Subscribe via RSS

Clear Skies Capital

09 Nov 2022

written by Cindy Matalucci

LIVE WITH CINDY:
Friday Nov. 4th

We Welcome Jeff Thon and Josh Feldscher from Clear Skies Capital to the show!

HOT TOPIC: We talk about Small Business Loans:

Small businesses have always been the backbone of the economy. After all, they employ almost half of the country’s workforce and comprise 99.8% of the total businesses in California. Yet, they are also underserved and overlooked. For example, when they need a line of funding, banks and financing institutions typically force them to jump through hoops with voluminous requirements and high-value collaterals.
But before we start, we must define ” small.”

2.) What classifies as a Small Business?

The government casts a relatively wide net in its definition of “small”. For instance, your company is included in this category if you employ less than 500 workers. So, over 99% of the businesses in California, or nearly four million, are categorized as “small.” However, they are responsible for more than seven million jobs, or roughly half of the workforce.

Jeff and Josh have got you covered and will be discussing this topic and what you can do to qualify for a Small Business loan and also what loans are available:

8.) What types of Business Loans Are Available To You?

Despite a poor credit score, you may still avail of the following small business loans:

1.) Business credit cards — You can use credit cards to cover the company’s overhead costs. They have less rigorous requirements, and the annual percentage rates will increase to 25%. The interest is based on the amount balance that carries over month-to-month.

2.) Term loans – This financial instrument will allow you access to a lump sum amount, and you need to repay it for a specified period for your business loans. Each term is highly flexible and varies from one lending company to the next. The payment term may range from as short as three months to as long as five to ten years.

3.) Line of credit – You can draw money up to a ceiling amount from the line of credit. You can withdraw funds as needed, and the interest based on the money you use. You can opt to pay the amount you borrowed first before you can get another line of funding.

4.) Invoice factoring and financing — The factoring vendor can absorb your outstanding invoices in exchange for a lump sum amount. The vendor is now responsible for collecting your receivables while also collecting the factoring fee. In this type of financing, you use these papers as a guarantee to borrow cash. Under this setup, you would still be responsible for managing the debts owed to you.

5.) Microloans – You can receive ready cash for as little as $500, but you can borrow as much as $50,000. There are several advantages to applying for micro-loans. For instance, the requirements are lax, the approval is quick, and the lender does not demand any asset.

6.) Merchant advance — Although widely accepted as a business loan, it’s not technically one. Under this setup, you sell a portion of your future income in exchange for a lump sum amount that the lender will give now.

A big misconception is that people that do not have perfect credit can’t qualify for loans.

What is a Bad credit score?

Banks look at your ability to pay before deciding whether to lend you a loan or not. For instance, according to the NSBA, financial institutions reject 20% of applications outright because they could not reach the min credit score.Essentially, reporting bodies like Equifax, D&B, Experian, and FICO will generate the scores that will serve as the basis for banks in making decisions. The score details your operations, debts, and payment history. For example, your score is poor if it ranges between 500 and 600, while it’s considered fair if you rate it between 601 and 660. Similarly, if the owner has a poor track record, it will also reflect on the business, discouraging banks from exposure.

Bad credit scores are a common issue for a lot of small businesses that need to apply for funding. Here at Clear Skies Capital, they are willing to provide finance for small businesses that have bad credit ratings with their bad credit business loans. They understand how difficult it can be when you just want to go ahead and build your business, but you have the wrong credit rating. Contact us for a consult!

Clear Skies Capital
11858 Bernardo Plaza Ct Ste 110
San Diego, CA 92128
T: 1 (800) 230-9822
E: info@clearskiescapital.com
W: clearskiescapital.com

About Clear Skies in their words:

You have many options when it comes to securing financing, so why partner with Clear Skies Capital? We care. Our passion and desire is to see your business go beyond your dreams — and that’s why we say “yes” more often and faster than the traditional financial institutions you’re accustomed to.

Our suite of lending products includes working capital loans, equipment financing and merchant cash advances — and we’ll work with you to determine which option is best for your situation. We understand you need hassle-free capital to grow and achieve the success you strive for every day — so our aim is to exceed your expectations as a financing partner that has your success in mind.

Our commitment to you and your business is to always be honest, responsive and loyal. We have the same goal — helping your business grow — and combining our access to capital with your drive and desire is an unquestionable recipe for success.

Cindy’s dress The Nicole Dress by Dress the Population:


Comments are closed for this post.

© 2022 The Pulse

Facebook

Twitter

YouTube

Google Plus

Follow Me on Pinterest