by dorraadmin | Sep 27, 2022 | Blog- Financial
Small business owners soon realize that additional funding strengthens cash flow, provides a cushion for emergencies, and spurs growth. If you are considering applying for a loan, it is imperative that you should understand how to go about it. Here are the most important business loan requirements.
Focus on Your Needs
There is a considerable array of loan options for small businesses, and they vary greatly in their interest rates and requirement details. Your first step is to determine which loan type suits the needs of your company. Making this decision will save you time in document preparation.
Create a Business Plan
Traditional lenders will take your application more seriously if you have a comprehensive business plan. This plan should include an executive summary as well as a description of your company and its organization, management, products or services, marketing, financial projections, and need for funding.
Prepare a Personal Resume
As a business owner, your resume highlights your business and management experience. Lenders want to be assured that you are qualified to run your company. Be sure that this resume is properly edited and kept up to date.
Be Aware of Your Business and Personal Credit Ratings
Traditional lenders require a high personal credit score and business credit rating. If your credit scores are lower than they should be, do what you can to improve them. However, even if your credit ratings are imperfect, some lenders will consider personal guarantees, collateral, and other factors.
Have Profit and Loss Statements Ready
Among the business loan requirements that most lenders insist upon are company profit and loss statements. These are indications of the financial health of your business that demonstrate to lenders that you are reliable, professional, and ethical.
For more advice on preparing the business loan requirements, you will need to fund your company, get in touch with Dorra Financial Group.
by dorraadmin | Sep 20, 2022 | Blog- Financial
According to the Global Entrepreneurship Monitor, there are 31 million entrepreneurs in the U.S. All of them want to succeed and build wealth, right? Indeed, independent business ownership and building personal wealth are important parts of what we call “The American Dream.” Yet business success and wealth are not easily obtained.
Entrepreneurs, Use These Three Principles to Grow Your Wealth
1. Get expert advice. Growing a business and achieving business success is not a one-man or one-woman job. Neither is growing wealth. So, it is valuable to get business advice to provide additional perspectives and perhaps less-biased operating and management insights that will have a positive impact on the business. Similarly, it is wise to get financial and investing advice to guide decision-making when it comes to your financial decisions.
2. Make sure to pay yourself first. The early days of entrepreneurship may require pouring almost everything you have including time, energy, and money into your business. But that can’t last forever because it is critical to maintaining your health and well-being along the path to success. Decide what you need to live off of and protect those funds so that you don’t make poor decisions based on a survival mentality.
3. Plan an exit strategy. That will include asking yourself where you want to be in 5, 10, or 20 years, where you want the business to be at those points in time, where you may eventually want to pass the company, what your future role will be in the company, and what type of leadership team you will need now and in the future to achieve success.
How Will Business Success Be Achieved?
- Set growth goals.
- Develop a business plan to keep you on track.
- Benchmark your progress against competitors.
- Get the financing you need to support and propel growth.
Seek Expert Financing Assistance
Contact Dorra Financial Group, based in Atlanta, GA, your trusted partner in commercial lending. We offer a wide array of business loans to meet the needs of new and established businesses.
by dorraadmin | Sep 13, 2022 | Blog- Financial
We’ll try to keep this article short, while still informing you of the reasons why you need a financial advisor when considering a small business loan. If you don’t have one, then be prepared with the following business loan-related questions for the lender. This will get you the best deal you can manage – depending on the particulars of your present and projected business situation.
I. What kind of loan or credit suits my particular business model?
There are a variety of small business loans and credits available to businesses of all sizes. When considering a small business loan, it is important to consider the amount you need, the purpose of the loan, and your credit score. Some small business loans are unsecured, while others are secured by the business assets. The best small business loan for your business will depend on your individual circumstances – and a good advisor will be able to go through the benefits and detriments of each suggested loan type.
II. What type of documentation do I need for the loans you offer?
To apply for a small business loan, you will need to provide some documentation about your business. This may include financial statements, a business plan, tax statements, and information about the owners of the business. It is important to have all of this information ready when you apply for a small business loan, as it will help the lender assess your eligibility and loan terms.
III. Are there ways to lower my interest rates and other loan payments?
There are a few things that small business owners can do to lower the interest rate on their small business loan. First, be sure to compare interest rates from different lenders before you choose a loan. Also, make sure you are always up-to-date on your credit score and credit history, as this will help you get a lower interest rate. You can also work to build up your business credit score, which will make you a more attractive borrower. Finally, be sure to keep up with your monthly payments and stay in good standing with your lender – this will also help you get a lower interest rate.
IV. How does your company handle loan modifications and renewals?
When you take out a small business loan, you are agreeing to repay the debt over a predetermined period of time. If you encounter difficulties making your monthly payments, you may be able to negotiate a loan modification with your lender. This will involve renegotiating the terms of your loan, such as the interest rate, the amount of the monthly payments, or the length of the loan. It is important to remember that a business loan modification is not a permanent solution – it is simply a way to help you get back on track with your monthly payments.
V. What happens in the event I have trouble making monthly payments?
If you are unable to make your monthly payments, your lender may decide to renew your small business loan. This means that they will agree to extend the term of your loan, and give you more time to pay it off. It is important to note that renewing your small business loan will likely involve an increase in the interest rate, so be sure to compare rates from different lenders before you decide to renew.
Both the loan modification and renewal processes can be helpful ways for small business owners to get back on track with their monthly payments. Be sure to talk to your lender if you are having difficulty making your payments, and they will be able to help you find a solution that works for you. Before you make the call, don’t hesitate to reach out to us at Dorra Financial Group for more information on the process.
by dorraadmin | Sep 6, 2022 | Blog- Financial
Private equity financing is a means of raising capital for a business. It involves pooling money from private investors, who are typically high-net-worth individuals or institutional investors, to buy a controlling stake in a company. Such firms typically seek out businesses that are undervalued and have the potential for growth. They then work with the management team of the company to help it achieve its objectives.
Private equity financing can provide a number of benefits to businesses. It can help them to grow and expand, as well as provide them with the capital they need to invest in new products or services. Private equity can also help businesses to restructure and improve their operations. In addition, private equity firms often have extensive experience and networks that businesses can tap into.
If you’re thinking about whether private equity financing is right for your business, there are a few things you should keep in mind. First, private equity firms will typically want a majority stake in the company. This means that you will give up some control over the business. Second, these firms usually have strict requirements and timelines for their investments. This means that you will need to be prepared to make some changes to the way you operate. Finally, private equity financing is a long-term commitment. You will likely need to keep the private equity firm invested in your business for several years.
Private equity financing can be a great option for businesses that are looking for growth capital. However, it’s important to understand the commitments involved before making a decision.
Understanding the Importance of Entrepreneurship in Private Equity Financing
Entrepreneurs and private equity partners are both integral to the success of private equity financing. This type of financing is a way for businesses to secure the money they need to expand and grow, but it’s not always easy to get approved for a loan. Private equity firms are a great option for businesses that can’t get a loan from a bank, or that need more money than a bank is willing to lend.
Private equity firms usually invest in businesses that are already doing well and have a proven track record. They’re not interested in start-ups or businesses with no history. So it’s important for entrepreneurs seeking private equity financing to have a solid business plan and be able to show that their business is viable and has potential for growth. Private equity partners are essential in helping businesses secure the funding they need to succeed. They have the knowledge and experience to assess whether or not a business is a good investment, and they can help entrepreneurs navigate the complex process of securing private equity financing.
Don’t hesitate to visit the experts at Dorra Financial Group if you’re looking for more information on this and a variety of financial topics.
by dorraadmin | Aug 23, 2022 | Blog- Financial
Many businesses utilize loans when a cash-flow shortage comes up. If you are new to running a small business,
you may have questions about obtaining a loan. The following frequently asked questions may be useful to you.
Credit Concerns
Does personal or business creditworthiness factor into obtaining a loan?
Absolutely! Banks will want to know your credit rating. Additionally, if your business has a credit history, they will want to know about that as well.
Working with Banks
Is it difficult to obtain a loan from banks?
Some banks are more difficult to work with than others. In all cases, they tend to scrutinize your finances in some detail. YOu may be denied a loan from a bank. Even if you obtain one, it can take a long time for a bank to make a decision.
Loan Mechanics
How do loans actually work?
Loans involve the lending of money with must be paid back with interest. Basically, there are two factors about any loan that you will want to know: the term and the interest rate charged. The loan term can be as short as a few months to as long as several decades; the loan must be paid back in full by the end of the term. The interest rate associated with the loan is the cost of financing that you pay the bank when you obtain the loan.
Alternative Financing
Are there other ways to finance a small business?
Yes. A number of other sources for business loans and alternative financing are available to you. Capital lending groups, in particular, offer a variety of alternative financing solutions and can deliver funding more quickly than most banks.
Connect with Dorra Financial Group
Here at Dorra Financial Group, we are sure that we have a commercial finance solution or other small business loan product that will be perfect for your business needs. Give us a call today.
by dorraadmin | Aug 16, 2022 | Blog- Financial
The SBA is a central government agency offering small businesssses contracting, counseling, and capital. This agency does not lend money directly but instead outlines guidelines for loans structured by its partners, like credit unions, banks, micro-lending institutions, and community development organizations. The agency guarantees that part of these loans given out by these institutions will be paid, removing some risks for creditors. Through an SBA loan, the agency restricts the number of funds someone can borrow and ascertains specific interest rates lower than those offered by typical banks.
How Do These Loans Work?
SBA loans and credit lines are the same as the typical business loans granted by banks. The process begins when company owners apply. When approved, the borrower secures the capital and then pays it back after some time with interest.
How Do You Qualify For an SBA Loan?
To qualify for this loan, one must provide comprehensive financial details about your business to the SBA and the bank. This enables the agency to evaluate their eligibility and determine whether the loan favors the business and the agency.
What Is The Cost Of These Loans?
Like normal loans, these loans also have an interest cost. Additionally, borrowers pay various loan fees like credit checks, applications, and appraisal fees if the loan has collateral assets like real estate.
Apart from the typical fees, the loans also have a guarantee fee paid by borrowers in exchange for the agency guaranteeing part of the loan. However, this fee is based on the portion of the loan secured by the agency.
Advantages OF SBA Loans
A business owner can leap many benefits linked with SBA-backed loans. However, a person’s situation is usually unique to their business. Benefits of an SBA loan include:
- Reduced interest rates
- It is easy to qualify since the credit needed is lower
- Flexible payment options
- Longer repayment periods
- More opportunities since it is easier to get an SBA loan based on the state of the world and the economy
Are you looking for a reputable institution to grant you an SBA loan? Reach out to us today at Dorra Financial Group for more information.
