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

In a recent article from the Wall Street Journal, research from the Fed was cited indicating that the negative effects of the recession, the worst since the two recessions in the early 80’s, had a disproportionate impact on smaller businesses (in this case, businesses with 50 or fewer employees). These businesses were cited as experiencing an approximately 5-10% worse drop in job creation, paired with a slowdown on the creation of new businesses by 25%. Financing constraints pointed to as one of the root causes of small business stagnation. The credit crunch which accompanied the recession has been cited as one of the causes of the lack of growth coming from the small business sector, with former SBA chief Karen Mills also pointing to lack of loan accessibility as an adverse condition for small businesses. Without reliable access to financing, businesses have a hard time expanding beyond the constraints imposed by their cash flows and ability to borrow from friends and family or out of personal

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

While there are many things that differ from industry to industry, and even from business to business, there are a few things that remain constant for every business owner. One of these is the need for a formal business plan. A business plan is required for everything from applying for a loan from a bank to recruiting business partners and top level employees, so it pays to have one that is both up to date and up to industry standards at all times. This isn’t a one time thing either. As your business grows and the markets you are in change, you are going to need to reflect this in your business plan with edits, additions and omissions. Something as simple as one key piece of information that is either wrong or outdated can make your business plan look bad no matter how clean the rest of it is, so keeping this document tuned up and ready to be looked at is a wise strategic

Navigating the financial landscape that comes with running a small business is often difficult, and it’s made even more tough by the presence of certain potholes and mirages. One common scam that small business owners should be aware of is the grant scam. How does a grant scam work? This type of scam is kept alive by a simple misdirection. Business owners will either stumble across or otherwise be made aware of a grant that their business is able to apply for, which, should they receive it, will give them what essentially amounts to free money. This should be the first logical red flag, but many business owners are willing to take the existence of grant programs at face value as fact. Once the business owners are sold on their grant applications, the next phase of the scam kicks in. You will be sold (or attempt to be sold) an expensive audit of your business plan, additional help filing your request, a one time fee, or

Let’s face it, we love our employees, but when cash flows are tight, it can be tough to find extra ways to show them how much we appreciate them. Fortunately, it’s often the thought that counts when it comes to providing employees with extra on the job benefits, and with a little creativity and a positive attitude, you can make a little budget go a long way. Some of the benefits of providing additional fun for your employees are more dedication to your company, as well as potentially more hours spent on the job bouncing ideas off of each other. This can lead to much more creative solutions coming from your team, as well as a better atmosphere in the office for communication. Many start ups and high growth companies make it a point to have many employee perks, and seeing as how a large number of them do quite well, it’s not a bad idea to inject the same level of excitement into your

For some small business owners, taking care of their business is such a high priority that at times they can forget to take better care of themselves. Where this can become particularly evident is in the dietary choices that they make. When pressed for time, it can be tempting and all too easy to simply order takeout, or grab a doughnut off of a snack tray, but this is not going to do you any favors in the long run. Eating a healthy and balanced diet has benefits that go far beyond your waistline; it can improve your energy and mood and even help you live longer. This guide isn’t going to prescribe you with a miracle diet, rather provide you with some suggestions that you can use to make better choices and work with your on the go lifestyle. Switch to whole grains. Whenever possible, go for whole grain products as opposed to bleached flour. While some people prefer the texture and flavor of white

The “credit crunch” that has seen many traditional small business lending programs increase their underwriting criteria means that for many business owners, bad credit business loans are no longer a reliable or readily available option for financing their expansion. One of the biggest obstacles surrounding their applications is a lack of acceptable collateral to use as backing for the funding issued by their banks of choice. Collateral can take the form of a cash percentage of the business loan, a piece or multiple pieces of valuable equipment, such as a truck, a bulldozer or a specialty oven, or a piece of property such as a business or residential location. The problem is that many business owners either don’t have sufficient collateral to match the amounts they are looking for, or if they do, don’t feel comfortable signing an agreement with the possibility that they could lose their assets in a worst case scenario. A lot don’t know that there are alternatives that exist that can

While the last bit of nippy weather is finally fading away, small business owners everywhere are waking up to the promise of Spring, and a brand new busy season for many industries. Even as volume picks up and orders for seasonal products and services start to roll in, it can be helpful to get you and your employees energized and in a different frame of mind in order to make the most of the new season. An overhaul of your company culture isn’t necessarily in order, but doing something to celebrate the season and inject a sense of excitement into the office can be a good idea, especially if there have been morale issues on your team due to slow business, the cold, or both. Here are three simple ideas for greeting the Spring season that any small business owner can do. Try a classic activity, such as hosting a company picnic. Sure it’s cliche, but a company picnic is both simple to organize, low cost,

Following debates surrounding the federal minimum wage, small business owners are now in the center of yet another struggle regarding a proposed change in the way they must pay their employees. As reported by smallbiztrends.com, President Obama signed an executive order last month calling for an increase in the threshold of earnings over which employees become eligible for overtime pay. In plain English, the law would raise the threshold from the current $445 per week mark to somewhere around a suggested $640 and include more white collar and managerial employees in the group who would qualify for overtime pay. The rationale behind the law is to give back to those who work hard for the economy. As corporate America has begun to make more profit, the idea that these revenues should be shared with the employees who put in extra hours to make them seems like it makes a lot of sense. However, many warn that small businesses will become unintended collateral damage. While profitable corporations

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