Business Loans

What is an SBA or Small Business Association loan?

The Small Business Association (SBA) works in connection with designated lenders known as SBA lenders to make it easier for a business to qualify for a loan or credit line. Normally the SBA ensures 40-50% of the amount of the loan in the event the borrower or business defaults thus making the qualification process with the lender more streamlined and faster for funding. However, beware as not every business will qualify for an SBA loan as there are restrictions which the borrower must qualify for. For complete details consult the professionals at Global Financial Services for the straight facts on how the SBA works and which loan product is best for you.

Can I get a government grant that I do not have to repay instead of a business loan?

Despite the late night TV hype and recent Obama Administration grants being the subject of the “rags to riches” common man mentality, the chances of you obtaining a business grant are slim at best! Do not fall prey to the scam artists selling “government grant kits” promising you free money! The federal government does not provide grants for starting and expanding a business. Grants from the federal government are only available to non-commercial organizations and/or non-profit and educational institutions or for research and development in areas such as education, medicine, scientific research and energy efficient technologies. In addition these grants are not necessarily free money, and usually require the recipient to match funds or combine the grant with other forms of financing such as a loan! Do not be mislead by outrageous claims for “free money” – come to Global Financial Services for expert service on obtaining a business loan for your company.

How long does it take to get a business loan?

Answer: The time varies based on the amount of the request, the financial strength of the business verified by the lender through Dun and Bradstreet and other major business credit reporting agencies, length of time in business, credit scores and history of the principal(‘s) and nature of the business. For a free analysis of these factors for your situation and prompt answers please call our office. Approvals can be arranged starting in as little as several days to approximately one week once all of the above is completed and verified and meets lender requirements. Do not be mislead by some brokers who guarantee that funding can be done in 24 hours from your initial contact with them – these are merely “dignified telemarketers” who just take your application without regard to your individual qualifications and send it to a lender. The result is often numerous credit inquiries, lowered FICO scores, denial of credit by numerous lenders, and the principal becomes “blackballed” from financing in the future. If it were really this simple everyone would get loans!

Can anyone guarantee me a business loan or line of credit?

Answer: NO! No broker can guarantee any business a loan because they are not the lender and it is illegal for them to do so. Furthermore, no direct lender that we know of will guarantee a potential principal borrower or entity a loan without first reviewing the pertinent financial information. Some applications may be done on a “stated or projected” revenue loan without tax returns via a streamlined application but do not ever count on any guarantee of funding from a lender until they formally approve the application.

How do I obtain creditor information on my Dun and Bradstreet Report if D&B will not provide it?

Answer: As experts on D&B procedures we have found that many business owners have problems finding out the names of creditors reporting them delinquent on trade accounts. D&B often provides misleading and/or incorrect information to business owners regarding information on their business credit file and refuses to release the sources of such information. Due to our exclusive knowledge of the D&B system and credit law we have been successful in obtaining this information for business owners and also improving their reports before financing applications are submitted. This results in higher loan approvals to you.

Why should I incorporate or form an LLC?

Answer: The advantages of incorporation or forming an LLC are numerous. This is especially true regarding building business credit history under a separate business entity. Sole proprietors who apply for financing under their own name will find the history of the loan on their personal credit, and lowered FICO scores and loss of credit due to increased debt.. Furthermore as sole proprietors are one and the same as the business they do not have asset protection and tax advantages offered by a corporation or LLC. For a more detailed analysis on how this pertains to your individual financial solution please call the office.

Do I need a Dun and Bradstreet (D&B) report to get a business loan?

Answer: Yes!, Due to the US Patriot Act and “post 9-11” legislation to avoid illegal business activity, terrorism, loan fraud and money laundering, lenders are now required to verify information on the business entity and principals applying for financing. If you do not have a D&B report and a DUNS number we highly recommend that we do this report for you to place you in the best possible position for financing as D&B is not in business to assist you with financing. They merely collect information on companies that they sell to outside banks and other subscribers. It is simply not in their best interest to see you obtain financing and it takes expert assistance to form a high quality report before loan applications are submitted. If you submit a loan application without a “ DUNS” report as it is known or one which is incorrect or adverse to your business you will probably be declined by the lender.

As always, the business loan experts at GFS Business stand ready to assist you in securing business financing.