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How much does a CPA cost? The average cost of a CPA for a small business in the United States can vary depending on a number of factors, including the size and complexity of the business, the services required, and the location of the CPA. According to industry reports, the typical fees for CPA services range from $100 to $400 per hour, with an average cost of tax preparation by a CPA for a small business ranging from $500 to $3,000 per year. CPAs offer a variety of services to small businesses, including tax preparation, financial statement preparation and analysis, bookkeeping and accounting services, payroll processing, and business consulting. In addition, some CPAs may offer specialized services such as business valuation, succession planning, and forensic accounting. It's important to note that while the cost of a CPA may seem high, their expertise and knowledge can provide significant value to your business in terms of tax savings, financial management, and strategic planning. It's also important to shop around and compare the rates of different CPAs and CPA firms in your area to ensure you are getting a fair price for the services you require. Do I Need a CPA? Whether or not you need a CPA for your business depends on a number of factors, including the size and complexity of your business, your financial knowledge and expertise, and your goals for your business. While it is not legally required for small businesses to hire a CPA, there are many benefits to working with a CPA that can help your business thrive. A CPA can provide valuable financial and tax advice, help you navigate complex tax laws and regulations, provide strategic financial planning advice, and help you make informed decisions that can save you money and increase your profits. If you are comfortable handling your own financial and tax matters and have a good understanding of the relevant laws and regulations, you may not need a CPA. However, if you are unsure about your financial situation, are facing complex tax issues, or are looking for strategic financial planning advice, a CPA can provide valuable expertise and guidance to help you achieve your goals. To determine if hiring a CPA is worth it for your business, consider the complexity of your financial situation. Hiring a CPA is recommended if your tax returns are complex, you're making significant financial decisions, you're in trouble with the IRS, or you need assurance services. A CPA can guide you through interactions with the IRS, explain potential financial repercussions, and verify the accuracy of your financial statements. How to Find a Reputable CPA There are several ways to find a reputable CPA for your small business. One option is to search online for "CPA near me," "CPAs near me," or "CPA firms near me" to find local CPA firms that offer services to small businesses. You can also ask for referrals from other business owners, your lawyer, or your banker. Another option is to check with your state's board of accountancy to ensure that the CPA you are considering is licensed to practice in your state. When evaluating potential CPAs, it is important to consider their qualifications, experience, and track record of success working with small businesses. You can ask for references and check reviews online to get a better sense of their reputation and the quality of their work. Additionally, it is important to consider their fees and rates, as well as their availability and level of communication. Overall, finding a good CPA requires research and careful consideration. By taking the time to find the right CPA for your small business, you can ensure that you receive high-quality financial and tax advice that helps your business grow and succeed. How Else Can a CPA Help My Business? CPAs offer various services to their clients to enhance the accuracy, completeness, and reliability of their financial information. These services include audits, reviews, and compilations. Audits are a comprehensive type of service, involving an in-depth examination of a company's financial records, transactions, and internal controls to provide assurance to investors and stakeholders about the accuracy of financial statements. On the other hand, reviews and compilations are less extensive assurance services. Reviews are analytical procedures and inquiries performed to provide limited assurance on financial statements, while compilations involve assembling financial statements based on information provided by the client without providing any assurance on their accuracy or completeness. Apart from these, CPAs also offer agreed-upon procedures engagements, which involve performing procedures that the client and CPA agree upon, and attestation services, which involve providing assurance on various subjects such as compliance with laws and regulations or the effectiveness of internal controls. These services help businesses to enhance their financial reporting and gain credibility with stakeholders. Certified Public Accountants, or CPAs, play an important role in not just helping businesses with financial reporting and compliance, but also in securing financing for their operations. With their expertise in accounting, CPAs can assist in preparing and submitting loan applications, as well as reviewing and analyzing financing offers from lenders like Trust Capital Funding. Through this process, CPAs can provide valuable insights on whether the financing options available make sense for the unique needs and circumstances of your business.

Business financing can be a smart strategy to expand your business without tapping into your personal savings or waiting for your company to generate enough funds. Fortunately, there are a variety of options available for businesses seeking financing, including term loans, lines of credit, and unsecured working capital (also known as cash advances). This article will provide guidance on determining which program you qualify for if this is your first business loan, and offer tips to help you secure the best programs with the lowest rates. The most preferred financing option is a term loan, offering the lowest rates among the three programs with monthly payment options and 1-10 year terms. However, it is also the most challenging program to get approved for, as an average minimum credit score of 720 is required. Approval chances are higher if your business has been operating for at least two years and consistently generating profits. Besides the usual documents, such as a copy of your driver's license, voided check for the business, and an application, you must provide many other documents, including the last 12 months of business bank statements, a copy of your last two years' tax return, and possibly a P&L report for the company. The underwriting process is lengthy and intricate, considering multiple factors about the business and owners. Additionally, this option requires a personal guarantee, impacting your credit score. Our next option for financing your business is a line of credit, which works like a credit card. You get approved for a certain amount and can borrow up to that limit, only paying interest on the money you use. While rates are slightly higher than for term loans, they are still competitive. A line of credit is best used for a rainy day fund or if you plan to use financing regularly. The average minimum credit score for this program is 680, making it slightly easier to qualify for than a term loan. This program has monthly/weekly payment options depending on your credit history. The term ranges from 6 months to a true revolving credit line that does not expire. To apply, you will need to provide your last six months of business bank statements, a copy of your driver's license, a voided check for the business, and an application. The underwriting process is not as rigorous as for the term loan option, but your credit history is still a factor. The last financing option is unsecured working capital or a cash advance. This option does not require any collateral or personal guarantee, hence the name "unsecured". However, it has the highest rates among the three options and is not meant for long-term financing needs. The payment structure for this option is usually daily (Monday-Friday, no holidays) or weekly, with a micro-payment structure to facilitate payments. Although daily payments may seem inconvenient, they are smaller and easier to manage, especially for businesses that generate revenue regularly. The approval process for this option primarily considers your business's revenue, with an average minimum requirement of $10,000 per month. The approval amount can range from 50% to 80% of your average monthly revenue, depending on other factors such as your average daily balance and number of deposits. The terms for this option range from 1 month to 2 years. This is also the only option that offers an early payback discount, which allows you to save money if you pay off the advance before the end of the term. Now that we have gone over the programs lets recap, you can fall into three main categories. A Profitable Business for over 2 years and credit over 720 A Profitable Business for over 1 year and credit over 680 A Profitable Business In addition to the financing options we've discussed, there are several other types of business financing available. These include equipment loans, SBA programs, factoring programs, commercial real estate loans, and franchise funding, to name just a few. If you're interested in learning more about these programs and how they can help your business, be sure to visit our Programs page. Your loan options are determined by the category you fall into. However, just because you only qualify for a cash advance, it doesn't mean you'll never be eligible for a line of credit or term loan. If you have low personal credit, you can work on building your business credit. By paying off a cash advance or revenue-based financing on time and without missing any payments, you can become a better candidate for other programs, even if your credit score is not that high. Although your credit score reflects how likely you are to keep up with payments, when working with a private lender like Trust Capital Funding, you can build your credit directly with the lender. As a direct lender, Trust Capital Funding has built long-lasting relationships with clients over the years. By maintaining a good payment history, we can offer you better programs and lower rates in the future. Remember, loan brokers cannot change any terms or make the final decision in your funding process. When applying for a business loan, always make sure you are working with a direct lender like Trust Capital Funding to avoid any potential issues. If you're looking for a business loan but do not qualify for the programs you want right now, take a small loan to build a relationship with a direct lender like Trust Capital. Private equity firms and direct lenders have the final say on what programs you qualify for when working with them directly. When you first apply for business financing the only thing a lender can look at is your credit history. We know that your credit history is not always the best representation of you or your business, and that is why we urge you to build a relationship with us, so we can better understand your specific situation. If you are only being offered cash advances you may be working with a loan broker. Be careful when getting a business loan, make sure you are always working with a direct lender like Trust Capital Funding and not a loan broker. Direct lenders use their own money to lend to businesses and a broker is sending your file out to multiple different lenders to try and get you a loan. A broker can not change any terms or make a final decision in your funding process so you gain non benefit working with them. Direct lenders also have connections with other lenders and will sometime syndicate or pool their money to fund a deal. So just because the deal is funding with a different lender another direct lender can make changes that a broker would not be able to do. Brokers also make more money on programs like a cash advance than a line of credit or term loan, making the chances of getting the other options less likely. Hopefully you learned a lot about what business loan options are available and how to qualify for better business programs if you are stuck getting cash advances. If you are interested in getting a free pre-approval fill out an application now and see what you qualify for.

As the demand for medical and aesthetic laser equipment continues to grow, many businesses are seeking financing options to invest in the latest technology. However, finding the right option can be challenging, especially if your business is not yet established or if you have weaker credit. In this article, we will explore the financing options available for medical and aesthetic laser equipment, including factors such as credit scores, the length of time a business has been operating, and liquidity. Types of Laser Equipment Available for Financing Medical and aesthetic laser equipment come in a variety of types. Some of the most popular types of laser equipment for financing include: Acne Laser Treatments: This type of laser equipment is designed to treat acne and other skin conditions by targeting the bacteria that cause breakouts. Laser Hair Removal: Laser hair removal equipment uses lasers to damage hair follicles and prevent hair growth, making it a popular choice for beauty and medical spas. Laser Tattoo Removal: With laser tattoo removal equipment, businesses can help their clients remove unwanted tattoos using specialized lasers that break down ink particles. Pain Relief Laser Treatments: This type of laser equipment is used to treat chronic pain and inflammation by delivering targeted laser therapy to affected areas. Laser Skin Resurfacing: This equipment uses lasers to remove damaged layers of skin, promoting the growth of new, healthier skin cells. Financing for Med Spas that are Not MD-Owned One challenge that med spas often face when seeking financing for laser equipment is that many lenders require businesses to be MD-owned. However, Trust Capital is different. We provide funding for medical and non-medical lasers to individuals regardless of certification. This means that even if your business is not MD-owned, you can still access the financing you need to invest in the latest laser technology. Benefits of Financing Laser Equipment Financing your medical and aesthetic laser equipment can offer many benefits, including: Improved Cash Flow: Instead of paying for your laser equipment upfront, financing allows you to spread out payments over time, improving your cash flow and giving you more flexibility to invest in other areas of your business. Access to the Latest Technology: Financing allows you to access the latest laser technology without having to wait until you have the cash on hand to make a purchase. This means you can stay competitive and provide your clients with the latest treatments and services. Tax Benefits: Financing your laser equipment can also offer tax benefits, as the interest paid on your loan can be deducted as a business expense. Factors to Consider When Financing Laser Equipment When seeking financing for your medical and aesthetic laser equipment, there are several factors to consider. These include your credit score, the length of time your business has been operating, and your liquidity. However, even if your credit score is weaker or your business is not yet established, Trust Capital can help. We have financing options available for businesses of all sizes and credit backgrounds. Conclusion Financing your medical / aesthetic laser equipment can be a smart investment for your business, allowing you to stay competitive and provide your clients with the latest technology and treatments. With Trust Capital, you can access financing options regardless of your certification or credit score. Apply today to learn more about how we can help you finance your laser equipment and take your business to the next level in 2023.

Starting and running a medical practice can be an expensive endeavor. From purchasing medical equipment to hiring staff, there are a lot of costs to consider when starting and growing a healthcare business. Fortunately, there are many financing options available to medical professionals who need funding to grow their practices. In this article, we'll explore the different types of medical practice business loans and how to obtain them. Types of Medical Practice Business Loans Traditional Term Loans: Traditional Term loans are the most well-known type of business loan. These loans are offered by banks and other financial institutions and typically require collateral, good credit, and a proven track record of revenue. If you meet these requirements, you can apply for a traditional loan to finance your medical practice. Small Business Administration (SBA) Loans: The SBA offers a variety of loan programs to help small businesses, including medical practices. SBA loans typically have lower interest rates and longer repayment terms than traditional bank loans. However, they also require a lot of paperwork and a longer application process. Business Lines of Credit: A business line of credit is a revolving credit account that allows you to borrow funds as needed up to a predetermined limit. This type of financing is useful for medical practices that have irregular cash flow, as it allows them to access funds as needed. Equipment Financing: Medical practices require expensive equipment such as X-ray machines, ultrasound machines, and MRI machines. Equipment financing allows medical professionals to purchase this equipment without having to pay the full amount upfront. Instead, the equipment serves as collateral for the loan. How to Obtain a Medical Practice Business Loan Determine Your Funding Needs: Before you apply for a loan, you need to determine how much financing you need. Will you be renovating the office or buying a new MRI machine? Both require different funding amounts so it's best to know the cost before applying for financing. Research Lenders: Research lenders that specialize in medical practice loans. Look for lenders that have experience working with medical professionals and offer loan products that fit your needs. Trust Capital has funded many medical practices and has all of the programs mentioned above plus more! Gather Required Documentation: Lenders will require documentation to evaluate your loan application. This may include business and personal tax returns, financial statements (Business bank account statements), and business plans. Apply for a Loan: Once you have determined your funding needs, researched lenders, and gathered your required documentation, you can apply for a loan. Trust Capital has many loan options available and you can have offers in a couple of hours! get started online today and get a free preapproval with no impact to your credit score. In conclusion, medical practice business loans are a valuable tool for healthcare professionals who need funding to start or grow their practices. By understanding the different types of loans available and how to obtain them, you can find the financing you need to take your medical practice to the next level. Speak to one of our financing experts today to see which program you qualify for.

Are you searching for a construction factoring company but having no luck? As a construction business owner, you know how important it is to have access to funding when you need it. This is where Trust Capital can help. As a direct lender in the US, we offer a range of construction financing options, including our unique factoring program. Unlike traditional lenders, as a direct lender, we have the ability to make final underwriting decisions quickly. This means that even if you fall outside of our standard requirements, we can still provide you with an approval if your deal makes sense. We understand that every business is unique and we take all factors into consideration before making a decision. One of the financing options we offer is our invoice / purchase order factoring program. This program is designed to help construction businesses improve their cash flow by providing immediate funding based on outstanding invoices. With our program, you can receive up to 95% of the value of your outstanding invoices upfront, with the remaining balance held in reserve. What sets our invoice factoring program apart from others in the industry is that we do not require daily payments, and your customers will not be contacted for collections if you miss payments. This means that you can focus on running your business without the added stress of cash flow issues and confused customers. To get started with our invoice factoring program or to learn more about our other construction financing options, Click Here. Our team of experts is here to help you find the funding you need to take your business to the next level.

As COVID continues to financially impact small businesses across the country, many businesses are still struggling to access the support they need. The Paycheck Protection Program (PPP) was designed to provide relief to small businesses, but it has been plagued with issues from the start, including a complicated application process and limited funding. Now that the program has ended, small businesses across the country are looking for other options. If you're a small business owner who has been unable to qualify for a PPP loan, or if you were too late to sign up because you were focusing on your business, there are still alternative solutions available that can help. Trust Capital has a solution if you missed out on the PPP Loan. The program offers monthly payments, high funding amounts (up to $10 Million), competitive rates and provides the financial support you need to keep your business going. Our program has flexible loan qualification requirements, making it easier for more small businesses to qualify. In fact, traditional banks only approve around 20% of business financing applications meanwhile, our business financing options have about an 85% approval rate. We have programs with no credit requirement and offer both secured and unsecured options. We understand that every business is different, and we work with you to tailor a loan program that meets your specific needs. We also offer other small business loan programs, so you're sure you can find the best fit for your business. Our team of experts is here to guide you through the loan application process and answer any questions you may have. We understand that the PPP loan guidelines can be complex, so give us a call and we will let you know what you qualify for after a few questions, or you can get started online now. All you need to get started is attach your last 3 months of business bank statements to our secure application and we can have offers for you in as soon as a couple of hours. Whether you're looking for a COVID-19 relief loan, a stimulus package loan, or any other type of small business loan, Trust Capital has you covered. Get started today to learn more about our alternative PPP loan programs and see what Trust Capital has to offer. Get an instant approval online and see if you qualify for financing without an impact on your credit.

Business credit cards can be a great tool for managing expenses and building credit for your business. However, most business credit cards require a personal guarantee, which means that you as the business owner are personally liable for any debts incurred on the card. If you want a business credit card without a personal guarantee, a business line of credit might be a better option. A business line of credit is a type of business financing that allows you to access a set amount of funds, similar to a credit card. Get approved for up to $2.5 Million in funds. You only pay interest on what you borrow, making it a flexible and cost-effective way to manage cash flow and unexpected expenses. Unlike a credit card, however, you need a business bank account to apply for a line of credit. The funds will also be deposited into your business account. Instead of using the money on a credit card, you get a deposit into your account and decide where the money needs to go. Another advantage of this is you can use the capital for things like payroll and new construction or equipment. One of the main benefits of a business line of credit is that it can help you build your business credit score. By using the funds responsibly and making timely payments, you can establish a positive credit history for your business, which can make it easier to qualify for other types of financing in the future. A lot of business owners who received the EIDL and PPP loans are now using lines of credit. The interest is lower than other types of business loans and when working with a direct lender like trust capital, you are sure to receive the best rates. Another advantage of a business line of credit is that it can help you manage cash flow fluctuations. You can use the funds to cover unexpected expenses or to take advantage of growth opportunities without having to dip into your cash reserves or take on additional debt. It's important to note that a business line of credit is not the same as a business loan. While a loan provides a lump sum of cash that is repaid over a fixed term, a line of credit allows you to access funds as needed, up to a pre-determined limit. This can make it a more flexible financing option for businesses with variable cash flow or unpredictable expenses. In summary, a business line of credit can be a valuable tool for managing cash flow and building business credit. It offers flexibility and convenience, and can be a good alternative to a traditional business credit card and other business loans. If you have a business bank account and are looking for financing options, consider applying for a business line of credit.

Business loans can play a critical role in helping small business owners access the funds they need to grow and succeed. However, many small business owners are unsure about the requirements for getting a loan and the process involved. In this article, we'll answer some of the most common questions about business loans, so you can make an informed decision about whether a loan is right for your business. Are Small Business Loans Hard to Get? The answer to this question depends on a number of factors, including your credit score, the health of your business, the amount of the loan you're seeking, and if you're working with a private equity firm/direct lender or a bank. In general, smaller loans may be easier to obtain than larger ones, and businesses with a strong track record and solid financials may have an easier time getting approved. If you don't have the best credit score don't worry, most direct lenders have revenue based programs available. These rely mostly on your business revenue not your credit history. Most lenders require a minimum of one year in business to qualify for any program, but there are startup programs available as well. However, it's worth noting that even if you have a strong credit score and a well-established business, it can still be challenging to get a loan at a bank if you don't have a solid business plan or if you're seeking a loan for a riskier venture. In conclusion, business loans are easier to get through a private lender and can normally be done online or over the phone. If you are a well established business with a great credit history, a bank may be the best options for you. How Much Income Do You Need to Get a Business Loan? There's no set minimum income requirement for getting a business loan, as lenders will consider a number of factors beyond your income. However, having a steady and predictable source of income can make it easier to get approved for a loan, as it demonstrates your ability to repay the loan on time. Most direct lenders require a minimum of $10,000 in monthly revenue to qualify for any business financing program. At a bank it is mostly based off of your credit history, the business revenue has more to do with the funding amount than the approval process. Is it Hard to Get a Business Loan with an LLC? LLCs, or limited liability companies, are a popular business structure, and they can have some advantages when it comes to getting a loan (There are some loan programs only offered to businesses). LLCs also offer their owners personal liability protection, which can make them more attractive to lenders. For this reason it is quicker and easier to get a business loan with an LLC than most other loans. All that is needed is an application, business bank statements, a voided business check and a copy of your drivers license to receive funds. You can apply online and have an approval same day! However, the process for getting a loan with an LLC can vary depending on the lender. Some lenders may have specific requirements for LLCs, while others may not. Ultimately, whether it's hard to get a loan with an LLC will depend on your business's financials and the terms of the loan you're seeking. Can I Get a Business Loan with a 500 Credit Score? Having a low credit score can make it more difficult to get a loan, but it's not impossible. Some lenders may be willing to work with you if you have a strong business plan and a good track record of repaying loans. Another option is a loan that is based off of your business revenue and not your credit history. These "working capital" loans are only offered to businesses. It's also worth exploring alternative sources of funding, such as grants or crowdfunding, if your credit score is low. In some cases, these options can be more accessible and successful than traditional business loans. In conclusion, business loans can be a great way to get the funds you need to grow your business, but the requirements and process can vary depending on your credit score, business structure, and other factors. It's important to do your research and understand your options before you apply for a loan. Trust Capital has many options available and you can get an instant preapproval online. Start Now and see how much your business qualifies for.

A merchant cash advance (MCA) is a type of funding for businesses that may not qualify for traditional financing. It provides quick access to capital with a flat payback, often with an early payment discount. Payments are made either weekly or daily, making it an attractive option for businesses looking for immediate working capital. Pros One of the primary advantages of an MCA is the quick access to capital. The application process is often easier and faster than traditional financing options. Many MCAs are approved within 48 hours — a stark contrast to the weeks or even months it can take to go through traditional loan applications. Funds can often be used for any purpose, including working capital, marketing, inventory, payroll, and more. This makes MCA an attractive option for businesses who need to quickly access capital for a variety of reasons. In addition, there is no need for collateral. Approvals are based on the business’s ability to repay (revenue) and not on what assets it may have or credit. This makes it an attractive option for businesses that do not have sufficient collateral for a traditional loan. With a micropayment structure payments are more frequent but easier to make resulting in less of a chance of a default or late payment. Generally speaking no more than 5% of your account balance will be taken, leaving you to with a minimum of 95% of your working capital. Finally, payments are made daily or weekly, making budgeting easier. Businesses are able to pay off the advance quickly and reduce their overall debt load. Cons While there are advantages to an MCA, there are also some drawbacks. One of the primary drawbacks is the cost. MCAs can be expensive, with rates ranging from 10-50%. This cost is often justifiable for businesses who need access to capital quickly and who may not qualify for traditional loans, or when the return on investment is greater than the rate. Either way it is important to understand the terms and conditions of the loan before proceeding. In addition, repayment schedules are often tied to business sales and taken weekly or daily. As sales and revenue fluctuate, businesses may struggle to make timely payments, leading to late payment fees. This can create a cycle of debt, where businesses may struggle to make payments and find themselves deeper in debt. Finally, MCAs are not suitable for every business. It is important to weigh the risks and rewards of taking out this type of loan before proceeding. Overall, a merchant cash advance can be a great option for businesses that need quick access to capital or who may not qualify for traditional financing. However, it is important to understand the terms and conditions, including the general practices of these types of loans. If you think a merchant cash advance will be a good solution for your business, Trust Capital is a direct lender with flexible payments structure and low rates, get started with our online application and have offers within 25 hours!

Many people think that you have to have a revolutionary idea to build a successful company but that's not the case anymore, you can scale your current business or acquire a business and scale it into a million dollar company in a year if you profit through acquisition. By acquiring a new building or product line you can increase the profits of your business. You can even expand and start working in a related industry to your company to alleviate product cost and expand your customer base. There are many ways to profit from acquisition and in this article we will explain how you can use it to increase business profits in any industry. This all sounds great, but it's also sounding expensive. Where will you get the time and money to save up for all of these acquisitions? Business financing options are a perfect solution to this problem. Using your business you can qualify for multiple types of loans to get you what you need for your business. Financing isn't for everyone but with low rates from a direct lender like Trust Capital, the profits from your new business endeavor will be more than the interest paid on the loan. Accounting for that and the fact that you didn't have to put money down for a major expansion you have more money on hand and no worries about a cash flow issue. Businesses also have higher approval rates than personal loans making the process stress-free. Whatever it is you're looking for there is a financing option available for you. Need a new machine? Equipment financing is available. Looking for a new location? We have real estate programs. While it may take years to grow your business saving, with financing you can get started on your business goals right now. Ever have an idea for your business but had to save up first? Then by the time you have enough money your plan is outdated or even worse, your competitor "stole your idea". Don't let time get in the way of your future plans. Maybe you think your business is at capacity and there is no room for growth. While that may be true have you ever thought of acquiring a business either up or down your current supply chain? Maybe you own a wholesale metal shop. You have the newest equipment and your staff is always busy never overwhelmed. Expanding your current shop may not be a good business decision but buying out one of your customers who owns a small machine shop may be a good next step. You can take the profits that the business is currently doing and increase them by lowering costs of material or keep the price the same and get a tax write off for your first business. What about moving in the other direction? Maybe buying your supplier is out of reach for you. What about starting services that your business already uses? Let's stick with the metal shop as an example. Most metal shops have a scrap service that picks up the extra metal and pays them for it. If you have a network of metal shops you already sell to, don't you have the perfect client list for a scrap business? Sometimes expanding your business means using the resources you have available to you and thinking of another service that could be offered. We hope this article informed you on fast ways to scale your business. If you are looking for any type of business financing Trust Capital is a direct lender with over 15 years experience in the private equity space. Fill out our online application today and one of our representatives will contact you to go over your financing options.

Understand What Private Lending is and How it can Benefit Your Business What Is a Private Lender? We’ll start with the most obvious question: What’s a private lender? It’s a pretty broad term that applies to a wide range of funding providers on the market. Technically, any non-institutional lender (i.e. not a bank or credit union) can be considered a private lender. In addition to financial organizations, private lenders can also be: Direct lenders Mortgage brokers Mortgage companies Individuals Online lenders P2P lending networks Private lenders are responsible for loaning money to businesses and individuals. The main thing that separates them from the rest is the fact that they’re not affiliated with a bank or credit union. They could be an entire organization of lenders or a single person. Some examples of private lenders are Trust Capital Funding, Bluevine, and LightStream. Private lender loans are available for almost anything but personal loans and real estate loans are the most common. What Does a Private Lender Mean? Essentially, the term private lender means that a non-institutional lender is loaning you money. They’re not tied to any major bank or corporation and they do intend on profiting from your loan. The way they do that is by charging interest on the loan. Private individual lenders are generally more willing to work with people with a lower credit score or more difficult lending situation. They do this in exchange for a higher interest rate and they have a higher rate of acceptance on the loan as well. Easier Qualifications The Great Recession changed a great deal about the American financial landscape, including ushering in new lending rules and regulations to stave off another subprime mortgage meltdown. The knock-on effect here, though, was that it ultimately put millions of Americans out of the running for home loans they would have previously qualified for, at least with big banks and credit unions. Private lenders, because they are non-institutional lenders and therefore not bound by the same rules and limitations as big banks, make things easier. Private lender loans often include easier qualification requirements, ensuring that even would-be borrowers with low or no credit can access financial tools suited to their plans and goals. A Wider Range of Products Banks and credit unions offer a very limited range of loan products. They must limit their risk exposure and only cater to the very middle of mainstream America. The problem here is that there is no “mainstream” any longer. More and more, borrowers have unique needs and requirements that are not met by big banks and other institutional lenders. Private lenders can offer a much broader range of financial products, including various home mortgage packages, a combination of interest rate and APR options, business financing solutions, and a great deal more. This includes things like bridge loans, which make it possible for homeowners to buy a second home while still waiting on their old home to sell, and hard money loans. Real estate investors also find that private lenders for mortgages offer them access to the liquid capital they need when banks and other lenders would balk at the prospect. For instance, house flippers and renovators often work with private lenders. They are more comfortable with a nontraditional loan format than what a bank would accommodate. Think about it this way: Would a bank agree to provide a home mortgage, one that would typically come with a 30-year term and require a very high credit score and a significant down payment, to a renovation professional with little money down and no intention of living in the home? In most cases, the answer would be no. However, that doesn’t alleviate the need for that renovation pro to get access to capital to fund the repairs and upgrades necessary to fix the home and put it back on the market. Non-institutional lenders can offer a viable solution here. Mitigating Risks Many private lenders are not single organizations or individuals, but groups of people looking for a return on a modest investment. By pooling their funds together, they can help fund projects as wide-ranging as home flipping and multi-family housing construction, and then reap financial rewards when those projects are completed. For individual lenders and institutional lenders, the risks in these situations are simply too high. Conventional lenders, despite what common sense might dictate, are risk-averse. Anything that lies outside their comfort zone (which means it might impinge on their return) is simply too risky. So, they stick to conventional lending with well-defined parameters, even though those products increasingly don’t fit the needs of borrowers. Private lending platforms, particularly online direct lenders, but also P2P networks, help to mitigate risk, bring together individuals who would otherwise be unable to invest their capital, and provide funding solutions to people and companies who would not otherwise be able to achieve their goals and make their dreams a reality. Shorter Repayment Period All loans must be repaid, but institutional lenders are rigidly focused on long-term repayment periods. For instance, a 15 or 30-year mortgage falls under their purview. However, what if you want to pay the loan off in five years? What if you intend to pay it off in just a single year? In many cases, big lenders simply don’t support shorter repayment periods. Of course, this often means that private lenders are not ideally suited for borrowers looking for a long-term investment. For instance, if you’re interested in purchasing your first home and you intend to remain in that home for 10 years or longer, a conventional home mortgage is probably going to be the best option for you. However, things change if you need something with a shorter duration. Think about it this way: You’ve lived in your home for some time and built up around 30% equity. Your family has grown, and your needs have changed, and you decide it’s time to look for a new place to live. You’re stuck between a rock and a hard place, though. How do you buy a new home without selling your old one? Do you arrange for temporary housing during the interim and essentially move twice? It’s not a very comfortable position to find yourself in, but a private lender mortgage can help. In this situation, a bridge loan gives you the ability to buy a new home with the equity that you’ve built up in your current home. Working with a private lender, you could leverage that equity, make a down payment and pay for closing costs on a new home, and then wait until your old home sells to pay off the loan. In most cases, bridge loans are made for just six months to a year, and institutional lenders generally don’t offer them because of that limited duration. Minimal Paperwork If you have ever applied for a conventional loan, you know that “labyrinthine” is probably the best word to describe the paperwork you need to complete. There are documents on top of documents. Some papers need to be sent to this person, while others must go to that person. You need tax information, proof of income, and more, often stretching back many years. Just gathering the information that the lender requests can take weeks. And, once you think you’re done, the chances are good that the lender is going to ask for yet more, or maybe also request additional information that supports data you have already provided. It’s enough to make anyone want to throw up their hands and quit in disgust. You can be an eternal renter, right? Who wants to own a home anyway! Private lenders require minimal paperwork. Often, particularly in asset-based lending, there is next to no paperwork necessary. You need documentation on the asset, a loan application, and a few supporting forms, but that’s it. Compare that to the exhausting process involved with regular lenders, and you begin to see why so many people are choosing to work with private lending options today. A Viable Alternative Perhaps the single most important reason that private lender loans exist, and the foundation of everything we’ve touched on so far, is this: Private lenders offer a viable alternative to stick in the mud banks and traditional lenders. Increasingly, institutional lenders simply are unable to meet the needs of borrowers. Non-institutional lenders, on the other hand, are flexible and forward-thinking and able to offer innovative solutions to pressing capital needs. This is true whether it is financing the purchase of a home while you’re still waiting to sell your current one, start your dream business, flip real estate, or something else entirely. What is a Private Lender Mortgage? In unique situations, it can make more sense for lendees to look outside conventional loan options even for something like a mortgage. A private lender mortgage is a mortgage loan between a private lender and an individual. If the person receiving the loan is struggling to receive a conventional or FHA loan, they can look to private lenders for the money. The loan operates similar to how a regular mortgage loan would. The two parties agree on the sum, interest, and repayment period and then the loan is paid back over time through a monthly principal plus interest. Types of Private Lenders We’ve touched on it a time or two so far, but the topic of private lender types must be explored in greater length to help you understand these options. P2P Lenders P2P platforms, or peer-to-peer, if you prefer, are becoming more and more common today. Many of these operate online, but quite a few can be found in the offline world as well. Essentially, these programs allow individual investors with relatively little money to pool their capital and offer it to those in need. You might require a loan to renovate your home, to open a business, or for something else. These platforms connect you with the funding you need, and your payments go to increase the return of the investors providing the capital. Note that P2P platforms generally charge a fee to both the borrower and the lender, which is how they cover things like administrative costs, advertising, and the like. Invoice Factoring If you are a business owner and have unpaid invoices, but need capital to build a stronger company, then invoice factoring might be the right way to go. In this situation, businesses without an extensive credit history can gain access to liquid capital and only pay a small amount for the opportunity. Merchant Advances If you have an established business, then a merchant advance (or merchant cash advance, if you prefer) may help you obtain the capital you need. Merchant advances are typically made against a percentage of your future debit and credit card sales and will cost you a little bit in the long run. However, that’s often a small price to pay for a lump sum now. Note that in many cases, merchant advances also come with additional fees, so make sure to read the fine print before signing up for a private lender loan in these circumstances. Due diligence is your best friend and will help minimize your costs. Industry-Specific Financing Often, institutional lenders lack any sort of understanding when it comes to industry-specific requirements. For instance, trucking companies have needs that vary dramatically from retail stores, but big banks attempt to serve them both with the same financing options. Many private lenders for business are capable of offering financing packages that suit industry specifics to ensure that you’re able to deal with elements unique to your market segment. As an example, a direct private lender might be able to offer a trucking company financing options that allowed them to pay drivers, for fuel, to cover insurance, and the like, while still providing flexibility for logistics industry net billing. Private Real Estate Loans Many private lenders deal specifically with real estate. Some work with both residential and commercial real estate buyers/sellers, but others specialize in one or the other. Private lenders for mortgages base their offerings on hard assets – real estate in this case – and can deliver flexible terms, much shorter loan terms than what you’ll find with traditional lenders. They’ll also have higher loan amounts than what some lenders may be comfortable offering. Can Anyone be a Private Lender? Anyone with the money to lend can be a private lender. It’s important though that you only get a loan from a trusted, respected, and reputable lender. That said, a private lender could even be a friend or family member. It doesn’t have to be an organization or group of lenders. If you’re interested in investing in real estate, without buying real estate, you can earn high-yields when investing in a mortgage pool fund that allows you to earn passive income. Think of being a private lender yourself; you can invest and earn passive income by collecting interest from the loans you make. How to Choose the Right Private Lender Private lenders can offer some serious benefits, but they are not all the same. You must make an informed decision here. Not sure how to choose the right private lender for your needs? The following guidance will help. Consider Credibility: How credible is the lender? Are they trustworthy? Do past clients support the company’s claims? How well established are they? What kind of history do they have? Make sure that any lender you’re considering has a good reputation and plenty of satisfied clients. Lending Flexibility: One of the most common reasons to go with a private lender for business or personal needs, rather than a traditional bank or credit union, is for access to flexible lending options. Make sure that you’re getting those. Scrutinize the terms and conditions. Ask questions about anything that you don’t understand. If there is a lack of flexibility, or the lender cannot or will not answer your questions, consider choosing a different one. Industry Expertise/Specialization: If you’re seeking funding for a business, make sure that the private lender has at least some experience in the industry. This is particularly true for industries that don’t conform to the norm, such as logistics/trucking. The more familiar the lender is with your industry, the better the terms will be, and the more applicable the financial products will be to your actual needs. Check the Fees: All private lenders will charge fees on top of the interest on your loan, but not all of them will charge the same fees. Even those that assess similar fees may not charge the same amount. Make sure you ask about any fees that aren’t listed on the lending documentation. Add up the fees and charges so that you know exactly how much you’ll be paying for your loan. Pay Attention to Points and Interest Rates: You’ll find that points are common with private lending. You also need to pay close attention to the interest rate and the APR that you’re being offered. Basic financial know-how will put you in good stead here, but don’t be afraid to ask questions if you’re not sure how everything works and what you’ll ultimately be paying in the end. Scrutinize the Terms: Every loan comes with a contract that you must sign. This stipulates the terms of the loan agreement. Yes, the contract will most likely be written in legalese, but you must read it. This is where unscrupulous lenders will hide things that they don’t want you to know about that will increase your costs or put things more in the lender’s favor. If you do not understand something in the contract, ask for clarification, and don’t settle for anything less than clarity. In Conclusion The lending industry is vast and far more complicated than many people realize. It is only becoming more complex over time, too. While conventional lenders might have offered plenty of benefits many years ago, that’s not the case today. In fact, for a growing number of private and business borrowers, institutional lenders simply no longer work. Instead, private lenders offer innovative new products, reduced repayment times, flexibility found nowhere else, and many other advantages. From real estate to business loans, private lenders can help you fund your dreams. Looking to get the benefits of working with a private lender? You can apply for business financing today with Trust Capital by clicking Here. Sources: https://www.biggerpockets.com/blog/2012-12-31-private-money-lenders https://wallethub.com/answers/pl/private-lenders-2140692230/ https://www.novimoney.com/blog/private-money-lenders https://www.thebalance.com/how-to-get-a-private-loan-with-bad-credit-315574 https://www.thebalance.com/private-mortgage-how-to-do-it-what-to-watch-for-315693 https://www.thebalancesmb.com/what-about-a-private-lender-2947065 https://www.thebalance.com/advantages-and-disadvantages-mortgage-lenders-vs-banks-4590230 https://www.bankrate.com/finance/mortgages/which-type-of-lender-is-right-for-you–1.aspx https://smartmortgage.com/what-is-a-private-lender/ https://www.lendingone.com/private-lenders https://www.pacificprivatemoney.com/borrow/ https://www.harperfinancialboston.com/blog/4-things-consider-choosing-private-money-lender/ https://ccm-finance.com/resources/7-things-to-look-for-in-a-private-money-lender/

Have a hard time getting approved for a loan because of your credit score? We have a program to tell you about that may change that for you. A cash advance or revenue based financing is a type of business loan that can be obtained quickly and without a conventional credit check. Many individuals choose a cash advance because of the ease with which it can be obtained, as the approval process is often much simpler than traditional loans. And the best part? You can be approved with a credit score as low as 450! When it comes to getting approved for a merchant cash advance, the qualifications are often easier to meet than for traditional loans. Most lenders only require proof of revenue, a valid drivers license/ID, a voided check for the business, and a valid business bank account. These requirements are often easier to provide than the sorts of documents needed when applying for a traditional loan. Applications for traditional loans can take anywhere from a few weeks to months to process. By comparison, a cash advance can be approved and have the funds in your account in the same day. The availability of cash advances has made getting money for your business much easier. They can be a lifeline to those who need fast access to funds very quickly as other options can take weeks to finalize. A cash advance is a great short-term solution for managing finances. Merchant cash advances are often used when a consumer cannot qualify or wait for a conventional loan. In comparison to other types of financing, a cash advance is usually a less expensive option. They don’t typically require detailed background records, as lenders generally focus on the revenue and cash flow of the business. Your credit does not weigh in heavily on your approval but it may impact your rate if approved. That being said, a merchant cash advance is one of the easiest loans to get approved for with bad credit. The paperwork is minimal (normally done online) and you only need to present a few documents to receive your money. Trust Capital is a direct lender and we can give you an an instant preapproval online! Working with a direct lender means that you will receive the best rates and service possible, also no broker fees. Get started today by filling out our online application.