If you you are planning to run your own business (or already run one) then one of the first things you will need to get started is money, and fortunately there are a number of different loans for small businesses – whether you are just getting started or are looking to expand. Credit Score and Credit Ratings: A single late payment leaves a blemish on the credit report and tends to tarnish one’s credit score. While a small business loan refers to a loan for the business itself, the personal credit history of the business owner will strongly determine if the bank or lender would give its approval to the application.
Three C’s: Three C’s refer to character, capacity, and capital, which are considered the three basic criteria by the lenders for granting loans. When you are writing the proposal letter, make sure that you let your lenders (whether private or government) know about your business plan.
This is charged by the lender to compensate for the loss of interest payment that the loan would have paid for the full term. Cashing: Cashing or ‘PIN cashing’ is a form of carding wherein illegally obtained credit or debit card information is used to draw cash from another individual’s credit line or account.
Fair and Accurate Credit Transactions Act (FACTA): A federal law of the United States, which is an amendment to the Fair Credit Reporting Act. There are bank loans and merchant service providers. If more money is required, it will be available for your business and can be paid over a period of time.
Banks and financial institutions generally conduct such checks before sanctioning any kind of loans to their customers. The most recent payment made on an account on the other hand, is known as recent payment. Graduated Payment: A loan repayment scheme, where the payment begins with small installments, and then gradually rises at a predetermined rate over time.