Small Business Toolbox

A library of business management info


Small Business Financing and Loans
  • Does Your Business Need a Line of Credit?
    04/16/2008
    Many businesses—at one time or another—have cash flow problems. Cash flow issues can stem from a variety of reasons ranging from a large account falling behind in payments, to a management error in hiring more employees because of an anticipated sales increase, to a seasonal blip in sales. The fact is, even though you may be managing your cash flow smoothly now, you can't predict the circumstances in which you'll find yourself a few months from now. It's possible that someday you'll be stuck trying to pay your employees or vendors—without enough cash in the bank.
  • Find the Right Bank for Your Small Business
    02/08/2008
    Choosing the right bank is an important part of running your small business, and you don't want to trust your money to someone before doing your research. To help in your search, ask yourself the following questions before deciding which bank is right for your business.
  • Using Interest-Only Loans to Solve Financial Woes
    12/13/2007
    It's no secret that interest-only loans are a big draw for a lot of people without a steady or regular paycheck, especially individuals who work on commission as well as entrepreneurs. But are interest-only loans right for you?
  • Getting and Keeping Good Company Credit
    10/04/2007
    Every business owner knows the value of credit. Borrowing allows you to build your company in good times without disrupting cash flow. During slower periods, credit can help maintain your firm's smooth operation.
  • Good or Bad: The Key to Understanding Debt
    09/14/2007
    Financial empowerment and small-business success start with knowing the difference between good debt and bad debt. Surprisingly, not all debt is bad—contrary to the popular notion that it’s indeed better to be debt-free. Debt can build credit and help secure assets, but it can also wreck your credit and drain your pocketbook.
  • Using OPFM (Other People's Free Money)
    07/10/2007
    The term OPM (Other People's Money) traditionally refers to borrowed money that allows you to leverage investments or start a business. OPM comes at a cost because normally interest in one form or another is charged.
  • Taking Out Your First Business Loan
    05/23/2007
    In order to take your business to the next level or perhaps even begin to get it off the ground, you may need to take out a small business loan.
  • Business Loans: Getting a Lender to Say "Yes"
    08/28/2006
    Banks and financial institutions are often not eager to part with money when it comes to small businesses. The reason is that small businesses have a notoriously high failure rate. While you may think that your business doesn't fall into the "failure" category, you do need to prove your credit worthiness to a bank if you want to not only get a business loan but one with favorable terms.
  • Doing Your Franchise Homework
    08/16/2006
    Five Questions to Ask When Shopping for a Franchise
  • This Loan's For You
    06/07/2006
    Has your loan request hit a dead end with the bank? The Small Business Administration offers loans for start-ups and small businesses that may not be eligible for financing elsewhere. With a portfolio of 219,000 loans totaling $45 billion, the SBA is one of the biggest drivers of small-business growth in the country, according to a recent study by the Federal Reserve Bank of Atlanta. If you're feeling cash-strapped, the SBA might be a good funding source.
  • Wheels of Fortune
    05/25/2006
    How to determine the best way to pay for your new wheels.
  • This Loan's for You
    03/30/2006
    Has your loan request hit a dead end with the bank? The Small Business Administration offers loans for start-ups and small businesses that may not be eligible for financing elsewhere. With a portfolio of 219,000 loans totaling $45 billion, the SBA is one of the biggest drivers of small-business growth in the country, according to a recent study by the Federal Reserve Bank of Atlanta. If you're feeling cash-strapped, the SBA might be a good funding source.
  • Set Up Vendors, Lenders and Subcontractors Before You Need Them
    02/23/2006
    When a small business can establish relationships with vendors, lenders and subcontractors well in advance of when they are needed, it can avoid mistakes and save money. Planning all stages of development in advance is always a winning strategy.
  • Knowing When Your Company Needs to Borrow (or When Other Issues Are the Real Problem)
    02/15/2006
    When your company runs into a major difficulty, roadblock or key decision point, it can be a knee-jerk reaction to throw money at the problem, hoping it will go away. But borrowing or taking money from reserves often is not the best solution––and may lead to even greater problems in future
  • Securing Credit When Self-Employed
    10/24/2005
    Micro-businesses and self-employed contractors often struggle to secure loans and lines of credit because most lenders equate small with risky. There is an element of truth to this, of course, because many small businesses deal with uneven and uncertain cash flows. To banks, this translates into potential missed or late payments.
  • Taking the Big Step: Financing an Acquisition
    08/08/2005
    Learn about how the finance that acquisition you might have been considering.
  • Grants Offer an Alternative to Costly Loans
    02/10/2005
    Luckily for small-business owners, you don't have to have plenty of money in the bank to start a business or to expand. Rather, there are small-business grants designed specifically to help small-business owners get an infusion of cash in order to get ahead.
  • The Ins and Outs of Short-Term Loans
    02/03/2005
    Small businesses often require short-term loans to finance the start-up period, uncertain cash-flow times, seasonal purchasing, increased marketing efforts or new ventures. If you plan and use them wisely, short-term loans can provide seamless transitions. If you use them unwisely—or when planning goes awry—they can result in financial headaches.
  • Most Common Financial Errors Small Businesses Make
    01/06/2005
    Running and growing a small business is hard enough without making simple financial mistakes you kick yourself for after the fact. Consulting with an accountant or attorney who is experienced in the finances of a small company can help you avoid most common errors. But the following types of mistakes are often overlooked, even by the pros.
  • How a Start-Up Small Business Can Maximize Chances for a Bank Loan
    12/09/2004
    Virtually every small-business manual describes what needs to be included in a proposal for a bank loan: the type of business, details the industry, experience of owners, financial history of the company (if any), amount of loan requested, specific usage of funds, projected revenues and profits, collateral, means and timeline of repayment, etc.
  • Five Financing Flaws to Avoid
    05/03/2004
    In the world of fundraising, pitfalls are a certainty. Whether you fall into the Grand Canyon or just stub your toe along the way depends on how well you do in avoiding these common financing mistakes.
  • Get a Grant
    03/12/2004
    When most people think about funding sources for business, loans, stock offerings and venture capital are pretty high on the list. But many companies, possibly yours, are also eligible for government and private foundation grants.
  • Focus on the Plan
    02/19/2004
    Whenever you take out a loan for your business, it is important to have a current business plan available for your potential lender.
  • Borrowing 101: Never Prepare a Loan Request Under Pressure
    01/22/2004
    When you're strapped for cash, applying for a small business loan at the last minute can raise red flags for lenders, as well as result in errors in your own calculations.
  • The Most Important Part of a Loan Application: The Brief Statement
    01/08/2004
    If you think about it, you'd probably agree that a loan application is very similar to a marketing piece.
  • A Small to Mid-Size Company Can Raise Money Without Going Public
    10/17/2003
    While going public can sometimes make small business owners multi-millionaires, it's not for everyone.
  • The Loan Moan
    08/20/2003
    When applying for a loan, the perception remains; a banker's desk appears like a looming Mt. Everest, and the lending officer sitting behind it, an Indomitable No-Man, standing between you and the vault.
  • Expand Your Business with SBA Loans
    08/15/2003
    Many business owners are unaware that the SBA is one resource for small businesses looking to lock in the funding they need to grow.
  • Turn Credit Card Receipts into Working Capital
    08/05/2003
    Rather than turning to a bank or applying for a line of credit when your company needs a cash infusion, consider contacting a credit firm that provides cash advances based on anticipated future credit card receipts.
  • Five Steps to Take When a Lender Says No
    05/27/2003
    When a lender says no, try to do the following.
  • Angels: A Funding Source for Firms With Limited Revenue
    04/22/2003
    These informal investors invest $10 to $20 billion in over 30,000 ventures annually.
  • Little Red Flags Could Lead to Loan Rejection
    04/08/2003
    Other red flags may indicate only the slightest risk, but can be just as detrimental to an application.
  • Overcoming the Self-Employed Stigma When Applying For Business Loans
    01/24/2003
    There are ways to strengthen your position when applying for loans or credit and overcome the stigma attached to self-employment.
  • Family And Friends As Investors: Staying Friendly When Your Business Hits Hard Times
    10/29/2002
    Before you talk with family and friends about investing, you should make sure that your business is ready for outside investors.
  • Understanding Loan Agreements
    10/01/2002
    Any time you borrow money you'll have to sign documents delineating the terms of the loan. Today's Workshop discusses what you'll need to know before agreeing to the lender's terms.
  • Capital-Formation Strategies
    10/01/2002
    There are many choices available to a small but growing company that's looking to raise capital, but basically your choices are limited to two flavors: debt and equity.
  • Common Mistakes Entrepreneurs Make in the Search for Capital
    10/01/2002
    Today's workshop lists mistakes to avoid when searching for and meeting with investors.
  • Understanding the Different Sources of Capital, Part II
    10/01/2002
    Today's Workshop is the second of a two-part series taken from the book Raising Capital by Andrew Sherman.
  • Understanding the Different Sources of Capital
    10/01/2002
    Today's Workshop is the first of a two-part series taken from the book Raising Capital by Andrew Sherman.
  • Understand the Details of Your Loan Documents
    10/01/2002
    Anytime you borrow money you'll have to sign documents delineating the terms of the loan -- how much is being borrowed; what collateral you'll be using; what the lender's interest is; and your promise to repay the debt, including guarantees.
  • Is Your Debt Load Affecting Your Chance of Getting a Loan?
    06/25/2002
    Banks rarely like loaning money that will be used primarily to pay off debts, so this can be a deal killer.
  • Five Red Flags To Avoid When Applying for a Bank Loan
    06/18/2002
    Securing a bank loan may mean the difference between staying in business or closing shop.
  • Innovative Financing Sources for Web Site Development
    04/15/2002
    Today's Workshop discusses unique financing sources for Web site development.
  • A Check in Time Saves Your Credit Line!
    04/11/2002
    Knowing the state of your credit report before applying for a business loan or asking for extended credit is a shrewd move for any business owner.
  • Is a Business Loan With the Lowest Interest Rate Always the Best?
    04/11/2002
    Bank advertisements lead many people to believe that it is best to shop for the lowest interest rateand that receiving the lowest rate is preferable.
  • How to Grow Your Business Without Borrowing
    04/11/2002
    In general, you can grow a company without borrowing (or with minimum borrowing) by expanding through profits.
  • How to Get a Loan from a Bank to Start Your New Business
    04/11/2002
    It's difficult to get a small business loan from a bank to start a new business -- one which has very little if any collateral, no profits as yet, and by definition no long-term performance.
  • Latest Loan Temptations: Look Before You Leap
    03/07/2002
    In the mail today I received an offer for an unsecured loan up to$100,000 at an Annual Percentage Rate (APR) of 13.
  • Re-establishing Your Credit, Part I
    03/07/2002
    If you've had a downturn of finances in the past, and as a result have missed payments or defaulted on loans or credit cards, the chances are that you're in need of re-establishing your credit.
  • Getting Credit When Self-Employed
    03/07/2002
    Do you wince when asked on credit applications whether you're self-employed? If so, it's because you're aware that being self-employed is viewed as an additional risk by many lenders.
  • Funding Expansion Through Bank Financing
    03/07/2002
    For many small business owners trying to expand their operations, the biggest deterrent to growth often remains financing, even if their business has been operating profitably for years.