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Volume 12, Issue 2 November, 2022
November 24, 2022
|Greetings Valued Colleague:
Here is your latest issue of "Biz Money Now!" – the companion newsletter to the Business-Money-Source website.
This Month’s Subject: Qualifying For Business LoansVolume 12 Issue 2----------------------November, 2022
Observe COVID 19 Precautions!Practice social distancing, wash hands and face frequently, get vaccinated and boostered when required and wear a mask where required.
What You Will Need To Get A Business Loan!Many business owners and entrepreneurs are mistaken about what they need to qualify for a business loan. They often fail to evaluate their financial situation from the lender’s point-of-view. A lender, whether a bank or private investor, is looking for the same qualities in a loan applicant. It is the applicant’s responsibility to convince the funding source that he/she:
1) Has the ability to repay the debt, (personal income/business revenue)
2) Is willing and able to repay the debt (good character
3) Has the ability to secure the loan (collateral) in the event of default
The Ability To RepayYou must demonstrate your ability to repay the loan with supporting documentation. Most funding sources will require 3 – 6 months worth of business bank statements, most recent income tax returns and profit & loss statements for existing businesses. If your business is new and there is little or no revenue you will need to present a Pro Forma statement of future revenue for at least the next 3 years. Your earning predictions must be realistic and based on sound market research. You will also have to show proof of current income.
Willingness To Repay The DebtFunding sources look at your previous repayment history as an indication of your faithfulness to repay them. The credit report is an important tool in giving the lender an understanding of your credit history. Lenders will review your debt-to-income ratio as well as your credit score and payment history.
The Ability To Secure The LoanLenders must have assurance that if something unforeseen happens and you can’t repay the loan, the lenders will have a way to get their money back. The loan can be secured by various kinds of collateral (valuable assets that can be redeemed for cash) depending upon the lender and the kind of loan. Some of the most common assets that can be used to secure your business loan are: accounts receivable, government invoices, future revenue, real estate, equipment, vehicles and almost anything of value that is acceptable to the lender. Some lenders may require a life insurance policy taken out on the borrower with the lender as the beneficiary. In any case, the valuable of the collateral must be equal to or exceed the loan amount.
What Does This Mean For Your Loan Acquistion?In order for you to be successful in your quest for business money you will need at least one of the three pre-qualifiers listed above. Two are better and all three will almost guarantee funding for your business.
Different lenders offering different kinds of financing may place more emphasis on one pre-qualifier over the other two.
For example, an unsecured bank term loan looks at the credit score and income-to-debt ratio as the primary qualification. The minimum acceptable credit score is 680. No collateral is required.
A working capital provider will look more at the monthly revenue and the ability of the business to make the required daily or weekly payments.
On the other hand, a commercial real estate lender may be more lenient on credit score. The value of the subject property, projected income and professional experience of the applicant and his/her management team will be the primary factors on whether or not a loan is approved or denied.
SummaryNo one funding solution fits all businesses. No one lender offers every kind of funding solution. You must determine the kind of funding that you need and a lender that offers that kind of financing. Sorting through the many funding options is where a knowledgeable and honest Business Funding Consultant is an invaluable asset in helping you in your business funding quest. There are many other variables and tradeoffs that must be taken into consideration; the loan amount, how quickly you need the funding, how much you are willing to pay (interest) for the use of the money, purpose of the loan and how it will be repaid and many other considerations.
It may take longer than you expect to find the business funding that fits your business situation. If you know that your business will need a cash infusion in the 2nd quarter don’t wait until the mid-February to begin your funding search. Allow yourself enough time to evaluate your funding options in order to get a loan that makes the most economic sense for you.
Note: Due to the dynamic nature of the business finance industry and the current volatile economic situation of the U.S. economy, the loan programs described in this document may change or be discontinued without notice.
What Are Our Clients Saying?"If you need a business loan, Jim is the man to see, good service." J.B.
"Jim with Business Money Source was incredible in helping me find funding for my business, especially with the challenges faced due to Covid and my unique financial situation. In spite of said challenges, he was still able to help me acquire funding to get started. I look forward to continuing to work with him as business progresses. ~KCT"
"Jim is very responsive to any contact you make. Just email him and he's there for you." M.O.
This Month’s Business Survival Tip:
Term Loans (USA Only)Term Loan:
- $50,000 to $300,000
- 3 To 7 year terms
- 4.99% to 14.99% interest range
Some benefits of a Term Loan:
- Funding in 7-15 business days
- Fixed monthly payment
- Full liquidity Immediately
- No minimum length of time in business
- No upfront fees
What You Will Need To Apply For Term Loan:
-680+ Personal Credit scores in all 3 bureaus
-More recent personal tax return showing $50,000 annual income or more taxable income
What if your credit score is less than 680?
Do you have a business partner, spouse or friend with a credit score of 680 or higher who can co-sign for you? If you do, then you may still get funded!
Click the link below and fill out the short secure form to apply for a term loan:
Questions Or Comments On Other Business FinancingGo to the Business Money Source website and fill out the contact form with any questions or comments that you may have:
Your information will not be shared or traded with any other business or private entity.
More Links To Get Started In Funding Your Business Or ProjectFor other business loans:
Know Someone Who Is Seeking A Business Loan Or Real Estate Financing?To register as a Referrer and refer a business loan request:
Let us know what topics you would like to see covered in Biz Money Now! newsletter.
Back Issues for Biz Money Now!
Please feel free to contact me by the methods listed below, with any questions that you may have about the various loan programs offered by Business Money Source, LLC.
I look forward to assisting you or your clients in acquiring the business financing that you seeking.
Jim Bullock, Managing Member
Business Money Source, LLC
Fax: (804) 781-4971
Friends of Business Money SourceAdditional resources to enhance your business and your lifestyle:
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Please feel free to contact James Bullock at email@example.com if you have a desire to let the world discover you.
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Until next month!
Business Money Source, LLC
8885 Strath Rd Richmond, VA 23222
“Your One Stop Online Business Information Source” www.business-money-source.com
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