Can You Afford To Borrow Money?
Before you jump into a traditional bank loan, itâ€™s important to answer the following checklist:
- Can you pay back the loan?
- Start by calculating the cash available for your business. Cash available, or cash flow, is the movement of money into and out of your business, measured over a certain period of time â€” usually weekly, monthly or annually.
- Interest rates
- Will you pay back the loan?
- Good Creditâ€” FICO scores, in addition to DTIs (debt to income ratio) and DSCRs (debt service coverage ratio) are heavily weighed by banks to determine approval.
- Banks tend to put more emphasis on credit scores than other, nontraditional lenders like Boost Business Funding. So if you don’t have great credit, you should consider shopping around.
- What are you going to do if you canâ€™t pay back the loan?
- Collateral or capital â€” having assets that the bank can claim if you don’t pay up or extra cash flow that you can redirect toward your loan payments. This is a huge risk.
- For business owners without this cushion, the backup plan takes the form of what lenders call a personal guarantee. This means that if the business is unable to repay the loan, the business owner will be held personally responsible for it.
Know your options.
Alternative financing solutions through Boost Business Funding present key opportunities designed to support your business for the long term.
- Unlike a traditional bank loan, there isnâ€™t just one application for one type of lending method. They are several:
- Merchant Cash Advance
- Inventory/Purchase Order Financing
- Invoice Factoring
- Asset Backed Loans
- Equipment Leasing
- Repayment rates are based on your cash flow- so you never go underwater.
- Boost wants to watch your business continue to grow over the years by establishing a financial support system able to solve any need.
Connect with a Funding Specialist today at 1-888-290-4839, or by email to start accomplishing your dreams.
Our financing team will review your recent business performance to qualify you for an alternative financing solution that fits your needs.
â€œThey have my best interest in mind. Â They donâ€™t do anything Iâ€™m not able to do that will cramp my business.â€
-Boost Business Funding client and Happy Tails Kennel owner, BJ Pim
BANK LOANS vs. ALTERNATIVE FINANCING BLOG
SPOTLIGHT SUCCESS STORY:Â InstallYourFloors.com
InstallYourFloors provides professional installation of carpet, tile, and hardwood flooring. Their company won the Houston Custom Home Showcase award in 2005 and 2007. They were also a filmed participant on HGTV in 2005 and 2008. Based in Houston, Texas, Install Your Floors partnered with Boost Business Funding in 2015 toÂ help build theirÂ growing business. Boost provides companiesÂ with quick working capital to assist in any area of interest, whether that is payroll, marketing, remodeling, inventory, etc. â€œWorking with Brian and Maria was awesome!â€ said Neal Elden, owner of InstallYourFloors.Â When asked if he would recommend Boost to other business owners, Mr. Eden said, â€œI would, and have!â€Â Check out more details at InstallYourFloors.com and contact Boost Business Funding to find out what Boost can do for your small business!
HOW TO MAKE THE MOST OUT OF SMALL BUSINESS SATURDAY
Most shoppers donâ€™t shop at small businesses just for the deals- as they do with major retailers. Rather, they want a more rewarding and memorable experience and expect a higher level of customer service. Small Business Saturday is all about shopping locally and appreciating the real meaning behind the â€œAmerican dreamâ€.
- Open earlier than normal (and your competitors) and close later.
- Offer â€œearly bird specialsâ€ only to those that get there before 10am.
- Make the day some kind of special event. From having entertainment or free food, to organizing an in-store photo contest, there are a number of ways to do this.
- Offer a promotion for that day only. Post signs outside of the store and promote via email, local and social media.
- Ask your shoppers to sign up for your email list and to follow you on social media.
- Partner up with other local small businesses. This might seem strange, but often owners find there is a great mutual benefit to teaming up with other small businesses. Also, customers love to see people working together, especially around the holidays.
- Hand out a free gift with purchase. Customers will remember that special detail and actually go out of their way to purchase something just to get something back. Turn this into an advertising opportunity by customizing the gift with your companyâ€™s logo.
- If you donâ€™t think you can afford spending extra money on the expenses of the holidays (i.e. seasonal staff, promotions/marketing and increased inventory- just to name a few), consider applying for a small business loan or merchant cash advance through Boost Business Funding. Call 1-888-290-4839 today to see how your companyÂ can get a boost.
The holiday season can be a stressful time of year for everyone- but especially business owners. Thereâ€™s a lot to do and little time to do it. It might feel like youâ€™re fighting an uphill battle against your competitors and finances, but there are a number of specific things you can do each month to make sure you get the most out of this time. The key is to plan an outline during the months prior to a major holiday. Hopefully you have already started- but if not, thereâ€™s no better time!
November is by far the biggest shopping month of the entire year. Due to Black Friday, Small Business Saturday and Cyber Monday, the momentum around this time can seem like a freight train to busy small businesses. If your organization would like to be involved with any charity eï¬€orts focused around Thanksgiving or the holidays, this would need to be accounted for in your businessâ€™ budget plan. Philanthropy is a marvelous way to capture attention, while helping your community at the same time. Many owners decide to volunteer their company at organizations, purchase turkeys/hams for families in need, or collect/purchase non-perishable food items to donate. Whatever your outreach eï¬€orts include, they may require a little extra cash-ï¬‚ow. If youâ€™re struggling to find extra capital, obtaining a cash advance from a financial lender like Boost Business Funding is the perfect option for your company. Instead of finding yourself struggling to stay afloat, make this November work to your advantage. Letâ€™s break down the major categories you can focus on to fully utilize the holiday buzz.
INVENTORY & BUDGET
In addition to your past successes, think about what did not sell and why. How was the product or service displayed and priced? When it comes to inventory, obviously it is better to be safe, than to be ill prepared. Boost provides quick merchant cash advances to small businesses looking to improve their inventory. Take a moment to analyze your past data and consider what will -and possibly could be needed.
- How much product did you order in the last couple of years?
- Did you run out of product in the past or did you have a surplus?
- Has your product been selling more or less compared to previous years, prior to the holiday?
- How will you manage your cash flow between investing in your products and selling them?
- What is the cut-off date to order more and have it in time for holiday shoppers?
It may sound like a given, but make sure you know your numbers. Be an expert on your own finances. Donâ€™t be afraid to push negotiations with high-priced vendors. If you havenâ€™t already, add gift cards to your line of products or services. Besides being quick to purchase and providing flexibility, gift cards are instant revenue for your store, whether customers use them or not.
Not oï¬€ering any sales or promotions around Thanksgiving and the following shopping days is a detrimental mistake. It doesnâ€™t mean you have to give anything away for free, but customers do expect a certain level of price reduction from this time of year â€“ and often wonâ€™t even consider buying full price. It may seem overconfident, but not when you think about the entire discount wielding world of competition. Arrange one or two ways you can oï¬€er a discount without negatively aï¬€ecting your bottom line. As you often see at companies such as Macyâ€™s, some go the extra step and give a â€œfree gift with purchaseâ€ to their customers. If youâ€™re in need of extra money quick, contact Boost today. December is also a great month to team up with other businesses and give back â€“ again! Besides the fact that business relationships can be mutually beneficial for your organization, they also solidify your reputation within your community. Everyone likes to see people getting along and working together during the holidays.
Itâ€™s all been leading up to this. The holiday shopping season started well before the ï¬rst of this month, but there are still plenty of opportunities ahead. According to a 2014 report, 23 million people in the UK still had shopping left to do on Christmas Eve. A financial analysist company, First Data SpendTrend found, from looking at card-based transactions at over 400,000 US retail merchants from the period spanning November 1, 2014, to January 4, 2015, that Christmas Eve was the biggest spending day of the year, overriding Black Friday.
KEEPING UP THE ENERGY
One of the biggest struggles during the thick of the holidays is maintaining hard-working, energetic staff. One way to ensure your employees wonâ€™t burn out is by making sure there are plenty of them. Understaffing causes high stress and a lower quality of product or service. You might think you are saving money on payroll, but the cost could be losing profit. A lot of employees want to schedule vacation time or be with their family around the holidays. Often, hiring temporary or seasonal help is necessary for small businesses. If you are suddenly hit with an influx of customers, you want to be sure you are prepared to handle them. A small business loan from Boost can help you to hire and maintain those skilled workers.
2016 BUDGET PLANNING
As mentioned, sometimes you have to spend money to make money. If your goals seem impossible due to low cash flow, contact Boost Business Funding about a quick, customized merchant cash advance. The flexible repayment terms are proportionate to your earnings. Meaning, they will never place unnecessary strain on your cash flow, even if business is slow.
At the end of December, once the holiday dust has settled, itâ€™s important to review your businessâ€™ performance. Did you correctly budget for everything you needed in the past four months? Analyze what you would do diï¬€erently and what you want to repeat next year. How can you improve your business?
Connect with a Funding Specialist today at 1-888-290-4839, or by email to start accomplishing your dreams. Our financing team will review your recent business performance to qualify you for an alternative financing solution that fits your needs.