It is seldom that a growing business finds itself in a position where it doesn’t need to obtain capital from a bank, investor, or lending institution to meet certain business needs. There comes a time when a company needs to expand its line of products and services or build new stores in new territories. No matter the venture, companies are going to be the tasked with acquiring funding and to do so, business credit plays a large factor in the business loan approval process.
About 6 in 10 startup businesses use personal credit or savings as their primary means of funding for business purchases. Although it may seem like a great idea initially to use your own capital for launching your business, it can put entrepreneurs at a disadvantage. Building business credit gives a company financial leverage and flexibility in the future. Companies that have established strong relationships with banks and lending institutions are able to secure lines of credit, lease equipment, finance company vehicles and most importantly, obtain business loans and credit cards without putting their personal credit at risk.
Owners of startups are encouraged to take advantage of business loans from online lenders like Fast & Easy Funds early on when their business is in its critical stage of growth. Doing so then allows for them to have more negotiating power later when they truly need additional capital to finance business endeavors. Additionally, a business with an established banking history may potentially be valued much higher in the event that the owner is looking to sell the company or acquire investors.
Repaying a business loan while avoiding penalties can be tricky. Some online business lenders make it difficult for business owners to repay their online business loans any way other than what was agreed upon in the contract. It may even be difficult to avoid penalties on business loans even when repaying early.
So, what’s the best way to avoid penalties on business loans?
- Understand Your Online Business Loan
It is very important to understand the terms of your loan before you agree and sign the contract. If you have already signed and received the loan, you have almost no control over the terms anymore, but you can understand your loan, which will help you avoid penalties on the loan.
- Look at The Repayment Schedule Carefully
Most online business loan penalties come from the repayment schedule. You are either penalized for paying late, not paying enough or repaying early. Penalties usually exist on a sliding scale; a percentage of the outstanding loan. If you read the terms of the loan carefully, you will be able to negotiate lower fees before signing the contract.
- Find a Trusted Online Business Lender
It may seem like an obvious means to avoid penalties on business loans, but finding the right online business lender can be tough. Contact a few online lenders before you settle on the right one. Contact us at Fast and Easy Funds and allow us to walk you through the process. We will offer an online business loan repayment schedule that puts you first.
Fast and Easy Funds has several online business loan options: cash advances, easy term loans, and asset based loans. Each online business loan has different advantages for a variety of companies, but no company can benefit from all the online loans we offer. Collateral for online business loans works only for a specific business type.
Before we determine if your business can benefit from an asset based loan, let’s be sure to define it.
Asset based loans refer to any loan that is secured by an asset. If the loan is not repaid per the agreed upon terms, then the online business lender will take possession of the collateral for online business loan.
If you don’t pay, the company’s physical assets will be transferred to the lender.
Who – Companies that own a lot of collateral for online business loans are best set up to benefit from asset based loans. Usually, these are companies that create products and deliver services in the real world. For example, a digital marketing company would not have enough collateral for online business loans to benefit from the loan.
When – Companies that are in desperate need of capital injection because of some unforeseen financial hurdle. Not all hurdles are negative. Your business could decide to secure an asset based loan to foster growth!
How – This is where Fast and Easy Funds can help. We are a trusted online business lender with years of experience in the industry. Simply contact a business loan specialist at Fast and Easy Funds and we will take care of the rest.
To understand investments versus loans, it makes more sense to understand both their similarities and their differences. Fast and Easy Funds is using equity investments and easy term loans for this example.
Investments versus loans: Similarities
- Both are vital to a business.
- Both come from third parties, and both investments and loans have an obligation of repayment. However, the terms of that repayment may vary.
Investments versus loans: Differences
- Investment are often more difficult to secure, whereas online business loans are very easy to qualify for.
- The risk of investments versus loans is very different. For instance, when a business owner gets an easy term loan, they are taking a smaller risk than if they chose to procure investment.
Convincing a venture capitalist to invest in your business can be difficult. If you want a list of successful companies that were once rejected by venture capitalists, then just look at NASDAQ. Every major company has been rejected: Google, Apple, Tesla, Twitter, Kickstarter, Uber; name a company and chances are they were rejected.
Additionally, it is very difficult for business owners to maintain control of their company after investment.
Easy Term Loans
One of the key points when examining investments versus loans is to understand why it’s easier to get an easy term loan than to secure an investment.
Unlike investments, easy term loans will often have strict repayment schedules. That may sound like a disadvantage, but it’s also important to note that business owners often thrive with a business plan and if you decided to get an easy term loan, you will remain in control of your company. No investors will be knocking on your door with conditions or demands.
Independent contractors, or businesses where the owner is the only employee, comprise 80 percent of all small business in the US. These fledging entrepreneurs are using online business loans, particularly the ever-popular merchant cash advance, to fund their operations.
The struggle for these independent contractors and small business owners is increasing. Currently, there are roughly 23 million individuals that fall into this category in the US. According to the latest research, most are barely breaking even. In order to continue being profitable, online business loans from independent lenders are used to supplement income.
The current problem is that most independent contractors do not trust or understand online business loans. The ones that do are choosing merchant cash advances to their advantage.
The unfortunate reality is that the small businesses that do not take advantage of online lending opportunities are failing faster than ever.
Small business owners often use merchant cash advances on living expenses while pumping almost all business profits back into the company itself. Which is better, a personal loan or merchant cash advance? The answer is simple: which ever has the lowest interest rate.
To receive a small business loan, most trusted online lenders will ask for proof of income or tax returns from the last two years. Banks may ask for more when you apply for a personal loan, but this depends on your credit and the lending institution.
For information regarding an online business loan, visit Fast and Easy Funds for more information. We welcome independent contractors, small business owners, and large companies.
Online business lending will not be slowing down in 2017. In fact, more loans will likely be given out this year, as the need for capital to expand businesses increases. This does not come as a shock to online lenders.
Last year was an interesting time for the lending community. For the first time, big banks took it upon themselves to enter the industry of online business loans to compete with online lenders like Fast and Easy Funds. Business loans increased dramatically, and the merchant cash advance remained one of the most popular online business loans for entrepreneurs.
What 2017 has in store for us:
- For starters, most online business loans. The general consensus is that technology is speeding up the process of online lending, making it cost effective and easier for business owners to get the capital they need.
- Minority owned business are going to have more access to online business loans. Business loans for woman will be a focus for online lenders.
- For the first time in eight years, the republican party will have the presidency. For the first time in almost 100 years, one party will hold the house, the Senate and the Presidency. This should make for some interesting consequences economically, because a more fiscally conservative ideal will be held by all major branches of government. This could mean more freedom for online lenders; thus, more access to loans like the merchant cash advance.
It is certain that 2017 holds a new set of challenges for us all, but the outlook is optimistic on all sides. Learn more about the business loan options at Fast and Easy Funds and allow us to make sure your 2017 is a year of positivity and growth.
The beginning of the year is often a time for hopeful thinking and diligent planning. For some people, it means trying a new diet, for others it means adding discipline to their lives, but for entrepreneurs and small business owners, the new year is an opportunity to expand, create, and conquer. The best way to take advantage of the new year is most definitely with the help of online business loans or a merchant cash advance.
Lenders like Fast and Easy Funds issues online business loans to companies with bad or insufficient credit; the companies that big banks turn away. How is a small business meant to survive or thrive without the help of online business loans? Pre-approved business loans are the most viable option for entrepreneurs who wish to start 2017 on the right foot and achieve their goals in the new year.
The merchant cash advance option, also known as an MCA, is a popular choice for business owners seeking loans. Fast and Easy Funds has made the process easier by loosening the requirements for getting a merchant cash advance. That means that there are more loan options for business owners with bad credit through our online business loan services.
Use your merchant cash advance to:
- Open a second location
- Hire more employees
- Create a new marketing campaign
- Purchase new inventory
- Survive another season
You have options and the ability to expand your business through online business loans. Allow us to help! Call Fast and Easy Funds today: 1-833-222-3249
The small business lenders at Fast and Easy Funds understand there is a stigma around the difficulty of applying for a small business loan. That is why our application process is fast and flexible; to help boost the growth of your business. When you need extra funds to expand your company, make sure you have these four things to guarantee a fast and easy loan process:
1.The Right Lender:
You might consider requesting a small business loan from a big bank, but oftentimes these banks have lower approval rates than the business lenders at Fast and Easy Funds. Not to mention, big banks have automated systems that could reject your application before a real person ever even examines it. Smaller businesses take a more personal approach to assisting you and your business goals.
2. An Accurate Credit Report:
Your credit report will help your lenders to determine your financial history and your ability to repay your loan. It is important to make sure there are no errors in your report.
3. A Solid Business Plan:
Create a business plan that maps out your goals, qualifications, and experience that will show your lenders how successful your company can be.
When asking for money, asset lenders like to see that you have a backup plan. This refers to something pledged as security for repayment of a loan. Collateral can come in many forms: real estate, inventory, equipment, and accounts receivable.
Applying for a business loan does not have to be a hassle. Use this guide from Fast and Easy Funds for easy application and a fast approval process.
Throughout his long campaign, businessman and future president Donald Trump made big promises to small businesses in America. He wooed entrepreneurs with his plans, in which he outlined the major setbacks small businesses face, and how he plans to “Make America Great Again”.
The following are the 3 ways in which small businesses will be affected by a President Trump:
- Repeal the Affordable Care Act – In Trump’s words, this has “crushed” small business owners who have been mandated to provide health insurance benefits to companies of 50 or more employees. Under President Trump, small businesses can expect to see amendments made to the current healthcare act in order to make it easier on households and businesses who have to supply it.
- Tax Cuts – under Trump, Fast and Easy funds reports that small business owners should expect to see a significant decrease in tax rates, dropping from 35 to 15 percent. As of right now, some small business owners who combine business income with personal income could be paying up to a 40 percent tax rate. Trump hopes to create set rates and eliminate major corporate loopholes.
- Lighter regulation – Trump favors lighter regulation across industries, which ultimately will make it easier to obtain a small business loan. Fast and Easy Funds know that a majority of small business owners see the government’s regulations as a barrier to their company’s success and expansion. When more entrepreneurs can acquire loans, more businesses can grow and expand more efficiently.
Fast and Easy Funds knows that there is quite a way to go before Trump’s presidency positively affects small businesses; but in the meantime, entrepreneurs can get the boost they need for their business from our loan experts.
Until recently, online business lenders faced little government regulation. The Wall Street Journal reported that some companies have gotten away with increasing annual percentage rates to 100 percent or more on short-term, online business loans. Therefore, a movement toward transparency has been long awaited in the world of finance. Fortunately, the Innovative Lending Platform Association (ILPA) has pioneered the effort with their latest tool that separates good companies from the bad.
Fast and Easy Funds reports small businesses can finally trust the transparency of business lenders with the newest tool, “SMART Box”. SMART Box stands for Straightforward Metrics Around Rate and Total Cost Box, and it was released in late October. It gives small businesses the opportunity to compare annual percentage rates and total amounts to be repaid for loans of the same duration, from company to company. This tool is essentially a voluntary form of self-regulation amongst lenders, and sets the standards for company practices. Right now, there are 3 versions of the SMART BOX disclosure available for comparison: term loans, lines of credit, and merchant cash advances.
Business lenders like Fast and Easy Funds know transparency is an important practice of running a successful, trustworthy company. SMART Box promotes standardization and common terminology amongst lenders to help small business owners make the best decision for their company.
Small Business & Entrepreneurship Council’s Kristie Arslan said of the new tool, “As a small business owner, allowing the vital information of a funding opportunity, such as the monthly payments, total repayment amount, cost of capital, fees, and much more, to be pulled out of the fine print and presented with the SMART Box tool will greatly help me and other business owners compare options and make the best funding choices for our businesses.”