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 reports that the rates of entrepreneurship are at a steady increase, with promising numbers for 2017. Studies conducted by the Kauffman Foundation found .34 percent of Americans start a new business each month.
With low capital intensity, low entry barriers, and high profit margins, the following are the top industries ripe with opportunity for startups in 2017:
- Corporate Wellness Services – Providing a low-cost alternative to healthcare.
- Human Resources – To cut costs, many companies are outsourcing human resources to private companies.
- Scientific and Economic Consulting – These companies are specializing in providing their clients with technological developments for their niche, and increasing market competition.
- Street Vendors – The increased demand for unique, gourmet, easily accessible meals are bringing a projected revenue growth of 3.7 percent in the street vendor industry over the next five years.
- Ethnic Supermarkets – In consideration to the growing Asian and Hispanic population in the United States, ethnic supermarkets are popping up everywhere to meet the demand for specialty foods.
- Adult Beverages – The wine and craft beer industries have rapid growth projection in the coming years.
- Tech – Over the past decade, the tech industry has seen the biggest and most successful startups with billions in revenue. Fast and Easy Funds reports projected success for the social network game development specifically.
- Online Survey Software – More companies are starting to use online survey software to engage with their clients, receive feedback, and reach out to potential, future clients.
Contact Fast and Easy Funds today to find out how much capital we can provide for your startups in 2017.
Let’s face it, there is a lot of information regarding online business loans floating around the internet, and it may seem difficult to categorize, sort and decipher most of it. So, which online business loan resource should you subscribe to? Follow these three websites as much as you can, and soon you will be sailing into financial freedom and business growth!
Fast and Easy Funds Loan Resources Page
Here at Fast and Easy Funds, we have dedicated an entire section of our website to educate and assist business owners, helping them find out more about the alternative business loan landscape. Online business loan resources are categorized and explained in a way that we hope will help business owners make the correct decision. Whether it is choosing between cash advances or easy terms loans, our goal is to help business owners understand and receive online business loans in a proper and timely fashion.
The U.S. Small Business Administration
The Small Business Administration is a government created and operated resource that details everything a business owner would need to know about online business loans. Although it is heralded as one of the best and most in-depth online business loan resources, the information can become confusing or overwhelming to a first time business loan recipient. It may be worthwhile reading through the resources at the Fast and Easy Funds blog first, in order to create a foundation of understanding before looking into specific laws regarding online business loans.
Though Nerdwallet covers all aspects of finances, be it personal mortgages or battling student loan debt, the site is also a comprehensive, online business loan resource. It pays to consider all of your finances, both personal and business related, so the Nerdwallet website may be a good ‘go-to’ site for all those needs rolled into one.
It was only a few months ago that major banking institutions like JP Morgan Chase and Well Fargo announced they were going to begin offering comprehensive, easy online business loans. The soar in profits, brand trust, and economic upturn have proven to banks what alternative online lenders have already known, that small businesses need loans to survive, and they need the loans to work for them.
Small business trends magazines are reporting that major banks are now approving online business loans in record numbers. Although major financial institutions are nowhere near as experienced in the industry as alternative online lenders like Fast and Easy Funds, they are doing their best to adapt. The techniques that have made alternative online lenders so successful are being utilized by big banks to streamline their institution’s structure of awarding their online business loans.
The next step in the evolution of online business loans is happening right now. An article in Forbes magazine detailed a new tactic used by Wells Fargo whereby the banking giant actually calls business owners who were denied loans. The idea is that these calls will be used to discuss with the business owners all their shortcomings and ultimately, the reasons why they were denied a loan.
Alternative online lenders have taken more measures in assisting entrepreneurs who look for online business loans, and it seems that major banking institutions are now trying their best to enter the market.
A study conducted by the U.S. Financial Capability Organization has confirmed what most have probably expected: Americans are financially illiterate when it comes to understanding business loans. It seems that as a people, Americans are bad at budgeting, saving and financial decision making. From online business loans, to cell phone bills, Americans just don’t understand the bigger implications.
Time Magazine said that the study “estimated that nearly two-thirds of Americans couldn’t pass a basic financial literacy test,” and the overall percentage of those who have passed has dropped significantly.
It’s not hard to understand why; there simply isn’t enough financial education in our formative years. Schools teach algebra and calculus, but students graduate not understanding business loans, having little to no knowledge of monthly budgeting techniques.
As a financial service company that offers online business loans, Fast and Easy Funds understands the importance of educating the public and entrepreneurs about loans, interest rates and financial structures. Our financial loan articles detail as much as possible to promote the understanding of business loans as a core value.
When online business loans are met with skepticism, it can be attributed to a misunderstanding of business loans in general. If something sounds too good to be true, then it is; that’s the phrase that dictates whether loans are utilized properly or not.
Online business loans can be the difference between the life or death of a business, but they must be used correctly. There is no quick solution to this problem. It is up to us to hold each other to higher financial literacy standards.
The American Bankers Association’s forecast released just recently predicts that consumer lending will grow by 9% this year. In the past 12 months, balances and business loan rates have increased by 7% which is the highest it’s been since 2008.
In 2014, Entrepreneur confirmed that business loan rates and balances were not near pre-recession levels and the theme seemed to be that the chance for a recovery in the years to come still seemed slim. At the time, there was an increasing need for business loans but very few financial solutions were in place to meet that need.
Eventually, alternative lenders offered online business loans at greater rates which began a healthy return for small businesses. The system used by online business lenders has worked so well that major banks like Wells Fargo have decided to launch their own versions of the popular financial solution.
This boom in business loan rates can be seen and felt in other parts of the country; the GDP has increased by 1.9% and credit rates have improved for most Americans.
Statistics released by the Small Business Administration said that 46% off small businesses found it easy to find financial solutions and loans compared to two years ago where 43% found it difficult and only 13% were approved.
The need for better financial solutions and easy business loans has finally found its stable supply. Currently, 51% off small business owners are looking for a loan lower than $100,000 and business loan rates will only continue to rise.
What does the future hold for small business and the American economy? From this vantage point it looks bright.
It’s a shame that to this day there are entrepreneurs and business owners who are still not fully educated or aware of the small business loans and financial solutions available to them. This brief list created by Fast and Easy Funds details some of the most common small business loan myths and exposes the untruths and half lies each myth represents.
- Online Lenders Are Predatory
This is a common idea for business owners who have not done much research on financial solutions and online lending. The truth is that a large majority of small businesses survive because of online lenders like Fast and Easy funds and the industry is doing so well and providing support for so many, that major banks are starting to copy the system developed by online lenders.
[Read the Fast and Easy lending blog: Banks are competing with online lenders]
- You Need Flawless Credit
This myth actually exists because of the current system banks use to determine loan worthiness. Of course credit score is going to factor in when you use an alternative lender for financial solutions but the need for incredible credit is one of the small business loan myths that seems to prevent entrepreneurs from trying. Apply for a business loan and try it for yourself.
- It Takes Months
This is another myth that stems from major banks. One of the reasons more business owners are choosing alternative lenders over traditional banks is because the loan approval process is faster and more efficient with online lenders.
- If a Bank Denies the Loan, So Will Online Lenders
It’s easy to understand why an entrepreneur might believe this above all the other small business loan myths because the logic is that if one institution rejects the loan application it should be on a universal basis. The truth is that lenders create a variety of criteria that must be met and they are not always the same.
It’s 2016 and Wells Fargo has decided to get into the online small business loan venture. It’s unusual for a big business to attempt to gain market share in an already established business model and analysts are speculating that the bank might be anxious because of all the potential business they are losing to alternative lenders. One of the biggest hurdles Wells Fargo has to overcome is the easy business financing that alternative online lenders are known for. Put another way; the online lenders are just much faster than big banking institutions and loans are always time sensitive.
While Wells Fargo fights to match the speed of online business loan companies, their rates and strict rules may still deter a lot of the businesses that turn to online business loans. The new Wells Fargo online business loan venture’s interest rates range between 13.99% and 22.99% and the bank still puts a lot of weight on the credit score of the company that is getting the loan.
The answer is definitely ‘yes’, Wells Fargo wants to take over online lending’s, but can they? They are late to game already and there are plenty of well-established and respected alternative lending companies that are known for easy business financing. A representative from Wells Fargo said they were playing around with the idea of partnering with an online lending company but decided against it, stating they would be able to provide a better product if they created it themselves.
Fast and Easy Funds is an alternative online lender with experience, speed, and great rates. When it comes to your small business loan, trust the best and trust the experienced.
The CardHub 2016 Credit Card Landscape Report, which was released April 6, has confirmed an increase in business credit card debt for the first quarter of the year. Business Credit Card debt is no exception. Smart business owners should be searching for alternatives to credit card debt as the interest rates increase and banks capitalize on this opportunity.
Recent figures show that over 80% of Americans are in credit card debt and as any business owner knows, personal debt affects your company. Many entrepreneurs start their business with Credit Card Debt; and that’s to be expected. The issue is maintaining that high interest debt long term while trying to run a business. Fast and Easy Funds offers unique solutions to these problems.
With a range of loans and cash advance options, Fast and Easy Funds gives business owners the chance to finally pay of their business credit card debt and create consistent, long term growth. Merchant cash advances for instance are a great way to pay off high interest credit card debts quickly and to save money long term.
Young and first time entrepreneurs become reliant on credit cards for their startups. Currently, 60% of all small business rely on credit card debts, and those all started on day one. The issue is that business credit card debt and interest repayments stifle any real chance for growth. Take a look at the Fast and Easy Funds business loan options and see which is right for you. Whether it be inventory financing, an easy term loan, or even a merchant cash advance, these alternatives to business credit card debt will serve all business owners well into the future.
Approvals for small business loans are rising, so does this mean the ‘great recession’ is over? Well, not exactly. Banks loans typically have an ebb and flow, and the market might show an eruption in approval rating in one quarter and then a sharp decline over the rest of the year. One thing this point illustrates is that fact that people are taking risks to start their companies and banks are financing those risks. Independent loan companies like Fast and Easy Funds are an option that many small business owners might want to consider as an alternative to these bank loans.
Experts point out banks have had a long history of refusing loans to small businesses, which is why alternative lenders like Fast and Easy Funds have stepped up to the plate to help businesses in need. So why the sudden change? It’s difficult to say. At the moment we only have the figures and they suggest that small business loans are being approved to a larger extent.
Should I get or look into small business loans? The problem with taking loans from banks is that the repayment responsibilities can often times be quite harsh and steep. Although very few outlets are commenting on the new sudden rise of small business loans, nothing is for certain yet. Buzz surrounding the online small business loans service Chased launched earlier in April suggests that more loans might be on the horizon; and with those loans will come higher and higher interest rates.