|Small Businesses Turn To Alternative Lending Sources|
As the qualifications for small business loans become more difficult to meet, many small business owners are looking for alternatives. Many have found that going with an online lender has advantages over banks and other traditional lenders, although there are some disadvantages as well.
One of the reasons small business owners are looking at online loans is because they can have their funds in hand quicker. Brick-and-mortar lenders often take more than a month to check a loan application, approve it, and transfer the money to the business. Online lenders, though, often approve loans in less than a week and have the money to the borrower in a day or less.
These lenders also may not look as closely at the applicant's ...
|How Social Media Is Influencing Business Loans|
When applying for a loan, most small business owners assume they will be evaluated only on the information they supplied on their application, but that's not always the case. In fact, when applying for a loan from an online lender, that lender often takes into account things such as the social media profile of the business before making a decision. Lenders with a physical location take a look at Facebook, Yelp, and other social media sites to better check a business loan applicant.
Lenders are looking at these profiles to get a better idea of where a small business stands. For example, a business with thousands of Facebook followers has a ready au...
|Risks Businesses Take With Credit Cards|
Many businesses make use of credit cards for daily purchases, and some new small business owners even finance their entire business on credit cards in the beginning. A business can make use of various reward points and other perks to save money and build up its credit score, but there are some downsides to using business credit, too. Just as with individual credit cards, there are risks. Here are a few things a business needs to be wary of.
Multiple employees can have credit cards connected to the same account, making it easy for businesses with several employees who need to make regular purchases. However, these employees can abuse their credit cards by using them for personal purchases. The business is respons...
|Small Business Loans Are Big Business|
According to a survey by the Pepperdine Private Capital Access Index, small businesses are planning to expand this year. The survey found that 83% of respondents said they believe their small business will expand in 2016. Many added that they expect their total annual revenue to increase by an average of nine percent over the year. Owners of businesses that made $5 million or less were more confident about the growth of their business than those who owned bigger companies, showing that the small business sector is booming.
Small businesses need financing to grow, but securing that capital is often difficult. The U.S. Small Business Administration estimates that only twenty percent of all small business loan applications received in 2015 were approved.