2019 April

April 28, 2019
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Unless you’ve been in the industry for a while, or you happen to have a lot of experience in taking out loans, it can be very intimidating to know how to choose the right one. Fortunately, there are loan brokers who are there to help get you the right loan with the best rate and most fitting terms for your situation. However, not all loan brokers are equal when it comes to their knowledge and success rates. So how can you know which loan broker to go with? Here are 3 criteria to consider when choosing your loan broker.

1. Their Experience and Track Record

You wouldn’t want to have surgeon performed by a doctor who has only had his title for a few days, would you? The same should go for the person you trust to get you the best small business loan for your company. You should look into the loan broker’s past, including his education and previous work experience, to see just how much experience he or she has had in their position. Also, you’ll want to check their credentials and make sure that they are legally working in your state, as each state has different levels of requirements in order to broker loans.

  2. Their Payment Model

Of course, you will have to pay for the services of a loan broker, but not all brokers charge the same amount of money in the same way. For example, just like with a loan itself, you might have to pay the broker up front, before any work is started on your behalf. This could mean a no refund policy, even if he or she does not successfully obtain the loan for you. Others will charge their fee only after you’ve signed for the money.

3. Their Relationship With Lenders

Just because you’ve paid a loan broker to act on your behalf, does not mean that you are his only client. In fact, there is a good chance that your broker is also working for certain specific lenders, which he or she may favor and therefore direct you toward, even if the lender is not the best loan for you. Try to double-check that your loan broker is acting in your best interest, and not in the interest of a big-time lender who will probably give him or her a cut of the money when he gets a signature from you.

Getting a loan can seem scary, but with a trustworthy loan broker, your life will be a lot easier. Just make sure to do your research first, so you don’t find yourself signing for a bad deal.

Ready to take the first step to reaching your financial goals? Click here for a FREE quote from Onebox Funding, and find the best loan with the lowest rates, today!


April 25, 2019
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Everyone makes mistakes, but when you’re a business owner you want to keep them to a minimum, especially when it comes to your money. Even successful business owners have made some financial mistakes in the past, but it’s important to learn quickly from them and adjust your strategy to optimize your revenue. Here are 3 big mistakes small business owners make when it comes to budgeting that you should avoid at all costs.

1. Underestimating Your Expenses

It’s easy to see a nice cash flow and feel good about the status of your company, but before you start spending your hard-earned money, you need to make sure that you have made realistic projections about your costs. Often times, businesses do not prepare for the full amount of their daily, weekly, and monthly expenses, which leaves them bare when payday comes due. Not only should businesses be saving their money to cover all costs, but they should be budgeting for any changes that may come about in cost of rent, broken or out-of-date equipment, unexpected travel, or increased labor, to name a few.

 2. Hiring the Wrong Employees

It may be tempting to go with the first or second potential employee who walks in your door, especially if you are trying to grow in the shortest amount of time possible. However, not taking your time with the hiring process would be a huge and costly mistake. Firstly, you will need to take time out of your own or your current employees’ day to train new recruits (which could take months, depending on the industry you are in), so you need to make sure the use of time is worthwhile. And imagine if the employee isn’t qualified, didn’t understand the requirements of the position, or causes problems with the culture of your company. You’ve just spent time and money on someone who turned out to be a dud. Make sure to conduct multiple interviews, speak to references, and do your research on that person before giving the final yes to take him or her on as a new employee.

3. Plan According for Tax Season

In the United States, businesses pay a pretty heavy federal, state, and local tax. If you are not very accurate in estimating the amount of taxes your business is required to pay, you will find yourself with a rather large discrepancy in your budget. Make sure to look over your previous year’s tax records when you plan for the current year’s budget. And remember, it is better to overestimate how much you will owe in taxes and have some extra working capital leftover than to underestimate and find yourself in the red.

Want to learn more about taking out a small business loan to grow your company? Find out more with Onebox Funding here.


April 22, 2019

The need for money is not a new concept. Studying, starting a business, purchasing a home, or even paying off existing loans often requires large sums of cash that a person may not have on-hand. There are many types of loans available, and each one serves a unique purpose and has its own type of payments terms that go along with it.

Knowing which type of loan to take out that fits your needs best is very important when it comes to making sure you get what you need out of it and that you’ll be able to pay it back. Today, we’ll look at two different loans that can be deceivingly similar, and see which one is best for your needs: Personal Loans and Business Loans.

Personal Loans VS Business Loans

When you look closely at these two types of loans, you’ll see that the basic premise of each is the same. Both will give you a certain amount of money with an interest rate and payment terms attached to it. The rate of interest and the amount of time given to pay it back depends on each individual lender; there is no fixed rate and time for personal or business loans as a whole. That being said, there are two main differences between these two types of loans: eligibility requirements and uses of the money.

Requirements

To borrow any loan from any lender requires certain checks into your personal details for the lender to ensure that he or she will get his money back in a prompt manner. Business loan lenders will often look at your business’s credit score, a year’s worth of bank statements showing record of your company’s sales, your company’s time in business, the industry, and the past year’s taxes. For a personal loan, the lender will evaluate the risk of lending you money via your personal income and your own credit history.

Uses for The Loan

Of course, the lender will also want to know why you need their money and what you want to use it for. For a small business loan, you’ll want to have a purpose for the loan money at the ready, whether it be to purchase new equipment (you’ll want to look into Equipment Financing), to pad your payroll for slower months, or to open up a new branch. Personal loans should be used for things not related to business but more to your own personal life such as helping with medical bills, making home improvements, or paying off car payments.

How to Choose

Basically, you’ll want to make a clear separation between business matters and those of your personal life. Once you have an understanding of what type of payment you’ll need the money for, you should have an easier time choosing which type of loan to go for.

Interested in a business loan for your company? Find out more information with Onebox Funding here.


April 18, 2019
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There are many different types of loans a person can take out, from many different types of lenders. For example, a college student can take a student loan from the government, from a private lender, or from the bank, whereas a new homeowner can take a mortgage out from a whole handful of different providers. Each type of loan and lender has very different payment terms, interest rates, and requirements for eligibility.

Taking out a loan for your business is no different. There are so many different types of business loans, it can be intimidating to know if you’re choosing the right one. In this series, we will talk about the 5 main loans you can take out for your business. Today we will cover one of the most attractive loans taken out by business owners: Debt Consolidation.

What Is Debt Consolidation?

Taking a loan for the purpose of Debt Consolidation is a move made by many businesses. Often times, business owners must take out multiple loans over the course of many milestones throughout their business’s life. Because they have not taken these loans out all at once, they often come from different lenders and come with different interest rates and payment terms. Taking out a loan for Debt Consolidation entails taking out a loan for the sum of all of your multiple loans, combined, using it to pay them all off, and then continue paying off this one, individual loan to one specific lender.

Who is Debt Consolidation Best For?

Debt Consolidation is a great move for business owners who find themselves with debt coming from multiple loans, especially those with high interest rates and tough payment terms (i.e. not enough time, payments are too frequent, etc.). Even if the payment terms are alright, it can be helpful to condense everything into one single monthly payment that goes to one place, instead of having to keep track of each due date and each location to sent the money to.

The Benefits of Debt Consolidation

Debt Consolidation has the benefit of taking all of your different loans, no matter what they were taken out for, and condensing them all into one place. This means you only have to worry about one single payment with one fixed interest rate that goes to one place. Consolidating your debt into one loan gives you peace of mind by making everything a lot more organized.

The Cons of Debt Consolidation

If you have multiple loans with low interest rates, consolidating them might not be in your best interest, as there is a chance of the new loan’s rate being higher, therefore you end up paying more money in the long run. Always check to make sure you are paying off and combining loans by taking a Debt Consolidation loan with a better rate.

Does it sound like Debt Consolidation is the right type of loan for your business? Find out more with One Box Funding here.


April 18, 2019

“Time is money” is probably a phrase you’ve heard before, especially if you happen to be one of the hard-working people who start their own small business. Whether you wanted to work with something that you’re passionate about, or you just want to be your own boss and make your own hours, having your own business is something that you can be very proud of. However, it’s not all fun and games. In fact, it is an unimaginable amount of hard work to start your own company, which is why most business owners are losing sleep (especially during the first 6 months to a year).

So if time is money, that means that every minute you spend working on growing your empire is another dollar coming your way. This is true, to an extent, however, there is a peak and plateau that comes with working all hours of the day. It’s great to work hard and passionately in order to build the business of your dreams, and it’s even better to have goals for the future of it. But, working day in and day out for extended periods of time without a break is actually a recipe for disaster. Here are 3 big reasons to disconnect fully from your company from time to time.

1. Preventing Burnout

Burnout is one of the leading causes of failed new businesses, and it can happen if you are not taking enough breaks. When you first come up with an idea, you are full of passion, innovation, and excitement, and you are running on pure adrenaline to put your ideas into motion. Unfortunately, this burst of motivation does not last forever, and you’ll find it quickly leaves you once tedium and struggle (which are inevitable for any business) set in. Make sure to pace yourself and distribute your energy evenly by taking intermittent breaks from your work, so that you don’t burn out after a few months.

2. Having a Fresh Perspective

When you find yourself looking at the same problem for a long time, without a break, you begin to lose clarity and focus. However, if you were to take a step back and do something else for a while, most likely you’ll find that when you do return, you will be able to look at the situation in a different, refreshed way.

3. Appreciate Your Life Outside of Business

Focus on something other than your dream company? Absolutely. It’s so important to remember that there are always other aspects of your life, like your family and friends, your health, your hobbies, etc. To have a truly full life, you need to make sure that your business doesn’t take you away from the people you love.

Want to learn more about the best business loans? Check out Onebox Funding here and get a FREE quote.


April 15, 2019
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No matter what type of company you have, whether it’s a small bakery or a huge wholesale factory, the end goal of every business owner is to make a sale. When a customer is moved to make a purchase, the company gains revenue and the customer receives a good or a service, it’s that simple. However, the more successful companies, i.e. the ones which are making the most sales, seem to focus not only on the end goal of purchase or conversion but on the entire the customer journey itself.

Understanding your customer’s experience as they go through the journey of making a purchase is vital to running a successful business. At the end of the day, the customers are the ones paying for your services, so it’s important to make sure that they are feeling satisfied in every possible way.

To truly understand your customers’ journey, it’s a good idea for business owners to go through the process themselves; in other words, to put themselves in their own customers’ shoes. Do you run an online business? If so, how does your website look? You must make sure that your online shop is perfectly suited for a comfortable customer experience. Users must not feel intimidated but a complicated interface, bombarded by sales pitches, ads, and fluff information, or lost trying to navigate through many confusing landing pages.

Another important piece of the customer journey actually happens after the purchase. While there are some businesses that don’t need to worry about their users once they make a purchase, for most, this is not the case. For one thing, the user’s experience after purchase is extremely important for businesses that have repeat customers. If the consumer feels that they’ve received good value for their money, they will surely come back for more. However, even if your particular business is for a one-time purchase, for problems that arise afterward (i.e. broken product, payment issues, needing assistance, etc.), businesses must be easily accessible to help out.

For smaller businesses, word of mouth is one of the biggest ways to get your name out there. If your customers are used to a satisfying experience, every time, they will surely spread the word to friends and family looking for similar services. However, if your customers feel they are not appreciated or taken care of, they will most likely recommend to others that they go somewhere else, despite the quality of your product or service. Customers have even been known to take a slight reduction in quality for a fuller, more satisfying user experience.

Interested in a business loan for your company? Find out more information with Onebox Funding here.


April 11, 2019

There are many different types of loans a person can take out, from many different types of lenders. For example, a college student can take a student loan from the government, from a private lender, or from the bank, whereas a new homeowner can take a mortgage out from a whole handful of different providers. Each type of loan and lender has very different payment terms, interest rates, and requirements for eligibility.

Taking out a loan for your business is no different. There are so many different types of business loans, it can be intimidating to know if you’re choosing the right one. In this series, we will talk about the 5 main loans you can take out for your business. Today we will cover one of the most attractive loans taken out by business owners: Equipment Financing.

What Is Equipment Financing?

Equipment financing is a specific loan business owners can take out in order to finance a new piece of equipment, tool, appliance, inventory, etc., to further grow and/or enhance their business. Most businesses, especially those which are considered to be brick-and-mortar, must make rather large purchases of equipment in order to get started on making sales. This type of loan is provided by the usual bank lenders, as well as by private financial institutions. The terms work as most loans do, with a decided upon interest rate, and a set amount of time to pay it back.

Who is Equipment Financing Best For?

This type of loan is great for new businesses and businesses that are growing or expanding into new areas. No matter the size of the entity, there is always some sort of purchase of physical or technological equipment that needs to be made in order for that business to function. Often times, especially if the business is brand new, business owners do not have the working capital to make these huge purchases, and could greatly benefit from a loan that specifically finances their new equipment. No matter the type of company, Equipment Financing can get business owners the money they need to make the big purchase, so they can start making a profit.

The Benefits of Equipment Financing

The benefit of Equipment Financing is that the payment terms are very standard and predictable. Also, the equipment itself serves as nice collateral, so there is no need to put up your own personal assets as such. Plus, having this type of loan can help new businesses build their credit scores in a relatively standard way.

The Cons of Equipment Financing

The biggest con when it comes to Equipment Financing is that your equipment may become outdated before you get a chance to pay it off, requiring you to purchase updated equipment as you continue to pay for the old pieces. Also, some lenders may require higher interest rates or a good credit score to be eligible, but this is totally dependant on each specific lender.

Does it sound like Equipment Financing is the right type of loan for your business? Find out more with One Box Funding here.


April 8, 2019
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In almost every business, new or old, you can hit roadblocks when it comes to cash flow. Maybe you’ve had a bad month, or maybe you are scaling and you don’t have the working capital on-hand when you need it. Whatever the reason may be, it’s important to have enough funds to keep your business afloat as you work. Taking out a small business loan can be a great way to get the money you need. Here are five signs that your business could be the perfect candidate for a loan.

  1. Your daily ending balances are low.

If you are looking at your balance at the end of the day, and it’s barely breaking even, you might be in need of a small business loan. Especially in the beginning of making a business, or in a period of growth, it’s important to have funds on-hand in case you need to make any quick changes or purchases.

  1. You have more than 8 negative days in a month

Forget about breaking even, what if you are consistently in the red. If you find that you are in the negative for more than 8 days out of the month, you could be looking at trouble in the near future. More than 8 days of ending up in the negatives, makes you a good candidate for taking out a business loan, to help get yourself back on track.

  1. You need cash flow for a new contract

You shouldn’t let a lack of funds get in the way of growing your business. It would be a shame to pass up a new business relationship just because you don’t have the cash to make it happen. If you’ve managed to get yourself a new contract, taking out a business loan for some fast-cash is a fantastic way to make sure you don’t miss an opportunity.

  1. You need new equipment

Just like you shouldn’t let a potential new business relationship slip away for lack of funds, you shouldn’t miss out on a new project because you can’t afford the equipment. A loan for equipment financing can get you the materials, tools, or technology you need to feel comfortable taking your business to the next step.

  1. You don’t have enough money left for payroll

If your business is making you money, but you don’t have enough left over to pay the people who are helping you to make it happen, you’re in a bad situation. Paying your employees the full amount that they deserve is absolutely vital in making sure your business continues to run smoothly and successfully. Taking out a business loan will pad your funds so you make sure your employees aren’t feeling under-compensated.

Ready to apply for your business loan? Check out Onebox Funding here for a free quote.


April 4, 2019
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There are many different types of loans a person can take out, from many different types of lenders. For example, a college student can take a student loan from the government, from a private lender, or from the bank, whereas a new homeowner can take a mortgage out from a whole handful of different providers. Each type of loan and lender has very different payment terms, interest rates, and requirements for eligibility.

Taking out a loan for your business is no different. There are so many different types of business loans, it can be intimidating to know if you’re choosing the right one. In this series, we will talk about the 5 main loans you can take out for your business. Today we will cover one of the most attractive loans taken out by business owners: Small Business Administration Loan.

What Is a Small Business Administration Loan?

This type of loan is actually backed by a branch of the US government called the Small Business Administration (SBA), whose function is to facilitate loans taken out by small businesses. Although these loans are backed by a Federal organization, they are not provided directly by the government. Instead, private financial institutions are the lenders, and the loans are partially insured by this governmental branch. There are a variety of types of SBA loans, ranging in size for small businesses to larger firms. For the most part, these loans can be taken out by business owners with at least a 20% stake in their companies, and are typically provided by large financial institutions, as opposed to smaller lenders.

Who is a Small Business Administration Loan Best For?

This type of loan is very sought after, as the payment terms are quite attractive to any business owner. This type of loan is great for business owners with companies that have already been up, running, and profitable for some time, who need a cash boost. These lendees should have a good credit score, and bank statements to show that they have a steady revenue stream.

The Benefits of a Small Business Administration Loan

The SBA Loan is probably the most attractive type of loan for small businesses because it has flexible payment terms and very low rates. Once a business owner is approved, he will have very low fees, and will even have the option to stretch the payment terms over up to 25 years. Also, because the government is backing part of the loan, banks are much more willing to underwrite it for eligible parties.

The Cons of a Small Business Administration Loan

Because this loan is so attractive, the application process is not as simple as that of other loan types. Potential lendees must provide a lot of documentation, including proof of a good credit score and steady revenue flow, which can take time. Personal collateral is required for an SBA loan, which could but your property at risk. Also, this loan is not applicable for new businesses whatsoever.

Does an SBA Loan sound like the right type of loan for you? Get more information here.


April 1, 2019
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The majority of businesses experience, at least to some extent, an ebb and flow of successful, booming sales and a slow season. While this is perfectly normal, as supply and demand are constantly changing, the slower periods can be hard. Although your sales are going up and down as the seasons change, those few months of dry-spell can be challenging when utilities and payroll and other expenses, which pretty much remain a constant.

Seasonal business who experience difficulty during times of slower business can benefit greatly from applying for a small business loan. Taking a loan, even a small one, assures that your business has the funds it needs to make it through the slow period until your sales start to rise again. Any seasonal business owner who wants to apply for a small business loan must first complete these 3 steps to assure their loan approval.

1. Submit 12 Months of Bank Statements

If your business is even remotely seasonal, your paystubs throughout the year most likely vary greatly from month to month. Be sure to have at least one full year’s worth of bank statements available to that lender can understand the full picture of what your sales look like, and not just during certain periods of success or slowness.

2. Prepare an Accounts Receivable Report

If your business allows customers to pay with a credit card (which is practically a given in this day and age), you’ll need to have an Accounts Receivable Aging Report prepared to show the lender all of the sales that you may not have received yet in full, if at all. This will give the lender a good idea of what revenue is still yet to come, as well as an understanding of your customers’ payment behavior.

3. Submit Your Most Recent Tax Return

At the end of the day, business loan lenders want to make sure that they will be paid back within a reasonable amount of time. Your most recent tax return is probably the most important thing a lender will want to see before determining if you qualify for receiving business funding from them. They will be looking into your credit history to see if you have bad credit, big losses, or other activity that they might deem a red flag.

Taking out a small business loan during times of slower sales can be a great move for all sorts of business owners. Having working capital on-hand for any situation that comes up gives you peace of mind and a clear head to be able to use your time optimally and efficiently.

Ready to apply for your business loan? Check out Onebox Funding here for a free quote.