Quick Answer: Most lenders ask for 2 to 3 years of business and personal tax returns, 3 to 12 months of business bank statements, a profit and loss statement, a balance sheet, a debt schedule, your business registration documents, an EIN and a government-issued ID. Startups usually also need a business plan with financial projections. […]
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Quick Answer: Bank business loans usually cost less but take longer and need stronger credit and paperwork. Fintech business loans are faster and easier to qualify for, but they often cost more. Choose a bank when you can wait and qualify. Choose fintech when speed matters and the cost still makes sense. You need money […]
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A business line of credit is a flexible loan with a set limit that your business can draw from, repay and use again. Many owners assume it only affects their business credit. In reality, a business line of credit can affect your personal credit score at 3 points: when you apply, if you sign a […]
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Quick Answer: Fixed capital is money tied up in long-term assets like buildings, equipment and vehicles. Working capital is money used to run the business day to day, such as inventory, payroll and bills. Fixed capital helps a business grow. Working capital keeps it running. Every business needs two kinds of money. One kind buys […]
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Invoice factoring vs line of credit is a choice between two common types of working capital financing. With invoice factoring, you sell your unpaid invoices to a company for quick cash. With a business line of credit, you borrow from a set credit limit, repay it and borrow again. This guide is for small business […]
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Quick Answer: The SBA Acquisition Loan Rules in the SBA’s new lending rulebook, SOP 50 10 8.1, take effect October 1, 2026, and make buying a business with a 7(a) loan harder to qualify for. First-time buyers must now show 1.25x debt service coverage instead of 1.15x, projections can’t be used to meet that bar, […]
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If you’re applying for an SBA 7(a) loan in 2026, one number matters more than it used to: $350,000. That’s the new ceiling for what the SBA classifies as a “7(a) Small Loan” – down from $500,000 under the prior rules. The change came through the SBA’s SOP 50 10 8 update and is now […]
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A current ratio is a liquidity metric that measures a business’s ability to pay its short-term obligations using its short-term assets, calculated by dividing current assets by current liabilities. Lenders use it as a fast, standardized read on whether a business can cover the bills coming due in the next 12 months. This guide is […]
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The debt service coverage ratio, or DSCR, is one of the first numbers a lender checks. Lenders look at it before approving a business loan. It measures whether a business generates enough cash flow to cover its debt payments. Lenders use it to decide how much risk they’re taking on. It also shapes how much […]
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