What You Need To Know About The Role Of The SBA
The Small Business Administration (SBA) does not lend money, it simply acts as insurance for lenders, such as banks, with 3 loan programs
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Loans
Why You Need To Know How to Benchmark Your Financial Ratios
Financial ratios measure the relative health of your business as it compares with other businesses in your industry.
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The 5 “C’s” of Credit
When a business approaches a lending institution about debt financing, the lender conducts an evaluation of the borrower using a method known as the 5 C’s of Credit
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What You Need To Know About The Debt Continuum
Within the world of debt financing, there is a continuum, as different lenders have different appetites for risk and reward.
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Why You Need To Understand Your Credit Score
When entrepreneurs look at debt financing, their credit score (FICO) plays an important role in being able to get a loan. Essentially, a person’s credit score is computed on five dimensions, each with a different weight.
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What You Think You Know about Credit Is Just Wrong
There is a huge difference between consumer credit and business credit. Consumer credit funds consumptions while business credit is known as “leverage” and is applied to the purchase of an income-producing asset. As individuals, consumer credit is generally a method we use to obtain what we desire sooner than if we were forced to save
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A Step by Step Guide to Business Financing
Several weeks ago, Sara Pope of ConsumerAffairs.com, reached out to me and asked if I could review a step-by-step guide to business loans and financing that her company had produced. My initial reaction was to just say no. My inclination to decline her offer was based on my experience with hundreds of nascent entrepreneurs. All too
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Get Your Private Employer to Pay Your Start-up Costs
A few weeks ago we discussed using a loan from your 401k plan to fund your startup. With a 401k plan, the employer often provides a match to the employee’s contribution. Both IRAs and 401k plans are consider defined contribution plans, meaning the contributions are fixed, but the returns are based on the returns from
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Using a 401k Loan to Fund Your Business
Retirement accounts qualify for special tax treatment by the IRS. A common retirement account is a 401k, where pretax dollars from you, which are often matched by your employer, are deposited into an account and allowed to grow tax-deferred. These funds are designed to create income during retirement and are subject to premature distribution penalties
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Using a Self-Directed IRA to Fund Your Business
By transferring a traditional IRA into a self-directed IRA, the IRA owner can invest in private businesses and in real estate as well as traditional sources
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