Like many people, the recession hit me pretty hard. Thanks to a job loss, I got behind on some of my credit cards. Even though I did mange to make the mortgage payment every month, my credit rating nose-dived. While things did get better, I still wondered if it would be possible to refinance my mortgage with bad credit. After talking with a few lenders, I found out that my situation was not unique. I also found lenders who were willing to work with me. I managed to get terms that will save me money over the life of that mortgage. If your credit has taken a beating, don't assume that refinancing is out of the question. I'll share how I researched options and found a lender who offered a good deal. You could find that refinancing your mortgage is within your reach.
No matter how successful a business may be, it is always possible to fall into debt when least expected due to going through a period in which less money is being made. Unexpectedly running out of inventory and various other things can lead to more business profits being used than planned. Rather than taking the risk of your business going downhill during such a situation, it is possible to obtain a small business administration (SBA) loan to keep things in order. However, just because you are a business owner, it does not mean that you will automatically be qualified for an SBA loan. Continue reading this article for helpful information about SBA loans so you will know if it is ideal to apply for one to help your specific business situation.
What Is the Common Qualification Criteria?
SBA loan lenders will each have specific qualification criteria that you must meet before your application will be approved. For instance, it is common for such lenders to require a high credit score, but some of the requirements are higher than others. You will also be required to make a specific amount of business profits on a monthly basis, which is usually several thousands. Another thing that lenders will look at to determine if you are qualified is the length of time that you have been in business. In some cases, you will have to put down a payment for the loan, such as if you need it for purchasing real estate for your business needs.
Can an SBA Loan Be Used for Anything?
There are various types of SBA loans that can be obtained, which will determine how you will be able to use it. However, it is not likely that you will be able to use the loan for paying off existing debts, but you can verify with the lender that you choose. You should be able to use the money for purchasing more inventory, business supplies, and generally keeping your business going until more business profits are made. Many business owners use such loans for hiring new employees as well. The lender will let you know the specifics in regards to what you can use the money for.
Will Collateral Be Necessary for an SBA Loan?
Collateral is usually required when applying for an SBA loan, but it isn't always necessary. For instance, if you are requesting a loan that is under a specific amount of money, collateral may not be mandatory. If you must put up collateral, it can usually be any of your business assets.
Share14 June 2019
