While there are strong signals that the small business merger & acquisition market is heating up in 2011, most entrepreneurs are still being challenged when it comes to obtaining capital to fund the acquisition. As a result, the amount the person receives as interest payment from his savings account is higher than the amount he or she has to pay for taking the loan. Payment Status: It reflects the status of an account, i.e., whether payments have been made on time.
Some loan packages are offered by government agencies, which attract many borrowers since they come with guarantees other lenders cannot provide. Rewards Program: A program offered by some credit card companies to reward purchases or transactions made by using their credit cards.
Overdraft Protection: A service provided by many financial institutions, wherein funds are transferred from one bank account to another, if enough funds are not available in a particular account. About 850 lenders qualify for the SBA’s Certified Lender Program, having met certain criteria, the most important of which, from the borrower’s perspective, is extensive experience in SBA loan-guarantee processing.
The loan that is taken for the purpose of consolidating all debts, i.e., combining multiple loans into one single loan is called ‘consolidation loan’. Universal Default: It is the practice of increasing the interest rate on the credit provided to a particular customer on receiving the information that he or she has defaulted with other lenders.
When applying for a loan and writing a business plan, make sure your financial projections are correct. As we all know, on February 17, 2009 the President signed into law the Recovery Act which, under section 502, authorized the SBA to guarantee loans up to 90%.