Building a successful business is no easy feat and many owners learn what works by trial and error. That’s why we’ve rounded up some of the best financing lessons learned from the small business owners we talked to this year.
Access to Capital
7 Signs That You Shouldn’t Sign (or E-sign) on the Dotted Line
Getting approved for a small business loan is an exciting moment. You finally have the capital you need to move the needle for your business—whether it’s capital to purchase a new piece of equipment, to finance a second store opening, or simply to cover your regular business expenses. After putting hours and effort into searching for and applying for a business loan, you might be tempted to just quickly review your offer, check the rates and terms, and sign on the dotted line.
You may not be trimming the tree just yet, but it’s definitely time to make sure your business is ready for the biggest shopping season of the year. From retailers to restaurants, the majority of small businesses will significantly boost their bottom line in Q4. According to a recent survey from Vistaprint, 75% of consumers indicated that they’re likely to do at least some of their holiday shopping with small businesses this year.
If you have bad credit, your financing options may be limited and expensive. If you hope to start or a grow a business, you'll need to learn how to judge the status of your credit score and why it matters to your lender. Even more important, you must explore realistic avenues to fix the problems with your credit history.
If you’re just beginning your hunt for business financing, you’re likely knee-deep in unfamiliar terms and lending jargon. And it’s enough to make even the most eager entrepreneur feel overwhelmed. Don’t continue your search without reviewing a few of the essential terms you need to know to make an informed decision about financing your business. We’ve broken down eight must-know terms below.
You took out a U.S. Small Business Administration loan to grow your business and had every intention of repaying it. But you've experienced some hardships and sales are weak. You can't make payments and are now facing an SBA loan default, which would likely spell doom for your business.
As with almost every aspect of our lives these days, the internet has made it easier, faster, and more convenient than ever for small business owners to gain access to financing, submit business loan applications, and get cash in hand to pursue their goals. Even so, when it comes to something as important as financing your small business, the easy, fast, convenient way won't necessarily give you the best results.
Business owners who sustained substantial loss from Hurricane Harvey should treat reopening their business like starting up for the first time. Whether the business owner gets funds through the Small Business Administration, a bank loan or their savings, reopening will take planning and capital. Lack of these is the reason behind the majority of small businesses that fail, said Joe Humphreys, University of Houston-Victoria Small Business Development Center executive director. "It's like starting all over again," he said. "They may not have the same employees.