Friday, 23 Aug 2019

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Category: Loans
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How to Get Financial Aid for Small Businesses

Small business owners know that there are times when their business can run smoothly, and there are also times when they need to struggle hard. They sometimes can make a smart decision and come up with a brilliant strategy. However, what they also need to know is that such external forces that play a significant role in the business are often beyond their control. In short, no matter what they do, the company can still struggle, especially when competition is fierce. Aspects, like recessions and increasing production costs, are the examples.

At this point, a company owner needs external help in the form of a cash injection to stay afloat. One reason is that it offers an instant solution for those struggling to save their business. Often, a company no longer has the capital to continue the production flow while there are debts to pay. This condition can lead to bankruptcy if the owner does not make a smart move. Thus, getting financial aid is what they can do. Fortunately, options are available for them. What they need to do is to be as resourceful as possible to prepare things before applying for financial help.

stacks of dollar bills

Creating a Business Profile

Similar to a business plan, a business profile is also crucial in every finance-related decision. It should include the main business that a company does, their source of income, the commodities, their targeted market, and their expected profit. All these aspects are vital whenever one needs to apply for a loan. Agencies, such as pikalaina, will look into these documents to determine whether or not they want to help. As they are also a form of profit-oriented business, they need to be assured that their financial help is prospective in the long run. Thus, preparing this document is vital as an early step.

External Advice

Sometimes, internal advice is not professional enough to assess the business profile created, and they need a third party’s eyes to give them expert advice. Luckily, Small Business Administration can send their representative on demand to help those who need to get the fund immediately. They will help the company by reviewing the profile and business plan.

The Collateral

In many cases, applying for a business loan means pledging assets as collateral to get the cash injection. For this reason, one needs to review the terms and conditions before signing the contract. It is also advisable to be very specific about what you have to offer. Inquiring more about the interest rates will also help you in the long run.…

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merchant cash advance

Why You Should Opt For a Merchant Cash Advance

Strict loan repayment procedures are some of the things that make many distance themselves from the traditional bank loans. Many are required to start paying back immediately they receive their money. This strictness level is what leaves many skeptical when it comes to applying for traditional bank loans. At times, revenue may trickle in slowly in one’s business.

Paying back such loans when you don’t have that regular flow of income can be very challenging. One option most businesspersons can try is applying for a merchant cash advance. Commonly referred to as the MCA, it is an advance which is payable on the credit sales of a specific enterprise. It is the right type of funding option for small businesses that want to increase their revenue within a set period.

In this funding option, the advance provider will first agree on the amount with the businessperson, the amount to be paid back and also the holdback percentage. It is after the agreement that the amount is transferred to the account of the business person in exchange for credit card receipts and a set rate of what is considered as receivables.

Some bit of the amount made within a specific day isapplying for a cash advance withheld to pay the cash advance lender as agreed. This will continue until one finishes paying their advance. The more the transactions, the faster the repayment. There are several reasons why business owners should opt for this type of funding option. They include:

 

Bad Credit Does Not Matter

Bad credit is not an issue when borrowing a merchant cash advance. It is a different case in traditional bank loans where a good credit score is one of the top considerations for one to become eligible. The things that are considered in merchant cash advances include personal and business credit scores.

No Collaterals

You will not be required to present collaterals which is the case in traditional business loans. They can be in the form of assets or some of the valuable things you own. They can be seized if you default your loan. This can be difficult for small business persons who may lack any collateral to present. Cash advances have other legal options for recovering their money and do not need any guarantees.

Easy Repayment

The repayment process can be complicated for most businessagreement person in traditional loans. Merchant cash advances have an easy repayment process that suits your flow of cash. Money is usually deducted from your account depending on your credit sales.…

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