Business Loans

April 8, 2019
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In almost every business, new or old, you can hit roadblocks when it comes to cash flow. Maybe you’ve had a bad month, or maybe you are scaling and you don’t have the working capital on-hand when you need it. Whatever the reason may be, it’s important to have enough funds to keep your business afloat as you work. Taking out a small business loan can be a great way to get the money you need. Here are five signs that your business could be the perfect candidate for a loan.

  1. Your daily ending balances are low.

If you are looking at your balance at the end of the day, and it’s barely breaking even, you might be in need of a small business loan. Especially in the beginning of making a business, or in a period of growth, it’s important to have funds on-hand in case you need to make any quick changes or purchases.

  1. You have more than 8 negative days in a month

Forget about breaking even, what if you are consistently in the red. If you find that you are in the negative for more than 8 days out of the month, you could be looking at trouble in the near future. More than 8 days of ending up in the negatives, makes you a good candidate for taking out a business loan, to help get yourself back on track.

  1. You need cash flow for a new contract

You shouldn’t let a lack of funds get in the way of growing your business. It would be a shame to pass up a new business relationship just because you don’t have the cash to make it happen. If you’ve managed to get yourself a new contract, taking out a business loan for some fast-cash is a fantastic way to make sure you don’t miss an opportunity.

  1. You need new equipment

Just like you shouldn’t let a potential new business relationship slip away for lack of funds, you shouldn’t miss out on a new project because you can’t afford the equipment. A loan for equipment financing can get you the materials, tools, or technology you need to feel comfortable taking your business to the next step.

  1. You don’t have enough money left for payroll

If your business is making you money, but you don’t have enough left over to pay the people who are helping you to make it happen, you’re in a bad situation. Paying your employees the full amount that they deserve is absolutely vital in making sure your business continues to run smoothly and successfully. Taking out a business loan will pad your funds so you make sure your employees aren’t feeling under-compensated.

Ready to apply for your business loan? Check out Onebox Funding here for a free quote.


April 4, 2019
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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: Small Business Administration Loan.

What Is a Small Business Administration Loan?

This type of loan is actually backed by a branch of the US government called the Small Business Administration (SBA), whose function is to facilitate loans taken out by small businesses. Although these loans are backed by a Federal organization, they are not provided directly by the government. Instead, private financial institutions are the lenders, and the loans are partially insured by this governmental branch. There are a variety of types of SBA loans, ranging in size for small businesses to larger firms. For the most part, these loans can be taken out by business owners with at least a 20% stake in their companies, and are typically provided by large financial institutions, as opposed to smaller lenders.

Who is a Small Business Administration Loan Best For?

This type of loan is very sought after, as the payment terms are quite attractive to any business owner. This type of loan is great for business owners with companies that have already been up, running, and profitable for some time, who need a cash boost. These lendees should have a good credit score, and bank statements to show that they have a steady revenue stream.

The Benefits of a Small Business Administration Loan

The SBA Loan is probably the most attractive type of loan for small businesses because it has flexible payment terms and very low rates. Once a business owner is approved, he will have very low fees, and will even have the option to stretch the payment terms over up to 25 years. Also, because the government is backing part of the loan, banks are much more willing to underwrite it for eligible parties.

The Cons of a Small Business Administration Loan

Because this loan is so attractive, the application process is not as simple as that of other loan types. Potential lendees must provide a lot of documentation, including proof of a good credit score and steady revenue flow, which can take time. Personal collateral is required for an SBA loan, which could but your property at risk. Also, this loan is not applicable for new businesses whatsoever.

Does an SBA Loan sound like the right type of loan for you? Get more information here.


April 1, 2019
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The majority of businesses experience, at least to some extent, an ebb and flow of successful, booming sales and a slow season. While this is perfectly normal, as supply and demand are constantly changing, the slower periods can be hard. Although your sales are going up and down as the seasons change, those few months of dry-spell can be challenging when utilities and payroll and other expenses, which pretty much remain a constant.

Seasonal business who experience difficulty during times of slower business can benefit greatly from applying for a small business loan. Taking a loan, even a small one, assures that your business has the funds it needs to make it through the slow period until your sales start to rise again. Any seasonal business owner who wants to apply for a small business loan must first complete these 3 steps to assure their loan approval.

1. Submit 12 Months of Bank Statements

If your business is even remotely seasonal, your paystubs throughout the year most likely vary greatly from month to month. Be sure to have at least one full year’s worth of bank statements available to that lender can understand the full picture of what your sales look like, and not just during certain periods of success or slowness.

2. Prepare an Accounts Receivable Report

If your business allows customers to pay with a credit card (which is practically a given in this day and age), you’ll need to have an Accounts Receivable Aging Report prepared to show the lender all of the sales that you may not have received yet in full, if at all. This will give the lender a good idea of what revenue is still yet to come, as well as an understanding of your customers’ payment behavior.

3. Submit Your Most Recent Tax Return

At the end of the day, business loan lenders want to make sure that they will be paid back within a reasonable amount of time. Your most recent tax return is probably the most important thing a lender will want to see before determining if you qualify for receiving business funding from them. They will be looking into your credit history to see if you have bad credit, big losses, or other activity that they might deem a red flag.

Taking out a small business loan during times of slower sales can be a great move for all sorts of business owners. Having working capital on-hand for any situation that comes up gives you peace of mind and a clear head to be able to use your time optimally and efficiently.

Ready to apply for your business loan? Check out Onebox Funding here for a free quote.


March 28, 2019
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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: Short Term Loan.

What Is a Short Term Loan?

A Short Term Loan is just like any typical loan, except for the fact that it must be paid back within a year a less. As with a medium or longterm loan, the decided upon lump sum of money is given upfront to the lendee, and the payment terms are set up upon signing. An interest fee is paid along with the principal balance throughout the period of one year, until the money is all paid back. This is typically done on a weekly basis, as opposed to bi-weekly or monthly.

Who is a Short Term Loan Best For?

A Short Term Loan is excellent for business owners who may not qualify for a line of credit, and who simply need a boost of working capital. This type of loan is great for people who find themselves in urgent need of cash, in as little time possible.

The Benefits of a Short Term Loan

One of the great things about the Short Term Loan is that the majority of applicants will find themselves eligible for it. Often times, even lendees with a very low credit score have the opportunity to take out this type of loan, and with a very quick and easy application process, they will find themselves with cash in hand in no time.

The Cons of a Short Term Loan

Of course, because of the lax eligibility requirements and easy application process, it can be expected that the interest rates will be higher than other types of loans. In fact, Short Term Loans have some of the highest fees of any type of business loan available. Going along with that, the payment terms for Short Term Loans are typically weekly, and certain business might find this difficult to keep up with, especially those whose revenues vary greatly week to week or month to month.

Does a Short Term Loan sound like the right type of loan for you? Get more information here.


March 25, 2019
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It happens before you can even understand what’s going on. You’ve taken a small business loan here and borrowed some more money there. Pretty soon, you’ve got debt coming at you from all angles. Not only do you owe money to multiple lenders, but each debt comes with its own interest rate and payment terms. When you have multiple due dates for radically different payments, things can get out of control, fast. But all hope is not lost, as there is a great way to get all of your business’s debt under control; this solution is known as debt consolidation.

Debt consolidation, in summary, is a way to take all of your separate loans from separate lenders and combine them into one payment. This single payment will have only one interest rate, and one set of payment terms. There are a number of reasons why debt consolidation can make getting out of debt easier.

Firstly, if you have many different small business loans you’ve taken out over the years, you are probably adhering to the terms of each lender, individually. So, if one loan has a payment due on the 15th of the month, and another one is due 10 days later, you’ll find that making payments takes up a good deal of your time. You might also find that one of the loans must be paid within five years, and another one only gives you a year. Keeping track of all of these separate terms is both stressful and time-consuming. When you consolidate your debt, you can make a one-time monthly payment that you set up with one lender, and then get back to your business.

Along with the multiple loan terms, you most likely have multiple interest rates. While some lenders might have a reasonable rate, many do not. If your loan with the lower interest rate needs you to pay it off in a shorter amount of time, and one with the higher rate gives you a little more leeway, you’ll actually end up paying more money in the long run, because your money ends up trying to keep up with the loan you have less time for, instead of trying to bring down the higher interest that’s ever-accumulating.

It’s important to understand that debt consolidation does not reduce your debt. However, it definitely does help you to pay it off in a much more doable way, to one single lender with one interest rate. Also, although your principal balance stays the same, you most likely will end up paying less money in the long term, when you look at the potential reduction of interest rates.

If you’re ready to start paying off your debt in a financially smart way, check out Onebox funding’s debt consolidation program and see if it is right for you and your business. Don’t let debt drag you down, take care of it today and get back to making your business great.


March 21, 2019
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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: Merchant Cash Advance.

What Is a Merchant Cash Advance?

A Merchant Cash Advance is technically not considered to be a loan. Essentially a lump sum of cash that’s given immediately over to the lendee, in exchange for a promise of a cut of future daily credit/debit card sales, plus a fee decided upon by the lender.

Who is a Merchant Cash Advance Best For?

Although this is not a necessary criterion, businesses that make the majority of their revenue from credit or debit card sales are the best candidates for this type of loan. Retail stores and restaurants, for example, can expect that many of their customers will pay with credit.

The Benefits of a Merchant Cash Advance

One of the most attractive things about a Merchant Cash Advance is the speed. After a relatively quick application process, where you will need to present documents such as your driver’s license, bank statements, credit score (even low scores are usually accepted), and tax returns, you will immediately reap the benefits of a lump of cash, in hand. Another advantage is that, during your slower months, you will pay less money back to the lender, as they take a percentage of your credit sales each day. If you make less, you pay less. Also, a Merchant Cash Advance does not require collateral, so you do not need to put up your house, car, or equipment in order to get your funds.

The Cons of a Merchant Cash Advance

While it’s always a good thing to make a lot of revenue that month, you will end up paying more back to the cash advance, as they have taken a set percentage of your daily credit/debit card sales. Also, since there is no interest and rather a fixed rate of your daily credit card sales, there is no advantage to paying off your Merchant Cash Advance early. As with a regular loan that accrues interest, there will be no benefit to you if you pay it off earlier rather than over the entire term.

Does a Merchant Cash Advance sound like the right type of loan for you? Get more information here.


March 11, 2019

Taking out a small business loan is an excellent idea for new business owners who don’t have the cash on hand to their new company up and running, or to take it to the next level. With so many options of how to use your new funds efficiently, it might seem intimidating to choose the best use for your business. Here are the main uses of small business loans, and how they can help benefit you in your new business.

1. Equipment Financing

Almost every new business needs some sort of equipment, technology, or system put in place in order for it to get off the ground and start running. Whether you need a big brick oven for your pizza shop, a VOiP system for your call center, or even a new laptop to start your freelance writing career, you need cash to purchase these items. It’s no secret that a brand new 4×4 to carry all of your materials or a few tons of wood to begin your construction business will cost you a pretty penny. A loan for equipment financing gives you the money right there to buy the items needed to actually do your business.

2. Merchant Cash Advance

A merchant cash advance is not exactly a small business loan, but it does give you an advance of money that business owners can use for whatever business expenses they may run into. Like a loan, a lender will advance you the amount of funds you’ve requested, as a cash advance, however, the application and payment processes work a bit differently. There is no collateral needed to get an MCA, no matter your credit score. Also, the cash advance is paid back daily to the lender, as a percentage of your business’s daily sales, along with a fee.

3. Debt Consolidation

Maybe this isn’t your first go at starting up a new business, or maybe you’re being dragged down by loans from other business endeavors you’ve embarked on. Whatever the reason may be, many new business owners find themselves hesitant to try their projects again or to start something completely new because they are already weighed down by past loans they’ve taken out from different lenders. Most likely, these other loans have their own individual interest rates and fees, and the costs can get out of hand, quickly. Luckily, a small business loan for the purpose of debt consolidation is a great way to get all of your affairs organized. With this money, you can pay off all of your other loans, and then have only one to worry about, with one interest rate and one term of payment to one single lender.

Whatever your reason may be, taking a small business loan is a great way to get the cash you need, fast. Don’t let a lack of funds get in your way of creating your dream company. Take advantage of a small business loan today.

Ready to take your business to the next level? Find out more about the right small business loan for you with Onebox Funding, here.


March 7, 2019
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Every new business endeavor you want to embark on needs money to get it started. Unless you happen to be sitting on a large pile of cash, you’re going to need a way to get your hands on some working capital, long before you begin profiting from your sales. More often than not, new business owners opt for taking out a small business loan to get those first few thousands of dollars needed to get their businesses up and running.

While it’s relatively easy to take out a small business loan, there are a lot of terms and phrases that are part of loan jargon which might be new, and a bit confusing, for new business owners. But before you become too intimidated by the new language, we’ve picked up a handful of some terminology that you may find confusing and explained them in more simple and easy-to-understand terms.

Payment Terms

The payment term of your loan is kind of like a rental agreement on an apartment, or the terms of service when you enter into a contract with someone. Just like the agreement you make with your landlord about how much to pay, when to pay it, and what happens if something goes wrong, the payment terms on your loan determine everything you need to know about it. These terms will tell you what type of interest rate you’ll have (we’ll get to this later), how high the interest rate will be, what your minimum payment will be (weekly, monthly, annually, etc.), and how long you have to pay off your loan in full.

Variably VS. Fixed Interest Rate

Unless you’ve borrowed money from a dear friend, most likely the institution lending you funds will charge you a fee for the duration of the time you are using their money. This is what an interest rate is. The rate will be done as a percentage and will be charged according to the terms of your loan (many times it accumulates monthly). If your lender gives you a fixed interest rate (let’s say of 3.5%), then you will pay 3.5% of your principal balance every time your interest is accrued, until you’ve completely paid back your small business loan. If you’ve been given a variable interest rate, that means that the percentage will fluctuate, according to the market benchmark that month. There are pros and cons to both types of interest rates, so you’ll want to do your research before choosing the best small loan for you.

APR

APR stands for Annual Percentage Rate, and it’s basically an overall figure of how much your loan will cost you for the year. This includes any fees the lender may charge and all of the interest compounded over the year. This snapshot will tell you if the loan is worth it, and how much money you’ll need to be able to pay it back in full.

Ready to apply for a business loan with a fantastic rate? Contact us here for a free quote.


February 25, 2019
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In this day and age, becoming an entrepreneur and owning your own business is becoming more and more enticing. And why wouldn’t it? Make your own hours, be your own boss. As tempting and rewarding as being a business owner might be, it also requires loads of hard work and excellent time management skills.

The truth of the matter is, not everyone is cut out to run his or her own business. If you really do want to make it on your own, then it’s important to be aware of these common mistakes unsuccessful business owners make which ultimately brings them to failure.

Mistake #1: Not asking the advice of successful business owners

Although it may be tempting to try and make it on your own, you would be doing yourself a huge disservice if you aren’t looking around to see where others have failed in their own businesses. Not everyone has access to a close friend who can mentor you in the art of starting a business, but there is an infinite number of resources you can look into for insight. Many business owners have published books and lectures on tips and tricks for running a business. Maybe you even have a few friends who are willing to talk with you about some of the things they wished they’d known before diving in. Either way, it’s always a good idea to look to others and try to learn from their mistakes.

Mistake #2: Not having a solid growth projection for the future

Sometimes it’s hard to see the big picture of a business, especially when you’re just starting out. However, if you don’t have at least an idea of your goals for the next few months, 5 years, decade, etc. you could be setting yourself up to stay small. A good entrepreneur has a timeline of small goals and big milestones. These not only help to propel the business forward, but they also keep everything organized in order to grow in a smart way.

Mistake #3: Not having the proper funds to do the job and do it well

Unsurprisingly, it’s impossible to get your business up and running without a chunk of cash. However, even if you don’t have a big sum of money to utilize for starting your business, there are ways to get funded. A small business loan can be your golden ticket to having the funds to get everything started. For example, equipment financing is an option for business owners who need to make a bulk purchase of materials and/or tools to get their project rolling.

While it may be a little scary to get started, being your own boss really does have its perks, and the feeling of pride and freedom that it gives you is second to none. Make sure to have a solid plan, be ready to work hard and learn a lot, and avoid the common mistakes listed above, and you’ll be well on your way!

Ready to take your business to the next level? Find out more about the right small business loan for you with Onebox Funding, here.


February 22, 2019
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Anyone who has ever started a company knows that it is the most thrilling and terrifying thing in the world to take your business to the next level and grow it. However, not scaling your business responsibly, with the right knowledge and tools, can be detrimental to your business’s success and can land you in some pretty hot water.

When you’ve had some success for a while, you may decide that it’s time to take the next step with your business. This could mean opening up new branches, taking on more customers or projects, introducing new products, etc. No matter how you want to scale, it’s imperative to have a solid plan and the resources to handle any growing pains you might encounter. Here are some questions you’ll want to ask yourself to see if you are indeed in a good position to take your business to the next step.

1. Do I have the manpower to scale?

While you may not have had any trouble managing 20 of your customers by yourself, you might find yourself gasping for air when you take on 100 of them. Making sure that you have enough employees available to maintain the level of service while upping the number of customers you have is absolutely vital to a successful business. If your existing customers feel that they are no longer receiving the quality of service they were previously receiving because you have spread yourself too thin, they will most definitely begin dropping you.

2. Do I have the finances to scale?

Maybe you have thought about hiring a few more hands to help you, but do you have the financial backing to be able to pay them? Money is probably the most important factor to take into consideration when trying to scale your business up. Maybe you will need to purchase new equipment or install new technology. Or maybe you will need money to grow your marketing campaigns online. Whatever the reason, you will need cash and lots of it. Luckily, there are small business loans available that can help you with everything from equipment financing to debt consolidation. Just make sure that you understand the terms of the small business loan (interest rate, payment amount, payment period, etc.), and that you will be able to pay it back when the time comes.

3. Am I ready for a possible setback or failure?

No business owner wants to believe that his or her business will fail. Unfortunately, growing a business is a learning experience, and mistakes can happen. Most likely, any business owner will come across at least one or two unexpected setbacks while trying to expand. The important thing is to be ready for anything and to have the strength to get back up and keep going.

Scaling your business is not easy, but it can be very rewarding and profitable if you have a good attitude, a great work ethic, and a drive for success. All the while, it’s important to remember to take things as slowly and surely as you need to, and to enjoy the journey while it’s happening.

Ready to take your business to the next level? Find out more about the right small business loan for you with Onebox Funding, here.