by abundantadmin | Jan 10, 2023 | Blog
You’ve been told that it takes money to make money. Unfortunately, the world of financing can be complicated- especially if you’re just starting out. Traditional options require several years in business, excellent credit scores, and consistent revenue- which most new businesses simply don’t have.
This is why many small business owners turn to creative financing- it provides a variety of options to fund a business. You’ll have to think outside the box, but chances are that you will find exactly what you need.
7 Creative Financing Options
Below, we’ll take a closer look at 7 creative financing options:
Bootstrapping
Bootstrapping is using your own money to finance your business. While this does decrease your liability, it also impacts your ability to grow. If you are starting your own business with your own money, it may take years to get going. A business loan, on the other hand, could have you launching within a week. However, bootstrapping means that you don’t have to worry about making debt payments- your business is 100% yours.
Friends/Family
You may also want to consider asking friends and family for help. However, you’ll need to have the agreement in writing- and be very specific about the terms. This keeps everyone on the same page and can help avoid spoiling your relationship.
This is one of the most popular- and most affordable- options for funding your small business. In fact, research shows that over 40% of startup funding is obtained through friends and family.
Competitions
You can potentially earn startup funding by pitching your business idea to investors in a competition. You’ll be competing with other entrepreneurs- so there’s no guarantee that you will get the funds. Still, it will give you a chance to improve your pitch skills, draft a viable business plan, and meet other entrepreneurs and venture capitalists.
Accelerators
A startup accelerator can provide a variety of services to help you launch your business including funding, networking, and counseling. In exchange for financing, they will require equity, but you don’t have to pay it back in cash. Since they are investing in your business, they also want to help you succeed.
Grants
Many people believe that loans and grants are basically the same types of funding. This isn’t true. A lender allows you to borrow money to be paid back, with interest. On the other hand, a grant provides money with no repayment required. However, there are usually restrictions on how the grant money can be used based on the grant source.
Angel Investing/Venture Capital
Both angel investors and venture capitalists offer money to new businesses, as well as partnership relations, mentorship, and networking. However, venture capital requires an exchange of equity. This may seem like a good option in the beginning, but you are potentially giving up a portion of control for the lifetime of your business.
Crowdfunding
In recent years, crowdfunding has become a popular option for securing business funding for startups. In this type of funding, you present your idea to the public via a platform such as Indiegogo, GoFundMe, or Kickstarter for them to make donations. However, keep in mind that when using these platforms, they get a percentage of your donations.
The world of business financing can be complicated. Unfortunately, many entrepreneurs don’t qualify for traditional financing. Fortunately, there are some creative options available. If you need guidance, contact Abundant Wealth Financial to learn more about these options.
by abundantadmin | Jan 3, 2023 | Blog
In a general sense, online lending- also known as alternative lending- is funding that does not come from a traditional bank. In the past, this included government loans, credit unions, and other credit lines structured like bank loans but from a different source. Now, these are part of the traditional lending market because the terms, criteria, and regulations are the same.
Alternative lenders, on the other hand, are not traditionally part of the financial industry, use different methods to communicate with clients, do not use FICO or other metrics for qualification, and use different approval processes than traditional lenders.
Due to these differences, online lending offers several advantages for borrowers:
- More options for obtaining funding
- Faster funding, which is useful during a financial emergency
- Smaller amounts available
Types of Alternative Lenders
The category of alternative lenders is a catch-all for anything that falls outside of traditional funding. Some of the most common types of alternative loan include:
- Lines of credit
- Peer-to-peer programs
- Factoring
- Merchant cash advance
- Working capital loan
The type that is most appropriate for your business depends on your situation.
Tips for Finding Safe Online Lenders
Before you go online and apply for the first loan offer you find, take some time to research your options. These tips can help you reduce your risk of falling victim to a scam:
- Do they have a physical address? Even though they operate online, a legitimate lender will have a physical address visible. You can then use Google to verify the address.
- Do they have third-party verification? Look the company up on BBB to find their listing and rating. If the company meets or exceeds security and privacy standards, companies like TRUSTe will award their seal.
- Do they have customer reviews? You can’t always use reviews to fully form your opinion because people are more likely to post a negative experience than a positive one. However, find out what people are saying- look for patterns in the comments- to help you determine the safety of the company.
- Who owns the website? Look the site up on WHOIS to find out who owns it and how long it has been around. This will help you determine if they are truly an online lender.
Considering Alternative Lending to Fund Your Business?
Legitimate alternative lenders understand that their success depends on their reputation for protecting their customer’s information. These companies will do everything they can to protect themselves and their customers. If you’re ready to move forward with applying for an alternative loan, contact Abundant Wealth Financial today. We can help you find the funding you need.
by abundantadmin | Dec 27, 2022 | Blog-Finance
There are many financial metrics you want to understand as a business owner. The better you understand what’s going on with your capital, the better equipped you are to nudge your company in the right direction. That way, you can reach your goals and enjoy continued success and growth. Two of the most important financial terms are cash flow and profitability. What do these terms mean?
What Is Cash Flow?
Put simply, your company’s cash flow refers to the capital that is coming in and going out of your monthly ledger. It’s a ratio that determines how much money you’re making versus how much you’re spending. You can check your cash flow at any time of the month to see how much working capital you have available for your needs.
What Are Profits?
Profitability has to do with your overall revenue compared to your expenses. It looks at whether you’re selling enough to cover your costs and have money over and above at the end of the month. The goal is to have a profitable business that always generates more revenue than what’s required to run it.
Why Is Your Cash Flow Important?
If your business has cash flow problems — which is surprisingly common in many industries — it means that you have trouble keeping liquid capital available to use during the month. You may be selling more than enough to cover your expenses in terms of revenue, but that money may not be available at the right time.
For example, imagine a manufacturer that sells $100,000 worth of finished goods. The raw materials cost $25,000. On paper, the manufacturing company is poised to make a huge profit. What happens, though, if the customer who purchased the goods requires three-to-six months to make payment? Even though the sale is already finished and billed, the capital isn’t actually in the manufacturer’s hands yet.
This becomes a big problem if the suppliers require the manufacturer to pay for raw materials in 30 or 60 days. To avoid problems, the company would need an alternative source of financing to cover the cost until the money from the sale comes through.
Which Is More Important: Cash Flow or Profitability?
Both of these financial terms are vital. One without the other is a sign of poor financial health. Fortunately, with financing, it’s possible to balance things out. Investing in your business matters so you can continue growing revenue and profitability, which helps your cash flow.
Abundant Wealth Financial offers cash flow solutions to ensure businesses can cover expenses and build up capital for growth projects. Contact our offices today to learn more.
by abundantadmin | Dec 20, 2022 | Blog-Finance
Small business financing can be a complex topic. Even when you ignore all the options that do not suit your business or available assets, there are a lot of options to choose from. One of the most popular types of loans is the hard money loan, but many borrowers get confused about what they are because there seem to be so many different products labeled hard money loans.
Hard Money Defined
The short version is that the term means the same thing as the term private loan, but that oversimplifies the issue. If you feel like there are many different types of loans with the hard money label, that is because there are. You have short and long-term options, collateral-backed loans, and many other products available. What makes them all hard money loan subtypes is the kind of backing they have.
Traditional banks and financial institutions work with the Federal Reserve system, which allows them to borrow at extremely low rates and then lend the money out to businesses like yours. As a result, they only need to actually hold a small portion of the loan’s value in cash reserves of their own. Hard money loans from private investors and financing firms, on the other hand, have the financial resources to back their loans. That is what makes them hard money, as opposed to the alternative soft money loans.
Secured Loans From Private Lenders
If you have asset collateral and apply for a secured loan, you can reduce the emphasis on your credit report and the interest you pay at once. Typically, secured loans also provide you with a higher maximum loan balance because the lender’s risk is reduced by the value of the asset. As a result, asset bridge loans and credit lines are very accessible when you deal with hard money lenders. Those are not the only options, either.
Some lenders also offer hard money versions of the commercial mortgage, making it easier to refinance when you need a large sum of capital. You could even use those loans to buy a new property if you have the right down payment in your company’s cash reserves.
Unsecured Hard Money Loans
If you do not have asset collateral and you are not looking for a large loan, there are unsecured loan options for working capital. The costs are high, but approval processes are fast and loan terms are very short. This allows you to access the capital you need when short-notice opportunities arise, provided you have the income to manage repayment. Keep that in mind when your cash flow is tight and a customer wants to place a big order and keep your other loan options in mind for when you do have those assets to refinance.
Abundant Wealth Financial provides hard money loans that feature fast closings and generous terms. Contact our offices today to get the financing you need.
by abundantadmin | Dec 15, 2022 | Blog- Marketing
An abundance of competition in the legal field makes it hard for firms to stand out and build up their practice. Law firms that are looking to boost their profile and attract more clients need to enhance their outreach efforts. If you’re looking to devise more effective marketing directions to get more intakes, here are some key areas to focus on.
Overhaul Your Website
Is your firm’s website up to par? Your web design can make a winning impression on people who are learning about your services online. If you’re not adequately attentive to your site’s performance, however, you could be making a really lousy impression. The first thing that you have to affirm about your website is whether it is fully functional. Unfinished sections and pages that don’t load are a huge red flag. Slow-loading pages are also a huge red flag.
Outdated-looking or visually displeasing design can have the effect of driving people away from a site, and it can undercut your most important law firm objectives. Even if the site’s problems are primarily aesthetic, not updating a site conveys that you aren’t on top of things. If people look at a firm’s site and conclude that it’s too busy to take care of basics with website maintenance, they won’t feel good about entrusting you to handle a complex legal matter.
Find What Works and Repeat It
Use data analysis that gives you a clear picture of how well various types of ad campaigns and engagement strategies are working to generate business. Specifically, you want to see what tactics are sparking interest that brings people to your website site or social media accounts as well as which segments of those leads become your firm’s client. Smartly analyzing key metric points allows you to clearly identify the most effective and cost-efficient law firm marketing tactics that you should employ in your engagement initiatives.
Build a Strong Network for Referrals
Being active in your professional community is a key component of law firm marketing. Make it a point to establish relationships with other legal professionals. Firms refer out clients frequently, and it’s not always because they don’t like the looks of a representation. A representation that involves a highly specialized practice area need or a super busy caseload may make an attorney who is conducting an intake might reasonably conclude that a referral is in order.
Ultimately, investing resources in marketing needs to be a top operational priority for law firms. Well-directed outreach tactics can position your firm for a new phase of growth. Contact Abundant Wealth Financial today to explore our comprehensive marketing solutions.
by abundantadmin | Dec 13, 2022 | Blog-Finance
Over the last decade, the concept of company culture has dominated countless discussions in boardrooms. Though often used as a way for new management to “shake things up,” changing the culture of your business might actually have a profound impact on daily operations. However, it is vital that you go through the process of revitalizing the atmosphere of your company in the right way. This means that you need to become more organized. A strategy for organizational culture can completely revolutionize the way employees and consumers feel about your brand.
Focus on Problematic Behaviors
Being organized in your approach to changing corporate culture will benefit you in many ways. Instead of seeing a problem and immediately assuming that you need to find a solution, you should dive deeper into the reason for the issue. Why are certain setbacks happening? According to experts in the world of modern business, transforming the behaviors of your team members for the better can have more of an impact than simply attempting to solve problems as they appear. Learning more about problem sources will require effort on your end, but the results will prove essential to your future.
Build a Team
Another point to keep in mind about organizational culture is that you are not going to be able to oversee all aspects of implementing your strategy. This is where your management team comes into play. Which members of your staff exude leadership qualities? Target these individuals and ask them to be a part of a specialized team aimed at making the transition to the new company culture as easy as possible. People who are trusted by the rest of your staff are likely to see the best results when attempting to make big adjustments.
Use Data
Changing the culture of a business for the sake of it might seem like a practical idea, but it actually will cause more harm than good if it is not done for a real reason. You might get pushback from employees and many inquiries about why you are doing this in the first place. To provide real insight, back your decisions up with numbers. Tying objectives to planned shifts in corporate culture is one of the more sensible choices available to you, giving you the chance to make your case with data.
Organizational culture can be a lifesaver when you are trying to make lasting changes to your business operations. Get organized and develop a plan that will breathe new life into the culture surrounding your brand.
by abundantadmin | Dec 6, 2022 | Blog-Finance
Starting your own business might sound like an intimidating challenge. However, it doesn’t have to be this way. Launching a startup can be one of the most rewarding experiences that you’ll ever have but it requires a lot of hard work and dedication. This post will go over some things that you should know in order to plan your own venture as an entrepreneur.
Decide What Kind of Business You’ll Be In
Startups come in many forms and there are countless options on the table. You can start a consulting firm, a mobile app development company, a social media company, and so on. The type of business that you choose will depend on many different factors, including your interests and the market for your product. You also have to make sure that the business that you have in mind is not simply a passion project; it should be something that you’re willing to stick with long-term. Once you’ve decided on what kind of business you’ll be in, you will be able to focus more on the industry.
Research Your Market
It’s imperative that you research your market. Thorough research will not only help you choose the right market but it will also help you decide on the right product or service to create. You will want to learn about the needs of your audience and how you can satisfy them. Once you have a better grasp of these factors, you should have a clearer idea of what your business should focus on and how you should market yourself.
Develop a Unique Product or Service
You must make sure that you’re offering something that has real value for your customers. Specifically, you’ll want to think about how you’ll develop your product or service and how you will differentiate it from your competitors. Pay attention to what similar startups are offering. Perhaps a company is selling a product that people are interested in but the product has some issues. This insight can inspire you to make your own product that is better than that of your competitor.
It can be difficult to stay motivated and focused when you’re planning on starting your own business. You might get side-tracked by other things in your life, you might be struggling with financial issues, you might have decision fatigue, and so on. That said, by following these steps, you should be one step closer to launching your own business.
Abundant Wealth Financial offers a wide range of funding solutions for new and small businesses. From startup capital to SBA loans, equipment, lines of credit, real estate, and more, our team will work with you so you can get the financing you need for long-term success.
by abundantadmin | Nov 29, 2022 | Blog-Finance
Lines of credit are like the Holy Grail for small business owners. These financing tools are incredibly powerful, but many people also feel like they’re impossible to find. That said, there are many ways for an owner to qualify if they’re willing to think outside of the box. That can put funding within reach for a variety of business needs.
What Are the Traditional Requirements for a Line of Credit?
Normally, lines of credit follow pretty much the same general requirements as conventional loans. To qualify, your business needs several years of operation, consistent annual revenue, strong cash flow, and an impeccable credit score. This is good news if you have decent credit since you can probably get unsecured credit without issues.
Unfortunately, many small businesses have trouble reaching all of those things. The good news is that there are a few ways to make things easier on yourself. One is to put up collateral. You can secure a line of credit using inventory, real estate, vehicles (sometimes), or equipment. This lowers the other requirements to make getting approved easier.
What Alternatives Does a Small Business Have to Conventional Lines of Credit?
Conventional business credit isn’t the only door open to you. There are several other options depending on your goals and time in business.
One method is to approach a lender about financing from the Small Business Administration. The SBA can help you get a small business loan or line of credit that meets your objectives. You may be able to use the funds to remodel your business, purchase inventory or take care of similar needs. These lines of credit cap out at $5 million, but your total amount depends on revenue.
Another option is business credit cards, which operate similarly to a line of credit and have lower requirements for credit score. The only downside is that any credit card carries a higher interest rate than lines of credit. That means you need to be extra careful with how you spend the money and how you repay it. Still, credit cards can be a great way to balance out your cash flow.
Last but not least is crowdfunding. This relatively new method of obtaining financing isn’t quite like a line of credit, but it can be used to get support for day-to-day activities. If you need to upgrade computer equipment or improve other facets of your business, it’s worth looking into.
Abundant Wealth Financial offers accessible and unsecured lines of credit for new and existing businesses of all types. Contact our offices today to get the funding you need.
by abundantadmin | Nov 22, 2022 | Blog- Marketing
Pay-per-click ad solutions have consistently proven popular with business owners for many years. This is largely due to the fact that PPC services provide the opportunity to save money without sacrificing direct results from marketing initiatives. Like most digital solutions, however, PPC trends are always changing to meet the new demands of consumers. In order for your business to remain relevant in its advertising attempts, you must do your part to learn more about the fads and tactics shaping the world of pay-per-click ads. Look at these tips and forget your own path to online success.
Leave Familiar Territory
After using PPC solutions for a set amount of time, you might grow comfortable with your decisions. When an ad is producing results, you may not feel inclined to make any adjustments. While there is some validity to the adage “if it ain’t broke, don’t fix it,” you will never be able to take your company to new heights without taking some risks along the way. Testing new sites and channels can be a great way to explore other horizons. Conducting ad tests on sites you’ve never used before might introduce you to better results than you’re used to.
Tweak Your CTA
When you’re advertising your services on the internet with pay-per-click ads, you don’t have the luxury of a lot of time or space. This means that you need to be as concise as possible with your message. Since every ad must contain some type of call to action, you should give yourself the opportunity to look at PPC trends surrounding CTA verbiage. Test out a few different options and then use analytics to determine which of the choices produced the best outcome. These simple steps can help you drive more traffic to your site via your ads.
Consider Automation
There are a number of processes involved with marketing your company’s services on the internet. Since you want to dedicate as much focus as possible to the most important daily tasks, it can be useful to learn more about your options with automation. Taking some of your marketing responsibilities and automating them might be the perfect solution. Don’t jump right into the decision, of course. Take your time and play around with which aspects of the PPC process you would be able to automate without concern, then conduct a few tests to see if it is a worthwhile endeavor.
Understanding the latest PPC trends can play a big part in how successful your ads prove to be. The more you know, the easier it will be to craft a digital marketing strategy that effectively takes all possible angles into consideration. Contact Abundant Wealth Financial today to learn more about our PPC solutions.
by abundantadmin | Nov 15, 2022 | Blog-Finance
Credit lines have been one of the most popular cash flow management tools for companies in the U.S. for decades, and for good reason. They are flexible, they can be used to address any cash flow need that falls within their limit, and with the right assets backing them, they can also be quite inexpensive. If you have never applied for business lines of credit before, there are a few steps to it, but it is not as complex as a loan to purchase an asset. In fact, most credit line approval processes are designed to be easy to navigate.
1. Research Your Lenders
There are a few common requirements for credit lines like your basic business information, proof of insurance, and proof of collateral asset ownership or value. Beyond that, the particulars are unique from one lender to the next. Proper research gives you a chance to compare shop for both interest costs and simplified application processes. Use that opportunity to make the whole proposition easier on yourself.
2. Prepare Your Financial Documentation
Your application package needs to substantiate your income with financial statements in addition to providing information about your location, tax ID, and other important business information. Pull together bank statements, projections, and income statements from your own accounting people to show that you can afford the payments even if the credit line winds up maxed out for some reason. That makes it easy to approve your business.
3. Document Your Collateral’s Value Clearly
The most common asset to use when applying for lines of credit is real estate, and each lender offers a different LTV based on the land value and your credit line. If you do find someone who offers credit against equipment, the same principles apply but you generally do not get as high an account limit. Either way, you need to demonstrate your ownership of the collateral and document any other loans against it or issues that might affect resale if the credit line is foreclosed upon.
4. Be Ready To Communicate
Like many financing application processes, there is a certain amount of back and forth when negotiating lines of credit for small businesses. Often, the approval process is held up because of missed messages or borrowers who do not prioritize fast responses to queries. Be prepared to offer up additional requested information and to confirm approval amounts so you can do your part to get a credit line approval quickly. If you do, you will be surprised at how easy the process can be.
Abundant Wealth Financial offers accessible and flexible lines of credit for new and established businesses. Contact our offices today to get the capital you need.
