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Do You (Or A Client) Need Business Funding? Check This Out!

Introduction to the Webinar

Welcome everyone! This talk was a bit last-minute because we had some trouble setting up with Zoom. Sorry if you couldn’t join us live. Today, we’re going to talk about business funding options, like lines of credit and loans, that could be used for buying property or other business needs.

Understanding Different Business Funding Needs

First, let’s talk about what different businesses might need. Some might need money to buy equipment, and others might need it to stock up on inventory or start a new project. The requirements for these loans, like how much money you make from your business, can be different depending on what you need the loan for.

Income vs. Gross Sales

When businesses apply for loans, lenders look at how much money the business makes before any expenses, called gross sales. They don’t usually worry about the business’s expenses or what’s left after paying them. For example, if a business wants to borrow $100,000, it should have monthly sales of at least $150,000.

Special Business Funding Options

There are some special loans and options available, like equipment financing, where the equipment you buy with the loan helps make more money for your business. Also, there’s no fixed rule on how long your business should have been running for some types of loans, but usually, six months to a year is good.

Importance of Credit Scores

For many loans, your credit score, which is a number that shows how good you are at paying back money, doesn’t have to be super high. Some loans don’t even check your credit score!

Types of Business Loans and Their Uses

There are different kinds of loans for different things. Some loans are just general, so you can use the money for many parts of your business, like buying supplies or paying for different things as needed. Other loans might be just for buying something specific, like a piece of equipment.

What Lenders Look At

Lenders look at your sales and how long you’ve been in business. They use this info to decide if they think you can pay back the loan. They might also ask about what you’re planning to use the money for to figure out the best type of loan for your needs.

Getting Ready to Apply

When you’re ready to apply for a business loan, you’ll talk about what you need the money for and how much you need. This helps the person giving the loan find the best option for you.

Questions and Documentation

If you’ve ever had a loan before and didn’t pay it back, that could make it harder to get a new loan. So, it’s good to have all your past loan info ready when you apply.

Conclusion

That’s a lot of information, but don’t worry. There are people who can help you figure all this out, whether it’s your first time applying for a business loan or if you’re looking to understand different options better. And remember, talking to a professional can really help make this process easier!

Call to Action

If you think you or someone you know might need a business loan, why not talk about it with a loan expert? They can help you figure out the best option and get you the money you need for your business.



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