Tag: Small

Improve Your Chances of Getting a Loan with Small Business Lenders

Small Business Lenders Have the Money You Want

Can you improve your chances of getting a loan from small business lenders?

Small Business Lenders, Business Loans, and Funding

Of course you know your business needs money. But business lending doesn’t just come from banks. Still, working to make your business more attractive to lending institutions isn’t just an end unto itself. It will also help your company also become more attractive to nontraditional lenders. It may even help make your business more attractive to prospects. There are factors which are within your control and you can help your business right now.

Start Making it Easier to Get Money from Small Business Lenders

Once you understand what banks and lenders are looking for, you can address their concerns directly. Many of these are actions you only need to take one time, and many of them will also help you to convince prospects to buy from you, thereby helping you recoup any incurred costs.

Working to More Easily Get Money from Small Business Lenders: It All Starts with Fundability

Fundability is the ability of your business to get funding. When lenders consider funding your business, does it appear to them to be a good idea to make the loan? What do they look at to make that determination? Fundability means recognizing what’s important to lenders, and then giving them what they want.

How Does a Business Become Fundable?

You probably already know that a great business credit score is important. But many of the aspects necessary for a strong business credit score work for fundability as well. A potential creditor or lender needs to see your business is legitimate and profitable. Many loan applications get denials due to fraud concerns. Others, simply because something didn’t match up and threw up a red flag.

Your Business Setup

A business must be set up to appear to be a fundable entity separate from you, the owner. The first step is to ensure your business has its own phone number and address. That doesn’t mean you must get a separate phone line, or even a separate location. You can still run your business from your house or on your computer.

Business Phone Numbers

You can get a business phone number that will work over the internet instead of phone lines. This is called a VoIP (voice over internet protocol). The phone number will forward to any phone you want it too so you can use your personal cell phone or landline if you want. Whenever someone calls your business number it will ring straight to you.

Virtual Offices

Use a virtual office for a business address. A virtual office is a business that offers a physical address for a fee. They sometimes they even offer mail service and live receptionist services. There are some that offer meeting spaces for those times you may need to meet a client or customer in person.

But not every vendor will accept a virtual address.

Business Website and Email

A business website can affect your ability to get funding. But a poorly put together website that appears unprofessional will not help you with customers or potential lenders. Spend the time and money necessary to ensure your website is professionally designed and works well.

Along these same lines, your business needs a dedicated business email address. Make sure it has the same URL as your website. Don’t use a free service like Yahoo or Gmail.

Demolish your funding problems with 27 killer ways to get cash for your business.

Improve Your Chances of Getting Money from Small Business Lenders with Business Information and Consistency

All your business information should be the same everywhere you use it. But when you start changing things up like adding a business phone number and address or incorporating, you may find that some things slip through the cracks. This is a problem because many loan applications fail each year due to fraud concerns simply because things do not match up.

Consider all the places where this information could be.

Credit providers won’t stop to consider all the ways you could list your business. If you write Incorporated in one place, and Inc. in another, it can be enough to trigger a denial. Consistent and congruent information makes it fast and easy for credit providers and lenders to find your business and its payment history.

Fix Inconsistent Information by Getting Organized

Consider all the places where your business has a listing. It’s your website, credit applications, even places like Yelp and Google Reviews. Take the time to keep records of all of these places, so Google your business often. Claim your profile on review sites to better control how your business name, address, and other particulars are presented. Copy and paste your information. Don’t chance an error with typing it out. This also means updating info whenever it changes.

Get an EIN

An EIN is an identifying number for your business that works like how your SSN works for you personally. Many sole proprietorships and partnership use their SSN for their business. But it can cause your personal and business credit to get mixed up. When you are looking to increase fundability, you need to apply for and use an EIN. Get one for free from the IRS.

Demolish your funding problems with 27 killer ways to get cash for your business.

Incorporate Your Business

A lot of businesses start off as sole proprietorships. But there’s no separation between the owner and the business with this setup. Partnerships are another entity where the ownership and the business are more intimately connected. With either entity, any other efforts at separating business and personal credit could be all for naught.

Why Incorporate?

A corporate structure truly separates business and personal credit and finances. This is because a corporation is considered to be its own entity. Should you choose a C-corporation, an S-corporation, or a limited liability corporation? That’s up to you to decide. We highly recommend working with a corporate lawyer or an accountant to determine what’s best for your particular situation.

Why Should You Incorporate Quickly?

When you incorporate, you become a new entity. Hence if you haven’t incorporated ASAP, you lose the time in business that you have and must start over. You also lose any positive payment history you may have accumulated.

Hence you must incorporate as soon as possible. It’s not just necessary for fundability and for building business credit. Time in business is also vital. The longer you have been in business the more fundable you appear. That starts on the date of incorporation. This is regardless of when you actually started doing business.

Improve Your Chances of Getting Funding from Small Business Lenders with a Separate Business Bank Account

There are business owners who pay for business expenses with personal credit cards and checks. But a business’s credit file is only supposed to reflect the financial performance of the company itself. Using personal payment methods can muddy the waters. Resist the temptation to pay for any business expenses with personal credit or checks.

Separate Your Business and Personal Finances

Your business must stand or fall on its own financially. Once you get credit from starter vendors or any other business or lender, use it on your business, and stop floating what are essentially interest-free loans to your business.

Get a Merchant Account

Another way to assure your finances get and stay separate is separate bank accounts. Often, a starter vendor will want for your business to have its own bank account anyway. While you’re at it, open a merchant account so you can take credit cards from your customers. Customers will spend more if they can pay with plastic.

Improve Your Chances with Small Business Lenders and Get all Required Licenses

Fundability means being a legitimate business. For a business to be legitimate it must have all of the necessary licenses it needs to run. If it doesn’t, red flags will fly up all over the place. Do  research to ensure you have all the licenses necessary to legitimately run your business at the federal, state, and local levels. Being properly licensed can help assure skittish prospects that you and your business are legit.

Get a D-U-N-S Number

In addition to the EIN, there are identifying numbers that go along with your business credit reports. Some are assigned by the agency, like the Experian BIN. Dun & Bradstreet is the largest and most commonly used business credit reporting agency. Every credit file in their database has a D-U-N-S number. To get a D-U-N-S number, you must apply for one through the D&B website.

Demolish your funding problems with 27 killer ways to get cash for your business.

Business Credit Monitoring

The key to keeping records consistent is to monitor your reports frequently. Monitoring your credit means you know what’s going on with it. You can pounce on errors quickly. Yes, the business CRAs make them, but they are all committed to accuracy and want to correct those mistakes ASAP.

When it comes to business credit reports, you can monitor through the reporting agencies directly. But that’s expensive! Or you can save 90% and monitor through Credit Suite.

Improve Your Chances with Small Business Lenders with a Good Business Credit History

Your credit history has a lot to do with your credit score. It is a huge factor in the fundability of your business. The more accounts you have reporting on-time payments, the stronger your credit score will be.

Your credit history consists of a number of things including:

  • How many accounts are reporting payments?
  • How long have you had each account?
  • What type of accounts are they?
  • How much credit are you using on each account versus how much is available?
  • Are you making your payments on these accounts consistently on time?

Personal credit scores come from several metrics. But business credit mainly depends on one thing, how early or late you pay your credit bills. Paying late will damage your business credit scores at all three of the major CRAs.

Improving Your Business’s Payment History

Here are a few suggestions on how to improve your company’s payment history:

  • Set up reminders to pay – your phone or your business calendar are both fine
  • Set aside money for your credit bills as a part of your budget so you’re not caught short
  • Shop around for better deals and spend less if you can
  • Repurpose older equipment or the like to avoid spending in the first place

Improve Your Chances with Small Business Lenders by Building Business Credit

Business credit is credit in the name of the business, not its owner(s). It’s a measure of how well your business (not you) pays its bills. Properly created business credit separates personal and business credit completely. So if your business defaults on payments or goes bankrupt, it protects your personal assets.

Good business credit is the way to qualify for funding without good personal credit, collateral, cash, or a guarantor. Here are some tips on building business credit to improve your chances for financing from small business lenders.

Buy from Vendors and Other Credit Providers Which Report

While many vendors and credit providers don’t report all payment experiences, they have no problem reporting late and missing payments. So, seek out and mainly (if not 100%) work with vendors which report. These are called starter vendors. Their requirements change all the time. Fortunately, we know which vendors report, and we keep up with their ever-changing requirements.

Spread Out Your Credit Applications Over Time

Asking for too many lines of credit at once signals that you’re desperate and could be overextending yourself. Building a successful business takes time. In the same way, so does building a good business credit profile. As a result, spread your applications for additional lines of credit over time.

Applying for a lot of credit at once also means you’ll have a number of brand-new accounts, which will bring the average age down. Not using your credit can result in credit providers closing inactive accounts. This, too, brings the average age down.

Use Your Credit

Business credit isn’t going to be built if you get cards and then forget about them and never use them. The business credit reporting agencies are calculating your scores based on the credit you use. Using your credit, and paying on time, is positive fodder from business credit scores and reports. You can’t control the passage of time, but you can control card usage and not apply for every credit card you see all at once.

Finally, Apply for the Right Loan

Do you need a traditional loan or a line of credit? Would a working capital loan or expansion loan work best for your needs?  Choosing the right product to apply for can make all the difference. Don’t waste yours and the lender’s time by not considering the best loan product to apply for.

Improve Your Chances for Approvals from Small Business Lenders: Some Takeaways

There are steps you can take to make it more likely your business will get a loan. These steps may also help your business become more appealing to prospects. They also help with building business credit. And applying for the right loan product will also help improve your chances of getting a business loan from small business lenders.

The post Improve Your Chances of Getting a Loan with Small Business Lenders appeared first on Credit Suite.

There are Terrific Grant Funding Opportunities Out There for Small Businesses

Check Out Exceptional Grant Funding Opportunities

Are you looking for grant funding opportunities? Grants are exceptionally competitive, and they often require filling out a lot of paperwork. Still, if you can get them, they are essentially free money. So, if you feel you have a better than 50% chance, then it makes sense to go after appropriate grants.

It tends to help if you are a member of a minority or a protected class. Also, it can help if you are bringing in something new to an area that needs it. For example, rural electrification grants seem to always be available.

Let’s start with entrepreneurs who are members of minorities and protected classes.

Business Grant Funding Opportunities for Women

As female entrepreneurs continue to come into their own, the government and private ventures offer more grant funding opportunities. Here are a few to get you going.

Amber Grant

Women have some great grants open to them. The Amber Grant awards one prize of $10,000 per month to a woman-owned business. One of the recipients also receives an additional $25,000 grant at the end of the year. Applicants only need to tell their story and turn it in with a $15 application fee. See ambergrantsforwomen.com/get-an-amber-grant/apply-now

Cartier Women’s Initiative Award

Businesswomen can also try for a Cartier award. This award is for women of all classes and groups. The Cartier Women’s Initiative Award has a regional category award and a science and technology award. The regional award is $100,000 for first place, with $30,000 for second and third place.

The award goes to three women from each of seven international regions. This award is a grant to 21 female business owners from around the world each year. Women business owners who are just getting started may qualify. Look over the complete application for more information. See cartierwomensinitiative.com/about-us

Cartier Science and Technology Pioneer Award and Fellowship

The Cartier Science and Technology Pioneer award is new as of 2021. With this award, three more women impact entrepreneurs at the forefront of scientific and technological innovation will be recognized for a new thematic award. Open to women entrepreneurs from any country and sector, this award will highlight disruptive solutions built around unique, protected, or hard-to-reproduce technological or scientific advances.

The laureate will be awarded a $100,000 grant. Each of the two remaining finalists will receive a $30,000 grant.

Cartier also offers a fellowship program. The fellowship is an educational program geared towards the 24 fellows selected each year. This program aims to equip the fellows with the necessary skills to grow their business. Also, it helps them to build their leadership capacity by drawing upon the experience and expertise of an array of academics, practitioners, industry experts, and entrepreneurs.

The fellowship isn’t exactly a grant. But while it’s not a monetary award, the mentoring and networking opportunities could be worthwhile to apply for. See cartierwomensinitiative.com/fellowship-programme.

Demolish your funding problems with 27 killer ways to get cash for your business.

Grant Funding Opportunities for Black Business Owners

Entrepreneurs who are African American have other choices when it comes to grants. And for persons who are members of more than one minority – such as black women or people who are both Asian and Native American – there are more choices.

National Black MBA Association Scale-Up Pitch Challenge

Also known as NBMBAA, the Scale-Up Pitch Challenge has cash prizes ranging from $1,000 to $50,000. The association states its purpose is to help newer businesses that have an African American ownership. This is a pitch competition for startup businesses. See nbmbaa.org/scale-up-pitch-challenge.

The Minority Business Development Agency

The Minority Business Development Agency (MBDA) is operated by the US Department of Commerce. It is dedicated to helping minority-owned businesses access the resources they need to grow and succeed. The MBDA is for both men and women. Grant competitions are regularly changing.

Visit the MBDA’s website for information on all current opportunities. Currently, the MBDA helps its members apply for grants via Grants.gov. This involves help with how to apply for government grants. See mbda.gov/grants.

Enterprising Women of Color Initiative

The MBDA oversees the Enterprising Women of Color (EWOC) Initiative. The initiative works to focus on the fast-expanding minority women entrepreneur population as a revenue generators for families, communities, and the nation. Minority women are the fastest growing population of entrepreneurs. While many women are making tremendous strides in the business world, they still face obstacles as entrepreneurs.

MBDA serves as an advocate for women’s economic empowerment, by supporting efforts to advance women’s equality and promote women economic advancement programming. The vision of EWOC is to ensure women worldwide to reach their economic potential. See mbda.gov.

Grant Funding Opportunities for Native American Entrepreneurs

The Native American Business Development Institute (NABDI) Grant

Are you all or part Native American? Then check out this grant.

The NABDI Grant is funded by the US Department of the Interior’s Bureau of Indian Affairs. It provides funding to business owners of Native American or Alaskan Native descent. In 2019, the program provided more than $727,000 to 21 indigenous tribes, to support economic feasibility studies for specific economic development projects or business startups.

For 2020, NABDI planned to award 20-25 grants. There is no minimum or maximum amount of funding that can be requested, but most awards range in value from $25,000 to $75,000. They only fund projects for one year at a time, which is when they expect projects to be completed. To apply for a NABDI grant for your proposed economic development feasibility study, go to bia.gov/service/grants/tedc/apply-nabdi-grant.

Indian Affairs

For business owners with Native American heritage, there is more available via the Bureau of Indian Affairs. Businesses owned by Native Americans can get financing from the federal government through the Indian Affairs branch. An individual can fill out an application for up to $500,000, but business entities and tribal enterprises may apply for more.

Potential borrowers can apply with any lending institution, they just have to use the application for Indian Affairs. There are additional requirements if you use the funds for construction, renovation, or refinancing. In general, you must supply a list of collateral, a credit report, and an analysis of business operations. See bia.gov/as-ia/ieed/loan-guaranty-insurance-and-interest-subsidy-program.

First Nations Development Institute Grants

The mission of this group is to offer grants that help Alaska Natives, Native Hawaiians, and Native Americans. They help in the application process in addition to funds. First Nations also helps point individuals to appropriate grants offered by other organizations, including the US government. This includes help with writing grant proposals. See firstnations.org/grantmaking.

Demolish your funding problems with 27 killer ways to get cash for your business.

Grant Funding Opportunities for South Asian Entrepreneurs

The South Asian Arts Resiliency Fund

If your business is in the arts, and you’re also of South Asian descent, then check out this fund. The fund is run by the India Center Foundation. It supports US-based South Asian arts workers impacted by the COVID-19 pandemic.

The fund will disburse grants up to $2,000, depending on financial need to US-based arts workers of South Asian descent. This includes those in the performing arts, film, visual arts, and literature with heritage from Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. Initial funding for the program is $20,000, but the India Center Foundation is soliciting donations to expand the grant program.

Eligibility for The South Asian Arts Resiliency Fund

To be eligible, applicants must be of South Asian descent. Also, they must work in the arts and demonstrate loss of income due to COVID-19. Also, applicants must be:

  • at least 21 years old
  • not enrolled in a degree program, and
  • able to receive taxable income in the US

You can put grant funding toward any artistic project you can develop, create, and present. It must be within four to six weeks of getting funding. See theindiacenter.us/artsfund.

Demolish your funding problems with 27 killer ways to get cash for your business.

Grant Funding Opportunities for Science-Based Businesses

The National Science Foundation supports small businesses with contracts and grants. They award nearly $190 million annually to startups and small businesses. This is through the Small Business Innovation Research (SBIR)/Small Business Technology Transfer (STTR) program.

The idea is to support transforming scientific discovery into products and services with commercial and societal impact. These grants support R&D across almost all areas of science and technology. To learn more about SBIR/STTR, visit https://seedfund.nsf.gov. See also nsf.gov/funding/smallbusiness.jsp.

Grant Funding Opportunities in Response to the Pandemic

The Verizon Small Business Recovery Fund

The Verizon Small Business Recovery Fund is new. It was established in response to the COVID-19 pandemic. The fund offers $10,000 to successful applicants. The fund is specifically focused on providing grants to business owners of color, women-owned businesses, and other underrepresented entrepreneurs. See lisc.org/covid-19/small-business-assistance/small-business-relief-grants/verizon-small-business-recovery-fund

Grant Funding Opportunities from the US Government

Grants.gov

Grants.gov is a running list of more than 1,000 available federal government grants. The website compiles grants from over two dozen government agencies. Such as the SBA, USDA, and the US Department of Commerce. To find a grant right for your business, use the Search Grants tool on the website. You can sort through the list of grants by keyword or opportunity number.

The USDA is where those rural electrification grants are.

Once you have located the grant you wish to apply for, click the opportunity number for more detail. There, you will find more information about the specific grant as well as any associated documentation you may need. To apply for a grant through Grants.gov, you must first register. Then, you can download an application package for the grant you want to get. Be ready for a lengthy process. See grants.gov.

Alternatives to Grants: Crowdfunding

If you would rather not rely on grants so much to fund your business, crowdfunding is a viable option. Keep in mind, not everyone with a campaign on a crowdfunding site is successful. More unique products and services tend to do better. Kickstarter and Indiegogo are two of the most popular crowdfunding platforms to use. Some platforms may have higher success rates than others.

Alternatives to Grants: Angel Investors

Angel investors are informal investors. Essentially, you are selling a part of your business to them. They tend to not want a huge percentage of your business. Also, they won’t pass by more conventional businesses, like with crowdfunding and venture capital. Hence they can be another supplement or replacement for grants.

Alternatives to Grants: Loans

If grants aren’t an option, loans might work for you.

Business Center for New Americans

If you’re an immigrant, try the Business Center for New Americans. They offer a pilot program for microloans up to $75,000. They work with immigrants, refugees, women, and other minority entrepreneurs. The goal is to help minority business owners who have not been able to get traditional financing. Terms are 3% interest. Loan repayment term goes up to a year. See accompanycapital.org.

Grant Funding Opportunities: Takeaways

The government and private organizations want to GIVE you money! Grants are a great way to supplement other business funding. And they are still worth the effort to apply. So there really isn’t anything to lose except time – it’s free money.

There are several grant funding opportunities out there for entrepreneurs. Members of minorities and protected classes tend to get some preference. But all entrepreneurs should apply for whichever grants they feel they are most likely to get. Also, other options for funding include crowdfunding, angel investors, and loans. Credit Suite can help you get the funding you need.

The post There are Terrific Grant Funding Opportunities Out There for Small Businesses appeared first on Credit Suite.

10 Small Business Examples of the Best Instagram Bios

Instagram is extremely popular. The image-heavy platform is the fifth most-used social media network in the world, with over 1.2 billion users. If you don’t have a presence on Instagram, you’re missing out on building an audience and increasing your sales. To get the most out of Instagram, you should create a solid Instagram bio …

The post 10 Small Business Examples of the Best Instagram Bios first appeared on Online Web Store Site.

10 Small Business Examples of the Best Instagram Bios

Instagram is extremely popular. The image-heavy platform is the fifth most-used social media network in the world, with over 1.2 billion users.

If you don’t have a presence on Instagram, you’re missing out on building an audience and increasing your sales.

To get the most out of Instagram, you should create a solid Instagram bio so users can get a clear, concise idea of who you are, what you’re about, and, most importantly, what you can offer them.

Here are ten of the best Instagram bios for small businesses and explain why they’re excellent. We’ll also include tips for crafting a strong bio and what must-haves to include on your company account.

10 of the Best Instagram Bios for Small Businesses

Here are several small-business Instagram bios that hit the mark and why. We’ve also included takeaways you can use for your own company.

1. Ellevest

best Instagram bios - ellevest instagram page bio

Ellevest is a digital investing platform. CEO Sallie Lee Krawcheck co-founded the company to empower women to take greater control over their financial future.

Why This Instagram Bio Is Great

The Ellevest Instagram bio works because it clearly states who the business is for (by women, for women), the industry it’s in (financial services), and the type of business model it uses (membership-based). This gives the reader a good idea of the target audience and what they’ll achieve through the service.

The company also includes a Linktree link in its bio, a platform allowing you to showcase additional links to content you want to share with your followers. This link points users to multiple brand blog posts and membership webpages.

You can borrow this for your own small business. After all, a Linktree link isn’t just a content-sharing opportunity: You can walk people directly to your landing pages via Instagram, cutting through the noise so they can more easily buy from you.

2. Pura Vida Bracelets

best instagram bios - pure vida

Pura Vida, which translates to “Pure Life,” is more than just a bracelet retailer. The company has a community of over 800 artisans in countries such as Costa Rica, El Salvador, and India who earn money crafting homemade jewelry.

Why This Instagram Bio Is Great

First off, the Pura Vida Bracelets Instagram bio is structured with various emojis, which saves space and gives off a fun vibe. “Fun” works here because the company features tons of colorful images of smiling people modeling the products—it’s on-brand.

Second, the emojis-as-bullet-points help clearly state the bio’s main areas of focus, particularly “FREE SHIPPING.” This is good for small businesses to highlight, especially if your main competitors don’t offer it.

Lastly, the branded hashtag, #PuraVidaBracelets, is a nice touch. Small-business retailers should consider implementing a personalized hashtag as a way to social-listen and reshare UGC across social while getting their brands’ names out there.

3. The Freckled Hen Farmhouse

best instagram bios - the freckled hen farmhouse

Created by lifestyle blogger Natalie Freeman and her husband Luke, The Freckled Hen Farmhouse is both a brick-and-mortar and online shopping destination. This general store has everything from home goods to local products to garden supplies.

Why This Instagram Bio Is Great

The Freckled Hen Farmhouse Instagram bio doesn’t cater to one audience over the other. Instead, it caters to both in-person and online shoppers.

The bio includes its store hours, local delivery options, and phone number. Additionally, the company plugs its rental cottage in the bio, adding more opportunities for loyal customers to spend money on the brand. Finally, it includes a Linktree link leading to its store website, newsletter sign-up page, and seasonal and year-round category pages.

If you’re a small business with an online and offline space, it’s a smart idea to speak to all your customers in your Instagram bio.

4. Lush Cosmetics

best instagram bios - lushcosmetics

Lush is a values-driven brand. Founded in London, the cosmetics company prides itself on fresh products, no unnecessary ingredients, and cruelty-free testing.

Why This Instagram Bio Is Great

Unlike our other examples, the Lush Cosmetics Instagram bio keeps it short and sweet, saying, “We’re creating a cosmetics revolution to save the planet,” followed by two emojis, its branded hashtag, and a Linktree link.

The message is direct, and words and phrases like “revolution” and “save the planet” feel bold and exciting coming from a makeup brand. Similarly, small brands can, and should, experiment with how they describe their company, as long as it feels relevant—otherwise, it will come off as confusing, or worse, inauthentic.

This bio is a good reminder, too, that just because you have more space doesn’t mean you need to use it. That in itself is a departure from jam-packed bios and even a bit surprising. Our brains like novelty, so don’t be afraid to do things a little differently for your business.

5. Later

best Instagram bios - later instagram page bio

Later is a leading Instagram marketing platform. The company boasts millions of users, and social media professionals, brands, and influencers can use the tool to manage content across Instagram, Pinterest, and even TikTok.

Why This Instagram Bio Is Great

There are a lot of things working for the Later Instagram bio. First, the company does a great job expanding the copy beyond its name to better reach users on the platform who may be looking for this type of service (social marketing platform).

By improving its Instagram SEO with relevant keywords, the brand increases its chances of being found. Plus, “Later” is a common word, so it’s good to add more context for searchers.

Next, the company states it’s the “#1 Marketing Platform for Instagram.” Piggy-backing off SEO, this is good to market to potential users.

Small businesses can optimize their bios with applicable keywords and feature brag-worthy accomplishments to get readers’ attention.

6. ALOHA

best Instagram bios - aloha instagram page bio

ALOHA produces USDA organic, vegan, and gluten-free protein powders, drinks, and foods. The brand shares plenty of recipes and UGC on its site and social media platforms.

Why This Instagram Bio Is Great

Taking a page out of Later’s book, the ALOHA Instagram bio asserts the company as its industry’s leader. While the brand keeps the copy to a minimum, it focuses on the keywords its customers care about, like “organic” and “plant-based.”

ALOHA also changed its profile picture to showcase it was named a Certified B Corporation. These companies must meet strict social and environmental standards, among others. If your small business has a prestigious distinction or won a big award, it’s worth highlighting it in this space.

7. Lokal

best Instagram bios - lokal hotel instagram page bio

A husband-and-wife duo created the Lokal Hotel after dreaming up ways they could improve the Airbnbs where they’d stayed and the hospitality experience in general. This home-away-from-home brand offers hyper-local lodging in the Philadelphia and Southern New Jersey regions.

Why This Instagram Bio Is Great

The Lokal Hotel Instagram bio covers a lot of ground. It includes a specific category, “boutique hotels | cabins” instead of just “hotel,” so those seeking this particular experience can find it, and expands on this with “apartment suites & homes.”

On top of the location and branded hashtag, the bio points out the Linktree where guests can book their stay, sign up for its newsletter, and more.

Other small businesses, especially those in this space, can take a few cues from this bio. By keeping all this information centralized, you could keep potential guests engaged and on your page longer.

8. GOODEE

best Instagram bios - goodee instagram page bio

GOODEE is a top online marketplace. Designers and entrepreneurs Byron and Dexter Peart founded the company to curate brands that not only looked good but sparked good too. As such, they only work with artisans who prioritize positive environmental or social impact.

Why This Instagram Bio Is Great

The GOODEE Instagram bio lays out what the business is (a curated marketplace) and its focus (good design meets good purpose). Like ALOHA, pointing to the company’s B Corp designation and 1% for the Planet certification aligns with its mission and signals to consumers what’s important to the business.

This is both sincere and savvy: 72 percent of U.S. consumers believe it’s important “to buy from companies that reflect their values,” according to Retail TouchPoints.

So, if your small business is values-driven, don’t shy away from including that in your marketing and messaging. After all, the customers you seek are also seeking you.

9. Rumpl

best Instagram bios - rumpl instagram page bio

Rumpl operates in the outdoor-industry space and helps keep campers and adventurers warm. After a successful Kickstarter launch, the company continues to grow and expand its inventory.

Why This Instagram Bio Is Great

There’s beauty in the simplicity of the Rumpl Instagram bio. It mentions its best-known item—blankets— and gives a brief, relatable description of the materials in them. The company also mentions its “Shark Tank” appearance and includes a branded hashtag and link to a current giveaway.

Instagram contests are popular and can help accelerate your brand growth. This is especially true if you partner with another company and can leverage each other’s audiences. It’s something your small business should consider (and then promote in your Instagram bio, of course!).

10. Letterfolk

best Instagram bios - letterfolk instagram page bio

This home-decor biz produces letter boards, tile sets, paper goods, and more. A married couple founded Letterfolk, and the company has developed a big following thanks to its thoughtfully designed products and national press hits.

Why This Instagram Bio Is Great

Instead of using the company’s Instagram bio to direct followers to use certain hashtags, Letterfolk invites its followers to check them out, saying, “See LF products in the wild,” followed by relevant hashtags. Using this hashtag, consumers can view how other people use and display their products. By making this tweak, it feels more community-oriented right away.

Another notable distinction: It’s stated in the bio that Joanna and Johnny are not only a husband-and-wife team but also a small business.

Since some shoppers specifically look to buy from smaller companies, this is an excellent way to get in front of potential shoppers. If you don’t call-out your small-biz standing in your bio, consider adding it and see if there’s an increase in engagement.

5 Tips for Creating the Best Instagram Bio for Your Small Business

Now that you’ve seen examples of some of the best Instagram bios for businesses, let’s recap the top ways to make yours stand out.

1. Use Creative Elements

Some brands add emojis to the mix in their Instagram bios. Aside from highlighting your brand’s personality, these icons can help influence readability. This could help your messaging stand out. So, you might want to try cutting back on copy and increasing white space by including emojis.

Brands can also change up font styles in their Instagram bios. This adds variety. However, be careful to make sure the script is readable, and don’t overuse it.

2. Show Your Brand’s Personality

You want to capture your brand’s personality in your Instagram bio. Experiment with copy, emojis, and other creative ways to show it off.

Don’t be afraid to play around a bit and have fun with your followers, either. Drizly’s Instagram bio comes to mind:

best Instagram bios - drizly instagram page bio

Be careful not to mistake “social media” as an excuse to depart from your familiar brand voice, though. For example, a hospital using laughing emojis in its bio wouldn’t be a fit—and might even make patients nervous! Alternatively, seeing emojis on the BarkBox Instagram bio feels completely in-line with the company’s fun reputation.

Bottom line: Know your brand and know your audience.

3. Share User-Generated Content

You don’t need to develop a campaign to create a hashtag—though it doesn’t hurt. Creating a hashtag unique to your small business is a good way to create brand awareness and help build your community.

Craft a hashtag that includes your company name or captures your ethos. For instance, if you think #JustDoIt, chances are, your brain goes to Nike.

From there, you can encourage your customers to include your hashtag in their social posts and reshare that user-generated content (UGC) on your channels.

You can also repurpose UGC for stories and other content. Incentivize users to share posts with your hashtag for discounts, contests, or just the opportunity of possibly featuring them on your platforms.

4. Clearly State Your Brand’s Purpose

You only have so many characters to work with in your Instagram bio. Use this space to clearly state what your small company does and be direct in your ask. For example:

  • Do you want to build a community? Include your branded hashtag and ask followers to use it.
  • Are you looking for newsletter subscribers? Include a link in your bio.
  • Are you looking to increase sales? Add a Linktree pointing to multiple product pages so users can find what they’re looking for.

Whatever your goal, be clear about it.

5. Include Links, Hashtags, and More

You have a hard stop when it comes to characters within the bio itself. However, there are options to expand on more details about your business and even cross-promote your other companies or personal pages. Consider including the following:

  • intentional calls to action (CTAs)
  • Instagram handles for your other related brands
  • your location and hours of operation if you own a physical store
  • your contact information
  • your branded hashtag
  • links to current promotions or contests
  • a Linktree (or similar) link leading readers to other content

Conclusion

The best Instagram bios authentically match your brand and serves your users.

Checking out the bios of the pages we’ve listed can help you get a feel for what’s working across the board. Also, see what your competitors are doing, and don’t be afraid to experiment with different formats.

Social media is an important aspect of digital marketing. Our agency can help if you are having trouble developing a social media strategy. We also offer assistance with content marketing and SEO.

Once you’ve polished your page, Instagram can be a powerful marketing tool for your business. So don’t skimp on putting the work into it.

What do you like about your favorite brands’ Instagram bios?

Small Business Inventory Loans

What are Small Business Inventory Loans? 

You may have heard the term small business inventory loans. But do you really know what it is all about? We break it all down for you right here. This form of funding just might be perfect for your business. It’s also called inventory financing.

According to a definition from Investopedia – “Inventory financing is a revolving line of credit or a short-term loan that is acquired by a company so it can purchase products for sale later. The products serve as the collateral for the loan.” See investopedia.com/terms/i/inventory-financing.asp.

You can get a low rate credit line. And all you need to do is use your current inventory as collateral. Inventory is valuable! It is perfect for collateral for small business inventory loans.

Check out these Credit Line Details

Keep in mind that your inventory must be worth $500,000 or higher. You can get approval for a line with low rates, regardless of your personal credit quality.

You can get approval for a line of credit for 50% of inventory value. Rates are usually 5 – 15% depending on type of inventory. And you can get funding within 3 weeks or less. It can’t be lumped together inventory, like office equipment.

With inventory financing, there may be restrictions on the type of inventory you can use. This can include not allowing cannabis, alcohol, firearms, etc., or perishable goods. And there can be revenue requirements. There may also be minimum FICO score requirements.

Let’s look at Qualifying for Small Business Inventory Loans

You will not need financials, or good personal credit. Your business must have existing inventory now that is valued over $500,000. Lender will also check the quality of your inventory management system.

The inventory might be of supplies, retail merchandise. materials used to produce your product, or other non-obsolete inventory. The lender will review your existing inventory. If you have inventory that qualifies you can get approval quickly with just a review of your inventory records.

You Can Get Fast Funding with Inventory Financing

After the lenders review your inventory summaries, you can get your initial approval and funding in 3 weeks or less. And you can get a working capital credit line to use for whatever purposes you need.

But What if You Have Credit Issues? 

This program is perfect for business owners with credit issues. Lenders are not looking for, nor do they require good credit to qualify. You can even get approval for a credit line with low rates, even with severely challenged personal credit and low credit scores.

You can get approval regardless of personal credit quality. So this is even if you have recent derogatory items and major collections on your credit report. This is one of the best and easiest business financing programs in existence that you can qualify for. And you can get really good terms even with severe personal credit problems.

Demolish your funding problems with 27 killer ways to get cash for your business.

What are the Benefits of Inventory Financing?

Get 24 hour preapproval and get secure financing of 50% of your inventory value. It is just an easy inventory review for approval. And you will pay no application fees.

You can get approval even with poor credit. Go from application to funding in 3 weeks or less. You can get approval with no revenue requirements. This is low rate financing. Enjoy credit line amounts range up to $500,000.

What are the Approval Amounts? 

You can get up to $500,000, and bad credit is accepted. Your inventory serves as your collateral. No financials are necessary.

Let’s Look at Qualifying for Inventory Financing from Credit Suite

You will need over $300,000 in inventory. So, this means no jewelry, apparel, highly seasonal items, or high tech items subject to rapid obsolescence.

What do the Approval Amounts Depend on? 

You can get approval for $150,000 or more. The approval amount is based on the actual value of the inventory. You can get approval for financing up to 50%.

What are the Interest Rates? 

Interest is very low. It is typically as low as 2% monthly. And you can get approval in 3 weeks or less.

What if Small Business Inventory Loans are Impossible to Get Now? 

There are other ways to get financing for your business. Your business – and you – have assets beyond inventory. And you can tap these assets as collateral. You can use a 401(k) or IRA, accounts receivable, or stocks or bonds. Did you know that the 401(k), stocks, or bonds do not even have to be yours? You can work with a partner with these kinds of assets.

Check out Securities-Based Financing

So you can use existing stocks as leverage to get business financing. Borrow as much as 90% of their value. You continue to earn interest on the stocks pledged as collateral. And closing and funding takes less than 3 weeks.

Take a Look at 401(k) Financing

You can use your existing 401(k) or IRA as collateral for business financing. This program uses IRS proven strategies, called ROBS. And you will pay no tax penalties.

You still earn interest on your 401(k). Pay low rates, often less than 5%. And you can close and fund in less than 3 weeks. You can usually get up to 100% of what is “rollable” within your 401(k).

Note: your 401(k) has to be with a company that is no longer employing you.

Demolish your funding problems with 27 killer ways to get cash for your business.

What about Accounts Receivable Financing? 

You can use your outstanding account receivables for financing. In this instance, you can get as much as 80% of receivables advanced ongoing in less than 24 hours. The remainder of the accounts receivable are released as soon as the invoice is paid in full. And closing takes 2 weeks or less. Pay factor rates as low as 1.33%. These are accounts receivable credit line with rates of less than 1% with no consumer credit requirement.

The receivables should be with the government or another business. If you also have purchase orders, you can get financing to have those filled. And you will not need to use your cash flow in order to do so.

Check Out what OnDeck has to Offer

OnDeck offers inventory loans and business lines of credit. Term loans run $5,000 to $250,000, with 12-month terms, paid back daily or weekly.

Their lines of credit run from $6,000 to $100,000. Pay back over 12 months, with automatic weekly payments. Find them online at ondeck.com/loantype-inventory-loans.

Or how about an Amazon Corporate Credit Line? 

Do you have an online business? Then you can get a revolving credit line from Amazon. Make minimum payments or pay in full monthly. Pay 12.99% purchase APR (minimum interest charge is $1). You get an option to apply as a personal guarantor to build business credit. And you will enjoy 24/7 Customer Service.

Consider Amazon Lines of Credit and Working Capital Loans

If your business is eligible, you will see funding options when you log into Seller Central. Currently, lines of credit are offered by Marcus by Goldman Sachs. Loans come from Amazon Lending – specific terms are tailored to the business. Get access to loan funds within 5 days. Learn more at sell.amazon.com/programs/amazon-lending.html.

Demolish your funding problems with 27 killer ways to get cash for your business.

Small Business Inventory Loans: Takeaways

Your inventory is a valuable business asset. You can leverage it to get business funding. Get approval with excellent terms, even if your personal credit is not so hot. And consider alternatives like 401(k) financing or OnDeck and more if you can’t get small business inventory loans right now.

The post Small Business Inventory Loans appeared first on Credit Suite.

Comparing Types of Small Business Loans

Businesses need funding. It’s that simple. You would be hard pressed to find a business owner that doesn’t know that. However, what many do not know, is that there are more options than just traditional bank loans. In fact, here are 6 different types of small business loans, and that is just the tip of the iceberg. 

7 Types of Small Business Loans and Which One Is Right for You

Knowing the different types of small business loans is only half the battle.  Then, you have to figure out which one is right for your business.  The answer will depend on a number of things. Sometimes, you may not even get a choice. You may have to take what you can qualify for.  Still, knowing your options is the first step. Then, you can work on putting your business in a position to qualify for what will work best if you aren’t there yet. 

What Types of Small Business Loans are Most Common? 

  1. Types of SBA Loans

There are several types of SBA loans.  These are small-business loans guaranteed by the Small Business Administration and issued by participating lenders, mostly banks. They can guarantee up to 85% of loans of $150,000 or less, and loans that are more than $150,000 they will guarantee up to 75%. The maximum loan amount they offer is $5 million. 

Due to the fact that these are SBA loans, meaning that they have a government guarantee, financial institutions are able to offer them at lower interest rates.

types of small business loans Credit Suite

Credit Line Hybrid Financing:  Get up to $150,000 in financing so your business can thrive.

What are the SBA Loan Options? 

Again, there are many types of SBA loans for various kinds of businesses and needs. Here are just a few. 

7(a) Loans 

This is the Small Business Administration’s flagship loan program. It offers federally funded term loans up to $5 million. The funds can be used for expansion, purchasing equipment, working capital and more. Banks, credit unions, and other specialized institutions, in partnership with the SBA, process these loans and disburse the funds.

504 Loans

These loans are also available up to $5 million and can buy machinery, facilities, or land. They are generally used for expansion.  Private sector lenders or nonprofits process disburse the funds.  Specifically, they work well for commercial real estate purchases.

Microloans 

Microloans are available in amounts up to $50,000. They work for starting a business, purchasing equipment, buying inventory, or for working capital. Contrary to most other SBA loan programs, financing comes directly from the Small Business Administration, with community based non-profits acting as intermediaries.

SBA disaster loans

Available in amounts up to $2 million, these funds are processed directly through the SBA as well. They are available to small-business owners that have been affected by natural disasters.

SBA Express loans

The turnaround for express loans is much faster, with the SBA taking up to 36 hours to give a decision. Necessary paperwork for application is less also, making express loans a great option for working capital, among other things, if you qualify. 

What Are the Best Government Small Business Loans? 

The 7(a) program is by far the most versatile. The funds can be used for a number of business needs. If you qualify, they are a great option. Credit Suite can help you get funding through this program. 

  1. Types of Small Business Loans: 401(k) Financing

Your existing 401(k) or IRA can help fund your business as well. The funds work as collateral for business financing. This program uses IRS proven strategies. Furthermore, you will pay no tax penalties, and you still earn interest on your 401(k). Rates are low, and this option usually has a quick closing and funding process as well. 

  1. Types of Small Business Loans: Merchant Cash Advances

If you accept credit cards as payment, you may qualify for a merchant cash advance.  The minimum credit score is 500.  Also, your business must bring in $100,000 or more per year in credit card sales.  Typical approval amounts equal one months’ credit processing volume.  So, you’ll also need 3-6 months of bank and merchant statements. 

  1. Types of Small Business Loans: Equipment Financing

This is one way to get financing to buy or lease new equipment.  Rates vary widely based on risk factors, but usually you can get approval with a credit score of 650 or better.

The lender will undervalue equipment by perhaps up to 50%. Remember, this is on major equipment only. Lenders won’t combine a lot of small equipment. You can get loans up to $2 million.

Equipment Sale – Leaseback

If you already own your equipment free and clear, you can use it as collateral for financing. The process involves selling the equipment to a lender for cash. Then, you lease it back from them. You need at least one larger piece of higher value equipment to qualify, and you can get funding in as little as 3 weeks.

types of small business loans Credit Suite

Credit Line Hybrid Financing:  Get up to $150,000 in financing so your business can thrive.

  1. Types of Small Business Loans: Credit Line Hybrid

One type of loan many business owners do not know about is  the credit line hybrid.   It allows you to fund your business with no collateral and typically very low interest rates.  No financials are required. Furthermore, it reports to the business credit reporting agencies. As a result, you build business credit, which will help you access more funding in the future. 

  1. Types of Small Business Loans: Traditional Business Lines of Credit

A traditional business line of credit is like a cross between a traditional loan and a business credit card. You go through a traditional bank and apply just like you would a loan.  It may be collateral based or not, depending on your lender’s requirements.  You may also use a guarantor to help reduce rates and get better terms if needed. 

The difference between a traditional loan and a traditional business line of credit is that the line of credit is revolving credit rather than a term loan. Like a credit card, you only pay back what you use. Also, lines of credit typically have lower interest rates than business credit cards. The trade off is, there are no rewards like cash back or air miles.

What is the Best Type of Loan for My Business?

Truthfully, the answer to this question varies. It depends on the specific situation your business is in at the specific time you need funding. The answer now may not be the answer later. However, here are some ideas of types of small businesses and situations that each option may work well for. 

SBA Loans

SBA government loans are an option for many business owners that find themselves stuck in the middle. For example, they may not qualify for a straight traditional loan, but still want to benefit from the lower rates and better terms these loans can offer. With a credit score slightly below what the banks typically require, many business owners can qualify for these government guaranteed loans.

401(k) Financing and Equipment Financing 

These types of small business loans are great for those business owners that have these assets to leverage.  They offer low rates and do not require credit scores as high as some other options. In fact, with the 401(k) financing, credit really isn’t an issue at all. The trick is, you just have to have a 401(k). If you do, and meet the requirements, these options can be a great way to get business funding

Merchant Cash Advance

This program is ideal for business owners who accept credit cards and need cash fast.  See, an MCA program is designed to help you get funding based strictly on your cash flow. As a result, you usually only have to provide your business bank statements. Generally, you do not have to submit a ton of documents.

You can get a merchant cash advance through Credit Suite. In fact, our merchant financing program is perfect for business owners with credit issues. Honestly, lenders are not looking for, nor do they require good credit to qualify. You can be approved for as much as $500,000 in financing with no collateral requirements and bad credit. 

Credit Line Hybrid

Maybe you do not do a lot of credit card business and still need funding. In that case, the credit line hybrid may be for you. You can usually get a loan of 5x the amount of your highest revolving credit limit account, up to $150,000. Honestly, this is more than what you could get on your own when applying for credit cards. Furthermore, you can get cash out on this program.

types of small business loans Credit Suite

Credit Line Hybrid Financing:  Get up to $150,000 in financing so your business can thrive.

Also, there is no impact on your personal credit with this type of financing. You need a 680+ credit score, but if you don’t meet that you can take on a credit partner who does. A lot of business owners use the good credit of friends or family to help them get the funding they need. 

Traditional Merchant Cash Advance

If you have strong personal credit and want the flexibility of revolving credit without the interest rates of a credit card, then this is for you. 

What are the Best Types of Small Business Loans? 

The answer to this question is not as cut and dry as it may seem.  There are a number of factors that make a difference. First, it depends on the needs of your business. Then, you have to consider what types of small business loans your business actually qualifies to get. 

The key to ensuring not only that you get the business funding you need right now, but that you are eligible for the best funding options for your business in the future, is to work with a business credit expert. They can guide you to the best funding now, and help you put yourself in a position to have even better options next time.

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Comparing Types of Small Business Loans

Businesses need funding. It’s that simple. You would be hard pressed to find a business owner that doesn’t know that. However, what many do not know, is that there are more options than just traditional bank loans. In fact, here are 6 different types of small business loans, and that is just the tip of … Continue reading Comparing Types of Small Business Loans

7 Types of Small Business Loans for Women with Bad Credit

If you have bad credit, it can be hard to find small business loans regardless of gender. If you are a female business owner, with bad credit, it may help to look for lenders that offer certain types of loans, rather than small business loans for women with bad credit specifically. 

What’s Best As Far as Small Business Loans for Women With Bad Credit

There are certain types of funding that work well for all business owners with bad credit, including women. 

Small Business Loans for Women with Bad Credit: Credit Line Hybrid

The credit line hybrid is unsecured business financing.  It is available to pretty much anyone for any type of business expense. You can use it for real estate, equipment, working capital, and even startup expenses.  Not only that, but there is no security required.  Furthermore, there is no down payment, and you do not have to provide income documentation. It is completely no-doc financing. 

Now, you do have to have strong personal credit.  A credit score of 680+ is necessary.  Also, there cannot be any late payments in the past 12 months, there can be no open collections or bankruptcies, and there should be less than 4 inquiries in the past 6 months on your consumer credit report.  There also has to be at least 2 open credit cards with a $2,000 limit or higher with 2 years of good payment history. 

Where does the part about bad credit come into play? Here it is. If you do not meet these requirements, you can take on a credit partner that does meet them. The payments will still be reported on the business’s credit report, so business credit will build whether you get the financing yourself or through a credit partner. 

The best part is, amounts can range up to $150,000, and often interest rates are as low as 0% for the first 6 to 18 months.  

small business loans for women with bad credit Credit Suite

Find out why so many companies use our proven methods to get business loans. 

Small Business Loans for Women with Bad Credit: Business Revenue Lending

If your business has consistent revenue of $120,000 per year or more, you may qualify for this type of funding. Lenders verify revenue using bank statements.  There can be no recent bankruptcies, but the minimum credit score to qualify is as low as 500.  

A business must also be in operation for a year or more, and they must do over 5 small transactions each month to get business revenue financing. 

Small Business Loans for Women with Bad Credit: Merchant Cash Advance

If your business accepts credit card payments and you have at least a 500 FICO, you could get up to $750,000 in a merchant cash advance. Credit rates are usually lower compared to traditional financing as well.  

Your business must bring in $100,000 or more per year in credit card sales, and typically you can get approval equal to one months credit card financing volume. 

Small Business Loans for Women with Bad Credit: Account Receivable Financing

Outstanding account receivables can also be a source of funding for your business. Get as much as 80% of receivables advanced in less than 24 hours. You get the rest of the accounts receivable amount once you collect full payment for the invoice. Closing takes 2 weeks or less. 

Receivables should be with the government or another business. Getting financing with receivables from individuals is not as easy. If you also have purchase orders, then you can get financing to have those filled. You won’t need to use your cash flow to do so.

Small Business Loans for Women with Bad Credit: Equipment Financing

You can secure this type of financing by using existing equipment or new equipment you want to purchase as collateral.  Funding is available up to $10 million. Terms range from 5 to 60 months, and you need a minimum 550 FICO. 

The equipment must be new, and most types of equipment are acceptable, including software. 

You’ll need to provide details on the equipment to be financed and, depending on the loan amount and certain risk factors, you may need to show 2 years corporate and personal tax returns.
small business loans for women with bad credit Credit Suite

Find out why so many companies use our proven methods to get business loans. 

Small Business Loans for Women with Bad Credit: Enterprise SBA Loans

For these loans you have to have collateral worth up to at least 50% of the loan amount, but you only need a FICO of 620.  There also can be no bankruptcies in the past 4 years.  Only for profit companies qualify, and they must have positive trends in sales growth. Generally amounts are available of up to $12 million with terms up to 25-years. 

Small Business Loans for Women with Bad Credit: Real Estate Financing

Likewise, you probably will not be financing real estate with business credit cards, even if it is 0 interest. You can get real estate financing in amounts up to $10 million with terms from 6 to 60 months and interest rates as low as 6%.  You will need a 500 minimum credit score, and there are a few other requirements. 

How to Decide Which Option is Best for You

If you are looking for business loans for women with bad credit, it’s fair to say you aren’t that confident in your credit score.  A business credit expert can help you not only determine which of these options is best for your business, but also help you build fundability so you don’t have to worry about finding funding for your business. If your business is fundable, you can get all the business financing you will ever need. 

Grants for Women Business Owners

One area where you will find funding specifically for women, and credit isn’t an issue, it grants. 
small business loans for women with bad credit Credit Suite

Find out why so many companies use our proven methods to get business loans. 

SBA Women’s Business Centers

In addition to helping with loans, the SBA Women’s Business Centers also help women entrepreneurs get access to other types of funding. Some lend money or award grants directly, while others help connect women entrepreneurs with financial institutions.  Take a look at their website to find out more on how to apply for women owned business grants through this network.

 Eileen Fisher Women Owned Business Grants

The clothing brand Eileen Fisher hands out $100,000 per year to 10 women-owned businesses. To qualify, a woman must have at least 51% ownership, and the business must be in operation for at least three years. Also, it must bring in less than $1 million per year in revenue and have a focus on environmental or social change.  

Amber Grant 

The Amber Grant awards $500 to $1,000 per month to a woman-owned business. One of the recipients also receives an additional $10,000 grant at the end of the year. Applicants only need to tell their story and turn it in with a $15 application fee.   

#GIRLBOSS Foundation Grant 

Specifically for woman-owned businesses in fashion, music, and art, the #GIRLBOSS small business grant awards $15,000.  They also offer exposure via the Girlboss website and social media platforms. Judges rate those applying on creativity, business savvy, planning, innovation in the field, need, and where they plan to work. 

Cartier Women’s Initiative Award 

The Cartier Women’s Initiative Award is $100,000 for first place and $30,000 for second place.  They award the grant to 18 female business owners from around the world each year.  Women business owners who are just getting started may qualify.  

 Business Loans For Women With Bad Credit Do Exist

They really do.  They just aren’t necessarily for women exclusively. Still, if you find something that will work with bad credit, you’ve found gold.  It’s even better if it can be used to build business credit at the same time.  

It does no good to find funding for bad credit once.  You need to work on the bad credit so you can eventually get the best terms and rates. This is where a business credit expert can be exceptionally helpful.

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Grants for Small Business Startup: Will It Be Enough?

Do you know how to find grants for small business startup? There are a number of grant programs out there for those wanting to start a business.  Even those already operating but still in the startup phase can benefit.  However, grants for small business startup are highly competitive.  Funds are often limited. It’s rare to get enough from a grant to fund an entire startup without needing other options.

There are Grants for Small Business Startup, But You Need More

What are options other than grants that offer free money?  I mean, that’s the best thing about a grant.  You do not have to pay the money back.  Also, bad credit doesn’t matter when it comes to grants. There are not a lot of other options that great.  However, there are a few.  

Why Use Grants for Small Business Startup

The truth is, grants for small business startup are rarely enough.  You are going to need more funding.  That said, you definitely should apply for any grants you might qualify to get.  Just be careful.  Be sure you meet the eligibility requirements before you begin the application process. 

The process of applying for grants can be tedious and lengthy.  That isn’t always the case, of course, but you don’t want to spend a lot of time on something you have no chance of getting.  By being intentional and finding the opportunities you can actually take advantage of, you increase your chances of approval and decrease your chances of wasting time. 

Any amount you receive, even if it is a few hundred dollars, can help reduce the amount of debt you have to take on.  Also, winning a grant can help your business look more viable to lenders. 

So, which grants do you qualify for? It depends.  Many grants are designed specifically for a certain type of business or business owner.  Some are not.  Here are a few possibilities to help get you started, along with some resources to do your own research.

grants for small business startup Credit Suite

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

Grants for Small Business Startup: Available for All

There are grants options that can work well for anyone.

FedEx Small Business Grant

This grant is the company’s way of working to strengthen small business innovation.  There are 10 grants the company awards each year.  They range from $15,000 to $50,000, and if you’re a minority owned business with a cutting-edge product, this could be the grant for you.

A business must use the FedEx website to submit entries. There are a few questions to answer about your business.  In addition, there is a requirement for an elevator pitch about what makes your business special.  Also, you have to explain how you would use the grant funds. A 90 second video submission is optional.

NASE Growth Grants

The National Association for the Self-Employed (NASE) has small business Growth Grants of up to $4,000. They are for micro-businesses, and proceeds can be used for a number of things.  They can be utilized for marketing, advertising, expansion, and even to hire employees. These grants are open to everyone.  However, you do have to be an NASE member to apply.  Membership fees vary based on the membership level chosen. 

USDA Value Added Producer Grant

The USDA’s Value-Added Producer Grant (VAPG) program offers grants for small businesses.  It includes minority owned business.  Grants range up to $250,000.  They are specifically to help agricultural producers with activities that add value to their products. As a result, grants are open to those in rural areas.  They must be operating as one of the following: 

  • Cooperative
  • Farmer
  • Rancher
  • an independent agricultural producer
  • or an agricultural producer group

Grants for Small Business Startup: Minority Business Owners

Here are some minority grant options to consider.  There are certainly others out there.  However, they are not always well advertised.  This means you need to be sure to do your own research. 

First Nations Development Institute Grants

The mission of this group is to offer grants that help Alaska Natives, Native Hawaiians, and Native Americans.  They offer assistance in the application process in addition to funds.

Not only that, but there are a wide range of opportunities from the First Nations Development Institute.  New ones initiate as old ones retire. There is a mailing list you can join to receive information about new opportunities as they become available.

National Black MBA Association Scale-Up Pitch Challenge

Also known as NBMBAA, the Scale-Up Pitch Challenge has cash prizes ranging from $1,000 to $50,000.  The associate states its purpose is to help newer businesses that have an African founder that maintains equal ownership.  

A business must be a member of the NBMBAA to compete.  There is a $10 monthly membership fee.  After that, there is an online application.   If chosen, you must submit a three-minute pitch. Then, finalists go on to compete at the NBMBAA annual conference.

Grants for Women Business Owners

For female business owners, there are several grant opportunities.  These are just a few. 

Eileen Fisher Women Owned Business Grants

The clothing brand Eileen Fisher awards $100,000 per year to 10 women-owned businesses. To qualify, a woman must have at least 51% ownership, and the business must be in operation for at least three years. Also, it must bring in less than $1 million per year in revenue and have a focus on environmental or social change.  

Amber Grant 

The Amber Grant awards $500 to $1,000 per month to a woman-owned business. One of the recipients also receives an additional $10,000 grant at the end of the year. Applicants only need to tell their story and turn it in with a $15 application fee.

#GIRLBOSS Foundation Grant 

Specifically for woman-owned businesses in fashion, music, and art, the #GIRLBOSS small business grant awards $15,000.  They also offer exposure via the Girlboss website and social media platforms. Judges rate those applying on creativity, business savvy, planning, innovation in the field, need, and where they plan to work.

grants for small business startup Credit Suite

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

Cartier Women’s Initiative Award 

The Cartier Women’s Initiative Award is $100,000 for first place and $30,000 for second place.  They award the grant to 18 female business owners from around the world each year.  Women business owners who are just getting started may qualify.  Look over the complete application for more information.

All of the finalists get to attend the INSEAD Social Entrepreneurship 6-Day Executive Program (ISEP). They will also have the opportunity to participate in workshops on entrepreneurship and business coaching seminars, as well as be exposed to networking opportunities.

Grants for Small Business Startup: Other Grant Resources

Of course, new grant opportunities open all the time.  During the COVID-19 pandemic, many local agencies have stepped up to help small businesses, including offering grant opportunities.  Sometimes, more funding becomes available allowing for new grants to open.  Here are some resources to help you find more grants for small business startup.  

Other Debt Free Options

Of course, debt free is best, so you are probably wondering if there are other options, besides grants for small business startup, that will help you fund your business debt-free.  Yes, there are. However, much like grants, they are a long shot and do not always fund your business completely. 

The two main options you have are crowdfunding for startups and angel investors.  Crowdfunding basically involves convincing several micro-investors to fund your business a few dollars at the time.  If you have a successful crowdfunding campaign it can be very effective.  Also, it’s not as easy as it sounds.  

Angel investors are not a new idea.  If you can find one, you are golden.  These are just one or two, or a small group, of investors that invest large sums.  They usually do so in return for equity in your business, meaning they want some of the future profits.  That means it’s not totally free money, but it is money for your business that you can get without being tied down by debt. Anyone can be an angel investor, even your mom!

An Awesome Non-Grant Option

Now, the truth is, it is virtually impossible to start a business debt-free.  Financing in some form is almost always necessary.  What you need is the most effective and flexible option for financing with the lowest interest rates.  

If you have top notch personal credit, that is probably going to be a traditional business loan.  However, many capable business owners do not have the personal credit score necessary.  Not only that, but you don’t want your personal credit to bear the brunt of your business debt.  You need business credit as well. There is a debt option that you can access with a lower personal credit score than what is required by traditional lenders.  Furthermore, it will help you build business credit at the same time. 

Credit Line Hybrid

A credit line hybrid is essentially an unsecured line of credit.  It allows you to fund your business without putting up collateral, and you only pay back what you use.  The funds can be used for many things, including startup costs. 

 It’s super easy to qualify.  You need a personal credit score of at least 680, which is lower than what is required by many banks. Additionally, you can’t have any liens, judgments, bankruptcies or late payments.  Also, in the past 6 months you should have less than 4 credit inquiries.  You should have less than a 45% balance on all business and personal credit cards as well.  It’s also preferred that you have established business credit in addition to personal credit.

Here is the beauty of it.  If you do not meet all of the requirements, it’s okay. You can take on a credit partner that meets each of these requirements.  Many business owners work with a friend or relative to fund their business.  If a relative or a friend meets all of these requirements, they can partner with you to allow you to tap into their credit to access funding. 

Benefits to Using a Credit Line Hybrid with Grants for Small Business Startup

There are many benefits to using a credit line hybrid.  First, it is unsecured, meaning you do not have to have any collateral to put up.  Next, this is no-doc funding.  That means you do not have to provide any bank statements or financials.  

In addition, typical approval is up to 5x that of the highest credit limit on the personal credit report. Often, you can get interest rates as low as 0% for the first few months.  This allows you to put that savings back into your business. 

With the approval for multiple credit cards, competition is created.  This makes it easier to get interest rates lowered and limits raised every few months. The process is generally quick, especially with a qualified expert to walk you through it. Also, you can build fast business credit because some of the accounts involved report to the business credit reporting agencies. 

SBA Loans

While federal grant money is preferred, other types of federal funding are available. This is another option for startup funding when grants for small business startup are not enough.  The Small Business Administration offers federally guaranteed loan programs that can help fund a business at any stage.  The applications are processed and funds disbursed through traditional lenders.  However, the requirements are easier for many businesses to meet.  This is because of the government guarantee that they have.  

You can find a lender that offers SBA loan programs using the lender match tool. Here are just a few of the programs they offer.  Which one may be right for your business will depend on a number of variables. 

7(a) Loans

The minimum credit score to qualify for this one is 680, just like the credit line hybrid.  There is a down payment requirement of at least 10% if you are using the funds for the purchase of a business, commercial real estate, or equipment. The minimum time in business is 2 years, but if you are a startup, business experience equivalent to two years will fill the requirement.

504 Loans

Funds from 504 loans can buy machinery, facilities, or land. Generally, these are used for expansion.  They work especially well for commercial real estate purchases.

They require a minimum credit score of 680 as well, and they are collateralized by the asset being financed.  There is also a down payment requirement of 10%, which can increase to 15% for a new business.

There is also a requirement you be in business at least 2 years, or that management has equivalent experience if the business is a startup.

grants for small business startup Credit Suite

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

Microloans

These loans work well for starting a business, purchasing equipment, buying inventory, or for working capital. Community based non-profits administer microloan programs as intermediaries, with financing coming directly from the Small Business Administration.

The minimum credit score is 640, and the collateral and down payment requirements vary by lender.

The thing to remember about all loans and lenders, including those related to the Small Business Administration, is that details such as interest rates, terms, and eligibility requirements can change frequently.  Be sure to check with individual lenders for the more up-to-date information.

Grants for Small Business Startup: Are They Worth the Time and Energy?

If you find one for which you meet all the eligibility requirements, yes, absolutely it is worth it.  Any amount you get that reduces the amount of debt you need to fund your business is worth it.  That said, remember it is unlikely you will get out of having to use financing at all. So, be sure to find the type of financing that will work best for you.  The credit line hybrid will work for almost anyone, and has many benefits, including helping to build business credit!

The post Grants for Small Business Startup: Will It Be Enough? appeared first on Credit Suite.

Micro Startup Acquisition: The Definitive Guide to Buying and Selling Small Startups

The problem with selling your startup is the long exit time. Sometimes it can take as long as seven years before you can sell your business and hop on the next idea.

And the investors? They feel the same way.

Who wants to wait almost a decade to buy a startup when the face of tech is evolving at such a rapid pace? Plus, the price tag on those more established businesses often run into the billions.

That’s an expensive mistake if you make the wrong investment.

The solution? Micro startup acquisitions.

From Facebook to Microsoft, there is a massive trend to seek out tiny teams of five or less, buy them, and use the technology and talent to gain a competitive edge.

In this guide, we’ll discuss the benefits of buying and selling a micro startup, the trends changing M&R strategy, and the top tools you can use to sell (or buy) your startup.

But before we dive into that, we need to look into what micro startup acquisitions are and why you need to sit up and take notice.

Micro Startup Acquisitions: What Are They, and Why Should I Care?

Micro startup acquisitions are a move away from buying businesses with established products or even proven revenue streams.

Instead, larger tech companies like Twitter and Pinterest are making investments in small startups. These businesses usually consist of 2 to 3 people, and companies are taking bets on their products that aren’t even fully realized yet.

Why?

Companies are becoming more proactive and want to acquire complementary products earlier on in their road maps as a way to outwit the competition and obtain the best talent in the industry.

What does this mean for startups?

Your exit strategy timeline is A LOT shorter. Gone are the days of waiting 5, 7, or 10 years to sell, making it more affordable than ever to bootstrap your startup.

Hike Labs was founded in 2014, and by 2015, Pinterest had swooped in and acquired the San Francisco-based mobile publishing startup.

Micro Startup Acquisition Trends

Over the last couple of years, there have been clear trends in why big companies are choosing to invest in these small teams and use them as part of their growth strategy.

More deals are about gaining access to new capabilities or markets. While it’s a trend across sectors, it’s picking up steam in tech where companies are looking to deliver more complete solutions to consumers.

These acquisitions, which focus more on scope than scale, accounted for 90% of tech deals in 2019, which is a 40% increase from 2015. It’s a clear indicator that businesses want to expand their offerings and capabilities.

It’s Harder to Build the Right Product from Scratch

No one wants to be late to market.

Yes, the tech giants could develop the software these micro startups are making, but by the time it’s ready for market, a competitor might have rolled a similar product out and taken all the glory.

Or you could make the mistake of investing too much in the wrong idea, and there goes money, time, and resources down the toilet. It’s usually much cheaper to acquire a startup that has done the legwork than get an idea internally developed.

By acquiring micro startups, companies can mitigate both risks and reap the rewards.

For example, HR and finance SaaS vendor Workday bought Scout RFP (a San Francisco startup with a team of 8) for $540 million.

The startup built a cloud-based office procurement system that helps customers streamline supplier management. The acquisition is a step in the right direction for Workday to compete as a holistic enterprise resource planning solution.

The Micro Startup Talent Hunger Games

It’s no secret that attracting top tier talent can take your business to the next level.

These micro startup acquisitions aren’t only about products. Sometimes it’s the talent that attracts the bigger guys. Micro teams can amplify a company’s productivity while getting rid of the learning curve which comes with new hires.

The innovation and ability to push a startup idea into production mean the team has skills and knowledge that is invaluable to an established company.

For example, when Instagram bought Luma (its first acquisition), the tiny three-person team was part of the deal. The Luma team’s knowledge in video stabilization technology was critical in launching Instagram’s complementary app, Hyperlapse.

The Attractive Price Point of Micro Startups

A massive advantage of purchasing micro startups is the price.

It’s way cheaper to go small than fund a big, established company with hundreds of employees.

And the risk of it going under? A much softer blow.

If the investment goes the same way as Jay-Z’s Tidal music streaming app, it’s a much smaller amount to write off. Plus, you get to keep the team.

For example:

Microsoft spent $200 million to acquire Accompli and only $100 million for Sunrise. When you compare that to the $7.5 billion they spent on the acquisition of Github, or their purchase of Skype for $8.5 billion, that’s quite a bargain.

The same goes for Google acquiring Android for a measly $50 million in 2005 with key employees joining the company. As of 2020, the net worth of Android is estimated to be over $2.5 billion.

The Race for Artificial Intelligence With Micro Startups

Another major trend in micro startup acquisitions is artificial intelligence. Companies in almost every sector are looking to take advantage of machine learning and integrate it into their products.

When you combine this with the shortage of AI talent, there is a race to scoop up startups and their teams who are in the early stages of funding and research.

In 2019, Facebook quickly snapped up a visual search startup called GrokStyle, who developed an app that can automatically detect decor and home furniture from a photo. When asked about the acquisition, Facebook responded in a statement that “their team and technology will contribute to our AI capabilities”.

Tools for Acquiring or Selling Micro Startups and Other Businesses

Want to cash in on the micro acquisition boom? Whether you’re looking to sell or invest in a small business, there are various tools to help you swipe right and find your perfect match.

Micro Acquire

micro acquire

Micro Acquire is a marketplace that connects startups to buyers. The platform is free, private, and has no middlemen.

When you sign up, you’ll get instant access to over 10,000 trusted buyers with total anonymity.

The marketplace is designed to cut down on the time you need to sell your business and find startups to invest in. Once you’ve found a buyer or a seller, you’ll get a letter of intent (LOI) in 30 days or less.

Who Is It For?

Micro Aquire is for startups with an annual recurring revenue (ARR) of less than $500,000. It’s one of the best platforms for serial entrepreneurs to invest in small companies and grow them into booming successes.

Key Features

  • 30-day closing period.
  • Filter the listings to find a startup that ticks all your boxes.
  • Sell your startup by following a quick and simple selling process.
  • Each seller provides key metrics to give buyers an accurate idea about the sustainability of their business.
  • No middlemen. The sale is direct between the seller and buyer.

What Does It Cost?

  • Free: Micro Aquire is free for sellers and buyers with basic features.
  • Premium: For $290 per year, you’ll get the newest listings sent straight to your inbox before the other buyers on the free version. It gives you the chance to review, negotiate, and snap up a deal before anyone else. Plus, Micro Acquire won’t charge any commission from the sale.

Flippa

flippa

Flippa is a marketplace for buying and selling websites, apps, domains, and online businesses.

While it helps to streamline the negotiation and transaction process, it does have a history of scam listings.

If you decide to buy on Flippa, do your due diligence and put the listings under a microscope to make sure it’s legit to find those diamonds in the rough.

Who Is It For?

Flippa is an ideal marketplace for small to medium-sized businesses. You can find a range of sellers at any price.

You can buy or sell online businesses and products like:

  • Blogs
  • E-commerce stores
  • Affiliate sites
  • SaaS businesses
  • Apps
  • Shopify stores
  • Amazon FBA stores
  • Domains

Key Features

  • The easy-to-use site navigation makes it simple to list your business in under 10 minutes.
  • There are tons of filtering options to help you find a business that meets your needs and budget.
  • Choose the “Auction” feature to sell your business within 30 days or set it at a fixed price. Fixed price listings usually take 3-5 months to sell.
  • The “Broker-Matching Service” connects you to a personal broker who will manage the entire sales process from marketing to closing the deal on your behalf. You will need a net annual profit of at least $100,000 to qualify.
  • The “Self Service” feature gets you a Flippa account manager to help you with the sales process.
  • Use Flippa’s free Online Valuation Tool to get a sense of how much your business is worth.

What Does It Cost?

Flippa’s listing fees depend on what you’re selling:

  • Starter/template websites: $15
  • Domains: $10
  • iOS and Android Apps: $15
  • Established websites: $49

There is also a 10% success fee on each sale, and you can upgrade your listing with various packages starting at $295.

Tiny Capital

tiny capital

Tiny Capital is a different breed in the micro acquisition space. Unlike some of the other tools mentioned above, it’s a traditional venture capital firm, with a twist.

Instead of buying companies and becoming a micromanaging nightmare, Tiny has a hands-off approach.

Besides the required monthly and quarterly reports, founders rarely have contact with the firm, with some businesses only speaking to Tiny Capital founder, Andrew Wilkinson, once every six months.

Who Is It For?

Tiny Capital seeks to invest in profitable internet businesses within the information technology sectors.

Think your business would be a good fit?

You need to meet the following requirements:

  • 3-5 years in business.
  • A minimum of $500k per year in annual profit.
  • A high-quality team.
  • You have a simple online business with high margins that doesn’t require complex technology or large teams
  • Your business has a competitive advantage.

It’s the perfect micro acquisition option for founders who want a quick sales turn around (most deals are complete within 30 days) and an investor who is going to be seen and not heard.

Key Features

  • There is a simple selling structure where you can get a full or partial cash payment upfront.
  • Tiny Capital has a simple 30-day sales cycle that includes a 15-day due diligence process.
  • Founders can stay or go.
  • No culture change required.
  • No in-person meetings before or after the sale.

What Does It Cost?

There are no upfront costs with Tiny. All you need to do is contact the team, and you’ll get a response within 48 hours. If Tiny likes your business, you’ll get an offer within 7 days.

FE International

fe international

FE International is an acquisition advisory team for businesses earning five figures or more. With a 94.1% sales success rate, it’s one of the top tools for micro startup acquisitions.

As a full-service M&A (mergers and acquisitions service), the platform has integrated solutions for all the major elements of a successful acquisition. From valuation to exit planning to post-sale considerations, it’s all handled under one roof.

Who Is It For?

FE International specializes in selling websites in the SaaS, content, and e-commerce industries. It’s an excellent choice for startups within the 5 to 8 figure range who want top-tier support throughout the sales process.

Key Features

  • FE has a high sales success rate compared to its competitors.
  • It has a vetted investor network of 50,000 people, ensuring only qualified, seasoned professionals view information about your business.
  • Several brokers are always available to minimize disruptions in the sales process.
  • To help you get the best possible deal, FE International creates a thorough sales plan and marketing materials to attract qualified buyers.
  • FE brokers will approach several pre-screened and vetted investors and negotiate the best deal on your behalf.

What Does It Cost?

There are no listing fees for sellers or joining fees for investors. Brokers are paid a 15% commission fee on all sales, and there is a buyer transaction fee of 2.5% with a maximum threshold of $1,000.

Empire Flippers

empire flippers

Since opening its doors in 2013, Empire Flippers has sold over $93,000,000 worth of websites and online businesses with an impressive 88% selling success rate.

Who Is It For?

Empire Flippers is interested in websites within the following categories:

There is an intensive seller vetting process to ensure only quality listings make it onto the marketplace, and there is a dedicated team for each step of the process.

To qualify for a listing on Empire Flippers, you must meet the following requirements:

  • Your business or website must have a 6-month solid track record of at least $1000 profit per month.
  • You must be using Google Analytics for the past 6 months.

Key Features

  • Empire Flippers has a dedicated migrations team to take care of transferring your new business to you.
  • Get an estimate on how much your business is worth on Empire Flippers before you start the vetting process.
  • New listings are sent out via email to a list of over 45,000 people.
  • If you list with Empire Flippers, you will need to agree to not list your business anywhere else for 2 months. Sellers also need to sign a 3-year non-compete agreement.

What Does It Cost?

Empire Flippers has a $297 listing fee for first-time sellers. But if your listing is declined, it is 100% refundable.

If you’re a repeat seller, you’ll only pay $97 to list your site.

Potential buyers must pay a refundable 5% deposit fee to gain access to a listings URL, P&L, and Google Analytics.

There are commission fees ranging from 8% to 15% depending on the final sale price.

Conclusion

The race is on for micro startup acquisitions.

Companies who understand the benefits of expanding their scope by adding complementary products and talent to their portfolio will reap the rewards.

Companies who forgo adding micro acquisitions as part of their mergers and acquisitions strategy are going to get left in the dust by competitors and struggle to find top-tier talent.

In short, there is no better time to be a desirable tiny startup.

Have you ever sold or acquired a micro startup? What has been your experience?

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