How to apply for a SBA-backed loan
What do you really need to know about how SBA-backed loans work? First, know that you're going to be spending more time with a bank than you might think.
Alternative Sources of Business Financing
If the bank won't lend you capital, how do you finance your business? We're assuming you don't have a rich Uncle Tony and don't have a winning lottery ticket in your pocket. Your choices after that are institutional lenders, private lenders, account receivables funding, or selling a part of your business. Finding capital can be tough, but here's how to find a few, and how to be professionally prepared to answer the tough questions a lender might ask.
The difference between corporate credit cards, lines of credit and loans
What's the difference between a business credit card, a line of credit, and other kinds of short-term financing? Here's the answer.
In Conversation with Mitch Jacobs
On Deck Capital
December 2009.
Company.com talked to Mitch Jacobs, founder and CEO of On Deck Capital, Inc., a New York based company providing loans that work for small business-not the other way around. Mitch founded On Deck Capital in 2006 and, to date, has provided $49 million in loans to small businesses when traditional bank loans were not an option.
Debt vs Equity
How Much Will You Give Up
To Get What You Want?
Bootstrapping, reinvesting (your own or your company's money), bank loans, and equity partners. Is there a lesser evil when you sell a stake in your business to bankers or strangers?
10 steps to starting your own business
Running a business doesn't stop until the business stops. You can start a company faster and easier in the United States than almost anywhere in the world, but getting it right takes a plan. You'll need to consider whether you need a business loan, temporary or permanent staffing, whether you're going to use a public relations company to get word out about who you are, business insurances, data backup, where are your customers coming from? Will you need to contract with a lead generation service? And this is just the very tip of the iceberg.
Landrieu legislation to increase small business loan limits
US Senator Mary Landrieu, D-La., Chair of the Senate Committee on Small Business and Entrepreneurship, introduced "The Small Business Access to Capital Act," she announced Oct. 22. The legislation, if passed, would increase the maximum 7(a) loan to $5 million (up from a maximum of $2 million), increase the maximum 504 loan to $5.5 million (up from a maximum of $1.5 million), increase the maximum microloan to $50,000 (up from a maximum of $35,000), and enhance refinancing of 504 loans, among other effects.
For community banks, Obama plan poses fresh concerns
Emily Maltby of The Wall Street Journal breaks down a White House proposal to increase the maximum size of SBA-guaranteed loans and offer capital to community banks using TARP funds. Some community bankers are skeptical, she notes. "Small-business loans from community banks tend to be risky and business owners often rely on personal and commercial real estate – the value of which remains down – as loan collateral." The plan would allow banks with less than $1 billion in assets to submit a lending plan that demonstrates how the TARP money will be directed to small businesses. Upon approval, these banks can access capital at a 3 percent interest rate, down from the 5 percent interest rate imposed on their larger counterparts.
How to incorporate your business
Most companies in America are the equivalent of garage businesses with no corporate structure. That works fine for most people ... until you need to hire someone, take out a business loan or you get sued. Business incorporation provides you legitimacy, and some legal protection. Sure, there are legal forms and paperwork to complete, and you will need to ensure compliance with a formal set of rules (most of which you're already following,) but the benefits will easily outweigh the nominal cost of incorporation.
Why you need a bank account
Separation of personal and business finances is essential for any business owner, and gives you a little protection from the IRS. How do you open a bank account for your business? It's not quite as simple as wandering into the local branch of the big bank on the corner.