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The Most Popular Uses of Small Business Loans

Categories: Finance Online
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SBA Loan Application

SBA Loan ApplicationA small business loan is ideal for funding purchases that you need to make for your company. You can use the loan for anything that your business may require for smooth operations.

Some of the more common uses of a small business loan in Ogden include:

  • Inventory
  • Equipment
  • Employee Wages/Benefits
  • Expansion

Not all companies need additional capital for all these categories, but most businesses will need extra funds for one or two of them.

Inventory

If you sell products, it is important to have the goods in stock. A business loan can help you buy your inventory or the materials to create your products. You must have a detailed plan to sell your inventory. Otherwise, you may end up with a huge amount of unsold products and a big debt on your shoulders.

Equipment

Your business may need equipment to facilitate your production process. If you don’t have enough funds yet to buy the equipment, a small business loan will come in handy.

Employee Wages and Benefits

If you are in the business of providing services instead of products, you need well-trained manpower. This will facilitate the delivery of your services to clients. While you can get a small business loan to pay your employees, you need to have a clear plan on turning your employees’ productivity into revenues.

Expansion

If you need to expand your business even if you have already reached a certain level of success, you may need extra funding to get your expansion plans rolling. Armed with a good business plan, you can apply for a small business loan and get the cash you need for your expansion project. Once you start reaping the benefits of your growing business, you will not have much difficulty in repaying your loan.

If your start-up or small business needs additional operating funds to keep afloat in today’s highly competitive business environment, you can always apply for a loan. Look for a lender who offers great deals and competitive rates.


What You Need to Know About SBA Loans

Categories: Finance Online
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SBA Loan Application Form

SBA Loan Application FormManaging a small business can be tough. You need to have enough funds to keep it afloat. Other than that, you need to deal with many expenses associated with small business management, such as buying equipment, funding your marketing campaign, and payroll for your employees.

When you need emergency funds, taking out small business loans can be an option. These types of loans, however, are different from the traditional ones. Wasatch Peaks Credit Union provides some helpful information about US Small Business Administration or SBA loans.

Where to Get the Money

There are many potential sources for small business loans. From banks, credit unions, to online lenders, the important thing is to know the interest rates they are offering and the payment terms available. Take note, however, that the Small Business Administration only offers resources and does not offer loans.

What are the Requirements?

Depending on the lender, you may need to provide certain information, such as the number of years you have been doing business or the purpose of the loan. For this, you will need a well-written and detailed business plan. It will include your personal information, goals and mission, projected cash flow and profits, and others.

How Will You Pay the Loan?

The payment terms will depend on the amount borrowed and the interest rate. Adding collateral may result to a better rate. Payment could either be monthly or in one lump sum. It is important to understand the terms of the loan before applying.

Are there Other Considerations?

When applying for a small business loan, you may need to submit a personal guarantee. For example, if you are not able to pay the loan, the lender may take your assets to cover the amount you owed. This will depend on how long you have been in the business, the collateral, or your credit history. Any default in payment could lead to a civil case, which could only be resolved by paying the debt or filing for bankruptcy.

Taking out an SBA loan can help keep your business operational. But it will entail a lot of responsibility and diligence on your part. Make sure you understand the terms and your obligations before applying for a loan.