Home Blog Page 4

How to Apply for and Get a Business Loan in 8 Steps

By
1_healthytip
-
0
How to Apply for and Get a Business Loan in 8 Steps

Obtaining a small business loan can be overwhelming, but with proper preparation and these eight simple steps, you’ll be one step closer to getting the capital you need to achieve your business goals and grow.

How to apply for and get a business loan

1. Understand your small business’s needs.

How you plan to use your loan and the loan amount you need will often dictate which type of loan you qualify for. Different loan types will also have different payback periods, ranging from months to years. Doing your research and identifying the best business loan for your situation will improve your chances of qualifying for a loan.

How will you use the funding?

Common use cases for a business loan include:

  • Purchasing equipment
  • Working capital
  • Purchasing property
  • Refinancing a current loan
  • Business expansion
  • Cover payroll
  • Purchase a business/franchise
  • Buy out a partner

How much money do you need?

It’s important to borrow an amount that helps you achieve your goals while not stretching your business too thin with repayment. The amount of money available will vary based on the lender and loan type, so have this number honed down before going further into the research process.

How long do you need the loan?

Unlike a home mortgage, business financing comes with multiple term length options. A business line of credit, for example, provides a pool of funds you can draw on and then pay back in daily, weekly, or monthly periods depending on the financing agreement. A term loan period can span from six months to 10 years while an SBA 504 loan can be paid back over 20 years.

2. Look into eligibility requirements.

Business loan requirements will vary by lender and loan type. Some of the most common factors lenders look at include the following.

Credit score – As part of the process, the lender will pull your credit report to assess your business’s financial health. Depending on the type of loan, minimum credit requirements start in the 500s or 600s. If you’ve been in business for some time, a lender may also look at your business’ credit report. If you haven’t checked your business credit score before, check out this guide to learn more.

Time in business – While a few lenders work with brand-new businesses, most will want to see a track record of a healthy business before providing a loan.

Annual revenue – Again, the annual revenue a lender will look for will vary considerably, but a $100,000 minimum annual revenue is a good rule of thumb.

Collateral/personal guarantee – Many lenders will ask for collateral and/or a personal guarantee from the business owner to help secure the loan. This could be something of value the business owns (Ex: equipment) or a personal item (Ex: your home).

Ready to get the capital you need?

Take 15 minutes to find out what you qualify for from 75+ lenders.

3. Compare types of business loans

There are many types of business loans to help small businesses in need. Many serve different purposes, so it’s critical to understand what type of loan would be best for your company. There are both secured and unsecured loans available for businesses. (Note: a secured loan is one backed by business collateral.)

Loan Type Definition Common use case Loan Amount Time to Fund
Term loan Loans that provide a lump sum repaid in monthly payments over a set term. Business growth and expansion $5k -$2M As soon as 24 hours
Equipment loans A loan specifically for the purchasing or leasing of new equipment. Cover the cost of equipment over time $5k-$5M As soon as 24 hours
SBA 7(a) Term loans or lines of credit partially guaranteed by the U.S. Small Business Administration (SBA) Working capital, debt refinancing, or purchasing business assets Up to $5M As soon as less than 30 days
SBA 504 Term loans used for asset purchases partially guaranteed by the U.S. Small Business Administration (SBA) Fixed assets such as land, a building or machinery Up to $5M 4-8 weeks
SBA Microloan Small loans partially guaranteed by the U.S. Small Business Administration (SBA). Working capital or to purchase inventory and equipment Up to $50K 2-4 weeks
Business cash advances An advance based on projected future income. Short-term needs such as seasonal slow periods or upfront costs. $5K-$2M As soon as 24 hours
Invoice financing An advance on the money due from customers with outstanding invoices. Cover operating costs  Up to $10M As soon as 24 hours
Line of credit Like a credit card, borrowers can draw up to a certain credit limit that replenishes as the debt is repaid. Cover day-to-day expenses as needed. $1K-$250K As soon as 24 hours
Commercial mortgage A mortgage secured by a lien on your commercial property. Purchase or update property. $250K-$5M 8-12 weeks

4. Explore available lenders.

Next, you’ll want to find a lender that offers the type of loan you need. There are multiple types of lenders to consider.

Banks and credit unions

Most banks and credit unions offer small business loans. Some will only offer SBA loans while others will offer term loans, equipment financing, lines of credit, and invoice factoring. In general, banks will have more stringent requirements and longer underwriting processes.

Online lenders

Online lenders offer more flexibility than a traditional bank loan. They provide a full range of loan products, some specializing in invoice financing or business cash advances, and others offering multiple product options. Note, that the pool of non-bank lenders offering SBA loans is tiny but is starting to grow since a recent rule change from the SBA.

These lenders will have different approval standards, which may increase your chances of approval. Online lenders can also approve your business loan application and distribute your money faster than a traditional lender. 

Microlenders

If you’re worried about your odds of approval because of your credit or if your business is new, a microlender may be a good option. These loans often have shorter terms and can provide funds up to $50,000. 

Government lenders

The United States Department of Agriculture (USDA) offers loan programs specially tailored for businesses operating in rural areas. The USDA provides these loans to develop and expand rural businesses, especially those pivotal in promoting local economies and fostering growth in these regions. Eligibility hinges upon a business’s location and contribution to the rural community. 

SBA lenders

SBA lenders provide loans partially guaranteed by the U.S. Small Business Administration, reducing the risk for the lenders and increasing the likelihood of loan approval for small businesses. SBA loans often come with competitive interest rates and lower down payments, making them an attractive option. 

There are two categories of SBA lenders. SBA-preferred lenders can process SBA loans faster since they have final credit approval and don’t have to send the application to the SBA for review. Other SBA lenders will take longer to process the loan since they must seek final SBA approval.

5. Gather documentation

Lenders will look at your credit report to see your payment history. Next, they’ll consider your company’s revenue and other financial indicators to determine if you can repay the loan. 

Important documents that lenders will want to see include: 

  • Three to six months of business bank statements 
  • A copy of your driver’s license or state ID
  • Voided check from your business account
  • Proof of business ownership
  • Month-to-date transactions
  • Tax returns
  • Business bank statements
  • Business plan
  • Profit and loss statement
  • Business license

You’ll also be asked to provide:

  • The amount of money you want to borrow
  • Your business start date and some general information about your business
  • Your birthday and your Social Security number

6. Apply for a business loan.

So you’ve prepared all your information and know how to get a business loan—now it’s time to apply. Online lenders will offer an online application with varying amounts of human support and interaction. Banks are more likely to take a hybrid approach with some applications completed online and others will require a meeting with a banker. 

7. Review your offers

Through Lendio’s online application, we’ll match you across a network of 75+ lenders and present you with offers you qualify for. Key factors to consider when reviewing an offer:

Total cost: Many first-time borrowers are surprised by the interest rate or funding fee. Rather than comparing the rate to a home mortgage APR, look at the total cost of the loan. Business loans are repaid over a shorter period leading to higher interest rates but not necessarily a larger total cost.

Repayment schedule: Business financing can come with many different repayment schedules including daily, weekly, and monthly.

Prepayment penalties OR discounts: Some lenders charge a prepayment penalty if you pay off the loan early while others will offer a discount on the remaining unpaid interest.

Balloon payments: While some loans will be repaid in equal installments until they’re paid in full, others will have a lower installment followed by a larger final payment at the end of the term.

Payment amount: While lenders only approve a payment they believe is sustainable, be sure to review the amount to make sure you’re comfortable with it.

8. Complete the loan agreement.

Once you’ve decided which offer you want to take, you’ll review and sign the business loan agreement. Double-check the details in the agreement including the proposed financing amount, term length, total cost, and conditions on collateral.

Tips to increase your chances of getting approved for a business loan.

When looking for a business loan, there are several ways to improve your chances of approval. Here are some tips to keep in mind:

Improve your credit score.

A high credit score greatly increases your chances of loan approval. Make sure to pay bills and debts on time, maintain low balances on your credit cards, and avoid taking on unnecessary debt. Regularly check your credit report to ensure all details are accurate.

Prepare a solid business plan.

A well-thought-out business plan can impress lenders by demonstrating your commitment and understanding of your business. Include detailed financial projections to show that you can repay the loan.

Build strong cash flow.

Lenders look for businesses that have a consistent and strong cash flow. If your business generates regular income and maintains good cash reserves, it demonstrates to lenders that you can repay the loan.

Offer collateral

Loans backed by collateral are less risky from the lender’s perspective. If it’s possible for your business, offering collateral may improve your chances of approval.

Maintain a healthy debt-to-income ratio.

A low debt-to-income ratio indicates that your business earns enough to manage current debts and take on additional debt. Paying off existing debts before applying for a new loan can help improve this ratio.

Build a relationship with your lender.

Establishing a relationship with your lender before applying for a loan can be beneficial. Regular communication and understanding their loan products, terms, and conditions can give you an edge during the application process.

Establish an LLC

While you’re not required to establish your business as an LLC, lenders generally prefer to work with LLCs over other business entities. Creating an LLC fully separates the business’s finances from your personal finances and allows you to create a bank account in the business’s name.

Create a business bank account

A business bank account creates a clear and separate record of your business’s finances that lenders can evaluate. Also, many loan applications offer the option to connect your bank account directly for a faster underwriting process.

Alternatives to small business loans.

While small business loans can be a great way to secure funding for your business, they’re not the only option out there. If you’re unable to secure a loan—or if you’re looking for alternative financing methods—consider the following avenues:

Crowdfunding – Platforms such as Kickstarter and Indiegogo allow you to raise money from many people. This can be a good option if you have a unique product or service that can capture public interest.

Venture capitalists (VCs) – VCs are individuals or firms that provide capital to startups in exchange for equity. This can be a major funding source, especially for high-growth potential businesses.

Angel investors – Similar to VCs, angel investors provide capital in return for equity. However, angels are typically individuals and may be more willing to invest in early-stage businesses.

Grants – Several government and private organizations offer grants to small businesses. Grants are free money you don’t have to pay back, but competition for them can be intense.

Business credit cards – Small business owners can use business credit cards for smaller, day-to-day expenses.

FAQs


Yes, it is possible to get a business loan without collateral, although it might be more challenging. Unsecured business lines of credit and certain types of SBA loans do not require collateral. However, keep in mind that these types of loans may have higher interest rates or require a personal guarantee. It’s always best to thoroughly research your options and seek advice based on your specific situation.


The credit score required for a business loan varies significantly depending on the lender and the type of loan. Traditionally, banks and credit unions look for higher credit scores, usually in the 680 to 700 range. However, online lenders, microlenders, and other alternative lending sources may approve business loans for borrowers with credit scores in the mid-600s. Some lenders may even approve applicants with credit scores as low as 500, but these loans typically come with higher interest rates. Always remember, a higher credit score not only increases your chances of approval but can also secure better terms and lower interest rates.

Quickly compare loan offers from multiple lenders.

Applying is free and won’t impact your credit.

Information provided on this blog is for educational purposes only, and is not intended to be business, legal, tax, or accounting advice. The views and opinions expressed in this blog are those of the authors and do not necessarily reflect the official policy or position of Lendio. While Lendio strives to keep its content up-to-date, it is only accurate as of the date posted. Offers or trends may expire, or may no longer be relevant.

CapitalRise CEO Uma Rajah on navigating London’s fintech scene

By
1_healthytip
-
0
CapitalRise CEO Uma Rajah on navigating London’s fintech scene

CapitalRise offers investors access to prime real estate investing opportunities. With tax-free returns available through its Innovate Finance ISA, these investments fund some of the finest real estate projects across London and the South East.

This interview with CapitalRise’s CEO, Uma Rajah, was originally published in City A.M. as part of the ‘Square Mile and Me’ series.

What was your first job?

My first job was a summer job during my first year of university. I was studying engineering at Cambridge and needed some relevant work experience as part of my course. I spent the holiday working for Jaguar in the Midlands at the body plant where they manufactured and painted car bodies and where I learnt to spot weld!

What was your first role in business?

My first role in business was as a graduate when I joined Mars (the confectionery company) on their management training programme. I was really fortunate so early in my career to be able to work with some amazing brands and fantastic people and be lucky enough to have benefitted from some excellent training. I often found myself dropped in at the deep end, being given very early responsibility. It was a great way to learn quickly.

I had the opportunity to manage large teams, run a manufacturing plant as well as research, design and launch new products for household brands like Celebrations. It was a fantastic training ground for the first decade of my career.

When did you know you wanted to build a career in business?

Whilst at Mars I realised that my passion was in designing and launching new products to meet consumer needs. However, despite its name, I found the pace of change in the fast-moving consumer goods industry frustratingly slow. Products can take years to get from the idea stage to launching in the market, so I decided to make a career change into a new, faster paced, and more entrepreneurial field after taking a year out to get an MBA from INSEAD business school.

Since 2007 I have worked in the fintech space. I quickly learned that I enjoy finding opportunities to use technology to disrupt traditional ways of investing. For example, at CapitalRise our online platform enables eligible high-net-worth investors to access prime real estate debt, an investment asset class that was historically only accessible to large institutional investors with millions to invest.

Are you optimistic for the year ahead?

I’m very optimistic about the year ahead. 2023 was a challenging year for our industry, with build costs inflating and rapidly rising interest rates making it harder for property developers to make their deals stack. We had to work a lot harder to grow the business in that environment, but the start of this year was very different. We began to see a real change as interest rates started to stabilise and the forecast became
more favourable.

In July 2024, we had a record-breaking month in terms of both new lending and investment volumes, illustrating the change of sentiment in our industry which we expect to remain positive as we move into 2025. We also take comfort from the fact that we focus on a specialist niche within the wider property market that is renowned for its resilience as it has very different dynamics.

CapitalRise CEO Uma Rajah on navigating London’s fintech scene
14 Eaton Square, Belgravia. A projected funded by CapitalRise investors.

What’s been your proudest moment?

Winning an award for CapitalRise at the British Bank Awards for the fifth year in a row was one of my proudest moments this year. It is an award that is based on customer feedback, so knowing that our customers are so happy with the products and services we offer that they are happy to take the time out to write us glowing reviews is incredibly heartwarming and humbling.

And one thing you would change?

I would improve diversity, particularly in the sectors I work in. Our business sits at the centre of three industry sectors: finance, technology and property. Each of these areas has a reputation for lacking in diversity in nearly every dimension. Whilst progress has been made and I have seen a lot of improvements during my working career, there is still a long way to go.

It’s an issue I’m passionate about, and when building my team at CapitalRise I have been very conscious of trying to build as much diversity into the team as I can. But it can be hard to attract diverse talent into an industry where they may not see people like themselves well represented.

What’s one thing you love about London?

I was born in the Midlands, but definitely feel London is my home, and working as I do in real estate finance with a specialist focus on prime London and the home counties, I am regularly reminded of the many aspects that make London so special.

It is hard to pick just one thing I love about the place. We have lent against over £1bn of real estate since our inception with the majority of our loan book in prime central London, including locations such as Mayfair, Belgravia, Kensington and Chelsea. I think one of the things I love the most is the variety of gorgeous areas we are surrounded by, from the leafy garden squares, the stunning listed buildings steeped in history, the Royal Parks and the vibrant workplaces. We are thoroughly spoilt for choice. Whatever you are interested in, from culture, sport, food to nightlife, London has it all.

As a global financial and tech hub, it also offers so much opportunity for growth and innovation. The city’s dynamic business landscape makes it the perfect place to build a successful venture, with endless potential for those ready to seize it.

Who do you look up to?

My parents have always been my role models. I watched my mum with awe as she juggled her career as a GP running a busy medical practice with running the family and bringing us up. My father, also a doctor, had numerous jobs when we were growing up and ran a number of small businesses over the years alongside his medical practice. Their work ethic continues to inspire me, although I don’t intend to follow in their footsteps and retire in my eighties!

Uma Rajah, Co-Founder and CEO of CapitalRise

We’re going for lunch, and you’re picking – where are we going?

If you fancy pizza, I am taking you to Japes in Soho.

And if we’re grabbing a drink after work?

Come over to The Starman on a Thursday and I can introduce you to my team.

Where’s home during the week?

I’m proud to work and live in London. Golders Green is home – I love the rich cultural mix and the huge variety of cuisines on our doorstep.

And where might we find you at the weekend?

Outside of work my family is my top priority – on weekends, you’ll find me spending quality time with my wonderful husband and lovely children aged 15 and 12, enjoying being a North Londoner on
Hampstead Heath, Primrose Hill or Kenwood House.

You’ve got a well-deserved two weeks off. Where are you going and who with?  

If I had two weeks off, I’d probably spend it travelling with my family. This year, I had the chance to take my children and husband to Sri Lanka for the first time to show them where my parents grew up. I would love to go back again soon and show them more of the country.

When to Hire a Disability Advocate

By
1_healthytip
-
0

If you’ve recently been injured in an accident or you’ve become disabled in a way that you’re unable to work, you’re entitled to file for a Social Security Disability claim. It’s likely that you’ve never gone through the process before, so the first time doing so may seem a little intimidating. In order to take advantage of programs like the Ticket to Work Program, the Social Security Administration may assist you in making a claim, but you could probably use some outside help. Here are some reasons you may want to hire a disability advocate to assist you with your claim.

Filing a Claim

The application process for a disability claim is a complicated one that you don’t want to leave to chance. A disability advocate (or disability attorney) is very familiar with the process, so they can ensure that the application is filled out correctly. By filing the initial claim accurately, they can help maximize your claim while minimizing the wait time. A skilled attorney will also know what to expect from the SSA, so they’ll be sure that all the necessary documentation is clear and up-to-date, making it less likely that your claim with either be denied or delayed.

Preparing for Appeals

Unfortunately, most claims are initially denied. This can be frustrating and worrisome — especially for those who lack representation, as the appeals process often cannot be avoided if you’re going to receive the disability benefits to which you are entitled. If you’re unable to work or wish to enroll in the Social Security Administration Ticket to Work Program, you may have to go through several appeals before being approved for disability benefits. An advocate is prepared for this eventuality. Having an experienced attorney working with you throughout the appeals process can mean the difference between approval and denial.

Assembling Evidence

For the approval of your claim to occur, you may need to present evidence to the SSA. Depending on your disability, you might have to get medical records from several doctors and hospitals, and you might even require witnesses at your hearing. Managing all of these different factors would be difficult for anyone but may be especially hard on someone who has recently become disabled. An advocate can communicate with all of the different doctors and witnesses for you and will know how to best make a convincing case for you to receive benefits.

Representation at the Hearing

If a hearing becomes necessary, you shouldn’t have to represent yourself. Your advocate will be there when you go before a judge, and they can prepare you for the kinds of questions you’ll have to answer. Furthermore, your advocate will know all the relevant information, enabling them to ask you the most pertinent questions at the hearing so that your testimony is as persuasive as possible. Should a vocational or medical expert be helpful at the hearing, your advocate will know how to cross-examine them so that your case appears in the best light. A disability attorney has years of experience and training at their disposal to put you in the best possible position for success.

Once you’ve succeeded in your efforts to receive disability benefits, and are ready to reenter the workplace through the Social Security Ticket to Work program, contact DisABLEd Workers. We’re committed to helping people just like you reach their employment goals. Call us today at (877) 291-9806.

5 Effective Tax Saving Strategies for Your Financial Success

By
1_healthytip
-
0
5 Effective Tax Saving Strategies for Your Financial Success

Taxes are an inevitable part of life, but with careful planning and smart strategies, you can minimize your tax liability and maximize your wealth. In this guide, we’ll explore various tax saving options, schemes, and investments that can help you optimize your finances and achieve your financial goals.

How To Save Tax: Understanding Your Tax Saving Options

  1. Tax Saving Investments:

One of the most effective ways to save tax is by investing in tax saving instruments such as Equity Linked Savings Schemes (ELSS), Public Provident Fund (PPF), National Savings Certificate (NSC), and tax saving fixed deposits (FDs). These investments offer tax benefits under Section 80C of the Income Tax Act, allowing you to claim deductions on your taxable income.

  1. Tax Saving Schemes:

Government-backed tax saving schemes like the Employees’ Provident Fund (EPF), National Pension System (NPS), and Sukanya Samriddhi Yojana (SSY) offer attractive tax benefits while helping you build long-term wealth. By contributing to these schemes, you not only save tax but also secure your financial future.

  1. Tax Saving Strategies for High Income:

For individuals with high incomes, tax planning becomes even more critical. Strategies such as income splitting, where income is distributed among family members in lower tax brackets, can help reduce the overall tax burden. Additionally, investing in tax-efficient instruments like Unit Linked Insurance Plans (ULIPs) and Real Estate Investment Trusts (REITs) can provide tax benefits while generating returns.

  1. Tax Saving on Salary:

Employees can avail tax saving benefits on their salary through components like House Rent Allowance (HRA), Leave Travel Allowance (LTA), and reimbursements for medical expenses. By optimizing these components and investing in tax saving instruments like the Employee Provident Fund (EPF) and National Pension System (NPS), individuals can significantly reduce their tax liability.

  1. Tax Planning:

Effective tax planning is essential for optimizing your tax saving efforts. By carefully evaluating your financial situation, understanding tax laws, and leveraging available deductions and exemptions, you can create a customized tax saving strategy that aligns with your financial goals. Regular review and adjustment of your tax plan are also crucial to ensure it remains effective as your financial circumstances change.

5 Effective Tax Saving Strategies for Your Financial Success

Best Tax Saving Investments: Making Informed Choices

When it comes to tax saving investments, it’s essential to choose options that not only offer tax benefits but also align with your risk tolerance, investment horizon, and financial objectives. While traditional instruments like PPF and NSC offer fixed returns with low risk, ELSS funds provide the potential for higher returns over the long term, albeit with higher market risk.

Additionally, diversifying your tax saving portfolio across different asset classes such as equities, debt, and real estate can help spread risk and optimize returns. Consulting with a financial advisor can also provide valuable insights and guidance in selecting the best tax saving investments based on your individual circumstances.

Conclusion

Saving tax is not just about minimizing your tax liability; it’s about optimizing your finances to achieve long-term wealth creation and financial security. By leveraging tax saving options, schemes, and investments, and implementing effective tax saving strategies, you can take control of your finances and maximize your wealth.

Remember, tax planning is a continuous process that requires regular review and adjustment to ensure it remains aligned with your financial goals and objectives. By staying informed, proactive, and strategic in your approach to tax saving, you can build a solid foundation for financial success and prosperity.

Savings account interest rates are at 15-year high, but only fewer Americans are benefiting

By
1_healthytip
-
0
Savings account interest rates are at 15-year high, but only fewer Americans are benefiting

Savings account interest rates are at 15-year high, but only fewer Americans are benefiting
Savings returns are expected to be the best they have been in 15 years, in part because of the Federal Reserve's recent increase in interest rates as a result of persistent inflation.

Smart Money Management Tips for Flourishing in Life

By
1_healthytip
-
0
Smart Money Management Tips for Flourishing in Life

Smart Money Management Tips for Flourishing in LifeSmart Money Management Tips for Flourishing in Life

Managing your money effectively is a vital skill that can lead to financial security and peace of mind. By implementing intelligent money management strategies, you can make the most of your income and build a stable financial future. The following tips from America’s Loan Company will help you control your finances and make wise decisions with your money.

Prioritize Savings First

Setting aside a portion of your income for savings before allocating funds for expenses is crucial in intelligent money management. Prioritizing savings helps build a financial cushion for emergencies and future needs, developing a habit that leads to economic growth. Automatically transferring a set percentage of your income into a savings account ensures you avoid the temptation to spend money on non-essential items. This approach secures your financial stability over time.

Get Ready for Tax Season

Being prepared for tax season is another important aspect of managing your finances. Understanding your tax bracket, tax deadlines, and the necessary documents will help you avoid last-minute stress and potential penalties (click for more information). If you are self-employed, keeping detailed records of your expenses and having Forms 1099, Schedules K-1, and income records ready is crucial. These records verify amounts not reported on 1099-MISC or 1099-NEC, ensuring you accurately report your earnings and deductions. Click for more.

Track Your Spending

Regularly monitoring your spending lets you identify areas where you can cut back and save more. You can pinpoint unnecessary expenses and adjust your budget by reviewing your monthly expenditures. This practice helps you stay within your financial limits and highlights spending patterns that you might need to change. Tracking your expenses can be easily done with budgeting apps or a simple spreadsheet, providing a clear picture of where your money is going.

Invest Wisely

Exploring investment options that align with your risk tolerance and financial goals is a wise move for growing your wealth. Whether you prefer low-risk investments like bonds or are willing to take on higher risk with stocks, it is important to diversify your portfolio. By doing so, you can maximize potential returns while minimizing risk. Understanding different investment vehicles and their potential outcomes will help you make informed decisions that support your long-term financial objectives.

Review and Negotiate Bills

Reviewing your bills and negotiating better rates for services like cable, internet, and insurance can lead to significant savings. Companies often offer promotional rates or discounts to retain customers, and a simple phone call can result in lower monthly payments. Taking the time to review your recurring expenses and contacting service providers can reduce your overall costs. This practice not only saves money but also ensures you are not overpaying for services you use.

Plan for Major Purchases

Anticipating big expenditures, such as vacations or major purchases, and saving for them gradually rather than relying on credit is a smart financial strategy. Setting aside money each month for these planned expenses can help you avoid incurring debt and paying interest. This approach allows you to enjoy your purchases or trips without the financial burden of credit card bills. Creating a separate savings account for these big-ticket items can help you stay disciplined and reach your goals faster.

Keep Educating Yourself

Staying informed about personal finance concepts, investment strategies, and market trends is essential for effective money management. Educating yourself on these topics enables you to make better financial decisions and adapt to changes in the economic environment. Reading financial news, attending seminars, and following expert advice can keep you updated and knowledgeable. This continuous learning process empowers you to take control of your financial future and make choices that align with your goals.

Managing your finances may seem challenging, but with the right strategies, you can achieve financial stability and success. Prioritizing savings, preparing for tax season, monitoring your spending, and implementing the other tactics above will lead you to innovative money management. These steps will improve your financial health and provide peace of mind as you navigate your financial journey.

Article written by Emma Grace Brown

Beehive Quarterly Recap:Q2 2024 Achievements

By
1_healthytip
-
0
Beehive Quarterly Recap:Q2 2024 Achievements

/*! elementor – v3.16.0 – 12-09-2023 */
.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}

We are delighted to present the latest edition of our quarterly blog. In this issue, we will showcase our recent accomplishments and share the latest news and developments from the past quarter.

Outreach & visibility updates:

During the last quarter, we were actively engaged in Beehive’s outreach and visibility initiatives. We are thrilled to have been featured on several esteemed platforms where we showcased our impact on bridging the gap between SMEs and investors.

Our CEO and founder, Craig Moore, appeared on the Access Tomorrow Podcast hosted by Visa Middle East. In the episode “Funding the Future: Exploring Financing Options for SMEs”, he discussed the current lending landscape in the GCC and how our innovative digital platform is revolutionizing SME financing.  


Watch interview

/*! elementor – v3.16.0 – 12-09-2023 */
.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}

Visa Podcast

We were honored to be featured on the prestigious Forbes Middle East list as one of the top 50 players revolutionizing the fintech landscape.


Read more

Forbes Middle East

Our CEO participated in a panel discussion on the future of the fintech industry at the Dubai Fintech Summit.


Read more

Dubai Summit

Our CEO and founder, Craig Moore, appeared on the Access Tomorrow Podcast hosted by Visa Middle East. In the episode “Funding the Future: Exploring Financing Options for SMEs”, he discussed the current lending landscape in the GCC and how our innovative digital platform is revolutionizing SME financing.  


Watch interview

Visa Podcast

We were honored to be featured on the prestigious Forbes Middle East list as one of the top 50 players revolutionizing the fintech landscape.


Read more

Forbes Middle East

Our CEO participated in a panel discussion on the future of the fintech industry at the Dubai Fintech Summit.


Read more

Dubai Summit

Our CEO and founder, Craig Moore, appeared on the Access Tomorrow Podcast hosted by Visa Middle East. In the episode “Funding the Future: Exploring Financing Options for SMEs”, he discussed the current lending landscape in the GCC and how our innovative digital platform is revolutionizing SME financing.  


Watch interview

Visa Podcast

We were honored to be featured on the prestigious Forbes Middle East list as one of the top 50 players revolutionizing the fintech landscape.


Read more

Forbes Middle East

Our CEO participated in a panel discussion on the future of the fintech industry at the Dubai Fintech Summit.


Read more

Dubai Summit

Stats updates:

Through our rapid, digital, and accessible funding, we have supported the growth of numerous SMEs in the Gulf region. We have successfully funded 1,500 businesses with over AED 2.9 billion, and the support from our Beehive +15K investors has been instrumental in their growth.

.elementor-widget-image-box .elementor-image-box-content{width:100%}@media (min-width:768px){.elementor-widget-image-box.elementor-position-left .elementor-image-box-wrapper,.elementor-widget-image-box.elementor-position-right .elementor-image-box-wrapper{display:flex}.elementor-widget-image-box.elementor-position-right .elementor-image-box-wrapper{text-align:right;flex-direction:row-reverse}.elementor-widget-image-box.elementor-position-left .elementor-image-box-wrapper{text-align:left;flex-direction:row}.elementor-widget-image-box.elementor-position-top .elementor-image-box-img{margin:auto}.elementor-widget-image-box.elementor-vertical-align-top .elementor-image-box-wrapper{align-items:flex-start}.elementor-widget-image-box.elementor-vertical-align-middle .elementor-image-box-wrapper{align-items:center}.elementor-widget-image-box.elementor-vertical-align-bottom .elementor-image-box-wrapper{align-items:flex-end}}@media (max-width:767px){.elementor-widget-image-box .elementor-image-box-img{margin-left:auto!important;margin-right:auto!important;margin-bottom:15px}}.elementor-widget-image-box .elementor-image-box-img{display:inline-block}.elementor-widget-image-box .elementor-image-box-title a{color:inherit}.elementor-widget-image-box .elementor-image-box-wrapper{text-align:center}.elementor-widget-image-box .elementor-image-box-description{margin:0}

Beehive Quarterly Recap:Q2 2024 Achievements

1500+ Business
requests funded 

15K+ Investors
helping businesses

Over 2.9 Billion+
AED funded

Furthermore, at Beehive, we have reported a non-performing loan (NPL) ratio of less than 1.5% on our entire financed portfolio. Additionally, we have had zero loan defaults for all loans issued in Q2 2024, highlighting the strength and reliability of our credit and risk assessment operations.

Regulatory and compliance updates:

In its 2023 Annual Report, the DFSA highlighted significant growth and development in the financial sector. Some of the key highlights from the report include:



  • In 2023, the DFSA saw a 25% increase in licensing, bringing the total licensed firms to 791. This shows growing confidence in the region for financial services firms1.


  • A remarkable 50% year-on-year increase in applications across all business models, reflecting the robust growth and diversity of the financial services sector1.


  • There was a robust growth in Environmental, Social, and Governance (ESG) securities listings, recording USD 11.72 billion in total value of new ESG bonds and Sukuk listed – bringing the total outstanding ESG securities to USD 27 billion as of year-end1.


  • The report also noted over 40 domestic fund registration applications, signalling a buoyant investment landscape1.

As we look forward to the next quarter, we remain dedicated to driving innovation and supporting the ambitions of businesses that are shaping the future. Stay tuned for more updates as we continue to bridge the gap between SMEs and investors, fueling growth and success together.

Any questions?

Book a call with our Investor Relations team here:



Book a Call

If you require more information, contact us at investors@beehive.ae

/*! elementor – v3.16.0 – 12-09-2023 */
.elementor-column .elementor-spacer-inner{height:var(–spacer-size)}.e-con{–container-widget-width:100%}.e-con-inner>.elementor-widget-spacer,.e-con>.elementor-widget-spacer{width:var(–container-widget-width,var(–spacer-size));–align-self:var(–container-widget-align-self,initial);–flex-shrink:0}.e-con-inner>.elementor-widget-spacer>.elementor-widget-container,.e-con>.elementor-widget-spacer>.elementor-widget-container{height:100%;width:100%}.e-con-inner>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer,.e-con>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer{height:100%}.e-con-inner>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer>.elementor-spacer-inner,.e-con>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer>.elementor-spacer-inner{height:var(–container-widget-height,var(–spacer-size))}.e-con-inner>.elementor-widget-spacer.elementor-widget-empty,.e-con>.elementor-widget-spacer.elementor-widget-empty{position:relative;min-height:22px;min-width:22px}.e-con-inner>.elementor-widget-spacer.elementor-widget-empty .elementor-widget-empty-icon,.e-con>.elementor-widget-spacer.elementor-widget-empty .elementor-widget-empty-icon{position:absolute;top:0;bottom:0;left:0;right:0;margin:auto;padding:0;width:22px;height:22px}

Learn more about Beehive here

Learn more about Beehive here

/*! elementor – v3.16.0 – 12-09-2023 */
.elementor-widget-divider{–divider-border-style:none;–divider-border-width:1px;–divider-color:#0c0d0e;–divider-icon-size:20px;–divider-element-spacing:10px;–divider-pattern-height:24px;–divider-pattern-size:20px;–divider-pattern-url:none;–divider-pattern-repeat:repeat-x}.elementor-widget-divider .elementor-divider{display:flex}.elementor-widget-divider .elementor-divider__text{font-size:15px;line-height:1;max-width:95%}.elementor-widget-divider .elementor-divider__element{margin:0 var(–divider-element-spacing);flex-shrink:0}.elementor-widget-divider .elementor-icon{font-size:var(–divider-icon-size)}.elementor-widget-divider .elementor-divider-separator{display:flex;margin:0;direction:ltr}.elementor-widget-divider–view-line_icon .elementor-divider-separator,.elementor-widget-divider–view-line_text .elementor-divider-separator{align-items:center}.elementor-widget-divider–view-line_icon .elementor-divider-separator:after,.elementor-widget-divider–view-line_icon .elementor-divider-separator:before,.elementor-widget-divider–view-line_text .elementor-divider-separator:after,.elementor-widget-divider–view-line_text .elementor-divider-separator:before{display:block;content:””;border-bottom:0;flex-grow:1;border-top:var(–divider-border-width) var(–divider-border-style) var(–divider-color)}.elementor-widget-divider–element-align-left .elementor-divider .elementor-divider-separator>.elementor-divider__svg:first-of-type{flex-grow:0;flex-shrink:100}.elementor-widget-divider–element-align-left .elementor-divider-separator:before{content:none}.elementor-widget-divider–element-align-left .elementor-divider__element{margin-left:0}.elementor-widget-divider–element-align-right .elementor-divider .elementor-divider-separator>.elementor-divider__svg:last-of-type{flex-grow:0;flex-shrink:100}.elementor-widget-divider–element-align-right .elementor-divider-separator:after{content:none}.elementor-widget-divider–element-align-right .elementor-divider__element{margin-right:0}.elementor-widget-divider:not(.elementor-widget-divider–view-line_text):not(.elementor-widget-divider–view-line_icon) .elementor-divider-separator{border-top:var(–divider-border-width) var(–divider-border-style) var(–divider-color)}.elementor-widget-divider–separator-type-pattern{–divider-border-style:none}.elementor-widget-divider–separator-type-pattern.elementor-widget-divider–view-line .elementor-divider-separator,.elementor-widget-divider–separator-type-pattern:not(.elementor-widget-divider–view-line) .elementor-divider-separator:after,.elementor-widget-divider–separator-type-pattern:not(.elementor-widget-divider–view-line) .elementor-divider-separator:before,.elementor-widget-divider–separator-type-pattern:not([class*=elementor-widget-divider–view]) .elementor-divider-separator{width:100%;min-height:var(–divider-pattern-height);-webkit-mask-size:var(–divider-pattern-size) 100%;mask-size:var(–divider-pattern-size) 100%;-webkit-mask-repeat:var(–divider-pattern-repeat);mask-repeat:var(–divider-pattern-repeat);background-color:var(–divider-color);-webkit-mask-image:var(–divider-pattern-url);mask-image:var(–divider-pattern-url)}.elementor-widget-divider–no-spacing{–divider-pattern-size:auto}.elementor-widget-divider–bg-round{–divider-pattern-repeat:round}.rtl .elementor-widget-divider .elementor-divider__text{direction:rtl}.e-con-inner>.elementor-widget-divider,.e-con>.elementor-widget-divider{width:var(–container-widget-width,100%);–flex-grow:var(–container-widget-flex-grow)}

References
1 The DFSA 2023 Annual Report chronicles a year of growth, innovation, and collaboration | DFSA | THE INDEPENDENT REGULATOR OF FINANCIAL SERVICES

Frank Darras Publishes Article in Law360: “Game-Changing Decisions Call For New Rules At The NCAA”

By
1_healthytip
-
0

By Frank Darras (May 6, 2024)

For years, there have been plenty of reasons why fans, athletes and stakeholders have had special disdain for the National Collegiate Athletics Association and its draconian policies. Books have been written on how the NCAA has unfairly limited college players’ rights for nearly a century.

However, since the U.S. Supreme Court’s unanimous 2021 ruling in National Collegiate Athletics Association v. Alston — against the NCAA — a new legal precedent was established to allow players to earn long-overdue compensation from their name, image and likeness, or NIL.

This development shook the foundations of the NCAA to its core, and now those who were at odds with the NCAA simply ponder its purpose. A smattering of recent events — from a newly formed college players union to coaches transferring at the drop of a hat — provide more reasons why the association should prepare for a dismal, final period. Let’s explore why.

Read the Full Article here:  Law360 – Game-Changing Decisions Call For New Rules At The NCAA

 

Should You Consider Loans for Bill Payments?

By
1_healthytip
-
0
Should You Consider Loans for Bill Payments?

Should You Consider Loans for Bill Payments?

Managing finances can sometimes become overwhelming, especially when unexpected bills pile up. Whether it’s a medical emergency, utility bills, or necessary home repairs, the need for quick funds can lead you to consider various financing options. Among these, loans for bill payments can be viable solutions to ease your immediate financial burden. However, it’s crucial to understand when such loans are appropriate and the potential long-term impacts on your financial health. Dive deeper into the article to discover more about the various options available for bill payments, the advantages and disadvantages of using loans for bills, and more.

Types of Loans to Pay for Bills

When it comes to finding the right emergency loan for paying bills, there are several types you might consider. Each type has its specific characteristics and conditions, catering to different needs and financial situations.

Hand filling out bills | Loans for bill payment

Payday Loans

Payday loans are short-term loans typically used to cover expenses until your next payday. They are one of the quickest options available for emergency loans for bills, providing immediate cash with few application requirements. However, they often come with high interest rates and short repayment periods, which can lead to a cycle of debt if not managed carefully. The typical amount ranges from $200 to a maximum of $3500, depending on state regulations and personal qualifications. They are best used when you are certain you can repay them on your next payday.

Bad Credit Loans

For individuals with less-than-ideal credit scores, bad credit loans offer an opportunity to borrow money for bills even when traditional lenders may deny your application. These loans usually have higher interest rates than other types of loans but can be helpful in emergencies where access to credit is limited. They are designed to be accessible, often requiring less stringent credit checks, thus making them a practical choice for those needing to improve their credit history by demonstrating timely payments. Despite their accessibility, it’s important to consider the cost implications due to higher interest rates.

Installment Loans

Installment loans allow you to borrow a lump sum and repay it in fixed monthly payments over a set period. This solution is ideal for those who need a more substantial amount and prefer a predictable repayment schedule. Installment loans can be used for significant expenses, providing a structured way to manage repayment without immediate financial strain. They can range from a few hundred to several thousand dollars, with terms extending from a few months to several years. These loans offer the advantage of budget predictability and lower interest rates than payday loans.

Pros and Cons of Using a Loan for Bills

Stack of overdue bills | Loans for bill payment

Understanding the advantages and disadvantages of taking out a loan for bills is essential for making informed financial decisions. Here’s a breakdown of the pros and cons to help you weigh your options effectively.

Pros:

  • Immediate Access to Funds: When bills are due and savings are unavailable, loans provide quick financial relief.
  • Credit Flexibility: Bad credit loans are accessible even to those with poor credit scores.
  • Manageable Payments: Options like installment loans allow for spreading out payments, making it easier to budget.

Cons:

  • High-Interest Rates: Some loans can have high fees and interest rates.
  • Debt Risk: Borrowing more than you can afford or failing to manage repayment plans can lead to a cycle of debt.
  • Potential Negative Impact on Credit Score: If not managed properly, taking out new loans can harm your credit score. Additionally, relying on this solution for regular expenses can become a financially unsustainable habit if not checked.

Why Choose a Personal Loan for Bills?

Personal loans can be a more suitable option for managing significant bills or consolidating multiple debts into a single payment. They often offer lower interest rates compared to credit cards and payday loans, longer repayment terms, and a higher borrowing limit. By choosing a personal loan, you can cover your immediate expenses and repay the amount over time in manageable installments, potentially improving your credit score if managed wisely. These loans also provide the flexibility to use funds for a variety of financial needs, not just bill payments.

When to Consider a Loan for Bills

Electricity bill | Loans for bill payment

Consider taking out a loan for bills under the following circumstances:

  • High-Interest Debt Consolidation: To consolidate multiple debts with high interest into a single, lower-interest loan.
  • Emergency Expenses: For unexpected expenses such as medical bills or urgent home repairs.
  • Improving Credit: When used responsibly, loans can help build or improve your credit score. It’s crucial to ensure that the terms are favorable and that you have a solid plan for repayment.

Financial Planning Tips

Effective financial management is critical when dealing with unexpected bills. Here are some tips:

  • Budgeting: Always have a clear budget that accounts for your income and expenditures. This helps you understand how much you can allocate towards paying off debts.
  • Emergency Fund: Aim to build an emergency fund that covers at least 3-6 months of expenses, which can be crucial in preventing the need for loans during financial emergencies.
  • Financial Advice: Consider consulting with a financial advisor to help manage debts and plan for unexpected expenses effectively. A good financial plan can safeguard against the need for frequent borrowing and ensure financial stability.

Understanding Loan Terms and Conditions

Before taking out any loan, it is crucial to fully understand the terms and conditions attached to it. This includes the interest rate, repayment schedule, penalties for late payments, and any other fees. Understanding these terms can help you make an informed decision and avoid unexpected costs. Always read the fine print and ask questions if anything is unclear.

Apply Today with Wise Loan

Stressed older couple with finances | Loans for bill payment

If you’re facing immediate bill payments and need financial assistance, applying for a loan with Wise Loan can be an intelligent choice. We offer a variety of options tailored to meet your financial needs, from emergency loans to installment plans. With straightforward application processes, fast approval, and flexible repayment terms, Wise Loan is here to help you manage your bills efficiently and responsibly. We understand that managing finances can be stressful, especially when unexpected costs arise. Our goal is to alleviate some of that stress by providing financial solutions that are accessible and manageable. Whether you need to cover a sudden medical bill, fund emergency repairs, or prevent utility shut-offs, Wise Loan is committed to helping you navigate your financial challenges.

Start your application today and gain the financial flexibility you need to cover your bills without stress.

Adverse credit impacted 8.3m in three years, study finds – Mortgage Strategy

By
1_healthytip
-
0
Adverse credit impacted 8.3m in three years, study finds – Mortgage Strategy

Adverse credit impacted 8.3m in three years, study finds – Mortgage Strategy
As many as 8.3 million individuals in the UK have experienced adverse credit in the last three years, the latest Pepper Money Specialist Lending Study has unveiled.
The figure is the highest level recorded since the study was launched in 2019, while of  those who say they’ve missed a credit payment, nearly half (46%) say they have gone on to miss more than one payment.
However, 1.76 million would-be borrowers with adverse credit have plans to buy a property in the next 12 months.
The fifth iteration of the specialist lending report was unveiled at an event hosted by the lender in London last night, 26 September, and included panel discussion and a key note speech from economist Trevor Williams.
YouGov surveyed over 4,000 on behalf of Pepper Money, covering topics including adverse credit, unsecured debt, employment types and income sources, Buy to Let, prospects for home ownership, second charge mortgages and attitudes towards sustainability.
The report revealed that nearly seven in 10 (69%) of those who don’t currently own a home would like to, however 36% believe this will never be possible.
Meanwhile 4.2 million (8%) people have an existing mortgage deal coming to an end in the next 12 months.
Of those who are self employed, 72% believe that this will make it harder for them to get a mortgage, the study found.
In the buy-to-let sector, more than half of landlords with a mortgage (53%) have had to remortgage in the last 12 months and 56% of those have seen their mortgage payments increase by more than 20%. Only 50% of this group said they have increasedrent by 20% or more.
Pepper Money sales director Paul Adams says: “The research has shown that, despite the significant growth in the number of people with adverse credit, there continue to be many misconceptions amongst mortgage customers. The fact nearly a fifth of people think they would need to wait longer than five years to apply for a mortgage following a CCJ is concerning, given that they could access the mortgage market within months of a CCJ.
“This presents a great opportunity for brokers and the wider industry to raise customers awareness about the options available to meet their individual financial circumstances.”  

1...345...38Page 4 of 38

EDITOR PICKS

POPULAR POSTS

POPULAR CATEGORY

©