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If you can’t meet everyday expenses such as rent, payroll and debt payments, you won’t be able to capitalize on opportunities to grow your business. That’s where working capital loans can help. Ideally, you’d establish a line of credit with a bank before experiencing a cash-flow crunch, because banks offer the lowest financing rates. But several online products are available that give you an additional option. They can help you get cash quickly, manage inventory costs or take advantage of a business opportunity while preserving working capital for your regular financial obligations. There are many options, so look for a business loan that best fits your specific situation.
The first step is to register your nonprofit in the state where you want to incorporate. An organization called the National Association of State Charity Officials has information on filing requirements for charitable organizations in different states. The U.S. Small Business Administration also has information on the state agencies where you can file papers of incorporation.
The first step is to improve your personal and business credit scores. Your personal credit score ranges from 300 to 850 (the higher, the better), and evaluates your ability to repay debts. The score is typically weighed more heavily by small-business lenders if your business is new and lacks credit history. It’s based mainly on three factors: your payment history (35% of your score), the amounts owed on credit cards and other debt (30%) and how long you’ve had credit (15%).
SBA loans come with flexible terms and low rates, which makes the federal program one of the best ways to finance your small business. There’s one problem: Getting an SBA loan can be an exercise in frustration.