This article will give you some ideas on what loans are available for the small business owners and how you can use them to grow your business. The hardest thing about being in business can be getting working capital in tough times. While more sales is ultimately the best way to work out of a tight money situation, many business owners look at getting business loans. It is exciting to think that President Obama is thinking about small business owners and trying to put something in place for us. Right now the reality is a little different. Business owners need to have a deeper understanding of what is going on around them.
I checked on the Los Angeles and the Santa Ana SBA offices. They have admitted that only 10 out of the 250 banks registered with them have contacted them to say that they are participating in the ARC loan program. When I asked viewers for their personal experiences of trying to get an ARC loan, all of them related negative experiences. The bank personnel did not know anything about ARC loans. One viewer says the bank he went to told him that they had no more applications. In the world where banking is run on computer, it is hard to think a paper application was the only way he could apply.
In the past, business owners have used Business Cash Advances, Equipment Collateral loans and SBA guaranteed loans. You can get a business cash advance loan even if you have tax liens and credit issues. A traditional bank will not want to work with that. Business cash advances are given without a personal guarantee or collateral. It can be expensive yet quick to get. A Streamlined Business loan is also known as a merchant cash advance. You use your personal guarantee to cut down the cost of the working capital loan significantly. For people with credit score of 690 or higher and 2 years of tax returns, the applications will be processed quickly.
If you opt for an equipment collateral loan, you will give a personal guarantee and the equipment for collateral. If you are buying brand new equipment, this is how you would finance it. Used or already owned equipment will get you about 50% of the value in hard cash. Again, you must have good credit, the collateral and a personal guarantee.
Private money is an option which is often overlooked. Sometimes when only a small loan is needed this is a good way to go. For those still investing in real estate, private money is a fast way to go.