The global financial crisis has made it quite
difficult for companies, especially small businesses, to get business
loans. Ironically, it is also in this situation that smaller companies
often need additional capital infusion to boost income. You may need to
get small business loans to acquire a better business location,
construct a new building, renovate your premises, pay for new
equipment, fixtures or furniture or increase inventory and working
capital.
Most Small Business Loans Require Collateral
To get business loans, even small business loans,
is a major challenge.
First you need to identify which among the many
types of small business loans you need. Small business loans ranging
from $5,000.00 to $35,000.00 are called micro loans. For larger needs,
such as for the acquisition of land, buildings and other major fixed
assets, development financing is what you should find. There are also
import export loans as well as franchise financing. Do your research to
find out if you are qualified for small business loans guaranteed by
the U.S. Small Business Administration or SBA.
Any of these small business loans will require
extensive preparations and paperwork. As a small business owner, you
will need to prove your credit worthiness through a personal credit
history report. Lenders will also require a business plan which
includes your credentials as the business owner, your company financial
statements, business assets and an analysis of your market. All of
these should be packaged in a professional loan proposal which presents
how the loaned amount will be used to strengthen the business and how
you intend to repay the loan. Most of all, you need to present your
loan collateral – the assets you will put up to secure the loan.
Quick and Easy Small Business Loans with No
Collateral
For smaller acquisitions or day to day business
needs, there is a way for entrepreneurs to get small business loans
easily and quickly with no collateral. This is through merchant
services.
Merchant services provide credit card services to
businesses. This enables them to accept and process payments through
credit cards or debit cards either through face to face purchases,
online transactions, or even by phone or fax. Merchant service
providers supply terminal equipment for card swiping, as well as the
necessary software and high speed IP solutions.
Most businesses need credit card services since
consumers routinely pay for goods and services through credit cards and
debit cards these days. If your business has not taken this step yet,
you may have been missing out on more than half of your income
potential.
These same merchant services also provide the
solution for your small business loans. Collateral-free loans can be
availed of through their cash advances, with the loan amount
computation based on the monthly credit card revenue your business
generates. Credit card sales requirements may be as low as $3,000.00 a
month. You will not be asked for collateral since your future revenue
is your collateral.
The best types of merchant cash advances do not
require fixed monthly payments nor do they impose deadlines on loan
payment. A certain percentage is instead deducted automatically from
your credit card revenue each month to go towards loan payment. This
way, you never have to worry about loan amortization.
Once your cash advance has been fully paid, you
may apply for another one. It is like having a revolving credit line.
Make sure that you compare the terms of several merchant service
providers, though, and read the fine print on contracts. There are so
many merchant service providers competing for your business that you'll
surely find one that fits your needs.
Article Source:
http://www.articlesbase.com/loans-articles/getting-small-business-loans-
with-no-collateral-in-this-recession-2693377.html
About the Author
Advanced Merchant Services
Contact Name: Roger Inman
P.O. Box 1475 Safety Harbor, FL 34691
Bus: 727-642-3606
Bus Fax: 877-413-6067
E-mail: rinman3@tampabay.rr.com
Website: http://www.bankcardprocess.com
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