Shares of Itron Inc. bounced 6.4% in afternoon trading Friday, after Raymond James analyst Pavel Molchanov suggested it was time to back up the truck on the provider of products to measure energy and water. Molchanov raised his rating to strong buy from outperform, after the stock plunged 26.4% on Thursday — the biggest one-day selloff since July 2002 — in the wake of a big profit miss and slashed full-year outlook, with the company citing supply chain challenges. With the selloff, Molchanov believes the market is “missing the forest for the trees.” He gave “three fundamental reasons” to buy the stock that the market is overlooking: 1) None of the smart meter revenue is disappearing — it will come when supply is available; after some sluggishness, software revenue is finally showing strength; and lowest leverage in 7 years opens the door to acquisitions in software, and perhaps beyond. Itron’s stock had dropped 20.3% year to date, while the S&P 500 has gained 18.1%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Seeking the best sources of funding for your business can feel complex and overwhelming. Most young entrepreneurs today feel like bootstrapping their business feels safer and perfect for their needs.
Unfortunately, most start-up businesses cannot thrive without adequate funding. Since few businesses start with a generous budget, you must seek alternative sources. Loans, sponsorships, partnerships, angel funding, co-investors, and grants are some of the options known to many.
Most of these options require collateral of some sort. Collateral is an asset that you can use to secure a personal or a business loan. In layman’s speak, it’s a promise that you can still cover your loan when you cannot make the payments.
Collaterals can be seized and resold to cover the remainder of the loan. For business loans, assets like business equipment, vehicles, buildings, and inventory can be used as business loan collateral. You can even use accounts receivables to pay off the loan if necessary.
Like any other lenders, banks put a lien on the asset pledged as collateral for the loan. If the borrower falls on hard times and cannot keep up with the payments, the lender has the right to seize the collateral. It is a guarantee that the lender still gets paid no matter what. By pledging collateral, a business owner shows that they are not a high-risk borrower. It leads to reduced interest rates and a more reasonably affordable loan plan.
Alternatives
Today, most business loans and credit lines do not come from conventional banks. There are alternative lenders and investors like Credit Suite who can help you with the steps needed to secure a business loan.
We have a wide array of legitimate funding solutions, each with its own different and unique terms that can match your credit profile. Credit Suite’s business loan programs manage the rates and requirements to help increase your chance of getting approved.
High-value collateral often gets matched with a higher loan value which can be beneficial for the lender. It is logical for business owners to choose a loan option that reflects their capacity to pay. However, not many are aware that they can use less popular options as business loan collateral instead of their properties.
The good news? If you own a public stock, you may use that as collateral to secure a business loan. This article explores how public stocks can be your collateral and what makes them such a good option.
Why Use Public Stocks As Business Loan Collateral?
Public stocks are liquid assets which makes them an acceptable form of collateral. Everyone in the industry knows that these stocks have passed compliance standards. Hence they guarantee against the unlikely event of a default. It is natural for any individual to feel a degree of protectionism on what they hold dear. It includes real estate, properties they own like vehicles or artwork, and it extends to stocks. However, in the unfortunate event of a seizure, public stocks affect you differently.
You can still operate your business, protect your image, and operate as usual. Treat your public stocks as one of the assets that can help your business continuity process. It is a lifeline that can save you when you cannot make payments without sacrificing the assets that help your business move (i.e., laptop, vehicles, house, etc.).
Overall, what matters is that you are protected from your liability against future payments—the benefit trumps, especially when the need for funding is huge. Most people are unaware that you can use public stocks as such and so the next section will guide you on how to use them so that you can feel more confident in deciding that this is the best option for you to take.
5 Tips In Using Public Stocks As Collateral To Secure Business Loans
Track your assets’ worth.
Lenders will assess your company’s history, business credit, balance sheet, and equity contributions. When you pass the audit, that’s the time when you submit your collateral for review.
Defaulting on a loan has dire consequences for your business and personal life. It would help if you took a realistic stance when you track your assets. Specifically, your public stocks require an exhaustive review. Consider asking for professional help to help you see how your stocks fare.
Feel more confident in your investment decisions by staying up to date on research-based information, current trends, and market analysis. When it comes to your business and money, a serious reputation is important. You can rely on professional advice from experts like Charlie Shrem, Matt McCall, David Stein, and Josh Bannerman to navigate key investing issues.
Negotiate if you can.
A good credit rating increases your loan approval. Using public stocks as collateral, how your stocks perform, your investment history, and your level of stock ownership can all influence your loan-to-value ratio. Look for wiggle rooms in terms of restructuring, repayment, frequency, and scheduling. These are basic areas you can cover in negotiating.
Ask for lower interest rates.
Public stocks can help you get lower interest rates because the collateral is being held. It is because of the reduced risk associated with public stocks. This reduction makes lenders more comfortable because there is little chance of default. Depending on your stock’s value and performance, lower interest rates may be warranted. It does not hurt to ask for an interest reconsideration.
This country is built on its fair and reasonable business practices. It extends to flexible loan repayment options. Additionally, it is beneficial to both parties as this essentially guarantees loan payment and profit based on interest.
There are common repayment flexibility schemes in the market to minimize the chances of default. These are accelerated repayment which leads to loan recalculation, step-up loans where the value matches a borrower’s growth potential, and balloon repayment scheme where the loan amount is paid in the last installment.
High-performing stocks can be your leverage for greater repayment flexibility. In the event of trouble making payments, you may adjust the rates or payments depending on your lender’s programs and assistance.
Consider alternative lenders.
Sometimes, conventional banks are not the right fit for your business. Other start-ups claim that alternative lenders can offer funding that aligns with their goals, structure, and profitability. At Credit Suite, our contemporarily diverse strategies can help your business secure the funding you need. Our client’s testimonials prove how effective we are in our role.
There are no personal guarantees when you use public stocks as collateral. How your public stocks perform on the market will vary for sure. If the borrower defaults, the lender can seize and sell the business loan collateral. However, if the collateral sells for less than the debt value, the lender cannot seek that deficiency balance from the borrower.
Therefore, public stock collateral is considered as nonrecourse debt. Due to the risks, lenders generally allow only 50% to 60% loan-to-value ratios. Typically, lenders underwrite these collaterals with more care compared to full recourse loans.
Depending on the kind of loan and the value you are applying for, public stocks as collateral are primarily attractive only when you own significant ownership in the company’s stock. Owning penny stocks or junk bonds will only matter if the value is high, but until it does, you have a better chance of securing your business loans with stocks that have high market value.
When we talk of public stocks, the image and quality of the company also matter. It communicates stability which helps secure the loan. The lender communicates with a broker who tracks the daily value of the stocks.
What if the Value of the Stock Decreases?
Should the value decrease, the lender may require more money (or additional collateral). Before you decide to submit your stock portfolio as business loan collateral, ask yourself whether this is a risk you are willing to take.
Remember when Apple stocks went down? Everybody seems to know when this happened, and for good reasons. All eyes watch when the big players lose. When we talk about stocks used as collateral, only significant stocks are considered. At the most basic, this can mean market value, the number of stocks, and degree of ownership.
When your stock’s market value drops, your collateral’s value might go down as well. Though this does not immediately mean that you need to submit more collateral, there’s a line drawn to secure your lender’s threshold. If the market drops far enough, there is a risk that you may owe more than the original amount.
Some Friendly Reminders
Most business owners who want to push forward understand these risks. Your chances of completing loan payments are significantly increased when coupled with confidence in their product or service, along with sensible market research.
Out-of-the-box thinking pays off in business. Look for additional income streams that you can integrate into your business. At Credit Suite, our Partner Program offers you a unique way to boost your sales and exceed your targets.
… And
Whatever kind of service or product you sell, you can point your customers to our program to complete the sale. We also provide you with all the training and information you need when you become our partner. It’s a win-win situation for the both of us.
Janine Ikan is a teacher, mental health advocate, and freelance writer for The Stock Dork. She has written on psychology, digital marketing, sustainability, and new age spirituality. Her passions include arts, culture, travel, food, social sciences, and community development. She lives in the Philippines with her husband, their energetic toddler, and six cats.
Whether you notice or not, plenty of PPC ads utilize questions to get more engagement. The questions can be literal or rhetorical, but either way, they’re trying to get you to click so you can learn the answer.
In this article, we’ll discuss why you should consider asking questions in your PPC ads and provide tips about best practices in doing so.
Why Should You Use Questions in Your PPC Ads?
Questions are how people show interest in each other’s lives, and they’re a regular part of our everyday lives to boot. When ads use questions effectively, potential customers may feel like the brand cares about them and isn’t simply trying to sell them something.
That said, marketers can’t measure how customers feel. But, you can measure data to see if your questions in PPC ads are driving people to your page. Here are some reasons marketers have discovered questions in PPC ads work:
1. Get People’s Attention
A question can easily pique people’s interest, especially if it’s about a relatable struggle.
Let’s say you’re a marketing agency.
Try starting your PPC ads with statements like, “Do you want to increase your conversion rate?” or “Do you want to boost marketing results?”
The answers to these questions may seem like no-brainers. Yet, they can easily attract the attention of business owners who are desperately looking for ways to improve their sales results, as they want you to answer these questions for them without having to dig further.
2. Questions Can Boost Engagement
Engaging your audience is essential. If they feel like you’re talking at them, not with them, they have no reason to click, like, share, or comment.
So, if you ask a question they want an answer to or want to answer, you’re inviting them into the conversation, not giving them the hard sell.
Your ultimate goal is to convert people into paying customers, but engaging with them via questions could get them to want to purchase from you instead of the person who simply said: “buy our product.”
3. More Clicks on PPC Ads with Questions
Not only can questions pique interest, but they can tap into a feeling of social obligation. When you ask someone a question in “real life,” they often feel obligated to answer. While your PPC ad isn’t staring at a user anticipating an answer, the reader could feel like they need to respond.
Or, they could have that question themselves—maybe they even typed in that exact question, and that’s why they see your ad. It could feel like they asked you the question and are now the ones waiting for your answer!
Asking a question you want them to answer, like “Are you ready to take the leap?” or a question they may have asked, like “Why should I travel to Iceland?” could make them click.
Note: Be sure your PPC ad’s link actually answers the question, provides relevant information before they provide contact information, or is directly related to the query in another way. Don’t just send them to your homepage unless the answer is there.
4. Showcase Brand Personality
The questions you ask will give customers an idea about your brand identity or personality.
Let’s take a look at the difference between these two questions:
“What’s your next six-figure move?”
“If you could travel anywhere for free, where would it be?”
The first question will likely give the impression that a business-savvy financial advisor or entrepreneur wrote the ad. It may even attract like-minded individuals who want to learn about generating passive income or building their own business.
The second question could let viewers see you as a company with a genuine interest in their dreams and futures. The “if you could” portion may also trigger viewers to share the dream destinations they’ve been saving up for, which could increase visibility if your PPC ad is on social media and not a search engine.
You only have one chance to make a good first impression, so be sure your question does that for you.
5 Times You Should Use Questions in PPC Ads
How can you utilize questions when making your PPC ads? Here are five ways you can use them to yield the results you want.
1. Use Questions to Make a Tough Sell
There are brand messages which are easy to communicate, like “Buy now to get 70 percent off your first order,” or “Sign up to get free access to our course.” These statements answer a question that didn’t even need to be asked: “Do you want something for cheap or free?” So, questions aren’t needed.
However, when you’re making a tough sell, peppering your ad with a few questions can help readers ease into the idea of consuming your content or opting into your business.
Let’s say you’re a blogger in the finance industry who wants to talk about the perks of investing. Money can be a touchy subject—even an intimidating one—for many. Using questions focusing on the perks of investing or reflecting things readers may already be wondering could draw them in.
You could write something like, “Do you want to abandon the 9-to-5 grind and be your own boss?” or “Do you want to retire in your 50s?”
These inquiries can get people to notice your ads because they’re exciting and relatable.
2. Use Questions as Conversation Starters
Think about the last time you approached a stranger in a social situation.
To avoid being awkward, you probably introduced yourself with your name and a brief statement, then asked a question like, “How do you know [insert mutual friend’s name]?”
It’s the same way for PPC ads.
Questions are a good starting point to introducing your business and the services you offer without putting on too much pressure.
For example, Ready Set Food’s PPC ads introduce the company by name and give some basic information. First-time parents who are concerned about their baby’s diets may already be interested in the topic, but the CTA “How Does It Work?” truly gets the conversation started.
3. Use Questions to Encourage Readers to Click the CTA
Asking a question reflecting the reader’s thoughts or addressing a pain point could lead them to click the call-to-action (CTA). The CTA could be the question itself, or the question could lead to the CTA.
A question that could be the CTA is reflected in the Ready, Set, Food ad above: How does it work?
Regent Atlantic’s PPC ad uses a question to lead readers to the CTA by asking, “Do you have a financial plan that works for you?” They then encourage people to click their ad to get the financial help they need.
4. Use Questions to Introduce Your Business
Including a question related to your businesses’ niche is a good starting point to establishing a relationship with your customers.
SEO agency Pushfire starts with the question, “Tired of SEO services that take shortcuts or attempt to game the latest algorithm?” Since SEO is a broad and complicated topic, the loaded question helps give a brief introduction of what their agency offers and how hard they’re willing to work for you.
5. Use a Question to Introduce a Solution
PPC ads can have questions that introduce problems the audience may already have.
Your products or services should provide the solution, immediately answering the question in a way that lets the audience know this. People are looking for solutions, not problems.
For example, Bookakery Boxes’ PPC ad starts with, “Looking for a gift that will last beyond Christmas?” Their answer is their subscription box program, which lets people give books to their loved ones throughout the year.
6 Tips for Using PPC Ad Questions Successfully
It’s not just what you say; it’s how you say it. When it comes to questions in PPC ads, you need to know not just when to ask them but how and why you’re doing so.
1. Understand Your Message
What does your company stand for, and what does it offer? You need to answer these questions for yourself before you ask your audience anything.
The questions you ask readers should help them relate to your message.
For instance, if you run a travel agency focusing on affordability, you could ask, “Are you dreaming of a vacation but worried about the cost?”
Or, if you run a clothing store that donates a portion of all proceeds, you could ask, “Do you want to look great while helping others?”
In both of these, the audience knows what your company is all about from one simple question.
2. Keep Them to a Minimum
Chances are, we’ve all met someone who just constantly asks question after question, and eventually, they become background noise at best.
Questions are more effective when they are utilized infrequently.
Plus, asking too many questions could make your copy seem deceitful and spammy, like you’re trying to get answers out of them, not help them solve a problem. Not surprisingly, no one wants to see too many questions because we prefer to get answers or solutions.
Just include one question to maximize the impact of your ads.
3. Make the Questions Seem Natural
Questions are natural parts of human conversation, and copy should reflect that—and no more than that.
These days, it’s not uncommon for keywords to be questions. Historically, it was best to have your long-tail keywords be verbatim in your copy; now, search engines are smart enough to understand context. Don’t wedge those questions in, especially repeatedly, just to fit your keywords.
There’s nothing wrong with adding questions every now and then. You want to make your PPC ad copy seem like you’re encouraging a friend to make it more engaging and enticing. Just don’t overdo it.
4. Understand Your Audience
Picking the right question involves understanding your audience.
What are the most common dilemmas of your target audience? Why would they need your products or services? Formulating questions along these lines will help you create copy that resonates with your intended viewers.
5. Keep Questions Positive
Your questions should make people excited, not scared or unhappy. A question that only has a negative response could lead to a negative perception of your brand.
For example, the question “Do you want a house infested with rats?” could make readers uncomfortable and respond strongly with “no,” or even, “how dare you assume I would?” After all, it conjures an image of a house with a rat infestation and implies someone, somewhere, may say, “why yes, yes I do!”
In contrast, the question “Do you have rats and want them gone?” makes your intended message more concise and clear. Readers know you’re offering products and services designed to take care of a rat infestation without assuming they do have a house full of rats.
Plus, people want solutions to their problems, and positively phrased questions and responses offer those.
6. Only Ask When You Know What the Answer Will Be
When you ask someone to become engaged to be married, you’re likely already pretty sure they’ll say “yes.” The same goes when asking a reader to engage with your content—you need to be pretty sure the answer will be “yes.”
In other words, the “yes” should be so expected that the question is rhetorical.
For example, Plato’s Closet has a PPC ad with the words, “Ready to upgrade your closet?”
In this situation, people who read the copy are more likely to stop and stare because of the free shipping option. The question just drove the message home.
Getting readers to respond “yes” to this early on, to the point where they click on the CTA, may make them more likely to answer “yes” once they’ve reached your product page. They’re already pretty excited about the questions they’ve already responded affirmatively to.
Conclusion
Questions in PPC ads could help you engage with your readers in various ways.
They can introduce your business, engage your audience at a human level, or make them excited to learn more. It can also be used to bring up a solution to a problem, which may encourage your audience to respond to your CTA.
Ask questions aligned with your main message. Make sure they seem natural and show you understand your target audience.
As long as you keep these tips in mind, you could create PPC ads that produce excellent results.
How will you use questions to get more engagement with your PPC ads?
Microsoft | Sr. Data & Applied Scientist | Bellevue, WA | Full-time At the Web Data team we’re looking for a passionate Applied Scientist to help us on our mission of employing deep learning to understand all the data on the web; the largest store of information in human history. With this understanding we power …
Diane talks with Dr. Angela Rasmussen, virologist and affiliate at the Georgetown Center for Global Health Science and Security, about how the vaccine works and questions about its safety.
What are backlinks to search engine optimization? Short version: They’re signals Google uses to determine if your website is a reputable resource worthy of citation. The long and sweet version? The more quality backlinks pointing to your website, the higher your chances of ranking for profitable keywords and competitive search queries that drive sales. You’ll …
B42 has started to make amateur football better. We take our athletes to a new level of performance and offer professional rehab support in case of a sports injury. We understand football as a social force, for example by taking a clear stand against racism.
Are you looking for funding from Rapid Advance? They’ve changed their name – so welcome to our Rapid Finance review.
Rapid Advance is one of several lending companies online. They offer short term loans (MCA, also known as merchant cash advances) and more. We look at the specifics and drill down into the details.
Note: due to the COVID-19 health crisis, Rapid Finance is not offering loans at this time. But this lender does not appear to be going out of business.
$5,000 – $1 million is available in funding. The terms are 3 to 60 months. Your business needs to be generating revenue.
You will need to supply a government-issued ID (like a driver’s license), a void check from your business banking account, and the last three statements from your business bank account.
Merchant Cash Advances
A range of $5,000 – $500,000 is available in funding.
You will need to supply a government-issued ID (like a driver’s license), a void check from your business banking account, your last three credit card processing statements, and the last three statements from your business bank account.
Bad credit is no problem.
SBA Loans
$30,000 – $250,000 is available in funding. The terms are 1 to 10 years.
You will need to supply a government-issued ID (like a driver’s license), a void check from your business banking account, the last three statements from your business bank account, two years of business tax returns, and your schedule of debts.
Rapid Finance also offers bridge loans, lines of credit, asset-based financing, and invoice factoring.
Rapid Finance Review: Advantages
Advantages are a few choices for loan types. The maximum amounts available are high. Rapid Finance has also been in the online lending space for longer than most of the players in this industry.
Rapid Finance Review: Disadvantages
Disadvantages are that the documentation requirements can be a bit extensive.
An Alternative to Rapid Finance
Why, it’s business credit, of course! Business credit is an asset which can help your small business for years to come.
The Process
Building corporate credit is a process, and it does not happen without effort. A corporation will need to actively work to build business credit. Nevertheless, it can be done easily and quickly, and it is much swifter than establishing consumer credit scores. Merchants are a big part of this process.
Doing the steps out of sequence will cause repetitive denials. Nobody can start at the top with business credit. For example, you can’t start with store or cash credit from your bank. If you do, you’ll get a rejection 100% of the time.
Company Credibility
A small business has to be reliable to loan providers and merchants. As a result, a small business will need a professional-looking web site and email address, with site hosting bought from a vendor like GoDaddy. In addition business phone and fax numbers ought to have a listing on ListYourself.net.
Also the company phone number should be toll-free (800 exchange or the equivalent).
A company will also need a bank account devoted purely to it, and it has to have all of the licenses essential for operation. These licenses all have to be in the correct, appropriate name of the company, with the same company address and telephone numbers. Keep in mind that this means not just state licenses, but potentially also city licenses.
Visit the Internal Revenue Service website and obtain an EIN for the company. They’re totally free. Choose a business entity such as corporation, LLC, etc. A business can get started as a sole proprietor but will more than likely wish to switch to a type of corporation or partnership to decrease risk and optimize tax benefits.
A business entity will matter when it concerns tax obligations and liability in the event of litigation. A sole proprietorship means the entrepreneur is it when it comes to liability and taxes. No one else is responsible.
If you are a sole proprietor at the very least be sure to file for a DBA. If you do not, then your personal name is the same as the corporate name. Therefore, you can end up being directly accountable for all business financial obligations.
Plus, according to the Internal Revenue Service, using this structure there is a 1 in 7 chance of an IRS audit. There is a 1 in 50 chance for corporations! Avoid confusion and significantly reduce the odds of an IRS audit simultaneously.
But you should see any DBA filing as a steppingstone to incorporating, which is best for business credit building.
Starting the Business Credit Reporting Process
Start at the D&B website and obtain a cost-free DUNS number. A DUNS number is how D&B gets a small business into their system, to generate a PAYDEX score. If there is no DUNS number, then there is no record and no PAYDEX score.
Once in D&B’s system, search Equifax and Experian’s websites for the business. You can do this at https://www.creditsuite.com/reports/. If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process. This way, Experian and Equifax will have activity to report on.
Trade Lines
First you ought to establish trade lines that report. This is also referred to as vendor accounts. Then you’ll have an established credit profile, and you’ll get a business credit score.
And with an established business credit profile and score you can start obtaining revolving store and cash credit.
These sorts of accounts often tend to be for the things bought all the time, like shipping boxes, outdoor work wear, ink and toner, and office furniture.
But to start with, what is trade credit? These trade lines are credit issuers who will give you initial credit when you have none now. Terms are normally Net 30, versus revolving.
Hence if you get an approval for $1,000 in vendor credit and use all of it, you will need to pay that money back in a set term, such as within 30 days on a Net 30 account.
Details
Net 30 accounts have to be paid in full within 30 days. 60 accounts must be paid fully within 60 days. Unlike with revolving accounts, you have a set time when you have to pay back what you borrowed or the credit you made use of.
To launch your business credit profile the proper way, you ought to get approval for vendor accounts that report to the business credit reporting bureaus. As soon as that’s done, you can then use the credit.
Then repay what you used, and the account is on report to Dun & Bradstreet, Experian, or Equifax.
Not every vendor can help like true starter credit can. These are vendors that will grant an approval with hardly any effort. You also want them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.
Revolving Store Credit
Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs, progress to revolving store credit. These are companies such as Office Depot and Staples. These companies are likelier to have products you need.
Use the business’s EIN on these credit applications.
Are there more accounts reporting? Then progress to fleet credit. These are businesses like BP and Conoco. Use this credit to buy fuel, and to repair and maintain vehicles. Make certain to apply using the corporation’s EIN.
Cash Credit
Have you been responsibly managing the credit you’ve gotten up to this point? Then move onto more universal cash credit. These are service providers such as Visa and MasterCard. Keep your SSN off these applications; use your EIN instead.
These are usually MasterCard credit cards. If you have more trade accounts reporting, then these are attainable.
Know what is happening with your credit. Make sure it is being reported and fix any mistakes ASAP. Get in the practice of checking credit reports. Dig into the specifics, not just the scores.
So, what’s all this monitoring for? It’s to dispute any mistakes in your records. Mistakes in your credit report(s) can be taken care of. But the CRAs often want you to dispute in a particular way.
Disputing credit report inaccuracies typically means you send a paper letter with copies of any proof of payment with it. These are documents like receipts and cancelled checks. Never send the originals. Always mail copies and retain the originals.
Disputing credit report errors also means you specifically itemize any charges you dispute. Make your dispute letter as crystal clear as possible. Be specific about the problems with your report. Use certified mail so that you will have proof that you mailed in your dispute.
A Word about Business Credit Building
Always use credit sensibly! Don’t borrow beyond what you can pay off. Keep an eye on balances and deadlines for repayments. Paying in a timely manner and fully will do more to raise business credit scores than pretty much anything else.
Establishing company credit pays. Good business credit scores help a small business get loans. Your credit issuer knows the small business can pay its debts. They understand the small business is authentic. The small business’s EIN links to high scores, and lenders won’t feel the need to demand a personal guarantee.
Rapid Finance Review: Takeaways
The companies which will do the best with Rapid Finance will tend to have entrepreneurs with decent personal credit scores and a considerable time in business. These companies will also have fairly high annual revenues.
The businesses which might not do so well will have been in business for too short an amount of time, or not have sufficient annual revenues. Companies not needing a lot in funding would probably do better going elsewhere.
And finally, as with every other lending program, whether online or offline, remember to read the fine print and do the math.
Go over the details carefully. And decide whether Rapid Finance will be good for you and your company. In addition, consider alternative financing options that go beyond lending, including building business credit, in order to best decide how to get the money you need to help your business grow.
Are you a startup? Do you have a temporary cash shortage you need to cover? Is your credit not so great, or do you need cash to purchase in bulk? Whatever is going on rest assured, there is pretty much a business loan for every situation. Yes, you can even get a business loan now. Pandemic or no pandemic, you can get business money.
Sometimes a Business Loan Is Not What You Need
Even if, somehow, there isn’t a business loan in the traditional sense to help, there are still options. Sometimes, a traditional business loan isn’t even the right answer. Something else might actually be better.
Going on the assumption that most folks understand what a standard term loan from a traditional lender is, we are going to discuss alternatives to this solution. After all, if you don’t know what’s out there, you’ll never know what might work best for you.
Business Loans and Other Options for Startup
When it comes to starting a business, you can get a business loan if you qualify. There are other options too though.
Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.
Investors
You probably know what investors are. Finding traditional investors for your business involves a number of things. First, you have to find investors with deep enough pockets that are willing to hear your pitch. Then, you have to actually create a pitch, and hope they like it.
Then there are angel investors. They work a little differently. Angels are usually more informal than other investors. They can be people you know. They can be people you connect with through networking or other means. Even your mom can be an angel investor.
Crowdfunding
While the average person that wants to start a business needs funding, it is not always possible to find one or two large investors. With crowdfunding, you can access a lot of investors to fund your business $5 and $10 at the time.
There are many crowdfunding sites. Still, the most popular are Kickstarter and Indiegogo. They are similar to each other. However, there are some major differences as well. The most obvious is the timing of when you get the money that others give your company.
Kickstarter requires you to set a goal first. You do not receive your funds until you reach your goal. For example, if you set a goal of $5,000 when you start your campaign, you will not receive any money that investors offer up until you reach that $5,000.
Indiegogo requires a goal as well. However, they offer the option to receive funds as you go. In addition, they have an option called InDemand. This program lets you keep raising funds even after your original campaign is over. That means you do not have to start a whole new campaign. It’s more like an extension.
There are other crowdfunding sites out there also. Different ones work better for certain businesses and vendors. To figure out which one might work best for your needs, you’ll have to do some research. Keep in mind your type of business and the specific business each one appeals too.
Crowdfunding is a good starting point for a new business. Yet, don’t put all your eggs in this basket. You need a backup plan. Only a small percentage of campaigns are successful. Furthermore, take into account the state of the economy before you rely too heavily on crowdfunding. If it isn’t strong, people will not be as likely to invest.
Business Loans and Other Options for Getting Back on Your Feet
If you are struggling for a season to keep things going, these options could help. Remember though, none of them are a permanent solution. To be successful your business has to eventually support itself. Be sure to use the time these funds may buy you to figure out the problem and how to fix it.
Non-Traditional Business Loans
These are business loans from companies other than banks. Typically, they are referred to as private lenders or alternative lenders. A lot of them have popped up in the past decade as starting your own business has become more popular. A need for financing options from somewhere other than traditional banks has encouraged this growth.
There are a few benefits to using private business loans over traditional loans. The first is that they often have more flexible credit score minimums. Even though they still rely on your personal credit, they will usually accept a score much lower than what traditional lenders require. Another benefit is that they will sometimes report to the business credit reporting agencies. As a result, they can help build or improve business credit if you pay them responsibly.
The tradeoff is that private business loans tend to have higher interest rates and less favorable terms. However, the ability to get funding and the potential increase in business credit score can make it well worth it.
Business Credit Cards
Credit cards often get a bad rap all around. It’s no wonder. If you are irresponsible, they can cause a lot of problems. However, if you handle them properly, they can be an amazing business tool. The thing is, using them to get back on your feet does propose a new set of potential issues. Since most of them come with fairly high interest rates, you need to be especially diligent to find and solve the issues that cause you to need this additional funding.
Grants
While there are not a lot out there, grants are probably more common that you think. Usually, these are offered by professional organizations. There are some government grants available as well. Competition can be tough, but they are definitely worth trying for if you think you may qualify.
Requirements vary from grant to grant. Most are only awarded to a certain number of recipients. If you fit into one of these basic categories however, they are worth considering.
There are also some corporations that offer grants in the form of contests. These usually don’t require much other than that you meet the corporation’s definition of a small business and win the contest. For example, FedEx offers such a context each year.
Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.
Business Loans and Other Options for Bridging Cash Gaps
Sometimes you aren’t really down on your luck. You may just have a cash gap that is obviously temporary. Seasonal businesses see this on a regular basis. Another situation that may cause this is that you have some large invoices that just do not get pain fast enough. These things can easily be handled with some of the following tools.
Lines of Credit
The most basic definition of a line of credit is that it is a revolving line of credit, similar to a credit card. You have a limit, but you have access to funds at all times. You only make payments on the portion you use each month.
For example, if you have a $10,000 line of credit, you can use however much of those funds you need each month for whatever you want. That is, unless your lender issues some sort of restriction. Access is most typically granted through checks or a card connected to the line of credit account.
Invoice Factoring
If you are an established business with accounts receivable, invoice factoring is one of the available business funding types that you have access to. This is where the lender buys your outstanding invoices at a premium, and then collects the full amount themselves. You get cash without waiting for your customers to pay the invoices.
This is a good option if you need cash fast. It’s also good if you don’t qualify for other available funding types. The interest rate varies based on the age of the receivables.
Merchant Cash Advance
If you accept credit cards, you may be able to get a merchant cash advance. This is similar to invoice factoring, but instead of buying your open invoices, the lender advances cash based on average expected credit card sales.
Business Credit Cards
Credit cards can help in this instance as well, and they work a lot better here. In the case of a temporary cash gap, you know the money is coming. Using credit to cover a gap temporarily, and maybe collecting some rewards while you do so, isn’t terrible. This is also useful in the discount inventory situation. If you can get a great deal on bulk inventory, you can use a credit card to take advantage and buy at the lower cost. In theory, when you sell this lower cost inventory, you will actually increase your profit.
Open the Door to Any Type of Business Loan and Other Options by Building Great Fundability
Fundability is the ability of your business to get the funding it needs. Highly fundable businesses are able to get business loans quickly and easily. The thing is, few businesses start out fundable. There are many, many factors that affect the fundability of a business. This includes details ranging from something as simple as your business address to things as complicated as liens on your personal record from years ago.
Each and every aspect of fundability is important, and you need to know where you stand with each one. However, one specific piece of the fundability puzzle that is often neglected is business credit. This neglect typically stems from the fact that so few business owners really understand what it is. Many are under the belief that business credit is just debt that is in the business name. That isn’t really the case however.
About Business Credit
Credit cards and loans with your business name on them are still going on your personal credit report unless you take some very specific steps to build separate business credit. First, you have to set up your business to be a separate entity from yourself. Coincidently, this setup process is also what needs to happen to begin building strong business fundability.
Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.
Set Up Your Business to Be Fundable
To set up your business to be fundable you need to ensure you have the following:
Separate contact information including phone number, address, and email
EIN
D-U-N-S number
Separate bank account
Business Website
In addition, you absolutely have to incorporate. You can choose to be an LLC, S-corp, or corporation, but you must choose one. Any of them work when it comes to separating business from owner, so talk to your attorney or tax specialist about which option will work best for your business’s other needs.
How to Build Business Credit to Strengthen Fundability
Once you are all set up, you can start to get accounts reporting to your business credit report. You can ask vendors that you already work with if they will extend credit and report payments. They don’t have to, but they might.
You can also ask those companies you already pay monthly, like utilities and rent, to report your payments. Again, they do not have to, but they may.
Another secret to getting accounts reporting is to work with starter vendors. These are certain vendors that will extend net invoices without a credit check, and then report your payments to the business credit reporting agencies. When you get enough of these reporting, your score will be strong enough to apply for store cards like those offered by Best Buy or Office Depot.
After you get enough of those store cards and make on time payments, you’ll be able to get fleet cards like those offered by Shell and Fuelman. After more of those cards are reporting on-time payments, you should be able to get approval for any business cards out there. For example, those standard credit cards that are not tied to where or what you purchase will be an option. These are the credit cards that can really help bridge a cash gap or, as a last resort, help you get back on your feet.
Get a Business Loan – Conclusion
Getting a business loan doesn’t have to be hard. There are options to cover any situation that may come up. The problem is being eligible for the loans that best fit your needs. You need to be aware of non-financing options and which situations they are best suited for as well. Then, if your work to build business credit makes your fundability stronger, you can be sure that eventually you will be able to get funding to fit any situation that may come up.
Non-mortgage consumer debt therapy is a huge solution area in the United States. It is a typical trouble for numerous individuals in the United States to deal with a prospective bank card financial obligation. To reveal these individuals properly to act these charge card therapy solutions remain in the circumstance.
Annually, greater than one million individuals in the United States go to debt therapists or credit history therapy companies. They desire assistance to remove their charge card financial debts as well as restore economic control. Still customer credit score therapy solutions is an enigma to lots of; they do not understand their functioning procedures as well as the solutions which you must obtain from them when you employ them.
Point that you must understand is that customer debt therapy solutions do not function for you. They will certainly recommend fundings from a details lending institution as they most likely obtain a payment from it.
Below we provide you some tips concerning the working approach of non-mortgage consumer debt therapy.
Mean you go to a non-mortgage consumer debt therapy to do away with your trouble. They will certainly encourage the loan provider to reduce your rates of interest- as well as indeed, naturally this is excellent. The poor information is that you are still paying 90% of regular monthly settlement to fight with credit report card passion.
Below are some concerns you ought to ask to your non-mortgage consumer debt therapy solution company.
* The initial concern you must ask is a cash issue, definition – just how much will certainly they bill you for their solution. Several non-mortgage consumer debt therapy solutions also bill greater than $100, which will certainly not most likely to any one of your lenders. Be mindful as well as ask your initial inquiry concerning their costs.
* Confirm that the non-mortgage consumer debt solution you are to sign up with is signed up with a banks or otherwise. A lot of them do not have any kind of certification to collaborate with credit scores issues.
* Enquire concerning the solutions used at your non-mortgage consumer debt therapy company. Prevent firms which supply you a fast remedy to your debt issues.
* Before signing up with any type of customer credit score therapy solution, reviewed endorsements and also evaluations of companies present or previous customers. If any kind of buddy of your own encountered any kind of economic issue and also ever before seen any kind of customer credit score therapy solution, do not wait to ask them.
* Be certain that the firm you are mosting likely to is signed up as BBB, Better Business Bureau, which is a high quality indication.
With persistance, perseverance, time and also correct credit score therapy you can end up being financial obligation complimentary.
Every year, even more than one million individuals in the United States go to debt therapists or credit report therapy firms. Still customer credit rating therapy solutions is a secret to lots of; they do not recognize their functioning procedures and also the solutions which you must obtain from them when you employ them.
Point that you must recognize is that customer credit rating therapy solutions do not function for you. * Before signing up with any type of customer debt therapy solution, reviewed reviews as well as evaluations of companies existing or previous customers. If any type of close friend of your own encountered any kind of economic trouble as well as ever before checked out any kind of customer credit scores therapy solution, do not wait to ask them.
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