The IDEA Publishing
  • HOME
  • Popular IDEAS
    • IDEAS for Your Better Business Life >
      • The Business Idea
      • The Career IDEA
      • The Money Idea
    • IDEAS for Your Better Diversions >
      • The Tech IDEA
      • The Travel IDEA
      • The Auto IDEA
      • The Outdoors IDEA
    • IDEAS for a Better Table >
      • The Food IDEA
      • IDEAS de Cocina Espanola
    • IDEAS for a Better You >
      • The Health IDEA
      • Living Well IDEAS
      • The Fitness IDEA
      • The Beauty IDEA
    • IDEAS for a Happier Home >
      • The Home Idea
      • The Entertaining Idea
      • The Parenting Idea
      • The Senior Living IDEA
      • The Pet IDEA
  • The Video Domain
    • Video IDEAS for Your Better Business Life
  • About
  • Contact
  • ads.txt
the_business_IDEA
The Business IDEA

The Business IDEA

Your Source for the Best and Newest Thinking in Business
   

Seeking a small business loan? What you should know

7/21/2017

 
woman-female-small-business
Female entrepreneur serving at her bakery


(BPT) - Small businesses still struggle to obtain credit; nearly half of those who applied for credit in 2016 didn’t get all the funding they sought, and 17 percent of those who didn’t apply for financing skipped it because they didn’t think they could get what they needed, according to the Federal Reserve Banks’ Small Business Credit Survey. However, a growing number of small businesses are turning to alternative sources of financing.

“The process for accessing and receiving funding can be slow and cumbersome and alternative forms of lending are greatly helping to improve the availability of financing for small business owners,” says Jacqueline Reses, head of Square Capital. "Ensuring that the financial system is more inclusive and addresses the needs of small business owners who may have been previously underserved by traditional lenders is paramount."

The Federal Reserve study has shown steadily increasing numbers of small businesses, with annual revenues of less than $1 million, seeking financing through non-traditional sources such as online lenders. In 2014, just 18 percent applied to online lenders, while in 2016, 21 percent did.

As the alternative lending industry continues to grow, small business owners should keep five points in mind when evaluating loan offers, Reses says:

Total payback amount of a loan


Knowing how much a loan is going to cost isn't always easy. For a small business owner, being able to see exactly how much you will need to repay and accounting for that in your budget is crucial, and you should always look for transparency. Total payback amount is the dollar value that represents all costs, so business owners know exactly what they will owe over the life of the loan.

Businesses should look for this when they assess loan offers. Assessing offers solely on other metrics like APR may not always provide a fair or easy comparison.

Repayment Method


The ease of repayment is also important to consider and there are some unique options available to small businesses looking for flexibility when it comes to repayment. With Square Capital for example, a fixed repayment amount is automatically deducted from the business’s daily card sales processed through Square until the loan is repaid, enabling the business to pay more when things are busy and less if things slow down. Businesses also have the opportunity to repay early and without penalty at any time before the end of the loan term.

Speed


Traditional small business loans can take weeks to process from the time you collect all the paperwork to apply, to the time you actually get approved, to when you see the money in your account. Yet, according to the Fed's survey, the majority of small businesses that applied for credit in 2016 did so in situations where time was a factor; 64 percent wanted to expand their business or take advantage of a new opportunity, and 45 percent needed the money to cover operating expenses.

While some funding sources have a reputation for being faster to approve, getting the money can still take time small business owners don’t have. Others have been able to tackle both of those challenges. For example, Square Capital can see the health of a small business based on its sales and transaction data, allowing it to evaluate the business's stability and actual ability to repay over time. With this unique insight, it can assess eligibility for a loan and deliver offers right to the small business owner. From there, an application takes as little as a few clicks to complete and once approved, funds are deposited as quickly as the next business day.

Affordability


Business owners may know how much they need, but be less aware of what size loan they can afford. It's important to accept a loan offer that your business can repay within a reasonable time period while also helping it grow.

Square Capital's ability to use unique data to assess the eligibility of a business for a loan also enables it to provide access to loan offers tailored to a business's cash flow, reducing the risk of businesses borrowing more than they can afford to repay. Loans are sized based on a reasonable projected payback period so that a small business can use its funds to grow and not be stuck in debt for extended time periods.

Trust


Before applying for credit from any lender, it’s important to do your research. Know how they present their offers, look for transparency and flexibility that puts the borrower first and understand customer satisfaction and lender dependability. Working with a trusted brand is important to many small business owners and should be to you as well.

While online lenders are opening up access to the financing small businesses need to run and grow, it's important to do your homework and carefully determine which financial partner best meets the needs of your business. To learn more about small business loans through Square Capital, visit www.squareup.com/capital.


KEYWORDS:
  • BPT ×
  • Brandpoint ×
  • Brandpoint Content ×
  • small business ×
  • entrepreneurs ×
  • growth ×
  • capital ×
  • finance ×
  • finances ×
  • personal finance ×
  • personal finances ×
  • loans ×
  • debt ×
  • profits ×
  • profitability ×
  • business owners ×
  • business plan ×
  • family businesses ×
  • loan ×
  • bank ×
  • banking ×
  • cash flow ×
  • cash ×
  • line of credit

Comments are closed.



    Archives

    February 2022
    June 2021
    May 2021
    April 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    April 2020
    March 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    January 2019
    September 2018
    August 2018
    July 2018
    June 2018
    April 2018
    February 2018
    January 2018
    November 2017
    September 2017
    August 2017
    July 2017
    June 2017
    April 2017
    February 2017
    December 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015


    Interested in Publishing on The Business IDEA?

    Send your query to the Publisher today!


    Categories

    All
    351
    464
    Abandoned Carts
    Accounting
    Action Plan
    Advancement
    Adversity
    Advertising
    Advice
    Africa
    Age
    Aging
    Agriculture
    AI
    Amazon
    Amenities
    Apple
    Applications
    Apps
    Art
    Artificial Intelligence
    Aspirations
    Attention
    Attention To Detail
    Attitude
    Attorney
    Automation
    Automobiles
    Autonomy
    Autos
    Bank
    Banking
    Benchmarking
    Benchmarks
    Benefits
    Best Practices
    BI
    BPT
    Brand
    Branding
    Brandpoint
    Brandpoint Content
    Bravery
    Budget
    Budgeting
    Buildings
    Business
    Business Cards
    Business Education
    Business Ethics
    Business Intelligence
    Business Model
    Business Owners
    Business Plan
    Business Strategy
    Buzzword
    Buzzwords
    BYOD
    Capital
    Car
    Care
    Career
    Careers
    Cars
    Cash
    Cash Flow
    Celebrity
    CEO
    Change
    Charity
    Christmas
    Clients
    Cloud
    Cloud Computing
    Collaboration
    Colleagues
    College
    Commitment
    Communication
    Communications
    Communities
    Community
    Companies
    Company
    Compensation
    Compete
    Competition
    Competitive Advantage
    Competitors
    Computer
    Computers
    Connections
    Consultant
    Consulting
    Consumer
    Consumer Behavior
    Consumer Products
    Consumers
    Content Marketing
    Continuous Improvement
    Convenience
    Corporate Strategy
    Costs
    Coworkers
    Creative
    Creativity
    Credit
    Credit Card
    Credit Cards
    Credit Score
    Culture
    Customer Experience
    Customer Loyalty
    Customers
    Customer Service
    Cybersecurity
    Dale Carnegie
    Data
    Data Analysis
    Data Security
    Debt
    Delivery
    Design
    Desks
    Dialogue
    Digital
    Direct Sales
    Direct Selling
    Direct Trade
    Discovery
    Diversity
    Donation
    Dreams
    Driverless Cars
    Driving
    Earnings
    Ecommerce
    Education
    Efficiency
    Email
    Email Marketing
    Emerging Technology
    Employee
    Employee Benefits
    Employee Engagement
    Employees
    Employee Satisfaction
    Employers
    Employment Law
    Endorsements
    Energy
    Engage
    Engagement
    Entertainment
    Enthusiasm
    Entrepreneur
    Entrepreneurial
    Entrepreneurs
    Environment
    Ethical
    Ethics
    EX
    Expense
    Expenses
    Expert
    Expertise
    Experts
    Facebook
    FaceTime
    Facilities
    Factoring
    Failure
    Fair Trade
    Family
    Family Business
    Family Businesses
    Family Features
    Farmers
    Fear
    Feedback
    Female
    Fiancial Aid
    Finance
    Finances
    Financial
    Financial Aid
    Firing
    Fitness
    Flexibility
    Flexible
    Food
    Founder
    Founders
    Franchise
    Franchising
    Freelancer
    Freelancing
    Freight
    Fulfillment
    Funding
    Funds
    Generations
    Gig Economy
    Global
    Goals
    Google
    Green Business
    Growing
    Growth
    Hacks
    Hazards
    Health
    Health Benefits
    HealthCare.gov
    Health Insurance
    Hiring
    Holiday
    Holidays
    Home
    Home-based Businesses
    Home Values
    Hotel
    Hotels
    HR
    HRM
    Human Resources
    Ideas
    Income
    Income Tax
    Income Taxes
    Industry
    Information Technology
    Infrastructure
    Innovation
    Innovations
    Insights
    Inspiration
    Instagram
    Integrity
    International
    Internet
    Internet Of Things
    Inventions
    Invest
    Investing
    Investments
    Invoice
    Invoicing
    IRS
    IT
    IT Strategy
    Job Hunting
    Jobs
    Law
    Lawyer
    Leaders
    Leadership
    Legal
    Lifehacks
    Lifestyle
    Line Of Credit
    List
    Listen
    Listening
    Lists
    Loan
    Loans
    Location
    Logistics
    Loyalty
    Loyalty Program
    Manage
    Management
    Manager
    Managers
    Managing
    Mangement
    Manufacturing
    Marketing
    Marketing Plan
    Mass Production
    MCA
    Medium
    Mentality
    Mentor
    Mentoring
    Merchant Cash Advances
    Microbusiness
    Microbusinesses
    Milestones
    Mindset
    Mitigation
    Mobile
    Mobility
    Money
    Money Management
    Morality
    Motivation
    Name
    Network
    Networking
    Network Marketing
    Nonprofit
    Nonprofits
    Obamacare
    Offers
    Office
    Office Environment
    Offices
    Office Space
    Online
    Online Marketing
    Online Shopping
    Operations
    Opportunities
    Opportunity
    Optimism
    Organization
    Organizational Culture
    Original
    Originality
    OSHA
    Outlook
    Pain Points
    Paperless
    Parents
    Partnerships
    Passion
    Passions
    Payments
    Performance
    Perks
    Personal Finance
    Personal Finances
    Personalization
    Personnel
    Persuasion
    Phone
    Pitch
    Plan
    Planning
    Point Of Sale
    Policies
    Policy
    Porifts
    POS
    PR
    Praise
    Presentations
    Price
    Pricing
    Principles
    Procedure
    Procedures
    Process
    Production
    Productivity
    Products
    Professionals
    Profit
    Profitability
    Profits
    Promotion
    Promotional Materials
    Promotions
    Prospects
    Psychology
    Public Relations
    Quality
    Real Estate
    Realtors
    Recordkeeping
    Records
    Regulations
    Relax
    Relaxation
    Remodel
    Reputation
    Research
    Results
    Resume
    Retail
    Retailing
    Retention
    Retirement
    Return On Investment
    Revenue
    Reviews
    RFID
    ROI
    Role Models
    Rural
    Safe
    Safety
    Salary
    Sales
    Satisfaction
    Savings
    Second Job
    Security
    Self-help
    Selling
    Senior Citizens
    Seniors
    Service
    Service Industry
    Services
    Service Sector
    Setbacks
    Shipping
    Shopping
    Shopping Cart
    Side Hustle
    Site
    Small Business
    Small Businesses
    Small Business Owners
    Smartphone
    Smartphones
    SME
    Social
    Social Media
    Social Responsibility
    Software
    Speed
    Spending
    Startup
    Start Up
    Startups
    Steve Jobs
    Stock Market
    Strategic
    Strategic Management
    Strategy
    Stress
    Success
    Successful
    Suggestions
    Support
    Survey
    Survival
    Suuggestions
    Systems
    Tablets
    Tactics
    Target Marketing
    Taxes
    Team
    Teamwork
    Tech
    Technology
    Testimonials
    Time
    Tip
    Tips
    Touch Points
    Toxic Employees
    TQM
    Traffic
    Train
    Training
    Transport
    Transportation
    Travel
    Travelers
    Traveling
    Trend
    Trends
    Trucking
    Trunover
    Trust
    Turnover
    Twitter
    University
    Video
    Videos
    Visibility
    Vision
    Wages
    Wall Street
    Wealth
    Website
    Websites
    Well-being
    Wellness
    Women
    Womens
    Work
    Work And Family
    Workers
    Workflow
    Work History
    Workplace
    Workspace


    Interested in Publishing on The Business Idea?
    Send your query to the Publisher today!





    Get this business content for your website with our RSS Feed below!

    RSS Feed

Powered by Create your own unique website with customizable templates.
  • HOME
  • Popular IDEAS
    • IDEAS for Your Better Business Life >
      • The Business Idea
      • The Career IDEA
      • The Money Idea
    • IDEAS for Your Better Diversions >
      • The Tech IDEA
      • The Travel IDEA
      • The Auto IDEA
      • The Outdoors IDEA
    • IDEAS for a Better Table >
      • The Food IDEA
      • IDEAS de Cocina Espanola
    • IDEAS for a Better You >
      • The Health IDEA
      • Living Well IDEAS
      • The Fitness IDEA
      • The Beauty IDEA
    • IDEAS for a Happier Home >
      • The Home Idea
      • The Entertaining Idea
      • The Parenting Idea
      • The Senior Living IDEA
      • The Pet IDEA
  • The Video Domain
    • Video IDEAS for Your Better Business Life
  • About
  • Contact
  • ads.txt