Top 5 Types of Startup Business Loans

11 December 2017

A business, even in its earliest stages, requires a lot of capital. If it didn’t, we would all be businessmen. However, many entrepreneurs find it extremely difficult to get funding, even for a start-up. Official information actually points out that economic uncertainty is the biggest challenge businesses must cope with.

If you’re in this unfortunate position, then you’ll find this article helpful, because we’ll tell you about the solution at hand: business loans. Yes, that’s plural – there is more than one type of business loan.

Contents

1 Business Loans You Must be Familiar With
2 Conclusion

Business Loans You Must be Familiar With

1. Personal loans

Personal loans can be used for start-up purposes. In this case, it’s not the business that has to repay the loan, but you. With other words, it’s a type of loan handed out to the business owner (who has to sign) instead of the business itself.

Personal loans are usually secured on an asset called “personal guarantee”. If you fail to repay the loan, the lender has the right to confiscate the guarantee. This way, he gets the money back anyway.

2. Installment loans

Installment loans

Installment loans are loans designated to be paid over a certain period of time through a certain number of repayments that have been scheduled by the lender and the borrower.

Saying that a loan is an “installment” loan is just a fancy way of saying it’s just a traditional loan. The selling point of installment loans is that they are so much safer than credit cards.

3. Online loans

The Internet is a great source of all types of business loans, start-up ones inclusively. Tens – if not hundreds – of websites like Northcash Loans, for instance, are specialized in offering quick start-up business loans. Still, bear in mind that this type of financing should be taken out in the case of emergencies only if you know for sure that you are financially capable of making the repayments.

The greatest aspect of online loans is how easy it is to apply for and get one. The terms are a lot more relaxed than those imposed by banks.

4. Line of credit

When you get a line of credit, the lender offers you a certain sum you can access via your credit card at any time you want. The best thing about the line of credit is that you can spend as much as you want.

Say you borrowed $10.000 but did not spend it all. That’s not a problem – you’ll be charged interest only on the sum you’ve used. It’s among the most efficient and safest types of business loans out there.

5. Microloan

A microloan can amount to $50k, so it’s not really micro, but anyway. $50k is a quite large sum, so you’ll probably manage your start-up costs with a microloan. The choice, of course, is yours.

Conclusion

No matter what the scale and size of the business, raising capital to fuel expansion has to be done at a given time. When it comes to startups, this process keeps happening after small intervals because of their fast growth strategies. This is why it is essential that financials are always in order. Experts suggest that expert accounting services for startups are necessary to ensure that the balance sheet, taxations, and other financial issues are taken care of methodically and strategically.

Did you have any clue that there are so many types of business loans? Probably not. You should pay attention to the fact that all of these come with different requirements. You need to do some proper research and make sure you’ll get a good deal.

Don’t underestimate a conversation with your accountant, either. Loans are no joke and a start-up borrowing could actually destroy your company in the cradle instead of nurturing it. You can’t be careful enough.

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Ariana Smith

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at Content Rally.

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What Is Leadership Statement?

Being a leader requires a clear idea of what your vision is and where you want to end up in your executive position. It is important to have a direction that will help you navigate through difficult times for your business and give a sense of clarity and stability to your team. And for this, you would need a strong leadership statement. A personal leadership statement is a way to express your values, beliefs, your purpose, and how you want to lead others. However, it’s still an official semi-formal document that has a clear structure and requirements. And you would need to know these specifics to do it right. Why Do You Need a Personal Leadership Statement? It might seem that a statement of leadership is not that important for your business or personal growth. But this exercise is necessary if you want to align your professional life with your moral compass. It helps you understand yourself as a leader and present your goals and direction to others. A leadership statement is an important self-reflection beneficial for you in the first place when you prompt to express your ethics clearly and cohesively. Through this statement, you can understand who you are as a leader. Not just who you think you are. Thus, you get a clear idea of the purpose of your leadership. And when you know yourself as a leader, every step in your business strategy is razor focused and intentional. A personal leadership statement examples show the bigger picture vision. So, when you know where your leadership is going, you will never compromise your ethics for profit. Hence, a leadership statement is what you can always lean on. Another crucial purpose is to connect better with employees. Ever so often, high executives do not have direct communication with their staff. And a leader’s statement is the exact thing that helps establish trust with your coworkers. By sharing a personal leadership statement, you show the necessary humility and vulnerability that are relatable to your team. Notably, crafting a great statement can be overwhelming. And it’s difficult not to stray away from the main point. So, it might be a smart decision to order it from an assignment writing service like Assignmentguru.com. A professional will always know how to compose the best and the most cohesive statement. Where to Start With Your Leadership Statement The first thing you need to think about is your philosophy about leadership. The leadership statement is a personal message about your idea of what a leader should be like. However, you have to be precise and specific. So, it’s important to understand what are the key components of a statement of leadership. You would want to start with your summary of how you understand leadership and what you aspire to be as a leader. Many personal leadership statement examples use the role models that inspired people to become leaders. By providing examples of aspiring people, it is easier to explain your own stance. Another thing to think about is your attitude. This one might seem similar to the theory, but it is more about how you see your role as a leader. What are you going to do with the power you have? Would you try to establish close supervision, or you’re more about giving space for creativity and brainstorming? Thus, you have to consider how you approach leadership itself. The core of any leadership statement is the leader’s guiding principles. This is your moral code as a leader. Think about the values that cannot be compromised under any circumstances. This one is extremely valuable for your team to understand what the ethics at work are. You are the person who exercises these values within the company’s policy. Finally, think about the behavior that you exhibit as a leader. How are you going to apply everything above to achieve your leadership goals? Here you show a balance between ambition and personal morals. You can emphasize the importance of teamwork. You will always need the help of others, just like a student needs assignment help sometimes. How to Craft Your Leadership Statement Finally, after developing a clear idea of what you want to write in your statement of leadership, it is time to start drafting it. Do not expect yourself to write a perfect statement in one sitting. Even with the best ideas in mind, it would be impossible to deliver a good message without editing and revising the first sample. Thus, when composing your leadership statement, divide it into five concise parts that you can see in various personal leadership statement examples. Introduction. Here you outline why you want to be a leader, use your life experiences as an example, and briefly state what being a leader means to you. Evaluation of your core values. Draft your moral leadership code. Keep it precise and clear, and do not get distracted by too broad or general philosophical ideas. Clear objectives. Explain what your leadership goals are and how you are going to achieve them with the values you showcased in the previous section. Impact on your employees. Describe how you’re going to exercise your leadership and put emphasis onconstant communication with the team and their well-being as one of the priorities. Conclusion. Briefly summarize why you’re going to be a great leader based on what has been written previously. Remember to use engaging and descriptive language. As much as you do not want to be vague, you wouldn’t want to sound boring and stuck up. A great assignment writer knows best how to balance formality with creativity to make a customer want to come back and buy assignments from best research writing services. And so do charismatic leaders if they want to inspire people to follow their lead. To Wrap It Up Do not neglect the power of a leader’s statement. Spend some time reflecting on how you see yourself as a leader. Compose a clear and inspiring message that can be spread among your employees and attract new professionals. So, utilize its power and become the next big name in the leadership world. Read Also: Develop Your Organizational Leadership Skills with an Associates of Science Degree Why Leadership Is A Great Skill To Have Within The Workplace? An Overview Of Adaptive Leadership

How to Start an Irrigation Business?

Recent economic issues and the unwarranted spread of COVID-19 have demonstrated how fragile the economy is. Of course, the fragility of the economy directly affects your job security and future prospects. It can be disturbing and worrying when you realize that the job you love may not be there tomorrow. That’s why many Australians are looking at new prospects and opportunities. Unsurprisingly, the vast majority of these are based on self-employment or creating your own financial opportunities. That’s why you may be considering setting up your own irrigation business. There is certainly a demand for it. Every year the temperature heats up and people need water, it doesn’t matter if it’s large scale farmer, public spaces, or private individuals with large gardens/small fields. You’ve got the right plan, now you just need to start your business. Financial Planning This is potentially the most important part of the process. You need to look at what your costs are, who your customers are likely to be, and what sort of income you can expect to make. In this sort of business, the costs are relatively controlled. You’ll need to invest in good traveling irrigators. This will allow you to move between places and distribute the water for your customers. Of course, you’ll need to allow for insurance costs, fuel costs, and consider where your water is coming from. But, you’ll also need to consider the number of customers you’ll be able to help yourself. It’s likely that you’ll want additional equipment and manpower to service several customers at the same time. The issue then becomes whether you have enough space to store all the equipment or whether you need to hire premises. This will drastically increase your costs. It’s important to take your time when creating a budget, you need to think of everything and then add a little extra for unforeseen emergencies. Once you’ve established the costs of getting started and running the business for a year, you can use that figure as the number of funds you need to get started. Then, you’ll have to start speaking to finance companies to raise the capital you need. Advertising The moment you commit to the business idea you need to start attracting customers. There are various ways of doing this from going door-to-door, to posting information on the internet. You will want your own website and you will need to reach out via social media. But, your customer base is certain t be local. It’s worth taking the time to get to know some of the people in your area. You can give them the personal service that larger companies struggle with. Test Run Once you’ve got your finance sorted, customers becoming interested, and your equipment has turned up, you need to do a test run. This ensures you know what you are doing with the equipment and get the job done efficiently and effectively. That is essential if you want repeat business and referrals. This isn’t the cheapest business to start, but profits can be significant, it just takes a little hard work. Read Also: Have You Been Laid Off Because Of Coronavirus? Here Are 5 Income Earning Opportunities For You Optimize Your Small Business Revenue by Taking These Steps

Gaurav Gandhi to Replace Nitesh Kripalani to Head Amazon Prime Video

Amazon Prime Video is all set to be led by its new leader in a couple of months. The e-commerce major, Amazon has hired Gaurav Gandhi as its new Director and Country Manager (India) for its video streaming service - Prime Video. Amazon as a commercial company has increased its market share in the country from both urban and rural grounds. Amazon offers have attracted customers to log in to the website and take home good quality products at amazing discounts. With this, Amazon has finally filled the high profile position which was vacant from the past 6 months. Earlier, Nitesh Kripalani was serving at this position but suddenly exited from Amazon in August last year. Source Gaurav Gandhi already made his mark in the industry by serving as Head of video streaming service- Voot, before submitting his resignation papers to Viacom18. Gandhi, an alumnus of NMIMS Mumbai, has been working in Viacom18 from past 8 years. He had joined the company in 2010 as the Chief Commercial Officer and Head of International Business, where he did a commendable job in taking the franchise globally. In the later years, he was named as the COO of IndiaCast. IndiaCast is a distribution joint venture between TV18 and Viacom 18, and Gandhi again did an impressive job in establishing a strong distribution network for IndiaCast. In the year 2015, he was given the responsibility of being the COO of Viacom18 Digital Venture. This venture later launched Voacom18’s over-the-top video streaming service, called Voot. His entry into Amazon is being perceived as an intelligent strategic move by Amazon, as Gandhi was an active contributory in bringing Voot among the top 3 OTT services in India, in terms of both monthly active users and number of hours spent. Prior to his commendable work at Viacom18, he also led many media companies. He served as Executive Vice President – Business Operations & Content Sales at NDTV Imagine, and as Vice President – Commercial and Business Planning at Star group. He also worked at Turner International India and Madison Communications. While Voot is more focused on leveraging the content of TV Channels like Colors, VH1 India, MTV India, Nickelodeon India and other channels falling under the flagship of Viacom18 group, Amazon is betting big on its exclusive original content. Series’ like Inside Edge has worked well on Amazon. Further, a good response is expected from The Remix, Inside Edge 2 and its other products. Both the companies compete with homegrown giants like HotStar and Jio TV, along with international players like Netflix. With this big shift, it will be interesting to see how OTT services scenario changes in India. Read More : 7 Proven Marketing Tactics To Increase Your ROI In 2018 5 Most Common Challenges Faced Bye Commerce Businesses Today

Top 5 Types of Startup Business Loans