March 25, 2019

It happens before you can even understand what’s going on. You’ve taken a small business loan here and borrowed some more money there. Pretty soon, you’ve got debt coming at you from all angles. Not only do you owe money to multiple lenders, but each debt comes with its own interest rate and payment terms. When you have multiple due dates for radically different payments, things can get out of control, fast. But all hope is not lost, as there is a great way to get all of your business’s debt under control; this solution is known as debt consolidation.

Debt consolidation, in summary, is a way to take all of your separate loans from separate lenders and combine them into one payment. This single payment will have only one interest rate, and one set of payment terms. There are a number of reasons why debt consolidation can make getting out of debt easier.

Firstly, if you have many different small business loans you’ve taken out over the years, you are probably adhering to the terms of each lender, individually. So, if one loan has a payment due on the 15th of the month, and another one is due 10 days later, you’ll find that making payments takes up a good deal of your time. You might also find that one of the loans must be paid within five years, and another one only gives you a year. Keeping track of all of these separate terms is both stressful and time-consuming. When you consolidate your debt, you can make a one-time monthly payment that you set up with one lender, and then get back to your business.

Along with the multiple loan terms, you most likely have multiple interest rates. While some lenders might have a reasonable rate, many do not. If your loan with the lower interest rate needs you to pay it off in a shorter amount of time, and one with the higher rate gives you a little more leeway, you’ll actually end up paying more money in the long run, because your money ends up trying to keep up with the loan you have less time for, instead of trying to bring down the higher interest that’s ever-accumulating.

It’s important to understand that debt consolidation does not reduce your debt. However, it definitely does help you to pay it off in a much more doable way, to one single lender with one interest rate. Also, although your principal balance stays the same, you most likely will end up paying less money in the long term, when you look at the potential reduction of interest rates.

If you’re ready to start paying off your debt in a financially smart way, check out Onebox funding’s debt consolidation program and see if it is right for you and your business. Don’t let debt drag you down, take care of it today and get back to making your business great.

March 11, 2019

Taking out a small business loan is an excellent idea for new business owners who don’t have the cash on hand to their new company up and running, or to take it to the next level. With so many options of how to use your new funds efficiently, it might seem intimidating to choose the best use for your business. Here are the main uses of small business loans, and how they can help benefit you in your new business.

1. Equipment Financing

Almost every new business needs some sort of equipment, technology, or system put in place in order for it to get off the ground and start running. Whether you need a big brick oven for your pizza shop, a VOiP system for your call center, or even a new laptop to start your freelance writing career, you need cash to purchase these items. It’s no secret that a brand new 4×4 to carry all of your materials or a few tons of wood to begin your construction business will cost you a pretty penny. A loan for equipment financing gives you the money right there to buy the items needed to actually do your business.

2. Merchant Cash Advance

A merchant cash advance is not exactly a small business loan, but it does give you an advance of money that business owners can use for whatever business expenses they may run into. Like a loan, a lender will advance you the amount of funds you’ve requested, as a cash advance, however, the application and payment processes work a bit differently. There is no collateral needed to get an MCA, no matter your credit score. Also, the cash advance is paid back daily to the lender, as a percentage of your business’s daily sales, along with a fee.

3. Debt Consolidation

Maybe this isn’t your first go at starting up a new business, or maybe you’re being dragged down by loans from other business endeavors you’ve embarked on. Whatever the reason may be, many new business owners find themselves hesitant to try their projects again or to start something completely new because they are already weighed down by past loans they’ve taken out from different lenders. Most likely, these other loans have their own individual interest rates and fees, and the costs can get out of hand, quickly. Luckily, a small business loan for the purpose of debt consolidation is a great way to get all of your affairs organized. With this money, you can pay off all of your other loans, and then have only one to worry about, with one interest rate and one term of payment to one single lender.

Whatever your reason may be, taking a small business loan is a great way to get the cash you need, fast. Don’t let a lack of funds get in your way of creating your dream company. Take advantage of a small business loan today.

Ready to take your business to the next level? Find out more about the right small business loan for you with Onebox Funding, here.

March 4, 2019

Imagine a world where you simply ask strangers online to give you money for whatever project you’d like to do. And, if they believe your idea is good enough, they’ll just give it to you. This sounds like something that’s too good to be true, right? Well, it is true. It’s called crowdfunding, and in the right circumstances, it could be a fantastic way to help fund your business to get it off the ground.

Crowdfunding started gaining popularity in 2009 when a website called Kickstarter launched an online platform. You simply create an account and describe the details of your campaign. How much money you will need, what type of project you’d like to get off the ground, and how your idea will make life better for your customers.

Of course, if your idea isn’t good enough for potential crowdfunders to see the value in putting money into it, you probably won’t see a cent. However, if you’ve managed to come up with a product that addresses unmet pain points of a large enough group, a crowdfunding campaign could be the answer to your lack of funds.

That all being said, creating a crowdfunding campaign to get yourself up and running might not be the best option for all business owners. Firstly, you do have to invest a bit of money in order to start the campaign (it’s not much, but if you have no money at all, there’s nothing really to do). Second, you do run the risk of putting lots of time and effort into your marketing campaign, and not seeing a cent.

The biggest danger with using crowdfunding as a way to start your business is that it no longer puts you in control, you become indebted to your funders. Because you give potential funders an initial timeline for your project to be finished before you begin your campaign, people giving you money will expect your finished product on the day you tell them it will be ready.  This leaves no room for flexibility when it comes to meeting all of your proposed goals.

Another issue with crowdfunding is that it only works for businesses with a tangle product. People who will fund your idea are doing it because they want a piece of the pie. Unfortunately, putting money into something they won’t receive to their doorstep when promised is not as enticing.

If you don’t find that you qualify or want to get involved with crowdfunding, never fear. There are lots of ways to get the cash you need to start your business. Taking out a small business loan is an excellent way to have immediate working capital with a rate a payment term that you’ve worked out beforehand. For anything from equipment financing to debt consolidation, a small business loan could be your fastest way to start working on your dream business.

Ready to take your business to the next level? Find out more about the right small business loan for you with Onebox Funding, here.