Consider Your Purpose for the Loan. Will the loan funds be used for something that will bring more money to the bottom line of the business and allow it to grow? This is the most ideal purpose.
San Francisco, CA (PRWEB) April 09, 2013
More small business owners are considering fast Micro Loans today. Why? Bank loans are not easily obtained for many. Down-payments and collateral requirements of traditional loans may put that bank loan out of reach. Alternative non-bank cash flow loans, such as the Micro loans at Sunovis Financial, address these issues. No down-payments, no collateral requirements, and less emphasis on credit scores are all features of these Micro loans.
The loans are short-term and renewable, and the most ideal industries are those with a steady clientele and cash flow. Why? The underwriters can assess the cash flow of the business, a big part of underwriting, and the ability to repay. Because repayment of the loan is typically a small daily ACH, having a daily cash flow is more suitable.
Popular industries include restaurants and bars, doctors and dental practices, hairdressers and spas, veterinarian practices, retail stores, plumbing businesses and auto repair shops. Disqualified industries are found here.
Sunovis offers some tips to small business owners who are considering Micro loans:
1. Consider the Purpose for the Loan. Will the loan funds be used for something that will bring more money to the bottom line of the business and allow it to grow? This is the most ideal purpose.
2. Consider the Amount Available to Borrow. Typically, the amount that can be borrowed works out to be about 4% to 9% of annual revenues. Loans can typically be renewed a number of times which may bring the capital needs in line.
3. Get Organized! The application process is incredibly simple - just a one page application and at least four months of business bank statement - and if the business accepts credit cards, the merchant statement. A Profit & Loss is usually very helpful. If you business is seasonal, owners may want to supply more than four months worth of statements along with that P&L.
4. Be Ready to Analyze Total Cost. These are short-term loans, and the interest rates are higher than banks. What is the bottom line? How much does this loan cost, and what will it bring to my business! For instance, the $50,000 loan will cost $10,000 and is projected to bring what amount more to the business. Sunovis underwriters will help small business owners analyze this.
5. Clean Up Loose Ends. Are your documents, leases and such in order, and does the information match up to the business name? The offer for a loan can come as quickly as two to four days after an application is submitted, and funding could occur in as little as 7 to 10 days. However, delays will occur if information doesn't match up or there are lingering issues to clear up.
Most businesses need capital to grow, and the Sunovis Micro loans could be an option. The mission of Sunovis Financial is to help rebuild the US economy, one business and one loan at a time. Sunovis has expertise in SBA loans and services as well.