Category Archives: Business

Small Business Loan Application

Believe it or not, every small business loan application doesn’t have to take up a few weeks of your life. Not every lender will require perfect credit, a complicated business plan, and pages and pages of documents just to tell you whether or not your business is going pay rent this month. Occasionally small business owners find themselves in a financial tight spot. That’s a simple fact of doing business. What’s not a fact is that the major banks, SBA and fast cash merchant cash advance companies are your only options for a small business loan application. Read on to learn what other small business loan applications options you have.

The Good and Bad of a Small business Loan Application from a Bank

If you have ever tried to fill out a small business loan application from a traditional bank, you may already understand the headline. If you haven’t, allow me to fill you in. Banks place heavy emphasis on the entrepreneurs personal as well as business credit, in addition to many other factors. For some business owners, a few missed payments on a credit card can be the difference between receiving funding and being left out in the cold.

Most banks will also want years’ worth of tax returns and other documents for their loan application. They will spend weeks analyzing the data, slogging through every decision you have ever made. You will also need to explain exactly how every penny of the loan will be spent in advance, and detail it in a business plan.

Banks will also require a list of collateral and capital that you are willing to risk on the loan. Should your business run into hard times, you may find the delivery van that you need to run your business has been taken away by the bank.

Finally, after the banking crisis of the last few years, many banks are still feeling the after effects of their poor lending policies that led to the near collapse of the economy in the first place. This can make it difficult to simply find a bank that is accepting small business loan applications at all.

I don’t want you to think that bank loans are all bad. Quite the contrary, banks provide some of the cheapest and safest working capital a business owner could ask for, which often more than makes up for the inflexibility of the loan application process.

What about an MCA or alternative loan for small business?

An MCA (Merchant Cash Advance) is a very different form of lending. To qualify, most lenders require you to have been in business for more than a year, as well as a minimum monthly number of credit card transactions. While the terms and process are much more flexible than a small business loan application, the price tag for the capital can vary widely from lender to lender.

MCA’s are not technically a loan; rather, the lender purchases an amount of future credit card sales your business is expected to make at a discount. Because of this, the loan is repaid in micropayments as credit card sales are made. The advantage to this is there are no large monthly minimums to meet. The disadvantage is a slightly higher overall cost unless the lender has access to inexpensive capital and can provide a discount on merchant account services that will further offset the cost.

Unsecured loans, while sometimes more expensive, often have a much simpler small business loan application process. The trade off is the possibility of slightly higher interest rates to cover the risk of the loan. Because of that, it’s best to find a company that offers a lowest rates guarantee during the small business loan application process. Shopping around can help you save a substantial amount.

So what are your options?

Choosing the right option really depends on your situation. If you can afford the extra time and resources necessary to get a traditional small business loan, then perhaps it really is the best option for you. If you have less than perfect credit or believe you may have a few slow months coming soon, a loan based on cash-flow or an advance on your credit card sales may be the best option. In the end the key is finding a reliable bank or lending company that you can trust to help you find the right solution

Small Business Loans

Just like individuals, businesses are also in need of finance. In fact, it could be said that businesses need finance more than individuals to run the show. There are times when the business meets financial bottleneck or may need extra finance to start or alter some area of the business. In such times, loan options are always looked at. For small and medium businesses it is always better to go for unsecure small business loans to solve the problem.

How To Get A Small Business Loan

Unsecure small business loans are available for individuals and businesses. The steps to apply for them are quite different when it comes to business loans when compared to personal loans. The main difference from personal loans is that for business loans the credit score of the business is usually considered. If the credit score is high then the chance of getting it is higher. Different of them providers require different credit score for providing the loan. It always helps to ask regarding this and get a clear picture of what is required.

A check on the business’s credit score can then be done to see if there is eligibility. It always helps to check the eligibility criteria and weigh the company’s options before applying for it. This is because once one or two loan providers check the credit score and rejects the loan there is always the risk that other of them providers will follow suit. So one should always apply for the loan where there is the best chance of getting approval. In case of these loans there is absolutely no need to give any security or divulge social security number. Once the loan application is filled up getting the loan is easy and some loans are approved within a short period of 24 hours. The repaying of these loans can usually be done within six months to 80 months.

The Advantages Of Small Business Loans

Unlike huge secure financial loans, small loans and unsecured loans have many advantages.

  1. They require minimum paper work.
  2. They do not require any collateral.
  3. They are approved within a period of 24 hours in usual circumstances.
  4. There is usually no restriction on the business types who can apply for the loan.
  5. Most of the loan providers allow unrestricted use of the funds.
  6. The loans are usually available at great rates and are easy to repay compared to other loans.
  7. In many cases there is no annual fee charge.
  8. Guidance and support from the service provider with regard to repayment of the loan.
  9. Finally the application process is simple and easy.

For small and medium businesses financing small business loans are ideal. They are easy to obtain and payback. They are the most economical option that is available and can be used for any genre of business. These loans can also be used for startup companies as well as established companies who are facing financial cringe

Small Business Loans For Bad Credit

There was a time when business owners could simply walk into a bank and get a loan for the business based on their working relationship with the bank and loan officer. With today’s turbulent economy, those times are over, and banks are not willing to expend poor credit business loans. Today’s loans are issued primarily based on the credit score of the business owner, which can make it frustrating to search for a loan to expand or improve your business. Rather than turning to your local bank to find small business loans for bad credit, there are some other alternatives to help you to understand how to get a small business loan with bad credit.

In some cases, local business owners can find small business loans for bad credit by speaking to a smaller, local bank and asking them to consider factors other than the owner’s credit score. Many people don’t realize that their business also has a credit score, which is based on the same factors as a personal credit score- your business credit cards and other unsecured debts, payment history for bills, and the outstanding balance on any loans your company has. If your business has a good credit rating, you may be able to obtain a loan even if your own credit rating is lower.

Online specialty lenders sometimes offer small business loans for bad credit. Some of these lenders actually search for businesses that need money. Many of these lenders offer loans that have high initial interest rates, with the provision that the interest rate will be lowered as the business owner demonstrates the ability to make on-time payments. If you are confident in your business’ ability to pay back the loan, this type of loan can be ideal for your business.

An alternative to poor credit business loans is available to business owners who own their own home. In many cases, you can take out either a home equity loan or offer your home as collateral for a secured loan. For those business owners who are confident in their ability to pay back the amount borrowed, using a home as collateral toward bad credit business loans can be a way to get a lower rate and better loan terms.

When you are looking for a more flexible way to get money for your business to make purchases and pay small bills, you may want to consider looking for poor credit business credit cards. There are lenders who are willing to offer credit cards to businesses in lieu of small credit business loans, and by using small business credit cards for bad credit, you can help to build up the credit score of your company. If you need money to make small purchases, such as office equipment, fuel, or supplies, applying for poor credit business credit cards can offer you far more flexibility than poor credit business loans.

Finding the money you need to make your business work may not be as intimidating as you think. Using the resources of lenders who are willing to extend small business start up loans for bad credit, can not only help you stay afloat in a difficult economy, they can help your business grow. Don’t let worries about bad credit keep you from applying for commercial loans.

However, do keep in mind that when you are looking for Small Business Loans For Bad Credit, you have to look at all the alternatives and compare the interest rates of different loans to ensure that you are getting the best deal possible. Often times, you will get the best rates for loans that are secured by some form of collateral.

Small Business Loans Explained

Small business loans are typically bank loans. People who are just starting out on a small business like to approach banks for financing because they give a certain amount of security. Generally, these loans are what are known as term loans. The concept of a this type of credit is really simple – this is of a fixed length, which means that one must return the amount within a stipulated period of time. Generally, the amount is also amortized.

What They Are

Amortization basically means that the loan must be paid in installments, which will cover both the amount of the loan and the interest calculated on the loan, depending on the rate charged by the bank. Term loans are generally of two basic categories and it is important to understand them before applying for a small business loan. These two categories are – Short and Long.

As is obvious, in the case of a short term loan, one must pay back the amount in a short period of time – usually a year or two. But long term loans are for much longer periods of time and they reach a maturity in a period anywhere between one to seven years. A lot of times, the period of returning the amount of these loans run into decades!

Application process

How do you secure term loans? Most times, you need to secure collateral to achieve this feat. The typical amount of the loan is about twenty five thousand dollars – a reasonable amount for a small business to take off. The average rate for fees is one percent. All sounds simple till now? Well, the tricky part is the approval bit.

Generally, the process of approval is a very thorough one, so be prepared for a very tough screening process. As an applicant, you must be able to prove that you are of a good character, competent and able to handle your business and have a pretty good history when it comes to credit. This process is in fact similar to any other process of securing a loan because banks take into consideration all the same factors, in the case of a term loan.

The good news is, if you are eligible for a loan after this screening process, the interest rate which you have to pay will generally be lower than it is for any other type of loan. For an established small business, it is a smart idea to take a long term loan or an intermediate loan. But do keep in mind, that your bank will demand a squeaky clean financial statement for long term loans of amount exceeding a hundred thousand dollars.

Another thing to keep in mind when applying for a term loan is that banks often limit the liabilities that your business can assume, in addition to the loan. This may sound simple enough, but this can cover every aspect of your business, for example, the salary of your employees! So thoroughly evaluate the pros and cons before you apply for a small business loan

Small Business Insurance Quote

A Small Business Insurance Quote along with an automobile insurance policy will normally complete your insurance program. We have outlined below a few key points that you should consider when requesting an insurance policy.

  • Liability limits. Depending on your business, you should have the appropriate liability limits based upon your exposure to claims or accidents. Thus, if you are in some sort of delivery type business the chances are that you will be more likely to have automobile accident than someone who is not in a delivery type business. Also, if you are part of a franchise usually your franchisor will dictate what liability limits you need.
  • Hired/borrowed auto liability. Sometimes you might find it necessary to rent a truck or a van for your business. Having this coverage already on your policy can save you a lot of money from not having to buy auto coverage from the rental car agency. Although, if you tend to rent vehicles routinely many automobile insurance companies frown upon providing coverage for this exposure. The automobile insurance premium for this coverage is usually based upon receipts.
  • Non-owned auto liability. If you have someone who uses their personal vehicle on your behalf, this coverage you should be in place to protect your small business. The rule of thumb to remember is that insurance follows the car first and the driver second. So, if somebody is using a personal vehicle on your behalf and get into an accident, their personal auto insurance will pay first. It is quite possible that you too will be sued in the accident because they were working on your behalf. This coverage protects you from those kinds of claims.

As you can see, and automobile insurance policy can easily round out your small business insurance program.

Small Business Insurance Quotes

Business insurance covers workers compensation, general liability, business, auto and property insurance. There are types of business insurance, the big and small business. They may cover different insurance in different types of businesses. You may need something about a small business insurance quote for the benefits of you and you’re your company.

To put up this kind of business, you have to apply on small business insurance. To do this, you have to understand what the insurance may cover for you. To find an insurance quote, the following should be considered:

• You have to know the kind of your small business because there are companies that may reject your kind of business you want to open.

• Specify the building and address where you will be situated. You have to state the location if it is a private or commercial location. If the location is a commercial office, then you have to consider the following queries.

– The total area
– How old is the building
– Types of occupant of the building

• If your production uses chemicals, you have to specify where the chemicals are stored. If you think of is a mobile service, indicate where the mobile is to be parked

• Description of your business: when it started, annual income (projected and current income), and the number of employees and their nature of work.

• If you have a vehicle production, you have to register a name, license number, drivers’ license for the employee and provide other information.

• The insurance usually covers health, disability, life, property, general liability and interruption insurance, and workers’ compensation.

• When buying insurance, you don’t have to think that it is an additional expense but it is part of it that provides protection in your company.

Earn Big in Small Business Insurance Quotes

Most of the people in the modern era today are getting interested in putting up businesses. This is because the economy is continuously emerging and many kinds of businesses are coming out due to successive progress of technology. In putting up a business, it does not need to be in a big group of investors, or companies and the like; even you yourself can put up your own business if you want to. You will probably start small but do not deceive the opportunity that you can get. Small businesses are more competitive and progressive compared to big businesses and it is profitable in a shorter span of time. You will just need money, of course, perseverance and passion to put up the business that you want.

In entering the world of business, financial costs and problems are never predictable and avoidable. It can happen anytime and it will just waste out your efforts and hard work for your business. Some of these financial fiascos are loss from life, loss of health, lawsuits and even property damage. But there has always been a way of how you can protect or appropriately how you can save and keep away your business in to these kinds of financial problems. The best way you can do is to get insured in to a business insurance quote.

Small business insurance quote is an insurance policy that mainly deals on how you can get your business even yourself insured in protecting it from common financial costs. Through this, it can help your business cover your needs in the event that business depression arrives and especially when you are financially incapable and insolvent. Most of the businesses today start their small business insurance portfolio by purchasing insurance policies that their business needs and that would fit their budget capacity. There are lots of insurance agencies and companies that offer small business insurance quote at an economical value but at very best services. You can check it online or seek help from financial experts.

In dealing with this small business insurance quote, risks are never deficient. It is a part of investing in insurance policies. But these risks can help you evidently in decision-making and in running your business wisely to be profitable and trouble-free. There are four broad risk exposures that you should be aware of: liability loss exposure, income loss exposure, people loss exposure and property loss exposure. These are the risks that could bring your business into a never-ending business depression. Make yourself well-informed and updated, alarmed and wise enough to handle these risks. Be strategic.

Liability loss exposure is usually an event or claim that arises from negligent accidents. These accidents could be intentional or negligent. It is better to get insurance policies that cover this kind of incidence that will help you give the protection that you really need. Income loss exposure is the kind of risk that you will encounter in the event that the financial flow of your business will experience a downfall. This could be due to loss of your manpower or loss of sales.

Small Business Insurance

Small Business Insurance

There are over 11 million small businesses with between 1-100 employees and if you are one of them you make up a large percentage of the total businesses in the United States. Now consider that most start out with an idea or someone else’s idea and you are very excited to get started, and you have so much to get done and one of the tasks is insurance, Ugh! What is your first thought? “I hate insurance”. Okay, second thought, what do I need? Who do you get it from? What is a fair price?

Let’s start with what do you need basics:

Workers’ Compensation

Needed when or if you have employees

Commercial Auto

Needed when you have a vehicle used in business outside of sales* calls,*vehicles need insurance regardless of business use but personal insurance usually excludes delivery of products, carrying passengers for a fee.

Liability Insurance

Needed when you conduct business, but not required unless it is being requested to secure a contract. An example if you are leasing a building the landlord may want you to carry liability for the space you occupy. If you manufacture a product, a store carrying your product may want you to carry product liability coverage if someone gets hurt using your product.

Property Insurance

Needed if you have business property, equipment, but not required unless it is being requested to secure a contract. An example – the bank you obtained a loan for some machinery, or building wants it to be insured for theft, fire, etc. A landlord requires you to cover the insurance for the building you are leasing.

Business Income Insurance

You should obtain this coverage to protect your income in the event of a covered loss. Not required usually by anyone. This coverage is usually included in a BOP for very little cost. If you have a brick and mortar business such as a restaurant – you should obtain this coverage. It could take years to get the clientele back to a new location if yours should burn down.

Professional Liability Insurance

Needed if you are in a professional industry – Doctor, Lawyer, Dentist, CPA, Veterinarian, etc. Liability insurance to protect professionals for loss or expense resulting from claims of mistakes, errors or omissions committed – or alleged to have been committed – by the insured in his or her professional activities.

Health Insurance

Nice to have as it can attract good employees and certainly good for the owner to have to prevent any unexpected cost associated with a major illness – but certainly not mandatory – yet.

These above are the starter list but there are other coverage’s that are more intricate, such as, umbrella coverage, earthquake, flood, directors & officers, employment practices,coverage within the policies for money, accounts receivables, tenant improvements, tool floaters. Some of these can get added into the main coverage’s the others you need to seek out and a good agent or consultant who can go through a check list of areas and help you decide if you need or what need. Insurance agents have a wealth of products to sell you and most agents are more than happy to sell you any and all of them, so again it pays to be knowledgeable.

Where do you get the insurance?

You all know you get it from an insurance agent, that’s simple, but how do you go about getting the best deal with an agent – that’s really the question isn’t it?

Pop in the words small business insurance in a Google search or anywhere else and up comes plenty of information to shift through. The number one thing to remember is, they are all paid for by insurance companies and agents wanting your business. The insurance companies and agents are paid more if you pay more for insurance. You need the agents, because you know YOU don’t know anything about insurance, but total trust is NOT in your best interest because of the way they are paid. Just because an ad says they are the leader for small business insurance does not make it the most competitive. For example, you can hardly turn on the television, radio or go to any website and not see an advertisement for Progressive or Geico, but does that mean they have the best rates for personal auto insurance? I can tell you, it does not. What it means is that they have a HUGE advertising budget and advertising works – for them, it does not necessarily work for you. So, be smart and use your common sense about insurance. Here are some tips.

The best place to get insurance is from the insurance companies and so you must start with a strategic list of insurance companies and seek them out for a quote, and agents represent those companies. Are you aware that in any given state there are approximately 20-35 mainstream insurance carriers for just the property/liability and workers’ compensation coverage? Has any one agent or even two agents ever given you 20 quotes? If you could see 20 quotes you would also see the vast disparity in pricing – it is really quite fun to watch how the same coverage can vary in price by so much – but the only time you will see it is if you see the entire market. No one agent represents all the markets, even if they tell you they do – they don’t, they never have, they never will. Call a Hartford agent and ask them if they represent Sentry Insurance (not Century) and vise verse, the answer will be no. This is not just the case with direct writers and independent agent carriers. Independent agent carriers rarely even if they represent a mass of carriers go to all of them, they have favorites and they have ones that pay them more commission.

What is a fair price?

If you can see at least ten quotes you can decide what a fair price is, it is the one that gives you the most coverage, with the best rated carrier, for the least amount of money, with an agent who you feel was knowledgeable and professional. If your premiums are high enough (over $10,000) you can also negotiate a better deal with one of the quotes you received.

Uses of Autoresponders For A Business Marketing Strategy

For a local business marketing strategy today, use an autoresponder. It’s a marketing tool that will automatically send messages out for you to people who are interested in your business. And the best way to keep in touch with your prospects and customers is to invite them to become subscribers to get messages about you, your business, and your products and services that you offer to them. It’s easy, it’s automatic, and is one of the best returns on a marketing investment for your business that you will ever get.

1. Turn anonymous website visitors into subscribers.

When people visit your website whom you do not know or have never met before one of the best ways to start a communication line with these visitors is to have them get messages on a regular basis. In exchange for getting these messages they will give you their name and e-mail address and subscribe to what you have to offer to them.

2. Build big relationships with subscribers with little effort.

Since you can write automated messages in advance that will go out to these subscribers automatically on any data you specify and any time that you specify, your messages can reach all of your subscribers with very little effort on your part. The autoresponder does all the work for you automatically 24/7.

3. Enable continuous marketing without hiring more people.

Since this autoresponder is sending marketing messages out to your prospects and customers on a regular basis automatically, you will not need to hire more people to do this. This will save you marketing dollars and you will get a better return on your investment in the marketing department.

4. Follow-up flawlessly without missing a single customer.

Let’s face it; it’s tough to follow-up with everybody that you meet. By using an autoresponder to send out marketing messages about your business, it will never miss a single prospect or customer. They will always get messages sent to them on a regular basis.

5. Generate repeat sales due to constant communication.

People who like to do business with you, will like to do business with you on a regular basis. Especially if you have products or services that they will be continually using or purchasing. By using this automatic messaging system that communicates about your products and services, your customers will be able to buy what they need and want from you on a regular basis – automatically. There’s nothing better than automated sales for a business!

6. Lead more subscribers to your blog or website.

In these messages that you send to your subscribers you can direct them to your blog, your website, your video channel, and your series of articles that you write. All of these different channels that display information about you and your business are helpful. If you have things in your business the people want, then they will want to know about how to acquire these offerings of your business.

7. Obtain measurable results.

Autoresponders have built-in measuring devices which will let you know where your subscribers are located. You can also find out which messages are more desired to be read than other messages. You can find out when the best time of the day is to messages to your subscribers so that they read them right away. The autoresponder will keep track of the number of new subscribers each day. Using these results, you can decide what future information and messages you will send to your subscribers.

8. Ensure better e-mail delivery.

Autoresponders are specially designed to get the e-mails that are used in the autoresponder systems delivered on time to all of your subscriber list. These specialized autoresponder systems work better than other e-mail delivery systems. Therefore you can be confident that your messages are getting delivered to your subscribers.

9. Brand yourself with all the e-mails.

You can brand yourself and your company in your e-mails that you are sending to your subscribers by adding your logo, your tagline, your physical address, your phone number, and anything else that you want to put emphasis on about your business in the minds of your subscribers

10. Allow yourself to easily duplicate your efforts.

You can duplicate all of these tasks once you’ve done them one time for one list. You can have other lists for other subscribers in other categories, other product lines, other services, or any other reason you would want to have a separate list to send messages to separate subscribers.

Powerful Offline Business Marketing Strategy

Here’s a fantastic and very old, but under-used offline business marketing strategy that can explode your local business profits!

On TV recently, I have been watching a new television about restaurant business renovation. It’s called the “Kitchen Job” and is hosted by “John Palino”. I suppose you could say it’s a little bit like Gordon Ramsay’s “Kitchen NIghtmares” TV series… without all the swearing. And this show is based in New Zealand. Quite an entertaining show, and very interesting for the business-oriented person who is struggling with marketing strategy.

After watching a few of these shows, It became apparent that one of John Pilano’s favorite restaurant marketing techniques was personal face-to-face networking. For the struggling restaurateurs, this means taking a platter of their food out into the streets and offering free samples to the public. Now, this works in two ways (well maybe more, but let’s discuss two here):

1. The first reason this works is obvious: people get to taste the food… sample the product. Obviously if the food is moreish, the customer will be excited to visit the restaurant to taste more. Whilst this is a key factor in this marketing strategy, it is not the most important.

2. The second – and most important – reason this works is because the restaurateur is networking with his prospective clients. By sharing his or her personality and enthusiasm with the public, the public are made to feel welcome, comfortable and invited. If the caterer plays his cards right and drums up enough personality and excitement, the simple offering of a food sample can be a memorable moment in their prospect’s day. The more memorable, the more likely the prospect will become a customer.

So, how can you apply this marketing strategy to your offline business?

Even if you are not in the food business, is there a way you can offer samples of your product?

If not, then put #2 to work! Instead of product samples, offer samples of your personality! Get out into the public. Mix with your prospects and share your excitement and enthusiasm with the people in your local area. If you feel like you don’t have a bubbly personality, then take a friend with you. Or, you could hire someone to do it for you.

Social networking is commonplace on the Internet for promoting online businesses, but often forgotten as a most effective offline business marketing strategy. Start putting it to maximum effect in your business today!