When it comes to seeking financing, it can sometimes be difficult to know when is a good time to look for it and when it is more prudent to wait. Aside from a business owner’s own plans and the strength of their cash flows, macro factors such as the economy and season also figure in to deciding when  is a strong time to seek financing and when it might be better to wait for a more opportune moment. With that being said, current economic conditions point to now as a time for small businesses to grow. In an article which appeared on Smallbiztrends.com, three compelling reasons were introduced as to why now is the right time for small business owners to seek credit, including historically low interest rates, improving approval statistics and the impending end of year which sees banks and businesses alike looking to work towards improving their final numbers. What are your bank statements telling you about your business? In order to determine if

As reported by Yahoo Small Business, the WAIN Street monthly business default index reports a decrease in default rate for small business loans from the first half of the year by .11 percent for a rate of 6.98 percent, with rates at pre-recession levels. Additionally, the index revealed that the lowest default rates were concentrated around the smallest of the small businesses included in the index, with a 4.05 percent default rate among sole proprietors and 5.65 percent among those with fewer than 20 employees. With strong credit performance coming from these businesses, it bodes well for the growth of their credit options going into the next few quarters. The smallest SMBs have had some of the hardest times applying for financing from traditional banks. The fact that they are some of the strongest performers when it comes to paying back debt obligations makes this fact even more pronounced, however, due to excessive costs related to underwriting small business loans that do not slide with the

When your business’s website isn’t creating engagement, it can be a major problem. The more bounced traffic you get, the more it signals to search engines that your content isn’t what your visitors were looking for, which can push it down in search results. Apart from that, if you can’t get visitors to stick around on your website, that doesn’t bode well for your ability to create conversions and spread the message of your business through your copy. Building increased engagement with your website may be something that you want to do in an expedited manner, for example, if you notice that you are quickly losing ground to a competitor in a search results page and want to buff your time on site metric. Design work can quickly add up, depending on the scope of the project that you are interested in pursuing and the time frame that you need things done by, so at times it can be helpful to have a readily available

In  an article that appeared on the Forbes website, Lendio CEO Brock Blake pointed to the UK’s adoption of rules wherein banks will be made to refer businesses that they decline for loans to alternative lenders, musing that a similar program might have beneficial effects on the US economy. Currently while lending statistics have been slowly rising, they are still below pre-recession levels and business owners who are in the smallest size category have not seen many gains at all, with around a 90% rejection rate according to the article. If you reject an application, do you still have a duty to direct them to funding? That seems to be the stance of the UK government. Rather than simply reject an application, informing the business owners of other possible options that they may not have known they had can increase the number of businesses that actually get the capital they have been looking for by a dramatic margin. Apart from the fact that businesses may still need

A business’s employees are one if its essential resources. Just like working capital, inventory and solid management techniques, a business that has grown beyond a single person relies on employees to continue functioning and growing. With all the pressures of managing a business and many competing financial priorities, making payroll on time can sometimes become an issue, for instance when a past due invoice means that your business has funds coming in the door, just not when you need them. Fast access to funding is a potential solution. Alternative capital, also known as merchant cash advance, is a financing option that small business owners can access rapidly even if they have bad credit or other derogatory financial history. This financing can be applied for and accessed in as little as a 48 hour period, making it a strong option for bridging gaps in cash flow. While the cost can be higher than a traditional loan, the expedited nature of the underwriting process and the potential to

  When a business must grow through bad credit, it is important to allocate all financing in as directed and strategic a manner possible. Putting financing towards projects that don’t have potential to recoup value over time can put a business in a sticky situation in the event that a variable in their strategy was miscalculated or anticipated demand for a product or service is below what was predicted. Added value to a business can take different forms, from more loyal. and highly trained employees, to more owned equipment or an owned commercial location. When allocating cash flows or planning on putting alternative capital to work, small business owners should think about the potential value their business will gain. Long term value versus short term growth. Long term value for small businesses comes in the form of assets that retain their value while in turn contributing to a small business’s ability to generate revenues.  In contrast, some investments, such as increased marketing through banner ads, can create

Bad credit business loan alternatives continue to grow in popularity, as credit has largely remained tight for small businesses on the part of traditional lenders. Using merchant cash advance to keep a business growing through a period of bad credit issues or as bridge financing while growing into traditional loan eligibility are both common applications of this type of funding, which due to its expedited underwriting speed can be used in a pinch when other funding sources would be too slow. Even so, business owners should be aware of what goes into an application and what will effect how much they can qualify for. Bank statements are an important part of an application. Knowing what yours look like can help create a better picture of what you can qualify for. Generally, business owners will need to submit their three most recent months of bank statements for their primary business banking account. The number of deposits, frequency and size all play a part in determining the

Alternatives to small business loans have grown both in popularity and exposure over the last few years, primarily because of a lack of other financing options for many small businesses that don’t meet the heightened credit requirements many banks adopted in response to the Great Recession. While bank lending to small businesses has ostensibly thawed, it is still not enough for the majority of small business owners, many of whom are either too small, don’t possess enough collateral, or are too new to successfully approach a bank. Alternative capital attempts to fill this gap in the credit market with financing options that are both expedited and available to businesses with financial histories that would disqualify them from a bank loan. Business owners should view alternative capital as part of their road to business loan eligibility. While alternative capital has higher costs associated with it than bank loans, the expedience with which they can be accessed as well as their wide availability make them extremely useful in

  In a press release from CDC Loan Experts, three strong reasons were put forward for business owners owning their storefronts. Firstly, purchasing a piece of commercial real estate is a long term investment that can be turned around for profit later, rented out, or kept as a business location without the obligation of rent. Secondary to this is the fact that payments for rent may be contingent on market prices and therefore subject to fluctuation. Businesses that would be forced to move in the event of a rent increase will pay the same payment for the property they are purchasing, making buying a good strategy for those looking to stay in a location for the long term. Lastly, a purchase payment may be less expensive than rent would be in the first place, with the bonus of eventually owning the piece of property. Should you invest in purchasing your location? If business owners are planing on staying in their physical location for the next ten

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