by Kenbry Capital | Jul 7, 2023 | Blog
Running a business can be stressful, especially when it comes to managing the financials. Cash flow often ebbs and flows, making it difficult to know if you’ll have enough money on-hand for unexpected expenses or opportunities. This is where a business line of credit (LOC) can help alleviate some of that stress by providing access to additional funds when needed.
How a Business Line of Credit Works
A business line of credit is essentially a loan that provides businesses access to funds that can be used as needed. The lender will typically grant the borrower a set amount of money and the borrower can draw from this pre-approved total when they need it, up to an agreed-upon limit. This makes it easy to cover unexpected expenses or take advantage of opportunities without having to worry about where the funds will come from.
The Benefits of Having a Line of Credit
Having a line of credit can provide businesses with several benefits. For starters, it’s a great way to manage cash flow since you don’t need to borrow large amounts all at once. You can draw as needed and pay back what you’ve used. It also provides peace of mind knowing that you have a buffer in case of unexpected costs, giving you greater flexibility to pursue other ventures as well.
Considerations
However, there are some potential drawbacks to consider before taking out a line of credit. The most obvious is the cost associated with using it. While interest rates on business lines of credit tend to be lower than other types of financing options, they are still expensive and the longer you take to pay back the loan, the more interest accumulates. Another potential con is that if you don’t use all of the funds available or take too long to repay it, your line of credit may be canceled.
In conclusion, a business line of credit can be an invaluable tool to have access to additional funds when needed. Contact Kenbry Capital to get a line of credit for your business today with no collateral required.
by Kenbry Capital | Jun 30, 2023 | Blog
Securing a business loan can be an essential part of starting and running a successful enterprise. But when your application for a business loan is denied, it can leave you feeling frustrated and confused. Knowing why your loan was denied in the first place can help you identify what needs to change before applying again so that you have better luck next time.
Low Credit Ratings
Poor credit is one of the primary reasons that banks deny business loan applications. Potential lenders will closely examine your credit history, paying special attention to any instances of late payments or defaults on previous loans. If you have a low credit score, it’s unlikely that you’ll be able to secure financing from a lending institution. Before applying for a loan, consider working to improve your credit score so that you can have the best chance of being approved.
Insufficient Collateral
Another common reason that banks deny small business loans is insufficient collateral. Collateral is essentially anything of value that lenders can use as security if the borrower defaults on their loan payments. If you don’t have enough assets to put up as collateral, you may find it difficult to get approved for a loan.
A Thin Business Plan
Finally, weak business plans can also contribute to loan denial. If your plan lacks detail or doesn’t have enough evidence of potential success, lenders will be hesitant to approve your request for funds. Be sure to prepare an in-depth business plan before submitting your loan application, and make sure that it includes realistic projections of success.
Knowing why your business loan was denied can help you identify areas in need of improvement before applying for funding again. Take the time to review your credit score, consider what assets you can use as collateral, and create an effective business plan so that you have the best chance of getting approved for a business loan.
Talk to the experts at Kenbry Capital. We offer a wide range of accessible business financing solutions that do not depend on high credit ratings, collateral, or other factors.
by Kenbry Capital | Jun 23, 2023 | Blog
If you are a medical practitioner looking for financing to open or expand your practice, medical practice loans may be the perfect solution. A medical practice loan is an effective way to fund the purchase of equipment, hire additional staff, and cover other expenses associated with starting or expanding a healthcare business.
Debt-to-Income Ratio
When it comes to applying for a medical practice loan, there are several factors that you need to take into consideration. Your credit score is one of the most important elements to consider when applying. Most lenders require applicants to have a good or excellent credit score to be approved. Additionally, the debt-to-income ratio is also important. This is the ratio of total monthly debt payments to gross income. Most lenders have a maximum debt-to-income ratio that you should aim for when applying for a loan.
Documentation
Aside from credit score and debt-to-income, you will also need to provide documents that verify your personal information and business financials. This includes proof of income, bank statements, and tax returns. The more information you provide to the lender, the better your chances of being approved for a loan.
Compare Terms and Rates
The best way to make sure that you get the most competitive rate on your medical practice loan is by shopping around and comparing rates from different lenders. There are several online platforms where you can compare loan options and find the best deal. Additionally, you should reach out to local banks or credit unions in your area for more information on their lending products.
Finally, it’s important to make sure that you read all of the fine print before signing any loan paperwork. This includes understanding all of the fees and repayment terms associated with the loan. Once you understand all of the terms and are sure that it is a good fit for your business, you can move forward with submitting your application. Contact Kenbry Capital today to get accessible financing solutions for your medical practice.
by Kenbry Capital | Jun 16, 2023 | Blog
Are you in the market for a commercial truck loan? If so, then you need to understand exactly what this type of financing is and how it works. A commercial truck loan is a type of loan that allows individuals or businesses to purchase trucks for business use. This could include purchasing delivery vehicles for goods transport, construction trucks, dump trucks, flatbeds, and more. Commercial truck loans are available from banks and other financial institutions as well as specialized lenders who specialize in this type of financing.
Qualifying for Commercial Truck Loans
When applying for a commercial truck loan, you will need to meet certain eligibility requirements. These could include having a good credit score and financial history, as well as demonstrating enough income or assets to support the loan payments. The lender will also likely require some form of collateral such as an existing vehicle or real estate property to secure the loan. Additionally, you will need to provide proof of insurance for the truck and tax documentation such as a sales tax receipt or registration form.
Fees and Interest Rates
The cost associated with commercial truck loans can vary depending on the type of truck you purchase and your creditworthiness. Generally, lenders will charge an interest rate based on market conditions as well as other fees or charges. It is important to research different lenders and compare rates and fees to make sure you get the best deal.
Getting Approved for a Truck Loan
To increase your chances of getting approved for a loan, it may be helpful to take steps such as improving your credit score or building up other assets that can be used as collateral. Additionally, having a solid business plan and a clear idea of how you will use the truck can help convince lenders that you are a responsible borrower.
With the right planning and preparation, getting approved for a commercial truck loan can be relatively simple. Contact Kenbry Capital today to get the financing and equipment you need for your trucking business.
by Kenbry Capital | Jun 9, 2023 | Blog
Invoice factoring is a type of financing that allows businesses to get money for their unpaid invoices quickly and without taking on debt. It’s an attractive option for small business owners who are looking for ways to increase cash flow, but don’t want the hassle or cost associated with traditional loans.
The Invoice Factoring Process
Invoice factoring is a process in which a company, known as the “factor”, purchases unpaid invoices from another business at a discount. The factor then takes on the responsibility of collecting payment from the customer on behalf of the original business. Once the invoice has been paid and collected, the factor will return any remaining funds to the original business, less a fee for their services.
Fast Access to Funds
The main benefit of invoice factoring is that it allows businesses to access cash quickly and easily. Since most factors offer quick turnaround times, businesses can get the money they need within days or even hours, rather than waiting weeks or months for customers to pay their invoices. This can be incredibly helpful for businesses that need to make payroll, purchase new equipment, or cover other expenses.
No Debt
Another advantage of invoice factoring is that it’s a form of financing that does not require the business to take on debt. Instead, the factor buys the unpaid invoices at a discount and assumes responsibility for collecting payment. This allows businesses to get the cash they need without having to worry about making monthly payments or dealing with lenders.
Ultimately, invoice factoring can be an excellent option for businesses looking to access cash quickly and without taking on debt. If you want to improve your cash flow and get fast access to funds within 24 hours without placing debt on the balance sheet, contact Kenbry Capital today to start factoring your invoices.
