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5 Ways to Get Creative to Reduce Holiday Stress

The winter season is a time for people to visit with friends and family and enjoy winter festivities. Though this time of year is filled with joy and excitement, it can also be overwhelming and stressful. Holiday anxieties are common and may impact…

When Transferring Your Child to Another School is Already Necessary

To transfer or not to transfer?

Oftentimes, your kid will show signs of tardiness, desire to quit school or stress that can burn them out. But not all scenarios of wear down can be a reason to suddenly look for another school. Most of the time, these school-related stress…



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How Moms can Increase Chances to Secure a Business Loan?

As a new entrepreneur who doesn’t have a great credit score, you must have questioned: “can I land on a business loan?” When it comes for moms to applying for a personal loan or business loan, we all have our doubts. Experts say that the key is to show the lender that lending the money to you (whether it’s for CFD stocks or any other business) is safe. Once you are able to do that, you might get a chance to secure a loan on your own terms.

But that’s not enough. You need a plan to increase your chances of securing a loan. Try these 7 tips maybe…

#1: Polish Your Business Plan

You have to show your business plan to the lenders as a part of applying for the loan. What should your plan include? Details of your business, of course, how you want to spend the capital and what growth do you expect. This document will help convince the lenders that you are creditworthy.

Make sure your business plan is compelling because financial institutions don’t like taking risks. It won’t be a bad idea to do some research on how to write an effective business plan.

#2: Prepare the Necessary Documents

The next thing you need to do is prepare all the necessary documents a lender might request. These include financial statements, tax returns, and any partnership agreement. Organize all these documents into a report. Make sure you are familiar with all the information that’s there. This will help you answer all questions confidently and quickly. Plus, the lenders will know you have done your homework.

#3: Choose a Realistic Borrowing Amount

Face it, your application to get a business loan will only approve if you are realistic about the cash your business needs. Do not ask for too much. At the same time, don’t ask for too little either.

And another thing; don’t guess. You need to crunch the numbers. If you are getting a loan to buy new business equipment, make sure you know what exactly it will cost. Add the tax, shipping cost and any other cost you think will be necessary.

Lenders like working with borrowers who are responsible and realistic. Therefore, it would be great to know how much money you will actually need to meet your business needs.

#4: Build a Relationship with Your Lenders

When a lender lends, he is lending the money to you, not your business. So, it would be better to start cultivating a relationship with possible lenders before even applying for the loan. Let's say you want to secure loans for "Car Title Loans Definition Los Angeles" you got to develop the relationship for a credible loan. That way, you are more likely to have your application approved.

Value and nurture this relationship because it is these lenders who can help you find a loan when you are in dire need.

#5: Use Personal Collateral 

Lenders feel more secure when the debt is backed by a financial asset or any other personal collateral. If your business goes bankrupt, the lender will pet a lien on your financial asset or property. Lenders also believe that this way, the borrower will be careful with their money. If they slack off with the payments, chances are they will lose the personal asset. Go for this option only when you have tried and tested every other method of getting your business loan approved.

#6: Figure out What Type of Loan Do You Need

Not all loans are equal. Hence, make sure you are applying for the right one to fund your business. These are some common business loans you will come across:

  • Short-term loan: This is the type of loan that you pay in regular intervals over a short span of time. There is no interest rather a fixed fee that you must pay with the repayment amount.
  • Line of credit: The lender grants you a certain amount of money (as per your line of credit) which you can withdraw whenever you need.
  • Invoice factoring: This isn’t really a loan. You actually sell unpaid invoices at a discount to receive cash immediately.
  • Merchant cash advance: This isn’t a loan either. It’s the type of financing in which you sell your future business receivables to receive immediate cash.
  • Installment loan: It’s the type of loan you have to pay back in installments along with an interest.

#7: Improve Your Credit Score

Make sure your credit score is desirable. It’s recommended to check your credit report for any mistakes and changes. You must know where you stand before submitting the loan application.

It’s better to have a credit score above 700 if you want to get a loan with a lower interest rate. If your score is below 550, you will have to pay a higher interest rate. If necessary, give yourself a window between fixing your credit and applying for the business loan.


Once your loan application is approved, stick to a schedule and keep on making the monthly payments. Keep a cash reserve if you can so that you don’t fall behind the payments. Those who do live trading must know this very well that funds can become unexpectedly low at times. When that happens, your emergency cash reserve will come to the rescue.  

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