Top Reasons Banks Reject Business Loan Applications

Most businesses need loans to achieve their short and long term business objectives. Yet, banks are notoious for rejecting business loan applications. While banking lenders have many reasons to reject loans, there are some common explanations for their decisions.

 
The bank might reject the loan if they doubt the ability of the applicant to repay the loan. Thus, business owners should be careful when filing the application. The banks analyze different factors, including the business plan, marketing plan, and intended…

Using Personal Credit to Give Your Business a Credit Facelift

 How can personal credit be used to improve your business’ credit report? You have undoubtedly been warned to keep your business credit score separate from your personal credit score, and for the best of reasons. Mixing the two can prove to be hazardous during uncertain economic times. Nevertheless, if your personal credit score is good, it may well have favorable bearing on your business credit score at a time when it sorely needs a lift.

 
Due to the fact…

Essential Record Keeping for New and Growing Small Businesses

No one likes to sift through mountains of paperwork, but in order for your business to function and flourish, meticulous record keeping is a must.  

 
What is the best way to organize your important company records? Keep in mind that record keeping must be systematic and easily accessible to you at all times. In order to make these documents quickly retrievable, be sure to file them in a fashion that is both logical and orderly. As computers have…

What is a Mortgage Loan Modification?

What is a loan modification and how does it differ from refinancing? A home loan modification is similar to mortgage refinance; its aim is to provide a more affordable mortgage payment to fit in with your financial situation. In this case you are not seeking a “new” loan, but instead you are modifying the terms of your existing mortgage.

 
Due to the credit crunch, refinancing an existing mortgage in order to obtain a more affordable mortgage payment is no…

What is Allowance for Bad Debt and Why is It Important?

Increased bad debt is a sign of the times, although it may exist even when business is thriving. If your business handles accounts receivable (A/R), you have probably already encountered customers who don’t pay, go out of business, or dispute the money owed to you. In some cases, bad debt write-off can be as high as 4-5%, but as a norm, bad debt should constitute less than 3% of your A/R.

 
 
If you want to record the A/R…

The Consumer Financial Protection Bureau is a Go; Now What?

Now that the new Consumer Financial Protection Bureau is up and running, consumers and business owners alike may be anxiously wondering what financial reforms can be expected as well as what bodies will fall under the bureau’s magnifying glass.

 
While the full effect of the Consumer Financial Protection Bureau’s regulation and oversight remains to be seen, its overall aim is to protect the consumer by carefully examining and regulating various financial instruments, such as mortgage loans, credit card agreements,…

Four Financial Reports for Every Business

Whether you have hired an accountant for your business or you are handling the accounting on your own, you need to be aware of four types of financial reports that must be prepared regularly. The four most common financial reports which provide you with an accurate picture of your company’s status are statement of capital, cash-flow statements, income statements and balance sheets.

 
Statement of Capital
The statement of capital indicates changes in owners’ capital accounts. In the event that…

Raising Business Capital: What Laws are Involved?

Opening your business up to outside investors can be an important and exciting operational milestone; but it is a move that should be carried out thoughtfully. Those seeking to offer company stock should be aware that a variety of laws apply to the raising of business capital and a qualified professional should be consulted before and throughout the process.

 
Here is a brief rundown of these laws:

State Corporate Laws. As you are required to comply with the corporate…

What to Consider Before Taking Out a Home Equity Loan

Home equity loans are an appealing financing option for home owners. With a home equity loan or line of credit, a home owner can borrow up to 75% of the equity in a home. Moreover, the interest generated on the loan is typically lower than it is for other loans and the interest is tax deductible.

 
Many homeowners choose this financing option because it is relatively easy to obtain, but there are numerous pitfalls as well. After all, the…

Five Signs that a Debt Settlement Company is a Scam

As Americans still struggle to get a grip on their debt, it is has led to the rapid rise of the debt settlement company. These organizations vow to negotiate with creditors on behalf of the borrower to reduce interest rates, penalty fees, and even outstanding balances- all for a substantial upfront fee.

 
While some of these organizations offer legitimate services, others are outright scams. If you are thinking of working with a debt settlement company, here are five warning…

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