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Business Financing Articles

What’s in a Small Business Credit Score?

April 23, 2015 by Guidant Financial

Mike Rozman, Co-president and Chief Strategy Officer of BoeFly, offers his insights on small business credit scores and their impact on small business financing.

Leveraging Retirement Funds as an Alternative to Small Business Financing

March 02, 2015 by Guidant Financial

As the economy improves and small business optimism continues to inch toward pre-recession levels, many are taking advantage of the idyllic environment to enter the world of entrepreneurship. But despite the recent economical enhancements, gaining access to capital for startups still presents challenges, with small business loans under $1 million dragging 17 percent behind pre-2008 heights. The obstacles in obtaining small business loans have paved the way for alternative methods of financing to gain traction, one of them being Rollovers…

Your Small Business Financing Timeline

February 20, 2015 by Guidant Financial

They say timing is everything, and nowhere is that phrase truer than in the world of small business — especially when it comes to business financing. If you’re relying on some type of funding to get your business off the ground, your opening date is completely dependent on when you’re able to secure start-up capital. So before you commit to a deadline, make sure your expectations are realistic by understanding the small business financing timeline. Below is a graph showing the…

Rollovers as Business Start-ups vs. Self-directed IRAs

February 05, 2015 by Guidant Financial

If you search the Internet for ways to invest an IRA or 401(k) into a small business or franchise, you’ll find two arrangements that can make it possible: Self-directed IRAs Rollovers as Business Start-ups (ROBS) Both allow for an individual to invest up to 100 percent of their existing retirement assets into a business or franchise – but – under very different circumstances. Self-directed IRAs Self-directed IRAs are passive investment vehicles. Under Internal Revenue Code 4975 (c)(1)(A-F) — also known…

Cost Analysis: Which business financing option is right for you?

January 21, 2015 by Guidant Financial

If you’re starting a small business, one of the first lessons you’ll learn is that it takes money to make money. A business is an investment, and if you hope to generate a profit, you’ll have to deploy capital (whether big or small) upfront to get your venture off the ground. There are a variety of funding options to help entrepreneurs secure their capital needs, from 401(k) business financing (also known as Rollovers for Business Start-ups) to portfolio loans. But…

Increase Cash Flow with Combined Business Financing

January 08, 2015 by Guidant Financial

When it comes to small business financing, many mistakenly believe it’s a “pick one and done” kind of deal. However, in many cases, using multiple methods to reach your desired capital amount is possible and preferable. Not only can mixing and matching create a customized financing plan that’s perfectly molded to your needs, but it can save you money. One of the most beneficial ways to combine financing methods is to use 401(k) business financing (formally called Rollovers as Business…

Unsecured Loans: Obtaining Small Business Financing Without Collateral

December 01, 2014 by Mitchell Larsen

When applying for small business financing, personal collateral usually comes with the territory. Lenders look for some type of possession to back the loan in case of default, like your property, car, home, etc. But risking your own assets can be worrisome, especially when you’re investing in a new venture. For business owners seeking financing without risking collateral, unsecured loans can be a good option. Similar to credit cards, this funding method consists of multiple lines of revolving credit that…

Why You Should Start Your Business Debt-Free

December 01, 2014 by Mitchell Larsen

Many entrepreneurs dream of being able to start their businesses without having to take on loans or other forms of debt. However, most don’t have such large amounts of cash at hand, so they resort to loans, max out credit cards and borrow monies from friends and family to finance their new venture. But you may have more money at your disposal than you think. If you have a 401(k), IRA or other eligible retirement account, you could use up…

The Ins and Outs of SBA 7(a) Loans: What You Need To Know

December 01, 2014 by Mitchell Larsen

SBA loans offer a practical method of small business financing for entrepreneurs looking to start, buy or expand a business. Whether you need money to buy real estate, cover construction costs or to use as working capital until you start making a profit, SBA loans offer attractive repayment terms. While several types of SBA loans exist to meet the needs of a wide variety of entrepreneurs, the most common is the 7(a) loan. This type of loan boasts low interest…

5 Simple Steps to Prepare Your Credit to Buy a Business

December 01, 2014 by Mitchell Larsen

A lot of preparation goes into launching a start-up, from determining what kind of industry you’re interested in to developing your business model. But of equal importance is a step that many aspiring entrepreneurs overlook: getting your credit in shape. Credit has a large impact not only on whether you’ll be able to acquire business financing, but also on the repayment terms. Naturally, those with the best credit get the lowest interest rates and most preferable options. Here are five…

The Benefits of Financing a Business with Your Stock Portfolio

December 01, 2014 by Mitchell Larsen

If you’re a small business or franchise owner seeking business financing, don’t resort to selling your stocks, bonds or mutual funds right away. By leveraging those assets rather than liquidating, you can gain access to fast funding with low interest rates — a winning combination. Portfolio loans (also called stock loans or securities-based lending) allow you to tap into the value of your assets to invest in a venture you’ll control, whether it’s business-related or not. You can borrow up…

Equipment Leasing: A Smart Long-Term Option for Your Business

December 01, 2014 by Mitchell Larsen

Walk into any office supply store, and you’ll quickly realize that buying equipment isn’t cheap. An ergonomically correct office chair can run upwards of $100 a pop, and when it comes to heavy-duty printers that will hold up to regular use, you’re looking at dishing out a few hundred, if not a few thousand, bucks. And that doesn’t even begin to cover industry-specific equipment like ovens, tools, etc. Rather than using up your cash or business line of credit on…

SBA 7(a) Loans vs. Low-Doc Loans: Which Is Right for You?

December 01, 2014 by Mitchell Larsen

When savings run out, many small business owners turn to loans from the Small Business Administration to find financing. Because of their preferable repayment terms and the fact that they’re guaranteed by the federal government, SBA loans are one of the most common methods of small business financing. Still, many business owners are unaware that several types of SBA loans exist to help them meet their needs. Two of the most common types are traditional 7(a) loans and Low-doc SBA…

Weighing the pros and cons of borrowing money to start a business

October 15, 2014 by Mitchell Larsen

As a prospective small business owner or entrepreneur, it can be exciting to think about turning your vision into a reality. However, have you thought about how you’re going to finance your company? You might think you have enough in your savings account until you check with the bank and find out that you’re going to fall well short of where you need to be. In this instance, you may consider turning to the U.S. Small Business Association (SBA) for…

Being mindful of unexpected startup costs prior to launching your business

October 15, 2014 by Mitchell Larsen

There are many obvious startup costs that come to mind when it comes to beginning a business, such as rent for your commercial space and insurance. However, a few expenses may fly under the radar and cause you difficulty later down the road if you don’t account for them as you consider your small business financing options. 1. Research. Investopedia.com reports that one cost that you might not include in your startup expenses is research. However, it’s important to take this…

Taking advantage of the credit access uptick for food service, hospitality franchises

October 15, 2014 by Mitchell Larsen

Franchising has not yet fully bounced back from the effects of the recession, and this was reflected in the predominantly static rates of franchise financing between 2011 and 2012. According to a recent index from the International Franchise Association and BoeFly, lending to franchise businesses saw a year-over-year gain of 3.18 percent between March 2011 and March of this year. Those interested in starting a franchise should note that some industries in particular are seeing above-average growth. “It is ……