Business Loans Blog Posts | Page 6

Many small business owners facing financial challenges have applied for the EIDL program. As with other SBA loans, the EIDL program isn’t exactly the fastest source of funding. The addition of the CARES Act and expedited processing of loans has made it possible to receive funds faster than ever, but many business owners are still in the dark about when funding will come through.

Wondering what the difference is between EIDL and PPP loans? Or need help deciding which (or both) type of SBA coronavirus loan your business should apply for? Read on to compare/contrast these two different Small Business Administration loans for small business coronavirus relief and decide which is better for your needs so you can apply for it. 

On December 27, 2020, a new COVID-19 relief package was signed into law. This package allots an additional $284 billion for a second round of PPP funding, allowing business owners to receive a first or second loan. Applications for this round of funding started the week of January 11, 2021, and will continue through March 31, 2021.

Different lenders have different policies, some businesses may face delays, and not every loan timeline will be identical. However, we’ve looked at lender policies, SBA guidelines, and comments and complaints from business owners to help determine the timeline for PPP loans, from the time you submit your application to loan disbursal.

EIDL disaster loans are an existing SBA disaster loan program, but the US government has recently expanded the program, opening it up to virtually any small business, and added forgivable advances on EIDL loans. The advances, in particular, have gained a lot of interest from small business owners, as these advances do not need to be repaid.

With high borrowing limits, long repayment terms, competitive interest rates, and less stringent requirements than traditional low-interest loans, it’s no wonder SBA loans are highly sought by small business owners.

While the CARES Act has many moving pieces and parts, the sections dedicated to protecting small businesses and the people they employ will be a salve amid a tragic month of anxiety. One of the specific offerings in the stimulus package is the Paycheck Protection Program. These loans come with stipulations but are equipped with some generous benefits to help protect payroll. Keep on reading to find out what they might mean for your business.

One of the biggest challenges faced by trucking companies is waiting to get paid. You could potentially wait for weeks (or even months!) to receive payments from your customers. Fortunately, there’s a way to get paid quickly: invoice factoring. You can have access to instant (or near-instant) cash instead of waiting 30, 60, or 90 days for your customers to pay. But what’s the catch? In this post, we’ll take a look at invoice factoring for trucking companies.

Inventory financing is a type of asset-based loan in which the inventory you’re purchasing with the loan is used as collateral to secure the loan. Depending on the arrangement, the lender may also require you to put up your accounts receivable as collateral. The amount of financing you receive is directly related to the value of the inventory in question, usually 70 to 80% of the inventory’s value. Read our article for the full story on inventory financing, including rates and terms.

Many businesses may need to borrow money from time to time in order to purchase inventory. But what are the best loan options for small businesses that need to buy inventory?