Small Business Loans Massachusetts - Nav

Small Business Loans Massachusetts - Nav


Small Business Loans Massachusetts - Nav

Posted: 21 Jun 2021 07:37 AM PDT

With Massachusetts small businesses accounting for 1.5 million of the state's employees, it's clear: Massachusetts entrepreneurs are a force to be reckoned with!

But that doesn't mean they don't sometimes need a little assistance. Whether it's to launch a new business or grow an existing one, small business financing can provide the aid they need.

How a Small Business Loan Can Help Your Massachusetts Small Business

Small business owners sometimes struggle unnecessarily during challenging times. They assume they have to bootstrap and are reluctant to take on financial assistance because they don't want to go into debt.

But there is such a thing as smart debt: if you take on a small business loan to invest in your company and then increase your revenues, you will be able to easily pay back the loan. That small amount you pay in interest can help create profit several times higher than what you paid!

Options for Small Business Loans in Massachusetts

There's not just one type of small business loan for Massachusetts companies. With so many diverse options, there's sure to be one that fits your needs.

Bank Loan

If you're looking for capital to grow your established business and have excellent credit, financial institutions like banks, credit unions, and some online lenders provide low-interest term loans with long repayment periods. 

SBA Loan

The U.S. Small Business Administration offers several loan programs with low interest, including the 7(a), SBA 504, SBA Express, and microloan programs. Learn more at SBA.gov.

Line of Credit

If you'd prefer to have access to cash when you need it rather than receiving a lump sum of cash all at once, a business line of credit gets you access to cash that you can borrow from, repay, and borrow again. 

Merchant Cash Advance

If you don't have good credit, you may still qualify for a merchant cash advance, which is an advance on future credit card sales. Your repayments are automatically taken from your credit and debit card transactions daily or weekly, plus an origination fee.

Credit Card

Business credit cards are useful when you need to make business purchases like office supplies or gas for the company truck. You can add authorized users to your cards if you have employees who need to make purchases on behalf of the company.

Short-Term Loan

Another option if you have poor credit or your business is new and hasn't yet established its credit history is a short-term loan. These have high interest rates and short repayment periods, but they can get you the cash you need in a pinch.

How to Qualify for a Small Business Loan in Massachusetts

Lenders may vary slightly in what they require for loan applicants, but most will look at your personal and business credit scores to determine eligibility.

The higher your scores, the more good offers you'll qualify for. If you don't have business credit established, learn how to establish small business credit to qualify for even more.

Other lenders, such as those offering short-term loans or merchant cash advances, will look at criteria other than credit, like your annual revenues.

How to Apply for a Small Business Loan in Massachusetts

If you apply for your financing with an online lender, chances are, the loan application will be quick and to the point. If you apply for a bank or SBA loan, you may have to go into a branch to apply, and you may need to provide documents like your profit and loss statement as well as tax returns.

In either situation, you will be asked questions about your business, such as its name, industry, time in business, and annual revenues. You'll also be asked personal details, like your address and Social Security number. 

After submitting your loan application and being approved for a loan, you will be sent a loan agreement with loan terms, including the interest rate, maximum loan amount, and repayment period. After you sign the loan agreement, the funds will be deposited into your bank account.

Small Business Resources to Help You Get Financing

If you apply for a loan that requires a business plan and don't have one, there are several great small business resources in Massachusetts to assist.

The Small Business Development Center Network has locations in Boston, Amherst, Salem, and many other cities, and offers several technical assistance programs as well as workshops and government procurement assistance.

The Women's Business League is another great resource if you're a female entrepreneur. It offers business-related events and courses.

Uses for a Small Business Loan in Massachusetts

So how can you as a Massachusetts business owner use small business loans? There are so many ways!

If your business, like many, sees rises and falls throughout the year, having access to a line of credit could ensure you have working capital to get through slow periods. 

If you're in the growth phase, you might benefit from a little cash to help you open a new location, hire employees, or place larger orders of inventory.

A small business loan provides you the opportunity to help your existing business thrive.

This article was originally written on June 21, 2021.

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The Future Of Small Business Lending: Fintech 50 2021 - Forbes

Posted: 08 Jun 2021 12:00 AM PDT

Despite a trying year for small business, some fintech companies thrived by offering credit to buzzy startups and mom-and-pops alike, while increasingly making their platforms a one-stop shop for expense management.

Take Ramp, for example, which debuts on Forbes' Fintech 50 after scoring a $1.6 billion valuation within 14 months of launching. Its zero-fee corporate credit card comes equipped with an expense-management platform that uses algorithms to analyze transactions and identify savings opportunities for businesses—an opportune feature amid a global pandemic. "When March, April and May came around, this suddenly started to mean the difference between making it through the next month and helping keep more and more folks on payroll," says CEO Eric Glyman. 

Meanwhile, list-staple Brex, which is now making a play in banking, landed a $425 million funding round in April, catapulting its valuation to $7.4 billion from just $3 billion a year prior. During the pandemic year, Brex headed up efforts to help clients apply for the government's Paycheck Protection Program of forgivable loans for small business.

Another corporate card firm that almost made the list: Utah-based Divvy, which has pulled in more than 13,000 clients (and even wooed a buyer) in its mission to kill expense reports. This month, Bill.com acquired the three-year-old startup, which was valued at $1.6 billion in January, for $2.5 billion—making it ineligible for the Fintech 50, which features only still private companies.

The crop of corporate card startups has fared far better than more traditional fintech lenders, many of which struggled during the pandemic. Kabbage, for example, drops off the Fintech 50 after being acquired by American Express in August for an undisclosed amount. The company paused its lending operation last March, and AmEx ultimately opted against scooping up its pre-existing loan portfolio.

Here are this year's most innovative business-to-business lending companies in fintech:

Brex

Headquarters: San Francisco 

Fast-growing suite of offerings includes its original corporate credit card designed for startups (with rewards tilted toward travel expenses); a corporate cash management account; and a new online dashboard that combines those with expense tracking software. Has applied for its own FDIC-insured, Utah-chartered industrial bank. 

Funding: $857 million from Y Combinator Continuity, DST Global, Kleiner Perkins and others

Latest valuation: $7.4 billion

Bona fides: An estimated 20,000 customers, including Airbnb and Carta 

Cofounders: Co-CEOs Henrique Dubugras, 25, and Pedro Franceschi, 24, started Brex after dropping out of Stanford

Ramp

Headquarters: New York City

Corporate credit card offering unlimited 1.5% cash back on all purchases and a free expense-management platform that uses machine learning to flag wasteful spending, helping the average customer save about $100,000 each year. Customers can tack on additional features, including off-card expense reimbursement.

Funding: $170 million from D1 Capital, Coatue Management, Stripe and others

Latest valuation: $1.6 billion

Bona fides: Since launch a year ago, more than 1,000 clients—including Clubhouse, Marqeta and Planned Parenthood—have used Ramp to process nearly $1 billion in transactions

Cofounders: CEO Eric Glyman, 31, CTO Karim Atiyeh, 31, and chief product officer Gene Lee, 30, started Ramp after selling an online savings startup to Capital One

FICO Partners with Leading National Small Business Organizations to Empower Entrepreneurs with Credit Education - PRNewswire

Posted: 21 Jun 2021 05:00 AM PDT

Since 2018, FICO has invited consumers to broaden their credit education through its successful, free-to-attend Score A Better Future program. This event series has provided thousands of attendees with the opportunity to learn about the key ingredients that make up the FICO® Score, how credit scores are used in credit decisions by lenders, as well as the myths and facts about FICO® Scores, which are used by 90% of top U.S. lenders.

Continuing FICO's unwavering commitment to financial education and empowerment, FICO, alongside its national partners, is building on the success of the nationwide event series by inviting small business owners to attend Score A Better Future | Small Business on June 24. The session will focus on demystifying FICO® Scores and empowering attendees with personal finance knowledge to reach their entrepreneurial goals, such as how to receive a low-interest loan, and steps to take during a financial downturn.

"Small Business Roundtable is delighted to partner with FICO on the Score a Better Future educational event for small businesses, and we are equally excited to share this honor with SBR Members, the National Association of Women Business Owners and the United States Hispanic Chamber of Commerce. As our nation continues to recover, capital access remains a top issue for American entrepreneurs. Good credit is paramount to ensure business owners can succeed and grow their businesses," said John Stanford, co-executive director at Small Business Roundtable.

Recognizing that 75% of small business owners depend on personal capital in order to fund their businesses (US Census), FICO is committed to extending its financial education resources to the individuals pursuing small business ownership who are at the backbone of the US economy.  Over 30 million small businesses existed in 2020 and employ more than 60.5 million workers, accounting for 47% of the United States workforce (SBA).

"Financial literacy is incredibly important for our community of women business owners as they work through every stage of their business, and understanding their FICO Score and how to leverage it is a large part of that," said Jen Earle, CEO of the National Association of Women Business Owners. "NAWBO is proud to partner with FICO to bring credit education to our nation's entrepreneurs to help propel their success."

"FICO is providing the opportunity for small business owners to acquire the necessary resources to uplevel their personal finance knowledge. Our organization represents over 4.7 million Hispanic owned businesses and we are thrilled to have FICO share key credit information and resources with our vibrant community," said C. LeRoy Cavazos-Reyna, vice president of Government and International Affairs, United States Hispanic Chamber of Commerce.  

Other national partners supporting the event include:

  • Consumer Action
  • Operation Hope
  • Diversified Resource Network
  • National Urban League
  • National Consumers League
  • National Association of Real Estate Brokers

To register for the event or get more information about the Score A Better Future program, visit http://www.scoreabetterfuture.com/

Who:  FICO, SBR, NAWBO and USHCC

What: Score A Better Future is a free community education and financial empowerment program by FICO in partnership with national nonprofits, consumer advocates, credit educators and community leaders

When: Thursday, June 24, 2021 from 2:00 pm EDT

Where: http://www.scoreabetterfuture.com/ (Virtual link to webinar provided upon registration)

About FICO 
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956 and based in Silicon Valley, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 100 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time. Learn more at http://www.fico.com.

Join the conversation at https://twitter.com/fico, and https://www.instagram.com/ficoscoreabetterfuture/.

SOURCE FICO

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