Business Loan Financing Or How To Get Business Loans Fast?

1. Definition of loans linked with different purposes

a. Purpose

Whenever you ask for a loan, the first thing the lender will ask you will be related to the usage of the money. What are you going to use the money for? Is it for what they call treasury purposes or for capital expenditures? In very simple terms is it for daily routine necessities of the business, which can be in the form of the cash requirements for paying off day to day expenses like paying the suppliers, buying stationery, paying to the cashier, etc. or is this because you need the money to expand or grow your business, which in this case can to buy a new machine the increase your production process. One last possibility is to have some spare money aside for contingencies which means in case you need to make a large payment to replace a new machine which just broke down. One your lender is clear on how you will use your money, then one box is ticked in his scorecard or he is one step closer to the decision making procedure.

b. Lending Criteria

Obviously there is not just one type of Business Loan Financing. It all depends on different criteria the lender will consider before he can decide if yes or no he wants to give you his money. Let’s go through the main two:

1. Amount of the loan: make sure the amount looks reasonable when compared to your capital and the size of your balance sheet. You don’t want to ask for $10K if your capital is at $1K. Why? You could wonder why not after all. What difference does it make? Well there is a huge difference. The bank is going to lend you to the extend it believes you can pay back the money very easily. So if you ask for more than you can cope with in terms of making that type of revenues or having a capital that is smaller than you’re asking for, big RED WARNING signals are going to ring for them. So start small and then you can increase gradually when you have proven you are a good creditor and you make enough cash to pay them back. As remember this is what the bank is concerned ALWAYS!: can my client pay me back? You now start to understand what the key components are in a business loan financing decision process. Bear in mind that once you know all of them, you have the magic key to decide what are the best Business Finance Solutions for you and get your business loans fast.

2. Maturity: this is the second most important information the bank will take into account when they make their decision in any business loan financing transaction. Maturity of the loan means how long you want to take the loan for. A good average is 5 years. If you take a large amount of money and want to repay quicker, you will need to demonstrate that you have enough spare cash after all expenses have been taken out, to repay your loan. On the other hand, if you do go for longer than 5 years, the bank will want to get a picture of where your business will stand after that period. And if you are a small-medium sized company that has been operation of 2-3 years, this can represent a risk for the bank to give you a loan for such a long period as you don’t have enough history to back it up. So even if you have a desperate need to get financial help for business growth, bear in mind that you want to increase your probability to get your loan approved by asking the bank for a loan which will meet their lending guidelines.

c. Take Action Now

Now that you are aware of what the bank is looking for and on which lending guidelines any lender, mostly banks will base their decisions on, you have increased your success rate in having your loan approved whatever business finance solutions you opted for. GO and Get your Business Loans Fast!

Business Finances Made Easy’s mission is to help business owners getting an accurate understanding of their business finances. This will allow them to be able to discuss their business finances at any time with confidence and will help them to get additional funding on demand.

Business Equity Financing – Ways of Raising Capital For Your Business

Business Equity Financing is the selling of an ownership interest in the business in exchange of capital. The basic hurdle in this form of acquiring capital is finding people who are willing to buy the ownership part of the businessman. In most cases, people who have gone this way find themselves tied, confused in that, they do not want to lose the management control that they have over the business and yet they are in need of capital for the business.

Business equity financing means that the owner might have to loose management rights in the business. Selling a large percentage interest might mean losing your short-term investment in the long run. This situation can only be saved by retaining a majority interest in the business and control over future sale of the business. This is normally true for large business. Not many small businesses go this way since there is nothing much to loose in such a bushiness.

For those who choose to sell their rights for profits, they should consider the long-run loss or profit of doing so. In case the profits out-weigh the losses, then they should do so with no guilt whatsoever. In case one finds that it is not possible to go the business equity financing way, they could then consider other options available for small business funding

Alternatives available are such as business combinations where other businesses in the same category come together to share costs. These are mainly done through corporations. The government could also come in to offer venture capital, although this may not be applicable in all countries. An owner of such small business could also consider approaching private investors who aim at making profits as well as helping small businesses.

Small Business Social Marketing – 8 Ways to Get Your Customers to Pass the Word

For small business owners it is sometimes difficult to compete online. As a result, you must use every available option to get the word out that you have a great product or service to offer. The best way to do this is by soliciting your existing customer base to refer you.

One of the biggest mistakes a small business can make is not asking for a referral. We just assume that our customers will love our products to much they will automatically tell others about it. In reality, unless you tell a customer that you would appreciate them passing your name around, they may not even think about it.

You can do this easily both online and offline.

Offline referrals

  1. If you have sales staff, train them to ask customers to pass the word to their friends and family.
  2. Make sure you print your Twitter or Facebook username on all receipts, invoices, business cards and on-site signage.
  3. Have your sales staff mention that you are on the social sites and invite them to add you to their friends or followers list.
  4. Mention you are on Twitter and Facebook in your telephone voice-mail message.

Online referrals.

  1. Add your social account IDs to all of your web pages and invite your visitors to follow you.
  2. Include your usernames in all of your email signatures along with the links to your website.
  3. When you ship a product out, include two of your business cards that have your social accounts clearly visible on them and staple it to a thank you note. Ask them to keep one for future reference and pass the other along to a friend who might also enjoy your products.
  4. Make it easy for your visitors to link to your website by providing them with pre-written html code for a text link and also providing them with banner ads.

If you put these tips into action, you will find that word of mouth (or print) referrals will begin to flood in. Statistically, referral customers are much more likely to buy. They have received your name from a satisfied customer so they already trust you. You do not have to “sell” to this customer because they already know they want to buy from you. It cost you nothing to gain this new customer because your buyer did all of the advertising for you. Once you put this plan of action to work for you, your cost of acquisition will go way down, meaning more profits in the bank.