• 10Mar
    Happy African American businessman offering a handshake.

    When you are getting ready to start a business, you have to think about how you will obtain financing. In fact, this is one of the most important parts of your decision and it can be one of the most challenging. There are several ways to obtain financing for a new business or to obtain financing for an existing business. However, you have to think about these things in advance. There are various things to consider when you are thinking about business finance. What type of financing is appropriate for your particular business? Are you aware of crowdfunding? Are angel investors available to you? If so, what is going to be your approach? You have to be well prepared and armed with a good business plan to consider these options.

    The Options

    There are some financing options that require the business owner to relinquish a percentage of full ownership to the investor or funder. Some investors have strict guidelines and limitations before they will consider a loan or investment in someone’s business. There are also some financial investors that will require the borrower to adhere to certain rules and if broken, they will apply substantial consequences financially.

    The Wrong One

    If you have been searching for that business loan and it seems to be elusive to you, then you are not alone. Have you had a rejection when you tried to apply for a business loan? You are still not the only business that has ever been declined. It happens all of the time. Why? Many business owners are not prepared and sometimes, it is because they approach the wrong financial investor or lender. Most banks take a conservative approach to lending and these come with a wide range of requirements, which tend to be stringent and sometimes unnecessary to the normal person. If you are choosing to deal with a bank, you have to provide up to three years of financial statements, collateral, cosigner and the demonstration of business profitability.

    Not All Equal

    Not every business owner is able to meet the stringent requirements and this is especially true for most small businesses since they put so much of their savings into the business. Many of them have little or no collateral to put up. Under such conditions, how does a small business owner able to see financial growth? Let’s take a look at the most common financial issue.

    Outstanding Payment

    For most companies, a payment term has to be offered to the clients, but some clients do not honor those terms. This is one condition that indicates business owners have to wait for up to three months after delivering the product to be paid. This is a problem for many small business owners because there are little resources left to pay expenses while waiting for almost two months to get paid for an invoice. It is an easy thing to overextend yourself financially when you have clients not paying their invoice. In the same way that the client forfeits the agreement to pay, it is the same way that small business owners operate with vendors and suppliers – waiting longer to pay. This is the not the ideal business practice.

    The Bottom Line

    No matter what the issue, small business owners need money to survive the business. You have to be creative when it comes to funding. The first option is asking family members and friends to help financially. When that fails or is exhausted, turn to other means of financing.

  • 03Mar
    business finance (1)

    Most business owners don’t realize the importance of having a pitch and rehearsing it when they are seeking funding for the company. You don’t want to approach an investor and make it seem as if you don’t know what you are talking about. Once you have rehearsed that pitch, it will be like a breeze when delivering it to an investor. It won’t seem as if you are rambling on and catching for straws. You will be taken seriously.

    The Delivery

    It is frustrating for an investor to hear a business owner ask for ten minutes to deliver a pitch and only to find them going on and on for half an hour. You will lose the interest of any investor by doing so. You should have your business plan in hand, just in case the investor asks for it and more importantly, so that they can read it at their leisure once you have completed your pitch. You want to make sure that a powerful pitch is delivered and at the end, the investor should be asking for more information from you in the form of a business plan. In preparing your pitch for business funding, there are some essentials to consider. Let’s take a closer look.

    Your Story Told

    Your pitch should always tell a story and the story must be compelling. That means you will have to engage the investor as soon as you start speaking. Don’t wait until you are in the middle of your story to come to life. Be animated, passionate and excited about the prospect of having a business and receiving funding to make it more successful. With your story, you should be able to address some problems and the solution; altogether.

    The Solution

    You should know the unique value of your product and discuss the solution or solutions it will provide. This segment of your pitch should be brief, simple and concise so that the investor will be able to provide an explanation to others. Stay away from industry buzzwords. Use them only if you know that the investor has some familiarity with your industry.

    Your Credibility

    Build your credibility in the early stages of your presentation. Talk about your successes in business, not necessarily your immediate business venture. You now have the chance to toot your own horn. Try to give a good impression to the investors of your accomplishments so far. This could include strategic business moves, secured contracts, sales figures and various product launches, if any.

    Target Market

    Not all consumers will buy your product or service. You must be marketing to a specific audience. These are your target audience and they usually exist in a specific target market. You should know what that is. Give a realistic answer when asked about your target audience. A target audience should be taken from specific demographics, age group, buying tendencies and location.

    The Competition

    One significant aspect of your pitch is to know your competition. Who are they? What sets you apart from the competition? How is your product and service different? How much more experienced are you in that field or industry? Your pitch should answer all of those questions.

  • 26Feb
    financial clean

    When it comes to starting a small business and to aim for its success, you only need a unique idea. After the idea comes the financial affair. You must have some kind of capital to start with. If you don’t have the cash up front, you can acquire it from various financial sources. Your business can become a reality, if you have a plan and if you kept your financial house in order before the business idea came. Yes, before you open shop, it is time to review and assess your personal finances because if you don’t know how to manage your personal finances, how are you going to manage your business finances? Let’s take a look at the next step.

    Startup Money

    Once your personal finances are in order, you can try to get a business startup loan because your credit should be in good shape. Lenders will now look at you as being financially safe. Remember, no lender wants to embrace any type of business risk. So, lenders will take a look first at your personal credit history. This provides the lender with information about your repayment history, debt balance and shows the lender how financially responsible you are. With a solid credit rating, you will be able to show the lender that you take your finances seriously and you will repay the loan, whether your business goes through a rough time or not.

    Vendor Trust

    Having a good personal finance record will also impress vendors and build a trustworthy relationship between your business and the vendors. With no track record when starting a business, you have to rely on your reputation and good name in order to reassure vendors of your sincerity, reliability and trust. With a not-so-good personal financial history, vendors will be more cautious in doing business with you.

    Initial Survival State

    For a new business startup, it may be a several months to years before you see a profit. If you can survive the initial stage of starting a business by living conservatively on a budget, you could do well in the future. Create a realistic business and financial plan to get you through the initial stage. Try to reduce your personal debt as much as possible so you won’t be overwhelmed by expenses and debt.

    Family Relationships

    Be sure to handle any tension in the family as it relates to finances. You and your spouse have to come to an agreement about your standard of living. Once you are on the same page financially, it will make it easier because you will now have the support needed to progress. Tensions caused by financial trouble can impede your business.

    The Immediate Solution

    Create a finance checklist of things that you will do to clean your financial house. These include pulling your credit report to view your credit history. In so doing, you can fix any mistakes that you might see. You should also have an emergency fund for paying living expenses up to three months. Create a budget in your household and stick to it. However, be sure to discuss this with your entire family first.


  • 22Feb
    business advicee

    As a new entrepreneur in this era there are a lot of resources out there that can be taken advantage of and you do not have to do it alone. Some of the most successful businessmen and women can attribute their success to solid advice they got from mentors, friends, and family. The ability to take advice and know when it is either good or warranted is a crucial skill to have.

    It allows them to be objective and to learn what advice that should be taken and other things that should be ignored. It is a way to think on your own and come to the hard decisions through logic and feeling out any situation.

    A problem business owners face is that they know what they are doing in their business because it is probably something that the individual is talented in. Experienced people take their talents and then apply that to the business that they want to run. The problem is that the business aspect gets put to the wayside when it is one of the most important things to focus on.

    There are precautions and things to keep in mind when starting a business and here is some advice on what to do and what to avoid.


    Helpful Tips

    The first thing is to be humble and realize that you are not going to know everything when starting a business and it’s best to consult other experts in your field. There are many ways to do something and it’s not about finding what works best for others but what works best for you.

    A major facet of running a business is managing cash flow. If there is no money in the bank then the operations will cease to exist. It is imperative that there is a steady flow of money coming in with at least some reserves so that as a business owner you will not be constantly under the gun. It seems basic but it is a fundamental that many newcomers completely forget, thinking that the money will come to them from a slew of product ideas. It is better to focus all of the company’s energy on one product that is going to sell then ten other ones that are cool and will make money in the future, but it’s about the now.

    Also something to keep in mind is dealing with employees. This is a business and should be treated as such. Bad employees cannot be ridden of fast enough. It is not a charity case. As a new entrepreneur you want to surround yourself with people who are going to get the job done and do it right.

    As a business leader you are at the top of the chain commanding others below you but also listening to their input as well. This can then be transferred to customers who are the whole reason the company exists in the first place. Listen to your customers early on and the repeat business will propel your new venture forward.


  • 10Feb
    Personal Loan

    A financial emergency is one such part of our life that can arise anytime, anywhere. While credit cards turn out to be of utmost help during such emergencies, yet most of us feel ashamed and even avoid using our credit cards.


    Read “To Buy or Not to Buy: Why We Overshop and How to Stop.”


    One of the most common barriers between you and your dreams is the lack of financial supports that help you overcome and deal with the financial crunch you may have to face during an emergency.


    However, thanks to a new form of debt (personal loan), which has within the past few years grounded itself as the best solution for those who need emergency financial backing. This new form of funding has not only helped the startups and the needy, but has also turned out to be a boon for those who may have to feel the need of instant cash when trapped in any emergency.


    Today, 27.34 million consumers in America are opting for personal loans more than any other type of funding options. And within the last several years, a total of 18% 27.34 % rise has been noticed.


    Now let’s find  out why this increasing trend is gaining momentum each passing day:


    1) Most of the people who are opting for personal loans often don’t hold any personal savings of their own. In times of emergency, they have no funds backing them as such.

    “As soon as one of those life events comes up, whether it’s a medical emergency, fixing a car, getting a new car, or fixing up your house, all of a sudden that can be a trigger that puts somebody over the edge,” said Todd Albery, the chief executive of Quizzle, a Bankrate company that offers services, including free credit reports.

    2)  Earlier, personal loans were considered to be something that involved too much effort and time. However, ever since the process of  getting personal loan has been made hassle-free and online, increasing number of borrowers are now getting increasingly inclined toward getting it.

    3) Another behavioral aspect that was discovered is the fact that most consumers choose to make one payment each month. They are also further tempted by the idea of not causing damage to their credit scores just in case they miss any payments. A personal loan caters to this need of the consumers.

    4)  Besides, the personal loans also allow consumers to use less of their borrowing limits as compared to the offers provided by the credit card loan service providers. For instance, using more than a certain amount of your credit – card utilization ratio will automatically impact your overall credit score, while under personal loan, it isn’t so.


    However, apart from the above mentioned  positive points, there are a few risks involved in opting for a personal loan, as well.


    For instance, in order to qualify as a rightful borrower of such type of loan, one should have a high credit score. They also need to establish a budget to ensure that their monthly payments fit perfectly along with the loan repayment.


    Ultimately, as the wealth management expert of Northwestern Mutual, Chantel Bonneau rightly said, “Most of those things would be prevented if people took the time to do financial planning.”


    At the end, you must consider all the risks as well as possibilities before taking any significant decision with regard to this.


  • 03Feb
    Business growth

    So you are just about to start your very own business. Being your own boss. Couldn’t get any better than this. Well have you made any money, have plenty of clients, and are you getting the word out about your business? Sure you may have made some money and slowing are getting the word out but, what if you were able to know wholeheartedly that you are taking all the correct steps to set your business up for success. Many people have started business and only last so long before throwing in the towel. It’s not easy and not for everyone. You may not know where to start and could just be winging it. If so, good luck to you is all I have to say. You may want to read this little bit of information to give your business and extra leg to stand on. This information may even help you avoid failure. The five things listed below will help guide to the path of financial success.


    What’s Your Business Idea?

    Is your business unique? Will it attract a wide variety of people? Do you know who your customers are? Can I afford this? Will I make money? These are questions you should ask yourself before doing anything. You need to sell something that people want and, that would make their lives easier. You want to be able to also expand and grow as a business. Hopefully you answered yes to the question above because if so then you have something to offer people and a good idea. Now that you have decided what you are selling then it’s time to create a business plan. Organize and plan out what you need to do to get started. There are even online platforms that can be used as a guide to help you plan.


    How To Keep Your Savings and Get Your Business Started

    Tapping into your savings account just to start your business is a big no no. That is the worst thing you can do. Either you have money to start or you need to figure out a way to get some money. Think about how you are going to market your business. Use Social Media to get what is called crowdfunding. Another thing to remember is that profits are what keep your business going. Profits are not something that should be in your personal bank account. Make another account just for your business. That way you will never take advantage of those earnings and know what is yours personally and what is the business’s.


    Know You Might Fail

    Accepting the fact that many people are going to tell you no. Time and time again. You must believe in your business and have full faith in the fact you are going to be a success. No matter how many times you hear the word no. Someone will say yes. Investors want to work will someone that is fully invested into their company with confidence. Learn from each time someone says no. Move on and improve your tactics.


    Fake It Till You Make It

    What I mean by this doesn’t actually have to do with lying at all. That will get you nowhere and lead to a bad rep. You never want a bad rep. Think about words you can use when marketing your business. Think innovatively and make people understand why your product is the best.


    You Will Need Help

    Being a business owner completely on your own can run you down. You may get confused and overwhelmed. Think about like minded people you know that could potentially help you with success. Keep the jobs you want and are good at. Give the rest of the other jobs out to the people you have so carefully picked.


    So use these tips, get out there. Be a successful business owner and live up to your full potentional.


  • 01Feb
    Categories: Lending Comments: 0
    payday loans

    When you need a quick loan, the easiest way to get it if you have less than perfect credit, is to take out a payday or car title loan. In order to obtain a payday loan, you show the lender your most recent pay stub. Based on how much you make per week or per month and how much you need to borrow, is calculated to give you a loan amount with interest. Similarly, car title loans allow you to receive a loan, by giving the lender the title to your vehicle, assuming you own the car. Because these types of lenders do not tend to look at credit and focus more on current income and property, it is a popular choice for those who might need some quick cash. Many believe it is a trap for low income individuals and  for this reason, the Arlington City Council in Texas has voted to restrict where payday and car title lenders can do business.


    Vote in Arlington

    Arlington City Council officials will have to take a second vote to finalize the new restriction. The measure would create a land-use designation, in which new lender businesses would have to stay a certain distance from residents, highways, and other lenders. In doing this, lenders who are involved in shady business practices and offer clients high-cost refinancing options will not be as widely available to the lower income populations. These new zoning requirements would completely separate payday and car title loan lenders from more reputable loan sources, such as banks, credit unions, and other financial institutions. New restrictions would also only apply to new businesses being opened in the Arlington area. Existing lenders would be considered grandfathered in, except in certain situations. For example, if a fire were to cause more than 50% damage to a lender’s location, they would be unable to rebuild in that exact location if it does not meet the specific zoning requirements.


    Recent changes to how lenders do business

    Arlington City Council members met on November 18th of last year to develop new ways in which payday lenders can do business. These new laws went into effect on January 1st, and are very similar to how car title loans work in San Antonio, Texas. Now in both Arlington and San Antonio, payday loans are limited to 20% of a borrower’s gross monthly income, loans are limited to no more than four equal installments during the payback of the loans, and it is forbidden to either renew or refinance installment loans. Auto title loans are limited to whichever is lesser, 3 percent of the borrower’s gross annual income or 70 percent of the vehicle value. Payday lenders are also required to keep loan records saved for three years minimum, and provide any customer who receives a loan a list of nonprofit, credit counseling providers.


    How new zoning helps borrowers

    Council member Jimmy Bennett said that he believes payday and car title lenders were dealt with fairly. People in the area would take out a loan without thinking about the amount they would need to pay back, including interest, and fail to pay back their loans on time. This helps regulate loan amounts and locations, which can be a benefit for poorer communities.

  • 21Jan
    Summer woman driving a convertible car

    Have you had to take a long journey away from home and you just don’t want to add mileage to your own vehicle and now decided to rent a car instead? There are many people like you who have made that choice. Does it really save you though? If you were to hire a car during your vacation or hire one to travel to another city to do business, you may find it very costly, unless you check out the advantages first.

    Seeking Solutions

    When you are seeking solutions for an affordable rental car, there are essential factors to consider. The first thing you should pay attention to is the hidden fees associated with renting a vehicle. Yes, there are hidden fees that many car rental companies charge. In addition, there are many times when you are not aware of the fees because they don’t tell you. You would be shocked if you spent some time to ask questions and thoroughly assess your final invoice.  

    The Mileage

    One way that the rental car company can get you to pay more is not to offer unlimited mileage option. Some rental car companies will even charge you additional for each mile you travelled. That means you have to pay for fuel and for the time that you drive. Before you book a rental car, be sure to question their fees and request a final dollar amount. You don’t want any surprises when your trip ends.

    Advance Booking

    Sometimes, when you book the vehicle in advance, you will be offered a discount. This can add to your savings. Once you know the date of travel, go on the Internet and begin the search for the right rental vehicle for hire. You have a better chance of getting it at a discounted price with advance booking. If you wait until the day of your travel, it will cost you more since vehicles are always in high demand.

    Vehicle Size

    The size of the vehicle also dictates the price. Try to choose hybrid vehicles or economy or compact vehicles. You will be able to drive for longer distances on the fuel that you have to pay for. In other words, smaller vehicles save more on gas.

    Added Services

    Be sure you understand and establish any added services that the rental car company wants to put on your bill. This could include theft insurance, car insurance or risk insurance. The company may offer unlimited mileage or a GPS feature, which cost more. Yes, you want the perfect deal, but at the lowest price.

    Leverage the Internet

    If you don’t already know, most rental car companies have “Internet Only” deals. So before you call, conduct an online search to see what is available. Afterwards, you can call the rental car company to compare the price. You will be surprised with the difference in savings.

    Prior to choosing a specific rental car company, it is best to make sure that you are doing business with a reputable company that offers reliable and trustworthy service. You should be able to choose the vehicle you want and the amount that you are willing to pay.

  • 14Jan
    saving money

    Everyone knows that it’s important to save money and to do so regularly. However, for many people, that’s something that is easier said than done. If you’re like so many others who find the prospect of saving money to be a little (or a lot) daunting, don’t worry. There are many super simple but effective strategies you can use to save money quickly…almost without noticing you’re doing it!

    A Dollar a Day

    Most people like the idea of having a lot of money saved up. What they don’t like, however, is the idea of having to part with a lot of money all at once. To solve this conundrum, just save a little bit every day.

    A dollar a day is an excellent way to give yourself thirty extra dollars per month (plus interest). If you’re not ready to commit to that much, though, every little bit, even if it’s just a quarter or fifty cents per day counts for something. You can stash the money in a jar and then deposit it in the bank once per month or so.

    No matter how you do it, you’ll get into the habit of saving, which is the most important thing of all!

    Stick to a Budget

    If you really want to get serious about saving, go ahead and draw up a monthly or weekly budget based on your income. Plan the budget to include all the things you have to pay, like bills and basic necessities. When you’re done, you’ll know exactly how much disposal income you have to work with, and you can aim to save half of that disposable income (or whatever amount works for you) per month.

    Ditch a Bad Habit

    There are very few perfect people in the world, so there’s a pretty good chance that you have some kind of bad or unhealthy habit. There’s also a good chance that, whatever your bad habit is, it’s also a costly one.

    A smart thing you can do, though, is to ditch the bad habit, whether it’s smoking, drinking soda, or anything in between and to put all the money you save directly into savings. So, if you quit smoking and you smoked a pack a day, you’d figure out the cost of a pack per day and then deposit that amount in your savings.

    You’ll get rid of a bad habit and save money too; what could be better?

    Profit from a Hobby

    Finally, if you have a potentially profitable hobby, why not turn it into a money-making venture? You could sell your arts and crafts or go into professional cake making, for example. It doesn’t matter what the hobby is. If you can turn it into a way to make a profit, you can stash that money straight into your savings account.

    As you can see, saving doesn’t have to be super difficult, not if you’re creative and willing to find simple but effective ways to save that work for you.


  • 29Dec
    Categories: Lending Comments: 0
    Handshake with the transfer of money

    Is peer lending the right thing for you? Many consumers are choosing peer lending as a viable solution to handle their borrowing needs. This is as a direct relation to the decisions being made by the credit card and banking procedures. Many consumers are being faced with the ongoing challenges of tough lending practices.


    Saving Money

    Some consumers are not able to get a personal loan or when they can get a personal loan, it is only those with high interest rates. There are many peer lending services that offer lower rates (as low as 7%) and so that is why consumers are switching to save money on lower interest rates compared to what the credit card and banks would charge. For that reason, peer lending companies have the ability to compete with financial institutions and credit card companies. With no overhead costs or operating costs, peer lending companies can offer lower interest rates.


    Specific Requirements

    For consumers with better credit scores, peer lending services offer the ability to borrow larger amounts at a fairly low interest rate. However, despite this, not all consumers will get one of these loans. There are still specific requirements that have to be met by borrows prior to receiving one of these loans. There are a wide range of different requirements as it relates to the different companies. It could be the borrower’s credit score. It could be a threshold of debt to income ratio. It could be the number of delinquencies, credit inquiries and how credit has been utilized by the borrower on other credit cards. Most lenders still prefer to have a screening process to limit the borrowing risks.


    The Process

    You may be wondering how the peer lending process works. It is similar to the business model where the lender and the borrower directly work out an agreement without having a third party lender involved. Peer lending uses an online platform where the borrower lists their loan requests, which includes the amount, the terms of the loan and the interest rate. A number of lenders bid for the loan listing that fit their criteria. The lender also looks at the borrower’s profile, which should include the borrower’s monthly expenses, income, creditworthiness, credit scores and any other necessary information. These parameters are used to calculate the borrower’s debt to income ratio in order to determine qualification.


    The Borrower and Investor Relationship

    For borrowers, the goal is to get a higher loan amount than traditional banks offer. For the lender, there are risks associated with lending a higher amount, but they are willing to take that chance. In fact, most of these investors have calculated their risks and found ways to minimize those risks. On the other hand, some peer lending companies also have investor requirements of a specific net worth and yearly gross income. With these requirements, investors then prove that they can tolerate the financial risks that may be involved with the process.



    The peer lending trend is one that is going nowhere as borrowers are tired of being turned down by financial institutions and credit card companies. Before you seek peer lending service, it is best to be aware of what is involved and understand your responsibility.