CategoryBusiness

Insuring Your Business Vehicle

There are many issues to consider when insuring a vehicle that is owned and used by your business. The questions that surround these issues, and how you would answer these questions, will determine what insurance you need to properly protect yourself, your employees and your entire business. It is important to remember that for this insurance, you don’t want to just go with the cheapest option. Your business is at risk every time a business vehicle is in motion.

As a business owner, you need many of the same insurance coverages for cars, trucks, vans or other types of vehicles you use for business purposes as you do for vehicles you operate in your personal life. The Business Owner’s Policy you purchased for your business does not usually provide liability or other coverages for vehicles used in your business. That means you will likely need a separate vehicle policy.

Most states require you to purchase liability insurance for bodily injury and property damage that may result from a vehicle accident occurring while you or someone from your organization is driving for business. The Business Auto Coverage Form (BACF) is the most commonly used contract for providing business auto liability insurance. Although the form refers only to “autos,” autos are defined to include cars, trucks, trailers, vans or other vehicles designed for use on public roads.

Many states also require you to have uninsured/underinsured motorist’s coverage and/or medical payments coverage, known as Personal Injury Protection (PIP) in some states. You can also purchase physical damage coverage for vehicles your business owns, leases or hires.

Each vehicle you use in your business can be separately “scheduled,” or listed on your policy, along with corresponding coverages. In other words, you can choose different coverages for your various vehicles, depending on the vehicles’ characteristics and the coverage you need for each.

Do I Need a Business Auto Policy?

Your insurance agent will ask in detail how you use vehicles in your business: who will be driving them, whether you own, rent or lease, and whether you and your employees are likely to be driving their own cars for your business. The answers to these questions will indicate the types of coverage you need.

In general, only a BACF can provide the level of liability protection-with a recommended minimum of $500,000-that even a small business needs to cover the potential damages in a serious accident.

Will My Personal Auto Policy Cover Business Use?

Your personal auto policy may provide some coverage for business uses of your vehicle. By the same token, your employees’ personal auto policies may cover some business uses if they were using their personal vehicles for business errands.

If the vehicle you are using is used primarily in business, your personal auto policy might not be enough to cover any losses. It will most likely not provide coverage for any vehicle titled and registered to a business. If you, or your employees, are driving personal vehicles for occasional business activities that are covered by your personal auto policies, it is important to have sufficient liability coverage to protect the business in the event of a serious auto accident.

Many business people have a personal umbrella policy, covering claims that may result for damages personally caused to another. It is typical for an umbrella policy to exclude any claims while in the course and scope of doing business.

What Vehicles Are Covered in a Business Auto Policy?

The choice in business auto policies can vary, depending on the coverages offered by your insurance company. The BAP could apply only to one specific car, or could be extended to cover the insured’s use of any automobile. Most states offer three general options for which vehicles could be covered under your policy:

1. All autos owned by your business
2. All autos owned or leased or hired by your business
3. All autos used for the business, including those that are not owned, hired and/or leased.

Most businesses should consider the third option as it will likely be the policy that protects a business when an owner or employee are using a personal vehicle for business.

Details of the Business Auto Coverage Forms

-Be sure the titled owner is listed as the principal insured on the insurance contract.
-Be sure to have “full” coverage on your vehicles, comprehensive and collision.
-It is recommend that a small business have an auto coverage limit of $1,000,000. This amount of coverage does not usually cost significantly more, and it could save your business in the event of a serious car accident involving a business automobile.
-The combined single limit (CSL) on your business policy should likewise be $1,000,000 at a minimum.
-A business umbrella policy is always a good idea. Ask your insurance agent about what options might be available to you on your policy. This gives added protection as long as the underlying policies are in force at certain minimums.

When Your Business Vehicle Is Also Your Personal Vehicle

When an owner of a business, or an employee, drives a business vehicle for personal use and that person does not own their own personal vehicle, there is a gap in liability coverage. The BACF does not cover personal use of the business vehicle in these situations. An owner would need to add a “Drive Other Car Coverage Endorsement” to a BACF policy. This will allow for coverage to other vehicles driven by the business owner, making the policy now act more like a personal policy and covering the driver and vehicles under the business policy.

Your Business May Be Liable if You Allow a Bad Driver on the Road

You and your business can be legally liable for allowing someone to drive one of your business vehicles. If you fail to determine whether or not the person is qualified to drive or has a bad record, you might be liable for negligent entrustment. A case of negligent entrustment arises when you allow another person to drive your vehicle, knowing or having reason to know that the use of the vehicle by that person creates a risk of harm to others. Your business is responsible for verifying any driver’s qualifications before entrusting them with a vehicle.

Freelance Business Opportuniy

Most people aspire to own their own businesses without clearly identifying the best way to do it. The ever-changing needs of consumers makes it even more complicated for entrepreneurs to select the right business to own. Most people already know that there’s a world of possibilities out there for anyone who wants to start a business. The question is: how can you possibly narrow the possibilities down to find the type of business that’s right for you? Business success research proves that most businesses do not survive for more than three years after inception due to poor business selections at the outset. It’s paramount to choose a business which you understand from an operational standpoint or for which you have a particular passion.

Types of Business Structures

There are different business structures to choose from: sole trader, partnership, limited liability, trust, proprietary limited company, incorporated association and co-operative. There are also a few complex structures like a joint-venture (JV). You may want to contact me personally to discuss the most appropriate structure for your situation. For the purpose of this business guide, I will concentrate on sole trader, partnership and limited liability. You will need to decide on which business structure best suits your business and personal needs.

Business categories

Businesses are mainly categorised as either product or service type. If you are a trained professional, such as an accountant, architect, or a specialist on any ailment, your business is naturally going to revolve around the professional services that you provide. However, there are many professionals who also have the opportunity to offer related products if they choose to do so. For example, if you’re an Information Technology (IT) specialist, you may decide to sell computers, software and hardware.

For untrained professionals, the key to deciding whether to focus on products or services when thinking about starting a business is in determining where your true talents lie and what you most enjoy doing. When making a decision, do not base it simply on whether or not you enjoy selling or are good at it. You will be involved with sales no matter what type of business you start.

Once you have identified the business to own, you will then have to make an informed decision whether to start one from scratch or buy an existing business.

How to Write a Business Plan

A business plan is a road map which will stipulate how you shall steer your company to achieve the goals and objectives which you have set. Most people, especially those starting a sole proprietorship business, do not prepare a business plan. For those who have done so, most of them are sub-standard. Preparation of a standard business plan will help make your business successful.

A business plan is quite often the entry-level requirement to getting government money, investor capital or bank loans. Although you may have a complete picture of the business in your mind, investors and bankers need to see if you really have an understanding of the business. The business plan also provides you with a blueprint to succeeding in business. It provides you with the direction of your company and also serves as a guidepost for your employees.

The business owner’s primary job is to manage and run the business. The term “manage” implies planning and execution. The very process of business planning helps reduce risk. Successful entrepreneurship is often the ability to build a business by taking calculated risks. If you’re putting your life savings on the line or borrowing other people’s money, it is your responsibility as a business owner to not take foolish risks. The business planning process does not guarantee success, but it surely decreases the odds of failure.

The business plan has different sections which I will discuss in greater detail.

Executive Summary and Introduction

  • Write the name of the business, its principal operating address, and any other information which would inform people where your business is located
  • Identify the business ownership. Is it a sole proprietor type or is it owned by a number of directors? Include percentage of ownership for each of the directors if it is a limited liability company
  • Briefly explain the goods or services which you offer
  • Specify the market which you intend to reach and service

Vision, Mission, Objectives & Values

Vision: This is the broad goal which you want to achieve, a statement of your strategic intent – a picture of the future. For example, if your company is to provide Cloud-based internet services in Bangkok, your vision could be: “To provide the cheapest and fastest Cloud internet connectivity in Bangkok.”

Mission: A mission statement should identify the core values to which the business is committed, the core purpose of the firm, and visionary goals which the business will pursue to fulfil its mission. The mission should mirror the vision, and elaborate on what shall be done to realise the vision. Using the example above, an appropriate mission would be, “Strive to offer cheap and first quality internet connectivity by investing in the latest technology and innovation.”

Objectives: These are the pre-set goals which the company should achieve. The objectives are grouped into two categories.

I.) Short term objectives: These are the goals which the business should achieve within the first year following business commencement; and

II.) Long term objectives: These are goals which the business should achieve within five years after business commencement.

Values: These are the principles, morals and ethics which the business strives to uphold. For example, how the business is committed to customer satisfaction and how it practices a culture of excellence.

Evaluate your business statement by answering the following questions:

· Is it longer term, but still time-defined?

· Is it clear on the major benefit(s) that you seek to achieve?

· Does it provide for some method of measuring success?

· Does it omit specific references to “how” things will be done?

A good mission statement will contain the following components:

· Specify target market/s and potential customers

· Identify principal products and services

· Specify the geographic domain

· Identify core technologies

· Contain an expression of commitment to survival, growth and profitability

· State the key elements of the owner’s business philosophy

· List the company’s core values

· Identify the desired public image

An effective values statement will include:

· Approximately 5-7 core values

· Values that can be demonstrated as actions or behaviours

· Values that are aligned with business processes or people

Products & Services

  • Identify in detail all the products and services which the business offers
  • Explain how each and every product or service shall be composed and made available to the intended customers
  • Explain the use and benefits of your key products and services

Revenue Generation

This section will identify all the revenue generation activities on which the business shall capitalise to generate revenue that will sustain the business. This is evident when a professional decides to work as a freelance expert. This section is customised based on the specific products you sell or the particular services you provide. For example, a photographer who owns a studio and sells photographic materials, might list the following:

  • Camera sales
  • Picture frame sales
  • Film sales
  • Camera memory card sales
  • Photograph/Video coverage charges

Capital Cost

Capital is defined as the initial investment which you shall put into the business before you commence operation. It is also defined as assets available for use in the production of further assets, wealth in the form of money, or property owned by a person or business, and human resources of economic value.

This section includes some basic accounting, but you don’t need an accounting degree to write this. It has simple arithmetic which is easy to understand. Just list all the expenses which you expect to incur before you commence operations.

Research & Development

All businesses need to continually improve their products, services and business processes in order to anticipate and respond to the ever-changing needs of customers, especially in line with today’s technology boom. This means investing time and money into researching these needs, then developing products and services to meet them. Research and development together with the design of new and modified services will form an essential part of making your business more profitable and productive. Then you can be sure that your career as a freelancer will be successful.

Grow Your Business Using These Five Tips

Starting a business is tough.. no exaggeration. To start and run a business is both nerve-racking, petrifying.. and a dozen other emotions. It doesn’t matter if you are drafting the initial business plan, just opened the doors, or been around for awhile. Planning will alleviate much of the risk, but not all. You can’t control everything in life, nor in business.

Want to grow your company? Here are five guidelines to help you do that. Many accomplished business owners wished that someone had told them this at the beginning.. and look at us giving them away to you.

Guidelines to Grow Your Business

1. Realize that you can’t do it all

Being your own boss is part of the appeal to start a business. The owner of a small business will have to be contented to wear many hats – that of a sales assistant, bookkeeper, marketing director. However, this does not require that he or she should do it all on his or her own. Now is a good time to consider outsourcing some pieces of your business to a virtual assistant and a bookkeeper.

You will certainly be able to do it alone for a short time and even manage to flourish, but in order for the business to develop, it can’t go on like that forever. It is crucial to know when to find capable people with the same vision. You can only do so much and if you want the business to thrive, you will have to accept that you need help.

It should not be necessary to relinquish your new found freedom or your control to get help, but you are only one individual.

2. Don’t spread your doubts

Confidence, drive and passion are needed when launching and running a prosperous business. It is, however, normal for doubts about this new undertaking to creep up on you, but essential to know to whom and where to voice these uncertainties.

Don’t tell influential people outside the company like a capitalist that might invest in your venture or the local credit union’s manager. They will only finance someone who is confident about his or her business. So keep your game face on when you approach investors for much needed money. In the same way the employees must be sure that they can believe in you. Don’t when times get tough, don’t express your emotions and doubts openly for all to hear.

It would be lying to say that not everyone have fears and uncertainties. A business owner, however, should arouse confidence in his or her employees. So think about how you act when you are with them, especially when things aren’t happening like you would like it to.

3. Work towards that business you would want

There’s an expression that says that you should fake it until you make it. You should adopt this principle, particularly in the beginning of a business venture.

Don’t intentionally deceive clients about the business’ scope or what services you can offer them. New clients should be instilled with confidence in your business, until your reputation has been established. So, run the business as if it is already the business you would want, even if it is not there yet.

Apply this concept to all aspects of your business venture – from the way potential clients are greeted to the language used on advertising materials and the company website. If a confident air is projected when new customers are dealt with, a first impression is made that will offset the small size or lack of experience.

It is not necessary to approach all dealings as the president of a worldwide organization, but think big when you want to grow your business. Make sure any material or employee who have direct contact with your clients, represent your business the way you would want to.

4. Deal with the negative answer of no

It is only you who can decide to open your own business, an adventure that you yourself decide to go on. Regrettably, to make your dream come true, you’ll have to involve other people whose opinions will have to be heard about the way things happen.

Starting out as the owner of a business you will often hear “no.” Potential customers and clients will not be interested, your idea will be passed on by investors, and your banks loan applications will be turned down. Don’t feel dejected because rejection is essentially fabulous.

How so? For the reason that every time you hear “no,” you must choose to appreciate it as a break. Maybe your bank loan application was turned down, not because of your idea but because of a problem with the business plan. Perhaps a non-interested client could force you into developing your pitch or making your offered services more convincing.

A business owner should look at rejection as inevitable, but it is your choice how to react to it.

5. The business bank account isn’t for your personal use

This is a big one, so read it again. And again. Once your business is going strong, the temptation will be there to use your business account for personal use, to borrow money from the business or treat yourself with lavish payments, but don’t do it, especially in the beginning.

Even a successful business will admit that to grow cost money. Every time you take from the business’ money, the chances of growth diminish. You should be sure to adequately compensate yourself for the work you do, but your salary must be modest and reinvesting in the business must be your main concern.

To grow a business will cost money because everything needed for growth like equipment, talent and space costs money. Therefore the smaller amount you put back, the slower the growth. The more money put back, the faster the operation can be expanded and the more profits can be made.

5 Valuable Ways Business Funding Will Scale Your Business

Most businesses think that business funding is something that you need when your business is short on cash or times are hard. A lot of businesses go out looking for business funding when the business is not good. The time to get business funding is not when your business is doing horrible or you are strapped for cash.

If your business is doing great, there is no better time to go out and get business funding. Why?

1) It’s easier to qualify
2) You can get better rates and terms
3) It’s easier to grow your revenues with a capital infusion
4) It’s easy to utilize the simple formulas that we have in here to scale your growth.

DON’T WAIT FOR THINGS TO GO BAD; IF YOU ARE DOING GOOD – BUSINESS FUNDING CAN SCALE YOUR BUSINESS TO THE NEXT LEVEL.

This is how you can determine if business funding can help your business grow. There are 5 simple steps which will show you the value of business funding.

Step 1: What Do You Need To Grow Your Business?

While this may sound like a stupid question, it is a very important question.

The FIRST STEP you need to take is determining what your business needs to grow sales. Most businesses need one or more of the following?

• Inventory and More Products
• Expanding Existing Line of Products
• Adding Additional Services
• Marketing and Advertising
• Sales People or Personnel
• Machinery, Equipment, Software or Hardware
• Expanding into other Territories or Adding Another Location

Step 2: How Much Money Do You Need to Achieve That?

How much money do you need to achieve that? Again, another simple question and it may sound stupid. But you need to start off with basic questions.

How much would you like to invest into your business or how much do you need to grow your business?

$10,000, $20,000, $40,000, $50,000, $100,000 +

Step 3: Where will the come from?

There are only three forms of cash that flow into a business:

REVENUES FROM SALES
INVESTMENT DOLLARS
DEBT: A LOAN OR LOANS

Where will the money come from to help your business grow?

If you have an existing business and you want to invest in your business you either sell more or you have great close out balances and have enough reserves to re-invest. If you plan on selling more; most sales and marketing strategies require some sort of cash infusion. If that is not the case you only have two options: an investor or a loan.

Step 4: If you had the amount of money you need to do what you want in your business – there are two key questions: If you know the answers to these two basic questions; you will know immediately how to increase your sales fast.

1. How much money will you make with that money?

In technical financial terms – What will be the ROI (Return on Investment)?

2. In what time frame will you make that money back?

In what time frame will you achieve the anticipated or projected ROI (Return on Investment)?

EXAMPLE (CASE STUDY): (Simple Version)

If someone gave you $100,000 – what would you do and how would that impact your business.

Example:

I (YOUR NAME) would take $100,000 and allocate that money into marketing and increase personnel. (NEED AND WANT)

I (YOUR NAME) would take $100,000 and make 50% return in 5 months. The equivalent of 10% return per month…

Based on this information, you are clear on how you would use the money, what type of return you would make and in what time frame.

The next step; is to determine if you can?

• Increase sales to $100,000 and have the extra money to do this.

• If you obtained an investor how much would they want? Most investors will either charge you anywhere from 10% to 30% in interest or they will want 20% to 50% of net earnings. You have to figure out the cost of capital versus your return.

• If you obtain a loan the interest rate may range from 7% to 30%. You need to factor in the cost of capital versus your return.

EXAMPLE (CASE STUDY) – Crunching Numbers:

For Existing and Operational Businesses

Food Distributors of America currently generates $50,000 per month on an average. At the end of the month they close out $5,000 positive which is about 10% net. Currently, there cost of inventory is $20,000. This means every month they purchase $20,000 to make $50,000 Gross. The question you need to address is: How much are my costs to generate gross earnings? Once you know that, you know how much you need to increase gross earnings by 10%, 30%, or even 100%. In this example, we can increase earnings by 100% by making a capital infusion of $20,000.

We know that $20,000 generates $50,000 per month. We know that $20,000 and $50,000 of gross sales generates $5,000 per month net; which is 10%. They want more inventory because they have prospective buyers.

Conclusions:

• An additional $20,000 would generate an additional $50,000 in gross sales; increasing earnings to $100,000. This is a 100% increase in gross sales.

• An additional $20,000 would generate an additional $5,000 in net margins; increasing earnings by another 10% monthly = 20% monthly.

• If this business can do this every single month, they would increase net earnings by 10% x 12 months = 120%.

Not all businesses can do this. Even if you increase your net earnings by 2% per month = 24% increase in 1 year.

Businesses that carry inventory have an easier time achieving this.

Businesses that sell every day; such as restaurants, hair salons, and anyone who sells consumer products; have an easier time achieving this.

Seasonal businesses can also achieve these types of returns.

Step 5: Calculating Cost of Capital versus Return on Investment (ROI).

If you don’t have the extra money; you will need an investor or some sort of business funding or a loan.

There is nothing wrong with taking on investors or a loan. Most successful businesses have grown with capital infusion. Think of this way. Would the New York Stock Exchange or would the Chicago Board of Trade exists if businesses did not take on investors or debt? All businesses on major stock and debt exchanges have investors or debt.

Business Identity Theft – Three Keys to Protection

Imagine discovering you are the co-owner of your business instead of the sole owner, or that you have a satellite business you didn’t know about operating in a different state, or there is a business with a similar name using a similar address to yours pretending to be your business. How would any one of these scenarios impact your business? This is what business identity theft looks like. It can happen to any business large or small. It could happen to yours, too.

Most small to mid-sized businesses don’t understand what identity theft can do to their business until it is too late.

Business identity theft doesn’t target individuals, instead, criminals look for ways they can take valuable information fro legitimate businesses. They are looking for bank accounts, credit card numbers and passwords, and sensitive intellectual information.

These looters gain access to key accounts and drain them, many times, before the bank is aware of the act. The cost of business identity theft can be enormous. It could take hundreds of hours and a large sum of money to repair the damage. Some businesses never recover and go out of business.

Business identity theft is still a relatively new type of crime. Most business owners haven’t heard of it. So there is a temptation to ignore it. Steve Cox of the Better Business Bureau says, “Business identity theft is a very real concern in today’s marketplace. From a criminal’s perspective, it’s significantly more cost-effective to steal business identities than consumer identities.:

The criminals act quickly. They know they only have a short period of time before the act is discovered. The Ponemon Institute says that 84 percent of the cases money was stolen before the fraud was detected by the bank.

Many small business owners don’t think they have much that a thief can take from them. But the truth is that you don’t have to have more than a good name. The thieves can use it to get loans, order products and ruin the businesses good name. Dun and Bradstreet’s Senior Risk Analyst Robert Strezze states, “What is particularly disturbing about this trend is the significant dollar amount involved. It’s not unusual for the losses to be in the mid-six figures by the time the criminal activity has been detected.”

The unfortunate truth is that most businesses don’t take the time or steps to safeguard against the crime. Most are too busy doing the daily activities to keep the business going. It isn’t until the damage is done that a business realizes the trap it fell into.

What are the keys to business identity theft prevention?

There’s good news for businesses who are willing to put some time and effort into business identity theft prevention. Many times preventative measures can mean big savings and a better image in the community. There are three keys where a business can lessen the likelihood that identity theft will happen:

The first key is to establish a position on the leadership team that is in charge of monitoring for business identity theft, establishing procedures for data breach prevention, and protect against other criminal activity. This officer could be called the Chief Security Officer, for example, and should have the power to check banking, credit card and other key accounts. The officer would be wise to establish “best practices” for information security including employee training, password protection and more.

The second key is to set up monitoring services that watch your back for you. A businesses personal information is everywhere. It is nearly impossible for one person to keep an eye on every aspect of the business. A business identity theft protection service that includes business credit monitoring and internet surveillance, identity theft alerts, and whole business recovery can be a valuable asset for identity theft protection.

The third key is to set up credentials monitoring in the Dark Web. This is where criminals do their business buying-selling-trading stolen information. Credentials monitoring will alert a business when stolen credentials, IP addresses and, for banks, BIN card numbers appear. Businesses can take proactive steps to prevent the stolen information from harming them, their employees and/or customers. Millions of stolen credentials, email and login information, show up every month. Stolen credentials is a major player in all forms of business fraud.

Business identity thieves are clever and determined. They can take advantage of businesses and business owners that do not take precautions to protect their business.

3 Big Reasons People Fail Building Business Credit

There are three main reasons many people fail building business credit. The 1st BIG reason people fail, is that their business isn’t setup credibly in the lender’s eyes. The perception lenders, vendors, and creditors have of your business is critical. Before applying for business credit a business must insure it meets or exceeds all lender credibility standards. There are over 20 credibility points that are necessary for a business to have a strong, credible foundation.

To insure you are seen credibly, it is very important that you use your exact business legal name. Your full business name should include any recorded DBA filing you will be using. Insure your business name is exactly the same on your corporation papers, licenses, and bank statements.

Whether you have employees or not your business entity must have a Federal Tax ID Number (EIN) to start getting business credit. Just like you have a Social Security Number, your business has an EIN. Your Tax ID number is used to open your bank account and to build your business credit profile. Take the time to verify that all agencies, banks, and trade credit vendors have your business listed with the same Tax ID number.

Your business address must be a real brick-and-mortar building, deliverable physical address. It cannot be a home address, cannot be a PO Box and cannot be a UPS address. Some lenders will not approve and fund unless this criteria is met. There are Business Address Solutions available at companies like Regus including address only where you receive mail and packages at your dedicated business address.

You must have a dedicated business phone number that is listed with 411 directory assistance, under the business name, to successfully obtain business credit. Lenders, vendors, creditors, and even insurance providers will verify that your business is listed with 411. A toll-free number will give your business credibility, but you must have a LOCAL business number for the listing with 411.

Lenders perceive 800 number or toll-free phone numbers as a sign of business credibility. Even if you’re a single owner with a home-based business, a toll-free number provides the perception that you are an even bigger company. It’s incredibly easy and inexpensive to setup a virtual local phone number or a toll-free 800 number.

A cell or home phone number as your main business line could get you “flagged” as an un-established business that is too high of a risk. DON’T give a personal cell phone or residential phone as the business phone number. You can forward a virtual number to any cell or landline phone number.

Credit providers will research your company on the internet. It is best if they learned everything directly from your company website. Not having a company website will severely hurt their chances of obtaining business credit. There are many places online that offer affordable business websites so you can have an internet presence that displays an overview of your company’s services and contact information.

It is important to get a company email address for your business. It’s not only professional, but greatly helps your chances of getting the thumbs up from a credit provider. Setting up a business email address is just too easy and inexpensive to neglect.

The 2nd BIG reason people fail building business credit is that they apply using their social security number. Always apply first without using your social security number. Some vendors will request it and some will even tell you on the phone they need to have it, but submit first without it. Many don’t even know you can get approved without it.

When you apply using your SSN you almost always are giving a personal guarantee. One easy way to know if you have business credit already is if you obtained credit without signing for it and providing your SSN. TRUE business credit doesn’t require an SSN in most cases to qualify.

Business credit is using your EIN to qualify for credit. When you have enough credit built for your EIN, you can then get approved without providing your SSN. If you provide an SSN, your personal credit WILL be pulled in most cases. That personal credit will then be used for the approval decision.

Most credit issuers will approve you without your SSN if your EIN credit is strong enough. If your EIN credit is not good enough, you might be declined and they then might ask for your SSN. No matter what ANY credit representatives tell you, credit CAN be obtained based on your EIN only.

The 3rd BIG reason people fail building business credit is that they apply for credit in the WRONG ORDER. A business credit report can be started much the same way as a consumer report commonly is, with small credit cards. The business can be approved for small credit cards to help them build an initial credit profile. These types of initial cards in the business world are commonly referred to as “vendor credit”.

A vendor line of credit is when a company (vendor) extends a line of credit to your business on “Net 15, 30, 60 or 90” day terms. This means that you can purchase their products or services up to a maximum dollar amount and you have 15, 30, 60 or 90 days to pay the bill in full. So if you’re set-up on Net 30 terms and were to purchase $300 worth of goods today, then that $300 is due within the next 30 days.

You can get products and services for your business needs and defer the payment on those for 30 days, thereby easing cash flow. And some vendors will approve your company for Net 30 payment terms upon verification of as little as an EIN number and 411 listing. When your first Net 30 account reports your “tradeline” to Dun & Bradstreet, the DUNS system will automatically activate your file if it isn’t already. This is also true for Experian and Equifax.

You need to have a total of at least five (5) Net 30 day pay accounts reporting. Some vendors require an initial prepaid order before they can approve your business for terms. Vendor accounts are hard to find, so keep in mind that your vendors do not necessarily have to serve 100% of your business needs.

Avoid these three BIG mistakes to quickly build an exceptional business credit profile and score that you can use to obtain credit for your business.

The Top Ten Benefits Of Marketing Your Business With Articles

Have you heard about the incredible benefits of marketing your business using articles? Article marketing is without question one of the most powerful and cost-effective ways to increase your business sales and profits. Using articles you can not only enhance your reputation but also be seen as an expert in your field.

This article will explain how article marketing can help your business. You will learn that using professionally written articles gives you more benefits than you ever believed possible — and on a shoestring budget!

The Three Secrets of Article Marketing’s Power

  1. Give Google What It Wants. Google LOVES articles. With articles you are giving Google exactly what it wants and this will help market your business in search engines.
  2. Give the People What They Want. People LOVE to read stories. With articles you have the chance to capture your reader’s attention in a way that other advertising and promotional methods simply cannot do. Instead of paying for ads, you can tell your story instead.
  3. Give Yourself a Halo. Articles allow you to take the initiative in telling your OWN story, thereby creating your own first impressions, and enhancing you own reputation. Article marketing puts YOU in control of this communication process of defining who you are. Use articles to tell the world how great you and your business are!

The Top Ten Benefits of Using Articles in Your Business

I. Build and enhance your reputation.

Having a good reputation can benefit a business in many, many ways. In fact, the reputation of your business may be essential to its survival. The trust and confidence of your customers directly affects your bottom line. In the past, businesses relied on word of mouth in order to establish, build and maintain their reputations. But in this age of social networking, the internet, and other methods of instant social interaction, businesses must continually monitor their reputations.

If you have a good reputation in the marketplace, consumers will have a preference for your company. The reputation of your company allows you to differentiate your services and products in highly competitive markets. In some cases, good reputations allow businesses to have premium pricing. Most importantly, a good reputation is the top factor in whether a customer decides to patronize your business instead of your competitors.

II. Be seen as an expert and build your credibility.

Get a professional to write articles for you and get them published in newspapers, magazines and trade journals to be seen as an expert in your field. Get reprints of articles to hand out to prospects in your office. Nothing builds credibility like a professionally written article!

III. Generate publicity and phone calls to your business.

If you want customers and prospects to call your business then articles can do the job. Professionally written articles will generate interest in your business and get prospects to call you.

IV. Increase traffic to your business and your website.

Businesses always want customers to visit both their physical location AND their website. Visits mean money. Articles accomplish this by stimulating interest in your business and the products and services you offer.

V. Rank higher in Google and beat your competitors.

Most businesses today spent a lot of time and money to rank higher in Google search results. The higher you rank, the more business you get from search engines and the internet. Most businesses are not aware that articles published on the internet are one of the best ways to make sure your business ranks high in Google search results.

VI. Make a splash in social media.

Social media has taken the world by storm, and these sites can bring new customers to your business in numerous ways. (Social media sites include Google+, Facebook, Twitter, and others.) Social media websites always want new information in order to stay current. By publishing articles regularly you will feed the need of social media for new information. This will get you valuable “word of mouth” advertising at no cost, and get you more new business. Use articles to publish news about your business in social media sites.

VII. Educate your prospects about your business

Do you have complex products and services that require in-depth explanations to your prospects? Do you want to educate your customers and prospects about their choices? Professionally written articles effectively communicate all-important information about your services and your products. They must be written so people will want to read them. Articles are the best way to educate your audience.

VIII. Get and keep your prospect’s attention.

Let’s face it, people hate advertising. In fact, most people don’t even read ads, and if they do read them, they don’t trust them. However, people love to read stories, so if you can tell your story in the form of an article, people will read it with great interest (and believe what they read). Maybe it’s time you quit wasting money on advertising campaigns that don’t work, and use articles instead to capture the attention and interest of your ideal business prospect.

IX. Add to the useful life of your marketing campaigns.

Stop and think for a minute about how long you receive benefits from an advertisement in a newspaper, or on TV or radio. These are very “in the moment” ephemeral ways to communicate your message.

Now consider articles that are published about you and your business on the internet. Did you know that these articles last forever online? (They will be there as long as the internet exists.) In fact, over time your articles will actually get read more often as you optimize for the search engines (SEO) so they appear at the top of search results.

Articles will be promoting your business while you sleep — 24 hours a day — forever!

X. Grow your business and increase your profits!

If this is your goal, then use articles to do it. It’s that simple. Nothing else works as well as articles. Not only that, but they are VERY INEXPENSIVE…

Pinch Your Pennies and Maximize Your Power

Articles allow you to grow your business on a shoestring budget. It’s almost like getting free advertising. This means you can save money to use in other areas of your business, including marketing and sales. Article marketing is proven to be one of the most cost-effective ways to grow your business on a budget.

Nothing beats article marketing as a way to promote yourself and your business, enhance your reputation, and make greater profits than ever before!

Business Traveller Flying to London? A London City Guide for Getting to the Centre

London. The vibrant, beating heart of the United Kingdom. It’s one of the world’s most popular destinations for tourists, and for business travellers too. The amount of commerce that goes through London is staggering, with a financial centre second only to New York, and service industries that cater for both the UK, European and international markets. As the world’s most multicultural city – there are over 300 languages spoken by a population of over eight million people (twelve million if you include the metropolitan area) – the opportunities for business are clear.

With the UK strategically positioned for the business traveller on the western edge of Europe, London is a global hub for air travel, providing easy access to mainland Europe, and a stepping stone to the United States. Primarily served by five airports – Heathrow, Gatwick, City, Stansted and Luton – London is easily reached from anywhere in the world. But with the exception of London City Airport – smallest of the five and located in East London, close to the business district of Canary Wharf – the other four airports are satellites evenly dispersed around the city. The most popular, Heathrow, is located to the west of London; Gatwick is situated to the south; Stansted to the north east; and Luton to the North West. Knowing this before you make your travel plans can be useful. Since the greater metropolitan area of London covers over 1,000 square miles, your final business destination may not be right in the centre. Researching which airport is closest to your destination can save you time, effort and money.

However, whether you’re a business traveller flying from within the UK or from overseas, your starting destination may often determine the airport you arrive at. Other factors, such as your chosen time of travel, budget and availability will also make a difference. For example, if you’re travelling with a major international carrier from a major city, such as New York, the chances are you’ll arrive at Heathrow or Gatwick (Stansted also receives flights from New York but is the smallest of the three). If you’re travelling locally from within the UK with a budget carrier you’re more likely to arrive at Stansted or Luton (though not exclusively). And if you’re travelling from a major European city, particularly a financial capital, such as Frankfurt, London City Airport is a likely arrival point (the airport was created specifically to cater for short haul business travellers, particularly between financial centres).

Each airport is served by comprehensive rail and road infrastructure, providing business travellers with a variety of options to enter London. All five airports offer direct rail travel into the heart of Central London, coach travel to the main Victoria terminus, and hire car, mini-bus, licensed black cab and taxi services by road. If you’re a VIP business traveller, chauffeur services are also available, and with the exception of London City Airport, each also offer direct helicopter transfer into the heart of the city.

London Heathrow Airport

The busiest of the five airports is London Heathrow. Located less than twenty miles from central London, Heathrow is situated to the west of the city within the M25 motorway metropolitan boundary. The fastest route into London is via the Heathrow Express train service, taking just 15 minutes from terminals 1, 2 and 3 to Paddington station (located on the western side of Central London). If your flight arrives at either terminal 4 or 5 it’s a further four and six minutes travel time respectively, and you’ll need to transfer on to the main London-bound service at terminals 1, 2 and 3.

The service is excellent, offering comfort and convenience, but does not always suite everyone’s travel budget. The standard ‘Express’ single journey ticket costs £21.00 (€25.00 / $35.00), but business travellers can get better value when purchasing a return ticket, priced at £34.00 (€40.00 / $56.00). The ‘Business First’ ticket is more expensive, with singles costing £29.00 (€35.00 / $48.00) and returns £52.00 (€62.00 / $86.00), but it does afford business travellers considerably more leg room, the privacy of a ‘single seating’ layout, and a fold out table. The experience is akin to that of air travel. All passengers across both pricing structures enjoy access to electrical sockets, USB ports and free Wi-Fi. The overall quality of service and passenger experience generates a ‘wow’ factor, and if your budget can afford it, is certainly the smoothest, quickest and most convenient way to travel into London from Heathrow. Trains run regularly every fifteen minutes in both directions, particularly useful for last minute dashes to the airport.

There are two further rail options available to business travellers, both considerably less expensive, though this is reflected in the quality of service. That’s not to say either is not a good solution for business travellers, just that there is a noticeable difference in convenience and comfort.

With a service typically running every thirty minutes, and a journey duration – depending on the time of day – of between 23 and 27 minutes from terminals 1, 2 and 3, Heathrow Connect is more than adequate for business travellers who are not in a hurry. Like the rival Express service, Connect also arrives at Paddington station, but unlike its faster rival stops at up to five other stations before reaching its terminus. The ‘inconvenience’ of this less direct journey is compensated for by a considerably less expensive ticket price. Single journey’s cost £9.90 (€12.00 / $16.00) while a return is £19.80 (€24.00 / $32.00). There is no saving to be made from purchasing a return ticket. While the convenience and comfort of the traveller experience cannot match the Express, the Connect business travel solution is an acceptable compromise that suits a greater number of travel budgets.

The third – and least expensive – rail option is the London Underground ‘tube’ network. Despite the network’s name the majority of the journey from Heathrow is overground, until the business traveller nears Central London. Starting on the Piccadilly Line, the service connects all five Heathrow terminals and provides frequent trains into London, stopping at a considerable amount of outlying stations before arriving in the capital’s centre. This continually ‘interrupted’ journey – there are seventeen stops between Heathrow terminals 1, 2 and 3 and Paddington Tube station (the nearest equivalent tube terminus for a fair comparison) – and takes approximately fifty minutes journey time on average, considerably slower than its more direct rivals. This journey comparison also requires the inconvenience of a transfer between lines.

So why would the business traveller consider using the tube from Heathrow to Central London? Simple. The frequency of service, the array of destinations, and the cost. At a cash price of just £5.70 (€6.80 / $9.50) for a single journey in either direction during peak hours (06:30am to 09:30am), financially the Underground is an attractive option. At nearly half the price of the Heathrow Connect, and at just over a quarter of the price of the Heathrow Express, this service is comparably good value for money. Further value can be found if the business traveller purchases an ‘Oyster Card’, the ‘cashless’ electronic ticketing system beloved by so many Londoners. Available to purchase at Heathrow London Underground stations, this useful option allows you to get tickets cheaper than for cash – in this case a reduction to just £5.00 (€6.00 / $8.30). Off-peak travel with an Oyster Card offers even greater value, with Heathrow to Paddington in either direction costing just £3.00 (€3.60 / $5.00) per journey. The Oyster Card can also be used for unlimited travel on buses and trains throughout London, with a maximum daily spend capped at £17.00 (€20.00 / $28.00) peak time and just £8.90 (€10.60 / $15.00) off-peak for a six zone ticket (destinations across London are divided into six main zonal rings. Travelling from Heathrow to Central London crosses all six zones).

The Underground is primarily a city-wide mass transit system, rather than a ‘train’ service. As such the level of comfort and convenience is substantially less than that of both the Heathrow Express and Connect services, and at peak hours can be considerably uncomfortable. Having endured a recent flight, business travellers who choose this option run the risk of having to stand up the entire journey if travelling during peak hours. If the carriage is full to squeezing point (as is often the case at peak time) managing your luggage can be a challenge. It should also be noted that the tube network – which, as the world’s first urban mass-transit system is over 150 years old – is often prone to signal failures and delays. If the time between your arrival at Heathrow (don’t forget to factor in clearing immigration control, luggage collection and customs) and your business appointment is tight, particularly during peak hours, it is not unfair to say that you are taking a risk if you choose to use the Underground.

Compared to using rail, travelling by road into Central London is far less convenient. Like every major city around the world, traffic congestion plagues the streets of London. The M4 and A4 route from Heathrow into London is always busy and in parts can be slow moving at times. No matter what your method of road transport, the business traveller is vulnerable to the risk of delays and accidents.

Buses and coaches are plentiful. The dominant carrier is called National Express. They operate services between Heathrow Airport and London Victoria, the main coach terminus in London. From here travellers can travel to many other destinations around the UK. The coaches run from Heathrow Airport Central Bus Station, which is located between terminals 1, 2 and 3. Its well sign posted so easily found. If you’re arriving at terminals 4 or 5 you’ll need to first take the Heathrow Connect train to the central bus station. From Victoria Station you can get to any other part of London with ease, via the Underground, plentiful buses, local trains and licensed black cabs / minicab taxi services.

A single journey tickets start from £6.00 (€7.20 / $10.00), while returns cost £11.00 (€13.20 / $18.00). Although you can purchase your ticket at Heathrow, it is advisable to do so in advance, and online. This will ensure you have a guaranteed, reserved seat on your coach of choice, and also provide you with the opportunity to select a time of departure and/or return that best suits your needs. Typically this service runs three coaches per hour to and from London Victoria coach station. The journey time can vary, dependent on the route taken, the time of day and traffic conditions, but you can typically expect your journey to take between 40 and 90 minutes.

National Express also offers business travellers a Heathrow hotel transfer service to and from the airport, known as the Heathrow Hoppa. With hundreds of services each day running around the clock, it’s a clean, comfortable and affordable way to get about, costing £4.00 (€4.80 / $6.60) for single journey and £7.00 (€8.40/ $11.50) for a return journey. This service is particularly useful if your business appointment is located close to Heathrow and you have no need to travel into Central London.

An alternative to coach travel is taking a bus. This can be particularly useful if you arrive at Heathrow late at night. Depending on the day of the week, the N9 night bus runs approximately every 20 minutes to Trafalgar Square in Central London, from 11.30pm to 5am. The journey time is approximately 75 minutes, subject to traffic delays. It’s a very affordable service, and as part of the Transport for London infrastructure a single journey can be paid for with an Oyster Card (£1.40 (€1.70/ $2.30) or by cash (£2.40 (€2.90/ $4.00).

If your journey into London requires the freedom to choose to travel whenever you want, to wherever you want, or you simply require privacy, then private hire transport is readily available at Heathrow. If you’re just interested in getting from A to B and back again, without any other journeys in between, taking a licensed black cab or minicab taxi may suit your needs. Travelling in an iconic licensed black cab into Central London will take approximately 45-60 minutes, subject to traffic delays, and can typically cost between £50.00 (€60.00/ $83.00) and £80.00 (€96.00/ $132.00). If you do find yourself delayed in traffic the journey will cost more, since black cab meters also charge for waiting time when not moving. Black cabs are readily available at all hours, and good sign posting at Heathrow means they’re easy to find. At a squeeze up to five business travellers can be accommodated, though if you all have large luggage it will be a problem.

An alternative private hire to black cabs are licensed taxi services. This could be a better option for the business traveller, particularly if a number of people with luggage are travelling together. An array of vehicle types are available, ranging from standard 4/5 seater saloon and 6/7 passenger people carrier cars, up to 15 or 17 seater minibuses and even coach taxis. An added advantage is you can book your vehicle of choice in advance and at a fixed price. With so many different companies offering these services, prices – and quality of service – can vary, but typically for a single journey the business traveller can expect to pay a fixed, advance price of £40.00 (€48.00/ $66.00) for a saloon car; £50.00 (€60.00/ $83.00) for an estate car; £55.00 (€66.00/ $90.00) for an executive car; £55.00 (€66.00/ $90.00) for a people carrier; £65.00 (€78.00/ $108.00) for an 8 seater minibus; £80.00 (€96.00/ $132.00) for an executive people carrier; and £165.00 (€198.00/ $272.00) for a 16 seater minibus. Savings can be made on all tariffs if a return journey is booked in advance.

Travelling by black cab or licensed taxi affords the business traveller the freedom to travel at his or her own pace, and can take the hassle out of a journey. It can be a very relaxing way to commute from the airport into London, particularly after a long flight, and offers the business traveller an opportunity to unwind prior to their business appointment.

If you need to arrange senior executive or VIP transportation, chauffeur driven services are readily available (booked in advance) between Heathrow and London. The vehicle type and the length of time you require it for will dictate the price you’ll pay. Chauffeur driven services are readily available to find online. The same is true of helicopter charter services which can transfer the executive business traveller from Heathrow into Central London (Battersea Heliport) in approximately 15 minutes. Flightline Travel Management is experienced at providing our customers with both modes of transport, and we’re happy to take your enquiry.

Challenges Facing Business Owners When Designing Their Business Plan

A business plan is often referred as the roadmap to success. Anyone who runs an existing business or is in the process of starting up understands a sound business plan is the initial step for success. It will give a precise description of what the business will achieve, how it will be achieved, why and by whom.

Writing a business plan will help the entrepreneur organize his expectations for the business and develop a framework that will guide him in running the business.

Moreover, the business plan will become a relevant tool in making future decisions, especially those that will impact the business over the long period.

A business plan has several sections, however, when crafting your business plan, take time to define your mission and vision as well as your goals and objectives. These sections will clearly state the core of your existence and define what you want to accomplish and what your business actually stood for.

Before you can actually develop these sections, you need to identify your core values. Consider the stakeholders that your company is accountable.

The stakeholders may include the owner, employees, customers, suppliers, and investors. Your core values will be the foundation of your mission and vision as well as your goals and objectives.

Mission Statement

A mission is defined as an important purpose, accompanied by a strong conviction. Therefore, your mission statement must clearly state the purpose of your existence.

It must be about you and should create a connection with both the customers and the employees. Mention a specific goal that is tangible and should boost the value proposition of your business.

Often, generic, extremely long mission statements are confusing and may become useless. Brief and concise, single sentence mission statements are more preferred.

Vision Statement

Vision is defined as the anticipation for that which will come to be. Your vision statement must clearly impact how you envision your business.

It asserts your expectations; therefore, it should be an awesome, inspiring and hopeful statement of your commitment and dedication.

Make your vision statement detailed and compelling. It should point out why your company exists. It must also paint a clear picture of your intended outcome.

Vision statements that are generic or utterly unreasonable can become uninspiring and totally bland.

Business Goals and Objectives

Simply put, your goals and objectives will help you figure out where you’re going and help in executing or setting your vision and mission for your business.

Your business plan must clearly lay out, both your long-term and short-term goals. When setting your business goals and objective, it is important to make them SMART and logical.

This means that you need to make your goals Specific, Measurable, Actionable, Realistic and with a Time Frame.

Goals are generally qualitative and tend to focus on achieving the general picture of the business intentions. Primarily, goals are centered on customer service, market positioning and business growth.

Objectives, on the other hand, are centered on the practical daily operations anchored in the quantitative measure of business figures such as the number of customers, costs, revenue and other product-related metrics.

Conclusion

Having a sound business plan is like having a road map when embarking on a road trip. A road map will guide the traveler in making decisions how to reach his destination and to make his travel itinerary.

In a similar fashion, a business plan encapsulates the very core of your company’s existence, and will help you plan out and decide as you navigate your business towards success.

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 Business

There 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 Business

1) 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.

© 2021 Business

Theme by Anders NorénUp ↑