Contrary to the belief that bankers actually look for reasons to turn down prospective clients in need of a loan, they are in the business to lend money. This means that every time a banker is sitting in front of a potential client, they are hoping to make the deal work just as much, if not more than the client wants it to work.
A banks primary role in the small business lending area is funding growth. An example of this would be to finance the expansion of small business with a proven track record. Most banks can offer a wide variety of loan packages designed to finance expansion of an already existing small business.
Below are a few examples bank loan packages :
1. Asset Based Financing. Asset Based Financing is a general term describing a transaction whereby a lender accepts collateral and assets of a company in exchange for a loan. Most asset based loans are collateral against other accounts receivable, inventory, or equipment. Accounts receivable is the most favored of the three because it can be converted into cash quickly. Banks will only advance funds on a percentage of receivable or inventory, typically being around 75% of the receivable and 50% inventory.
Small Business Grants - Tips from the Pros
Every business starts with an idea or a dream. To implement this idea or to turn your dream in to reality you require finance. A grant supports the business ideas and turns the dreams of an entrepreneur in to reality.
There are many types of grants offered by the Governments and other financial institutions that include individual grants for personal necessities, business grants for starting new business, education grants for funding education and many more. Grants are always a feasible option to support existing business or financing new business in all fields. While the United States gove ..
2. Line of Credit. A line of credit involves the banks setting aside designated funds for the business to draw against for the cash it needs. As the line of credit is used, the credit line is reduced and when payments are made the line is replenished. One major advantage of a line of credit is that no interest is accrued unless the funds are actually used.
3. Floor Planning. Floor Planning is another form of asset based lending in which the borrowers inventory is used as collateral for the loan. Car dealerships are a prime example of a business that often uses floor planning as their primary financial tool.
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Small Business Liability Insurance This article provides useful, detailed information about Small Business Liability Insurance.
It is imperative for small businesses to have a liability insurance coverage as protection against claims that can render it bankrupt. While buying liability insurance, small businesses should take a few necessary steps. The first of these steps is to belong to a credible association. Several trade associations, the Chamber of Commerce perhaps being the most famous, allow members the luxury of purchasing insurance at group rates. Also, it is wise to look for other associations that give insu ..
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Dave RyanGetting a Small Business Loan
