the loan when unpaid for.
There is a slight possibility of securing a loan amount higher than the worth of the assets or liquid assets of the business, which may need the borrower to consider availability of personal liquid assets in case the repayment is not manageable by the business.
Typically, bankruptcy of a company or personal bankruptcy would not protect against the liability of unsecured loans.

The best and perhaps the only way to mitigate such risks is to only apply for loans that are very likely to be repaid by you or your business as per the laid out time lines. Keeping a back-up plan chalked out for what needs to be done if repayment is becoming difficult, is a good practice.

The Risk in Guaranteed Loans with No Credit Checks

Whether your business is a startup or an established one, many lenders today are dedicated to offering guaranteed loans with no credit checks.

While a lender with healthy and fair practices would attempt to assess the financial health and estimate the financial trajectory of the business before deciding the loan amount that can be offered/approved on a guaranteed basis, there is a limit to how accurately any future predictions can be made.

To mitigate risks associated with such an offer, it is important to disclose accurate information to your lender at the time of application for the loan, and to only apply for a loan amount that is safely repayable.

The Risk specific to Long-Term Business Loans for Bad Credit

A poor credit score can often be a representation of poor understanding of the credit system. It can also reflect poor financial management skills and habits. While in the short run (say 1 to 12 months) income is a fair indicator of repayment ability, in the long run, credit scores are a key indicator that must ideally not be taken for granted.

Long-term business loans for bad credit borrowers tend to be expensive as the high risk loans are high in interest that accrues more with time.

The only way to mitigate this risk is to borrow high risk loans for the shortest tenure that repayment should be workable for and avoid choosing longer term loans over feasible short term loans.

Finding a Legitimate Lender

After understanding the main risks and addressing each one, a loan decision needs to include the understanding of the lender’s legitimacy and fairness in offering loans. High risk loans such as those for bad credit borrowers are bound to be more expensive than traditional loans and are only offered by non-bank direct lenders.

With BusinessCapitalUSA, you can rest assured of being offered a competitive deal for any business loan that you apply for. Years of trusted services tendered to our valued customers gives us an advantage of being experienced in dealing with business from many varied industries.

Easy signs that ensure you’re dealing with a legitimate lender shall include:

A contact number and an email ID that are promptly responded to
Prominent online presence and good consumer feedback
A secured website
Years of trusted service
A transparent and clear agreement that one receives on successful application of the loan.

If you would like to initiate communication with us for a loan, a simple online application shall be the fastest way forward and you can find it here.

Current Trends in Small Business Lending

Business environments are probably as dynamic as Mother Nature. Something that seems normal and stable today, might turn as a thing of the past in days, month, years or decades and the probability of people predicting anything accurately each time, is almost as good as it would be just by chance.

What indicates something that is important to focus on and understand in any present scenario, is likely to be a trend. Trends are temporary in nature, but can last for days, seasons, years and even decades. This applies for almost all industries and businesses and the business of small business lending is no different. These trends affect both lenders and borrowers, which means that as a business owner/stakeholder who may consider funding, it would be a good idea to understand some current trends that relate to it.

In this article, we shall discuss a five key trends that are impacting the small business lending market keeping in mind not that the ongoing pandemic but also what the future seems to hold in store and various other factors.

Trend 1. SBA Loans are Still Easy but the Pandemic did Reduce Approvals

Ever since the concept of SBA loans was put into practice, lenders and borrowers of such loans have seen great value in it. Yes, qualifying for one was never a sure shot, but approval rates have been good by large and the deals tend to remain attractive for businesses that can qualify.

However, certain trustable sources indicate that off late, there has been a slight fall in the approval rate of loans that are being applied for. This is understandable given that risk in lending is on the higher side these days for most industries.

Trend 2. Non-Bank Alternative Lenders have increased and Competition is rising

Non-bank alternative lending is playing an increasingly important role in the market by not just opening up opportunities for a much larger set of potential borrowers but also influencing the way the traditional lending system operates. With enhanced services that are easier to deal with, these loans tend to be expensive versus most other options. However, there is more competition now and this is allowing borrowers to get better deals. This ought to be an advantage for borrowers who prefer such loans or qualify for just these loans for various reasons.

A brief online application form is all that it takes to initiate a loan query from us BusinessCapitalUSA. We are providing competitive deals to small businesses and shall be happy to serve you.

Trend 3. Traditional Lenders are Strengthening Risk Assessment Processes

A natural reaction by the banking system during times of elevated risk, is to strengthen control over risk in lending. It is an important step for ensuring economic stability. Traditional lenders have been advised to strengthen their risk assessment processes until the global economy is out of the danger posed by the ongoing global pandemic.

This trend has played a role in moving some demand towards other forms of lending which were already seeing a rise.

Trend 4. Mobile or On-the-go Lending didn’t pick up well

A trend that went against the majority of expert opinion, is that of mobile or on-the-go lending. It was forecasted by the vast majority to pick up well. It had started to, but if recent times are to be considered a good indication, things didn’t go as most people estimated. The market share rose and fell. The fall didn’t exactly come with the pandemic as just weeks before the news started spreading, the market share of mobile lending in both personal and small business loans reportedly lost share. This trend carried on into the pandemic days too.

Trend 5. Cash Flow Still Remains Absolutely Vital

We have published articles about the importance of cash flow in businesses. Liquidity and availability of funds to circulate cannot fully be replaced by any other forms of assets and investments. Tough times and times of increased dynamism exaggerate the need the healthy cash flow and liquidity in businesses. The recent times have seen many businesses get devastated simply because of the absence of such readiness while many other businesses don’t just seems to sail through but also seem to grow thanks to well managed cash flow.

Borrowing remains a significant source of capital for liquidity in times of turmoil for many small businesses in the US. We at BusinessCapitalUSA provide loans for all purposes that a business may need to borrow money for, after just a few simple checks and verifications. We welcome you to fill out our brief application form to get in touch with us.

When to Take a Loan While Running your Business

Reasons to Secure a Business Loan

Every business sees phases of profits and losses during its tenure. At times, we may face financial trouble but may not want to completely shut down because of our belief that it may do well further down the line. Even during times when our business does exceptionally well, we may want to borrow money in order to scale up.

Here are some of the reasons why people apply for business loans:

While Facing a Trying Time, Financially

While running a business, you may come across a time when you feel the need to secure extra funding while facing a depreciation in your financial graph and may not have the amount of money that you may need. A business loan can help you get through your rough patch by providing you with the funds that you need to cater to the basic expenses of your business. For example, electricity costs, rent, salaries, etc. can be covered with the help of a business loan.

To Expand or Level Up In Your Business

When a business does well, wanting to take things a step further is natural. No businessman ever stops trying to grow and an expansion is always part of the pipeline. In situations where one’s company sees a lot of scope, one may not want to lose out but may not have the funds to scale up. Business loans help owners expand; be it to open a new branch, shift to a better location or renovate their current workplace. Nobody should lose out on an opportunity to grow and business loan lenders online ensure that even owners of small businesses aren’t denied that opportunity.

Seeking funds for expansion can take place due to the following reasons:

Hiring new people: Investing in an employee undoubtedly costs a lot. With the need to keep one’s team happy with a juicy salary and added benefits entails a fair amount of money and the opening of new positions in the firm adds to that. Compromising on hiring the best of the best shouldn’t be an option when you’re already putting in so much money. If you don’t have enough to employ the best then taking a business loan can certainly be beneficial and can help you hire the right professional for your firm, thus adding value to your company.
Buying new equipment: New inventions in technology and equipment never die because everyone is always looking at making things easier for humankind. One wants equipment that can serve the purpose it’s been purchased for in very little time. Of course, one can make do with equipment that aren’t that efficient, but for the best outcome it is important to invest in the right one in order to improve quality and reduce time. A business loan can help you invest in the right kind of equipment for your firm and help increase productivity and efficiency.

A business loan can certainly help one in many different ways and can cater to the needs of different business owners. Be it expansion or a slowdown in your business, these loans are meant to help your firm succeed in the long run and applying for one after a thorough research about your long term goals and understanding why you may need it can undoubtedly help you.

Business Loans: Right or Wrong during the COVID-19 Pandemic

As COVID-19 wreaks havoc across the globe, some businesses are going strong, sole holding on against the tide, some new businesses are thriving well and others are losing their grip and shutting doors permanently. Business loans can be a big decision which can have strong impacts on a business. As an owner or a key stakeholder in a business, one may need open advice and practical recommendations to take the right decision for their business’ future. We share our take on it. It would be a stretch if we said that our article here provides a one-size-fits-all solution. What we put together for you are key but broadly applicable points that can be considered, which aim to help decision making clearer for our readers, while they are the ones who would know their situation probably the best.

What is your Business’ Situation?

It is seen off-late, that much emphasis is made in the market by highly opinionated experts who seem to have two starkly opposing opinions – one being that business loans are very helpful for sailing through rough days while the other being that business loans can be devastating at such a time.

The reality however is that a lot depends on what your business is currently facing. What we shall do is, be practical at sharing when and why a loan can be a good or bad business decision and you could use that information/idea to come to a conclusion suitable to your business’ scenario.

Situations Favorable for a Business Loan	Situations Less Favorable for a Business Loan
Established business that just needs funds to sustain comfortably	Startup business under 6 months in age dealing in non-necessity items/services
Business in an IT-related or logistics-related sector that is growing during the pandemic	Businesses that depend on mass-gatherings that plan to invest the borrowed money to increase response during the pandemic
Businesses that need expansion or added equipment/inventory to serve their customers	Businesses that are already having to cut costs to sustain and are uncertain about their future
Businesses strong on less liquid assets but strategically avoiding liquidation of assets by instead choosing loans	Businesses nearing bankruptcy
Businesses that have added work due to the pandemic	Businesses that are almost without work during the pandemic
Businesses that need to broaden their services a little to be able to serve the new market scenario	Businesses that are desperate to add services hoping to be able to serve just any customer

These above guidelines are broad but cannot address every situation accurately. For example, if a business is using a loan to just sustain until the pandemic is over, it can be a good decision if the end of the pandemic means great business. Business risks have to be assessed by owners and stakeholders keeping a lot in mind and this article is only intended to assist understand some concepts more clearly to help the decision process be easier.

How do you Plan to use the Loan?

Businesses use loans for many purposes, like buying equipment, paying dues, adding liquid capital, training staff, adding inventory, sustaining the ongoing expenses, and more.

Through years of existence as business loan lenders, we have been able to maintain a list of what business owners tend to use business loans for. While we do not mandate our borrowers to disclose the reason for the loan, studying the industry does help us serve our customers better and for your reference, we have categorized similar uses of loans as safe and unsafe uses keeping the current market scenario in mind.

Safer Uses of a Business Loan	Less Safe Uses of a Business Loan
Relocation to serve more customers or to increase ease of access to current customers or to reduce rentals, etc.	Relocation in hopes to find another region that might work while the current region is not working out
Temporary sustenance while the future is certainly bright	Temporary escape from bankruptcy
Expanding businesses when required	Expanding business hoping it’ll work while the current business is not working well
Adding necessity items to the inventory	Adding luxury items to the inventory
Marketing new services designed for the new market scenario	Marketing existing services that lost momentum due to the pandemic
Prepare the business for sale when the deal is confirmed	Prepare the business for sale hoping to sell it
Diversification of services to cater to a safe market segment	Diversification of services without researching what could work in the current scenario
Handle running costs which can also be covered by liquidating assets but a loan is determined to be a better option as the business is healthy as such	Pay employees their salaries while no assets and present income can handle that – it might be safer to consider declaring bankruptcy

While this list is in no way wholesome and complete, what we have provided here can be used as a broad guide to understand what sort of uses of a loan are on the right track and what are not. If the decision still seems hard, expert consultants can be approached and it is possible that the fee you pay for their advice turns out cheaper than a miscalculated business decision.

Know What Loans could be Available to you

The market being in a turmoil currently, loan options have become limited. The government has stepped in to assist small businesses. If your business is able to qualify for a supportive loan from SBA (link shared at the end), it is the most cost-effective option out there.

Alternative loans for businesses such as those from our services at BusinessCapitalUSA are quicker and more convenient options with shorter terms that reduce the impact of higher interest percentages. To apply for a Business Loan from us, a short online application form can be filled and we shall get in touch with you within a few hours.

Are Business Loans Hard To Get?

Business loans can be hard to get, especially if you own a start-up or a small business. A bank doesn’t offer loans to all business owners and they see the funding of smaller businesses as a higher chance of a risk being involved. On-deck recently conducted a survey about statistics related to small businesses being denied loans by banks and the results turned out to be a whopping 82%.

One of the reasons why banks deny small businesses loans is because most small business owners may find it difficult to offer collaterals in comparison to larger businesses. Another reason is that the process of approving and providing small and large loans is the same, which is why they focus on catering to clients who need larger sums of money.

Even if an individual wanting to take a loan for a small business (typically less than $2M) has great credit and a concrete business plan, there is no guarantee on getting his loan approved from a bank, especially if they don’t have tangible assets.

In order to get a small business loan, you should know whom to approach. There are a lot of lenders other than traditional ones who are willing to fund borrowers who need fairly smaller amounts of money to kick-start their business.

Business Loans from Business Loan Lenders

There are a few lenders in the market who offer loans specifically to those individuals who need less than $2M to get their businesses running, and start-ups are funded without having to go through much hassle.

These loans are specifically meant for business owners who are denied finances from traditional lenders. It is fairly easier to get funded from such lenders since their demands are very few. Most of them ask for very basic documents which makes getting funded easy.

Business loan lenders such as BusinessCapitalUSA require minimal documentation and criteria to be followed in order for one to get a loan from them. Along with that, they offer various advantages that a traditional lender won’t, including:

Online applications- this makes applying for a loan a quick and an easy process. You don’t need to go around hunting for the right lender, waiting in long queues or going through long application procedures that can take hours to deal with. You can apply from at a time and place that’s convenient to you while concentrating on your business instead of where to get a loan from.
An elaborate business plan is not required. Basic details regarding one’s business may be asked for just to be sure that the borrower is legitimate. Blue prints, scope, and other unnecessary statistics or information isn’t required.
Got anything less than excellent credit? You can still get funded without worrying since that is not a requirement.
Collaterals are not asked for which is probably the biggest benefit of the lot. This advantage helps a lot of professionals start their businesses without hesitating about not being funded due to the inability to offer security.

Not everyone today is blessed with the best when talking about finances. Some people may have the capability of starting a business all by themselves and may be confident about succeeding. Nobody should be deprived of loans only because they do not have something good enough to offer as collateral.

However, one must be aware of the fact that such loans demand a higher rate of interest as compared to business loans that you get at banks. That’s basically because the other advantages that they have to offer are plenty which is a plus point for anybody who is willing to spend a little more on a loan that has such benefits.

If you are confident about being able to repay a business loan from a direct lender with the particular interest rate that they charge you and haven’t been granted a loan from a bank for your business, then going ahead and applying for such a loan will do you no harm. However, keep in mind that if you aren’t too sure about being able to pay back the borrowed money on the dates agreed upon by your lender and you, think again before burdening yourself with debt.

Why Applying for a Business Loan Online is a Good Idea

A business has to undergo a lot throughout its tenure. From paying off employee salaries to a large number of bills, they do include a lot of expenditure and the owners may find it difficult to do so all on their own. Here are a few examples of when and why applying for a business loan is a great option for you.

Situation 1- Payroll Expenses:

It is not new news that these days, employees come with an expectation of a salary that can fulfil their daily needs. This means, paying off their rent, EMIs if any, grocery bills, electricity bills, gas bills and transport to name just a few.

In order for one to run a business successfully, you must have enough number of employees to fill in every position that your firm may need. Let’s take a restaurant business for example. Being the owner of one, you will have to take into consideration these various job profiles that will require you to hire employees for the same, for your business to run efficiently.

Cashier: Depending on your opening hours, you will have to hire at least 2 cashiers who can take care of the billing.
Servers: A food and beverage business definitely calls for a good number of waiters to be hired. You must keep in mind the various job roles a server has to play- from taking orders to generating KOTs and serving the dish to your guests. Some basic restaurants are not very choosy about whom to hire. However, if your target market is the upper class and your menu is expensive, then you should ensure to hire professionally trained butlers- who without a doubt, will charge much more than an individual who is not specialized in the field.
Bartender: If your restaurant serves alcohol, there is no doubt that you will need a few bartenders for the same.
Accountant: A very necessary job role that very few can pull off. A C.A. or an accountant needs to be hired to manage your revenues, incomes, profits and losses just to name a few basic factors that accounting entails. Apart from that filing taxes, which ones can be waived, etc. are also necessary, which only an accountant can help you get through with.
Chefs: Ever heard of “Kitchen Nightmares”? Yes. You do not want your restaurant to be part of that, do you? In order to be able to run for a long period of time, you must factor in ambience, vibe, service and most importantly food! The presentation, quality and taste of your food are all very important in order for your food outlet to be success. To do that, hiring the right people who specialize in the kitchen department is very important; and they obviously will demand a fair amount of money when it comes to their salary.
Maintenance Staff: Maintaining good hygiene and cleanliness are undoubtedly very essential. Keeping crockery and cutlery clean and ensuring that the kitchen and dining area are neat and tidy will certainly need a good number of staff which will require you to invest a good amount in.

This was an example of a basic restaurant business, which needs quite a few employees to run smoothly. You should keep in mind that not every day is a Sunday and that some days may be profitable while some may just not be the best, financially. However, in order to sustain you will need to keep your employees and to do that you will have to pay them. These are the time when a business loan can come in handy and be quite beneficial to you and your business.

Situation 2- Equipment Replacement or Investment:

Technology is undoubtedly growing in every aspect and field. That being said, we always want to invest in the best of the best equipment for our business, because they promise a longer duration of sustenance and in general, make life easier while running a business. Let’s take the above example of the restaurant business into consideration once again. Most restaurants these days prefer investing in a deep fryer instead of going the traditional way of heating oil in a huge cooking pot that not only takes a long time to heat but also wastes a lot of time while cleaning it, apart from the fact that it needs to be changed every few months since it gets worn out sooner.

However, even though more durable and long lasting, such equipment can get spoilt once in a while, or you may just want to invest in one that you don’t own yet. These are definitely not cheap which is why a loan can help you invest in a piece of equipment that seems like a good choice for your business.

Situation 3- Renovation of Your Office:

With time, trends, interests and preferences change. Maybe a few years back a certain theme- for example dim lights and recorded music was preferred- and now something that makes the ambience lively and vibrant with a stage for musicians to perform live is preferred for a restaurant. Also, one may want to change the look of their workplace in order to break the monotony. Whatever be the reason, renovation is key for many businesses to do better than they already are. In such circumstances, availing a business loan from a trusted lender can be a good option.

If you have bad credit, it can be very difficult for you to receive a loan from a bank or any other traditional lender. A business loan from a lender like BusinessCapitalUSA can help you solve that problem, since we know that there can be a number of reasons as to why one may have a faulty credit rating especially while trying to run a business. For instance, if you’re still paying back a loan that you may have taken a few months ago, your credit rating may not be the best but it still doesn’t imply that you’re incapable of repaying your lender and may be the case of your repayment term not being over itself.

From taking care of employee salaries to investing in stationery, everything requires funding which may not be very easy to get. In such circumstances, a business loan can be very beneficial and these were just a few of the many examples of such situations.

Business Loans for Human Resource Development

Business Loans for Human Resource Development – Great Intangible Returns for the Long Run

Businesses use debt in many ways in today’s scenario. It is very simple and common for a business owner or another authorized individual to go out there to the market or just browse online and find a loan for equipment purchase, rental payments, upgrades, new store openings and a lot of other such projects or even simply added liquid capital. However, what a lot of business owners tend to overlook, might just be the one that could provide top-notch returns on every dime invested! We here, are referring to Human Resource Development.

What is Human Resource Development?

Human Resource Development, or simply HRD in simplified business terminology, can be explained as a planned approach to enhance competencies in individuals and groups at a workplace/organization through learning activities. The aim of any initiative within HRD, is to ultimately ensure progress of the employees (the Human Resource of an organization) in a way that is useful to the business and individuals too – at a professional level.

Examples of HRD activities/initiatives may include educational programs, team building activities, fitness programs, time management training, support for qualifications and certifications, career guidance, cross-training and so on. HRD can be most effective when planned right and executed as per plans, that and be reviewed periodically keeping the progress in mind.

A great example we could give you from a past borrower of ours is, of a company that works as a logistics consultancy firm (name undisclosed as requested). The start-up company, just a few months old, took wonderful advantage of the fact that we ask no questions about where our clients invest until the time that they choose to leave a feedback. They used their loan from us at Business Capital USA to train their front line sales team in negotiation from a very reputable but equally expensive consultancy service. In a few months, the manager dealing with us was so happy about his team having cracked a lot of deals at amazing prices, that it drove him to call our team to specially thank us, which is one of the biggest things that keeps us as lenders, motivated to do our jobs well.

Who in an Organization Plans & Executes HRD?

Typically, larger organizations tend to benefit from a team dedicated towards planning and executing HRD. Smaller businesses might integrate this role with HR management, training management or the general management of the organization. We have served a company where the business owner himself did the task, possibly without even knowing that what she’s doing, is known in today’s business world as HRD (we say this because we later introduced her to the term after hearing about the experience and benefit her business had, through the initiative).

Why Investing in HRD can make your Money Grow Faster than the Interest Rate of your Loan?

Generally, it is safe to state that the goal of taking a business loan is usually to be able to generate an output from the money borrowed that is higher in value than the loan amount plus the interest that accrues from it. In simpler terms, a stakeholder in a business would like to see the loan money directly or indirectly grow into an amount larger than the loan’s payback itself.

Unlike equipment, liquid cash capital, refurbishment and other traditional investments of loans, HRD is an intangible investment. This is perhaps the reason why it often gets overlooked. However, the monetary and non-monetary gains that an organization can get out of having better skilled employees who work even better as a team, stay fit (hence requiring less leaves due to sickness), manage time efficiently and are greater at selling or producing what they are intended to, can be remarkably huge.

In our example from the past where the logistics company managed to bag multiple great deals thanks to a training in negotiation, if we assume that a training came at a cost of $2,000 which was financed by a loan which came at a total cost of $2500 and it resulted in an average of $500 increase in each negotiated contract value, in a matter of just 5 such sales, the loan amount was covered and every sale thereafter, was simply profit from the loan for the business, virtually coming out of the thin air! This is a scenario that is well plausible in today’s business environment and a lot of organizations of all sizes and industries are today able to utilize this and reap wonderful, lasting benefits.

3 Common Business Loans for Restaurant Owners

Our Restaurant Loans

1) Restaurant Working Capital Loans

Assists in maintaining a healthy cash flow
Covers operational costs of restaurants

2) Restaurant Equipment Loans

Covers kitchen equipment upgrade or purchase
Funds cost of furniture for restaurants

3) Restaurant Inventory Financing

Help get through seasonal fluctuations
Helps purchase additional inventory

*** Indulge in our restaurant loan delicacies for an affordable financing experience.

5 Easy Steps To Getting A Business Loan

Like any other small business owner, you want to see your business prosper. Besides, wise and timely business decisions are imperative to increase your business capacity and generate profit. It is understandable that any business, irrespective of the type of industry, is prone to fluctuations. Occasionally, your business may be in surplus and you want to reinvest in your business by hiring additional staff, expand to another location, add a new service or product, and grab a money-spinning opportunity. It may also be that your business needs extra money to get the necessary equipment repairs done, buy new equipment, pay for employees, or deal with any other day-to-day costs. However, to stock up your resources, you may need money from an external source, which is usually challenging. If you are already exploring business funding options, then you may consider a business cash advances from direct lenders online.

What is a Business cash advance?

Business Cash Advance or Merchant Cash Advance is a straightforward or reliable funding alternative to business loans from banks. It is unsecured financing against future sales of your business. With a simple online application and approval in minutes, you can receive up to $500,000 for any business purpose in as little as one business day. Thus, it offers quick access to small business financing with reasonable requirements.

Here’s how to obtain a business loan/merchant cash advance in few simple and easy steps:

1) Determine the need for a business loan

There are several reasons to avail small business financing. It may be for growing your business, deal with daily business spending, or merely having a secure financial cushion. However, you have to decide what exact business purpose you need money.

2) Choose the right type of loan for your small business

You have a vast choice when it comes to choosing the loan type, as each funding option is designed specifically to suit individual business requirements. Accordingly, there are women’s business cash advance, business working capital, equipment financing, business invoice financing, business expansion loan, etc.

3) Deal with the genuine cash advance loans lender

You can either opt for conventional lenders or alternative online lenders. However, financing a small business is increasingly becoming difficult given the stringent lending standards by traditional lenders such as banks and credit unions. Whereas, a business cash advance is the best financial option if you lack assets to pledge, want speedy approval decision, need funds quickly, and desire convenient repayments.

4) Check whether you qualify for a business cash advance

Realize that, getting approved for bank loans needs an outstanding credit score and collateral. However, eligibility criteria for the business cash advance are relatively simple and easy. With at least 1 year in business and a minimum of $15,000 in monthly revenue or steady monthly cash flow, you can improve your chances of qualifying for funds even without collateral and excellent credit.

5) Submit your documents and sign the contract

Subsequent to narrowing down your funding option, apply for a suitable loan that suits your business needs. Depending on the type of lender, you may be asked for various document combinations. However, if you are considering a merchant cash advance, you may be asked for bank statements of the past three months, lease agreement or landlord contact information, and credit card transaction processing statements of the past three months. Finally, read all the terms and conditions carefully, understand them clearly and then sign the loan agreement.

Explore when and why you should consider Small Business Loans.

Small business needs improvements occasionally and it also true that it takes money to make money. Hence, depending upon the type of industry, a small business may involve working capital to reinvest in business by buying equipment, covering marketing and advertising costs, managing cash flow; placing in real estate, etc. However, small business loans can facilitate in financing both the anticipated and surprising shifts in your business and thus enable you to reap high returns.

Know how Small business funding is a smarter option and taking it can help your business grow:

Buying equipment or machinery

Exceptional business performance may require some or the other improved equipment or machinery to complete the job. At times, having got the required equipment appears insufficient as the costs of unforeseen repairs or replacing of defective equipment can go beyond your planned budget. Additionally, broken machinery can result in delayed services that in turn can ward off your potential customers. Thus, dent the business credibility, gradually. However, when considering equipment, you have options- to buy or to lease it. A straightforward cost-benefit breakdown can help you make a wiser and quicker financial decision. Small business funding, apart from aiding you to deal with equipment costs competently, it also serves to hold your business coordinated with the technical advancements.

Expanding your business operations

If you are aware that your small business is flourishing and it has exceeded your present office location, then it is time for expanding your physical location. However, realize that expanding business means hiring additional staff, increased advertising costs, renovations, etc. If you lack decent funds for such a big shift, you can also consider loans for small businesses for putting in an opportunity to expand. Yet, employ a revenue forecast and determine how the supposed expansion would influence your business before buying a second location for your business. Since purchasing real estate is a healthy business indicator; banks can easily approve your loan request. Nevertheless, if you want convenience and fastness, small business funding from Business Capital USA is your best bet as it maintains your business operational costs undisturbed.

Purchasing additional inventory

Addressing inventory costs is often a challenge for many small business owners. In order to sustain the customers’ growing demand and allow uninterrupted service to them, you constantly need to refill your inventory with ample options. This turns even harder to handle when your small business is a seasonal one such as a retail business. Moreover, buying bulk inventory without even gaining the return on investments can is high-risk. A well-established sales projection can render ease and confidence while making this unmanageable financial move. As a small business, you can make the most by applying for a small business loan prior to the holiday season and repay conveniently with the sales profits from the recurring sales. Thus, opting for small business funding can easily make up for the chief expenses- inventory overheads.

Boosting working capital

Holding a steady cash flow is not possible always. Sometimes, you need extra money to address routine business operations. Cash flow issues can turn more intense when you have unsold inventory, rent, staff, utilities, etc. to deal with regularly. Such a scenario demands small business funding to cover up the working capital requirements until the business’s earning assets recover substantially. Availing loans for small businesses can thus extend the necessary financial cushioning during periods of low sales.

Small business loans can thus grant a greater prospect to retain cash flow throughout the low business season, deal with usual operational costs, compel revenue, compensate for losses, preserve customers, etc. Moreover, it also offers ease of application, speedy online processing, and quick funds transfer.