Refinancing a Business: Why Should You Get a Business Loan

If you’re a business owner who has been running a successful company, you believe in the old saying that to make money you must first spend money. And this is quite true. Businessmen and the so-called “serial” entrepreneurs know that the fastest way to grow your money isn’t through a bank but by operating a business. But sometimes, income coming from your business isn’t really enough to support other expenditures that your business requires. So what can our solution be? The answer is quite simple – get a business loan. A business loan can offer you a lot of advantages and how it can benefit your business. It’s not always that a business loan will only bring more obligations. Weighing in your benefits over your cost of taking on a loan, you might see that getting a business loan isn’t as bad after all. Here are a few reasons why a business loan is good for your business. Expanding Your Location Reach Business must grow and one way to grow it is to expand your market reach by establishing a presence in new locations. But this comes with a price. The money a business may have may not always be enough to cover for the expenditure. Getting a business loan may be the solution which can provide the funding needed to build a new shop or a building in the location you think your business can grow. Purchasing Equipment Nowadays, equipment is becoming more necessary for operations on any type of business. It is no longer limited to business with a manufacturing environment. Equipment can be computers being used for the database, order management, or even service providers. Purchasing this equipment may come at a high price and a business loan can offer to provide the solution. Improving Your Business Cash Flow Sometimes our business can encounter problems such as the cash flow shortage. It may not necessarily mean that your business is going bankrupt but liquidity may be a concern. A business loan can help you with having sufficient cash on hand to support your expenses and operational costs.…

5 Most Realistic Ways to Fund Your Startup

Every great business idea must be put into action before it generates any income. However, if you have no capital, it will be impossible to build your enterprise. There is no free lunch, and you must spend for manpower, equipment, packaging, internet service and communication means. No matter which industry you want to penetrate, it will be difficult if you do not have enough cash to spark it up. Here are five realistic ways to fund your startup. Closest Circle You can ask your family and circle of friends to lend you a hand. One advantage is you can negotiate more openly depending on how close you are to them. If you are lucky, you can even borrow without interest charge. However, if they are giving you a flexible loan in a legal way, you must draft a contract to avoid future dispute. Small Business Loan If you want to get a small business loan, you have to shop around for a licensed moneylender Singapore like Cash Mart. Banks do not give small business loans that easily if you are a startup and can’t afford to have a collateral. Add to that, banks take their sweet time when processing business loans for startups. Bootstrapping Got savings? Fund your own startup and start small for a while. Make do with what you have for now. There will be no interest charge and you are free to plan your finances without worries on any payments or bills in case that you experience any downfall. Crowdfunding If you think that your business idea is catchy enough, then you can take it to crowdfunding platforms. There are various crowdfunding sites. Some cater to artists while others focus on businesses with innovative products. However, be careful not to over promise anything to your investors. You might frustrate them if you are unable to deliver your promise. Also, take the time to read the guidelines or regulations. Keep Your Day Job Successful entrepreneurs who profess that they just took a leap of fate may be inspiring, but doing it yourself is too risky for your future.…

Business Loan Frauds to Watch Out For

Loans are a common means of generating additional funding or cash for your specific needs. One particular loan that is essential to entrepreneurs is a business loan. These types of loan support the business or business owners on generating funds for capitalization and expansion. It can also be used for debt restructuring or other financial management strategy needed to keep the business from continued operations and expansion. One business channel in particular that has been growing these past years is online businesses. This has led to more an more business loans that are entering the financial industry. Unfortunately, where there is demand, fraudulent acts linger as well. With the business loan scams also growing with the financial market, it is best to learn and watch out to avoid falling into their trap. Fees Payment that is Required Upfront. There are cases where a fraudulent lender will require you upfront fees. These upfront fees are then presented as processing fees, evaluation fees, etc. Upfront fees are not required by any lender. Any fees that are needed to be paid during the onset of a business loan should be deducted from the total loan proceeds. Be careful with this type of scam as the fraudster often promises approval and low-interest rate (the kind we want to hear) for a very low “Advance Fee”. Peer to Peer Lending These lending platforms are usually established within an online community such as Facebook and other social media platforms. Because of this, business loans are often offered by scammers under this type of lending. The offering comes from one of the peers in the group soliciting for upfront payments but the lending institution represented is often non-existent. Peer lending is one of the effective ways that allow fraudsters to prey on borrowers. And since most peer lending scams are done online, you not only lose money but your personal identification as well. Credit Repair Scams Most of the businesses have an average credit scoring. A business desires to have one of the highest credit scorings as it allows them privileges that they don’t get unless the…

5 Must-Know Types of Investors for Your Startups

Investors are important players in any industry. They help businesses start, grow and thrive. The budding entrepreneurs need to know which type of investor they need to look for and the best practice to approach them. Banks One way banks make money is by investing in various businesses. They are, after all, the classic place to get a business loan. However, banks have been more risk-averse and tend to lean more on businesses that can guarantee returns. Banks lend to startups, but the process is too taxing and too long. To get approved, you need a collateral or proof of revenue stream. Venture capitalists You can capture the interest of venture capitalists only if your business is able to show a significant amount of revenue. Since this type of investors put in a significant amount of money, they expect to gain returns from the profits of a hedge fund or private equity. Personal investors Certain business owners also rely on their family. Even Donald Trump got a loan from his own father to build up his business. But most family and friends can invest only a certain amount. Do not forget to document every cent and the agreed conditions. Angel investors Angel investors invest in startups only if they are convinced that they can gain from it. They may ask questions on how you will handle your business operations as they would want to give tips on how to steer it into success. Remember that most angel investors are entrepreneurs themselves. To approach them, you may want to find a person who can recommend your business to angel investors. This person may be found in your community groups. Private Lenders There are private lenders who are also willing to help startups plant their roots. Some offer secured loans while others have unsecured. The process is faster than the business loans in banks. However, make sure to understand the loan contract and choose a reputable lender to avoid fraud.