Unsecured Start Up Loans For Small Business Is It A Good Idea?

First-time small business owners usually are chary of unsecured start up loans. This is because the time frame for making a profit is not definite whether or not there is a properly thought out and lucrative business plan in place for the future business.

When profits or revenues do not materialize per plans, as in most cases, there is danger of default on loan repayment. When this happens credit rating of the person involved gets degraded as unsecured loans are granted on the basis of credit and borrowing history of the business owner.

And if there is bad credit history behind, heshe can very well forget that small business loan. Lets discuss some more aspects of unsecured small business start up loans.

Some Facts

If the credit history of to be small business owner is good, unsecured start-up business loans are easier to avail as compared to other business loans. But it is better to go for secured loans against property or equipment affiliated with the business.

Secured loan not only keeps personal credit rating intact but poses lesser risks for the business owners, because they can use the hypothecated equipment to generate a profit for the business. As a result the loan can be paid back on time. Not just that, secured loans are for longer tenure and come with lesser interest rate burden, thereby lowering the cost of loan.

But if you have decided to apply for unsecured small business start-up loans, you should be careful about the requested amount. Remember, the more you owe on the loan (including interest), the more will be the money which you have to repay.

If you are not exactly sure how well the business will do in the first year and want to keep your credit rating good, it is best to request a small amount for your unsecured start-up business loan. This will make sure that repayment installments are small and if you are punctual in repaying, you can always ask for more, which will be gladly given.

Some Advice

Before you apply for an unsecured business start-up loan, there are several things that you should keep in mind.

First of all, you will need to convince the lender that it is a good decision to issue the loan to you. Since unsecured loans are based on your credit and repayment history, you will have to convince lenders that you can handle your personal finances in an organized fashion. Good credit record will put lenders at ease since they will be able to see your repayment history on your credit report.

Since lenders will be looking at your credit report, you should maintain a positive report as far as possible. If you know that you owe certain lenders, you should try to settle these debts or set up a payment plan with your creditors. This will be visible on your report.

Before you make any final decisions about unsecured start-up loans for business, be sure to speak to an accountant or a representative from your local bank. This will make sure that you are applying for the right loans which would help your business to develop quickly and steadily. You must not take a decision unless you are convinced.

So youre starting a small business. You figured out what you wanted to sell or do and went out and got it all set up, had your DBA framed and on the wall and now all you need is for someone to buy your product or use your service. Right?

How are you going to go about getting your public to know you even exist?

Promote! Promote! Promote!

Well that all sounds simple, but say youre a financial specialist, a boat builder or llama farmer. They probably didnt teach the basic principles of starting small business promotional campaigns in boat-builders school. So what do you need to know, and how do you go about it?

Lets start with the Basic Principles of promotion:

What is Promotion?

Promotion (promō′shun) n. Anything, as advertising, public appearances, etc., done to publicize (get the attention or interest of the public) a person, product, event, etc. The New Websters Concise Dictionary2003 Encyclopedic Edition

Why do you promote?

The purpose of promotion is to make sure people know you are in business. You promote because if you dont, you wont make it in business. You promote because it is communication that you need to engage in in order to survive. You promote in order to expand and get the attention or interest of the public for your products or services. You promote because if you dont, no one will know you exist and no one will buy from you andwell, you get the point.

How do you promote?

There are more ways than you would ever think. Have you ever heard someone say, I never promote and I am always busy OR I dont have to promote, all my business comes from word-of-mouth? They may not be aware of how theyre doing it, but I promise you they are promoting somewhere. Maybe they just go around telling everyone they talk to, that they dont promote. (Sound funny? Its still promoting.) Maybe their larger-than-life running water faucet in front of their store attracts so much attention that they dont need to do anything else. Well here are some ideas you can do knowingly to drive in the business.

Greeting your customers with a smile is a great place to start.

Calling your customers after they have had a chance to use your product is a good way to promote that you care about their experience with your organization. It can also create an opportunity to make more sales.

A neatly packaged product, the shipping label on straight, promotes that you take pride in what you do.

Always keep up-to-date brochures or catalogs about your business in your reception area for people to see and take with them.

If you have customers coming into your business, make sure they are greeted pleasantly, professionally, and immediately.

Anything that gets the attention or interest of the public for the company, its employees, its products or services (in a positive way) is promotion.
But how do you go about promoting to the masses?

Here is a story that could save you thousands of marketing and promotional pounds, as well as months or years of experience.

I was working as the Communications & Promotional Director in a medium size business. We were fortunate enough to have our own commercial printing press, that put out lots of very fancy letters, catalogs, brochures and other promotional items, and oh yes, envelopes to put them in. My full time pressman and his helpers, spent several days each week getting everything printed, cut, folded and sent over to the mailing house.

There, they had machines that automated all the stuffing, sorting, addressing and stamping. All in all everything was going very well. We were sending out about 40,000 pieces per week at a cost of about 10,800.00, and getting around 120 to 140 good leads per week. This generated an average of 2 new sales per week for a product that cost around 12,000, and re-sign income of around 45,000 more. We werent growing very fast, but we were making money.

THEN911 hit. ”

Suddenly, nobody wanted to open envelopes. Our leads were dropping to nothing. We were heading toward our own disaster like so many other companies did. I knew I needed to promote, but what good did it do if nobody read it!

I was talking to the owner of the mailing house and he suggested the use of POSTCARDS instead of letters. So we decided to give it a try. Unfortunately, I had much less money to allocate towards promotion, so I started by sending about 20,000 postcards weekly. The total cost-per-piece, needing only one day on the presses, half the labor at the mail house and a substantial decrease in postage, was reduced by about 60%.

What was the result? Try 120 to 140 leads per week!

Why?

You don’t have to open a post card!

You see it right away, the bright picture is not hidden from view by an envelope.

The message leaps right out and you can’t ignore it or throw it in the trash unopened (the fate of many bulk mail pieces).

Postcards are the best medium to reach new customers when starting a small business promotional campaign.

In today’s high tech world, it no longer has to take extensive amounts of time to start a small business. Many of the business startup steps can be handled quickly via the Internet, including the ability to incorporate online, apply for a tax ID number, and apply for a small business loan.

Incorporation
To begin with, it is beneficial to incorporate your small business for many reasons. The main advantage is the protection of personal assets that is offered. Under this setup, business owners property cannot be a target of lawsuits or creditors. Also, corporations are taxed at a lower rate and credit ratings are established for the corporation, not based on the individuals rating.

There are websites that offer secure application forms for incorporating your business in as little as 10 minutes. The information you will typically need in order to complete the form are the state you are incorporating in and what type of corporation you will be establishing (e.g. Basic Corporation, S-corp, or LLC).

Tax ID Number
Next it is necessary for new business owners to apply for a Tax ID number, also known as EIN (employer identification number). This is the nine digit number that is assigned by the Internal Revenue Service (IRS) to any type of business entity (corporation, sole proprietorship, partnership, etc.). The Tax ID number is used for tax filing, business, and banking purposes, as well as for the identification of your business by various federal agencies. Again, this is a quick process online it can be done in about 5 minutes.

Small Business Loan
If you need funding for your small business, you will want to consider applying for a small business loan online. The process is simple and quick. For this type of loan, there is not usually extensive documentation required and reputable firms do not charge application fees. Also, you can typically find out if you qualify for an unsecured loan (no collateral) or a line of credit usually within a day or two. If you do not want to risk your personal assets and are in the market for a funding between 10,000 and 100,000, this is the avenue to take. It is however important that you have a good credit history and also be sure to apply with a trustworthy company.

Conclusion
All in all not only are these processes simple and quick, but they greatly reduce since margin of error since you are filling out your applications directly online.

You have been thinking about it for a long time! That perfect business idea has been incubating in your mind and you just want to let it out. No capital? All you need is a small business loan to get you started on the road to success. Its easy. Small business loans for woman especially in the minority sector are gaining importance today. Women own 38% of businesses in the United States. Our economy is finally opening up to providing woman with adequate venture capital to start a business. Finding venture capital is very important. But finding it from the right source is even more important. Today there are different institutions that provide small business loans for women. Wondering where to start? Let us be your guide into identifying small business loans for women.

The government offers small business loans for women, minorities and start-ups.

U.S. Small Business Administration or the SBA offers small business loan programs for women who may not be offered business loans by other institutions. A small one-page application can get you a loan to the extent of 150,000 and to be eligible you need to be a woman, a minority group, or a veteran. Preference is given for woman from low and middle-income groups. Such small business loans for woman have been instrumental in providing start-up capital to many industrialists.

CAPLines offer five different kinds of loans especially for the construction of a commercial establishment. These are short-term working capital loan programs tailor made for women wanting business loans. Women can take a small business loan up to 200,000.

Government business loans for women can also take the form of 504 loans, Defense loan and Technical loans, Physical disaster business loans, Community Adjustment and Investment, Export Working Capital Program and International Trade Loan, all provided by the government.

Small business loans for woman can also be sourced from Womens Business Grants. This specialized organization offers small business loans specifically for women to support new and existing businesses. They have two programs namely the New Business Grant and the Existing Business Grant. The New Business Grant can get you a loan of 100 to 5000 and the Existing Business Grant ranges from 1000 to 5000. So the next time you need to expand your infrastructure or fund a new product, you know where to look.

Small business loans for women and women minority groups are not that difficult to find anymore. There are several well-reputed firms offering to provide small business loans for women apart from government small loans that are most popular today. So just go ahead and dream big! It could be a reality some day!

The best advice for small business owners today is to establish an online presence. It doesnt matter if your company consists of fifty people or just two, having a website is valuable to companies of all sizes. As ecommerce becomes a more important part of company sales, businesses that do not have a website will be losing out on both customers and revenue. Fortunately it is not too difficult to design a company website for your products and services. Unlike in the past, today there are many valuable web builder tools that allow users of all skill levels to design their own site. Many companies offering these products will often let customers test drive their web builder tools before actually committing to a purchase. This gives you the chance to become comfortable with the tools and see how they can help you in designing your site. You then have the option of signing up for a paid subscription of your choice.

A website is a good idea even for companies that are doing well without the help of online sales. In todays highly technical world, companies that do not have a website may be viewed as outdated or unprofessional. This is especially true when you consider the age group of your potential customers. Younger adults who have grown up using computers are much more likely to order from a company that offers their products online. There arent too many companies today that would tell you they couldnt benefit from additional sales. Web builder tools allow small business owners the opportunity to make their company products available to customers of all ages across the globe.

If your business frequently deals with customers from other countries, you know what a hassle it can be making contact because of the different time zones. A website allows you to make sales from anywhere in the world 24 hours a day, seven days a week. Even while you are not at work, your business can be earning sales via your website. Once your business develops an online presence, you may find the majority of sales are made online. Using web builder tools to design your site just makes good sense. Its both fast and efficient and can increase your sales earnings in just a short time.

Web builder tools not only save you time and money designing your site but can also save time and effort when dealing with customers. Think about all the calls you or your employees answer regarding products, services, or payment plans accepted. With a website, you can offer all of this information to customers at the ease of their fingertips. Theres no need for them to contact you when all of the information is provided online. This not only is convenient for both you and the customer but it also increases your chances of making a sale. Many times customers may not want to bother emailing or phoning for more information. If they cannot find what they are looking for, they may go else where to another company that offers the product or service they are looking for. Web builder tools allow you to effectively design a site that contains information about all of your products, company background, and payment methods accepted. This can be a valuable resource in gaining additional customers.

Even if your company sells a variety of different products, there are web builder packages available to meet your needs. You can choose from a variety of different products and package sizes, many of which include web hosting, domain name, blog design tools, photo image editing tools, shopping carts, email accounts, and various design templates. Options can also be upgraded or added when needed. With all of the flexibility offered, web builder tools can benefit all types of businesses in designing their website.

As it becomes easier and more convenient to bank online, small-business owners are increasingly turning to Internet banks to alleviate some of their financial headaches.

Internet-based banks like NetBank are giving traditional banks some fierce competition as more small businesses make the shift to online banking.

“We are extremely pleased with the success of our small-business banking initiative,” said Douglas K. Freeman, chairman and chief executive officer of NetBank Inc. “More and more, small businesses are embracing the Internet and using it to do business better, faster, cheaper.”

Some of the ways in which NetBank makes it easy for small businesses to bank online include providing dedicated relationship managers to each of its clients; a dedicated customer care unit trained to handle the customer’s small-business needs; enhanced account administration features allowing multiple users with different access levels; and a remote deposit system that allows customers to deposit checks into their accounts without leaving the office.

“Small business banking is a natural extension of our services and it represents an excellent growth opportunity for us,” said Bert Davis, director of small business banking for NetBank. “We can provide tremendous value from both a customer service and pricing standpoint, and that’s not something a large number of small-business customers are finding today.”

In addition, NetBank has teamed with Wall Financial Services to provide Web-based accounts receivable lines of credit.

NetBank is also working with MBNA to issue no annual-fee credit cards with a credit line of up to 100,000, while forming a partnership with CompuPay to offer specialized payroll services for small businesses.

Indeed, banking online has streamlined virtually every banking task facing a small-business owner.

“Our own research shows that small-business owners across the country say the Internet is either somewhat important or very important to their business,” Freeman said.

In todays economy, small businesses play an important role. These days, it is easier than it ever has been to start a new small business. There are all kinds of new businesses popping up all over the United States, from department stores to gas stations. With new businesses on the rise, the owners should be looking into small business credit cards – for numerous reasons.

The best reason to get a small business credit card is for separating your personal finances from any business related finances. Once you have a small business credit card, you can start making all of your purchases via Internet, phone, or in person. Business credit cards are accepted virtually everywhere, which is great for those who need equipment or supplies in a hurry.

If you own a small business, youve probably experimented with using your personal cash for company purposes. This can get ugly in a hurry, which is why you should invest in a credit card for your small business. You can make purchases without having to worry about cash, then pay it back later. You wont need to keep track of everything either – as you statement will be mailed to you at the end of the month, letting you know exactly how much you spent.

A small business credit card is also a great way to establish some credibility with your business as well. When you pay with your credit card, it looks a lot more professional than using cash to make your purchases. It will gain the respect of financial companies, and help your business build some credit as well. After you have had a credit card in good standing for a few months, youll be able to apply for a small business loan and get the best rates – along with the higher amounts.

Even though your business may not have a 6 figure income or budget, small business credit cards can still help your business grow and prosper. Credit cards are always great to have, simply for the fact that you never know when you need money. Your office equipment may crash and need replacing, or another emergency may come up. If you dont have a credit card for your business, the financing alone could shatter your daily operations.

Small business credit cards will also give you plenty of rewards as well. Most cards will give you cash aback and certain rewards on just about anything you purchase. From gas to equipment, you can get rewards simply for using your credit card. You can increase your profit margin as well, which is always a great thing. If you have other workers who are authorized to use your credit card, youll get more rewards – and much faster as well. This is also easier on your business, as your workers will be able to get what they need, when they need it.

All in all, small business credit cards are always great to have around. They will provide your business with rewards and convenience, eliminating the need to use cash with each purchase you make. These cards will also protect the future of your business, and allow it to grow. If you own a small business, you shouldnt hesitate to look into these credit cards. Once you have found the best credit card for your company, you shouldnt hesitate to apply. Credit cards are always great to have around – even if your business is just getting started. Before you know it, your small business credit cards will more than pay for themselves.

You can find the best choice of credit cards and pre-paid cards at www.CreditCards.us (http://www.creditcards.us)

Are you a small business owner who runs an online business? If you are, are you currently satisfied with your businesss profits? Even if you are happy with the money that you are currently making, you may be looking to make even more. If you are, you may want to examine the marketing tactics that you are using, if you are even marketing your business at all.

When it comes to marketing an online business, you will often find that it is easier to market an online business than it is a storefront business. One of the reasons for that is because of the internet. There are a number of different ways that the internet can help you with the marketing of your online business. A few of those ways are briefly touched on below.

One of the many ways that you can go about marketing your business online is by using online message boards, which are also commonly referred to as online forums. Online message boards or online forums are communities where internet users are able to come together and discuss activities or interests they may share. There are many online message boards or forums that allow participating members to have what is referred to as a signature. A signature is a block of print that always appears at the end of a members posts. It is not uncommon for an online message board moderator to allow signatures to include business links, like a link to your online store or online website. With using online message boards or forums, the more you post the more exposure your online store gets.

Another way that you can market your small online business is by joining a pay per click advertising program, like Google Adwords. What is nice about pay per click advertising programs is that, just as the name sounds, you only have to pay when one of your advertisements gets clicked on. This type of advertising arrangement may be able to save you a considerable about of money, when compared to paying a flat rate fee for an advertisement that may never even be seen, let alone clicked on. Also, by doing business with a well-known pay per click advertising program, like Google Adwords, you are less likely to experience problems associated with malicious clicks, as the programs tend to be carefully monitored, to ensure that you don t end up wasting money on the marketing for your small business.

In addition to paying for advertising, you may also be able to get free advertising by doing what is known as a link exchange. A link exchange is when one website owner, like you, agrees to display the online website link or banner for another website owner, free of charge, as long as they do the same for you. If you are looking for free or low-cost ways to market your small online business, a link exchange may be the perfect option for you. The only thing that you want to make sure you do is not exchange links with your competition. You want to try and make sure that all links can be connected or related to each other, in one way or another, but you dont want to end up generating income for your competition.

When it comes to running a small online business, standard internet searches may also pay a large role in the traffic that you and your website receives. That is why it is important that your website, whether it is used to sell products or services, is optimized for the search engines. This process is commonly referred to as search engine optimization. When it comes to search engine optimization, content is important. Your website needs to be filled with content that the search engines will pick up, as well as content that your visitors can read. If you need assistance with this, you may want to think about hiring the services of a SEO specialist or a professional content writer.

The above mentioned marketing approaches are just a few of the many that you may want to use to help increase your small online businesss profits. For the best chance of success, you are advised to implement more than just one of the above mentioned approaches.

Small business is one that is organized for profit and also contributes to the economy by way of paying taxes and employment opportunities. A small business may be defined as a business with a small number of employees. The legal definition of small business often varies by country and industry, but is generally under 100 employees. These businesses are normally privately owned corporations, partnerships, or sole proprietorships.

Whether the business is small or big, it needs fund to carry on its operation, because the returns in business are not stable. Sometimes the company or a firm can have huge profits; at times, it can have losses too. Nevertheless, in the period of financial depression, every business needs a financial help to support in its working.

On comparing small business with big business we find that the need of funds more often arises in the former case as the returns are not constant. Financial crisis in the company can affect the working adversely. Therefore, to stop the effect of this financial crisis a small business can rely on loan for assisting them in need of funds. Small business loan helps them to come out of this situation of crisis. Small business loan can also be used for starting a new venture.

Although small business firms are considered backbone of the economy, but getting a loan for small business firm is not an easy task. Lenders think number of times before lending a loan to the borrower as risk involved in small business is huge. It involves numerous formalities such as giving proof of income that depicts your creditability. Your credit history also plays a crucial role in it. The person with good credit history is always benefited in applying for a loan.

The most important factor that the small business owner should consider before going for a loan is flexibility in repayment. As most small businesses would experience irregular income for some period, so the flexible payment will help in making those repayments easier.

There is also an increase in the number of sources available for funding the small business. Traditional lenders like banks and financial institution also provide loans. In addition to that, loan can also be applied online, which also provides you three benefits

Fast : you have to just fill a form and get an instant match
Easier : it makes comparison easier between various lenders available in the market
Flexible: choose the lender which suits your needs.

The rate of interest charged in small business loans is generally higher since there is threat to the lender about non-payment of installment on time. Therefore, one can trust small business loans for their dream project.