Hard money lending is most often associated with investment properties rather than owner-occupied homes because commercial investments have a higher loan-to-value ratio and risk profile than residential properties. A typical hard money lender will charge an annual rate of 12% – 18%. The APR on this rate can be affected by the lender’s rate spread and origination points, which are additional fees or charges added to the loan amount.

What are hard money lenders?

Hard money lenders are private investors who lend directly to real estate professionals—and not through banks. Hard money lenders typically borrow funds from their assets, fund the loans with these borrowed funds, and then immediately sell the underlying collateral to repay themselves. This is much different from traditional bank lending, where a borrower gets a loan for a specific project with interest rates.

Typically, hard money loans are given because borrowers and investors have fewer restrictions. Due to this lack of insurance that you would find in government-regulated institutions, the amount of time it takes for funds to be disbursed or returned can be much longer. The higher level of risk taken on by an investor means that they expect higher gains.

Hard money loans are typically given to purchase land, buildings, or existing mortgages at a significantly higher interest rate than bank loans. This is because the risk to the investor increases over traditional bank lending due to lack of government insurance and more leniency in borrower qualification requirements.

At first glance, hard money lenders may seem like sketchy loan sharks with secret meetings in back alleys, but this isn’t true anymore. Nowadays, most hard money lenders are just investors who lend their funds as borrowers rather than through banks where there is much more red tape involved that can slow down or even prohibit business deals from happening. This method, especially with less government regulation and a lower risk for them due to the lack of insurance issued with bank loans. In turn, this means they can provide money much quicker and usually at a higher interest rate than what banks would normally charge you.

Hard money lenders carry a high credit risk because they don’t check your credit score or income before lending you money which means you could be turned down by a bank based on your current financial position but still be qualified for a loan from one of these investors. Because hard money lenders depend entirely on the collateral that is put into their deals, it takes less time to approve borrowers, but funds are paid back significantly slower than traditional banks do because there is no guarantee that you will get anything out of your investment if your collateral isn’t worth as much as you owe the investors.

How Does A Hard Money Loan Work?

Hard money loans are often used when traditional financing is unavailable for high-priced properties or to refinance existing debt. They consist of collateralized loans where either the property itself serves as collateral security or equity in the property provides some degree of security against default on loan. The benefits of hard money loans over other types are that they are fast and usually have lower rates than bank loans.

A hard money loan is collateralized with the property itself, which means there has to be some form of equity for the transaction to occur. Because these are high-risk loans, they will have a higher interest rate than traditional bank loans. For example, borrowers could see rates two or three times higher than conventional financing options on these loans.

A hard money loan is essentially a real estate loan where the borrower uses something other than cash as collateral. The lender holds legal title to the property until it is paid off in full. The terms are often shorter and come due faster than traditional mortgages. They are usually given one year or less, while standard mortgage terms can last for 30 years or more.

Hard money loans can also be known as bridge loans/gap financing, / or even piggyback loans. They are used to cover a gap between when you close your original loan and when your other loan is ready for closing. If you have too much time before your first loan closes, then hard money might not be the best solution. Its real purpose is to help you close on a property faster than expected without having to wait out the closing of another conventional loan product which could take several weeks or months.

Hard money loans often come due faster than traditional mortgages. They can also be known as bridge loans/gap financing or even piggyback loans. This type of loan is generally given for one year or less, while standard mortgage terms can last 30 years. The main advantage of using hard money loans is that they are fast and usually have lower rates than bank loans. Other types of loans include personal guarantees, mortgages, credit cards, overdraft lines of credit, business lines of credit, and small business administration (SBA) loans. There may be certain advantages to refinancing with SBA loans.

What to Consider When Choosing Hard Money Lenders

Reputation of Lenders

The first thing anyone should do is look into a certain lender’s reputation. The person should know that not all lenders have a good track record, and therefore, he should consider going for those who have been tested before and have been vouched as reputable by other parties. This way, it will be possible to avoid scams since the lender will never be able to take advantage of an individual because everyone knows what they can do.

Interest Rates

Another important thing to consider when looking for hard money lenders. Typically, this rate varies from one company to another, but one should go for those companies whose rates are slightly lower than others’ because these days, several individuals think that saving money will be meaningless if they cannot make profits out of it. This way, one might enjoy the benefits of lower rates even though he misses on some profit.

The Amount of Money One Needs

Another thing to consider is how much money an individual needs for his investment project because the size of that investment should be equal to or more than the amount needed by a particular lender that one commits to go for. For example, if you’re looking for hard money lenders who can loan you up to $1 million, then you shouldn’t bother contacting those lenders whose maximum loan value is $500k because there may be no point in applying with them when your project requires so more than what they can give.

Are You Able to Repay Money Instantly?

It would help if you also considered your repayment ability. One may opt for those hard money lenders who can loan you money instantly without asking much about the kind of repayment model that suits you best because it will be quite all right if you are capable of repaying fast enough. This will only work if an individual has more financial assets than his liabilities to repay what he borrowed in time without suffering consequences later.

Best hard money lenders

The Lending Club

The Lending Club is a peer-to-peer lending service that connects borrowers and investors directly. Investors choose which loans they want to finance and can spread their investment among hundreds of different loans (as little as $25 per loan). That means more chances for you to find the right borrower at the right time.

Prosper Peer-to-Peer Lending

With our new personal loans, we connect qualified borrowers with individual lenders from all over the United States. You can lend as little as $25 on an unsecured installment loan or up to $35,000 on a secured credit card consolidation loan – either way, it’s quick and easy.

USAgencies

USAgencies is a national online lender providing short-term fixed-rate, unsecured consumer loans. We approve loan applications in just minutes and fund the following business day. Your funds are deposited into your account without ever leaving our site, so sign up for free today.

Prosper Loans

Are you looking to consolidate debt? At Prosper, we understand that life happens, and sometimes unexpected circumstances arise that require money to be spent elsewhere. That’s why we offer no prepayment penalty, unsecured loans to help you get back on your feet and return to living life.

In conclusion, hard money lenders can help you bind with your financing and meet your needs in the short term.

How Hard Money Loans Work

The post Hard Money Lenders appeared first on Fund Small Business.

How Much Do You Need?

The amount of money you need to get started in a business depends on the size and nature of your business. For example, if you’re starting a small home-based business, $10,000 might be enough. If you’re starting a small commercial operation, $50,000 is usually necessary. But if you want to start something big and ambitious like a franchise or an online store, it’s recommended that you get at least $100,000 or more.

The amount of money you need to get started in a business depends on the size and nature of your business. For example, if you’re starting a small home-based business, $10,000 might be enough. If you’re starting a small commercial operation, $50,000 is usually necessary. But if you want to start something big and ambitious like a franchise or an online store, it’s recommended that you get at least $100,000 or more.

Types Of Start-up Business Loans

SBA loans

The Small Business Administration (SBA) is a government agency providing loans to small business owners. The SBA guarantees the loans to be repaid if the business fails to pay back the loan. Loans given by SBA are used to buy equipment and other purposes that will help you start a new business.

The maximum amount you can borrow from SBA is $150,000, and you need to pay back your loan within 30 years. If you decide not to repay your loan on time, SBA may take your assets like property, vehicles, and cash as collateral. You have to provide a personal guarantee if you don’t repay your loan on time or if your business fails to pay back the loan.

Microloans

The microloan program is a government-sponsored program that provides small loan amounts to entrepreneurs interested in starting a business. There are two types of microloans: the first one is for self-employed people, and the other is for those who want to start up their businesses but don’t have enough resources to fulfill their dreams.

The criteria for getting a microloan are simple: you should be at least 18 years old, must be employed, and have an income of at least $25,000 per year. You also need to submit your business plan, financial statements, and supporting documents like tax returns. The approval process can take up to three months.

Personal business loans

If you have a business idea and want to start your own business, consider applying for a personal business loan. You can get a loan from private lenders with low-interest rates, usually above 10%. If you cannot repay the loan on time, the lender has the right to seize your assets like real estate and vehicles. However, if you have experienced financial difficulties in the past, it might be challenging to get a personal business loan.

Grants for startups

If you want to start up your own business but don’t have enough money to invest in it, then you can apply for a grant. The grants are available for small businesses and startups. The grants are usually from government or charitable organizations.

There are two types of grants: startup grants and expansion grants. Start-up grants are usually offered for new businesses, and expansion grants are for existing businesses that want to expand their operations. There is no maximum limit on the grant amount you can get (although the amount is usually less than $25,000). However, you should ensure that the business will be profitable enough to repay the loan on time. If it is not, then the grant money will be lost.

Friends and family

You can also get a small business loan from your friends and family. In most cases, the money will come from their savings. However, it is essential to ensure that you have a good relationship with your friends and family members. You should also make sure that they are willing to give you money because they might not afford it if you fail to repay the loan on time.

Business Credit cards

Credit cards are great for small business owners as they can get a significant amount of money quickly. However, you have to make sure that you repay the credit card debt on time. You should also make sure that your credit card company will not cancel the credit card on you. In most cases, this is impossible because of the nature of the business. If your credit card company cancels your card, you will have to pay a high fee for canceling it and applying for a new one.

Crowdfunding

Crowdfunding is a new way of raising funds for small businesses. You can get a small business loan from crowdfunding platforms like Kickstarter and Indiegogo. These platforms help you raise money for your business by selling your product or service to the public. The amount you get from the platform depends on how much money the platform has raised and how many people have contributed to your campaign.

What to Look for when shopping for startup business loans

Interest rates

As a small business owner, you need to make sure that the interest rate you get when you take out a loan is reasonable. You will not be able to pay back the loan if it is too high. It is essential to compare the interest rates that different companies offer you and choose the one which gives you the best deal. You should also compare the terms of your loan with those of other companies to make sure that your business can grow in the future.

Duration of your loan

It would be best to consider how long you would need to repay your loan because it depends on how much money you need for your business and how quickly it will grow for you to repay it. If you are getting a short-term loan, then this means that there are many risks associated with it, such as not being able to repay it on time or having an unexpectedly high repayment amount compared with what was expected by you.

Repayment amount

If you are getting a short-term loan, then this means that there are many risks associated with it, such as not being able to repay it on time or having an unexpectedly high repayment amount compared with what was expected by you. The repayment amount is the amount you will have to pay back every month, and it depends on what your business does. It also depends on how much profit you make each month and how long it will take for you to get enough profit to pay back the loan.

Payment schedule

The payment schedule is when your loan will be paid off after the borrower has paid back only a portion of their debt. The length of this period will determine how quickly your business can grow for you to repay it. If you are getting a short-term loan, then this means that there are many risks associated with it, such as not being able to repay it on time or having an unexpectedly high repayment amount compared with what was expected by you.

Repayment period

The repayment period is when your loan will be paid off after the borrower has paid back only a portion of their debt. The length of this period will determine how quickly your business can grow for you to repay it. If you are getting a short-term loan, then this means that there are many risks associated with it, such as not being able to repay it on time or having an unexpectedly high repayment amount compared with what was expected by you.

Find and Compare Small-Business Loans in Your Area

Startup business loan options are available in various areas so that you can find the best deal for your business. You’ll want to compare the rates and terms of different loans, as well as the types of companies that are eligible for them. When you’re looking for a startup business loan, be sure to consult with an experienced lender to get the best deal for your business.

CONCLUSION

Small-business loans are an excellent option for entrepreneurs. They are available in various sizes and can provide the money you need to start your business. However, finding the right loan for your business can be challenging. Compare different loan options and find the best one for your business.

The post How to Get a Loan to Start a Business appeared first on Fund Small Business.

The loan decline routine is not an uncommon occurrence across the world. Aside from financial institutions, numerous banks are increasingly declining loan applications owing to a variety of concerns. As a result, the alternative lending sector has become the only way for all business owners to obtain a loan.

Business Lending Blueprint is a leader in the market

The Business Lending Blueprint is an amazing result-driven training and coaching program that aids people in launching and expanding their businesses as Business Loan Brokers. The company’s excellent instruction is assisting a large number of people in reaching tremendous heights and earning a lot of money. The training program improves direct access to marketing tools that lenders must use.

The business lending blueprint does not disburse loan amounts to start a business, but impart knowledge for loan acquisitions and to build credit scores. The firm provides an e-learning platform to train an individual that aims at growth in his life leaving 9 to 5 jobs. The interested individual who wants to become a business owner is eligible for the training. The individuals can become versatile business loan brokers by the company. . They teach them to be business loan brokers by exposing them to the alternative financing market, where they may assist small firms in obtaining cash.

Effective training and quality sessions

The training program of the company is one of a kind. Yes, the courses are taught in the form of different videos for a clear understanding of the loan officers. Different courses are covered through different videos. Expert guidance is provided for the participants to their understanding level. The experts arrange one-to-one sessions for the loan brokers to understand and become an expert in the concept.

The one-on-one meetings and video sessions vastly improve the audience’s understanding. A weekly coaching workshop for lenders is a once-in-a-lifetime opportunity for brokers to discover how the concept works. These workshops ensure that they are completely informed and at the top of their game. These training programs raise the standards and abilities of the loan broker for them to be successful. Furthermore, with the assistance of Business Lending Blueprint, each participant has an equal opportunity to achieve their goals.

Business loan broker

With the assistance of the Business Lending Blueprint firm, business loan brokers may launch their own businesses. Aside from business setup, the firm assists numerous small business units in obtaining the funds they require to develop their operations.

Other features of Business Lending Blueprint firm

This Business Lending blueprint company helps its participants become qualified business professionals. Aside from assisting them in becoming business professionals, the organization is also assisting them in establishing lending choices. Hands-on solutions are provided for brokers to support their clients in a complete manner. As a result, clients may achieve new heights with the assistance of loan brokers and their recommendations based on residual income and upfront income.

The goal of training is for the Business Lending Blueprint company to provide fundamental knowledge to its loan brokers. The only goal of the company that it wants its members to understand is personal growth.

What are the benefits of working as a business loan broker?

In the alternative financing market, being a business loan broker is critical. The reason for this is that the industry provides an opportunity for valued products to be accessed. They can also sell lucrative items to other companies. Almost all businesses demand capital to build their units. As a result, a never-ending market for this lending industry is required to allow other business units to grow as they see fit.

Is Business Lending Blueprint a Scam?

No, not at all. It is a genuine company that has been running the business for many years. Oguz Konar, the company’s founder, aims to raise the bar for brokers and their clients. As a result, intensive and quality training is provided with a profit guarantee. Yes, it is not a difficult duty for the loan broker because they may make a lot of money if they stick to the essentials. Brokers can run a profitable commercial lending operation.

Earning through online business

Yes, the brokers of Business Lending Blueprint can start an online business as they wish. They can run the business on either part or full-time basis.

Can I Become A Business Loan Broker?

Yes, regardless of your career, you may become a business loan broker if you have a strong desire to learn new things. The Business lending Blueprint company’s training and tactics sharpen your abilities and mold you into a successful loan broker capable of meeting your clients’ needs. If you want to learn, it is not difficult to work.

How much does the program cost?

Two options are available, such as paying the full amount of $2,197 or you can pay it on an installment basis for three months at $845.

What about a refund policy?

Refund is subjected to the terms and conditions of the company.

Advantages of The Business Lending Blueprint?

Various stream of income options

Valued products access

Limitless earning

No experience is required to become a broker

Support from company

Cons

Require your patience and time to establish yourself

You will have to pay for learning

Final verdict

Are you determined to join The Business Lending Blueprint and become a loan broker? If you answered yes, you made a wise decision, provided you are willing to face the obstacles outlined in this article. Aside from challenges, you will need to be psychologically determined without losing your concentration because a minor setback will affect your perspective. So, be clear and intelligent enough to understand the notion in order to become a successful company loan officer. Indeed, you are eligible to earn an income if you have proficiency in the field through training.

Check out Business Lending Blueprint

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But, before you start looking around for loans to start a business, you need to put together a business plan. A business plan is important when it comes to finding the right loan for you and your business.

Can I Use A Traditional Lender?

Many traditional lenders are reluctant to get involved when it comes to providing loans to start a business. If you have no previous business history or track record, finding a business loan is often challenging. That does not mean you are not going to find a suitable loan for you.

Recognizing Startup Costs

It is important to acknowledge you are going to have startup costs. Before you go ahead and apply for a loan, try to quantify all of your startup costs.

For instance, when you can’t work from home, you will need to find suitable premises. On top of that, you also need to factor in other costs including equipment and technology purchases. When you are going to sell products, you need to work out the cost of the initial stock purchase.

Once you have worked out the startup costs, you also need to take into consideration ongoing expenses. They include fuel for business vehicles, payroll, loan repayments, taxes, and rent.

You will have a better chance to get loans to start a business when you present associated costs honestly. Doing so, shows a potential lender that you have an understanding of business fundamentals.

Establishing A Business Plan

Your business plan needs to include a financial forecast. In other words, you need to do your best to forecast sales, profit, income, cash flow, and annual revenue.

Also, explain to your lender why they should lend money to you. Let them know how you are planning on making a unique contribution to the business sector you are planning to enter.

How quickly is your business going to grow? By how much do you expect your business to grow year on year? A lender would like to have see a revenue forecast.

Do You Need A License or A Permit?

You need to find out if you need any special licenses, permits or registrations to operate your business. All of this is part of making your business official.

Maybe licenses and permits don’t seem like a big deal to you, but in the eyes of a lender, they are crucial. If you trade unlicensed, your business could end up with huge fines and subsequently go bankrupt.

Get Your Documentation Together

Getting your documentation is an important part of any new business startup. Make sure you have available the right documents including bank statements, tax records, and accounts from other businesses you may have owned.

It is also a good idea to show a lender your resume or curriculum vitae. Do you have any previous experience in this business sector? When you do, it is a bonus for both you and the lender.

Your Cash Flow

One of the common problems a startup faces is often cash flow. During the first year, you may have more money going out of the business than coming in. You need to make sure that you can still meet your living expenses and other expenses you may have.

Are you going to take a salary or do you have another source of income until the business starts to make a profit? At all times make sure that you have enough cash flow to operate the business.

Startup Loans With Bad Credit

Can you still get a startup loan with bad credit? Yes, there are lenders out there that will take you on even if you have a bad or poor credit record.

If you do have a bad credit record, you will need to be aware that your loan will come with more terms and conditions. A lender may only release you funds on a weekly or monthly basis.

Specialist Credit Cards

The most important factor is to figure out your startup costs and operating capital.

When you don’t have to borrow a great deal of money, you should consider using business credit cards. Specialist start business credit cards are a fantastic way of borrowing money often with a 0% APR.

Business credit cards are often easier to obtain than business loans.

Speak To Your Bank

When you have been with your bank for a long time, it is a good idea to speak to them. After all, they should know you and you should know them.

Many banks have a department that deals with loans to start a business. However, that does not mean you should sign up with them. The best thing you can do is to “shop around” for the best loan rates for your startup.

Equipment Financing

Equipment financing is an important part of loans to start a business. This is where commercial lenders are often prepared to take more of a risk.

One of the great things about business loans to buy equipment, is that the equipment can be sold off if the business fails. When you just want to borrow money to cover rent and stock purchases, a lender often offers you a loan at a higher rate.

When it comes to business loans for equipment, the lender may reason that he can get his money back. Depending on the industry, there are lenders out there that specialize in equipment financing for that particular business. Finding out who they are should be easy if you are already familiar with the industry.

Conclusion

Yes, you can still find loans to start a business. Over the last few years, loans may have become a bit harder to find as many have started their own businesses since the start of the pandemic.

But, there is no reason why you should not give it a go. Even if you have bad credit, you may have a fantastic business idea that a lender would like to invest in. Come up with a good business plan and make sure that you are professional. You never know what you can achieve unless you are prepared to try.

The post How To Find The Best Loans to Start A Business appeared first on Fund Small Business.

Many small businesses fail to get the funding they need from traditional sources such as banks and investors. Crowdfunding offers an alternative method of getting the capital required, but it has traditionally been used for charitable purposes or films and music albums.

Now it looks like entrepreneurs may be able to use crowdfunding options designed specifically for business start-ups:

Top crowdfunding platforms.

Kickstarter

Kickstarter is the biggest and most famous crowdfunding platform. Most well-known projects came from Kickstarter, including Pebble (smartwatch), Oculus Rift (virtual reality headset), and Twine (data logging system for the Internet of Things). Since its launch in 2009, more than 12 million people have pledged more than $2 billion, funding more than 91,000 creative projects.

Indiegogo

Indiegogo launched when all crowdfunding platforms were struggling to be legal. It was launched as an alternative to Kickstarter and other popular crowdfunding sites. The site continues to help raise money for personal causes or investment opportunities by using rewards-based crowdfunding – users get something for their donation.

Patreon

Patreon is a crowdfunding platform that focuses on creative funding content, such as webcomics and podcasts. As of January 2017, it has 1 million active patrons financing the creative work of over 100 000 creators.

Ulule

Ulule is one of the first European crowdfunding platforms and focuses on creative projects such as films, books, music, and theater shows. It was launched in France and is available in 15 other countries across Europe. A full list of supported countries can be found here.

MicroVentures

MicroVentures is a new American equity crowdfunding portal for start-ups and emerging companies looking to raise to $1 million (the cap will rise soon to $2 million). The portal invests its money into each deal it brings to market, known as the capital stack.

Fundable

Fundable offers sites that people can use to raise money for personal causes or investment opportunities. It is a crowdfunding site where funding projects are similar to Kickstarter’s work but with equity investments.

CircleUp

CircleUp was built for established small and medium-sized companies rather than early-stage start-ups, which creates an opportunity for investors who might have missed out on the first wave of Internet IPOs at the turn of the century. The platform has more than 40 brands being funded through its network, including EverlyWell (health & wellness), Fora (nutrition bars), and PillPack (an online pharmacy).

SeedInvest

SeedInvest is an equity crowdfunding portal that allows unaccredited investors to participate in start-up companies. Unlike Kickstarter, where backers can get pre-sale items like T-shirts or posters in exchange for their money, SeedInvest users invest in the company’s future and receive shares of it when they make a successful exit.

CrowdCube

Crowdcube is one of the most well-known equity crowdfunding websites, having helped raise more than 2 billion pounds since 2011. The platform works with over 1400 start-ups and has provided funding for some big-name brands, including Hootsuite (social media management), Skyscanner (flight comparison search engine), and Graze (snack box delivery service).

FundRazr

FundRazr is another crowdfunding platform, except the funding is focused on helping non-profit organizations. There are no rewards, just donations. Unlike other crowdfunding platforms, FundRazr is more developed for social media use (i.e., sharing projects on Facebook).

Crowdfunder

Crowdfunder is an equity-based crowdfunding site that connects investors with entrepreneurs to build strong, prosperous communities. The company is based out of Los Angeles and has helped fund some big-name brands like Lyft (ride-sharing), Grammarly (online grammar checking tool), and Hyperloop One (transportation concept).

GoFundMe

GoFundMe is one of the most popular personal crowdfunding platforms. As of January 2017, users have donated $3 billion to help personal fund causes such as medical treatment, public celebrations/obituaries, and education.

WeFunder

Wefunder is a popular crowdfunding portal that provides investments for early-stage companies. They also allow users to invest in private equity funds and real estate investment trusts (REITs).

RealtyMogul

RealtyMogul is a real estate crowdfunding platform that allows investors to buy shares in individual properties or pools of properties. Billionaire real-estate mogul Jillian Manus started it. As of April 2016, the platform has raised $1.4 billion for projects located in the US and Canada.

SelfMade

SelfMade is another equity-based crowdfunding platform that provides early-stage companies with high growth potential. The company claims it has helped fund over 40 companies since its launch.

FundablePro

FundablePro is another crowdfunding portal that aims to help start-up companies secure funding. However, it allows approved companies to seek up to $500k in equity. This platform only deals with accredited investors who are defined as those who have a net worth of at least one million dollars.

NickelStarter

NickelStarter is another crowdfunding site where users can raise money for projects or products they are developing. The platform’s focus is on inspiration rather than financing, so anyone can use NickelStarter without applying or submitting an idea.

Fundraise

Fundraise is a real estate crowdfunding platform that allows users to invest in commercial properties. The company claims that the minimum investment amount is $500; however, it varies depending on the project.

PatchofLand

PatchofLand works similar to Fundraise in that it allows users to invest in large-scale real estate projects, but instead of focusing specifically on commercial spaces, it provides residential options. As of January 2017, approximately $1 billion has been invested using this platform.

SelfStartr

SelfStartr works like Kickstarter by allowing entrepreneurs and start-ups to post their projects online so backers can fund them. However, unlike Kickstarter, which only deals with creative projects (i.e., films, music, games), SelfStartr provides entrepreneurs with creative or innovative ideas (i.e., technology, software) the ability to receive investments.

Give us your receipts

Please give us your receipts works like Kickstarter in that it allows backers to donate money to their favorite creative projects. However, this platform is slightly different due to its focus on sustainability. Instead of rewarding backers for donating, they instead encourage people to post pictures of receipts from businesses that are harming the planet so the public can avoid shopping there.

Upstart

Upstart allows users to invest in promising individuals rather than ideas. Users can choose which individual they would like to give funding to based on their risk level or qualifications. For example, a college student may be at higher risk because they don’t have experience running a business yet. This platform also allows backers to share their connections within the Upstart community, so entrepreneurs with viable business plans are easier to find.

In conclusion, crowdfunding is a great alternative to traditional raising capital for companies and projects because it creates a win-win situation for all involved.

The post Crowdfunding for Business appeared first on Fund Small Business.

All About SBA Loans

What Is an SBA Loan?

Lack of funding is a major barrier to the start and expansion of a business. This is more so in small businesses because they have access to a narrow pool of lenders. The government appreciates this as much and has offered viable and concrete solution to the problem, the availability of SBA loans for instance.

Jared Hecht, writing for Forbes, states that an SBA loan is a loan which has partially been guaranteed by the Small Business Administration. Because this loan option is a guarantee by the government, the issuer of the loan carries fewer risks, and therefore, lenders are more willing to offer such loans.

The Top SBA Lenders

As a business owner, you cannot make a direct application to SBA. Rather, you are going to work hand in hand with approved lenders, who will evaluate your individual case, and make a decision on whether to extend a loan to you or not.

There is no shortage of SBA lenders, however, there are some which have been observed to be the most active. These include the following:

–Live Oak Bank

–Bank of the West

-Funding Circle

–Fundera

–JP Morgan Chase

The type of lender you choose should depend on the specific needs and preferences of your business. For instance, if you want a quick and an easy small loan, then the lender to choose is Funding Circle. Similarly, if you want a big loan, then, the best lender in a big loan is Bank of the West.

SBA Loan Types

There are various loan programs under the SBA. The SBA (7) a standard Loan is the most common type of loan extended by SBA. This is the loan applied for when businesses are seeking financial help in both the short term and the long term. In this loan, both the borrower and the lender can negotiate a favorable interest rate, however, it must meet the interest rate requirements by SBA. For the loans that are less than $25,000, then, one may not be asked to present collateral.

The SBA (a) Small Loan is the type of loan that is given to an applicant seeking over $350,000. With this amount, one is required to present collateral that has a reasonable price. Again, the maximum amount of interest required by SBA applies.

The SBA 7 (A) Express Loan attracts an amount worth $350,000. With this application, one can access the loan in a record 36 hours. Because this loan has a quick turnaround, the amount of collateral required is 50 %.

The SBA Caplines Loans are loan applications for the short term needs of the business. There are divided into four main categories: seasonal, contract, builder, and working capital. When applying for this loan, be sure to look at your business needs in order to choose the best category.

The SBA 504 Loan is a loan for businesses’ economic development, and therefore, it cannot be used for inventory or working capital. Benefits for this loan include lower cost of interest, lower loan fees, and a lower down payment.

Pros and Cons of SBA Loans

There are a plethora of benefits with applying for SBA loans. To start with, the SBA loan is more lenient to qualify. This is because the government backs as much as 80 % of the loan. The government works to empower its citizens, and in this case, it provides financial options which are not available in commercial lines. Unlike the commercial loans payment which gives a shorter time, the SBA loans can be paid over a longer period of time. This gives the borrower flexibility when it comes to loan re-payments.

The Harvard Business School notes that SBA offers critical financial services to areas which are neglected. As a matter of fact, the program directly touches on the lives of the American people.

SBA loans are not without a fair share of challenges. The biggest barrier to the SBA loan is the amount of paperwork required. This is not only tedious but also time consuming. It should also be noted that the SBA loan takes a longer time to be approved. Therefore, if you are using this option, be sure to make an application for approval and processing.

If you default on your loan, the first thing to be liquidated is your collateral. Therefore, you have to make an informed decision prior to taking this loan. In this regards, it is not prudent to give your home as the collateral.

How to Apply for an SBA Loan

The first course of action is to evaluate if the loan is going to work for you are not. This will largely depend on the health of your business. Much as the terms may be lenient, bear in mind that this is a loan that you are going to pay back.

If you feel that this is the type of loan that you would want, contact your local SBA office with your complete application. The SBA local office will look for factors such as the business model, the amount of loan you are seeking, your credit history, and the possibility of getting collateral for your loan.

You must be armed with a concrete business plan detailing the scope of your business and its viability. You must show the willingness and ability to commit at least part of the loan to the project.

In exceptional circumstances, one can apply for two loans. However, if you are to qualify for two loans, you must have a good credit standing. At the same time, each type of loan is going to attract its own set of requirements, and therefore, you must meet them individually. In addition to that, you must give evidence of a reliable cash flow for your business.

Conclusion

Whereas SBA loans can have a tedious application process, the benefits of are equally rewarding. There is no reason why a business should stagnate due to lack of finances, when an SBA loan is just online steps away. Overall, an SBA loan stands out among the peers.

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Online Loans

Those business owners who are struggling with bad credit over the past few years would find it great in fact that there are plenty of online lenders who would not mind. Many lenders would give you money in a short amount of time. You just need to give them the requirements that they seek. The short turnaround time would be awesome for those who would want to start right away. Since the process is a bit easy, there is a chance the interest rates are high for some lenders so better keep that in mind. You can reach out to your smartphone and apply for a loan almost instantly so that you would know right away if they would accept it or not. You can even talk to a member of their customer service team right away via chat if you would like to know more about these online lenders. Of course, there are always scammers in this business so that is one thing you should watch out for. There are a few lenders out there who give flexible lending processes that you should be happy about. You can set a meeting with them so that you can choose the process that favors you the most. You can earn big in one month then not much in the next one and that could pretty much depend on a whole lot of things.

Bank Loans

You can’t blame yourself for going to this option since banks have been providing loans for several years. They won’t hesitate to let you know where you stand in terms of getting a loan. They would surely be upfront with you and not sugarcoat you so you must be completely honest with them. Also, the interest rate is a bit low as that is another thing you must consider. It would ideal to contact a bank where you already have an existing account. After all, that would mean you already have an existing record with them so they would more or less know about your credit history. It would be hard to start from scratch with banks that are a bit too tough to handle. Add that to the fact that banks have their own staff to go after you if you don’t pay your debt on time. If you don’t have an existing relationship with a bank then go to the nearest one as it won’t make sense to go to a far one. There are plenty of banks and there is like in every street and all of them would give you dozens of options before you even know it. It is normal to think you need to have some kind of collateral for your loan to be approved. The good news is that is not really always the case and you can talk to someone who works at the bank so that your loan would get approved with a few additional requirements.

Small-business Grants

This option is for start-ups who want small business funding and don’t really want to pay it back. Yes, investors would love to invest in your business and see if they can get anything out of it. You can expect there to be plenty of competition for these grants so you should do something that would put your business on a whole new level. It is no secret that is going to be extremely difficult since your competitors would be gunning for the same thing. Investors will look at all the aspects before they even make a decision. This is similar to Mark Cuban’s ‘Shark Tank’ show where small business owners present amazing concepts and let them know that they have the opportunity to invest ins something big. It is all about being pretty confident in what you have to bring to the table. There are plenty of agencies and corporations that offer small-business grants and you should always keep in mind that you are going to get something from it in the long run.

Crowdfunding

In recent years, Crowdfunding has become more and more popular. It is a process where you put up your business concept and if people think it is cool then they can donate whatever amount they would like. Of course, the downside here is that you should make the business concept pretty interesting for everyone to follow. If not then you can’t really tell how this is going down in the eyes of the beholder. Better be ready for some naysayers though. It is evident you are going to expose your business in the eyes of the public. The pressure will be on your shoulders as you try and make a concept that will stand out above the rest. As it turns out, you can only turn to you and your business partners to make an outstanding presence online. It is no secret you need a ton of visuals but you can only remedy the flaws of nature. After all, you would want to make a long-lasting impact on whoever gets a long look on your crowdfunding page and make it great for everyone involved.

Credit Union Financing

Similarly to banks, their interest rates are not that high. If that does not make your eyes pop up in excitement then I don’t know what will. Also, there are plenty of loan options here so you can choose the one that you are most comfortable with. After all, this is money we are talking about so it is a pretty delicate matter. Believe it or not, some credit unions actually offer some sort of membership but that would depend on the current status of your business. It is no secret that is one golden opportunity that you should take advantage of though. Of course, it is all about the right timing as you are not the only one who would want to make it big. While credit unions are often tied to your community, you’d want a more personal option so that you would want something a bit confusing. Talking to the lender can make you feel good.

SBA Loans

This is for businesses that have already been in the industry for a year or two. Surely, you can’t blame yourself if you run into some issues as that is normal in daily life. With the pandemic, you are certainly not the only one needing some financial assistance and there can be a lot of help coming from different sources. Of course, you can compare this to bank rates but the rates are really favorable so you won’t have to return that much when the time comes for you to do that. Just like banks, it would be better to start your search with institutions that you’ve worked within the past. There is a huge chance you did some sort of financial agreement with a bank or lender in the past and they more or less know what you are capable of. Thus, there is a chance they would give you favorable rates so you would find it hard to turn down an opportunity like that.

Now that you know the many options for small business funding then you can set your sights on a specific one. Of course, you should set the record straight regarding what your business is highly capable of. It is one thing for you to be extra confident of your business and another thing for the lender to analyze. They can think differently about your business and there is nothing you can do about that since that is entirely their opinion. What’s important is that you get this out of the way so you can focus on more important things about your business. It is quite obvious you need to do a few things so that financial problems don’t happen again in the near future. However, that is pretty hard to prevent as you would always need to be on top of your game. All businesses run into several problems at some point and you just need to be ready when these things happen somewhere in the future.

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Grants are a powerful tool for small businesses. Grants can provide the funding and resources they need to grow, succeed, and stay competitive. Grant applications are easy to complete, and grantees receive support from various sources, including business consultants, marketing experts, and business partners. Grant programs are available in several different sizes and can provide a wide range of benefits for your business.

Small-business grants are a great way to get financial assistance for your business. Grants can help you cover the costs of starting and growing your business, as well as paying for marketing, equipment, and other required expenses. Grants can also be used to help you expand your business or get new customers. There are many different types of grants available, so it’s essential to find one that meets your unique needs.

Small-business grants can be funded by the government, private foundations, and other organizations. Most grants require a plan to use the grant funds and are time-limited to prevent waste.

How to Apply for a Small Business Grant

To get a small-business grant, you will need to apply. Application forms may be available on your state government’s website or from your local chamber of commerce. You may want to contact your state or city government agency or chamber of commerce to find out what type of grants are available in your area.

You may also want to check out the websites of local foundations or private organizations that offer small-business grants. They may have grant applications available, or you may be able to find a grant program on their website.

Grants are available from foundations and organizations that support small businesses. Grants can be for various reasons, such as providing financial assistance in the form of loans, grants, or other forms of aid. Grant programs may also offer tax breaks or free equipment to help small businesses succeed.

Coronavirus small-business grants

Coronavirus small-business grants are available to individuals and small businesses. The government and private foundations offer grants. The grants have time limitations and require a detailed plan of how the grant funds will be used.

What to Include in Your Coronavirus small-business grants Application

The grant application form will ask you for information about your business, your business history, and a detailed plan for using the grant funds. The grant applications may also require a letter of recommendation from a local chamber of commerce or other organization.

Coronavirus small-business grants Examples

Coronavirus small-business grants are available to individuals and small businesses. The grants have time limitations and require a detailed plan of how the grant funds will be used.

Coronavirus Small Business Grants: The Small Business Administration (SBA) is a federal agency with programs that can help you with your business. They have grants for small businesses that need capital or help you with your business plan. The Coronavirus small-business grants are available to individuals and small businesses. The grants have time limitations and require a detailed plan of how the grant funds will be used.

Federal small-business grants

Federal small-business grants are available to individuals and small businesses. The grants have time limitations and require a detailed plan of how the grant funds will be used.

Federal Small Business Grants: The Department of Commerce has grants for small businesses that need capital or help you with your business plan. The Federal small-business grants are available to individuals and small businesses. The grants have time limitations and require a detailed plan of how the grant funds will be used.

Benefits of using these Federal small-business grants:

• Low-interest loans or loans with no interest

• Grants for working capital or to help you with your business plan

• Grants for start-up capital, equipment, or inventory items

Federal Small Business Loans Application

Here is how to apply for federal small-business grants

• Fill out the application and submit it to the appropriate office (see list below)

• Contact your local Small Business Administration office to find out how to apply for a loan.

The Department of Commerce has grants for small businesses that need capital or help you with your business plan. The Federal small-business grants are available to individuals and small businesses. The grants have time limitations and require a detailed plan of how the grant funds will be used. Here is how to apply for federal small-business grants:

• Fill out the application and submit it to the appropriate office (see list below)

• Contact your local Small Business Administration office to find out how to apply for a loan.

State and regional small-business grants

State and regional small-business grants are provided by various sources, including state and regional governments, nonprofit organizations, and private foundations. They can help you get started, expand your business, or become more efficient.

State and regional small-business grants are an essential part of the government’s support system for businesses. Grants can help you get started or expand your business, become more efficient, or start a new business. Grant programs vary in duration and amount, so finding one that will fit your specific needs is essential.

In addition to federal grants, many other forms of financial assistance can fund startup or expansion costs. These include:

When deciding on which type of loan is best for you, it is essential to understand the difference between a line of credit and a loan. A line of credit is an unsecured loan with no collateral attached; you do not need any assets as security for the loan. Typically, this type of financing is used when you have many capital expenses that need to be paid in one lump sum, such as buying new equipment or hiring more employees. An alternative to this method would be to use the cash flow from your business as collateral (this is called “borrowing against cash flow”).

When you use a loan to finance your business, you need to repay the loan with interest plus other charges such as origination fees and points. You can also use a line of credit to pay for capital expenses (such as the purchase of real estate or equipment) if you have the cash available. On the other hand, a loan has collateral (such as real estate or personal property) used as security for repayment. Many different types of loans are available, which vary in their interest rates and repayment schedules.

Corporate small-business grants

A corporate small-business grant is a financial assistance program available to businesses in the form of loans, tax credits, and other financial incentives. State or federal governments typically award these grants. The grant amount is usually based on your company’s level of business activity.

The advantage of these grants is that they can be used to reduce your business’ taxes (such as income taxes) and reduce your business’ total expenses (such as payroll taxes). For example, if you can meet 100 percent of your business expenses with this type of funding, you will be able to reduce your company’s income tax rate from 35 percent down to 0 percent. In addition, if you need additional capital (for example, to purchase new equipment), you can apply for a loan from the state or federal government with this type of financing and still have it paid back with interest plus other charges such as origination fees and points.

The disadvantage of corporate small-business grants is that they are not available to all businesses. The size of your business will determine whether you qualify for these grants.

One of the most common forms of corporate small-business grants is the SBA 504 loan. In this type of financing, you will be required to provide various financial information, such as your company’s net worth and the amount of cash needed to purchase equipment. The SBA will then determine if you are eligible for this type of financing and, if so, how much funding you can receive from the government.

Many other forms and programs may be available through your state or federal government. Still, these two are probably the most common forms used by corporations in need of capital or who wish to reduce their company’s taxes and expenses.

Specialty small-business grants

Specialty small-business grants are available to a variety of businesses. These grants are not available to every business, and, just like corporate small-business grants, the amount of funding will vary depending on your company’s size.

One of the most common forms of specialty small-business grant is the SBA 504 loan. In this type of financing, you will be required to provide various financial information, such as your company’s net worth and the amount of cash needed to purchase equipment. The SBA will then determine if you are eligible for this type of financing and, if so, how much funding you can receive from the government.

Many other forms and programs may be available through your state or federal government. Still, these two are probably the most common forms used by corporations in need of capital or who wish to reduce their company’s taxes and expenses.

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Many different types of small business credit cards are available that specialize in different areas, such as customer service or purchasing (plus exclusive offers and discounts). The best choice depends on the needs of your business. For example, if you typically pay for office supplies in person but stay at hotels online, a hotel-specific travel card might not be right.

Here are the best small business credit cards.

Chase Ink Business Preferred

As the myFICO crew already told you, this is an excellent card to help your business grow with its Ultimate Rewards points. The 80,000-point signup bonus after spending $5,000 in three months easily offsets the $95 annual fee for years to come – especially when you realize it comes with a slew of great benefits like cell phone protection and 24/7 concierge service.

Capital One Spark Cash for Business

With unlimited 2% rewards on all purchases, no spending threshold to unlock the higher earnings rate, and no annual fee, there are plenty of reasons why so many people love their Capital One Spark Cash card. It’s even set up to automatically award your business with a new card as soon as your previous one is paid off – very cool.

American Express SimplyCash Plus Business Credit Card

The Amex SimplyCash Plus is a solid cash-back business credit card that can help you maximize your rewards no matter where you shop. This makes it a good choice for single business owners who prefer simplicity over flexibility. While its 5% cash-back isn’t the absolute highest among small business cards, it’s still competitive enough to make many top 10 lists anyway. With up to 1% foreign transaction fee and 0% intro APR on purchases and balance transfers for 15 months, this is another well-rounded card from American Express.

Chase Ink Cash Business Credit Card

This isn’t one of Chase’s most talked-about cards, but that’s not because it’s bad – just overshadowed. The 50,000 signup bonus after spending $3,000 in the first three months is hard to beat for this type of card. This doesn’t cover more exotic business expenses like cell phones, office supplies, utility bills, or contractor payments, but few cash-back cards do.

Capital One Spark Classic for Business

The Spark Classic is a nice mix of old and new with its classic rewards structure yet modern mobile app platform, which makes it great for small business owners who want simple cash-back earnings without worrying about rotating quarterly categories or keeping up with bonuses thresholds. It also has no foreign transaction fees if you plan to travel internationally.

Capital One Spark Cash Select for Business

As the name implies, this is a slightly less generous version of the standard Spark Cash card, but it’s still plenty rewarding and flexible enough to work in most small businesses. The only major difference between this and other top-tier cash-back business cards is that there’s no signup bonus – which isn’t all bad because you’ll get 2% back on every purchase right from day one instead.

Wells Fargo Cash Wise Visa Credit Card for Small Businesses

The signup bonus on this premium cash-back credit card can’t be beaten: earn $200 after spending just $1,000 in the first three months! On top of that, you also get 1.5% cashback on every purchase. The catch is that it’s only good for the first year, after which the rewards rate drops to 1%.

Capital One Spark Cash Select for Business

This is essentially the same card as the regular Spark Cash with one key difference: no bonus! Suppose you don’t plan on spending much in bonus categories like gas or restaurants, and you’re okay earning a little less cash back overall in exchange for not having to keep track of rotating quarterly category bonuses. In that case, this might be a better option for your business. Plus, there is no annual fee whatsoever.

Capital One Spark Miles Select For Business

If travel redemptions are more your speed, check out this version of the standard Spark Cash card with a twist – you can redeem your miles for travel statement credits at a rate of 1 cent per mile. This means you’re essentially earning 2% on everything, but it’s capped since there is no signup bonus and the usual threshold before earnings bump up to 2% is $1,000.

US Bank Business Edge Cash Rewards Visa Card

If you want simplicity without all the rotating categories to consider each quarter, check out this very straightforward cash-back credit card that earns an unlimited 3% on gas station and office supply store purchases, 2% at restaurants, and 1% everywhere else on up to $50k in spending per year (then 1%). There’s also no annual fee. However, if you don’t mind a little more thinking, there is a better choice.

In conclusion, if you’re looking for simplicity in your business spending, the US Bank Business Edge Cash Rewards credit card is worth considering. The 3% cash-back on gas station and office supply store purchases, 2% at restaurants, and 1% everywhere else (up to $50k per year) make this an attractive option for small businesses looking to maximize their rewards earnings without filling out complicated bonus categories or keeping track of rotating quarterly bonuses. Plus, there’s no annual fee!

However, suppose you don’t mind a little more thinking involved (and feeling like you’re missing out on better deals bypassing up bonus categories). In that case, the Capital One Spark Cash Select for Business is also worth checking out with its 2% cash-back on all purchases with no bonus category restrictions. This is a better choice for someone who wants the simplicity of a flat earnings rate without worrying about taking advantage of rotating categories.

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Capital One

Capital One has been in the banking business for over 40 years and is one of the leading banks for America’s small businesses. They offer a variety of products and services, from credit cards to mortgages, checking accounts, and savings accounts. Capital One also offers many different types of loans, so you can find the perfect loan for your particular business needs.

Digital Federal Credit Union

Digital Federal Credit Union is a great bank for small businesses. They offer various services, such as business loans and checking accounts. And by opening an account with them, you’ll get more than just a standard account; you’ll get access to their free financial education and free credit score monitoring.

Another great thing about Digital Federal Credit Union is that they don’t charge any monthly fees or minimum balance requirements. This makes it easy for small businesses to keep their accounts open without being burdened by high costs.

One downside of Digital Federal Credit Union is that they don’t have a very large branch network, so if you’re looking for a traditional brick-and-mortar location where you can interact with professionals, this may not be the best choice.

However, Digital Federal Credit Union might be right for you if you want to use your computer or mobile device to take care of your banking needs with minimal hassle.

Bank of America

Bank of America is one of the best banks for small businesses in America. They have locations all over the country, making it easy to find one convenient for you. And you can bank online or through their app. You can also schedule a meeting with a banker at any location, so you’re never restricted by your location when conducting business.

Another reason why Bank of America is great for small businesses is that they offer an experienced staff that assists with everything from business loans to international banking and investments. You can also apply for a credit card or other products as needed.

Bank of America offers excellent customer service and competitive rates on loans and investments. If you’re looking for a reliable bank to help your company grow, this should be your first choice!

Wells Fargo

Wells Fargo is one of the best banks for small businesses because it offers a variety of banking, lending, and investing services. Wells Fargo also has great customer service. They strive to provide their customers with an exceptional experience at every step of the way, from opening an account to managing funds or applying for a loan.

TD Bank

TD Bank is the 10th ranked bank in America. It has over 1,000 branches and serves clients in 24 countries. TD Bank provides small business loans, checking accounts, credit cards, mortgages, and investment products. They’re one of the best banks for small businesses because they offer many different types of services tailored to any type of business.

TD Bank has that other banks don’t is the ability to deposit checks using an app on your smartphone. Not only can you deposit checks electronically, but you can also transfer money between your accounts or send someone cash with just a few clicks. This saves time and effort because you won’t have to wait in lines at the branch or go through multiple steps to get your money where it needs to be.

TD Bank offers small businesses other perks like meeting with specialists who can help grow your company, entrepreneurial coaching sessions that teach you how to start a business from the ground up, and free resources about accounting skills and financial literacy. TD Bank even offers discounted rates for entrepreneurs looking for office space in some locations.

Chase

Chase is one of the best banks for small businesses in America because they constantly innovate to make it easier for small businesses to start and grow. They have various products and services available, including business banking, loans, deposits, investments, and more. Chase also offers numerous tools to help your business succeed. For example, you can use their free online budgeting tools or credit card payment processing service.

USAA

USAA focuses on military members and their families, but they also provide excellent services for other small businesses. They have a few branch locations in the U.S., but all of them are located near military bases, which can make it challenging to conduct business if you’re not near one of the bases. They’ve been around for over 75 years and have a proven track record of providing excellent customer service to small businesses.

NBKC

NBKC is a community bank with branches in four states. What makes NBKC an ideal choice for small business owners is that, unlike most banks, they offer customers access to multiple lending services. They also make it easy to apply for loans by offering one-on-one consultations and the ability to apply online.

Citibank

Citibank is one of the best banks for small businesses in America. It offers a wide variety of services, such as overdraft protection, financing, and business checking accounts. Citibank has 11 million customers and more than 3,000 branches in 36 countries and territories.

PNC Bank

PNC Bank is one of the most popular banks for small businesses. They offer a suite of services that power your business and help you grow. PNC’s offerings range from loans to checking accounts to online banking and more. They also have a great mobile app, and their customer service is excellent, making it easy for you to manage your company and finances on the go.

Regions Bank

One of the top banks for small businesses in America is Regions Bank. The company was founded in 1872 and is headquartered in Birmingham, Alabama. It operates over 1700 branches across 16 states. Regions offer various financial services to consumers, including loans, checking accounts, online banking, business savings accounts, auto financing, and more.

U.S. Bank

U.S. Bank offers various services, including loans and consulting, to its small business customers. U.S. Bank also has a 12-month fixed-rate for its checking account and free online banking with no minimum balance requirements.

Conclusion

U.S. Bank is the top-rated bank for small businesses in America. They have a low fee schedule, which is a huge bonus for small company owners.

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