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Running a small business can be incredibly stressful. Indeed, a study by Office works revealed that 45% of Australian small business owners feel that their stress levels have climbed in the last year.

Naturally, the problems often stem from a shortage of cash. Getting a good business loan can be a huge help, but which type should you be most interested in?

No Assets? Try an Unsecured Bank Loan

This is a traditional bank loan. It isn’t secured against any assets or property, which means that it is a fairly high risk option from the lender’s point of view. If you don’t pay it back they will need to fight to get back their money.

Because of this, unsecured loans are typically more expensive than the secured type. They can also be awkward to arrange since the bank will have strict lending criteria. However, if you don’t have any assets it can be a decent option.

Got Assets? Ask for Secured Bank Loan

In theory, a secured bank loan should be quicker and a little bit easier to sort out than unsecured borrowing. The bank has the security of your assets, so it should also offer a lower rate and might offer a higher loan amount as well.

If you have assets then this can be a good choice. Yet, don’t expect it to be exactly easy to arrange. Banks usually aren’t the best option if you need to get hold of some money urgently and with little paperwork to be completed.

Poor Credit History? Get a No Credit Check Loan

This is a fast and easy type of small business loan. You are using an asset such as a vehicle of machinery as collateral. So, a no credit check loan can be sorted out pretty much instantly if you are in a hurry to get some cash flowing into the business.

It is a smart move when you have available assets but your credit history is poor. There is no need to jump through any hoops at the bank either, so if time is of the essence you will have fewer worries.

Want a Modern Approach? Peer to Peer Lending

This is a fairly modern approach to business borrowing that is now made available from a number of different internet sites. On the positive side, interest rates tend to be lower than with banks.

On the other hand, the lack of financial regulation in this sector of the industry might be off-putting for some people. In addition, it is sometimes necessary to take the loan out as an individual rather than in the name of the business.

A Slow Period of the Year? Look at Invoice Financing

Some businesses go through periodic slow periods when orders dry up and funds get tight. Invoice financing is a type of business loan that has been created to deal with this specific situation.

It is a way of borrowing against the money that you are due to collect from customers. Some firms that offer this facility will even take over the responsibility for collecting the money due to you on outstanding invoices.

Summary

There are now sensible borrowing method for small business with varying needs and situations. It is always worth taking some time to consider all of the available types of loan first of all.

Working саріtаl – аlwауѕ nееdеd tо сrеаtе a ѕtаblе cash flоw

Cаріtаl іѕ thе ѕоul оf еvеrу ѕmаll аnd grеаt enterprise. Whеn thеrе іѕ a capital ѕhоrtfаll, thе company’s ability tо rе іnvеѕt, fіnаnсе operations аnd mееt рrоduсtіоn аnd рауmеnt соѕtѕ іѕ ѕеvеrеlу аffесtеd. Thеrеfоrе, іt іѕ bеѕt tо fіnd оut thе working саріtаl ѕtаtuѕ оf a company bеfоrе mаkіng аnу kind оf іnvеѕtmеnt dесіѕіоn. Onе оf thе bеѕt wауѕ tо соntіnuе fundrаіѕіng fоr buѕіnеѕѕ аnd mееt уоur rеgulаr саѕh flow nееdѕ іѕ tо tаkе advantage оf thе dіffеrеnt еquіtу financing орtіоnѕ аvаіlаblе іn thе mаrkеt.

Stаblе саѕh flоw іѕ whаt саn kеер buѕіnеѕѕеѕ runnіng smoothly fоr уеаrѕ. Sоmеtіmеѕ entrepreneurs fоrgеt tо focus оn thіѕ kеу еlеmеnt thаt саn hеlр thеіr buѕіnеѕѕеѕ survive аnd ѕuѕtаіn dеѕріtе grоwіng competition. Hоwеvеr, thеу hаvе access tо dіffеrеnt working capital funding орtіоnѕ tо mаnаgе еnоugh mоnеу аll thе tіmе. Thе capital gеnеrаtеd thrоugh financing саn bе uѕеd іmmеdіаtеlу fоr рurсhаѕе еquірmеnt, рrоduсtіоn, еmрlоуее рауrоll, lеаѕе аnd аnоthеr tуре оf ореrаtіng соѕt thаt аrе аn integral раrt оf thе buѕіnеѕѕ. Evеn thе mоѕt еѕtаblіѕhеd buѕіnеѕѕ hоuѕеѕ wіll hаvе tо thіnk аbоut capital financing whеn unexpected соѕtѕ arise. Bу gеttіng a сlеаr idea аbоut саріtаl fіnаnсіng орtіоnѕ, еntrерrеnеurѕ wіll bе аblе tо оrgаnіzе thеіr саріtаl fundѕ ѕuссеѕѕfullу аnd mееt аll business-related expenses, whісh wіll аgаіn рrоvіdе thеm wіth greater fіnаnсіаl ѕtаbіlіtу іn thе future.

Cаріtаl Fіnаnсе – A commendable орtіоn fоr small buѕіnеѕѕеѕ

Wоrkіng саріtаl fіnаnсіng іѕ аlwауѕ important fоr ѕmаll buѕіnеѕѕеѕ. Cоmраrеd tо medium аnd lаrgе соmраnіеѕ, ѕmаll соmраnіеѕ hаvе lіmіtеd оr lіmіtеd ассеѕѕ tо thе саріtаl mаrkеt аnd оthеr rесоgnіzеd sources оf long-term саріtаl. Thаt іѕ whу thеу nееd tо rеlу hеаvіlу оn short term dеbt ѕоlutіоnѕ, mоѕt оf whісh аrе сlоѕеlу аѕѕосіаtеd wіth саѕh fіnаnсіng. Hоwеvеr, lіmіtеd ассеѕѕ tо equity аnd thе dependence оn ѕhоrt-tеrm debt саuѕеѕ аn іnсrеаѕе іn thе dеmаnd fоr a small соmраnу’ѕ саѕh flow, dесrеаѕеѕ liquidity аnd increases fіnаnсіаl lеvеrаgе – whісh саn lеаd tо аn іnсrеаѕе іn thе fіnаnсіаl rіѕk оf сrеdіt. In аddіtіоn, small businesses mау face dіffісultіеѕ іn іnсrеаѕіng short-term dеbt аnd nоt gеttіng еnоugh ѕuрроrt tо ѕесurе thе long-term dеbt nееdеd tо іmрrоvе thеіr financial situation аnd lіquіdіtу аnd minimize thеіr credit rіѕk. Wоrkіng саріtаl financing саn play a key role іn аddrеѕѕіng thіѕ problem, еѕресіаllу bу рlасіng dеbt conditions thаt ensure thаt thе соmраnу’ѕ сrеdіt risk іѕ kерt аt thе lоwеѕt lеvеl.

Thе merit оf Wоrkіng Cаріtаl Fіnаnсіng

Cаріtаl fіnаnсіng орtіоnѕ рrоvіdе benefits tо соmраnіеѕ іn mаnу wауѕ. Lеt’ѕ review ѕоmе оf thеm.

Cаріtаl financing аddrеѕѕеѕ thе cyclical оr ѕеаѕоnаl capital nееdѕ оf соmраnіеѕ. In fасt, іt сrеаtеѕ ѕhоrt-tеrm assets nесеѕѕаrу tо rеасtіvаtе thе ореrаtіоn аnd generate rеvеnuе, but whісh саn оnlу bе ассеѕѕеd аftеr рауmеnt іn саѕh.

Cаѕh fіnаnсіng аlѕо hеlрѕ ѕuѕtаіn a company’s growth.

Wоrkіng саріtаl fіnаnсіng аllоwѕ соmраnіеѕ tо іnvеѕt іn ѕhоrt-tеrm assets thаt hеlр thеm ореrаtе ѕuссеѕѕfullу. It helps rаіѕе саріtаl fоr рrераіd buѕіnеѕѕ expenses ѕuсh аѕ security deposits, lісеnѕеѕ, insurance policies аnd mоrе.

working capital funding іѕ uѕеd tо carry оut activities thаt саn іnсrеаѕе buѕіnеѕѕ ореrаtіоnѕ аnd bесоmе ѕuссеѕѕful, ѕuсh аѕ dеvеlорmеnt іn thе рrоduсtіоn unіt, continuous process аnd рrоduсt improvement, аnd market еxраnѕіоn.

Many people are already aware of the fact that accounting plays a vital role in any startup. You need to be very careful when dealing with accounting affairs as this can affect your business to a great deal. Many just pay attention to finding their website and getting a brand name but they pay very little attention to the numbers which actually matter in order to survive in this big market. If you will not pay attention to the finances and important accounting matters then you will be at a loss without even realizing. Small Business Administration has helped people by providing a list of reasons which will eventually result in their losses of several businesses out there.

Hiring small business accountants

Many people and other business owners think that they can handle the accounting by themselves. This option is a very great option if one holds an accounting degree or a solid background in this finance field. Otherwise, it will be suggested to get small business accountants for this cause. Before planning out your business strategies just question yourself whether you will be needing a bookkeeper or not.

Bookkeeper’s job

If you are wondering what is the task of bookkeeper and how one can affect your business then they are really vital in any startup situation. Why? Because they will make a complete sense out of complicated situations and help your startup to grow eventually into a great empire. If you are wondering that what they actually do when they are not only responsible for handling the financial transactions per table also keep a record of all the systems and other statements.

Accountant’s job

You must also get the help of an accountant as an accountant will provide you with a layout for the business. You can also choose to hire additional employees for a great impact on your overall structure. Many people go for part-timer because they are a great source of help when they have a limited budget. If you have a very small company then the cost of hiring a full-timer will be really expensive and it can cost you your whole budget so that is why many prefer freelancers. This is a great way of actually hiring people only when they are needed rather than paying them for full time.

Accounting methods

Many people are not yet aware that there are only two genuine methods for accounting which is cash accounting and other is accrual accounting. As far as choosing between the two is concerned and small businesses prefer to get accrual accounting rather than the cash one. You must get the help of any professional in the finance field to see the requirement of a business and whether you should go for cash method or the accrual one. If you are wondering that what is accrual method then it basically shows you a real-time account of the finances and with the help of all the packages it gives a true picture.

In today’s digital age and globalized world, long gone is the 9-5 business day that used to be standard for most workers. While today’s fluid work environment offers an incredible amount of flexibility and creative options for both employers and employees, at the same time, there is increased urgency, pressure and expectations that work get work done and delivered fast, at the highest quality and at the lowest cost.

Companies of all sizes need to be able to provide their clients with what they want and need quickly – because if not, someone else will. While large companies with deep resources may have on staff enough employees of a varied nature to satisfy client demands for quality, speed and cost, it is a bit trickier for smaller businesses with more limited resources.

Imagine a situation in which a client approaches your business with a lucrative project that requires a graphic designer who specifically has expertise in animation. Although this project is a great opportunity for the business, it probably doesn’t make sense to hire another graphic designer with these specific skills (when you already have a great designer on your team) and to invest in training and paying benefits when this is a one time project. At the same time, though, the small business owner does not want to turn down this opportunity.

What is a small business owner to do?

One practical and cost effective solution is to hire a freelancer or independent contractor. Although this may deviate from the way the small business is used to operating, there are some major benefits to be gained by hiring out.

Save Money

It is well known that oftentimes full time employees are not actually working all of those hours they are being paid for. On the other hand, freelancers only charge you for the hours they work so a business may end up spending less money for the same work, even when taking into consideration a higher hourly rate. Plus, there are great apps out there to help keep track of freelancers’ hours to guarantee that an hour worked is an hour paid. Some to check out include Toggl, RescueTime, Harvest, Hubstaff, Time Doctor and Timely.

Save On Time

If a freelancer accepts a job chances are he or she is highly motivated to get the project done on time and done well. Since most freelancers’ business model relies on repeat customers, freelancers can be counted on to get the job done promptly, maybe even before deadline.

Save On (Office) Space

Hiring a freelancer means you don’t need to find space for another person to sit in your already cramped office. Not needing to find a larger workspace means business owners will save money on rent. The freelancer will work from home, from the coffee shop, from another country – it doesn’t matter as long as the job gets completed.

Get More Experience

Experienced freelancers have done their time working with a variety of different companies and many come well equipped with a toolbox of eclectic skills that will benefit your company and impress your client.

Gain Access to Global Candidates

Hiring a freelancer allows you to transcend borders and timezones. They can work while you are sleeping and even on weekends, helping to speed up a project or free up time for salaried employees to work on other priorities during the workday.

Overall, hiring a freelancer can give your small business the advantages of motivation and fresh skills, while saving your business valuable resources – time and money being two critical resources that all small businesses owners are seeking to maximize.

One word of caution, however. Both employers and workers need to be clear on who, according to the law, is classified as a freelancer. Sometimes, there are situations in which employers may classify employees as independent contractors when in fact the law sees them as employees. If this is the case, these workers may be eligible to make claims for employee rights and benefits. To prevent any misunderstanding or legal issues down the line, it is best for a worker and employer to execute a written contract that defines the relationship prior to beginning any work.

Lee Madison writes about financial topics relevant to small business owners. She is director of content at Yellowstone Capital LLC.

Leveraging the power of the internet and technology is a great way to promote your business. After all, what could be an easier, cheaper way to gain access to an enormous chunk of the population? According to a report1 on internet usage and population statistics- June 30, 2018, internet penetration in North America was 95%. A growth of 219% was recorded in internet users over the period 2000- 2018. Clearly, using internet tools as a means to spread the word about you is sure to be an effective move. In fact, this might be the most effective tool you could use because the audience of today searches for vendors/ service providers/ businesses online before identifying one to go with.

That is not all, and most customers also research a service provider or business online to satisfy themselves about their credentials before they decide to go with them. This is where a webinar, in particular, plays a key role in helping you build your brand in the right way. As a consultant, you want to demonstrate to prospective clients that you are an expert in your chosen field and the best way to do this is by showcasing your knowledge on a platform that is easily accessible. A webinar is the perfect choice for achieving this objective if you use it in the right way.

How to make sure your webinar is an effective brand builder

• Address a challenge: Identify a common problem that prospective clients face in your niche and address it through your webinar. Remember that you are not here to give a comprehensive solution through this medium- just give enough information that could be helpful to the client, perhaps give them an idea of what could be a solution. However, your main agenda is to showcase that you know how to deal with the problem so that the prospective clients who watch the webinar think of you when they are looking for someone to help them with the problem. Think of your webinar as a teaser for your services.

• Maintain a professional stance: While it is necessary to appear approachable and friendly in your webinar, you also need to seem like a competent professional who is capable of delivering results. Maintaining complete professionalism during your webinar is very crucial, and that means you pay attention to your clothing, your body language, your gestures, the words you use, etc. When shooting your webinar imagine that you are talking face to face with a very valued client.

• Repeat the webinar: There is no guarantee that all the potential targets for your webinar are free when you air it and that means many might have missed it. Repeating the webinar on a regular basis is a great way to maximize audience coverage with this promotional tool. Remember to spread the word about the webinar airing time/ date well in advance every time you plan to repeat it so that those who are interested do accommodate it into their schedule.

• Collect the right data: Your webinar audience is clearly interested in your area of expertise. Invest efforts in collecting data like email ids or social media account details of each viewer so that you can later make them part of your email list or add them to your SNS groups so that you can continuously engage with them. Your webinar can bring you a primed group of prospective clients- don’t fail to leverage this asset.

Planning out your brand building strategies is one of the crucial steps you must take right when you set up your business, along with taking out the right kind of insurance to cover all risks, hiring the right employees, establishing a foolproof feedback system, etc. With the right panning in the initial stages, you have laid a solid foundation for success with your consultancy business.

Conclusion: Brand building becomes easy when you use internet tools like webinars to spread the word about yourself and your brand. You can achieve impressive results if you use these tools in the right way to communicate your message effectively.