A Faster Way to Get Small Business Loans
by ShashiBellamkonda
It is not easy for small businesses to get small business loans. Banks and other lenders require them to go through strict and complicated financial procedures with stringent requirements for qualification. After everything, credit approval is not even guaranteed.
Even the financing for loans supported by the Small Business Administration (SBA) cannot meet the needs of the majority of small businesses. Although the amount of credit available for small businesses has reportedly been increased by 25% since March this year, it is not that easy to avail of the said small business loans.
Small businesses seeking small business loans should know how to prepare the right kind of business plans that banks are looking for. To justify the loan, they should be able to show the banks in detail how they intend to use the money in business and how viable their plan is. Experts say lenders have specific points which they scrutinize applications for and applicants should know these points and tailor their submitted business plans accordingly.
It is also said that loan applicants should first establish a strong relationship with the lending bank in order to increase the possibility of having a loan approved. Banks supposedly give more small business loans to businesses they have already known and trusted long term. Since small businesses are usually new businesses, this is quite difficult to do and it cannot be done in a hurry. How can a new small business with financial needs establish a good long term relationship with a bank in time to meet its current needs?
Another requirement of lending institutions from small businesses applying for small business loans is a good credit history score. A small business should first be deemed credit worthy by the bank before it can even be considered for loan approval. Again, small businesses that are stll young are at an immediate disadvantage here. How can they establish credit worthiness in time?
The US Congress has also placed Congressional restrictions on eligibility for the Small Business Administration loans. Small businesses first have to prove that they are at least two years old and are both struggling and viable at the same time. They should present proof that they have had a positive cash flow in one of those previous two years in business. They should, however, be currently struggling with “immediate financial hardship” with a decrease in income that should not be less than 20 percent. At the same time, they should submit their projections for cash flow for the next two years, proving that they will be able to meet loan payments.
A faster way to get small business loans would be through credit card services.
Any small business should have credit card services. Credit card services enable a company to accept customer payments for goods and services via credit cards or debit cards, whether over the counter in brick and mortar settings, through the phone or online. Credit card services provide the hardware and software for this.
Being able to accept payments through credit cards or debit cards can greatly enhance a small business’ income earning potentials. In addition to that, credit card services can provide the equivalent of small business loans with no need for any collateral. The amount of the small business loans are computed based on the average monthly income of the small business from credit card payments. The small business loans are then amortized through automatic monthly deductions of a certain percentage from the small business’ future credit card revenue. This means small businesses can almost automatically qualify for small business loans through credit card services, and will surely be able to pay such small business loans. Is there a faster way than this?
President Obama speaks about the key role small business plays in moving the American economy forward and the steps his Administration has taken to help small businesses grow and hire new workers during a visit to Woonsocket, RI. October 25, 2010.
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obama is coolest american president
@ruppertknickerbocker um…bush jr didnt do much of anything…oh wait..he did…but not anything beneficial…not a good argument…
@HetAppelMoesje~Are you High? He has no clue what to do….same goes for his staff. Start stacking up on canned goods, and water purifiers.
i love obama for real
Obama is great guy !
All good points that help out the local economy, well done mr. President
comment no 8
11/02/10 The voters? have spoken. Will Mr Obama and those in congress listen?
@chaumont20 STOP PAYING TAXES AND LET US ALL KNOW HOW THINGS GO FOR YOU IN JAIL LOL
Both the republican party and the democratic party are run by the same people. Buch was a puppet for big corporate intrests, now Obama is. As George Carlin would say ‘The Government Doesn’t Give A Fuck About You’
@ruppertknickerbocker You got a lot of nerve. Far as im concerned your generation has been here long enough to figure out the problems and fix them. Yeah i could see that reaganomics is the answer to all our problems! See reaganomics is part of the problem,and the solutions of the conservatives,to let the viscious cycle continue again. Im sick of all the conservative made recessions. The only real answer is to pull out the Theodore Roosevelt stop to kill the cycle!
@Athruebelief Bush Jr got a dot com busted economy from Clinton and it didn’t take him two years and the reason most people forgot it is that Bush Jr didn’t take two years and just cry about it.
I just have to say I am appalled at how conservatives today throw around words like socialism, communism, marxism, fascism, etc. etc., using them all interchangeably to mean anything they don’t like or anyone they disagree with. What this really shows me is that right wing talk radio doesn’t really inform or educate people, it only serves to make them more ignorant than they were before!
you guys are getting way to sucked into the fact that this all a giant reality tv show that the government’s been putting on for their people. it’s not about democrat or republic these people are criminals. our best course of action is to audit the federal reserve and stop these acts of high treason.
US midterm elections: Barack Obama’s world turned upside down as Democrats face electoral disaster
By abandoning his own rhetoric of bipartisanship, President Obama divided America and set the course for a heavy Democratic defeat in Tuesday’s midterm elections, argues Toby Harnden.
By Toby Harnden, American Way
Published: 2:00PM BST 30 Oct 2010
@meemoonses I just HATE when they do that, don’t you
@rbs651 yes I know, and yes I will, If you want just copy and paste it yourself….
we can hit them from all sides…lol
By ALAN FRAM
Associated Press
WASHINGTON (AP) – Democratic voters are closely divided over whether President Barack Obama should be challenged within the party for a second term in 2012, an Associated Press-Knowledge Networks Poll finds.
That glum assessment carries over into the nation at large, which is similarly divided over whether Obama should be a one-term president.
@meemoonses I wrote: “This will be fun” Call me a liar, I don’t care. I have NO intention of going through all this again. I’ve pretty much had it. I’ve been posting alternatives to Dem propaganda and only hope I’ve raised an eyebrow or two. The game is over. As some of you know, I’ve been vry active on the “11 Reasons..” thread and that’s enough for me. As the muslims continue to try and kill us, I wanna concentrate on that. Good luck to you all I’m taking this thread off my shortcuts.
@meltdown53
Post that everywhere you can! ‘They’ flagged it as spam!
A COMMUNIST posting here cry’s about his ‘civil rights’ yet HE THREATENED someone on another page if he met him face to face!?!?!?!? WHAT A FRAUD!
Also, 1st AMENDMENT TRUMPS BOGUS civil rights violation ‘claims’! MAN-UP WIMP!
The ISP has the truth! So, stop faking!
@meemoonses Wow this interesting…..Tea Party endorses the US Chamber of commerce. Glen Beck cuts a check to the chamber. Hmmm. (THE WHO “WE WON’T GET FOOLED AGAIN” blasting in the backround. LMAO
@meemoonses Dont beleive me just look it up on the chambers website. They even call illegal immigrants law abiding if their only crime was crossing the border. What a joke! If the conservatives really were on our side when it comes to illegal immigration they sure wouldn’t have taken the money for their campaigns.
@meemoonses I’ll give you one reason why the majority of illegals will get their amnesty other than just from the liberal side. The US chamber of commerce. They will lobby your conservative leaders to death with it when they get into office come november. Mark my words! They will also tell them to remember where the campaign contributions came to get those conservatives in office to seal the deal.
@meemoonses what did he lie about?