Tag Archives: small business loans

Figure Out What You Need To Help Plan Your Budget

Business FundingIt may sound very basic and simple, but first thing’s first. It is important to chart out your budget plan in an orderly manner to make life easy.

If you’re somebody who prefers doing things the traditional way then gather a couple of pens and notebooks for you to start writing a detailed your budget requirements in a detailed manner.

However, technology has undoubtedly made life easy for many in various aspects and a software like Microsoft Excel can be a user-friendly option. In fact, it may be a tad bit more useful than going forward the traditional way since saving documents on a gadget that is difficult to misplace- such as your laptop or computer- can come in handy.

However, the phrase “to each their own” does come into play here so it is important to choose a method that helps with your budgeting in the way that seems most convenient to you.

Make A List Of Your Costs/ Expenses

Once you’re ready with your tools, list down every aspect of running a business that needs investment, even if it’s something as basic or small as stationery. Prioritizing them from most important to most general can be a good idea. Some costs can be termed assets while the others can be called expenses.

Let’s have a look at your assets: These can include costs like real estate, furniture, gadgets, etc. Your assets aren’t usually tax deductible.

Let’s now take a look at what may be your expenses: Costs like payroll and rent/lease will fall under this category and are tax deductible.

Other costs may include those for your website, marketing , design, etc. that is a good idea to include in a separate list.

Figure Out Your Fixed Costs

Fixed costs are those that do not change on a regular basis because they do not depend on production and sales volumes. Things like rent or lease, payroll expenses, telecommunication expenses, advertising and marketing expenses, insurance, payment of subscriptions, etc.

Figure Out What Your Variable Costs Are

Quite the opposite of fixed costs, variable costs are those that fluctuate as per an increase or decrease in your levels of production. The best example of a variable cost is the raw materials that one purchases to run a business. Apart from that, a few other examples include sales commissions, electricity, direct labour costs (employees who work in the production unit and not administration or other departments of a company).

Monthly Revenue And Break-Even Point

Every business owner looks at earning a profit and if one doesn’t determine his/her budget and expenses appropriately then it can be difficult to achieve what one is looking for. After figuring out your costs, the next step is to estimate your monthly revenue and ROI in order for you to understand when you will reach a point when you start earning a profit. By figuring out your budget and investing it in the right areas, you may be able to reach your break-even point as per your estimation and desire.

Where Can You Get The Funds That You’re Looking For?

It is known that most start-up business owners have around $50000 or less in their bank account, which may or may not be enough to help fund their business. In case it isn’t, applying for a loan is the best way to go about it.

However, it may be a little difficult for an SME to get a small business loan from a bank which is why they can choose to opt for online business loans. Many online lenders offer amounts that are good enough to cover all your expenses and getting a loan from them is way easier than getting one from a traditional lender.

To start with, many of them do not consider bad credit as a reason to deny individuals a chance of getting funded by them. The requirement for collaterals is also not a part of their eligibility criteria which is a huge plus point considering the fact that most traditional lenders do ask for some kind of security in order to provide you with the financial assistance that you need.

However, the rates of interest of such loans may be higher that what may be offered by a bank, but the chances of getting approved and fast is also way higher.

By taking into account the factors listed above, you can plan your budget requirement in a satisfactory manner and understand what investments are most crucial for your business, at least in the beginning. For a start-up, you may want to consider putting a halt on fancy decorative items or other things that aren’t essential to avoid taking a bigger risk than is already involved in starting your business, but without a doubt, the decision is yours.

Take out a few days to figure out your costs and revenue and you will undoubtedly be good to go!

When to Take a Loan While Running your Business

Reasons to Secure a Business Loan

Every business sees phases of profits and losses during its tenure. At times, we may face financial trouble but may not want to completely shut down because of our belief that it may do well further down the line. Even during times when our business does exceptionally well, we may want to borrow money in order to scale up.


Here are some of the reasons why people apply for business loans:

While Facing a Trying Time, Financially

While running a business, you may come across a time when you feel the need to secure extra funding while facing a depreciation in your financial graph and may not have the amount of money that you may need.  A business loan can help you get through your rough patch by providing you with the funds that you need to cater to the basic expenses of your business. For example, electricity costs, rent, salaries, etc. can be covered with the help of a business loan.

To Expand or Level Up In Your Business

When a business does well, wanting to take things a step further is natural. No businessman ever stops trying to grow and an expansion is always part of the pipeline. In situations where one’s company sees a lot of scope, one may not want to lose out but may not have the funds to scale up. Business loans help owners expand; be it to open a new branch, shift to a better location or renovate their current workplace. Nobody should lose out on an opportunity to grow and business loan lenders online ensure that even owners of small businesses aren’t denied that opportunity.

Seeking funds for expansion can take place due to the following reasons:

  • Hiring new people: Investing in an employee undoubtedly costs a lot. With the need to keep one’s team happy with a juicy salary and added benefits entails a fair amount of money and the opening of new positions in the firm adds to that. Compromising on hiring the best of the best shouldn’t be an option when you’re already putting in so much money. If you don’t have enough to employ the best then taking a business loan can certainly be beneficial and can help you hire the right professional for your firm, thus adding value to your company.
  • Buying new equipment: New inventions in technology and equipment never die because everyone is always looking at making things easier for humankind. One wants equipment that can serve the purpose it’s been purchased for in very little time. Of course, one can make do with equipment that aren’t that efficient, but for the best outcome it is important to invest in the right one in order to improve quality and reduce time. A business loan can help you invest in the right kind of equipment for your firm and help increase productivity and efficiency.

A business loan can certainly help one in many different ways and can cater to the needs of different business owners. Be it expansion or a slowdown in your business, these loans are meant to help your firm succeed in the long run and applying for one after a thorough research about your long term goals and understanding why you may need it can undoubtedly help you.

Business Loans for Human Resource Development

Business Loans for Human Resource Development – Great Intangible Returns for the Long Run

Businesses use debt in many ways in today’s scenario. It is very simple and common for a business owner or another authorized individual to go out there to the market or just browse online and find a loan for equipment purchase, rental payments, upgrades, new store openings and a lot of other such projects or even simply added liquid capital. However, what a lot of business owners tend to overlook, might just be the one that could provide top-notch returns on every dime invested! We here, are referring to Human Resource Development.

What is Human Resource Development?

Human Resource Development, or simply HRD in simplified business terminology, can be explained as a planned approach to enhance competencies in individuals and groups at a workplace/organization through learning activities. The aim of any initiative within HRD, is to ultimately ensure progress of the employees (the Human Resource of an organization) in a way that is useful to the business and individuals too – at a professional level.

Examples of HRD activities/initiatives may include educational programs, team building activities, fitness programs, time management training, support for qualifications and certifications, career guidance, cross-training and so on. HRD can be most effective when planned right and executed as per plans, that and be reviewed periodically keeping the progress in mind.

A great example we could give you from a past borrower of ours is, of a company that works as a logistics consultancy firm (name undisclosed as requested). The start-up company, just a few months old, took wonderful advantage of the fact that we ask no questions about where our clients invest until the time that they choose to leave a feedback. They used their loan from us at Business Capital USA to train their front line sales team in negotiation from a very reputable but equally expensive consultancy service. In a few months, the manager dealing with us was so happy about his team having cracked a lot of deals at amazing prices, that it drove him to call our team to specially thank us, which is one of the biggest things that keeps us as lenders, motivated to do our jobs well.

Who in an Organization Plans & Executes HRD?

Typically, larger organizations tend to benefit from a team dedicated towards planning and executing HRD. Smaller businesses might integrate this role with HR management, training management or the general management of the organization. We have served a company where the business owner himself did the task, possibly without even knowing that what she’s doing, is known in today’s business world as HRD (we say this because we later introduced her to the term after hearing about the experience and benefit her business had, through the initiative).

Why Investing in HRD can make your Money Grow Faster than the Interest Rate of your Loan?

Generally, it is safe to state that the goal of taking a business loan is usually to be able to generate an output from the money borrowed that is higher in value than the loan amount plus the interest that accrues from it. In simpler terms, a stakeholder in a business would like to see the loan money directly or indirectly grow into an amount larger than the loan’s payback itself.

Unlike equipment, liquid cash capital, refurbishment and other traditional investments of loans, HRD is an intangible investment. This is perhaps the reason why it often gets overlooked. However, the monetary and non-monetary gains that an organization can get out of having better skilled employees who work even better as a team, stay fit (hence requiring less leaves due to sickness), manage time efficiently and are greater at selling or producing what they are intended to, can be remarkably huge.

In our example from the past where the logistics company managed to bag multiple great deals thanks to a training in negotiation, if we assume that a training came at a cost of $2,000 which was financed by a loan which came at a total cost of $2500 and it resulted in an average of $500 increase in each negotiated contract value, in a matter of just 5 such sales, the loan amount was covered and every sale thereafter, was simply profit from the loan for the business, virtually coming out of the thin air! This is a scenario that is well plausible in today’s business environment and a lot of organizations of all sizes and industries are today able to utilize this and reap wonderful, lasting benefits.

 Further Reading

How to Provide the Best Professional Development Opportunities for Your Team – Bonus.ly

Thanksgiving Marketing Opportunities for Small Businesses

Celebrations from Halloween, Thanksgiving, and Black Friday to Christmas mark the busiest shopping season. Thanksgiving offers remarkable opportunities for small businesses to bolster their marketing strategies. During this period, people have increased gratitude for life’s blessings. They also spend more money on retail. As a small business owner, you must create irresistible deals and discounts. This will help you compete in this competitive holiday season. It’s the joyous festive season. We are providing the ultimate guide to Thanksgiving marketing ideas.

Get ready for this great shopping event. Use tips and tactics. Think of all the innovative things you can do. This will help you boost your Thanksgiving sales and enhance your brand image.

Thanks giving day

Thanksgiving Marketing Ideas for Business Owners

Pre-Thanksgiving thank you cards for customers

A little gesture of appreciation for your customers can convey long-term customer dedication. So, express gratitude by sending out thank-you cards to all your dearest customers. Even handing out a thank-you card to your soon-to-be customers can influence your business sales. But be authentic by not being overly promotional.

Donate to charitable trusts

Contributing to others may help you gain increased business revenues. Charitable organizations go a long way toward doing so. Offering a small part of your Thanksgiving revenues to charities pushes your business sales up, apart from intensifying your business reputation. A kind promotion can bring your business into the limelight. It can attract more customers.

Offer small rewards

The gift approach is an excellent way to boost your business sales. Offering assured rewards for a definite purchase amount excites customers to buy more. Besides, they feel pleased. However, if you want your brand to reach more people, remember to include your company name or logo on or with your giveaways.

Lure your customers by running contests

You can attract many customers by running a Thanksgiving-themed contest in your store. You can also run a contest on social media platforms like Facebook and Instagram. This can increase your business’s revenue. Involve and connect with your customers or fans by holding exciting and rewarding contests. Give the competition winners their prizes. Share the enthusiasm for your business on your pages. This makes your business more accessible, and thus you get more followers, spreading your brand.

Business Loans for Thanksgiving Marketing Ideas

Optimizing your business promotion strategy to boost profits is essential. However, it is also understandable that you may be short on cash. As a small business owner, you may have difficulty financing your marketing efforts. If you need business financing for holiday marketing expenses, consider Thanksgiving Day Special Business Loans. There are plenty of holiday loan lenders in the lending marketplace. You can apply for small business loans from banks or get a merchant cash advance from direct business lenders online. But applying for working capital online is quick, flexible, easy, and convenient. It requires no collateral and no credit checks. Thus, get an unsecured cash advance to endorse your small business during Thanksgiving.

5 Easy Steps To Getting A Business Loan

Like any other small business owner, you want to see your business prosper. Besides, wise and timely business decisions are imperative to increase your business capacity and generate profit. It is understandable that any business, irrespective of the type of industry, is prone to fluctuations. Occasionally, your business may be in surplus and you want to reinvest in your business by hiring additional staff, expand to another location, add a new service or product, and grab a money-spinning opportunity. It may also be that your business needs extra money to get the necessary equipment repairs done, buy new equipment, pay for employees, or deal with any other day-to-day costs. However, to stock up your resources, you may need money from an external source, which is usually challenging. If you are already exploring business funding options, then you may consider a business cash advances from direct lenders online.

What is a Business cash advance? 

Business Cash Advance or Merchant Cash Advance is a straightforward or reliable funding alternative to business loans from banks.  It is unsecured financing against future sales of your business. With a simple online application and approval in minutes, you can receive up to $500,000 for any business purpose in as little as one business day. Thus, it offers quick access to small business financing with reasonable requirements.

Business Loan

Here’s how to obtain a business loan/merchant cash advance in few simple and easy steps:

1) Determine the need for a business loan

There are several reasons to avail small business financing. It may be for growing your business, deal with daily business spending, or merely having a secure financial cushion. However, you have to decide what exact business purpose you need money.

2) Choose the right type of loan for your small business

You have a vast choice when it comes to choosing the loan type, as each funding option is designed specifically to suit individual business requirements. Accordingly, there are women’s business cash advance, business working capital, equipment financing, business invoice financing, business expansion loan, etc.

3) Deal with the genuine cash advance loans lender

You can either opt for conventional lenders or alternative online lenders. However, financing a small business is increasingly becoming difficult given the stringent lending standards by traditional lenders such as banks and credit unions. Whereas, a business cash advance is the best financial option if you lack assets to pledge, want speedy approval decision, need funds quickly, and desire convenient repayments.

4) Check whether you qualify for a business cash advance

Realize that, getting approved for bank loans needs an outstanding credit score and collateral. However, eligibility criteria for the business cash advance are relatively simple and easy. With at least 1 year in business and a minimum of $15,000 in monthly revenue or steady monthly cash flow, you can improve your chances of qualifying for funds even without collateral and excellent credit.

5) Submit your documents and sign the contract

Subsequent to narrowing down your funding option, apply for a suitable loan that suits your business needs. Depending on the type of lender, you may be asked for various document combinations. However, if you are considering a merchant cash advance, you may be asked for bank statements of the past three months, lease agreement or landlord contact information, and credit card transaction processing statements of the past three months. Finally, read all the terms and conditions carefully, understand them clearly and then sign the loan agreement.

Explore when and why you should consider Small Business Loans.

Small business needs improvements occasionally and it also true that it takes money to make money. Hence, depending upon the type of industry, a small business may involve working capital to reinvest in business by buying equipment, covering marketing and advertising costs, managing cash flow; placing in real estate, etc. However, small business loans can facilitate in financing both the anticipated and surprising shifts in your business and thus enable you to reap high returns.


Know how Small business funding is a smarter option and taking it can help your business grow:

Buying equipment or machinery

Exceptional business performance may require some or the other improved equipment or machinery to complete the job. At times, having got the required equipment appears insufficient as the costs of unforeseen repairs or replacing of defective equipment can go beyond your planned budget. Additionally, broken machinery can result in delayed services that in turn can ward off your potential customers. Thus, dent the business credibility, gradually. However, when considering equipment, you have options- to buy or to lease it. A straightforward cost-benefit breakdown can help you make a wiser and quicker financial decision. Small business funding, apart from aiding you to deal with equipment costs competently, it also serves to hold your business coordinated with the technical advancements.

Expanding your business operations

If you are aware that your small business is flourishing and it has exceeded your present office location, then it is time for expanding your physical location. However, realize that expanding business means hiring additional staff, increased advertising costs, renovations, etc. If you lack decent funds for such a big shift, you can also consider loans for small businesses for putting in an opportunity to expand. Yet, employ a revenue forecast and determine how the supposed expansion would influence your business before buying a second location for your business. Since purchasing real estate is a healthy business indicator; banks can easily approve your loan request. Nevertheless, if you want convenience and fastness, small business funding from Business Capital USA is your best bet as it maintains your business operational costs undisturbed.

Purchasing additional inventory

Addressing inventory costs is often a challenge for many small business owners. In order to sustain the customers’ growing demand and allow uninterrupted service to them, you constantly need to refill your inventory with ample options. This turns even harder to handle when your small business is a seasonal one such as a retail business. Moreover, buying bulk inventory without even gaining the return on investments can is high-risk. A well-established sales projection can render ease and confidence while making this unmanageable financial move. As a small business, you can make the most by applying for a small business loan prior to the holiday season and repay conveniently with the sales profits from the recurring sales. Thus, opting for small business funding can easily make up for the chief expenses- inventory overheads.

Boosting working capital

Holding a steady cash flow is not possible always. Sometimes, you need extra money to address routine business operations. Cash flow issues can turn more intense when you have unsold inventory, rent, staff, utilities, etc. to deal with regularly. Such a scenario demands small business funding to cover up the working capital requirements until the business’s earning assets recover substantially. Availing loans for small businesses can thus extend the necessary financial cushioning during periods of low sales.

Small business loans can thus grant a greater prospect to retain cash flow throughout the low business season, deal with usual operational costs, compel revenue, compensate for losses, preserve customers, etc. Moreover, it also offers ease of application, speedy online processing, and quick funds transfer.

Top 3 Reasons Why Small Businesses Use Merchant Cash Advance

Small businesses frequently require emergency funds or short-term working capital to take care of unplanned financial crisis. By applying for a merchant cash advance from an alternative lender, instead of a traditional bank, it is possible to raise the required money faster for any business purpose. Traditional banks are unwilling to fund because of the less than perfect credit history or insufficient entrepreneurship experience on the merchant’s part. Therefore, many small business owners find this as the best cash flow or short-term financial solution available.

Here are the top three reasons, why small businesses prefer merchant cash advance over traditional small business loan.

1. Business Friendly and Flexibility

Obtaining the needed cash quickly is not the only flexibility that merchant cash advance provides. The repayment is based upon a daily percentage of future sales or credit card sale receipts. Small businesses, especially seasonal, can benefit from this type of flexible repayment method during the off-peak months, where sales volume is low and the repayment automatically adjust accordingly. A fixed monthly or weekly payment for a typical small business loan from traditional banks will not accommodate or be as forgiving during the off-peak months. Thus, many small businesses find merchant cash advance to be more business friendly due to the repayment flexibility.

2. Less Hassle To Apply

The merchant cash advance lenders provide short-term money similar to small business loans. Unlike traditional banks, they have a unique and more simplified online application process. Typical business loan application requires Tax returns of the past 1-2 years and P&L statements but the only financial documentation required for merchant cash advance application, is the recent bank statement that is easily obtainable.

3. Faster Approval

Usual business loan application process, with banks, takes months together before a decision is made. However, a merchant cash advance application approval decision and funding can occur in a few days. The speed at which small businesses are approved and funded by merchant cash advance lenders, makes it more desirable.