Craig Lundquist, Kristin Becker and Richard Mathaus photo
Ideal Wealth Advisors logo

Craig Lundquist, MBA, ChFC®, CRPC®

Wealth Management Advisor

craig.lundquist@lpl.com

651-773-2757

 

Kristin Becker

Senior Administrative Assistant

kristin.becker@lpl.com

651-773-2821

 

Richard Mathaus, CLTC

Financial Consultant

richard.mathaus@lpl.com

651-773-2867

 

Ideal Wealth Advisors

Located at Ideal Credit Union

8499 Tamarack Road

Woodbury, MN 55125

May/June 2022

Understanding Small Business Loans

Understanding Small Business Loans

Having significant debt is never a good business model. However, seeking funding to make your business more profitable may be a smart move. Start the process by reviewing your financing options.

Debt Financing
Loans from a financial institution are a common method of business financing. The lender assigns the loan terms, including the loan duration, monthly payments, and interest rate. Lenders have no control over your business decisions, and the loan interest is tax deductible as a business expense. If you’re taking on debt, make sure you have sufficient capital coming into your business to meet all monthly expenses.


Equity Financing
Equity financing comes from an individual or firm that invests in your business. You won’t have monthly payments and won’t have to pay back the funds, potentially leaving you with more cash on hand to grow your business. With equity financing, though, you’re giving up some percentage of ownership to the investor(s)—sometimes 50% or more. Unless you have an option to buy out an investor’s stake, the investor will continue to earn a percentage of your profits indefinitely.


SBA-Guaranteed Loans
The Small Business Administration partners with lenders to offer guaranteed loans for most business purposes, including real estate, construction, equipment and asset purchases, business acquisition, debt refinancing, etc. Eligibility depends on the lender, but businesses that are unable to get financing elsewhere may qualify for SBA loans.


Lines of Credit
Lines of credit provide access to funds as your business needs them, up to your account’s credit limit. They typically have a variable interest rate, and monthly payments are based on the amount borrowed. They’re appropriate for managing short-term cash needs and may be particularly useful for businesses with seasonable sales.


Business Credit Cards
A credit card can help with buying items your business uses every day. Look for a card that offers cash back on purchases. Cards often have high interest rates and low credit limits, so pay off any balance when the bill comes.


Friends and Family
Loans from relatives or friends may be another option. Present your business plan and draw up a repayment schedule.

1-05239125


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Ideal Credit Union and Ideal Wealth Advisors are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using Ideal Wealth Advisors, and may also be employees of Ideal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of Ideal Credit Union or Ideal Wealth Advisors. Securities and insurance offered through LPL or its affiliates are:

Disclosure
This publication is not intended as legal or tax advice. All individuals, including those involved in the estate planning process, are advised to meet with their tax and legal professionals. The individual sponsor of this newsletter will work with your tax and legal advisors to help select appropriate product solutions. We do not endorse or guarantee the content or services of any website mentioned in this newsletter. We encourage you to review the privacy policy of each website you visit. Limitations, restrictions and other rules and regulations apply to many of the financial and insurance products and concepts presented in this newsletter, and they may differ according to individual situations. The publisher and sponsor do not assume liability for financial decisions based on the newsletter’s contents.
The sender and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.