9781601386571 by Unknown

Author:Unknown
Language: eng
Format: epub
Published: 2010-05-14T17:36:32+00:00

132 :: How to Open & Operate a Financially Successful Medical Billing Service cannot make loans. The loan applicant must be creditworthy and eligible for a bank loan.

All businesses considered for financing under the SBA 7(a) Loan Program must meet SBA size standards: be for-profit; be able to demonstrate repayment; and not already have personal or business resources to provide financing.

Important considerations for an SBA loan are:

• Collateral (personal)

• Management capability (the SBA and banks want to ensure whomever they lend money to will handle the funds responsibly and can make the business succeed)

• Owner’s equity and contribution

• Size of loan

• Type of business

• How loan funds will be used

• Availability of funds from other sources

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Chapter 7: Financing Your New Business :: 133

Other business loans

A few other potential business loan sources are listed below. Check these sites and see if any of these sources might be able to provide you with a small business loan at an affordable interest rate. Make sure you read, research, and check the fine print before you sign and agree to anything.

iBankSM, (www.ibank.com/small-business-loans.cfm?pbonav=loanty pes ), enables companies of all sizes to store and organize business data for the purpose of arranging financing. iBank offers multiple loan programs and makes your single application available to multiple lenders for fast, direct funding. It also provides SBA loans. The many loan categories available at iBank include:

• Accounts receivable financing

• Bridge loans (short-term loans of two weeks to three years that are made pending the arrangement of a larger loan or a longer-term one)

• Business credit card

• Hard money loan (last resort loan; asset-based loan financing through which a borrower receives funds that are secured by the value of property; these loans usually have a much higher interest rate than a conventional loan)

• Lines of credit

• A retail/merchant cash advance (business owner receives a cash advance, no more than $150,000, quickly and without the paperwork required by banks; fee is at least 25 percent of the amount advanced)

• An unsecured business loan

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134 :: How to Open & Operate a Financially Successful Medical Billing Service

• A working capital loan (to finance a company’s everyday operations)

Yahoo!™ Small Business Loans Guide will help you learn more about the business loan process, the different types of loans, how to improve your chances for a loan, and much more ( http://smallbusiness.yahoo.com/r-article-a-2014-m-1-sc-10-business_loans_buyers_guide-i ). When considering what type of loan to apply for, it is a good place to start.

Private loans from investors and/or partners

You can put word out that you want to open a medical billing business and are looking for investors. Someone whom you know may know of someone wanting to invest his or her money in a new business venture.

Someone who owns interest in a medical billing service already may be interested in investing in another one like yours. However, your lenders may feel they have the right to guide you in how you manage your business or may expect to be a part of the decision-making process.

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