by Bold Growth Solutions | Oct 27, 2021 | Blog
Starting a new business or expanding your business costs money and one of the biggest challenges facing business owners is getting the money they need. The business financing landscape is large and it’s hard to find the right method without some major research. One option that many businesses choose to cover everyday expenses is a working capital loan.
Working Capital Loans Explained
Loans are typically categorized based on what they are going to be used for. A working capital loan is used to fund the day-to-day operations of a business. They are often used for payroll, debt payments, and rent. They can also be used by the business during the slow season to cover immediate expenses.
A cash flow loan has some similarities to working capital loans, but are approved based on the past and future cash flow projections for your business. You typically don’t have to put up any collateral and the approval process takes just a few hours. This is a very flexible option compared to some of the other business funding options. However, you’ll want to be sure that you’re aware of the interest rate (often high) and be sure that you and your attorney read through the agreements before you sign.
Who Provides Working Capital Loans ?
While there are some banks that offer working capital loans, you’ll typically find an online provider offering the best terms and easy qualifications. A bank will usually have a much more stringent approval process to go through and you’re less likely to get a quick approval.
How to Increase Your Working Capital
The term “working capital” refers to when your assets are greater than your liabilities. If you want to increase your working capital, there are a few options:
Borrow money
Sell long-term assets
Replace short-term with long-term debt
Choose vendors that offer discounts
Analyze fixed versus variable costs
Manage inventory
Learn about tax incentives
Keep financials current
Many businesses struggle with increasing their working capital. If you’ve exhausted all of the above options for increasing yours, it might be time to consider looking at working capital loans. When you decide that you want to explore these options, contact Bold Growth Solutions to help.
by Bold Growth Solutions | Oct 20, 2021 | Blog
When you are investing in real estate, acquiring the necessary funding can be difficult. One way that many professionals deal with this is to take out a hard money loan. This is a short-term loan that acts as an alternative funding method to obtaining a mortgage. However, there are advantages and disadvantages to using hard money.
Advantages
The advantages include speed, flexibility, and approval. To get a hard money loan, you are required to put up collateral. For this reason, you can generally get a hard money loan much quicker than any other type of loan. You are seen as low risk to the lender because the collateral is sold in the event you can’t pay them back.
You will also find that you have more flexibility when it comes to how you use money from the loan. In some cases, you can set your own schedule for repayment, something other loan types don’t offer. Add this to the fact that it is generally easy to get approved for this type of loan, and you will be well on your way to having the money you need.
When To Use One
A hard money loan is most often used when you need financing to flip houses. Yet it can be used to purchase a house you intend to live in. Most people that start with a hard money loan renegotiate the deal once they’ve bought the house.
Disadvantages
The main disadvantage of taking a hard money loan is that you will pay higher interest rates on it than you would on other types of loans. The lender may require you to cover the closing costs of the house you are buying, even if you intend to fix it up and sell it. Another disadvantage is, because it is a short term loan, it can drain your finances in the long run. Generally, the higher the value of the property you are buying, the more money the loan is going to cost you.
For more information on the advantages and disadvantages of hard money loans, please contact Bold Growth Solutions.
by Bold Growth Solutions | Oct 13, 2021 | Blog
One of the best ways for a new business to get a loan from a lender is through an asset-based loan. These are typically easier to get, as long as your business has some sort of collateral. In this article, we’ll define asset-based lending, explore the advantages versus the disadvantages, and help you determine if this is the best solution for your business.
Asset-Based Lending Defined
Let’s start by defining asset-based lending. This type of lending has been around since lending became an industry. Basically, it is a cash advance based on the assets of a company.
Advantages
There are some benefits to asset-based lending as a way to get the working capital you need for your business.
Flexibility
Maximum proceeds
Frequent reporting to credit bureaus
Better management of cash
Disadvantages
On the other hand, just like many other options, there are a few disadvantages to asset-based lending.
Takes time
Increased monitoring of assets
Types of Assets Needed for Asset-Based Loans
In most cases, asset-based lenders structure loans with advances on accounts receivable- but it is possible to have an advance on inventory as well. Common assets to secure these loans include:
Accounts receivable
Inventory
Machinery/special equipment
Buildings/property
What Businesses Should Use Asset-Based Lending?
Most businesses can benefit from this type of loan. However, there are a few exceptions, such as those who use a recurring revenue model, carry no assets in their balance, or do mostly cash transactions.
Compared to other types of business loans, the lenders of asset-based loans don’t look too closely at your credit history, overall profitability, or cash flow. They are more concerned with the liquidity and value of the collateral you offer. Therefore, you typically need high-value collateral to qualify. If you believe that your business may benefit from pursuing asset-based lending, contact Bold Growth Solutions to guide you through the process.
by Bold Growth Solutions | Oct 8, 2021 | Blog
Most business owners understand that social media is an important resource for modern marketing. However, this doesn’t mean that all companies are performing how they’d like on social channels. There is a lot of work that goes into social media advertising and you need to exercise caution when making decisions related to promoting the services of your company. Take a moment to review these different ways to start building a strategy and see how you can make the most of your experience advertising on a variety of different social sites.
Consider Your Audience
This should go without saying, but you should always think about your target audience when going through the motions of putting together a social campaign. No matter how much money you put behind a plan, the results will not be what you are aiming for if your audience doesn’t find it interesting. Market research can show you a lot about what your target demographics are interested in seeing on the internet, which can make a big difference in how you go about curating and sharing different pieces of content online.
Location Matters
Just as your audience matters when it comes to the success of your social media advertising campaigns, so does the location. There are dozens upon dozens of different social sites to use in the current day and age. If your entire audience is using an application like TikTok and you’re still promoting solely on Facebook, you’re going to start to lose customers to brands advertising on the right platforms. You should always put your resources behind the social sites your analysis of your target audience shows is likely to yield results .
Stay Fresh
Finally, you need to remember to keep your content relevant whenever possible. The biggest mistake business owners can make with their strategies these days is falling behind on social posting. If you’re inactive for too long on a particular application, it can lead to people forgetting about your brand. Try to post regularly and keep your name fresh in the minds of consumers. This, in turn, makes it easier for your specific name to come to mind when consumers are thinking about businesses that provide a service they are in need of.
Social media advertising can often seem a lot more complicated than it actually is. Take time to review factors like your target demographics and which sites are most likely to deliver results and see how it can make a difference toward the success your business sees.
by Bold Growth Solutions | Oct 6, 2021 | Blog
Due to its very nature, patient financing has the ability to significantly increase your reach; essentially, with a good provider, you can now accept more patients than ever before. In the medical field, late or extended repayment periods can adversely affect hospital (or other healthcare facility) operations. Let’s get specific with the many benefits that this payment solution offers.
I. Improved Financial Management
This benefit applies to both the patient and the medical facility. Patient financing lets you extend the payment period without affecting treatment: this means that patients need not be laden down with the sometimes high costs of medical care; additionally, it lets your practice interact with them on a strictly doctor-patient level – without the sometimes relationship-draining experience of payment negotiations.
II. Timely Treatment
Patient financing also fosters timely treatment. The financing company forms a welcome bridge between patient and caregiver; they pay you upfront, and work behind the scenes with the patient on an extended payment plan that is independent of the healthcare provider.
III. A Marketing Advantage
Not all healthcare providers and medical facilities offer financing for the patient; in fact, most don’t. By listing this in your spate of offerings, it represents an effective marketing tool that will certainly more than pay for the finance fee that you render to the company for their services. You can also count on increased patient satisfaction with the availability of payment options, which is often a burden in these tough economic times.
IV. Cash Flow and Optimized Employee Efforts
Financing, of course, improves cash flow – in that sense, it is effectively equivalent to factoring receivables. In the healthcare industry, you can’t afford to work with outdated medical equipment and yesterday’s computers to potentially compromise patient records. Getting payments on time helps to shore up what is the number one problem for most SMBs (small to medium-sized businesses).
All-in-all, patient financing is the way to go. With the increased satisfaction it engenders in your patients, they will be more likely to spread word of your practice to friends, coworkers and family – which is marketing of the highest caliber.
If you need financing for your practice, contact Bold Growth Solutions today.
