Peer-To-Peer Lending

Recently I had a good friend call me for some financial advice about credit card debt.  I’m not going to try and claim that I’m a certified financial planner, but I’m not afraid to offer my financial opinion.  My friend has run into a situation that has become very common place among many Americans, mounting credit card bills.  He was specifically wondering if there was an easy way to lower his interest rate and begin paying down the balance after his bank didn’t have any solutions.  I suggested taking a friendly approach to financing and brought up peer-to-peer lending.

Is the Economy Right to Start a Small Business?

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If you are thinking about starting a small business now is as good of time as any even with the current state of the {financial crisis|economy}. Now why is this you might be asking yourself? If money is so bad for everyone what is going to make the want to come out and buy from you? Read on to see that the urge to start your own small business is a very savvy thing to do even in hard economical times.

Any successful small business venture is going to need a very quality and well written business plan. If you do not have a solid Small Business Plan in place they you are setting yourself and your business up for failure. When you are starting your own business you not only want to find something that you love you want to be able to fill a niche product that is going to help make your business stand out from the crowd.

SBA Financing Tips

Small Business Administration

As the credit markets continue to tighten, an old reliable source of financing for small businesses, the U.S. Small Business Administration (SBA) and its loan programs, is once again being looked at as a critical component in providing liquidity in the market.  It is now imperative small business owners understand what is required of them to tap into this source of financing. The SBA lending market has changed dramatically over the past 120-180 days and the effect on lenders in this market has been dramatic as well.  Several top SBA lenders have completely left the market with most others pulling back significantly.  Losses and defaults are up and can no longer be offset with high interest rates (prime rate is at an historical low and capital costs are relatively high) or premiums earned on the secondary market, as there is no secondary market for SBA loans currently.  This means SBA lenders are now approaching loans in a much more conservative manner and assessing risk instead of simply booking sufficient volume to stay ahead of delinquencies and defaults.  This is being done on all loan applications, not just yours.   There is going to be much more due diligence on the part of the lender and more hurdles for the borrower to jump.  The days of 100% financing and fixed rate loans may be a thing of the past, but reasonable financing is still available to those borrowers willing to work a little harder and smarter.