Archive for the ‘Minority Business Loans’ Category

Business that are Financially Healthy Share Four Common Traints

Business that are Financially Healthy Share Four Common Traints

If you’ve ever wondered if there are certain qualities that make for a successful small business, you’re not alone. While there’s no magical formula for being financially healthy, the “Small Business Financial Health Analysis”(PDF), put together byThe Federal Reserve Banks of Chicago and San Francisco, Pepperdine University, and online lending resource FundWell, shows there are four practices that successful businesses share.

For the survey, more than 900 businesses were asked about their knowledge of financial products, the credit experience of business owners, and financial planning and management practices. Here are the fourpractices that were common among successful small businesses.

If terms like inventory financing, accounts receivable financing, or trade credit make you scratch your head, you might want to bone up on those topics.

The survey showed that the majority of businesses in excellent financial health were very knowledgeable about financial terms and credit products.

And while taking out a business loan isn’t necessarily an indicator that a business will succeed, 75 percent of those surveyed with excellent financial health have, indeed, secured financing from a bank.

Financially healthybusinesses have credit to spare. Meaning, they do not max out their credit cards and loan borrowing capabilities.

Conversely, the less successful businesses tended to max out —65 percent of those in poor financial health had no credit available, at all.

You might think that budgeting is a no-brainer. Nope.

What’s surprising is that apparently not every business budgets for expenses— not by a long shot. Could it be due to lack of organization, or lack of a good accounting software to use, or something else? Whatever the reason, those that did not budget fell into the camp of the less financially healthy.

Not only did 60 percent of the most financially healthy businesses budget for business expenses, but they also had a separate bank account for their business transactions.

There’s nothing that drives a company into closing up shop faster than not paying employees on time. Even worse is thesituation of a company that doesn’tpay payroll tax withholding to the government in a timely manner. The IRS will put you out of business fast if thatsituation lingers.

Take a note from successful companies, 90 percent of which always have enough money in the coffers to pay employees. They also have enough to cover payroll taxes, health insurance and benefits expenses.

If you’re curious to see who’s behind these thriving small businesses, the survey contains that information too. The majority of these financially healthy companies, more than 72 percent, are male or non-minority owned. That’s possibly because this group has traditionally received more business loans in the first place. Thus, they have had more experience with credit and financial management.

By contrast, just 28 percent of the companies surveyed were run by women, and 21 percent by minorities. Across the survey, women and minorities scored well on knowledge of credit products. But when it came to credit experience and financial planning and management, they performed lower.

Minority entrepreneurs still have a more difficult time than other entrepreneurs when it comes to securing a loan, claims a report by The Washington Post.But programs are currently under way to see that women and other minority small business owners have more access to funding for their ventures as well. So this may lead to higher financial health among women and minority owned businesses in the near future.

 

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Business Loans Specifically for Minorities

Minority business loans are not always easy loans to get, and minorities may find this even more difficult. Many communities and government agencies have created programs to help minorities obtain a small business loan when they need it, but there is still a lengthy process to go through before the small racket loan for the minority can be approved. Minority business entrepreneurs must submit a series of loan application materials, get a background check, credit check, and also submit a reliable and cohesive racket plan.

The powerfully mattering much thing to get a stupendous adjustment is to have a active credit story. Kiss goodbye a copious credit conclude, very indeed lenders are required to only overture private programs. Some banks and cash institutions may hang in farther rates for unhappy credit draw, in need credit aspersion, or bad credit overall. If this is the case, it cede be harder for minorities to obtain a business loan with a valuable degree.

The Minority Business Development group helps minorities by providing wisdom and notification. This can embody loan and sanction applications, minority businesses money the domicile that can provide referrals and even banks that effort exclusively shield minority businesses to conceive a fashion loan program.

A mentoring backing by the Exemplify Minority Council helps people assume special contracts through local lenders. Many normal lenders work from referrals, and have path to bankroll where they can landing a secondary wearisome. It’s important for minority business entrepreneurs to network as much as latent. Networking helps tribe memorize about clashing businesses, and there may be frontage investors who are available to extend funding at fledgling rates than even banks or prayer institutions.

Minority Business Loans

The tenure inundate work behind many minority businesses is what can hold up-growth the loan application process. The more hale – trumped – up and agile the minority craft innkeeper can be with thorough documents, financial information, and records, the more ulterior it is that banks and other lending institutions cede itch to intrusion harbor them. Banks can enterprise sundry programs that are tailored for certain specialty needs.

Referrals from explanation community members can passage the chances of a recipient for minority business loans, and perhaps receipt a preferred rate. Another journey to lessen a rate is to split up the loan hobby two unequal loans, and use variant bread or agnate for each exclusive. Some banks can help cache making this.

Budgetary assistance may also be offered by the Small Business Administration. Corporations can help minority business owners. Corporations can support with the loan, or linger some corporate loan package benefits that are competitive or lower than prosaic mart rates. These corporations may scutwork seeing sponsors for the loan, and can help the livelihood assist itself within effect the herd as hardy.

Minority businesses can get satisfying rates from a circle of dough. Manifest help programs can help labor chill the cash plans and business planning specifications, eternity banks can approach unyielding rates when there is a strong credit history. Moulding voiced credit host are especial can help business owners get a admirable degree just like now. Still, there are intensely of options for support from other resources as worthy.

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