Business Loans

Unless you’ve been in the industry for a while, or you happen to have a lot of experience in taking out loans, it can be very intimidating to know how to choose the right one. Fortunately, there are loan brokers who are there to help get you the right loan with the best rate and most fitting terms for your situation. However, not all loan brokers are equal when it comes to their knowledge and success rates. So how can you know which loan broker to go with? Here are 3 criteria to consider when choosing your loan broker.

Their Experience and Track Record

You wouldn’t want to have surgeon performed by a doctor who has only had his title for a few days, would you? The same should go for the person you trust to get you the best small business loan for your company. You should look into the loan broker’s past, including his education and previous work experience, to see just how much experience he or she has had in their position. Also, you’ll want to check their credentials and make sure that they are legally working in your state, as each state has different levels of requirements in order to broker loans.

Their Payment Model

Of course, you will have to pay for the services of a loan broker, but not all brokers charge the same amount of money in the same way. For example, just like with a loan itself, you might have to pay the broker up front, before any work is started on your behalf. This could mean a no refund policy, even if he or she does not successfully obtain the loan for you. Others will charge their fee only after you’ve signed for the money.

Their Relationship With Lenders

Just because you’ve paid a loan broker to act on your behalf, does not mean that you are his only client. In fact, there is a good chance that your broker is also working for certain specific lenders, which he or she may favor and therefore direct you toward, even if the lender is not the best loan for you. Try to double-check that your loan broker is acting in your best interest, and not in the interest of a big-time lender who will probably give him or her a cut of the money when he gets a signature from you.

Getting a loan can seem scary, but with a trustworthy loan broker, your life will be a lot easier. Just make sure to do your research first, so you don’t find yourself signing for a bad deal.

Ready to take the first step to reaching your financial goals? Click here for a FREE quote from Onebox Funding, and find the best loan with the lowest rates, today!

Nobody wants to find themselves in a situation where they owe more money than they can pay. Being in debt is no laughing matter, and it doesn’t ever feel good. But what if we told you that going into debt can actually make you a profit in the long run. Of course, this is not the case with every kind of debt, but if you are a business owner falling on some hard times, taking out a small business loan (therefore, going into debt) could be the answer to increasing your revenue and reaching all of your financial goals. Here are three ways that getting yourself into some (reasonable) debt can actually grow your business and have you earning more money than ever before

1. Equipment Financing

If your business is failing, it might well be because you don’t have the latest, most updated equipment, appliance, or technology needed to keep up with the competition. Of course, if you have little to no cash flow coming in, you probably cannot afford to buy that new industrial-sized pizza oven or restock your building material inventory. But, if that new piece of equipment will mean the difference between a failing business and a flourishing one, it’s a good idea to take out a loan for equipment financing, spend the money on whatever new tools you need, and then start running your company more efficiently. With the money you’ll make, you can pay back the debt in no time, and you’ll find yourself in the black from now on.

2. Debt Consolidation

When you’re already in debt, the last thing you want to do is take out more money. However, sometimes in order to pay off your debt in the quickest, most efficient way, you need to take out even more of it. A debt consolidation loan is basically a lump sum of money that can be used to pay off each of the debts you already have. Why take out more debt to pay your current ones? Well, if you have multiple loans with varying interest rates, payment terms, and due dates, it is much more difficult to keep track of everything and to keep yourself from becoming overwhelmed. Instead, you can take out a debt consolidation loan, pay off your multiple lenders, and then only have to worry about one payment with one interest fee.

3. Merchant Cash Advance

Ever head the phrase “you need to spend money to make money”? Well, this is very true in many cases, and that’s where a Merchant Cash Advance comes in. Maybe you don’t need to purchase a solid piece of equipment, but you do need working capital, on-hand, in order to get things moving with your company. Having this cash, up-front, can take the burden off of trying to earn the money in order to do what your business needs. You take care of the beginning payments and let your company pay for itself.

Ready to start reaching your business goals? Check out Onebox Funding for a FREE quote, today!

You’ve completed the application, filled out all of the paperwork, and were finally accepted for the small business loan you need to grow your company. Although you’ve done all of the hard work, there are still a few things to be done before the day the loan money will be deposited into your account. Here are the 3 steps to take before funding day, so the process goes as smoothly as possible, and you can get back to focussing on reaching your business goals.

1. Make Sure Your Online Banking Is All In Order

The days of hand-to-hand cash transactions are long gone. Most, if not all, official loan payments are sent via the internet, so it’s imperative that you have your account all set up and working flawlessly for the transaction to go through. When applying for the loan, you must provide the lender with a year’s worth of bank statements, so that they can determine what your revenue flow looks like, so they can tell how long it will take for them to be paid back. While you may have provided these documents, the lender will most likely want to check and see if they have been forged or manipulated. An online baking account will ensure the lender that nothing fraudulent has happened and that the statements are completely true.

2. Make sure Your Account is In The Black

When the day finally comes that the money will be transferred, you’ll want to have a positive balance in your account, even if it’s not a huge amount. With most accounts, if you are in the negative, and money comes in, it is automatically used to cover your deficits. If that loan money was intended for a different purpose (for example, to grow your business and pay off your deficits with the revenue), you will instantly lose a chunk of it to cover your previous debts.

3. Be Available For a Call From the Lender

It is common practice that, on the day you get your funds, the lender will call you to confirm the last minute details. You should, to the best of your ability, make yourself available for a 15-30 minute call to make sure that the lender has your bank and business details. He will want to confirm that he is sending the money to the right account and that he has the correct information regarding your business and the intended purpose of the funds.

Ready to start reaching your business goals? Check out Onebox Funding for a FREE quote, today!

Many business owners decide, at some point, that taking out a loan to help finance their company is imperative for their growth and success. However, like any application for a loan, a position, or otherwise, it is not guaranteed that your request will be approved. Here are three reasons your small business loan application might be denied.

1. Insufficient Funds

Unlike a gift or a scholarship, a loan that’s given by a lender is rented, and must be paid back in full according to payment terms agreed upon by the two parties involved. Because the lender will want to know that he is guaranteed to be paid back in the determined amount of time (and paid the extra interest attached to the loan), he will need to make sure that the lendee has the funds for it. Of course, if someone is borrowing money, it’s because they do not have the full amount available to them for immediate use. However, someone asking to borrow a large sum who has no money at all, to begin with, is a red flag for any lender. Make sure that your account has a sufficient amount of money to prove to the lender that you are not in the red, and need his moeny for the purpose of trying to climb out of it.

2. Declining Revenue Month-to-Month

One of the first things a lender checks before granting small business owners a loan is their past year’s bank statements. This gives them an general idea of the ebbs and flows of cash flow, by month. Most business will see ups and downs during different times of the year, that’s very typical. However, if a lender sees that each month a business owner’s revenue has continually declined, this is a sign that the business might be failing. If the business fails and there is no more cash flow, the chances of the lender being paid back become slimmer and slimmer. Before applying for a small business loan, check a year’s worth of bank statements and make sure that they show regular inclines and declines in revenue.

3. Debt-to-Income Ratio is Higher Than 50%

It’s okay for a business to have some debts to pay off, whether it be from previous loans, order backlogs, or payment returns. However, there is a limit to how much debt a business can be in, in comparison to the revenue it earns. If the ratio is higher than 50%, meaning that the company’s debt is higher than the money coming in, it becomes a serious red flag for any lender. It’s simple math; if you owe more money than you make, and you want to borrow even more of it, the chances of you paying it back are quite low.

Ready to apply for a small business loan to grow your company? Click here for a FREE quote from Onebox funding for the best rates.

So, for whatever reason, you’ve decided to apply for a small business loan. Maybe you want to expand your business and you need immediate working capital. Or maybe you need to update your appliances or bulk up your inventory and would like to apply for equipment financing. Whatever your business need may be, one of the many types of small business loans could be the answer to meeting your financial goals.

However, unless you are an expert in the loan business, choosing the right type of small business loan for you can prove intimidating, as there are many types with varying payment terms. That’s where brokers can be a huge help in making sure you’ve made the right choice when it comes to financing your business. Here are three reasons why you should use a broker when choosing your small business loan.

1. A Broker is Familiar With The Loan Options Available

As we’d mentioned before, there are several different types of business loans, each for different needs. However, the one that fits your needs best may not be clear at first. A loan broker knows about each type of loan, what purpose it serves, what the interest rates typically look like, and how the payment terms are set up. A broker can help guide you to the right one by looking at all the different aspects that go into each loan and find the one that fits you best, from all angles.

2. A Broker Can Help You With Your Interest Rate

If you find a good loan broker, it is likely that he or she has a wide network of connections in the loan industry. Even if you’ve done your research, you might not be getting the lowest possible interest rate simply because you don’t know about every option you have available. Be sure to use your broker’s network to the fullest, so you can have the best payment terms possible.

3. A Broker Has Excellent Connections In The Industry

As we mentioned before, a good broker probably has an even better network of connections within the loan industry. Although it’s not guaranteed, often times brokers are able to get their clients exclusive deals (lower interest rates, easier payment terms, etc.) if they opt for one of the lenders in his or her network. Though this might not work every time, it’s always good to go with someone who knows the business, as they often have their own little perks that you could benefit from too.

Ready to get started growing your business and begin meeting your financial goals? Click here for a free quote and let Onebox Funding’s excellent connections and knowledge guide you, today.

Unless you’ve been in the industry for a while, or you happen to have a lot of experience in taking out loans, it can be very intimidating to know how to choose the right one. Fortunately, there are loan brokers who are there to help get you the right loan with the best rate and most fitting terms for your situation. However, not all loan brokers are equal when it comes to their knowledge and success rates. So how can you know which loan broker to go with? Here are 3 criteria to consider when choosing your loan broker.

1. Their Experience and Track Record

You wouldn’t want to have surgeon performed by a doctor who has only had his title for a few days, would you? The same should go for the person you trust to get you the best small business loan for your company. You should look into the loan broker’s past, including his education and previous work experience, to see just how much experience he or she has had in their position. Also, you’ll want to check their credentials and make sure that they are legally working in your state, as each state has different levels of requirements in order to broker loans.

  2. Their Payment Model

Of course, you will have to pay for the services of a loan broker, but not all brokers charge the same amount of money in the same way. For example, just like with a loan itself, you might have to pay the broker up front, before any work is started on your behalf. This could mean a no refund policy, even if he or she does not successfully obtain the loan for you. Others will charge their fee only after you’ve signed for the money.

3. Their Relationship With Lenders

Just because you’ve paid a loan broker to act on your behalf, does not mean that you are his only client. In fact, there is a good chance that your broker is also working for certain specific lenders, which he or she may favor and therefore direct you toward, even if the lender is not the best loan for you. Try to double-check that your loan broker is acting in your best interest, and not in the interest of a big-time lender who will probably give him or her a cut of the money when he gets a signature from you.

Getting a loan can seem scary, but with a trustworthy loan broker, your life will be a lot easier. Just make sure to do your research first, so you don’t find yourself signing for a bad deal.

Ready to take the first step to reaching your financial goals? Click here for a FREE quote from Onebox Funding, and find the best loan with the lowest rates, today!

Everyone makes mistakes, but when you’re a business owner you want to keep them to a minimum, especially when it comes to your money. Even successful business owners have made some financial mistakes in the past, but it’s important to learn quickly from them and adjust your strategy to optimize your revenue. Here are 3 big mistakes small business owners make when it comes to budgeting that you should avoid at all costs.

1. Underestimating Your Expenses

It’s easy to see a nice cash flow and feel good about the status of your company, but before you start spending your hard-earned money, you need to make sure that you have made realistic projections about your costs. Often times, businesses do not prepare for the full amount of their daily, weekly, and monthly expenses, which leaves them bare when payday comes due. Not only should businesses be saving their money to cover all costs, but they should be budgeting for any changes that may come about in cost of rent, broken or out-of-date equipment, unexpected travel, or increased labor, to name a few.

 2. Hiring the Wrong Employees

It may be tempting to go with the first or second potential employee who walks in your door, especially if you are trying to grow in the shortest amount of time possible. However, not taking your time with the hiring process would be a huge and costly mistake. Firstly, you will need to take time out of your own or your current employees’ day to train new recruits (which could take months, depending on the industry you are in), so you need to make sure the use of time is worthwhile. And imagine if the employee isn’t qualified, didn’t understand the requirements of the position, or causes problems with the culture of your company. You’ve just spent time and money on someone who turned out to be a dud. Make sure to conduct multiple interviews, speak to references, and do your research on that person before giving the final yes to take him or her on as a new employee.

3. Plan According for Tax Season

In the United States, businesses pay a pretty heavy federal, state, and local tax. If you are not very accurate in estimating the amount of taxes your business is required to pay, you will find yourself with a rather large discrepancy in your budget. Make sure to look over your previous year’s tax records when you plan for the current year’s budget. And remember, it is better to overestimate how much you will owe in taxes and have some extra working capital leftover than to underestimate and find yourself in the red.

Want to learn more about taking out a small business loan to grow your company? Find out more with Onebox Funding here.

The need for money is not a new concept. Studying, starting a business, purchasing a home, or even paying off existing loans often requires large sums of cash that a person may not have on-hand. There are many types of loans available, and each one serves a unique purpose and has its own type of payments terms that go along with it.

Knowing which type of loan to take out that fits your needs best is very important when it comes to making sure you get what you need out of it and that you’ll be able to pay it back. Today, we’ll look at two different loans that can be deceivingly similar, and see which one is best for your needs: Personal Loans and Business Loans.

Personal Loans VS Business Loans

When you look closely at these two types of loans, you’ll see that the basic premise of each is the same. Both will give you a certain amount of money with an interest rate and payment terms attached to it. The rate of interest and the amount of time given to pay it back depends on each individual lender; there is no fixed rate and time for personal or business loans as a whole. That being said, there are two main differences between these two types of loans: eligibility requirements and uses of the money.

Requirements

To borrow any loan from any lender requires certain checks into your personal details for the lender to ensure that he or she will get his money back in a prompt manner. Business loan lenders will often look at your business’s credit score, a year’s worth of bank statements showing record of your company’s sales, your company’s time in business, the industry, and the past year’s taxes. For a personal loan, the lender will evaluate the risk of lending you money via your personal income and your own credit history.

Uses for The Loan

Of course, the lender will also want to know why you need their money and what you want to use it for. For a small business loan, you’ll want to have a purpose for the loan money at the ready, whether it be to purchase new equipment (you’ll want to look into Equipment Financing), to pad your payroll for slower months, or to open up a new branch. Personal loans should be used for things not related to business but more to your own personal life such as helping with medical bills, making home improvements, or paying off car payments.

How to Choose

Basically, you’ll want to make a clear separation between business matters and those of your personal life. Once you have an understanding of what type of payment you’ll need the money for, you should have an easier time choosing which type of loan to go for.

Interested in a business loan for your company? Find out more information with Onebox Funding here.

There are many different types of loans a person can take out, from many different types of lenders. For example, a college student can take a student loan from the government, from a private lender, or from the bank, whereas a new homeowner can take a mortgage out from a whole handful of different providers. Each type of loan and lender has very different payment terms, interest rates, and requirements for eligibility.

Taking out a loan for your business is no different. There are so many different types of business loans, it can be intimidating to know if you’re choosing the right one. In this series, we will talk about the 5 main loans you can take out for your business. Today we will cover one of the most attractive loans taken out by business owners: Debt Consolidation.

What Is Debt Consolidation?

Taking a loan for the purpose of Debt Consolidation is a move made by many businesses. Often times, business owners must take out multiple loans over the course of many milestones throughout their business’s life. Because they have not taken these loans out all at once, they often come from different lenders and come with different interest rates and payment terms. Taking out a loan for Debt Consolidation entails taking out a loan for the sum of all of your multiple loans, combined, using it to pay them all off, and then continue paying off this one, individual loan to one specific lender.

Who is Debt Consolidation Best For?

Debt Consolidation is a great move for business owners who find themselves with debt coming from multiple loans, especially those with high interest rates and tough payment terms (i.e. not enough time, payments are too frequent, etc.). Even if the payment terms are alright, it can be helpful to condense everything into one single monthly payment that goes to one place, instead of having to keep track of each due date and each location to sent the money to.

The Benefits of Debt Consolidation

Debt Consolidation has the benefit of taking all of your different loans, no matter what they were taken out for, and condensing them all into one place. This means you only have to worry about one single payment with one fixed interest rate that goes to one place. Consolidating your debt into one loan gives you peace of mind by making everything a lot more organized.

The Cons of Debt Consolidation

If you have multiple loans with low interest rates, consolidating them might not be in your best interest, as there is a chance of the new loan’s rate being higher, therefore you end up paying more money in the long run. Always check to make sure you are paying off and combining loans by taking a Debt Consolidation loan with a better rate.

Does it sound like Debt Consolidation is the right type of loan for your business? Find out more with One Box Funding here.

There are many different types of loans a person can take out, from many different types of lenders. For example, a college student can take a student loan from the government, from a private lender, or from the bank, whereas a new homeowner can take a mortgage out from a whole handful of different providers. Each type of loan and lender has very different payment terms, interest rates, and requirements for eligibility.

Taking out a loan for your business is no different. There are so many different types of business loans, it can be intimidating to know if you’re choosing the right one. In this series, we will talk about the 5 main loans you can take out for your business. Today we will cover one of the most attractive loans taken out by business owners: Equipment Financing.

What Is Equipment Financing?

Equipment financing is a specific loan business owners can take out in order to finance a new piece of equipment, tool, appliance, inventory, etc., to further grow and/or enhance their business. Most businesses, especially those which are considered to be brick-and-mortar, must make rather large purchases of equipment in order to get started on making sales. This type of loan is provided by the usual bank lenders, as well as by private financial institutions. The terms work as most loans do, with a decided upon interest rate, and a set amount of time to pay it back.

Who is Equipment Financing Best For?

This type of loan is great for new businesses and businesses that are growing or expanding into new areas. No matter the size of the entity, there is always some sort of purchase of physical or technological equipment that needs to be made in order for that business to function. Often times, especially if the business is brand new, business owners do not have the working capital to make these huge purchases, and could greatly benefit from a loan that specifically finances their new equipment. No matter the type of company, Equipment Financing can get business owners the money they need to make the big purchase, so they can start making a profit.

The Benefits of Equipment Financing

The benefit of Equipment Financing is that the payment terms are very standard and predictable. Also, the equipment itself serves as nice collateral, so there is no need to put up your own personal assets as such. Plus, having this type of loan can help new businesses build their credit scores in a relatively standard way.

The Cons of Equipment Financing

The biggest con when it comes to Equipment Financing is that your equipment may become outdated before you get a chance to pay it off, requiring you to purchase updated equipment as you continue to pay for the old pieces. Also, some lenders may require higher interest rates or a good credit score to be eligible, but this is totally dependant on each specific lender.

Does it sound like Equipment Financing is the right type of loan for your business? Find out more with One Box Funding here.