Welcome to Small Business Loan Resources! Here you will find a list of business loan providers and tips on how to prepare your loan application and get it approved.

1. Small Business Association (SBA)

The SBA is one of the major sources for business funding. They provide equity capital, loans, and other forms of financing for small businesses. Through the America’s Recovery Capital (ARC) Loan Program offered by the SBA, small business owners can borrow up to $35,000 in short-term loans to help relieve the hardship their businesses are facing. Find out more about the ARC Loan Program here.

2. Merchant Loans

There are many companies that provide private funding to small businesses. You can get cash advances based on certain criteria up to $10,000, loans from $10,000 to $1,000,000. Our web site provides information on these merchants so be sure to look around.

3. Factoring

It is not uncommon for a small business to suffer from cash flow problems. Typically you are required to pay your expenses immediately as they incur unless your vendors are willing to extend credit to you. However, your customers may be paying you on NET 30 or 60 or even 90 terms. As a result you will need to have enough cash on reserve to keep the business going.

There are financing companies that will buy your future invoices and advance cash to you immediately. This is known as “factoring.” So instead of waiting to be paid by your clients 30 or 60 days later, you can now receive the payment from the factoring company and pay your expenses and even expand your business.

Factoring is not cheap, however. Typically they charge a fee of 2 – 4% for a NET 30 invoice. However, when your business is in a cash crunch the “cost” of money is not as important as the “availability” of the money. This is not the same as getting a business loan but it does give you the short term financing your business needs. In fact, many start-up businesses are able to survive their critical first years by utilizing factoring to avoid cash flow issues.

Financing is no doubt the major hurdle in starting a new business. The best way to get the needed funding to start or expand your business is to obtain an unsecured business loan. This type of loan allows you to utilize it based on your business needs without any restrictions. It is really be the best option if your business is facing financial troubles.

What Do You Need to Apply For A Small Business Loan?

Preparation is the key in getting approved by the lender. Below we take a look at a few items you will need in order to complete the application.

Business Plan:

This is by far the most important piece of information that you will need to provide to the lender. Make sure you have a completed full plan not just a draft. Without a sound business plan, you will most definitely be rejected for a business loan.

Co-Signers:

If you have any partners in your business, be sure to include them in your loan application. They are also required to be present when you go to apply for the loan.

Credit Report:

The lender will typically look at your personal credit history even though the loan is for your business. In addition, each person that is a partner in you business will also need to bring his or her credit report. In this case the one with the best credit will be the main signer. Here is a place you can go to get a free 3-in-1 credit report.