Collateral refers to assets that a business owner pledges to secure a loan. Essentially, collateral acts as a safety net for the lender, ensuring they can recover their investment if the borrower defaults.
In the case of a secured business loan, the lender has the legal right to seize the pledged assets to recover the outstanding loan balance. Collateral
Buying an existing laundromat can be less costly and time-consuming than starting a new one from scratch. The purchase price can range from $18,000 to $3 million, depending on the location, size, and profitability of the business. While purchasing a laundromat requires a significant investment, it often saves you the time and expense associated with building a new facility.
Acquiring
Inventory financing is a specialized type of small business loan that helps business owners purchase essential inventory for their operations. It’s a form of asset-based lending (ABL) in which the inventory acts as collateral, reducing the risk for lenders. Inventory financing can also refer to using current inventory as collateral for business funding for other operations, such as working capital
Commercial loan interest rates fluctuate due to various factors, including economic conditions and shifts in the federal funds rate. Over the past several months, the commercial mortgage market has experienced some volatility as the Federal Reserve has adjusted the interest rate to control inflation.
As of January 10, 2025, the average interest rate for a 5-year commercial mortgage loan is
Some lenders offer business loans with EIN only, meaning they evaluate the business’s credit history rather than the owner’s personal credit. This approach benefits business owners who want to separate personal and business finances or have less-than-perfect personal credit. While not all lenders provide this option, alternative business financing providers and online lenders may consider applications based solely on business
The US Small Business Association enables some lenders to offer SBA loans, considered the gold standard of small business financing. While most SBA loans are designed for established businesses, SBA Microloans are intended explicitly for startups and new business owners.
The SBA microloan could be a valuable option if you’re an aspiring entrepreneur or a new business owner and need
Small business owners have many loan options to support their company, but the coveted SBA loans are the most advantageous financing arrangements. Backed by the Small Business Administration, these loans provide large borrowing amounts at the most favorable rates and terms.
However, the qualification process is the biggest challenge and mystery surrounding the loan program. Many potential borrowers struggle to
Sometimes businesses technically have the revenue to cover expenses, but it’s tied up in accounts receivable. Unpaid invoices are almost like unsold inventory – the value is in the asset rather than liquid capital you can spend on the business. And just like unsold inventory, the longer it goes, the less profitable it becomes, as you still have daily expenses.
SBA loans refer to several programs administered and backed by the Small Business Administration. With the backing of a government agency, these loan programs usually offer the highest loan amounts, lowest interest rates, and longest repayment terms.
However, securing a loan through the SBA requires working with an approved third-party lender. Each lender has different requirements and may only offer
One small business financing option for companies that don’t have established credit is invoice factoring, also known as accounts receivable factoring. When you factor your invoices, you sell them in exchange for upfront cash and don’t incur additional debt.
Plenty of companies will work with your business to factor your invoices. Finding the right one is a challenge, though.
Fraud Disclosure:
Please be aware that individuals have been fraudulently misrepresenting to business owners (and others) that United Capital Source, Inc. (“UCS”) can assist small businesses in receiving government grants and other forgivable business loans, when in fact those grants or loans do not exist or are not available. These individuals have ulterior motives and are engaging in the unauthorized use of the names, trademarks, domain names, and logos of UCS in an attempt to commit fraud upon unsuspecting small business owners.
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