Turn Debt Problems Into Opportunities

If you are feeling down about your financial outlook, but are anxious to start a business, you can turn your debt problems into business opportunities. I won’t blow smoke up your skirt and say it will be easy, but you can do it if you are smart and make the right moves.

Business opportunities always exist for those who are open to trying new things, but most business start ups require some amount of money. The old saying “you can’t make money without spending money” is usually true. So how do you get the money you need if you have debt problems? You need to take some important steps to ensure your best chance of success.

Know Where You Stand

It may seem like a no-brainer, but you might be surprised at how many people opt to not know the specifics about their financial situation. They know things are bad, but are afraid to look at credit reports and find out just how bad.

You might even find that your credit isn’t as bad as you thought it was. However, if you do find that your score is extremely low, you can only make the moves you need to correct problems by knowing what debt problems you have.

Know Exactly Where Your Money Goes

Besides your credit report, you need to examine your current spending habits in order to make room for business opportunities. If you don’t have an official budget, take the time to write down everything you spend on a monthly basis. This will give you an idea of your personal cash flow, and where you might be able to get some extra cash to start your business.

Pay Down Existing Debt

The fastest way to improve your credit score is to pay off debt. Do what you can to pay off each account with money you have discovered in your personal budget. Even if it is just a small amount of money each month, you can whittle away your debt slowly but surely.

Think like a Millionaire

After paying down your debt, and getting your credit score up, start thinking like a millionaire. Pay yourself a monthly amount that you put away and never touch. Look for high interest ways to invest safely while you are doing this so the money works harder for you. As you save you can look for ways to get loans as well now that your credit is cleared up, so that you can begin truly capitalizing on your business opportunities.

Small Business Start-Up Loans - A Great Aid for Start-Up Businesses

Small start-up businesses need loans more than owners of established businesses. For small enterprises, loan is required at almost every step of setting up the business. However, in most cases, small business owners find it difficult to obtain loans from conventional lending sources at reasonable rates. Start-up businesses in most cases cannot adequately fulfill the eligibility criteria set by banks and other conventional lenders.

Small Business Administration (SBA) is a government agency providing financial assistance to start-up businesses with the aim of improving the nation's economy. The small business start-up loans are not issued directly by the SBA to the borrowers. Instead, they work through their lending partners, including micro-lenders, community development organizations and private-sector lenders, who provide these loans to small businesses on the basis of the SBA terms and conditions.

SBA offers a wide variety of loans that cater to the financial requirements of different businesses. Let us discuss the various types of start-up business loans provided by SBA:

SBA 7(a): You can use an SBA 7 (a) loan for various purposes including:

• Purchasing machinery, furniture, equipment, fixtures, materials or supplies required for a business.
• Purchasing real estate including buildings and land.
• Establishing a new business or expanding an already established one.
• Meeting long-term working capital needs for paying accounts payable and operating expenses and also for purchasing inventory.
• Meeting short-term working capital needs such as contract performance, exporting, seasonal financing and construction financing.
• Constructing a new building or remodeling an already existing one.
• Refinancing an existing business debt.

There are various advantages of a 7 (a) loans over conventional loans such as:

• Easier eligibility criteria than conventional loans.
• Lower down payment rates on fixed assets.
• Longer maturity periods than conventional loans.

7 (a) loan amounts range from $350,000 to $3.5.

SBA 504: SBA 504 credit proceeds can be used for the following purposes:

• Purchasing real estate including land and already existing buildings.
• Constructing new facilities or renovating or remodeling already existing facilities.
• Purchasing equipment and machineries.

Like 7(a), the various advantages of SBA 504 include:

• Lower down payment rates on fixed rates.
• Extensive maturity periods than conventional loans.
• Easier eligibility criteria than traditional lends.

Loan amounts for SBA 504 starts from $350,000 and do not have any maximum limit.

SBA Express and Patriot Loans: These credits can be used for various purposes including:

• Purchasing inventory or vehicles.
• Meeting working capital needs.
• Purchasing equipment.

The advantages of these credits include:

• Easier eligibility criteria than conventional lends.
• Longer maturity periods than most conventional credits.

The loan amount of SBA express credits and Patriot lends range from $25,000 to $350,000.

It should be kept in mind that not all the banks providing SBA small business start-up lends offer the same SBA loan programs. In addition, the creadit requirements and the eligibility criteria for the borrowers may vary from bank to bank based on the bank policies and their individual terms and conditions.

How to Get Unsecured Business Loans

There will always be companies that will make room to expand their business. When they are ready to do so, more than likely they will need an unsecured business loan. Unsecured business loans can help with business expansion as long as they are increasing in profits.

Here is some criteria you can use to know if you need unsecured business loans for your company:

1. You have an increase in products that customers are buying.
2. You have more customers than last year
3. You have both elements of the above.

Since it will take more money to keep these factors in place, it is not secret that the lenders will want to provide your business with more money to help your business grow. Not only does it benefit you, it also benefits them as well.

Even though your business is growing, you are still responsible for keeping your business expenses at a reasonable amount. The less your expenses are, the more profit you will stand to make. Take your time when you're looking at business expansion.

You don't want to have too much funding from unsecured business loans. If you grow too fast and don't have enough capital to cover it, then you will lose out and possibly have to close your business.

When you're ready to fund your business expansion, you will need to know how to get unsecured business loans. Your company should have a good credit history. This will help when you get ready to apply. If your expansion plan looks good on paper, then the lender will look at you favorably.

If you are in a growing industry, it will be easier for you to get a loan for your business. The lenders will ask for your credit report and scores. If they are acceptable, then more than likely, you will get the unsecured business loans for your expansion.

However, it's a good idea to have a loan consultant that can steer you to the right lenders. The last thing you want is lenders that just want to get as much money as they can from you. You must also prove to them that you have a positive cash flow to make payments on the loan.

The loan consultant and lender should look out for your best interests. Sometimes, it can be difficult for you to take the reins on your business growth and can use an extra hand to help out. An unsecured business loan will help you to get on the right track and stay there.

The best thing about this is it does not take long to find out about the approval process. Because it's done online, it takes less time. Within 24 to 48 hours, you can find out if you made the cut to get an unsecured business loan. Getting one can not only help to expand your business, but also increase the business coffers as well.

Finding the right loan consultant for your business interests may take a minute; but when you find the right one, you'll be on your way to a larger business and more profits.