How To Borrow Money Online To Finance Your Business

Business owners mostly resort to business loans for many reasons. Online loans have made it easier for small business owners to access funding. The post How To Borrow Money Online To Finance Your Business appeared first on Young Upstarts.

How To Borrow Money Online To Finance Your Business

Any small business requires a loan at some point. Whether it is to get its operations off the ground, expand or run the daily activities, small business owners often go out of their way to get funding. However, getting a small business loan may sometimes be a tough nut to crack. This is mainly due to tight lending standards put across by banks.

However, you can now obtain funds for your business online. Online business loans are easier to access and provide business owners with various options. Here are a few steps to follow when borrowing online to make sure you qualify for an online business loan:

Know Why You Need the Loan.

It may seem obvious why business owners opt for loans. However, if the business is still in its start-up stages, this might be a bit confusing. Small business owners may not even recognize the amount they need.

Online lenders may need to know if the funds are for:

  • Starting the business
  • Running the business’ day to day operations
  • Expanding the business
  • Starting a safety cushion

You will have to sit down and articulate why you need a business loan and state the amount you need. This is especially in times of crisis or pandemic like the COVID-19. Sometimes, you will not be able to address this question until you have prepared your financial statements. 

Determine if You Qualify. 

To qualify for an online loan, the online lender will review your credit score and business history. If your business is less than three years old, you will have to put your personal credit score in order. This is how to qualify for an online loan:

Review your Credit Score.

Your Credit score will determine the amount you are eligible to receive. You can get your credit report for free from various online resources. Some credit card issuers and personal finance websites also give credit score reports. If you find errors in your credit score report, you can write a letter to the agency specifying the error. If it is one that the agency can’t fix, you can file a credit dispute report. Online loans can particularly be an excellent option for people without a remarkable credit score report.

How long have you been operating.

Online lenders will also check how long your business has been in operation. Your business needs to have been in existence for at least one year to qualify for a small business loan.

How much money you make.

Online lenders will also review how much revenue your business generates. Primarily, your minimum annual income should range between $50,000 and $150,000. Calculate yours and know how much the online lender requires to approve your loan.

How you plan to repay.

You need to carefully analyze your business financials, more so the cash flow. This will help you evaluate how much you can afford to repay every month. Some online lenders may require you to make payments daily or twice a month, so you need to consider this too. A tip to help you in this step is to know that your total business revenue should be 1.25 times your expenses or more. You should include the repayment amount to the business expenses. For instance, say your total business income per month is $10,000, and you pay $7,000 in rent, inventory and other costs, the maximum amount you can afford for monthly repayment is $1,000.

Determine the Best Online Lender to Borrow From.

Business loans can range from about $2,500 to seven figures. Most financial lenders don’t want to deal with small loans because they require the same amount of work as bigger loans but are less profitable. This is why you need to evaluate various online lenders and settle on the best one for your business.

You can consider the following lenders for small business loans:

Nonprofit Microlenders – these lenders offer favorable terms and interest rates. Additionally, they also educate their borrowers on how best to use the loans.

Community banks and credit unions – Most of these are usually very welcoming to small businesses.

Other Platforms – You can opt for other alternative online lending platforms such as peer to peer lending, crowdfunding websites, purchase order financiers, and many others. Many of these alternative lending platforms process loans faster. However, their interest rates are usually higher than other traditional ways of lending.

You also need to consider the interest rate. It could be 5%, 10%, 15% or even higher. Remember that this does not include the processing fee.

In Conclusion.

Business owners mostly resort to business loans for many reasons. For a long time, traditional lending institutions have had tight lending standards making it hard for small businesses to access loans. However, online loans have made it easier for small business owners to access funding.

To qualify for these loans, you need to know why you require the money, how much you need, and how you plan to repay the loan. Also, evaluate various online lending platforms and settle with the best.

The post How To Borrow Money Online To Finance Your Business appeared first on Young Upstarts.

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Things You Should Always Include On Your Resume

The goal of a resume is to get as many responses as possible from potential employers. You need to ensure your resume is professional and has everything included in it. The post Things You Should Always Include On Your Resume appeared first on Young Upstarts.

Things You Should Always Include On Your Resume

Creating a resume is nothing new for someone who is searching for a job. Some resumes are fantastic, while some resumes fail to bring any results. The goal of a resume is to get as many responses as possible from potential employers.

A recruiter goes through a lot of resumes in a day. You need to ensure your resume is professional and has everything included in it. Don’t worry; this article will help you ensure your resume consist of everything employers want to see in it.

Things You Must Not Miss Out on Your Resume.

Some of the things mentioned here will be obvious to many of you. However, you will also find something you never thought would be included in a resume.

Here are some things you must always include on your resume:

1. Contact Information.

Who forgets to include contact information, right? It may sound obvious to you, but many people miss out on some vital information. Contact information does not only include your name and phone number.

You should make sure your resume includes every bit of your contact information like name, phone number, email address, LinkedIn Profile, etc. Don’t make a mistake of adding information you don’t use. For instance, some people mention their email address they don’t access a lot.

This page consists of some top-notch resume examples from various occupations to help you create a professional resume.

2. Professional Title.

Employers want to consider candidates with a crystal-clear objective. Having a professional title can help you entice employers to view your resume. It also shows recruiters you are working towards a specific goal, instead of applying for all random jobs.

If you’re applying for a marketing position, you can add “Marketing Executive” as your professional title. You should add it below your contact information. If you’re having trouble finding the right organization, this article can help you out.

3. Education.

Having a relevant degree does matter a lot to your potential employers. Your highest degree should be at the top of your resume. There is no need for you to mention your high school qualification if you have completed your undergrad.

Don’t forget to mention your year of completion and the title of your degree along with the university. Feel free to add relevant honors to your education section if applicable.

4. Keywords From Job Description.

How would you feel if you find out your recruiters never got hands on your resume? It would be terrible. Many organizations have implemented software to weed out weak resumes. One of the ways to pass HR bots is by inserting relevant keywords throughout your resume.

List out vital keywords from the job description and then add it to your resume. It will increase the relevancy of your resume for employers. The software like Wordle can help you create a word cloud to prepare your resume.

5. Professional History.

Some of you might be a fresher without any professional history. Here is the content, which will help you prepare a fantastic resume for a new graduate.

What if you have a professional history? Create a separate section for it. Mention the most recent job in the beginning and mention your responsibilities and achievements. Don’t forget to include the name of the employer, job title, and years of employment with a few bullet points about your role.

6. Relevant URLs.

A great way to increase value via your resume is by including relevant URLs on it. Due to the increment of the popularity of a digital resume, it is not difficult to post URLs on your resume. Include any links, which are relevant to the job you applied.

For instance, you can include your website or a LinkedIn profile on your resume. You may have written various blogs related to the relevant subjects in the past. Mentioning those blogs can give hiring managers positive vibes about you.

But you should not include cat videos or some random travel blogs on your resume. It will only lead to hampering your chance of getting a reply from recruiters.

7. Stats and Numbers.

It is excellent to mention numbers in your resume. Including metrics will tremendously help in increasing the authenticity of your achievements and claims. You may say a vague statement like “Helped to increase revenue,” but it does not show any exclusivity about it. Recruiters will take note of your ability if you can insert some metrics on your resume.

Instead of saying “helped a marketing team,” you can insert “Helped marketing team to increase sales by 75%”. Now, hiring managers can see what you’re capable of doing for their organization. It also helps you to be specific in your claims.

8. Relevant Skills, Tools, And Certifications.

Besides your professional history, recruiters also heavily focus on your relevant skills and certifications. Your educational degree shows your knowledge but adding proper certifications can make you stand out. It shows recruiters you are willing to improve yourself.

For instance, having IIBA certifications (Business Analyst) or Java certifications can significantly raise your chance of getting a reply from hiring managers. Another thing you can do is add relevant skills. For data analyst jobs, you can add skills like Microsoft Excel Mastery or SPSS on your resume to increase your value.

9. Extra Volunteer Work.

If you have volunteered for some non-profit organizations (if relevant), you can add it to your resume. For example, you might have participated in the World Vision or UN mission work. It will supplement your resume, and it will stand out as bonus points.

10.  References and Testimonials.

Lastly, add references and testimonials. Integrating social proof to your resume will make you highly desirable—mention testimonials and show who gave it along with their organization and position. Insert references along with their contact information to enable recruiters to reach out to them for confirmation.

When inserting references and testimonials, you should make sure you have a positive image in their eyes. If not, your effort will backfire.

Final Thoughts.

Regardless of how knowledgeable you are, there is a chance you will miss out on something. This article comprises everything you must include on your resume. Keep this content as a guide while preparing the perfect resume for your job hunt.

Is there something still missing out in this article? Let us know by leaving your insights in the comments.

The post Things You Should Always Include On Your Resume appeared first on Young Upstarts.

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