News & Tips

Why Is Obtaining a Small Business Loan So Hard?


Source: LoanNEXUS

Getting a small business loan can be challenging for many entrepreneurs, especially if they are new to the market or have a low credit score. There are several factors that lenders consider when evaluating a loan application, such as the business’s credit history, collateral, income, debt, and capital investment. These factors help lenders assess the risk and profitability of lending to a small business.

Some of the common reasons why small businesses struggle to get a loan are:

Lack of collateral: Collateral is an asset that the borrower pledges to the lender as a security for the loan. If the borrower fails to repay the loan, the lender can seize and sell the collateral to recover their money. Many small businesses do not have enough collateral to secure a loan, or they may not want to risk losing their personal property if they default on the loan.

Poor or insufficient credit: Credit is a measure of how well a borrower has managed their past and current debts. Lenders check both the personal and business credit reports and scores of the borrower to determine their creditworthiness. A low credit score or a limited credit history can indicate that the borrower is not reliable or responsible with their finances, and may not be able to repay the loan on time.

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March 27, 2024 |

Popular Types of Small Business Financing

smallbusinessblog | LoanNEXUS

Source: LoanNEXUS

There are different types of financing for small businesses, depending on their needs, qualifications and preferences. According to the Library of Congress, financing for small business can be classified into two main categories: equity financing and debt financing. Equity financing is funding given in exchange for partial ownership and future profits, while debt financing is money that must be repaid, usually with interest.

Some of the most common types of debt financing for small businesses are:

Term loans: These are loans that are repaid in regular installments over a fixed period of time. Term loans can be obtained from banks, credit unions or online lenders, and can have low interest rates and competitive terms for well-qualified borrowers.

SBA loans: These are loans that are guaranteed by the U.S. Small Business Administration (SBA), which reduces the risk for lenders and makes it easier for small businesses to access capital. SBA loans can be used for various purposes, such as working capital, expansion, equipment or real estate. SBA loans have low interest rates and long repayment terms, but they also have strict eligibility requirements and a lengthy application process.

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May 28, 2023 |

13 Ways to Grow Your Business Quickly

Business News Daily | LoanNEXUS

Source: Business News Daily

There’s no surefire formula for instant success, but you can boost your business’s growth with these tips from startup founders.

– Growing a business may take time, but there are a few things you can do to scale your company more quickly.

– Calculating the growth rates of various metrics and then comparing them to one another gives you a more complete picture of your business’s trajectory.

– While there is no way to guarantee success, implementing these tips can put your business in the best position to succeed and grow.

This article is for entrepreneurs who want to measure their business’s growth while continuing the success of their company as it scales.

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February 26, 2023 |

3 Cash Flow Mistakes to Avoid at All Costs


Source: Entrepreneur Partner Studio Staff

The long-term success of a business hinges on more money coming in than going out. Follow these tips to help make sure your business stays in the black.

As a business grows, so does the list of responsibilities on an entrepreneur’s list. Letting cash-flow management slip to the bottom of that list can spell disaster for small businesses.

Having a solid cash-flow management strategy is crucial to keeping your business’s growth and financials on track, but sometimes it can be difficult to identify problem areas before they can affect that strategy. Here are three common cash-flow mistakes for small-business owners to avoid so that they can keep growth at the forefront of their operations.

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November 22, 2022 |

Here Are 3 Alternatives to Business Loans

0 | LoanNEXUS

Source: | The Ascent

When you own a business, there often comes a point where you need to borrow money to maximize growth. Although many lenders offer business loans, they generally have revenue and time in business requirements that some companies will have trouble meeting. Even getting an SBA loan can be difficult for newer businesses.

If business loans are out of the question, here are three other funding options that could work for your business.

1. Personal loans
A personal loan is one of the most flexible types of loans you can get. While most loans must be used for a specific purpose, a personal loan can be used for just about anything, including business expenses.

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October 30, 2022 |

U.S. small business sentiment rises in August, NFIB survey shows


Source: Reuters

WASHINGTON, Sept 13 (Reuters) – U.S. small-business confidence improved in August as worries about inflation subsided and demand for workers remained strong despite the uncertainty shrouding the economy, a survey showed on Tuesday.

The National Federation of Independent Business (NFIB) said its Small Business Optimism Index increased 1.9 points to 91.8 this month, reversing some of the deterioration suffered in the first half of the year.

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September 21, 2022 |

Self-made millionaire Bethenny Frankel on why good ideas are not enough to be successful in business

LoanNEXUS -CNBC Bethenny Frankel

Source: CNBC

“I truthfully didn’t even know the word entrepreneur. I was in my late thirties, and I didn’t know the word ‘brand,’ I didn’t know the word ‘entrepreneur,’” Bethenny Frankel, founder of SkinnyGirl, told Sharon Epperson at the CNBC Small Business Playbook virtual summit on Wednesday.

Now, just over a decade later, Frankel is a widely successful and self-made entrepreneur, who sold her pre-packaged low-calorie margarita, Skinnygirl Cocktails, for a reported $120 million, and continues to delve into a series of ambitious business ventures with her Skinnygirl lifestyle brand, ranging from specialty food items to branded apparel.

While she may not have always envisioned a life in business, she always envisioned her next big idea, and what it would take to turn it into reality, she told Epperson.

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August 14, 2022 |

Small Business Owners Are Still Struggling in New York


Source: New York Times

“I feel like it’s 50-50,” said the owner of a Brooklyn coffee shop who is finding it hard to rebound from the pandemic.

Kymme Williams-Davis opened a coffee shop in Brooklyn called Bushwick Grind in 2015. She spent $200,000 renovating the space she rented and added a kitchen. She specialized in coffee brewed from locally roasted fair-trade beans.

Bushwick Grind did well until the pandemic hit and the shop had to close for nine months.

But as my colleague Lydia DePillis wrote, running a small business hasn’t gotten any easier since Bushwick Grind reopened. Foot traffic has yet to rebound. Williams-Davis’s expenses for coffee and other ingredients have skyrocketed, in part because farmers from upstate New York she used to depend on are saving on gas by driving to the city less often.

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July 30, 2022 |

How Being a ‘Mompreneur’ Prepared Me to Run a Multi-Million-Dollar Business


Source: Entrepreneur

Being a “mompreneur” has taught me everything I need to know and understand in running a successful multi-million dollar business operation. Some of the top strategies I use today resulted from my experience as a mom raising two children on the autism spectrum, but they could apply to all the other working moms (and dads) out there. Here are five of the most essential.

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January 11, 2022 |

4 Tips to Help Latina Business Owners Achieve Success

US Latino Businesses | LoanNEXUS

Source: Cision – PR Newswire

As we celebrate Hispanic Heritage month this year, it’s a good time to recognize the many contributions of Hispanic small business owners. And there truly are many. Wells Fargo served as lead sponsor of the Latino Donor Collaborative’s U.S. Latino GDP Report, which tracks the growing influence of the Latino community within the U.S. economy, and the results are incredibly promising. Latinos contributed $2.7 trillion to the U.S. GDP in 2021, equivalent to the seventh largest economy in the world, and they’re growing 57% faster than the U.S. economy overall. From 2010 to 2019, the U.S. Latino GDP was the third-fastest growing among the 10 largest GDPs in the world, with the U.S. economy ranking fourth. Latinos are also accounting for 68% of the growth in U.S. labor participation.

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October 17, 2021 |
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