Most Entrepreneurial States: Where Small-Business Loans Rule and Startups Are …

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Universal Business Structured Solution Taking New Clients in Need of Unsecured …

NEW YORK, Oct. 14, 2015 /PRNewswire/ — Universal Business Structured Solution is eager to announce that they are taking new clients in need of unsecured business loans this October. Universal Business Structured Solution has vast experience helping entrepreneurs and small business owners acquire the cash they need to help their company grow. To apply for one of their unsecured business loans, those interested must first guarantee that they meet their minimum requirements, and then download and fill out an application form on their website, www.ubssolution.com.

To be approved for any unsecured business loan from Universal Business Structured Solution, the applicant must prove that their company has been operable for over a year. Additionally, their annual gross must revenue must exceed $100,000, and their average bank balance must be no less than $3,000. Universal Business Structured Solution can typically provide loans that are under, or up to $35,000, in less than one day, and the most they can provide at once is $2,000,000.

Business owners who feel secure offering up a percentage of their credit or debit sales as a repayment option for debt will find a merchant cash advance ideal. Furthermore, businesses with bad or little credit can apply, as this is not a factor that most lenders consider when offering a merchant cash advance. However, most businesses that are awarded a merchant cash advance are those that who can relay to the lender that business is going well, and that they will use the money to improve their products or services.

Universal Business Structured Solution does not guarantee that all applicants will receive the financing option or loan that they desire. In fact, if the company determines that the information is not comprehensive enough, they may reject the application. To learn more about Universal Business Structured Solution, their financing options and loans, please visit their website today.

About Universal Business Structured Solution:

Universal Business Structured Solution offers unparalleled expertise in the realms of commercial real estate financing and business financing. The company also specializes in helping companies acquire unsecured business loans in as little as 24 hours. In all, Universal Business Structured Solution provides innovative financial services and products to clients across the country. To learn more about the company and the services that they offer more in depth, please visit http://www.ubssolution.com/.

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These Cincinnati banks made the most small-business loans last year

Greater Cincinnati small businesses borrowed money in the just-completed fiscal year at the fastest clip since the financial crisis struck in 2008, according to new Small Business Administration data.

The number of loans through the federal program to small businesses in the four major Southwest Ohio counties – Hamilton, Butler, Clermont and Warren – jumped 23 percent to 533, SBA data showed. That’s the most local SBA loans since 2008, when local companies received 566 loans through the program. The dollar amount that banks loaned those companies also rose 26 percent to $164 million. That’s the most in at least nine years. Figures are for the fiscal year that ended Sept. 30.

How This Company Books $1 Billion Annually In Small Business Loans

Securing financing for your small business may soon get a touch easier.

Alternative lender Kabbage scooped up $135 million in equity financing as part of its Series E funding round, the seven-year-old Atlanta company announced on Wednesday. The new equity brings its total raised to $240 million.

Thiscapital is all being used to support additional growth of the platform, as opposed to bringing the platform to profitability, notes Milton Berlinski, co-founder and managing partner at Reverence Capital Partners. Reverence, which led the latest round, contributed more than half of the total funding. Though, Berlinski would not disclose an exact number.

While small businesses looking for a loan will surely benefit from the company having more funds at its disposal, the greater opportunity may well lie in Kabbages own business model.

The alternative lending sector in general is heating up.For proof, look no further than giants OnDeck and Lending Club, which both hit the public market with greatsuccess last year, raising $200 million and $870 million, respectively. Thesecompanies use automated web platforms, which — unlike traditional banks — can underwrite potential clients on many factors beyond aFICO score. Apart from Kabbage, new private entrants include Fundbox and Credible, among others.

Whats more, the companys latest funding round includes participation from three major global banks:ING, Santander InnoVentures, and Scotiabank. Their participation is notable, as more traditional institutions are recognizing the appeal of financial technology startups.

What sets Kabbage apart, according to co-founder and COO, Kathryn Petralia, is the comparatively short payoff period length and size of its loans. Clients may choose to pay off their loans within two intervals, eithersix months or 12 months. The speed with which clients can apply for (and receive) financing is also a selling point. All said, the process takes about sevenminutes, according to Petralia.

Kabbage can afford to give smaller sums of moneybecause the company doesnt pay typical back-end costs–a brokers fee, for instance–thanks to its automated platform. The average line of credit is about $25,000, borrowed in regular installments of about $6,000.

At our very core, the focus has always been on automation and technology, Petralia says. We ask the same exact questions that the banks ask, but we use data in a different way to get there faster.

When you sign up for Kabbage, it syncswith yourcompanysdata sources (a checking account, accounting software, or shipping partner, for instance) to evaluaterisk, credit history, and to help determine the size of a loan. While thats sure to raise eyebrows from a cybersecurity perspective, Petralia insists that the company never has access to login credentials; borrowers must be physically logged in themselves to use Kabbage.

Kabbage serves a variety of corporate clients, from construction companiestonail salons to e-commerce retailers, and Petralia estimates that70 percent of customers are brick-and-mortar shops.

Still, businesses arent guaranteed a loan. An average client bills more than $500,000 in annual revenue and has been operational for more than one year. Clients tend to also have prime FICO scores above 640.Kabbage claims that it doesnt underwrite clients based on justthe FICO score, but it does use the figure as a benchmark.

Beyond that, clients need to be willing to fork over a hefty annual percentage rate–the average is 42 percent. There is no additional origination fee, however.

To diversify its revenues, Kabbage also licenses its software to third-party banks. And last September, it rolled out a beta consumer lending service–cleverly, dubbed Karrot–since 30 percent of visitors to the site were already seeking individual loans.

Kabbage is originating$1 billion in loans each year, which definitely stacks up against the competition. OnDeck, for reference, originated about $1.2 billion in 2014. But some analysts are skeptical that Kabbage could continue to acquire (and retain) its customers over time.

Its a good point of entry for a lot of businesses, says Brian Riley, an executive advisor with the financial research providerCEB TowerGroup. Sooner or later, businesses are going to hit a threshold where they can deal with a bank. The better I get as a business, the less likely I am to use [Kabbage].

He also flags that the 42 percent APR is a very high number, relatively speaking. Banks, on average charge between 8 percent and 10 percent on small business loans.

Petralia remains confident in her companys technology. Not only was it ahead of the game in 2008, it will continue reaping the customers Kabbage needs moving forward.

Seeing a market for small business loans Strategic partnership between credit …

Richard Garcia, vice president for real estate and commercial business lending with North Jersey Federal Credit Union, said his institution is actively seeking to lend to local small businesses. – (PHOTO BY AARON HOUSTON)

These Companies Want to Pay Down Your Student Loans

For many Millennials, a company that offers to pay down a portion of their student loans sounds like a dream. But, these types of benefits are set to become a reality and commonplace at many large companies next year.

“Companies are looking to tailor benefits to their employee population,” said David Melancon, founder and CEO of New York-based btr., a benchmarking platform that ranks companies. “They are trying to get Millennials and even the folks after Millennials to choose their company.”

Offering a contribution to a graduate’s student loans is a recruitment and retention tool, student loan industry experts say. It’s similar to a sign-on bonus or a bump up in salary compensation.

Warning light

  • Business
  • Consumer credit
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  • United States
  • Germany

The risk now is that worries about the cost of cleaning up the emissions scandal trigger a cash squeeze. VW is most at risk. It has EUR67 billion of existing debt due over the next 12 months. On top of that it will need another EUR25 billion to continue financing its sales and keep up with Toyota and GM as one of the top three carmakers. It has EUR33 billion of cash in hand. VW will also receive EUR47 billion from car-loan repayments this year, and perhaps EUR20 billion of cash generated by its carmaking business. In the absence of any penalties, compensation or recall costs, things would be fine. But as the investigations and lawsuits multiply, the risk of a significant financing gap is growing. If emissions fraud is detected at other firms, lenders may balk at refinancing the vast sums that the four biggest European carmakers will need this year.

One bad sign would be if investors were to stop buying securitised car loans. In America each year, carmakers and others package up about $100 billion of loans and sell them to other investors. If fixing diesel cars’ emissions of nitrogen oxides makes them less fuel-efficient, as is feared, their second-hand value, and thus their worth as collateral, will suffer, possibly spooking investors. If carmakers can no longer finance their sales this way, they would have to load their balance-sheets with more debt.

VW’s cost base is designed around the economies that come from producing 10m vehicles a year. If a financing squeeze means it cannot finance the sales of a million or two of those, its situation could turn ugly. Other carmakers that have not been implicated in the scandal may nevertheless suffer from a general squeeze on car loans, just as they may suffer from tighter enforcement of emissions rules. For financially weak firms like PSA Peugeot Citroën–40% of whose sales are diesels–this could be a big blow.

Rising Tide fund to offer small-business loans in three more counties

The Rising Tide Community Loan Fund, the community development financial institution subsidiary of the Community Action Committee of the Lehigh Valley, is extending its reach.

The loan fund now will provide small-business loans to applicants in Monroe, Carbon and Upper Bucks counties. The fund needed board approval to expand its service territory.

The intent is to fill a need, said Chris Hudock, director of the fund. We were getting calls from those areas seeking the kind of help we offer.

Hudock said there are limited resources for small-business loans in Monroe and Carbon, and while most Bucks County businesses could avail themselves to services of Community Development Financial Institution organizations in the Philadelphia area, some small businesses in the northern part of the county were having trouble gaining the CDFIs interest.

It doesnt always make sense for them to go into Upper Bucks to make a $10,000 loan, he said.

Thats where his organization comes in.

None of these loans are bankable, Hudock said. We work with them to the point where they are.

The Rising Tide Community Loan Fund is the only federally certified community development financial institution headquartered in the Lehigh Valley.

It offers loans to micro- and small business that have difficulty getting loans from conventional sources. The Rising Tide has awarded 147 loans totaling just under $4 million since its inception.

Nonprofit, Online Lenders Team Up to Offer More Small-Business Loans

A wave of new partnerships between online lenders and nonprofits that offer microloans means more small-business owners can get fast, convenient and sometimes less expensive small-business loans.

With the move, nonprofit lenders are gaining access to the financial technology — or fintech — that online lenders, including OnDeck and Lending Club, have pioneered. For online lenders, the partnerships showcase goodwill and provide access to borrowers who, with time and improved credit, may become their own customers. In some cases, the nonprofit and online lender partners work together to provide a wider range of financing products, which the customer accesses simultaneously.

Nonprofit lenders  – often community development financial institutions, or CDFIs – serve borrowers for-profit lenders don’t: startup businesses and “under-banked” business owners in underserved communities with little to no credit.  Many CDFIs offer business counseling and report to business credit bureaus, which helps borrowers’ credit scores as long as they’re paying on time. With improved credit, borrowers could be eligible for small-business loans from online lenders when they need a second or third loan to grow.

Online lenders regularly turn down “entire segments of people whom Opportunity Fund would be happy to lend to,” says Caitlin McShane, marketing and communications director at Opportunity Fund, a California CDFI that recently partnered with Lending Club.

Starting in January 2016, borrowers who would normally get a “no” from Lending Club because of bad credit may be able to get a “yes” through Opportunity Fund, McShane says. Lending Club’s technology will seamlessly redirect those borrowers to Opportunity Fund, which will underwrite and service the loans. On the flip side, if a borrower is overqualified for a loan from Opportunity Fund – but still can’t qualify for a bank loan – Opportunity Fund could refer that person to Lending Club, although that isn’t officially part of the partnership, McShane notes.

OnDeck, another online lender, is partnered with the Association for Enterprise Opportunity, a micro-business advocate and creator of Tilt Forward, an online platform connecting borrowers with small-business loans from nonprofit lenders. Online lender Dealstruck is partnered with Valley Economic Development Centers, a nonprofit small-business lender for borrowers in eight states including California, New York, Illinois and Florida.

Marrying fintech with lower-cost capital

The details of the specific partnerships vary, but they all combine what makes online lenders successful – intuitive, sophisticated technology – with what nonprofit lenders bring to the table – lower-cost capital and relationship-driven support.

Although nonprofit lenders offer lower rates and more in-person assistance than do for-profit online lenders, they’ve traditionally been bogged down by paperwork. Online lenders have made small-business-loan underwriting extremely efficient by using algorithms to pull borrowers’ data, but they’re known to charge high interest rates, with annual percentage rates ranging from 7% to 113%.

“If you can bring those two components together — the technology, with lower-cost capital and trusted guidance — you can do more to see how underserved small businesses can get access to capital,” says Connie Evans, president and chief executive officer of the Association for Enterprise Opportunity.

Here’s what you need to know about the partnerships three major online small-business lenders have forged with nonprofit lenders.

Lending Club and Opportunity Fund

Opportunity Fund focuses on underserved California business owners. It offers small-business loans from $2,600 to $100,000 with one- to five-year terms and APRs ranging from 10.6% to 23%, depending on the term. Through the partnership, California borrowers with bad credit who apply for a Lending Club loan and don’t qualify will be seamlessly directed to Opportunity Fund, which will underwrite and service the loan. Lending Club gained positive PR from the arrangement – former President Bill Clinton announced the partnership in June at the Clinton Global Initiative America meeting in Denver.

OnDeck and the Association for Enterprise Opportunity

The Association for Enterprise Opportunity’s Tilt Forward initiative uses OnDeck’s technology to help participating CDFIs underwrite borrowers more efficiently. Four CDFIs currently use the Tilt  platform: Georgia-based Access to Capital for Entrepreneurs, New Jersey-based The Intersect Fund, Missouri-based Justine Petersen and New York-based Business Center for New Americans. When small-business owners apply for a loan with these nonprofits, they’ll have the same fast and convenient experience that OnDeck offers, but they’ll be matched with a lower-cost loan. Interest rates for the participating CDFIs range from 16.5% to 22%, with a 2% origination fee, Evans said in an email.

Dealstruck and VEDC

Dealstruck offers loan terms up to four years with APRs ranging from 11% to 28%, as well as lines of credit. VEDC offers small-business loans with lower APRs – 8% to 15% – and terms up to 10 years, but it doesn’t have a line-of-credit product. Together, Dealstruck and VEDC can offer borrowers a wider range of financing products. For example, Zeev Hertzberg, owner of Event Power Solutions in South El Monte, California, got a term loan from VEDC and a $50,000 line of credit from Dealstruck.

“The line of credit is something that gives us money in our back pocket, so to speak,” Hertzberg says, citing unexpected bills as an example. “The loan is to purchase equipment for our business.”

The bottom line

As the online lending industry becomes more mainstream, small-business owners have more ways to get loans online. For-profit online lenders including OnDeck, Lending Club and Dealstruck are teaming up with nonprofit lenders to offer small-business loans to a wider range of borrowers.

Find and compare small-business loans

NerdWallet has come up with a list of the best small-business loans to meet your needs and goals. We gauged lender trustworthiness, market scope and user experience, among other factors, and arranged the lenders by categories that include your revenue and how long you’ve been in business.

Compare business loans

To get more information about funding options and compare them for your small business, visit NerdWallet’s small-business loans page. For free, personalized answers to questions about financing your business, visit the Small Business section of NerdWallet’s Ask an Advisor page.

Teddy Nykiel is a staff writer at NerdWallet, a personal finance website. Email: teddy@nerdwallet.com. Twitter: @teddynykiel

Image via iStock.

Why millions of Russians could go bankrupt today

Millions of indebted Russians will gain the right to file for bankruptcy for the first time ever on Thursday, as the countrys authorities try to ease peoples debt burdens as they struggle amid a deep recession.

From October 1, a new law in Russia will allows citizens with total debt of more than 500,000 rubles ($7,600) and over three months of missed payments to file for bankruptcy. In addition, penalties can be imposed on debtors who fail to register as bankrupt if they cannot fulfil loan repayments.

Previously, only legal entities such as companies and business partnerships could file for bankruptcy and the idea of the new legislation is to create a framework in which individuals can restructure their loans.

Debtors owing less than 500,000 rubles can also file for bankruptcy if they can prove they are not able to pay the loans, according to Russian news agencies.

The law applies to all kinds of loans, from consumer and car loans to mortgages and loans in a foreign currency.