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
A delayed draw term loan is a type of loan in which the borrower can draw funds incrementally at different times during the drawdown period. This loan offers flexibility to borrowers, as they can choose when to access the funds.
The borrower is not required to use the entire loan amount upfront, unlike traditional term loans. Instead, they can draw
Financing a mobile or manufactured home community involves obtaining loans to purchase or improve the property. Lenders consider factors such as the park’s location, condition, and revenue potential. Government agencies may also provide assistance or financing options for these communities.
Lenders may offer various financing options, including traditional real estate loans, government-backed loans, or specialized mobile home park loans. The
Alternative business financing refers to funding options for businesses outside traditional bank loans. Non-bank lenders, such as online lenders, peer-to-peer lending platforms, and crowdfunding websites, typically offer these alternative financing options. These lenders provide access to capital for businesses that may not qualify for a bank loan due to factors like limited credit history, short time in business, or unconventional
In most cases, a business line of credit won’t directly impact your personal credit score. Most commercial lenders only report the business credit bureaus, such as Dun & Bradstreet or Experian Business.
That means business line of credit activity won’t appear on your consumer credit reports from the three major consumer credit bureaus: Experian, Equifax, and TransUnion. This is
When deciding between a revolving credit line and an installment loan, businesses must carefully consider their specific needs and financial situation to determine the right choice. Here are some factors to consider.
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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