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Top 10 Financing Options for Small Businesses

small businesses constitute a substantial portion of the U.S. economy.

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It is safe to say, small businesses constitute a substantial portion of the U.S. economy. After all, there are over 29 million of them operating in the United States today, providing employment to almost half of the workforce in the country. With the existence of these many small businesses, there exists an entire industry dedicated to providing them with the resources they need to sustain their business operations. The most valuable of those resources is capital and ORUMFY have become the popular way to acquire that capital.

So let us look at the top 10 financing options for small businesses today:

  1. Traditional Bank Loans: The first and most obvious way to get a business loan is through a bank. Banks usually offer two types of business loans:
    1. Short-term Loans: These loans are provided from three to eighteen months term, and they are fast financing options. Due to their short time period coverage, they can allow a business to get capital quickly but at a higher cost.
    2. Medium -Term Loans: These loans are provided for longer terms usually ranging from one year to three years. Since they have longer period terms, they offer lower inte6rest rates on the loans, but also take longer to finance your business.
  2. Small Business Administration (SBA) Loans: SBA is not a lender itself but actually a branch of the government, which encourages actual lenders to lend more money to small businesses. Because the SBA ensures the lenders of large portions of the loan, lenders can reacquire most of their money from the SBA in case the borrower fails to pay back. The most common SBA loans are:
    1. SBA 7(a) loan program
    2. CDC/504 loan program
    3. Microloan program
  3. Online Lending Platform: The modern way of acquiring a small business loan is to link to link up with people who can help guide you on how to obtain loans, such as Orumfy. You can use their help to evaluate whether you qualify for a small business loan and where the lender can assess the financial health of your business. You can review the terms of the loan transparently and easily. Most small businesses can get their loans approved through online lending platforms.
  4. Equipment-Based Lending: This type of financing option uses your asset as collateral for the loan and assesses the value of the asset in order to provide the loan. This is usually an affordable option for small businesses. Especially for those that do not qualify for conventional or alternative loans, due to a low credit score.
  5. Business Line of Credit: In this type of loan, the lender sets up a capital reserve from which you can draw money whenever you need. The interest is paid only on the money you use from the reserve and it is replenished once the payments are made.
  6. Business Credit Cards: Not only do business credit cards have high credit limits and special preliminary APR discounts, they also help achieve better credit scores for your business every time you make purchases. However, you may not be able to get as much money from business credit cards as you can through small business loans.
  7. Account Receivable Financing: Also called, invoice financing: this is when the lender uses your invoices or payments to be collected from customers as collateral. In this way, you pay the lender and he tracks down the customers for the late payments, reducing your business risk as well.
  8. Merchant Cash Advances: These are loans provided to a business in exchange for a certain percentage of their future credit and debit card sales. This is a viable option for businesses with dismal credit scores and in need of fast cash. However, they also lead to loss of revenue on heavy sales days.
  9. Peer-to-Peer (P2P) Lending: This method eliminates the middleman by allowing one business owner to borrow directly from other business owners. When the loan is needed, all the peers fund the loan together, so that when the borrower pays back the loan and interest, everyone receives their initial investment back.
  10. Startup Loans: These are suitable for getting the business off the ground by using the SBA loans especially microloan programs. These sorts of loans require small collateral. They are specially designed for startups that may have difficulty in getting other types of loans.

Angela Is Working As Content Strategist. He Is A Beauty Blogger, Health Blogger And Public Speaker. His Goal Is To Educate People About Various Health Conditions, Beauty And About Wedding Trends. He Is A Passionate Writer.

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Business

The Value of Entrepreneurial Innovation to Convert Your Business Into a Brand

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A common question that often pops up while starting a new business is:‘How much value will we place in turning this business into a brand?”If you are looking for ways to appeal to and reach out to several customers, then you need to find out the answer for thiscritical question.

The first step towards understanding the value of an entrepreneur to convert your business into a brand, is to understand the importance of branding. This process helps business owners to brand their products or services so that customers will remember them, and be attracted to buy from them again. Businesses have to be careful with this process, as it is often do-or-die in terms of retaining or losing their customers.

Branding takes time to accomplish because it requires a lot thought, effort and time from business owners. There are a few key elements to increase the value of converting your business into a brand. Leading entrepreneur Lewis Schenk has a unique strategy that is unseen in the current industry, which is integrating publication relations into branding and marketing strategies.

Who is Lewis Schenk?

Formerly an elite amateur/aspiring professional golfer, Lewis’s golfing dreams became more difficult when the covid-19 pandemic hit in January. With his plans put on hold without being able to play golf, he quickly pivoted with the help of one of his mentors. “I moved super quick when I knew the pandemic was about to hit. My plans got put on hold but I was fast to adapt” Lewis explains. Having journalism experience with projects he did in college in the USA, Lewis used his network to build his own agency, Boost Media Agency. Since then, he’s served over 150 clients, helping themto get featured in leading digital publications and become the most, known, liked & trusted in their industries.

Integrating PR & Branding

As a business owner, it is your job to ensure that you stand out in the market.You have to ensure that you will not waste precious advertising money in the start-up phases, by buildinga brand that has a high value to your audience – meaning more money and profits in the future. “As business owners, we cannot just jump into this process. It requires a lot of time, effort, guidance and money for this to be successful, and we have to be sure of our strategy before starting this process” Lewis explains. This is where Lewis shines, as he specializes in coming up with unique public relations strategies and ideas to ensure maximum growth for his clients.

Minimizing Risk

A new business is a risky investment. There are many risks involved in setting up and running a new business, and one of these risks is the loss of your customers and losing your market value. A lack of strategy and experience is the new entrepreneur’s biggest downfall, as they spend all their money on pointless hacks and courses. Investing in public relations is the best form of advertising, as for one, its permanent. Rather than spend $200 on advertising that will run out on a week, spending $200 on a published article to a leading news site will yield results long term, as it remains permanently, meaning increased chances of more eyeballs seeing it over time. As a business owner, you must learn all you can about this process or consult with someone like Lewis who does, so that you know the value public relations to convert your business into a brand. With this knowledge and understanding, you can control your strategy, your business and your success.

Strategic Approach

Also,as business owners, we must use a strategic approach in our decision making. This strategic plan will help you to overlook the strengths and weaknesses of your business and how they can be turned around.A strategic approach also involves finding out what the strengths and weaknesses of your business are and implementing the appropriate changes to make your business more profitable. Evaluating your current business model to identify the strengths and weaknesses of it, can greatly improvethe company by making some tweaks and adjustments.

Final Thoughts

Ensuring that we don’t invest money and time in the wrong areas of our business, by shifting the focus towards branding and public relations in marketing strategies, will ensure far greater business success.A business without publicity has no potential for expansion. If you have no courage and time to take these steps for your own business, then you realize the value of hiring a professional entrepreneur such as Lewis Schenk, to convert your business into a brand.

Lewis’ company has become one of fastest growing and most trusted of 2020.If you want to learn more, following him on Instagram, visit his website and visit Boost Media’s Website.

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