Posted in Business by iwellbc |
According to the Small Business Administration, companies that can qualify for the 7a SBA loan must meet certain small business size standards. These standards vary greatly by industry, but the general rules of thumb are as follows:
Farming businesses must not have revenues exceeding $750,000
Building contractors can have a maximum revenue of $14,000,000
Retail and service businesses can have maximum revenue of $7,000,000
Heavy construction trades and industries have maximum revenues of $33,500,000.
Additionally, there are headcount tests regarding the number of people that work for your business. For wholesale trade industries, the maximum number of employees is 100 while manufacturing firms can have a maximum of 500 employees. However, these rules are not hard and steadfast. The SBA and its associated lenders understand that revenues can fluctuate as can the personnel summary of your firm. As such, it is imperative that you speak to you 7a SBA loan representative to determine whether or not your meet the standards discussed above. However, as many entrepreneurs seek to use this type of credit facility for starting a new business then the standards discussed above typically do not apply to your business. If your business becomes highly successful and requires additional capital then you may start to require traditional business loan financing rather than debt through programs like the SBA 7a Loan.
It should also be noted that based on inflation and industry trends, the Small Business Administration regularly reviews and updates its business eligibility standards based on revenues and personnel numbers of businesses across a number of different industries. If you are having trouble determining whether or not your existing business qualifies for a 7a SBA loan then you should speak directly to a SBA representative, your banker, or your accountant.
Posted in Business by iwellbc |
Setting up a home-based business may be a more cost-effective alternative to setting up a major company, but it may still drain the limited resources of a small business owner. To keep the business going, small business loans will definitely be necessary. These can be availed of through credit card services. This article will show you how.
First, you need to set up your home based business. Do your research on the type of business you want to establish. Find out what licensing and zoning requirements you need to meet and ensure that you meet them all. Do not attempt to cut corners here.
Get the services of an accountant, even if only on a consultancy basis, to help you set up your books and records correctly from the start. Ask for help in determining deductions so that you can plan on your business expenses. Establish a routine for keeping strict records of all income and expenses right from day one. Keep all business related receipts, invoices, client records, bank statements, bank deposit slips and canceled checks.
Being home-based, you need to set aside a particular place in your home just for your business. Make sure it can accommodate all the necessary equipment. Check that you have the appropriate electrical outlets and have them installed if needed to avoid overloading your system. Set up rules to keep the area insulated from household noise and disturbances.
Have a business phone installed that is separate from your residential line. Avoid having your children answer the business line. Install an answering machine to take calls when you are out or occupied.
Get a post office box so that you can use that address in your official stationery and other documents, keeping your business profile professional. Hold client meetings in rented conference rooms or set business meetings in good restaurants.
One of the most important steps in setting up your home-based business is to acquire credit card services that will enable you to accept credit card payments and debit card payments. These credit card services provide all the necessary software and hardware for you to be able to process payments in person, online or by phone. This step alone already expands the customer base that you can access.
Credit card services will also serve you well once your home-based business begins to feel the need for additional capital. When you need to get small business loans, you will not have to approach banks which are most likely not sympathetic to small home-based businesses.
The need for small business loans usually comes when the home-based business is already at least a year old. At such time, your home-based business would have created an average monthly credit card sales record with your credit card services company. You can refer to that when you approach your credit card services company for small business loans, sometimes called cash advances.
Credit card services do offer small business loans to their clients based on average monthly credit card sales, without the need for any collateral. The aforementioned average monthly credit card sales guarantee your company’s capability to pay the small business loans. Payments will be automatically deducted as a percentage of future credit card sales. This arrangement frees you from worrying about the amortization for your small business loans, too.
As soon as you pay up your small business loans completely, you are automatically eligible for new small business loans for as long as your home-based business is getting a good monthly average in credit card sales. With the help of credit card services, you can continue to expand and grow your home-based business.
