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.
by Bold Growth Solutions | Sep 29, 2021 | Blog
When it comes to taking on debt to advance your business, sometimes it’s best to have a slice of each world, which, in the realm of business finance, means splitting your baskets into debt and equity. This is the function of a mezzanine loan; it helps out businesses that may be unable to secure from a loan the total amount needed to fund a project or company advancement.
Mezzanine Loans: The Details
This type of loan is squarely in the class of creative financing, since there are all types of possibilities and breakdowns – depending on the lending company, and the needs of your business. If you can’t secure a traditional to cover the total cost of something, then this form of creative financing exists to accept some equity in exchange for the money you need. You should expect to pay higher rates of interest for virtually any type of mezzanine loan that you receive – however, this is buttressed a bit by the more flexible terms of repayment.
Main Use of a Mezzanine Loan
The primary utility of this type of loan services companies that have a record of success. By this time, perhaps most of your working capital is already tied up in business-related ventures, but you see an opportunity to make an acquisition that could propel you to the top of your industry. It is for this that the mezzanine loan can swoop in to save the day. As you can expect, the interest rate will be higher than the average loan. You will often also have the option of capitalizing these interest payments so as to keep a higher cash flow for business purposes presently.
You should know that in the event of a default on the mezzanine loan, they are regarded as being lower priority than other types of equity and loan instruments. This means that they are among the last loans to be liquidated in the event of default – which is bad for you if you’re the lender, or if you acquired the business that defaulted.
Contact Bold Growth Solutions today to learn more about mezzanine loans.
by Bold Growth Solutions | Sep 22, 2021 | Blog
Once your business is established, the number one issue that SMBs have is the lack of growth capital; this is the reason for the existence of so many credit unions and community banks – as well as other lending institutions, of course. To help you get that often very necessary infusion of new cash, we’ve compiled a short selection of the best options for securing growth capital.
Invest Your Own Hard Cash
Although this is one of the most difficult ways to obtain growth capital, it’s also one of the best – you don’t have to worry about loans and interest payments, and time isn’t as much of a hindrance as with the latter options. Most businesses have to use this option at least a little bit, since you can rarely obtain loans for everything.
Consider Venture Capital
If cash is hard to come by, and you have a promising idea and proof-of-concept ready-made, then a venture capital firm might be your best bet for acquiring growth capital. The beauty in this arrangement is also the potential downside: you get their investment in exchange for equity. That means no interest payments; but it also means you are now part-owner of your business.
Borrowing Hard Cash as an Option
It is for this that banks, credit unions and lending companies exist: the added benefit is that they have no vested interest in how you use the funds (which means control is totally yours), just in your ability to pay back. If you need a few months to raise your credit score, it’s advisable to take it – you will get better interest rates on loans in the long run. The drawback to loans, of course, is how burdensome they can become if profits decline or are slow to activate.
Help From Above? Angel Investors
Although a bit tongue-in-cheek, the angel investor really is an exceptional option in this spate of options for acquiring growth capital. These are wealthy persons who take a direct interest in your business and provide both capital, as well as contact and suppliers that would be difficult to get with otherwise. Like venture capital firms, they usually want equity, of course.
by Bold Growth Solutions | Sep 15, 2021 | Blog
In most cases, when a homeowner is planning to move, they must rely on the money they are getting from the sale of their current home in order to purchase the new one. However, closing dates don’t always work out right and you find yourself in a difficult balancing act with your finances.
This is where bridge loans come in handy- you can purchase your new home without having to wait for your current home to sell. Unfortunately, there are some drawbacks to this type of loan that “bridges” the gap. In this article, we’ll look at how they work and he advantages versus disadvantages of this type of financing.
What are Bridge Loans?
This is a short-term loan used in real estate transactions when a buyer doesn’t have the money they need to purchase a new property before the first property sells. Typically, you can borrow up to 80% of the combined value of the first and second property. Of course, different lenders have their own standards.
Advantages vs. Disadvantages of Bridge Loans
As with other loan products, these loans have advantages and disadvantages for the borrower. It’s necessary to consider all of these before making your decision.
Advantages
Faster financing
Flexibility in purchasing
No contingencies in your offer
Less hassle
Disadvantages
More expensive
Higher interest rates
High 0rigination fees
Equity required
Sound finances
Responsibility for the loan even if first property doesn’t sell
While bridge loans may seem like an attractive option when you’ve found a home that you want to purchase but your current home hasn’t sold, you must consider the advantages and disadvantages very carefully. There are some other options that you might want to consider instead. Call Bold Growth Solutions for help in deciding if a bridge loan is the best route for you to take or if another option is right for you.
by Bold Growth Solutions | Sep 9, 2021 | Blog
Running a business in the modern age means knowing how to take your advertising efforts to digital fronts. If you’re not taking advantage of what online advertising has to offer, you’re missing out on a huge area of possibility for your business. Thankfully, it is never too late to get started. If you’re looking to put together a marketing strategy that incorporates a variety of modern ad techniques, you can easily accomplish this with a few moves. Take a moment to consider these ideas and get your own wheels turning for what you can do.
Start Small
Jumping into the fray without any preliminary work is an easy way to waste your budget and make some decisions in haste. The best way to get yourself going is by starting small. Instead of planning a huge launch for a new marketing campaign online, play around with a few safe ideas. If your website is in need of some major updates, put in the work to have it designed to meet current trends. By focusing on what is possible to achieve right away, it makes it easier for you to get a feel for all your future options.
Control Your Budget
There are many ways to sell your services on the internet. For some, online advertising is all about location. Putting an ad on the right site can attract a ton of potential customers to your landing pages. Since you don’t always know which sites will yield the best results, PPC advertising can be a lifesaver. With pay-per-click ads, you pay only when a visitor clicks your ad. This means you don’t need to worry about renting space on a site where you never see any results. Save money and see bigger returns on your investment.
Use Social Options
Social media channels can also prove useful when you’re putting together a strategy for marketing on the internet. These days, sites like Facebook and Instagram are shifting to offer businesses more options for interacting with consumers. In fact, you can now sell your goods and services through these social sites in a way that was unheard of just a few years back. While it shouldn’t be your primary mode of selling, incorporating the right ads into your social experience can definitely start to get people curious about your brand.
When it comes to online advertising, there are a ton of options to consider. Give yourself a chance to learn more about all of the different ways to promote your brand and find what fits your goals.
by Bold Growth Solutions | Sep 8, 2021 | Blog
Even when you have the skills necessary to complete a project, not having the money to do so can ruin your chances of winning the contract. In most cases, you’ll be paid after all work is completed or at preset milestones throughout the project. Therefore, you’ll need to front some of your own money to get started. If you don’t have the money, you might want to consider looking into contract financing.
How Does it Work?
While a portion of the process starts before you start the project, such as proving to the customer that you will be able to complete the project, the funding doesn’t occur until after the contract is awarded. Of course, the lender will need to see financial statements, reference letters, a company profile, and bank statements in order to determine if you have the credibility to handle the contract.
How is Contract Financing Dispensed?
Once your company has the contract, it’s time to receive the funds and get started. In order to determine how much to provide, the lender will need to analyze the contract. The way the funds are dispensed depend upon your company profile and will be one of the following three ways:
Purchase order financing
Your company controls the money
You watch over the money
Terms of Contract Financing
Once the structure is determined, you’ll need to think about the fees that will be charged by the lender. There are four terms of contract lending you should know:
Advance amount is the total amount
Factor fee similar to interest rate
Advance percentage is the amount requested from the customer to pay the invoice
Advance term is the amount of time payment is withheld after invoice received
Where to Get Contract Financing
Typically, banks do not get involved with contract financing because it’s not really a loan. The funding is often provided by private companies that deal with factoring and can be found online. You’ll just need to complete your application and wait for them to call you. If you do receive contract financing, you’ll want to carefully review the terms to know what you’re getting yourself into. Call Bold Growth Solutions today to help you with your contract financing needs.
