Where to Get Minority Business Loans From ?

America’s credit crunch did affect many minority businesses. Its adversity left an indelible mark on many small business owners making it difficult to get started or sustain their minority businesses. With the lessening lending options for small business owners, it became impossible for businesses to get hold of their share of grants.

Minority businesses find it very difficult to attain the right amount of loan or even a loan for their small business. No matter what minority business it is, or which background it belongs to, a strong business plan will always be the most significant factor in acquiring a business loan. So before you plan to approach any loan providing firm make sure that your details are all aligned and ready to be discussed. 

Nontraditional financial solutions are available in the market. In a report by National Small Business Association (NSBA) only 59 per cent of small businesses are able to obtain finances for their business. Finances can only be acquired by businesses which have a favorable and profitable business plan and sales record. We have compiled a few options for you where you can acquire loan for your minority business.

                                      
Merchant Advisers can help you gain the working capital that your minority owned business needs to move forward and stay competitive in the market. Merchant advisers offers business cash advances up to $1 million dollars, flexible payment terms, no upfront costs to apply for a business cash advance and no closing costs to worry about either.

The National Minority Supplier Development Council matches more than 15,000 minority- owned businesses with 3,500 corporations who want to purchase goods and services from them. The council also offers loans to participating small businesses through its Business Consortium Fund. Minority Business Development Agency (MBDA), is the only federal agency fostering growth for minority business owners. Micro-Loan Fund provides short-term loans of $1,500 to $25,000 to its members. Many small business entrepreneurs have already acquired loans from them you can also.

Federal and state government agencies do not provide grants to minorities for starting a business. But Small Business Administration (SBA), a government organization guarantees loans for every type of Minority Business. However, there are number of loan programs offered by private companies offering loan on low interest rates. Some non-profit organizations also offer loans for many minority business. No matter which organization you turn to, it is important to have a good understanding for your business needs. Borrowing the right amount will determine the pay back amount.

How to Get a Business Loan With Bad Credit

While the small business lending landscape has been steadily improving over the past year, challenges still remain, particularly for companies that have less than stellar credit histories. Many banks are not willing to provide capital to small business owners who have below average credit scores.

There can be valid reasons why a company might have a poor credit history. During the Great Recession of 2009-10, many small businesses fell behind in payments to vendors or simply could not correct their cash flow issues quickly enough. After all, the hardest time to secure credit is when you are desperate for it.

Fortunately, there are lenders who are willing to take chances on a small business owner who may have run into some short-term financial problems and startup companies that have no credit history whatsoever. However, remember the lenders are usually not "brand names" in the financial services industry; and the interest rates and fees can sometimes be higher than those offered by traditional banks.

 Here are some financing options available to business owners with lower than average credit scores. Merchant Cash Advance is a short-term loan paid in a lump sum to a business owner in exchange for a portion of a company's future credit-card sales. Companies involved in this type of financing offer quick access to cash without requiring excellent credit or substantial collateral.

Some cash advance companies will approve funding requests and forward money in as little as 48 hours. Interest rates are often a bit higher than what traditional lenders charge, however. Business Credit Cards can provide business owners with poor credit histories access to debt financing. Opening a credit rebuilding credit card is one of the best ways for a business owner to repair previous credit damage.

Lasvegas Business Loans for Woman

 If you’re a woman who owns a small business, your financing options are no longer limited to bank loans, SBA loans or small-business grants. There are many choices for small-business loans for women and a host of online small-business lenders that have emerged since the financial crisis hit in 2008. We’ve rounded up several types of small-business loans for women. We gauged lender trustworthiness, market scope and user experience, among other factors, and arranged them by categories that include your revenue and how long you’ve been in business. For a more-general roundup, see our list of the best small-business loans to meet your needs and goals.

Women-owned businesses can also get help in the early stages through grants provided by government agencies and nonprofit organizations. Smart Biz is a quicker alternative to banks offering SBA loans, which typically have some of the lowest rates in the market. The low rates and the 10-year loan term make Smart Biz an attractive option when you want to make major investments to grow your business.

If you don’t qualify for a Smart Biz loan, due to more rigorous SBA requirements, consider Lending Club, which offers competitive rates.If you’re a woman who owns a small business, your financing options are no longer limited to bank loans, SBA loans or small-business grants. There are many choices for small-business loans for women and a host of online small-business lenders that have emerged since the financial crisis hit in 2008.

We’ve rounded up several types of small-business loans for women. We gauged lender trustworthiness, market scope and user experience, among other factors, and arranged them by categories that include your revenue and how long you’ve been in business. For a more-general roundup, see our list of the best small-business loans to meet your needs and goals. Women-owned businesses can also get help in the early stages through grants provided by government agencies and nonprofit organizations. Check out some of these options on the Nerd Wallet Grants and Small Business Loans for Women Entrepreneurs page.

Tips for Getting a Small Business Loans

Need cash? Boost your odds of getting a Small business loan with these simple tips.

 Commercial and industrial lending is increasing for larger companies, but according to the Thompson Reuters / Pay Net Small-Business Lending Index, the number of traditional bank loans to small businesses has fluctuated wildly over the past year. And, let’s face it, small-business owners remain uncertain about what 2013 holds for their business and the economy. 

In fact, in its latest report the National Federation of Independent Business confirms that small-business optimism remains relatively low.“The good news is banks want to make small business loans. It’s just that many banks are not able to properly scale their resources to include all deserving borrowers, even if small-business owners do meet the stringent standards set by lenders,” says James Walter, founder and CEO of BBC Easy, a provider of automated loan management software for financial institutions. 

“The fact is many banks are using outdated technology, so the more organized you can be, the more quickly you can be approved.”If your business needs credit to grow or a temporary infusion of cash, receiving a loan may be difficult in our still-recovering economy. There are important variables in play when banks evaluate your credit worthiness. Walter and BBC Easy’s co-founder, Corey Ross, offer these tips to increase your chances of securing a loan.Get your financial house (and documentation) in order.

Typically, a business needs to have been profitable for the past three years in order to qualify for a bank or SBA loan. Since most lenders will look closely at your credit history prior to making a decision, keep an eye on your credit score and anything in your credit report that might be a red flag. Remember, most banks will require that you personally guarantee the loan, but if you have sufficient collateral within your business to cover the loan principal, they shouldn’t require a lien on your home. Tell your company’s story. “In my prior experience as the co-founder of a lending company, one of the most basic errors made by loan applicants was not telling me why their company needs the money. And they wouldn’t reveal why we should approve the loan even though their company doesn’t meet our minimum standards,” says Walter.

Is your industry experiencing growth? Are you scheduled to partner with a major retailer? What’s your story? “Don’t just say you want a loan, turn in your documentation, and expect the loan officer to rubber-stamp your request,” adds Walter. “Fine-tune your business pitch to include your future prospects–not just highlight past successes.”Go local. A national bank is less likely to hear you out if your business hasn’t been profitable for the last three years. It is also likely that your company will be passed over if you are lacking sufficient collateral to secure a loan.

“Visit a community bank and also inquire about SBA loan programs,” suggests Ross. “Since up to 80 percent of a business loan can be guaranteed by the government under the SBA program, some banks may be more lenient. The downside to this route, of course, is the lengthy paperwork and delay in securing financing due to bureaucracy.”Look at alternative financing for short-term needs. Alternative financing is on the rise as historically profitable or growth-stage companies face shortfalls in cash flow. “Asset-based lending and factoring are good bridge financing avenues for many small businesses,” With factoring, a company sells its accounts receivable to receive a short-term loan of up to 80 percent of its value. 

Asset-based lending is more comparable to the traditional loan process, where a lender will evaluate accounts receivable, inventory values, and fixed assets to determine creditworthiness, and issue a line of credit. If you don’t qualify for traditional bank financing, look at these alternatives, but expect interest rates on these types of loans to be at least double what you’d pay for a traditional loan.

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SMALL BUSINESS LOANS

Small business loans are a great option if you are looking to expand your small business and cannot otherwise obtain traditional financing to grow your business.Typically, when small businesses apply for small business loans, they are really applying for a commercial loan that meets SBA requirements and comes with an SBA guaranty. If business owners are eligible to other financing resources with feasible terms, they would not be eligible for small business loans. 

Anthony Pili, vice president and director of strategic planning states that small business loans are a good option for small businesses if they did not qualify for a bank loan, yet have a specific use for the funds that will help grow their business. Some specific uses would be new machinery, orders are outpacing supply, an additional truck or location to help meet profitability or extra employees. 

Additional good uses for small business loans would be refinancing high rate debt, buying the building in which the business operates or buying out a competitor’s business.A bad example for taking small business loans would be acting on a hunch. For example, taking out a loan for advertisement in a newspaper or billboard and think that customers will simply come. 

That is usually not the case.The SBA offers many different loan programs to help small business grow and succeed. The different programs range from guaranteeing a bond, helping business owners find capital to providing assistance to expedite a loan involving a third party lender. It is recommended that prior to applying for any type of small business loans assess your needs and financial health of the business.

 Consider the strength of your industry, the strength of your team and how you will put the loan to use and how you are going to pay it back.To answer these questions, make a business plan. Lenders will appreciate a well thought out plan prior to their approval.Although a typical business loan has lower fees, is easier and faster to obtain, small business loans offer many important advantages such as getting a loan in the first place at specific stages of your business’s development.

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