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small business loan Blog Posts

By First American Merchant

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What YOU Need To Know Before Getting a Cash Advance

There are plenty of good things about a cash advance… and a few bad ones. Below are the key things you need to know before obtaining a cash advance. Fixed Fee (also called the Buy Rate or Factor Rate): This number is how much you’ll eventually have to pay back. Generally it’s written with a decimal point (ex: 1.30), but you might also see it as a percentage (30%). The math is pretty simple: you get the number you’ll have to pay back by multiplying the cost of your advance with the fixed fee. For example, on a $1,000 loan, […]

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Why Was I Denied A Small Business Loan?

Receiving a rejection letter for a business loan you were counting on can be discouraging. Data from the Small Business Administration (SBA) reveals that nearly 50% of small business loan applications are rejected for a variety of reasons. Understanding the most common reasons banks decline loan applications can be useful for your own business endeavors. 1. You applied for the wrong loan product Some banks may specialize in a certain type of lending or industry. For example, a lender may choose to fund large corporations that reach a certain revenue threshold or carry a specific number of assets. Other banks […]

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Working Capital is Important To Business

What is working capital? And why should it matter to your business? Working capital is the funds your business has available to cover day-to-day expenses. Without it, your business could quickly find itself in a dangerous cash-flow situation. Or, worse case scenario, facing bankruptcy. It’s also important to keep an eye on working capital because it’s what investors consider when assessing your business’ financial health and liquidity; that is, how easily your business’ assets can be sold to generate cash on hand. Working capital can be found through the following, simple formula: Working capital = current assets – current liabilities […]

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Low Risk vs. High-Risk Business Funding

How to get funding is often at the top of any entrepreneur’s list of challenges. From getting a business off the ground to attracting customers to hiring staff and expanding, an enterprise is almost always in need of capital. Thankfully, the last few years have seen a tremendous increase in the number of financing options for both new and existing businesses. Today, the bank isn’t the only choice of funding at a merchant’s disposal. That said, not all business owners find it easy to acquire funding. Small businesses, in particular, are known to suffer rejections by lending institutions, while other […]

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The Best Financing Options For Your Small Business

There comes a time in the life cycle of a business when it needs some form of financial help. If you’re an SME owner, for instance, you could want more funds to buy equipment, hire new staff, grow your brand’s awareness, clear your debts, or just meet daily operational costs. Whichever reason it may be, raising capital is rarely an easy endeavor. Nevertheless, you can sleep a little more soundly at night by choosing the method that is best for your situation. Below are some viable options. SBA loans The Small Business Association has been issuing loans to SMEs for […]

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Tips To Applying For a Merchant Cash Advance Loan… Even With Bad Credit

Although merchant cash advances have facilitated the prosperity of many businesses, some haven’t been as lucky. Like all funding options that need repaying, a MCA can make or break your enterprise. For instance, if your retail business is in need of immediate cash flow, a small business loan could help you get back on your feet. It’s quite easy, if you’re short of funds and your enterprise is making consistent monthly sales, applying for a merchant cash advance could add even more help alleviate the strain to your financial situation. A MCA is not a loan, but an advance on […]

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6 Possible Reasons Why Your Small Business Loan Application Was Rejected

There are many situations that call for a business owner to look elsewhere for business funding. Financing startup costs, fueling growth, funding expansion and covering operating costs, to name a few. When a business finds itself in a tight situation, the first place the owner typically turns is their bank. However, the task of securing a small business loan can be a very long, drawn-out process. Applying for a bank loan requires extensive documentation and long wait times for funding. To make matters worse, many of the businesses turned down for financing have no idea why their application was rejected. […]

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How To Make a Merchant Cash Advance Work To Your Advantage

Merchant cash advances are among the most popular methods of raising quick capital for business. By definition, an advance is an immediate financial advancement, which is given to a merchant in exchange for a share of future credit and debit card receivables. A MCA shares a few similarities to a loan, most importantly the aspect of paying back the money borrowed by the end of a stipulated time. However, it’s often a great alternative to a bank loan because it allows for much needed financial flexibility, provides immediate funding, and is quickly processed. Nevertheless, MCAs still need repaying. Before applying […]

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Any Idea What’s In Your Business Credit File?

Do you have blank credit files? This can create challenges for you as a small business or startup owner. If you think there isn’t anything negative in a blank credit file, it’s not true: empty credit files are as bad as bad credit ones, as Erik Simon, director of marketing and communications for Dun & Bradstreet Credibility Corp, a business-credit monitoring service provider, notes. Business credit information can play a crucial role since many companies, including lenders and insurance companies, take it into account while making decisions. So, your business credit, like your personal one, can help you when borrowing […]

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Why Banks are Rejecting Your Application for a Small Business Loan

Whether they’re in need of startup financing or cash to cover expenses, the first place an entrepreneur typically looks is their local bank. Unfortunately, securing small business financing is a much more complicated task than many realize. According to the NSBA’s 2016 Year-End Economic Report, “Despite a significant shift in outlook, small business access to capital remains stubbornly unchanged with just 69 percent of small firms able to get adequate financing.” Many business owners fulfill seemingly endless requirements, only to find out weeks (or even months) later that they’ve been turned down. Setting them back to square one. Meanwhile, their […]

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