Applying for a small business loan can be intimidating. Lending language can seem more complicated than setting up a business. However, it is critical to understand the fine print on your business loans. To cut through the confusion, here are 10 of the most important lending terms you need to know.

1. Fixed Rate

Fixed rate is the fixed interest rate you’ll pay throughout your loan period. A fixed-rate loan won’t increase during the life of your loan.

2. Default Interest

If you default on your loan, you’ll be charged default interest. The interest rate charged will be listed in your loan terms.

3. Variable Rate

The exact opposite of a Fixed Rate loan, a variable interest rate loan means that your monthly payments will change based on the market. Most business loans are fixed-rate, but variable rates typically don’t have a time-limit.

4. Covenants

Some loan agreements come with covenants that require you to meet outlined conditions. One example might be that you have to use the lending bank for all your business accounts.

5. Debt Service

Your debt service is the periodic payments required to pay for the principal and the interest on your loan.

6. Personal Guarantee

A personal guarantee requires you to be personally responsible for the debt if you default. This is different from collateral because a lender can seize your personal assets if you don’t or can’t pay back your business loan.

7. Debt-service Coverage Ratio

Your debt-service coverage ratio is the amount of cash your business has and how much is available to service your debt. It is based on your business’s cash flow.

8. Amortization

Amortization is the process of paying back your principle and interest charges through on-time payments.

9. Balloon Payment

A balloon payment is a large principle payment. Typically, business loans require this at the end of your loan term.

10. Environmental Risk

Environmental Risk is the loss of collateral value as a result of hazardous materials being found on your property.

For more information on these lending terms, and what they mean for your business, feel free to reach out to our team. We’re happy to help.

Are you in need of a business loan? You may have any number of reasons for needing a timely advance of cash. But do you know where to turn to in order to get the best possible deal? This is one area where you don’t want to make the wrong move. If you have a need for quick cash, come and see us today. We can give you a line of credit that will help you get over your hurdle. Our loan programs are very reasonable and won’t cause you too much trouble when it’s time to pay the money back.

There are Many Reasons You May Need a Quick Loan for Your Business

There are any number of reasons why you may need a quick cash loan for your new business. You may need the money to help you hire a new team of employees. You may need it to buy new equipment for your business. You may need to do a quick round of renovations on one of your locations or to buy another location altogether. Whatever you may need the money for, rest assured our new business loans program makes its easier than ever to get the cash you need.

There is No Time Like the Present to Get the Loan You Need

One thing is certain: The sooner you call us to arrange for a loan for your business, the better. You aren’t doing yourself any favors by delaying. Whatever the issue may be that requires a quick infusion of cash, it isn’t going to disappear by itself. Now is the time for you to take proactive measures to solve the crisis before it gets any larger. A quick conversation with one of our friendly representatives will enable you to get the help you need to solve it.

Get in Touch Today to Discover More About Your Cash Advance Options

If you want to learn more about your options for a line of credit or cash advance, now is the time to get in touch with us. We can give you the full info on all of your various options. We specialize in giving business loans to people who need the extra push that a timely business loan can give them. If you want to benefit from this new program, apply today to discover more about what we are prepared to do on your behalf.

For small business owners, good advice often comes at a cost. Sure you’ll get guidance from your accountant or attorney, but that’s often limited. Let’s say you’re trying to expand your small business; who can you turn to for help? Friends and family can be hard to rely on long term. Business consultants can be expensive and not always a good option for small businesses. A business mentor is someone who knows your business and understands what it takes to grow. These mentors can be found in every business community, the key is finding the right one.

Start out by finding a mentor that’s an expert in your business. It sounds like a simple thing, but having an expert in your product or service will ensure that you’re getting a clear picture of the business landscape from the perspective of someone who’s been there before.

Once you have a mentor, commit some time each month to talk with your mentor with by phone or in person. Small business owners are seemingly always busy, with little time to have meetings. A good way to stay connected with your mentor is having a central place to share ideas and updates on projects. You can create a shared Google Doc and get feedback on a regular basis. Create project plans and share them with your mentor so you can discuss them monthly.

At some point you’re going to try and grow your business. You need a mentor who can provide guidance on the nitty-gritty things that aren’t always easy to deal with like finding access to capital when it’s time to grow your business. Finding the right mentor can often be the difference maker when you’re trying to take your business to the next level.

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Temporibus autem quibusdam et aut officiis debitis aut rerum necessitatibus saepe eveniet ut et voluptates repudiandae sint et molestiae non recusandae. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.

On the other hand, we denounce with righteous indignation and dislike men who are so beguiled and demoralized by the charms of pleasure of the moment, so blinded by desire, that they cannot foresee the pain and trouble that are bound to ensue; and equal blame belongs to those who fail in their duty through weakness of will, which is the same as saying through shrinking from toil and pain. These cases are perfectly simple and easy to distinguish. In a free hour, when our power of choice is untrammelled and when nothing prevents our being able to do what we like best, every pleasure is to be welcomed and every pain avoided.

Similique sunt in culpa qui officia deserunt

• Consectetur adipiscing elit, sed do eiusmod tempor incididunt
• Pain and trouble that are bound to ensue; and equal blame belongs to those who fail in their duty
• On the other hand, we denounce with righteous indignation and dislike men who are so beguiled
• Consectetur adipiscing elit, sed do eiusmod tempor incididunt

At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus.