3 Sources Where Your Small Business Can Get A Loan Today – Yes, Even Your Small Business
Now, when we talk about small business loans, we mean just that – small business loans. We are not talking about a $1 million loan to purchase some commercial real estate or $500,000 to buy some investment property. We are not talking about a $3 million credit line just to show capital on a balance sheet. And, we are not talking about a $250,000 equipment loan for a regional construction company.We are talking about true small business credit – loans under $150,000. Capital amounts that the 22 million small businesses in this country could use at some point in time for working capital, to renovate their location, purchase inventory, marketing, meeting payroll, developing new products or to simply have the capital on hand to acquire and satisfy customers (what business is really about).But, we have heard ad nauseam that banks are just not lending to small businesses – claiming there is too much risk in smaller firms. So, many small companies are not even applying for credit anymore out of fear of being turned down. And, as a result, we are seeing small businesses not reach for or obtaining their full potential – essentially letting profitable opportunities slip by.However, just because banks don’t see the true value of small companies, that does not mean that others don’t – others who are willing to do what they can to fund your business.The Benefits Of Small BusinessThere are some 22 million small businesses in the U.S. and they are quite the power house.According to the Small Business and Entrepreneurship Council, small businesses;Provide two-thirds of all new jobs in the nation.
Contribute almost 50% to our Gross Domestic Product.
Account for 97.8% of all exports. And,
Create 16.5% more innovation than larger firms.All items that help make America the country that it is.But, if banks think these firms are too risky, that is OK, because given the entrepreneurial spirit in this country, other financing firms (lenders) are stepping up to cover the small business loans that banks and traditional lenders will not. So now, you don’t have to be afraid of being turned down anymore.3 Sources That Will Fund Your Small Business1) SBA Loans: Sure, SBA loans have to go through banks – which are not lending. However, banks might not be lending for their own loan portfolios but they are lending under the SBA’s programs.Did you know that over the last three years, the SBA has been growing the number and dollar amount of the under $150,000 loans they back – even given that banks (who originate these products) are not approving them?From the latest SBA data;In 2012, the SBA guaranteed 14,520 under $150,000 loans for a total loan amount of over $802 million. In 2014 (two years later), the SBA increase the number of these loans to 16,043 with a total volume of $955 million – with a down year in 2013.Part of this increase is the fact that the SBA has reduced or waived its fees on these smaller loans. From the SBA’s website:”The SBA determined to eliminate the fees on loans of $150,000 or less after conducting a review of the 7(a) Loan Program. As a result, a small business owner obtaining a $150,000 loan will save more than $2,500.”Bottom line – the SBA is actually doing what it can to fund small businesses in this country – including yours.Programs to look for:The 7(a) program offers nearly any business loan under the sun from working capital to commercial real estate.The CDC/504 program only focuses on real estate and equipment lending. But, if your business needs either one of these under the $150,000 amount – including renovating your location – then by all means as this is a great program.And, the express program – which is capped at $350,000 – is a great program. Quick and easy access to needed capital.Now, for some quick benefits of SBA loans. The SBA’s guarantee does several things:By capping interest rates and fees, these products tend to be cheaper in the long-run for the borrower.
Lower down payment requirements – meaning that you can keep more of your own money in your own business.
Long loan terms also allow payments on these facilities to be more affordable. Just image which loan payment would be easier to make on a $100,000 loan at 10% interest. A bank may require the loan to be repaid in 36 months – making the monthly payment $3,227. While the SBA could extend the term to 6 years (72 months) making their monthly payment $1,853. The lower the payment amount, the easier it is to cover with current cash flow, making the overall loan less risky and easier to get approved.
Express programs can significantly speed up funding as some traditional business loans can take months to close while those under the express programs can be funded in the matter of weeks.If you have been fearful of applying for a SBA loan, knock it off and go apply!2) Alternative Lending: Alternative loans (non-bank loans) from factoring and business cash advances to revenue based loans have really picked up steam over the last 5 plus years.These lenders are focused solely on small businesses and as such have created products that allow them to approve more loans to companies that traditional lenders will not touch – by not using old and outdated underwriting standards but by focusing more on technology.Most alternative lenders – especially the leaders in this space – have seen their loan volumes (thus their approval rates) – increase by 150% or more year after year.A couple of examples: According to the SBA, their largest lender – Wells Fargo – approved and funded just over $266 million in small business financing last year. However, OnDeck Capital, a leading revenue based lender, nearly doubled that amount over the same period. Further, CAN Capital claims to have funded over $800 million in 2013 – far out pacing even the top 100 SBA lenders combined.While these loans are high-cost loans, they offer several benefits like approvals when other lenders say “no” as well as quick (in the matter of days) funding.3) New Players: Peer-to-peer lending is know for its ability to match regular people who have extra money to lend with regular people who need to borrow. These loans are typically personal loans that can be used for nearly any purpose – like starting or growing a small business.However, just this year, Lending Club – the leader in P2P lending – has begun to offer a true small business loan product where businesses can borrower anywhere from $15,000 to $100,000 at low rates. And, their approval and funding is not based on some standard cookie cutter formula that most businesses just do not meet but comes from regular people who listen to your story and decide for themselves the merit of your financing request.ConclusionCapital for your business is still available.Don’t always believe what you hear. Sure, small business lending is tight – when compared to the hey days of the mid-2000s. But, that does not mean that you still cannot get the funding your small business needs to start, grow and succeed.To truly know if your company is qualified for business loan all you have to do is one thing – and that is to apply. But, if you don’t apply, you will never know for sure and then all you can do is reflect on how far your business COULD have gone.
Last Minute Travel Plans – Any Ideas?
Phew! That’s the word most people utter or gasp when trying to arrange everything on a last minute travel plan. Haywire would be the right word. Is there any house in the real world which has properly placed items, which you can easily find, when you want them?The answer would be in the negative, because nobody is responsible these days and just keep on misplacing the knife or screwdriver and what not. They become exasperated when it is not available at the most needed moment. When a last minute travel plan jumps right into your face, try not to panic- this is the first requirement not to muddle up things.When you are confused, your brain will not work clearly and you may forget many important papers or things. Relax and sit for a few moments- concentrate and try to make a list of what all things you may want to take.Take a convenient bag or suitcase which has many openings to keep your required items like toothbrush, toothpaste, soap, deodorant, medicines [if you are having any], towels, undergarments [plenty, if you do not have the option to wash] etc;.A laptop is a necessity these days. EZAir is a device which will help transfer the graphics from a laptop to an HD monitor. There are no wires involved and presentations during business trips can be done very easily. There is also an extended monitor. Avail of the EZair coupon to get discounts.If anybody has not booked a ticket for travel, telephone an agency to do so. There are many with high quality service and they will get you one, even though you may have to pay through the roof to get one just hours before travel.Take water in a bottle because pure water is had to come by. Play it safe. Most importantly, turn off the gas knob, the electricity etc; to avoid accidents. Remove cable connections and unplug the television, computer, and the refrigerator [if you plan to be away for more than four days].Contact your nearest neighbors if they are trustworthy and ask them to keep an eye on your house or apartment. Ask the milkman and the newspaper agent not to continue service until further notice. Tell the local police of your trip and request them to keep a watch during their rounds. Double check all locked doors and windows, if possible have a door alarm fixed [earlier though]. Check the ticket once more and have a worry free happy journey.A last minute journey is always a pain in the neck, but if you are organized in your house, it will help you to pack instantly without any hassles as you would know where to find what.Emergency situations can spring any moment, so being organized and arranging clothes in your wardrobe would mean less clutter and valuable time will not be wasted trying to find a dress or some other item. Most people do not arrange their clothes and just shove it in. An organized person will not be upset at sudden turn of events, so let us all try to be so. Have a nice trip and enjoy without any worry.
What Can Marketing Make You?
When it comes to business, spending money on things with an unpromised, unspecified or uncertain return is a tough pill to swallow. Most business owners budget very carefully – they want to know what they’re spending their money on and why; how their money is working for them. Marketing is one of those gray areas where, especially for the not-totally-new-school business owner, it can be difficult to grasp the concept of allocating large amounts of dollars toward something you only hope will work in the end.That’s why a business mindset of scarcity is much more common than one of abundance – because when the results are unpredictable, it’s easier to just stick with what you’ve got. But instead of asking, “what will marketing cost me?” more business owners are exploring the possibilities that emerge when they ask, “what will marketing make me?” And I’m here to tell you.The reason why more companies (and small businesses in particular) are opening up their minds – and their wallets – to a new way of thinking is because they have most likely found at least one of the following five things to be true:1. Marketing Makes You MoneySure, marketing costs money. But it’s not supposed to be a blindfolded spend frenzy. If you know enough about marketing to test the waters with some high-value organic techniques that will get you a lot of mileage, then go for it, by all means. This will help inform your strategy down the road so that you have an idea of the areas where you need help, and so that you can reasonably predict your marketing expenditure.However, if you seek the advice of a professional, the right marketer will set your mind at ease by not expecting you to dump huge amounts of money into their accounts up front and by explaining each strategy they propose, as well as why they’re priced the way they are. Then they’ll put together a quote which should not only align with your goals, but illustrate the anticipated return in proportion to the suggested spend.Let’s face it, ‘marketing’ is a broad term but, in essence, the purpose of any marketing strategy is to get you found. Your product or service will only make you money if it is used by people, and awareness precedes use, wouldn’t you say? Whether you employ digital marketing methods such as building a great website, blogging, email marketing, social media, and paid ads; or go old-school with direct mail, circular ads, door-to-door advertising, and cold-calling, the intent is the same: get people to buy from you.Marketing, when done right, should bring opportunities to your sales force, traffic to your website, and rings to your phone. Ask yourself: if you don’t have a website, then how are you getting found? How long will your current strategy be sustainable? Will it help you grow? If you have a website but it’s not bringing you business, then it isn’t working. Word of mouth success is wonderful, but do you have a plan in place for customer retention and acquisition? The answer shouldn’t be “how much will marketing cost me?” but rather, “how much do I want to make and how can marketing get me there?”2. Marketing Makes You ReputableHow many times have you visited an establishment based on a word-of-mouth recommendation from a friend? Probably quite a few. Ever been somewhere really fantastic that you wouldn’t have otherwise selected if not for a positive review? Exactly! It doesn’t matter if people love your business if they’re not spreading the word, and a digital presence makes it much easier for your great reviews to be found by the masses. Publishing testimonials and success stories on your website is a wonderful way to market yourself and show prospects that they can trust your brand just like other customers have. Furthermore, getting yourself listed on well-known and highly trafficked directory sites makes it easy for people to do their homework before they buy – which is an integral part of the customer satisfaction experience.3. Marketing Makes You CredibleNot to be confused with reputation, credibility is a major factor in many buyers’ decisions. How do you distinguish yourself from competitors? What makes you more of an expert on your particular field or subject area? What sets your product apart? Well, don’t tell me – tell the world! You need a platform from which you can showcase your skills, expertise, or must-have product.Blogging and social media marketing are excellent ways to use your own unique voice to educate buyers and demonstrate thought leadership without always delivering an overtly hard sell. People like information, and they’re more likely to trust you if the information you provide is relevant to their problems, needs and experiences in such a way that makes them want to come back and keep getting information from you (instead of just hearing your sales pitch and then leaving to continue shopping around elsewhere). This is especially vital for less well-known companies that don’t have as much publicized feedback or presence. In order to stand up against your competitors, you must demonstrate credibility.4. Marketing Makes You AccessibleIt’s one thing to have a website. But if you’re just starting out or if no one knows your name, it’s not enough to just have a website. How are you driving traffic to that website? Waiting and hoping are not measurable techniques that deliver results. You need a strategy, and you need SEO.Maybe you’ve heard of search engine optimization (surely you’ve used that little thing called Google). Basically, SEO is tied into the design and function of your website so that search engines (like Google) can display your content to people who are looking for related information. If your website isn’t optimized, then it’s just sitting there. Sure, someone can type your URL and probably even search for your business name on Google – if they know your name. But if you’ve got a niche product or service or you’re brand new to an area, no one will know to do that. You need your company or product to pop up in the search results whenever someone types in “Philadelphia wedding photographer,” or “men’s custom tailored vintage suits” (you get the idea).5. Marketing Makes You AttractiveThis should be self-explanatory. Let’s be honest, we do tend to judge books by their covers, and we are (even if ever so slightly) biased toward companies – and people – who present themselves well. Marketing and branding are all around you. If you’re anything like me, you’re a sucker for the pretty packaging in the cosmetics aisle at Target (or the highly visible promise of a product that does it all, is portable, and comes with a warranty).The same goes for your brand identity, whether you’re a large organization or a music teacher! The way you present yourself to the masses will play an important role in the amount of opportunity that converts to business. Online presence is becoming so important that it’s almost unacceptable to have a sub-par website. For people who still use business cards (and who aren’t constrained by corporate marketing guidelines), being memorable and capturing someone’s attention with a 3.5-inch piece of paper requires some creativity. What’s on the cover is not always a measure of what’s inside, but the cover should at least make someone want to open the book. The way your business appears to others is a reflection of the way your business will eventually appear to your banker.Lack of Marketing Costs You EverythingShort of quoting JFK for emphasis, there’s really no other way I can say it (you got it, right? Please tell me you got it). Don’t wait around doing cost analysis and pinching pennies. While you’re doing that, your competition is outperforming you. A marketing strategy doesn’t have to cost thousands. Figure out what you can spend and shop around. Start small: any improvement is a good investment. You can always scale up when your initial investment pays off.Of course, marketing isn’t the only ingredient for success. You should also deliver great customer service, quality, value, and purpose. Marketing attracts customers, but it’s your responsibility to keep them around. Remember – the internet provides complete freedom of speech. Once you build a presence, it will be just as easy for people to find negative feedback about you if it exists. In this way, let a marketing strategy hold you accountable to your business for stepping up your game in every way. You owe it to your company, and perhaps even your livelihood.So, in short, become easy to find, add content that makes people glad they found you, let the world know how satisfied your customers are, and present your business in the most appealing way possible and you’ll see why a focused marketing strategy pays off more than sticking to the status quo. You and your business can become these five things and more – just embrace it!