If you are a startup or smaller business that is just making a name for itself and needs extra cash, finding a lender can be challenging. Traditional lenders, such as banks, require good credit scores and collateral to get approved for small business loans and many other types of financing. Whether you need to buy additional inventory to get through the holiday season or you are low on cash because you are in the slow time of your seasonal business, how do you get the funding you need if have bad credit and no assets to put up for collateral? […]

64% of small business owners start with $10.000 or less. They’re primarily self-funded. If you, as a small business owner, need access to working capital, be aware it may be challenging to get approved for a small-business loan. So, you need to prepare well so that to increase your chances of getting a loan. What do you need to focus on? Reason You Need Funding Lenders would like to know the reason you’re applying for a small business loan. Determine whether you need it to start your business, manage day-to-day expenses, grow your business, or maybe to have a safety […]

Natural disasters such as floods, hurricanes, tornadoes, volcanic eruptions, earthquakes, tsunamis, and other geologic processes can cause loss of life or property damage. You can read several helpful tips in this article that will help you recover and get out of the situation. Damage Caused by Natural Disasters Globally, 8.700 people were killed by natural disasters in 2016. This is down from 25.400 in 2015. Global natural disasters resulted in $175 billion in damage in 2016. The global cost was the highest in 4 years. Only 30% of the losses ($50 billion) were insured, according to the German reinsurance firm […]

The holiday season accounts for 20% of the retail industry’s annual sales. It’s often responsible for up to 30% of some individual retailer’s sale. Based on 2016 ecommerce statistics, gift cards are the most desired holiday gifts. The biggest days of sales for retailers and ecommerce businesses are on the 22nd and 23rd of December. According to the National Retail Federation (NRF), holiday sales are projected to increase 3.6% – 4% for a total of $678.75 billion to $682 billion in 2017. This is up from $655.8 billion in 2016. Since holidays are such an important time of year that […]

My commiserations to all merchants who commit themselves to establishing great companies only to have them destroyed by natural disasters like the most recent Harvey and Irma Hurricanes.  While one may argue that business owners should prepare earlier for such phenomena, most startups lack the capital to invest on disaster recovery and continuity strategies. To provide such victims with a stepping stone to revival, here’s a useful list of benefits available together with links to get your on the provider’s websites and make the most out of them as fast as possible. Low Interest Loans:  SBA and USDA both provide […]

There are plenty of good things about a cash advance… and a few bad ones. Below are the key things you need to know before obtaining a cash advance. Fixed Fee (also called the Buy Rate or Factor Rate): This number is how much you’ll eventually have to pay back. Generally it’s written with a decimal point (ex: 1.30), but you might also see it as a percentage (30%). The math is pretty simple: you get the number you’ll have to pay back by multiplying the cost of your advance with the fixed fee. For example, on a $1,000 loan, […]

Receiving a rejection letter for a business loan you were counting on can be discouraging. Data from the Small Business Administration (SBA) reveals that nearly 50% of small business loan applications are rejected for a variety of reasons. Understanding the most common reasons banks decline loan applications can be useful for your own business endeavors. 1. You applied for the wrong loan product Some banks may specialize in a certain type of lending or industry. For example, a lender may choose to fund large corporations that reach a certain revenue threshold or carry a specific number of assets. Other banks […]

What is working capital? And why should it matter to your business? Working capital is the funds your business has available to cover day-to-day expenses. Without it, your business could quickly find itself in a dangerous cash-flow situation. Or, worse case scenario, facing bankruptcy. It’s also important to keep an eye on working capital because it’s what investors consider when assessing your business’ financial health and liquidity; that is, how easily your business’ assets can be sold to generate cash on hand. Working capital can be found through the following, simple formula: Working capital = current assets – current liabilities […]

How to get funding is often at the top of any entrepreneur’s list of challenges. From getting a business off the ground to attracting customers to hiring staff and expanding, an enterprise is almost always in need of capital. Thankfully, the last few years have seen a tremendous increase in the number of financing options for both new and existing businesses. Today, the bank isn’t the only choice of funding at a merchant’s disposal. That said, not all business owners find it easy to acquire funding. Small businesses, in particular, are known to suffer rejections by lending institutions, while other […]

There comes a time in the life cycle of a business when it needs some form of financial help. If you’re an SME owner, for instance, you could want more funds to buy equipment, hire new staff, grow your brand’s awareness, clear your debts, or just meet daily operational costs. Whichever reason it may be, raising capital is rarely an easy endeavor. Nevertheless, you can sleep a little more soundly at night by choosing the method that is best for your situation. Below are some viable options. SBA loans The Small Business Association has been issuing loans to SMEs for […]