With advent of the credit crisis, many businesses have seen their sources of working capital dry up, necessitating the need to find an online business loan. In reviewing the seemingly bewildering array of choices the internet seems to offer, many business owners may walk away with “information overload”, not being able to separate reality from the various claims that are made online.One key aspect to remember when searching for an online business loan is that a true business loan is not going to be “funded instantly” online. Despite what some of the headlines and ads may say, a true business loan will never be funded this way. What is confusing is that many personal cash advance companies, payday lenders and other non-business funding sources will also attempt to capture business loan traffic with a “shotgun” advertising approach, relying on the confusion in the marketplace to gain loan/cash advance volumeWhile these sources may provide capital to individuals in smaller amounts instantly based on a signature and the strength of personal credit, they are not business loans, but personal loans. Oftentimes they are considered, from a legal standpoint, to be “cash advances” and therefore are relatively unregulated when it comes to maximum rates and fees that are charged.What most business lenders will do online is allow a applicant to fill out a “pre-application” online, and then will be contacted soon thereafter to assess whether they are eligible for the loan. At this point, the applicant usually will have to forward supporting documents before they get a “hard pre-approval” that will give them the amount, rate and terms they will qualify for. This allows true business lenders to accurately assess and application and give the best rates.Luckily, there are some better options out there for those business retailers who are seeking quick funding but have been unable to get approved at a bank or the Small Business Administration. The Credit Card Receivable loan is a quick, low documentation, no upfront fee loan that has interest rates which are 50% lower than merchant cash advance companies and have no other requirements to purchase equipment or switch credit card processors. Usually, loans of this type can fund with 7-10 days, and a pre-approval within 48 hours is the norm. Loan amounts up to $500,000 are available.If you have been searching for a true, regulated online business loan that is cost effective and can work will a variety of business credit profiles, click here. Always remember to read the websites thoroughly to make sure you are getting a true loan, and not a cash advance no matter where you apply. A true, regulated business loan will always be more cost-effective over time, truly helping a business rather than causing further long-term financial distress

I hear this day in and day out; “My bank turned down my business loan request, now what do I do?”And, it is not just those talking to me personally but I see this same statement on forums and in discussion groups around the globe.If your bank says no, then you just have to look at the many other business lenders and their options that are out there.Banks don’t necessarily look for ways to approve business loans; they look for ways NOT to approve them. Give them one excuse and it is over.But, there are other lenders out there that want to make business loans – in fact, as lending is all they do, they have to make business loans or close their doors. So, they actually look for ways to make these loans (read: they work with you).Now, if you can get a business loan from a bank – then by all means. But, if your bank says no that does not mean your hunt is over.So, where do you look?You start by looking inside your own business.All lenders, especially those that lend to small businesses, lend against cash flow. Now, I know that you might have heard horror stories about debt ratios, collateral and credit. But, regardless if you have all those other categories or requirements, if you don’t have solid cash flow – then you have no real chance of getting a business loan; regardless of the lender.Even with banks, they may hoot and holler about all those other criteria items but when they really sit down to underwrite credit, they focus on your business’s ability to generate enough positive cash flow to make those monthly payments – period.If you have overall cash flow (from all lines of business in your company) – more money moving into the business than out of it (profitable or not) – then most banks will at least review your deal.So, focus on your cash flow and let that be the star of your business when applying for business capital.Now, however, let’s say you don’t have solid cash flow. Let’s say that your business is barely making it on an “all company” scale. However, you do have some opportunities that will bring in some revenue (cash flow) over the next few weeks or month.Well, there are many small business lenders out there that will lend against those cash flow events.Examples:You receive a large order from a strong customer but don’t have the cash on hand to start or complete that order. There are purchase order financing companies that will lend your business enough capital to complete that order (including to cover any needed labor). You complete that order, get paid, and then pay back the lender.Simple enough and all based on your cash flow prospective or a single cash flow event and not your entire business.Or, you have completed a job order and shipped it to your customer (with payment invoice). However, your customer is not expected pay you for 30, 60 or 90 days. Well, your business can factor that invoice for capital today to ensure that your company can pay its employees and suppliers or to start work on that next job order.There are working capital financing companies that will factor (provide your business cash) against those non-paid invoices and provide your company with the capital it needs now – focusing on these single events and not your entire business. Then, when your customer pays you, you repaid the loan.Or, your business has been generating sales to customers day-in and day-out. But, your business is not yet profitable – meaning that your company is still seeing more cash flowing out of the business then into it (a common situation for young and growing companies).But, you can remedy this negative cash flow condition if you can just get your hands on a little more cash to buy a new machine, launch a new marketing campaign or purchase more or new inventory.Well, there are lenders that will leverage your business’s ability to consistently bring in cash flow from your customers – regardless if your business is profitable or not, has collateral or not or that meets all those other stringent criteria that banks use to underwrite business loans.Some will lend against your credit card receipts (those receipts from purchases made by your customers via credit cards). Some will lend against all customers’ payments including credit/debit cards, cash and checks.And, some will lend against whatever cash flow you have flowing in and out of your bank account – called bank statement loans (loans that follow your cash and not based on your business’s financial statements).So, just because your bank or lender says no to your business due to overall company wide cash flow issues, you still have options that will allow your business to access capital and start moving forward.To begin, you have to look inside your business to see where your cash in-flow is coming from. Then, look for lenders that will underwrite a business loan based on that method of cash flow.If you have future cash events – events that bring in cash to your business in the very near future – and you need capital to help grow your unlock those potential revenue generating opportunities then look for lenders that will factor against those events.One of the most guiding principals of any successful business is its ability to leverage its assets and processes to grow that business. So, why not leverage your ability to generate cash flow and get the business loan your company needs to get to that next level – regardless of what your bank might says.

Working with a bank to obtain a small business loan can be an easy or difficult process, depending on how prepared you are to meet with the lender and discuss your business’ situation and needs.One of the leading causes of business failure is insufficient start-up capital. Ironically, though, lenders rarely approve loan requests for the businesses that have the highest need for a small business loan. Instead, lenders tend to prefer to offer small business loans to those businesses that have been in operation for two or more years.According to All Business, it is estimated that 95 percent of all entrepreneurs opened their businesses with capital from their own pockets, or from money they borrowed from relatives, friends, or another person in their community. Lenders want to see business owners risk their own funds in the business venture, and often require that the business owner or owners provide a minimum of 25 percent of the capital needed to start a business, and at least that much equity in the business if the business is already in existence. Simply stated, lenders aren’t as willing to take a risk when a business owner doesn’t even risk their own money in the investment. Businesses with a history demonstrating success in paying their bills for two and a half to three years will have the easiest time obtaining a small business loan because they’ve proven their ability to meet financial obligations.Preparing a Small Business Loan ProposalWhen preparing to apply for a small business loan, be prepared to face the facts that are against you, and use them in your favor. Persistency is necessary if you want to land a small business loan. Lenders follow certain criteria to determine if the small business loan is a wise investment for the bank. Most importantly, the bank will determine if the small business loan is likely to be repaid. As with other businesses, banks and other lenders must answer to their investors and stockholders, and unpaid loans show instability in the bank or financial institution.Items compiled into a small business loan request include the following:- Amount of money requested- Likeliness of business profitability and demonstration of cash flow needed to service a small business loan- Collateral, if any is owned by the business- A reasonable balance between debt and equityKnow Your BankerWhether you have a start-up small business or an established small business, the first step in obtaining financing through a small business loan is to develop a business relationship with your banker. Consider asking your bank’s manager to open a file for your business, and provide quarterly or yearly profit and loss statements. When your business is in need of financing, the bank will already have a file and will be at least somewhat familiar with your operations. When the time comes to apply for a small business loan, approach the banker with a solid business plan to inspire the lender’s confidence in your business. Provide information on business operations, marketing efforts, management ability, and financial projections for three years, as well as a cash flow projection and personal balance sheet demonstrating the worthiness of the business.To prove worthiness for a small business loan, prepare proper documentation. Keep your credit reports as clean as possible. A lender will assume that you operate your business in the same manner that you manage your personal finances. The lower your credit rating, the slimmer your chances are of obtaining a small business loan.When applying for a small business loan, search for a lender by first approaching the bank or banks in which you currently do business. Since you’ll need to share all of your personal and business financial information, it can be beneficial to apply with a financial institution that already has that information on file and is perhaps familiar with your profile and spending habits. If your credit rating is high, your changes are good of being approved for the small business loan.If you are unable to work with a bank or credit union in which you currently do business, or if you’d prefer not to work with your bank or credit union for your small business loan, look for a lender who wants your business. Search the business section of your local newspapers for special financing offers on small business loans and other loans. These lenders are actively looking for people needing small business loans, and the process of obtaining a small business loan with these types of lenders may be easier and faster. Additionally, check into credit unions. Because credit unions tend to be smaller financial institutions, you may be able to speak directly with a loan decision maker. Larger banks and other types of large lenders may have more rigid rules for small business loans, and the processes that they employ may be more complicated for small business loans.If, at First, You Don’t SucceedIf your first attempt at obtaining a small business loan fails, don’t be discouraged. Small business loans are often not approved with the first lender that you approach, and be assured that you’re not alone. Especially if you have a start-up business, lenders don’t always approve small business loans, even in the most ideal situations. Search for other lenders, or become resourceful and look into other sources for loans rather than a small business loan, including home equity loans and personal loans, both of which can be used for business purposes.