Author Topic: Business Loans  (Read 1558 times)

Michelle1965

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Business Loans
« on: October 22, 2014, 07:51:46 PM »
Has anyone heard of or worked with National Business Capital to get a business start up loan? They seem reputable!  :)

Merry

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Re: Business Loans
« Reply #1 on: October 22, 2014, 08:03:28 PM »
Ok..perhaps I will blow your bubble with my response but it is the truth. I never recommend anyone borrowing money to get into medical billing unless you are established, have clients, and have the income to pay back a loan. It could be months before you get your first client but the lender will want to be paid that monthly payment.
I did some research and did not get the same feeling that you did about the company.
It is very difficult to get a loan today without excellent credit.and sometimes having to put up collateral to guarantee the loan..or you end up paying very high interest. Please research thoroughly. I would talk to your bank first. Just my opinion of course.

shanbull

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Re: Business Loans
« Reply #2 on: October 23, 2014, 09:03:21 AM »
Merry is right about tight credit and high interest rates right now. Make sure you're protected, look into limited liability especially because if you decide to pursue a loan, right now is difficult in terms of getting financing and fair terms. This is true for all credit including everything from mortgages and personal lines of credit to business loans at the moment. Banks and lenders are still skittish from the recession and the subprime mortgage fiasco that was caused by giving credit on such loose terms that people were offered deals they never could have hoped to pay for based on their incomes. Now things have swung in the opposite direction and people who make way more than they would need to are having a hard time getting loans at all. And the loans that do exist have much stricter terms and higher interest rates than a few years ago. It may even be worth it to consider scaling down your approach for now and wait a year or two for the credit situation to improve. You will probably end up with a better loan and ultimately have to pay thousands less in interest. If you do still want to pursue a loan now, I agree with talking to your bank, and maybe an independent financial adviser who is not affiliated in any way with your bank who has no vested interest in getting you to agree to a loan.

kristin

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Re: Business Loans
« Reply #3 on: October 23, 2014, 08:25:25 PM »
While I have never started my own billing company, I agree with Merry and shanbull...I would avoid taking out a start-up loan if you can. I base my opinion on having worked for two people who started billing companies, and I came on with each of them shortly after they each got their first client. Here is what they did:

Person A took out a hefty start-up loan, got a business coach, rented office space, made a website, and did all kinds of marketing. Nothing happened. They FINALLY got a client, then things went south with that client after a few months and they ended the contract. They got another client, and then they ran out of money, because they spent so much on marketing and the issues with the first client, and the new client they had wasn't generating enough income for the business to stay afloat. Person A was out of business and out of money within a year. And still had that hefty loan to pay back.

Person B started their business with no loan, working out of their home. No office, no business coach, no website, no marketing. What they had, which costs nothing, is contacts. They had worked for a doctor, and parlayed that into their first client, and from that client's referrals, got two more clients. Person B is two years into their business, doing well, with more clients on the horizon. And no loan to pay back.

I also work for a third billing company, very established and successful, who did what Person B did.

So from what I can tell, getting started isn't about loans and money...it is about contacts and referrals, which are free.

Michelle1965

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Re: Business Loans
« Reply #4 on: October 24, 2014, 05:26:38 AM »
Thank you everyone for the advice!  I used to work in banking 6 years ago, so I contacted the loan officer I knew there, and she has actually referred me to a few places, so I will have to check out all of my resources before jumping right into it.

PMRNC

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Re: Business Loans
« Reply #5 on: October 24, 2014, 11:32:37 AM »
I agree with everyone else. I think it's too much of a risk in the start-up phase, it can take a while to get that money paid back and it's a TOUGH market.
Linda Walker
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