As an entrepreneur, you know that you have to spend money to make money. Whether you’re just starting, trying to expand, or you need a cash infusion to manage some unexpected expenses, getting a business loan is a necessary part of the enterprise process.
If you’ve decided to start looking for financing opportunities to purchase new equipment, meet payroll during a slow month or quarter, upgrade stores or offices, or buy land, there are important things to consider before choosing and applying for a loan. These five items can help you better understand commercial lending options and identify the financing path that is best for you and your businesses.
The government shutdown in January had an impact on many facets of small business operations. One direct impact comes from the SBA, where a backlog of loan applications occurred and will take time to approve or deny.
In December Senators Sherrod Brown of Ohio and Senator Marco Rubio introduced the Small Business Lending Fairness Act, which is dedicated to helping prevent predatory lending to small businesses. This is a different lending act than the one recently passed in California, which focused on providing transparency to borrowers.
Anyone that runs a business knows that cash flow is one of the most challenging components of keeping your business running smoothly. On paper, the balance sheet might look great, but the asset you need to tap to pay employees is a big line item called “accounts payable.”
Last fall California legislators passed CA SB 1235, a first of its kind law which aims to add transparency to the lending process for small business borrowers. If you operate a business in California the law will certainly affect your future loan applications. However, even if you are located outside of the Golden State, it may still have an impact on business.