How Does a Business Loan Affect Personal Credit?
Key Takeaways Business Loans and Personal Credit: Not every business loan automatically affects your personal credit. The level of impact often hinges on whether you’ve signed a personal guarantee or if the lender reports activity to consumer credit bureaus. Loan Structure Matters: A secured loan backed by collateral (such as real estate) can lower the lender’s risk but may still involve personal liability in some cases. It’s crucial to read loan terms carefully to see if your personal credit is in play. Hard Inquiries and Guarantees: A hard credit check can temporarily lower your personal score. But bigger issues -…
-
Staff Writer
- 2025-01-20
How Do Business Loans Work?
Key Takeaways Business loans come in different forms. Lines of credit, term loans, merchant cash advances, and invoice financing each have unique features and repayment structures. Understanding how each option works helps you choose the best fit for your goals. Eligibility matters. Lenders look at credit score, revenue, time in operation, and collateral. If you prepare your financials and business plan in advance, you’ll stand a stronger chance of qualifying. You can use loans for many purposes. Whether you’re replacing outdated equipment, expanding to a second location, or just covering a seasonal cash-flow gap, a business loan can help with…
-
Staff Writer
- 2025-01-18
Are Business Loans Tax Deductible?
Key takeaways: Interest vs. Principal: Only the interest portion of most business loans is typically tax deductible. The principal - the amount you actually borrowed—is not. Exclusive Business Use: To claim a deduction, you must use the borrowed funds purely for business needs. Mixing in personal spending can reduce or eliminate your eligibility. Loan Types Vary: Whether you go with a standard term loan, line of credit, SBA loan, merchant cash advance, or equipment financing, the basic rule stands: interest is usually deductible if the money is spent on your business. Conditions Apply: If your business is considered passive or…
-
Staff Writer
- 2025-01-16
Average Business Loan Interest Rates in 2025
Key takeaways Interest rates shape your bottom line. Even a small increase can lead to significant added costs, which is why monitoring shifts in lending rates is so crucial for any business. Various factors influence rates, including economic trends, Federal Reserve policies, and each borrower’s credit profile. Lenders gauge risk before deciding on a rate - strong financials mean you’ll likely pay less. Different loan types come with distinct pros and cons. From traditional term loans to lines of credit and SBA-backed financing, each approach has its own rate range and repayment rules. Staying mindful of fees matters. Beyond just…
-
Staff Writer
- 2025-01-15
Guide to Small Business Loan Requirements
Key takeaways Preparation matters: Gather the right documents (tax returns, bank statements, licenses) so lenders see you’re organized and serious. Credit still counts: Your personal and business credit histories give lenders a window into how responsibly you handle debt. Business plan is gold: A clear, compelling plan helps explain where the loan money will go - and how you’ll repay it. Cash flow and longevity: Consistent revenue plus a bit of operating history can boost your odds of approval. Loan types vary: From short-term capital for quick needs to long-term funding, match the loan structure to your goals. Help is…
-
Staff Writer
- 2025-01-14
How to Get a Business Loan
Key takeaways Preparation Matters: Before you apply, know how much money you actually need and exactly what you plan to do with it. Lender Requirements Vary: Different lenders look for different things - like time in business, credit scores, and revenue stability. Multiple Loan Types Exist: From SBA loans to lines of credit, there’s a range of financing options. Pick what aligns with your business goals and cash flow. Eboost Partners Is Ready to Help: If you’re a U.S.-based business that’s been running for at least a year and making $5,000+ per month in sales, you might qualify. Rejection Isn’t…
-
Staff Writer
- 2025-01-12
What is a Small Business Loan?
Key takeaways Tax Implications: The principal of a business loan typically isn’t taxed; however, the interest may be deductible - just confirm the details with a tax professional. Personal Credit Concerns: Some loans require a personal guarantee, which might affect your personal credit score; others limit liability to the business itself. Secured vs. Unsecured Loans: Offering collateral (property, equipment) can reduce interest rates but adds risk to your assets. Unsecured loans don’t need collateral, yet often carry higher rates. Read the Fine Print: Loan agreements can contain hidden fees, prepayment penalties, or tricky clauses. Always ask questions if something isn’t…
-
Staff Writer
- 2025-01-10
Top 8 Startup Business Loans to Consider in 2024: A Comprehensive Guide
Funding is important for all entrepreneurs who want to start or develop a startup. Business loans fall into one or more categories: traditional business loans or flexible loans. Obtaining sufficient funds is a major issue for many startup businesses, but loans can provide the capital necessary to turn your visions into realities. For example, 29% of small businesses fail since they run out of capital. In this guide, you will find the best startup business loans in 2024, helping you choose from the many available options to find the right fit for your small business. Best Startup Business Loans Starting…
-
Staff Writer
- 2024-12-24
Securing an Unsecured Business Line of Credit: Tips for New Entrepreneurs
Starting a new business brings a mix of excitement and worry, particularly when you’re trying to get funding. In fact, our research shows that about 60% of small businesses struggle with cash flow at some point during their years of operating. Many entrepreneurs like yourself consider an unsecured business line of credit. This option can give you the flexibility you need, allowing you to access funds without the stress of collateral. Let’s explore what this means, the pros and cons, and how you can apply for one successfully. What Is an Unsecured Business Line of Credit? Simply put, an unsecured…
-
Staff Writer
- 2024-12-24
Credit Union Business Accounts: Are They Right for Your Small Business?
Managing your business finances can feel overwhelming when you're searching for the right solutions to help your small business grow. If you're considering opening a business account, credit union business accounts come with perks like lower fees, personalized service, and a focus on supporting local businesses. But are they the right fit for your financial goals? In this article, we will help you understand how they work and what they offer. This way, you can decide if they align with your needs as a small business owner. Best Credit Unions for Business Accounts When selecting a credit union for your…
-
Staff Writer
- 2024-12-24
How to Get a Business Line of Credit for a New Business: A Complete Guide
Starting a new business is an exciting venture. However, it comes with its fair share of financial challenges. Having access to flexible funding can make all the difference in covering unexpected costs, seizing growth opportunities, or simply keeping your cash flow steady. A business line of credit for new business owners offers a versatile financing option. It allows you to borrow funds as needed without the rigid structure of traditional business loans. This comprehensive guide provides detailed insights into how a business line of credit works, the benefits it offers for new businesses, and practical steps to secure one. What…
-
Staff Writer
- 2024-12-24
How to Secure Restaurant Loans | A Guide to Financing Your Food Business
Opening a restaurant or expanding your food business is an exciting journey, but it takes more than great recipes and a passion for serving customers. Behind every thriving restaurant is careful financial planning and smart funding decisions. Whether you're just starting out or looking to grow, restaurant loans can help cover essential expenses like managing costs, upgrading equipment, or handling unexpected challenges. In this guide, we’ll walk you through everything you need to know about securing restaurant loans and selecting financing options that help bring your culinary dreams to life. What Is Restaurant Financing? Restaurant financing loans encompass a range…
-
Staff Writer
- 2024-12-17