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Showing posts with the label business loans

All You Need To Know About Asset Based Lending Rates

Asset based lending rates are essential in taking out a loan because it will give borrowers an overview of the total amount to repay per month. When you say asset-based lending, it means that you are borrowing money with your assets as a collateral. So if you intend to expand your business and you need extra cash to undertake a small project, you can use your accounts receivables, machinery, inventory or any business asset as collateral.  Asset-based loans have easier requirements than small business loans. All you have to do, to qualify for this loan, is to present a tangible collateral to reduce the risk involved in borrowing a large amount of money. Your asset will make up for the losses of the lending company in the event you failed to pay the money you owed. They recover from the loss by selling your asset.  Asset-Based Lending: How It Works There are two types of asset-based lending you need to familiarize yourself with: ● Business Lines of Credit: This type of asset-based lend

Commercial Loans - What Are the Common Mistakes Made By Borrowers

Today, whether you talk about thriving start-ups or established businesses, acquiring business loans has become quite difficult. Business loan lending has been decreased by 15% since 2008. Banks are also turning down entrepreneurs with outstanding cash and credit reserves in the bank because of their reluctance to fund smaller businesses.

How Can a Business Take a Case to Court Without Breaking the Bank?

Funding a case and going to court can be a very expensive endeavour. The process is complex, lengthy and time-consuming. Some cases can last as long as five-years, therefore the financial costs for businesses can be extremely damaging. Should firms lie back and not pursue justice, simply because it is so pricey to resolve a legal grievance? Or is there a way to take a case to court, without breaking the bank?

Understanding the Role of Invoice Factoring for the Businesses In Need Of Working Capital

In simple terminology, invoice factoring is the situation when company sells all their receivable debt to the other companies. Whenever the company raises invoice to the debtor, a similar copy is forwarded to the factoring company. Then, the factoring company will immediately pay set percentage of the invoice value, which is usually in the range of 75 - 80 percent. The rest is paid to client, once debtor pays the invoice. A factoring company usually takes percentage fee varying from 2 - 6 percentage of the bill value, and that’s how the factoring companies make money from the deal.

The ifs and buts of Crowdfunding

Crowdfunding is a relatively new concept and according to polls conducted by a popular research website last year, the concept has facilitated the success of more than 27,000 different projects, the owners of which had otherwise not be able to accumulate enough funds for their small sized businesses. Even the brightest of ideas would end up settling in the grave with proper funding is not available and that is exactly their crowdfunding comes in. It has always been difficult for small sized business owners to accumulate funds that would serve as capital and the problem has become more severe after the economic turmoil that swept the country a couple of years back. In most of the cases, the financial institutions would advertise that it is very easy for small and medium-sized businesses to have loans but the reality is quite the contrary.