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How your Personal Credit Score Impacts your Business Loan

Many people new to the business world, do not know about the impact of the personal credit performance on their business. One of the ways that a business can get affected by the business owner’s credit history, concerns the area of business loans. If you are a business owner with a poor credit performance history, you’re likely to have shut a lot of doors for borrowing funds at attractive interest rates for your business, and the only way to resolve this, might be to work on your credit score.

A good credit score helps you have lots of options in the lending market and lenders are very likely to offer better deals to a person having a good credit score. However, not all types of businesses get impacted this way and not all business loans are out of reach for a bad credit score holding business owner. Read on, and you shall find out more.

It Depends on What Sort of a Company You Own

The more guarantees within your business that you link to your personal finances, the more your credit performance impacts your company’s credit options. In other words, a company with limited liability (LLC) would have virtually no impact from the business owner’s credit history even if it’s owned by an individual.

On the other hand, a small business owned and operated by an individual whose personal finances are heavily involved with the business and where even the business accounts are under a personal guarantee of the individual owner, is going to see a heavy impact of the owner’s credit score.

Most lenders are likely to hence consider the credit history of the business owner in the latter case and most lenders are unlikely to consider the credit history of the business owner in the former case, while making a loan offer and decision for the business.

That said, it is ultimately the lender who decides what factors are considered for processing and approving a loan which is acceptable within the legal limits. Under these legal limits, lenders can hence behave differently from case to case and the above is merely the explanation of a logic and trend that cause an impact in general terms.

 Some Trusted Alternate Business Lenders Accept Bad Credit History

Alternate business lenders – distinct from banks and institution lenders – have the option to lend loans at their discretion within certain federal and state regulations and laws. Some trusted alternate business lenders, including us at Business Advance Funding, accept loan applications bad credit business borrowers.

When a bad credit score holder who owns a business applies for a business loan from us, we perform a more stringent verifications of the operation figures of the business, also being mindful of the sector that the business is operating in. A loan approval is then based more upon revenue and financial health of the company instead of being influenced also by the credit score.

We also provide loans with no hard credit check. When you seek such a loan, we shall skip the hard credit pull which is likely to impact your credit score negatively if you already have a bad credit score and are still applying for a loan. The following section shall explain more about this.

Does a Business Loan Impact Personal Credit Score?

In the most general terms, a credit product that is impacted by your credit score, is also likely to be impacting your credit score. Hence, as mentioned above, when you request for a no hard credit check alternate business loans, the loan neither gets affected by your credit score, nor does it affect your credit score in any way.

That said, the more personal guarantees you have associated with your business account, and the more closely linked your personal finances are with your business’s finances, the more likely it is that most business loans shall impact your credit score.

For absolute clarity about any loan product’s impact on your credit score however, it is important to seek such information from your lender.

What Happens when you have Business Partners?

One of the most common queries we receive related to credit scores, is how the credit score of business partners affect borrowing. Again, the transaction and the offers are all finally at the discretion of the lender. But as a general rule, some lenders would refer to just the majority stakeholder’s credit history, some would refer to the credit history of the owner they are most communicative with and some might pay equal attention to every partner’s credit history. There is no specific rule of thumb here, but many lenders tend to have internal policies and guidelines that cover such situations.

Apply for an Alternate Business Loan that Accepts Bad Credit Scores

We at Business Advance Funding provide business loans irrespective of the personal credit score of the borrower. Yes, a healthy credit score might get you a better offer. Nonetheless, a poor credit score shall not disqualify you from our business loan products. To initiate a query for our alternate business loan, a simple online form shall get you started as we verify the information and get in touch with you to offer deals designed to help your business get the financing it needs.

Festive Season Business Loans for Thanksgiving & Christmas

The festive season bring with itself, a time of joy, celebration and business growth. While there are some sectors that take a hit – for example business hotels – the vast majority of sectors enjoy growth in revenues and profits. This growth can oftentimes be strengthened with added capital. Choosing a business loan for a festive season like thanksgiving, Christmas and more, is hence a frequently employed business tactic that helps businesses make the best of the season’s opportunity.

Festive-Season-Busines

As you read ahead, you shall find information about festive season business loans, how businesses use them and what opportunities the festive seasons bring, for which a festive season business loan can be utilized.

Get Working Capital for the Festive Season

Most businesses choosing an alternate business lender like us at Business Advance Funding, choose festive season business loans to support their added needs for working capital during the coming peak season.

Research data reveals that working capital needs for the festive season can be as high as 16 times the usual for some businesses, such as a banqueting service and a gift delivery service. In such a circumstance, a business can either liquidate assets, keep and unusually high liquidity or choose to borrow funds for supporting the needs. All such options are better than being unable to serve the needs of the customers.

Many businesses hence choose to utilize business loans for addressing their added working capital needs during the festive/peak seasons.

 Be Stocked and Equipped for Thanksgiving & Christmas

Another common requirement that added demand directly leads to, is added needs for inventory and a requirement for added or higher yield equipment.christmas inventory

An example for a business that needs such support, is as simple as a supermarket. People tend to stay home longer during holidays like Christmas. This already increases the demand for everyday items during this season. To add to that, supermarkets are expected to put up Christmas sales and even special items that are exclusive to Christmas. All this together asks for a huge increase in the inventory of the establishment.

Since larger demands being satisfied translates to larger revenues, choosing financing solutions for such a reason, is often seen as a good option.

The Opportunity that the Festive Season Brings

As seen in the two examples above, the festive season bring a huge added revenue opportunity. However, that’s not where it stops. There’s a great opportunity for businesses to:

  • Diversify
  • Capitalize on marketing
  • Capitalize on branding
  • Perform social services
  • Grow a strong community
  • Increase services and/or products offered

While this finite list only presents six ways in which many businesses take advantage of festive seasons, it in no way is complete – there are many more creative and unique opportunities that festive seasons can bring for various businesses of various sectors and industries.

Get reliable Funding through an Online Business Loan

Businesses increasingly are inclining towards alternate business loans, especially the ones available online. The primary reason or this is convenience. While such direct lender loans are convenient, not many lenders out there are legitimate and reliable.

Being a BBB Accredited business in operation since well over a decade, Business Advance Funding maintains amongst the highest approval rate of business loans each year. This is a reflection on how reliable an online business loan option our service remains.

Apply now to have your Festive Season Business Loans Approved Soon

Applying for a festive season business loan from Business Advance Funding is a simple task that starts with getting on call with us at (800) 991-7020 or simply filling in our online loan application that asks for no deposits and features no impact on our credit scores.

We wish you a happy and successful festive season ahead!

5 Ideas to Keep a Healthier Cash Flow during Tough Times

It is natural for businesses to face tough times. There could be internal reasons, amending which could potentially be the best way to overcome such a problem. But there could also be external reasons, over which the business and stakeholders may have little control. What is the most important factor to look at, during such times? If experts are to be relied upon, most of them hint towards efficient management of cash flow.

A healthy cash flow can help a business sail through tough times and even come out stronger than before when the times are good again. Be it seasonality, a local change in trends, new competition, a natural disaster, a pandemic or any other external factor, we share ideas that are tested by time to serve businesses during times of need. Let’s dive into it.

1.      Manage Payables Calculatedly

One of the most utilized ways of increasing liquid capital availability is to delay payments for suppliers. While it works at times, there are aspects that may not allow this to be as simple a solution as it seems.

Being calculative while managing payables is important. If some delays attract interest, it is quite understandable why those delays may be a wrong choice altogether.

Keeping a strong control on payables might need good software being operated by a well-trained team. If an investment needs to be made to put such a system in place, a strategic decision about allocating funds for such an investment may be needed.

2.      Use Debt to your Advantage through Business Forecasting

Forecasting well has a ton of advantages. However, forecasting can only have a limited accuracy as unforeseen eventualities can always affect business in unforeseeable ways. Businesses can use expert understanding of debt to a great advantage when forecasting is done well.

For example, in a situation where September is being difficult, while November is certainly going to be great for business, a debt that can be paid off after November, is likely to be worth the added interest that one may incur. On the other hand, if debt products are added and the future isn’t looking too great, it could lead to a business disaster.

At Business Advance Funding, our experts work with you towards understanding how and when a loan could be helpful. To initiate a query, a simple online loan application is all it takes and we shall get in touch with you, to guide you through the process.

3.      Pre-Payment Incentives – To Customers and From Suppliers

Some businesses choose to offer rewards for early payments. If this is something your business can offer or receive the benefit of from a supplier, it could be useful to consider. Depending on how significant the incentive is and how much of a difference an early payment would make, decisions can be made about taking advantage of such an offer – either by making the offer to customers or receiving the offer from supplies; or perhaps even both.

4.      Incline towards Lean Business Management

Lean is in and there’s nothing much one can say against it. The idea is to store, stock up or own only as much as is needed for everything to run smoothly. Lean Business Management is all about cutting down on processes, inventories, practices, team members, equipment and other factors that add to cost (directly or indirectly) without adding to productivity or output.

Some businesses do go too far and cut costs that lead to a drop in the output quantities or quality, which in turn leads to a drop in customer satisfaction and/or revenues. That’s not what the right Lean Business Management techniques would teach and it’s also not what this article is intended to convey.

5.      Consider Choosing Creditworthy Customers

This is a slightly tough decision for many businesses to make and it is not very easy to judge if such a decision would be feasible at all. But for those businesses where this option is available, it could lead to a huge difference in the cash flow.

Customers with healthier credit history are much likelier to clear dues on time and this can be a very significant contributor towards a healthier cash flow, especially during tougher times. There are businesses that manage to filter their customers on the basis of their creditworthiness, which can be assessed in multiple ways. Maintaining a strong database of valid information about one’s customers and potential customers, plays a key role towards achieving such a proficiency.

Online Business Loans for Start-Ups

Not everyone is blessed with a ton of ancestral money or property to be able to open a business of their own without some financial assistance. Almost every start-up’s business owner relies on additional funding from sources outside their family. However, getting a business loan from a traditional lender for an idea that is fairly new especially if it hasn’t been implemented yet is quite difficult. Lenders like banks see larger firms as being of a lesser threat or risk when it comes to repayment which is the reason why most owners of small or medium-sized businesses may find it hard to get approved for additional monetary assistance with them.

However, that doesn’t make it impossible for a start-up to get funded by a third party. The process of online lending for businesses majorly supports SMEs and start-ups by providing them with the financial assistance that they need. As a matter of fact, most of these lenders offer a limited amount of money compared to a bank, which in itself means that they are meant to cater to smaller and newer businesses. Your business idea will not go in vain now, as online lending is meant just for you if you’re a part of the start-up business owner clan.

However, before diving into something as big as a financial decision for your start-up, you should know how online business loans are beneficial and how they aren’t.

Let’s first look at why online business loans can be beneficial compared to loans from other lenders:

Bad Credit is accepted: One of the biggest advantages that one can get with an online business loan is that they do not have to be concerned about their credit rating. Whether they have bad credit, good credit, or no credit history at all, they still have a higher chance of getting funded with online business loan lenders over traditional lenders.

No collateral is required: Unlike the need to offer collaterals to traditional lenders when one wants a loan from them (especially if they have a poor credit rating), there is no such requirement with online business lenders. When we say funding is easy, it certainly and undoubtedly is! The requirement for no security pledging at all is something that a lot of borrowers appreciate since they get a good chance to get funded. Also, it helps them avoid any stress related to losing something valuable thus lowering the risk factor that’s already involved in starting a whole new business.

Funding is quick: Apart from the fact that it is easy, getting funded with online business loan lenders is also a speedy process. Because the process takes place online thus avoiding the involvement of commute and because one can avoid paperwork and other lengthy, time taking procedures such as credit checks and collateral offerings, getting cash advances online is quite a fast procedure.

Some say that business loans from online lenders aren’t preferred. But why is that?

Possibly the only drawback that one can name when it comes to online business loans is their interest rates. The APRs of these loans are undeniably higher than those offered by banks. However, that’s because of the various advantages that are offered by them and this factor gives the lender a sense of security of being repaid an amount at least close enough to what was lent in case things go south and the borrower is unable to repay.

Business loans online can be really beneficial to start-up owners. All one has to do is pick the right lender and know which one is legitimate, while also being certain about repaying.

3 Working Ways to Fund Your New Business Idea

All big and unique businesses once started off as being just an idea. It takes a combination of many inputs and efforts to turn a business idea into a reality and then to take that reality to anything near it’s true potential. One of the critical inputs that almost all business ideas end up requiring at each step of growth, is funding.

There are numerous ways in which a business can be funded at various stages of its growth and development. In today’s market some ways are more commonly used for reasons of practicality, than others and with regards specifically to funding new business ideas, we share 3 funding systems that the market tends to be leaning towards most often. So read on to know what’s working well and why, to see if it could work for you too!

1. Bootstrapping followed by Alternate Funding

This is the most common combination of funding that is seen in new small businesses today when industry is kept as no bar in the measurements.

Bootstrapping is when an individual or a team invest a part of their personal funds to start a new business. Alternate funding is non-bank/non-institutional funding for businesses provided by alternate direct lenders for businesses. These tend to be higher in risk and have simpler application processes and hence are loans on the higher spectrum of cost. Since most alternate funding options require businesses to be operating with revenue since at least 6 months, bootstrapping is the most common initial funding source of new businesses that tend to use alternative funding as a boost once the business gets on to a slightly stable track of operations and cash flow.

The main advantage is that it’s an option open for almost all new business ideas with a fair strength and potential.

A renowned service that for alternate funding catering to virtually all industries in the market, is BusinessAdvanceFunding and if you’re looking for a short and simple online application procedure that is followed by a swift response, we welcome you to submit your business details using our application form.

2. SBA Loans and Federal Grants

The federal and state government do encourage startups and small businesses with support that comes in various forms. These can vary vastly from industry to industry and time to time. The SBIR, STTR and other such programs including SBA loans are all covered in this blanket of funding options.

The main advantages of these are that they are fairly reliable and come with attractive deals, well designed to suit the needs of new and upcoming small businesses and projects.

The main limitation is that such grants and loans may not be available to everyone and factors like personal credit history of the applicant(s), their financial health, location and industry/sector are crucial factors that may play a decisive role in approval of grants and loans.

3. Crowd Funding

Crowd funding can serve as a great solution for business ideas that are suitable for it and when the people behind the crowd funding campaign are geared up to get it right either in the first time or in a two or three tries without giving up.

A crowd funding campaign is an organized attempt where an individual or a team/organization seek to raise funds from a crowd that may be familiar with them and would ideally be interested in donating money for the cause that is presented to them by the campaigner(s). It is typically an option that works well for business ideas that may be helpful for human development in some way or contribute towards society, culture or other such emotionally involving matters. Good network, reach and presentation skills can make a crowd funding campaign do well.

The biggest advantage of crowd funding is that people choose to donate for the cause and hence monetary returns are not expected by people contributing towards such a campaign. Usually some valuable rewards relevant to the business idea being discussed are what the campaigners promise as a return for donating to the campaign.

The main limitations of crowd funding are that it isn’t exactly a reliable and predictable source of funding and that many factors that may not exactly represent the potential of the business idea, may affect the probability of the funding significantly.

Financing to Restart Your Business and Bring it Back on Track

Have the recent times shaken your business while it was going great in the past? Many businesses go through such time no matter how strong their basics and foundation may be. But what gets them back when the season looks good again? It’s a combination of hard work, smart work, good marketing, careful strategizing and the support of required funds to put it all together and make it happen. Oftentimes in today’s market, business financing provides those funds when the future does indeed seem bright to everyone. Financing, in such situations, acts like the spark to the fuel that’s waiting to ignite.

When to Choose Financing for Restarting a Business?

Businesses look at restarting for multiple reasons. These could be seasonality, a major downfall after which growth is expected or even a complete shake-up in the company that in the past lead to a fall or in the future is expected to lead to a rise back up. Of course, there are more reasons out there but not can be covered in a nutshell.

Ups and downs are normal in business but there come times when the downfall hits too hard. The reason for this could be internal or external. Here are some examples of situations in which choosing to secure financing for restarting a business is likely to be beneficial:

  • When the decline in business was due to an external factor that is now negating
  • When it was a low point in the season while the good season is right ahead
  • When a good business was shut due to some factors which are no longer a hindrance and the market seems ready to welcome the business back
  • Change of ownership/management

While this list isn’t exhaustive, it’s intended to give a fair idea as to what sort of situations tend to favor added investment in the form of financing.

What to Focus On

When restarting a business, and specifically when also using business financing for that, the stakeholders need to be mindful of things that add up to a strong likelihood of growth and prosperity – after all the financed funds have to be returned in time with added interest. Here are 4 points that tend to be at the top of the list for successful business revival projects/plans.

Hard Work & Smart Work

Most of the business world gets nowhere good without the combination of these two. While the labels speak for themselves and are self-explanatory enough, the feature of the mention here is essential as there can be no room for these key essentials to be overlooked in a business in a situation when the only option is to grow and succeed.

Marketing & Advertising

Now that the business is getting set for a resumption, the customers need to know this. Also, perhaps there are many new potential customers out there now. Getting the right word out to the right market enough number of times for enough people to act on it, is an absolute must. When restarting a business, consider targeted and lower cost-per-engagement and cost-per-conversion modes of marketing. Trending modes at the time of this article’s writing are social media ads and influencer marketing and these work great for many B2C businesses. B2B businesses tend to benefit from social media and search engine ads more than many other forms of advertising.

Renewed Strategy

Everything is changing in the business environment and the old company values, goals, objectives, management techniques and hierarchy might need careful scrutiny and perhaps even a complete overhaul to suit tomorrow.

Financial Situation

Cash rotation, liquidity, and all the other financial basics of a business need to always be closely watched and that probably should never be overlooked. However when using financing options, avoiding a loan bigger than fixed assets can repay in case things don’t work well, is a financial mistake one absolutely needs to avoid making.

Financing the Revival of Your Business

When restarting a business, conventional loans are not much of a choice because the immediate past of the business must have records that may not help with such a loan. However, there is no harm in giving a lower interest conventional loan like an SBA loan or a bank loan.

The other option is an alternate business loan. At Business Advance Funding, we offer flexible options for financing businesses across a wide range of industries and you’re welcome to use our application to get in touch with us for a competitive deal for financing a revival plan of your business.

How Boutique Hotels, Inns and Motels are using Loans Well

At the time of the writing of this article, we are seeing business world-over, face situations that had simply not been foreseen. A market of the sort that is not easy to understand or predict to any reasonable amount of accuracy, today we are in a time that every decision we make is going to impact our tomorrow at amplified levels like never before. A wrong step can lead to a business not lasting too long while a right step can lead to a business being amongst the few surviving business with the whole market to serve in the near future. It’s quite safe to say that surviving businesses will boom for a while once the turmoil comes to its end.

 Looking at the hospitality industry – and specifically the smaller boutique hotels, inns, and motels – it is easy to understand that business has reduced significantly while costs of running operations have gone up with the added needs of distancing, PPE, sanitization and higher standards of food hygiene that are critical to these times. However, not all business setups in the industry are losing ground. Some are sailing through and holding tight for the market to get back into some level of stability and by the time that does happen, is it natural that these businesses would see a sudden boom like never before? While no one can give a definite answer to that, we believe it’s likely to be true.
 patterns lead us us to noticing that small

Our records of transactions and understanding of the business lending trends and patterns lead us to noticing that small hotels are taking up loans more frequently now, and knowing this, we dove deeper to learn and understand why it could be a good decision. Being a lending company, we believe our business thrives in the long term only when our clients do too. This is why we here are writing about what we observed and believe are likely to be good ways in which boutique hotels, motels and inns can benefit from a business loan.

1. Marketing to Retain a Name

This is probably the most common investment smaller hotels are currently making. By trend, 50-70% of a small hotel’s revenue comes from repeat business. With that in mind, it’s easy to see why remaining present in the market is important even if the presence may not lead to immediate conversions. It’s simply not worth letting your business’ name being wiped out from everyone’s mind if they truly matter. That said, marketing does cost.

Keeping costs low is a great idea but keeping that liquidity is important. Loans are being used by businesses where the current liquid capital is dedicated in sustaining ongoing operations while a little boost in cash can help in keeping the market presence intact. In a bid to keep costs low, many businesses are turning to targeted marketing versus print and televised ads and for those new to it, now could be the right time to explore it.

2. Employing Yield/Revenue Management Consultants

One big advantage of scale that larger hotels and chain hotels have on their side, is the ability to afford dedicated revenue management experts. In smaller, independent units, this task is left to the business owner, reservations manager or a similar management position or at times completely overlooked. However, recent years have proven that strong revenue management can get returns on investment similar to almost no other investment that a hotel can make and this tends to encompass benefits across all seasons and during tough as well as lucrative times.

The solution for getting access to the right yield/revenue management expertise available for smaller hotels, is to employ consultants. Instead of having a full-time revenue management team, having consultants gets you the same level of expertise while keeping your costs as low as the hours of consultancy that you may actually need.

3. Investing to Retain the Most Valuable Employees

Human Resource is the single most valuable resource in business. Retaining some of your most valuable team members can be an invaluable feat and if all it takes is a few months of pay (perhaps at a lowered scale), it’s probably a wise choice and a loan can be helpful to arrange for that.

If the cost of hiring a fresh team member and investing in getting them trained strong enough to really take over the responsibilities of the previous team member seems to outweigh the cost of retaining, you know what the right choice is.

4. Using this Time for Renovation

It’s never easy to keep up with current times and hotels need renovation every few years. Here is a time that’s bound to be dull, so why not make use of it? A lot of borrowers are utilizing this time to revamp their products and apart from being a good use of time and money, it would give great content to showcase in the marketing campaigns that you would need to get back on track when the season is back!

5. Adding Services for the Current Market

How would you like to have some immediate added revenue? If you haven’t given it a thought yet, you might be interested in knowing what hotels of different kinds might be able to offer in terms of services that can attract business in the current market scenario. Here are some quick examples:

  • Food delivery
  • Spa therapies to promote wellness and post-disease recover
  • Fitness activities in the garden or wellness center
  • Any special recreation that can accommodate social distancing
  • Rooms for quarantine purposes

Getting a Business Loan for Hotels

There are some options available out there – SBA loans and Bank loans are the most preferred but it may not be easily available to many borrowers in the current market scenario.

If you’re looking for an alternate business loan, you’re welcome to use our application to get in touch with us and we shall offer you a competitive deal and be able to serve you well, even during this tougher times.

Funding For Contractors With Construction Business Loans

Lately there has been a rise in the construction needs owing to the rise in the number of housing projects, new construction and housing renovations. But construction business is season based, as on certain seasons like the rainy season, on which the business might experience depressions in income. If you are too in the construction business you need to take care that your business has a smooth capital flow even during these seasons. Because no matter what your income is you will have to pay up some basic costs like maintain the supplies, labour payment and such. Moreover you would need money if you want to take in newer projects. So have you ever given it a thought as to what the best way to arrange the much needed business construction loan?

Construction Business Loans

Well, banks seem to be one of the first sought after option but many of them would require extensive documentation and credit ratings, with a very lengthy approval procedure. After so many of hurdles even if you manage to get one, by the time the mount credits to your account, the needs will go away. Hence we at BusinessAdvanceFunding help you to get your required construction loan as fast as possible cutting the red tapism of the banks. We provide online business loans up to $500,000 that are simple and fast to be applied.

How to make best Utilization of Small Business Construction Loans

Getting small business construction loans is quite essential if a business owner wants to run a successful and stable business. Even big business who have quite significant cash reserves, find business construction loan highly helpful. Following are the ways through which you can make the best possible use of the Small Business Construction Loans from BusinessAdvanceFunding.

  • Employing a bigger workforce
  • Acquisition of equipment both new and used.
  • Target higher value contracts
  • Paying or consolidating higher amount debts.

The Best Way of Acquiring Business Construction Loan

So as of now, it is quite clear that small business loans for construction company can make them face the face the ups and down of the business quite effortlessly. Acquiring such small business loans from BusinessAdvanceFunding is not a very herculean task. We have a very easy approval procedure through online approval that can be accesses round the clock. However you need to qualify the following basic criteria which are the following:-

  • 6 months old business
  • Gross sales of at least $5,000/month
  • No open bankruptcies

With our construction business loans on your aid you can maximize your business endeavours. So take the initiative and apply right now and pave the path of your success.

What Are The Most Profitable Small Business in 2020?

There are really some people who are born to be entrepreneurs. Their zest for successes working independently is the quality that differentiates them from others. But for many would-be entrepreneurs, the crucial choice lies in with which business he should start with? So in this article, we will be discussing the newest options for most profitable businesses that are trending in 2020.

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Moveable Business Ideas – As we have grown accustomed to getting everything instantly, a business that travels to their customers for providing their services is the flavor of the season. Following are the business ideas that are taking the advantage of the emerging trend

  • Doorstep Auto Repair and Car wash service.
  • Food Trucks that are mobile.
  • Electronics Repair at customer’s place.
  • In Home Fitness trainers.

Child Care Services – According to the reports published by PEW, the millennial generation will outnumber the existing generations by 2020.  So for the want to be entrepreneurs, business options that provide kid’s services can provide the best business opportunities. Starting Child day care crèches, pre and postnatal care services, child enrichment activities and such other things can be a scoring small business idea that is waiting to be capitalized on.

Business from the shared economy – With Uber and Airbnb in trend, there are huge business options for those who are planning to enter the world of entrepreneurship. You can start a sharing service of fashion accessions, a rental service for home improvement goods and if you got some extra bedroom you can go for sharing business.

Online Teaching Services – If you are a subject matter expert in some subject then you can utilize your knowledge in teaching people who are interested in knowing the subject. All that you will need will be a platform, some content and a target audience. Not much investment required. There are many sectors where your service will prove valuable, core academics, business and marketing and language classes. Let’s say you have expertise as a personal therapist, or you are a long time yoga enthusiast, you can start a lifestyle channel all by yourself and earn money.

entrepreneur job

Gourmet Food Joints – Another business that is very much in fashion is going for a business that offers gourmet food joints. Most of such impressive joints that offers scrumptious dishes or refreshing espressos and cappuccinos are hugely popular amongst the youngsters. You can think a step further and set up the office in a place that is convenient for cycling and foot traffic or arrange your place with a very informal setting with outdoor patio. Believe me, the aroma of freshly brewed coffee with some fresh bakes are bound to make your small business an instant success.

On an EndNote 

Finally, as you are determined to start your own business, you probably are very sure of two things: – you want to be your own boss and you want to make a lot of profit. While the fortune 500 market and the stocks are dominated by industry giants, you can make your entry in the market with the above mentioned most profitable small business options that are trending in 2018. In respect to the arrangement of finances, you can establish the following eligibilities, BusinessAdvanceFunding will easily approve an instant $500,000 loan very easily to you. The eligibilities are:-

  • 6 months old business
  • Gross sales of at least $5,000/month
  • No open bankruptcies

Reap the advantages of the business trends that are prevalent in the present economic scenario. Together with financial assistance from BusinessAdvanceFunding, the ideas of most profitable business will work wonder for you in the entrepreneurial world.

Restaurant Business Loans: Best funding options for your small business

Looking out for fast and easy financing options for restaurants? There are different types of restaurant business loans available for restaurant owners. It cannot be denied that food and restaurant enterprises are highly competitive and expensive to run. Prospective restaurant owners, like any other small business owners, find it challenging to deal with the enormous start up costs. Similarly, owners or people operating established restaurants usually lack the reserve cash or business funds needed to cover expansion costs, add new technology, finance repairs, buy inventory, promotional budget, renovate their operations, etc. However, lack of funding for restaurants to meet urgent financial needs should not kill your dreams of becoming an entrepreneur or stop you from taking your established small restaurant business to next level. Address your need for quick capital for restaurants by exploring best funding options for business. Numerous restaurant owners rely on restaurant loans to meet their respective business financing needs. You can consider one for your small business too.

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Top 5 reasons why a restaurant business needs financing

Success of a restaurant business depends on many factors such as offering tasty and quality food quickly; providing clean and pleasant dining environment; meeting evolving expectations of customers through friendly services, etc. However, it also needs restaurant business financing along with quality tasty food and good customer services. Many leading quick service and fast casual restaurant owners understand the importance of having a strong financial plan for restaurant business growth and hence consider short term small business loans for restaurants.

Restaurant owners cannot wait long to get financing because restaurant industry is incredibly competitive and maintaining it smoothly is costly. The needs of restaurant start-ups and established ones vary from one segment to another. However, many small business owners commonly turn to small business loan lenders for restaurant financing in the following situations:

Sudden repairs– Commercial oven stops working, delivery truck breaks down suddenly, walk-in refrigerator goes bad, etc. are common mishaps in restaurants. One such repair may bring operations to halt and thus leading to loss of revenues. Besides, in case of no cash reserves, external restaurant business funding is required to cover the repair costs.

Adopt new technology– Staying up-to-date with the emerging trends in the restaurant industry is crucial for increased customer satisfaction, convenience and customer loyalty You may need a new point-of-sale (POS) system to handle transaction quickly and efficiently or add tabletop tablets that make it easy for customers to place the order directly to the commercial kitchen. Investing in such systems may prompt customers to order more and thus increase the sales. Equipment loans for restaurants or business loans for restaurants can be of great help in such a situation.

Buy inventory or pay for utilities– Keeping licenses current; paying for recurring bills such as lighting and heating bills; stocking food supplies; investing in serving utensils, flatware, dishes, linens, furniture; and other essentials that the customers need the most are important and may need inventory financing for restaurants or working capital loan quickly.

Expand or renovate- If your restaurant business is growing and you want to expand your existing space then small business expansion loan for restaurants can help you cover costs of labor, materials, construction services, etc. Perhaps, your restaurant demands adding an outdoor patio; replacing the floor; redecorating the interior; outfitting proper gas, water and electrical lines; or a new coat of paint for enhanced customer experience. This is when renovation financing for restaurants, also known as remodel loans for restaurants, can help you fund the refurbishing costs.

Marketing- Having a good restaurant is not enough. Resourceful ways to promote your small business via billboards, social platforms, direct mail, local newspapers, etc. can fuel the business growth. Effective mode of promotion needs some investment and not all owners of restaurants are equipped with promotional budget. Restaurant financing for business promotion can help you fund your marketing campaign easily.

What are the best restaurant loan options to consider?

Opening a restaurant in today’s shaky economy is not easy and covering the operating costs; managing low cash flow; and dealing with business slow seasons of established restaurants is also equally difficult. Having said that, securing bank loans for small business or financing for restaurants from conventional lenders is even tougher. Considerable collateral to guarantee the small business loan; perfect score; extensive business plan; and a verified restaurant experience can make funds for restaurants easy to get. The saddest part is many restaurant owners do not fit into such a restrictive frame and hence do not qualify for restaurant loans from traditional small business lenders.  However, with many lending companies offering small business funding at lower interest rates or on favorable and flexible conditions,  there are many popular loan options for business available today than ever. Therefore, finding the right restaurant financing solution that meets the credit needs of your business matters the most.

The most popular types of loans for restaurants are:

  1. SBA Loans (Small Business Administration Loans)
  2. Restaurant Factoring
  3. Restaurant Equipment Loans
  4. Merchant and Business Cash Advances
  5. Alternative Business Loans
  6. Restaurant Specific Loans
  7. Unsecured Business Loans
  8. Franchised restaurant loans

SBA Loans (Small Business Administration Loans)
SBA loan get its name from Small Business Administration, a federal agency that is committed to help entrepreneurs or business owners grab business growth opportunities. SBA guaranteed restaurant loans are a great option to get improved access to restaurant financing at comparatively low rates and flexible terms for startups, established business and also for buying existing business. Both full size restaurants and limited-service restaurants can take advantage of SBA backed loans or SBA loan guarantee. However, many restaurateurs receiving these small loans for dining establishments find it difficult to qualify due to strict loan requirements.

Even, if you are approved for SBA loans for restaurants, a personal guarantee and collateral are mandatory. If you fail to pay back your small business loan for restaurants on time, your assets will be at risk. Moreover, it makes even tougher to obtain food and restaurant business financing in the future.

Restaurant Factoring
Also popularly known as account receivable factoring, restaurant invoice factoring is a financing method that typically involves selling your account receivables at a discount in exchange of business capital. In this method, restaurant stock or inventory acts as collateral to secure the loan. Thus, restaurant factoring solution acts as a cash- management tool that helps to maintain a steady cash flow. Invoice financing holds good for restaurants with catering accounts with long receivables. Although factoring loan comes with high interest rates, it is the most viable short term business funding option for restaurants to raise capital quickly. It works simple. You sell a product or service and generate an invoice. The factor (funding source) purchases the collecting rights on that invoice and offers restaurant loan (equivalent to invoice’s face value less a discount) in exchange. With the factor taking into account the customer’s capability to pay rather than your (business owner) financial position, factoring works in the best interest of restaurant business owners.

Restaurant Equipment Loans
More than an influx of business working capital, your small restaurant possibly needs professional and efficient equipments such as state-of-the-art pizza ovens, sinks, refrigerators, 12 burner commercial cook top, etc. With restaurant equipment being costly, can consume a big chunk of your business cash and hence the need for equipment loans. They are a kind of restaurant business loans, typically designed for covering the price of your restaurant business’s equipment purchases and related taxes. Understand that restaurant equipment loans do not cover costs of handling, delivery, installation, etc. Business equipment financing for restaurants is a short term loan that is offered at average interest rates that are fixed. Besides, the credit history of your business determines your eligibility for 100% financing. Meaning, a restaurant business with bad credit may qualify for only 80% to 90% funding.

Alternatively, you can consider leasing that is a smart way to finance your necessary business equipment. in addition, equipment leasing has tax benefits too. However, qualifying and getting approved for restaurant equipment leasing requires a personal guarantee. Although a good option for funding restaurant equipment, this option has some risk attached.

Merchant and Business Cash Advances
A business advance is technically not a business loan as per MCA providers; it is simply a merchant financing that is offered chiefly against a percentage of credit card and/or debit card sales receivables of your restaurant. Business cash advance or merchant cash advance for restaurants is a perfect solution for small business owners who do not want to pay in fixed monthly payments and instead desire a re-payment variation based on business sales. Besides, merchant cash advance program is an unsecure credit line without any requirement for personal guarantee and personal credit score. Thus, restaurant business cash advance is ideal for food and restaurant establishments in need of faster funding.

Alternative Business Loans
These are usually small business loans from alternative lenders and are the best option for restaurant financing that helps dining business borrowers to expand, upgrade and market their growing establishment easily. With this source of alternative business funding, there is no risk attached to your personal assets because it offers collateral-free cash for restaurants. Besides, requirements for alternative business loans are simple and easy to meet. Although interest rates are high, it gives a wider financial flexibility apart from fast access to restaurant funding within 24 hours or by next business day. Thus, alternative restaurant lending and fundraising sources for restaurants are designed especially for those who find it challenging to obtain traditional small business funding. With a minimum qualification such as a 6 months old business and $5,000 monthly sales, restaurant owner can receive business capital loan up to $500,000. Loan approval rate is higher with alternative business lenders than with conventional lenders.

Unsecured Business Loans
Many restaurateurs ask ‘Can I get a small business loan without collateral?’ Of course, YES! In contrast to traditional bank loans, unsecured small business loans are more flexible and one of the best collateral-free business loan options. The main advantage of considering unsecured loans or no collateral loans for your restaurant business is that it offers fast and unsecured funding without putting your personal assets at risk. Besides, business owners with poor or bad credit history can also apply for small business financing.

Restaurant Specific Loans
These are the loans usually offered by banks and other traditional institutions. Unlike restaurant equipment loans and inventory financing that are little restrictive as far as the usage of funds is concerned, restaurant specific loans are not bound to a specific need. They are general business loans specifically designed for restaurants and can be used for any financial needs- renovation, restocking inventory, expansion, new equipment, old equipment repairs, furnishings, etc. The interest rate and the loan term of the restaurant specific loan are determined based on the size of the loan.

Franchised restaurant loans
These business loans are meant only for franchised restaurants. A huge percentage of restaurant franchisors are now extending innovative business funding programs for owners of start-up franchise with expansion plans. Loan offers, terms and conditions and requirements vary with brand name. While few franchisors are offering even zero-percent restaurant financing for a limited-term, rest others are extending franchised restaurant loans at lower license fees and decreased royalties.

Whether you need business financing for casual dining (family style or sit-down restaurants), fine dining (FSR), cafes or bistros (Informal restaurants), fast food chains (QSR), pizzerias or bakeries, there are specific restaurant loans or financing options available for each segment of restaurants.  Moreover, many small business lenders are ready to help you get the required funding for starting up a restaurant or for running your established restaurant business more efficiently. So why wait, choose your restaurant lender and apply for right restaurant business financing that meets your business goals.