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Three Cs - What Startups Need to Get a Business Loan, Part 1
You want to get a good, solid overview of what it takes to acquire that business loan you need, especially if you are a startup. The essential element of what the lenders out there require of you can be wrapped up in the acronym, C. C. C. These are... Cash - Decide how much money you want to borrow, what it will be used for specifically, and how much you personally will put down on the loan. The more cash you can come up with the better, period. Credit - Your personal credit score really should be 700 or better. Unless you've got tons of cash and collateral, don't even attempt a loan request until it is. Personal credit reports can often be obtained free and securely over the internet. Collateral - The more collateral the better. The lender will establish a loan-to-value on all of it. Having a house to pledge is a huge plus. Keep in mind, though, that little or no cash and lousy credit will not be made up for by an excess of collateral. You must decide how much money you need and how much you can raise for a down payment. You must get working to make that credit score of yours better. You know how many assets you have, and should find out what their liquidation value is. You need to discover how to get your hands on additional cash and collateral should the need arise... Still with me? Good. If you are serious about starting or enhancing your business through a loan, you need to understand that lenders will want to know how much skin you have in the game. After looking into a loan possibility, many aspiring and existing entrepreneurs conclude that the money lending industry is too demanding and complex, and the sheer volume of information required by them is overwhelming. Then, discouragement sets in and drains all the excitement and enthusiasm out of them. But perhaps it's prudent to think from the lender's perspective for a moment. Imagine a stranger approaches you, nicely dressed and polite, and proceeds to enlighten you on his idea to build a lovely espresso stand just down the street from your house. His vision of the success of this venture is optomistic, he apparently has a little experience at running coffee joints, and is now inquiring if you would like to fund the construction and initial operation of this hopeful enterprise. So, naturally you begin to be a little inquisitive... You: "How much cash will you have on the line for this project?" Him: "Cash?" You: "Yeah, you know..., money? And, since I'm asking, how's your credit? Have you been making all of the payments to your creditors on time?" He begins to squirm. Him: "Well..., about the money thing, I wouldn't be coming to you if I had any of my own. And, as far as my credit is concerned, it's happens to be pretty good...I think." You: "Do you have any assets that can be pledged against this loan in case of a default?" Him: "Default?! Good grief, man. Can't you tell by looking at me that I'm a man of my word?!" You: No. At this point, he leaves your presence discouraged, fuming, or both. No one in his right mind would fund such a proposal at face value. On the other hand, if that same man came to you (and you were in the business of lending money), laid out a sensible business idea, put up 20% of the loan amount in cash, had good credit, had experience either at running a business or in the industry he was proposing, and had a sufficient amount of collateral to cover losses due to unforeseen circumstances, you might consider him a "good risk", wouldn't you? All lenders have the difficult task of making future decisions based on historical information. Commercial or private lenders such as commercial finance companies, leasing companies and mortgage banks, though not directly regulated by the government, still must adhere to certain credit granting criteria. Institutional lenders such as banks, credit unions, savings and loans, etc., lend money obtained by borrowing from their depositors. Thus, they are both regulated by the government and more critical in their policies regarding lending. Regardless of whether you approach one or the other, neither one of them are in the business to lose money. Give them reasons to lend to you. Did you know that lenders want to provide money to you? Let them! By preparing your personal three C's properly for the scrutiny they will endure, you'll give the funder a good opportunity to fulfill your request for business startup capital. There are many other details involved in the process, such as the sizeable amount of paperwork you need to prepare and gather. But, if you're serious and confident about your venture, pony up and be willing to hurdle the necessary fences to satisfy the lender's requirements. At that point, an independent loan broker will be one of your most valuable allies. Contact a professional who can walk with you through the process and explain the details of the transaction. Your chances for approval will become greater and your lender will thank you. In part 2 of this article, we will examine the types of paperwork necessary to package a startup loan request to the lender. Mark Uptain is the owner of Regent Business Capital, a loan and lease brokerage that works with lenders nationwide to help small and medium-sized businesses get financing. His website http://www.EquipmentLeasingSource.com, offers free equipment leasing information and competitive quotes to businesses throughout the United States.
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Among the things that can make or mar a business is taking loans. People take loans to meet up with their expectations. However, it takes a wiser entrepreneur to decipher when to or when not to take a loan. Loans can do wonderful things for you when properly managed. It can help solve urgent problems, cater for substantial expenses and grow businesses. Though loans can work perfectly for those who have steady income, yet it has the propensity of entangling those who struggle to earn a living. It is very important for every entrepreneur to note that a mismanaged loan is hell.
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How To Develop The Mindset Of An Entrepreneur And Become Successful
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Submitting bids and tenders is a great way to grow and expand your business and is a great way for a small company to become a much larger company. It can be frustrating and costly to bid, this work taking you away from other business activities. However, winning a bid gives you access to a new customer and other project opportunities. You also have to consider as to whether you have the financial standing and moral fortitude to undertake large projects so choose your opportunities with great care. Smaller projects can help your company grow efficiently and profitably with less drama and anguish. Here are a few pointers to remember when producing tenders.
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The Pros and Cons of Working for Yourself
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The Impact Trifecta: Make the Most of Your Impact Efforts
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Be Willing to Fall Flat on Your Face
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The Secret Shame Of Having A Full Time Job
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07/08/2020 09:48 AM
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How Becoming An Author Builds Expertise
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If you want a fast way to become an insider within your niche, push yourself to new heights, and become the expert you know you are, becoming an author will do that for you. But, you must get started and learn all you can about marketing once the book is finished.
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How To End A Business Relationship Amicably
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Ending a business relationship is never easy, but once you do let go of clients who aren't ideal, you're going to free up space to attract your ideal clients. Plus, once it's over you're going to feel so much better about your business and yourself.
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07/02/2020 11:37 AM
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Are You Honoring Your Values?
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So much is going on in the world right now, that it can be difficult to focus on your business' values. You may be going through some financial challenges due to the pandemic, and even if that's not the case, it can feel hard to consider one more thing as you pivot and adjust. I have had to make conscious and sometimes difficult choices in my own adjustments to stay aligned with my values and those of my business.
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Ever feel like you want to just leave everything behind and go elsewhere? I sure do. But we're here. How do we rise to these times?
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Get tips to make big in business from the expert business coach Thamizharasu Gopalsamy. One can learn business basics with this pen work.
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Honest Grant Cardone Marketing Mentoring Program Review
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When Celebrating Your Big Accomplishments Is Hard
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Celebrating your significant accomplishments can stir up feelings and resistance. Here's how to deal with that.
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What Exactly Is Passive Income?
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Any income where the individual does not have to physically earn is called passive income. This of course is a very attractive way of earning an income and indeed those who are lucky enough to make a decent living this way are quite happy. Ways To Generate Loads Of Passive Income- There are currently some very popular and common ways to earn a passive income.
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06/08/2020 09:13 AM
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Find Your Fierce
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You want to have impact with your business. You'll have a lot more impact if you get in touch with your fierce.
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Are You Becoming the One?
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Impact calls you on a deeper level. If impact were just about taking action, you would have had that impact already.
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Respect Payroll
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Entrepreneurs at times have such passion for their product that they overlook payroll. This article describes some common startup payroll problems, and their solution.
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Your Relationship With Desire Shapes Your Impact
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Your impact is a deep, unique expression of who you are. Diminishing your desire for impact rains on the parade of who you are and what you contribute.
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Rethinking Your Business Plan? Be Sure to Include This
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We're in the midst of a significant disruption of business. Creating a new plan focused on this one thing keeps you on track.
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How To Handle Criticism In Business
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There are essentially three types of critics. Each has a different agenda and all but one has something good to offer. It's important to understand and differentiate between these three types of critics so that not only can you quickly identify those whom you should listen to and those who you should ignore, but also so that you can learn to provide criticism yourself in a constructive and useful way.
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04/07/2020 08:35 AM
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Having Impact During a Pandemic
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The Chinese proverb, "May you live in interesting times," was never more poignant than it is right now. Every single one of us is undergoing significant change, whether we want to or not. The coronavirus/COVID-19/SARS-CoV-2 pandemic (even the name keeps changing) is making sure of that.
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To Survive, You Need to Follow the Bubbles
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Whether you are an entrepreneur or small business enterprise, one thing is for certain, we are all experiencing some form of disruption in our business as a result of Covid-19. For a very small handful of businesses, this unprecedented change is a positive one for their business, while a significantly greater number have not been so fortunate.
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Here's the Secret to Double Your Productivity
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Are We All Creative Or Is That Just A Myth?
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Everyone is creative. But everyone is not created the same. There are many types of creativity.
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03/02/2020 08:19 AM
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3 Common Psychological Roadblocks And How To Navigate Them
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Before we talk about common psychological roadblocks, understand that while you can read about this all day long, you may need extra help overcoming some issues. Consider getting a life or business coach depending on your own issues. This will help you work your way through it faster so that you can move on with your life.
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02/26/2020 10:03 AM
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How Can Brainstorming Be Used To Generate New Business Ideas
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There are different methods of brainstorming that work for different people. What works for you will depend on your own personality, so it's smart to try out more than one method.
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02/26/2020 10:03 AM
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Two Mantra of Successful Entrepreneur
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Great leaders are willingly make personal sacrifices and accept responsibilities for organizational failures. They put the interest of common good- their stakeholders which includes employees, government, customers, creditors, directors, suppliers, unions and the overall community at large before their interest. They adopt a 'give no excuses and accept the mistake' approach. There is a direct positive relationship between risk-bearing and entrepreneurship. Successful entrepreneurship is about identifying your passion, taking a rational risk and exploring opportunities others don't see. Risk-taking pushes you to think and act outside your comfort zone without which you become torpid, conventional and content
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02/21/2020 12:04 PM
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Why Is Copy Trading Service Useful?
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If you don't know how to trade and want to take advantage of someone more experienced, then copy trading is the right one for you. Copying more experienced traders allows you to make a return on your money with minimal risk. The most important part is to trust a company that offers a verified record or performance of their trading history.
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