Blog – Page 4 – ONEBOX FUNDING

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!

by Eli

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.

by Eli

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.

by Eli

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.

by Eli

April 28, 2019

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!

by Eli

April 25, 2019

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.

by Eli

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.

by Eli

April 18, 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: 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.

by Eli

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.

by Eli

April 15, 2019

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.

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