2019 May

May 27, 2019

Any business owner will agree that an increase in their cash flow is never a bad thing. Although selling more products or gaining more customers may seem the most obvious ways to do this, there are other, more behind-the-scenes ways to go about bringing more money into your business. Here are three ways to increase your business’s cash flow that don’t have to do directly with selling more.

Stick To a Budget

Sticking to a budget is important to do in any aspect of life, but especially so when it comes to your business. Having a clear, set budget when you begin the day, month, quarter, and year will ensure that you always know about where you stand when it comes to your money. If you don’t have a solid budget to stick to, you will almost definitely get muddled up in all the transactions and expenses in your daily business dealings. Budgeting out all of your expenses (and planning for the ones you might not see coming) will keep the maximum amount of working capital in your hands, and you won’t lose money on poor planning.

Never Have More Than a 50% Income-Debt Ratio

While nobody wants to be in debt, often times it’s unavoidable when you’re opening or growing your own business. In fact, if done smartly and well-planned, it could be very beneficial to business and get you more profit in the long run. However, you never want to get yourself into a situation where you are making less money than you owe. If you find yourself in a situation where you are coming to a breakeven point, don’t take out any more debt until you get it handled. It’s a very slippery slope when you are not pulling in enough cash to at least equal what you are putting out.

Only Put Business Expenses On Your Business Account

If you start making money from your business, it can be very tempting to start buying yourself personal things here and there. Even if these expenses are small, it’s very important to keep your business expenses and your personal ones completely separate. It can be only too easy to get caught up in spending on things you want here and there and find yourself in a situation where you don’t have enough revenue to take care of your business’s expenses (this is especially dangerous when there are unseen/emergency costs). It’s better to create a budget (see tip #1) and set aside revenue coming from your business, to pay for itself. Once you finish this, and you have your profit, you can put that into your own personal account, and use it as you will. This clear separation will help you stay organized and make sure you aren’t left high and dry when it comes to keeping your business afloat.

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May 23, 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.

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May 20, 2019

Nobody wants to find themselves in a situation where they owe more money than they can pay. Being in debt is no laughing matter, and it doesn’t ever feel good. But what if we told you that going into debt can actually make you a profit in the long run. Of course, this is not the case with every kind of debt, but if you are a business owner falling on some hard times, taking out a small business loan (therefore, going into debt) could be the answer to increasing your revenue and reaching all of your financial goals. Here are three ways that getting yourself into some (reasonable) debt can actually grow your business and have you earning more money than ever before

1. Equipment Financing

If your business is failing, it might well be because you don’t have the latest, most updated equipment, appliance, or technology needed to keep up with the competition. Of course, if you have little to no cash flow coming in, you probably cannot afford to buy that new industrial-sized pizza oven or restock your building material inventory. But, if that new piece of equipment will mean the difference between a failing business and a flourishing one, it’s a good idea to take out a loan for equipment financing, spend the money on whatever new tools you need, and then start running your company more efficiently. With the money you’ll make, you can pay back the debt in no time, and you’ll find yourself in the black from now on.

2. Debt Consolidation

When you’re already in debt, the last thing you want to do is take out more money. However, sometimes in order to pay off your debt in the quickest, most efficient way, you need to take out even more of it. A debt consolidation loan is basically a lump sum of money that can be used to pay off each of the debts you already have. Why take out more debt to pay your current ones? Well, if you have multiple loans with varying interest rates, payment terms, and due dates, it is much more difficult to keep track of everything and to keep yourself from becoming overwhelmed. Instead, you can take out a debt consolidation loan, pay off your multiple lenders, and then only have to worry about one payment with one interest fee.

3. Merchant Cash Advance

Ever head the phrase “you need to spend money to make money”? Well, this is very true in many cases, and that’s where a Merchant Cash Advance comes in. Maybe you don’t need to purchase a solid piece of equipment, but you do need working capital, on-hand, in order to get things moving with your company. Having this cash, up-front, can take the burden off of trying to earn the money in order to do what your business needs. You take care of the beginning payments and let your company pay for itself.

Ready to start reaching your business goals? Check out Onebox Funding for a FREE quote, today!

May 16, 2019

You’ve completed the application, filled out all of the paperwork, and were finally accepted for the small business loan you need to grow your company. Although you’ve done all of the hard work, there are still a few things to be done before the day the loan money will be deposited into your account. Here are the 3 steps to take before funding day, so the process goes as smoothly as possible, and you can get back to focussing on reaching your business goals.

1. Make Sure Your Online Banking Is All In Order

The days of hand-to-hand cash transactions are long gone. Most, if not all, official loan payments are sent via the internet, so it’s imperative that you have your account all set up and working flawlessly for the transaction to go through. When applying for the loan, you must provide the lender with a year’s worth of bank statements, so that they can determine what your revenue flow looks like, so they can tell how long it will take for them to be paid back. While you may have provided these documents, the lender will most likely want to check and see if they have been forged or manipulated. An online baking account will ensure the lender that nothing fraudulent has happened and that the statements are completely true.

2. Make sure Your Account is In The Black

When the day finally comes that the money will be transferred, you’ll want to have a positive balance in your account, even if it’s not a huge amount. With most accounts, if you are in the negative, and money comes in, it is automatically used to cover your deficits. If that loan money was intended for a different purpose (for example, to grow your business and pay off your deficits with the revenue), you will instantly lose a chunk of it to cover your previous debts.

3. Be Available For a Call From the Lender

It is common practice that, on the day you get your funds, the lender will call you to confirm the last minute details. You should, to the best of your ability, make yourself available for a 15-30 minute call to make sure that the lender has your bank and business details. He will want to confirm that he is sending the money to the right account and that he has the correct information regarding your business and the intended purpose of the funds.

Ready to start reaching your business goals? Check out Onebox Funding for a FREE quote, today!

May 13, 2019

You may already know that when applying for any type of loan, the lender will automatically check your credit score to see how high or low it is. You might also already be aware that your credit score directly affects your chances of being eligible for taking out a loan in the first place. What you may not know, however, is that even if you are accepted for a loan, your credit score can actually affect the terms of that loan.

When applying for a loan, particularly a small business loan, the lender will look at a few different things. This includes a year’s worth of bank statements, the time you’ve been in business, your last year’s tax return, and your credit score. Assuming you have all of these documents and they can prove that you are making money, your debts don’t outweigh your revenues, and you don’t have anything suspicious going on, you will most likely be accepted to take out a loan.

However, just because you were granted the loan, the terms of that loan will look different for everyone, depending on his or her credit score. If you have a low credit score, this tells the lender that you are not punctual in repaying your debts, or maybe that you haven’t been able to raise the money to pay them back by the correct due date. Assuming the lender is willing to give you the loan, despite a lower credit score, you can expect the following things to look different from a lendee with a higher credit score:

1. Payment Terms

If you have proven, by the looks of your low credit score, that it takes you a very long time to pay back your debts, the lendee will most likely shorten the timeframe you have in which to pay the loan back. This is mostly because the lendee wants to put himself and his money “at risk” for as little time possible. With a higher score, you have gained more of the lender’s trust, and he will, therefore, most likely be willing to part with his monet for longer, as he feels he is sure that it will be paid back without issue.

2. Interest Rate

Just like with the length of your payment terms, your interest rate will most likely be much higher with a low credit score. The lender will charge you a higher premium to use his money because you have not proven trustworthy enough in the past. You can probably expect your interest rate to be a few percentage points higher than lendees with a lower score, because the lender is giving you funds with a greater risk to him.

Ready to start reaching your business goals? Check out Onebox Funding for a FREE quote, today!

May 9, 2019

Many business owners decide, at some point, that taking out a loan to help finance their company is imperative for their growth and success. However, like any application for a loan, a position, or otherwise, it is not guaranteed that your request will be approved. Here are three reasons your small business loan application might be denied.

1. Insufficient Funds

Unlike a gift or a scholarship, a loan that’s given by a lender is rented, and must be paid back in full according to payment terms agreed upon by the two parties involved. Because the lender will want to know that he is guaranteed to be paid back in the determined amount of time (and paid the extra interest attached to the loan), he will need to make sure that the lendee has the funds for it. Of course, if someone is borrowing money, it’s because they do not have the full amount available to them for immediate use. However, someone asking to borrow a large sum who has no money at all, to begin with, is a red flag for any lender. Make sure that your account has a sufficient amount of money to prove to the lender that you are not in the red, and need his moeny for the purpose of trying to climb out of it.

2. Declining Revenue Month-to-Month

One of the first things a lender checks before granting small business owners a loan is their past year’s bank statements. This gives them an general idea of the ebbs and flows of cash flow, by month. Most business will see ups and downs during different times of the year, that’s very typical. However, if a lender sees that each month a business owner’s revenue has continually declined, this is a sign that the business might be failing. If the business fails and there is no more cash flow, the chances of the lender being paid back become slimmer and slimmer. Before applying for a small business loan, check a year’s worth of bank statements and make sure that they show regular inclines and declines in revenue.

3. Debt-to-Income Ratio is Higher Than 50%

It’s okay for a business to have some debts to pay off, whether it be from previous loans, order backlogs, or payment returns. However, there is a limit to how much debt a business can be in, in comparison to the revenue it earns. If the ratio is higher than 50%, meaning that the company’s debt is higher than the money coming in, it becomes a serious red flag for any lender. It’s simple math; if you owe more money than you make, and you want to borrow even more of it, the chances of you paying it back are quite low.

Ready to apply for a small business loan to grow your company? Click here for a FREE quote from Onebox funding for the best rates.

May 6, 2019

So, for whatever reason, you’ve decided to apply for a small business loan. Maybe you want to expand your business and you need immediate working capital. Or maybe you need to update your appliances or bulk up your inventory and would like to apply for equipment financing. Whatever your business need may be, one of the many types of small business loans could be the answer to meeting your financial goals.

However, unless you are an expert in the loan business, choosing the right type of small business loan for you can prove intimidating, as there are many types with varying payment terms. That’s where brokers can be a huge help in making sure you’ve made the right choice when it comes to financing your business. Here are three reasons why you should use a broker when choosing your small business loan.

1. A Broker is Familiar With The Loan Options Available

As we’d mentioned before, there are several different types of business loans, each for different needs. However, the one that fits your needs best may not be clear at first. A loan broker knows about each type of loan, what purpose it serves, what the interest rates typically look like, and how the payment terms are set up. A broker can help guide you to the right one by looking at all the different aspects that go into each loan and find the one that fits you best, from all angles.

2. A Broker Can Help You With Your Interest Rate

If you find a good loan broker, it is likely that he or she has a wide network of connections in the loan industry. Even if you’ve done your research, you might not be getting the lowest possible interest rate simply because you don’t know about every option you have available. Be sure to use your broker’s network to the fullest, so you can have the best payment terms possible.

3. A Broker Has Excellent Connections In The Industry

As we mentioned before, a good broker probably has an even better network of connections within the loan industry. Although it’s not guaranteed, often times brokers are able to get their clients exclusive deals (lower interest rates, easier payment terms, etc.) if they opt for one of the lenders in his or her network. Though this might not work every time, it’s always good to go with someone who knows the business, as they often have their own little perks that you could benefit from too.

Ready to get started growing your business and begin meeting your financial goals? Click here for a free quote and let Onebox Funding’s excellent connections and knowledge guide you, today.

May 2, 2019

Ever since the feminist movement in the 1960’s, when women in American began to enter the workforce in droves, women have been climbing the corporate ladder and becoming more successful than ever before. Not only do they hold jobs that were, for many years, available only to men, but many have taken management and entrepreneurial roles.

Women in entrepreneurial and managerial roles often excel in their positions. While this may not be surprising, it is interesting to explore what makes women so successful at leading teams, company operations, and even entire businesses. Here are the three traits women often have which equips them with the tools for success in business.

1. They Are Excellent Multi-Taskers

Women are programmed to be able to multi-task and have been doing so for centuries. Years ago, women were often expected to keep the house, raise the children, and take care of her husband while he was at work. This family model is outdated, and often times, modern women take on all of these responsibilities while they are also employed. Being able to multi-task efficiently makes running a business, with its many different complexities and responsibilities, a bit more doable.

2. They Are Good Listeners

Women tend to be a more willing shoulder to cry on than men when the issue of discussing feelings comes up. But being a good moral support system isn’t the only benefit to being a good listener. Women in managerial roles tend to take other peoples’ thoughts and opinions into account, which helps keep employee spirits high. Not only that, but being a good listener also makes people connect more strongly with you, so this is a great skill to have when it comes to networking and creating great connections for better business opportunities. Also, it helps that they typically have their ears and eyes open to everything happening around them, leaving little room for missed opportunities or potential errors in business.

3. They Are Less Likely To Be Over-Confident

While this may not sound like a good thing at first, being a little less sure of yourself can actually help you a lot when running a business. Being in charge of a company means that you must always be growing and adapting to changes, whether they be in the market, in your customer base, or in demand. We aren’t saying to be constantly second guessing yourself, but if are aware of your own humanity, that is, the potential for error, you will be more likely to catch any mistakes or rethink certain ideas to be even more efficient.

Want to learn more about taking out a loan for your small business? Click here for a FREE quote.