Category: Business Credit

Cross Collateralization: What It Is and How It Works

Cross Collateralization: What It Is and How It Works

At some point in the life of your business, you may need to borrow money. Whether you want to take advantage of a lucrative investment opportunity, expand, or start marketing a new product, it pays to prepare your business credit and educate yourself in advance when it comes to commercial lending. One method for borrowing this money is through cross collateralization. Keep reading below for a breakdown of what cross collateralization is, how it works, and the risks and benefits… Read More
Trade References—An All-Too Often Overlooked Secret to Business Credit Success

Trade References—An All-Too Often Overlooked Secret to Business Credit Success

Have you ever checked your business credit report and hoped creditors and lenders could have more information on your business? It could be subjective information, like if there is a seasonal pattern to your payment habits, or how long you’ve been doing business with a supplier. It’s something beyond the sheer numbers. You can get this information added to your business credit reports. Have you ever heard of trade references? What is a Trade Reference? Trade references are like financial… Read More
Getting an SBA Loan Just Got Harder

Getting an SBA Loan Just Got Harder

A recent update to the SBA’s  Standard Operating Procedure (SOP) for lenders participating in the Small Business Administration (SBA) loan guarantee program could make getting an SBA-guaranteed small business loan a little more challenging if you and your small business have less than perfect credit. According to the update, this SOP will go into effect on Oct. 1, 2020. The pertinent part of the update regarding credit qualification criteria is as follows: All 7(a) Small Loan applications will begin with… Read More
Line of Credit vs. Loan: What’s the Difference?

Line of Credit vs. Loan: What’s the Difference?

This post was reviewed and updated on August 7, 2020 Small business owners often turn to loans and lines of credit to finance different types of business operations. Both financial options can give you access to capital to run and grow your business, but their terms make them useful in different scenarios. There are also personal lines of credit and loan options available if you’re looking for something to help with a personal expense. The primary difference between a line… Read More
What to Know About Debt Financing

What to Know About Debt Financing

Building a business requires capital, and unless you have enough cash in savings to bootstrap your business, you’ll need some form of financing to grow your company and achieve your goals. Debt financing and equity financing are the two primary forms of obtaining capital. If you’re considering debt financing, it’s important to know what it is, how it works, and the different financing options available to you as a borrower. What is Debt Financing? In a traditional sense, debt financing… Read More
What’s the Best Type of Small Business Funding For Your Business?

What’s the Best Type of Small Business Funding For Your Business?

This article was reviewed and updated on July 21, 2020. Opportunities for growth arise, equipment breaks, inventory goes on sale, business slows, and operational expenses grow. Sometimes, all of those things happen at once in a small business. Regardless of what circumstance matches your experience, chances are you’ll need working capital to take care of it. While the ideal solution may be to tap into reserve funds to manage costs, that’s not always possible. For many small businesses, money is… Read More