Many small business owners struggle with obtaining business finance, and there is absolutely nothing unusual about this. Getting a business loan for small businesses, such as retailers, restaurants, garages and so on, is not as simple as one would think from the bank.This is not to say however, that getting a business loan is not possible. It all depends on where one goes looking for the loan. Typically, there are two primary options that business owners have, approaching their local banks and going to a private funder or lender.Banks and small business loansBanks look at applications for small business loans from their perspective and their perspective is determined by their criteria. When we speak of criteria, there are numerous criteria and these are all non-flexible as well as stringent.Typically, banks require high credit scores, which should be around about 700 or over. If a business applying for a loan with the bank lacks excellent credit, their application will be rejected simply based on that one criteria. In conclusion to banks and credit scores, business funding with bad credit with a bank is not a possibility.This is not to say that there are not a number of other criteria, which banks follow carefully and take equally seriously as well. The criteria of banks have been established over the decades based on shared experience, and these criteria are across the board.As is generally acknowledged, banks are not very keen on funding small business loans. The reasons for this are many and one of the primary reasons is that, small businesses are considered to be high risk investments from the banks perspective and experience.Private funders and small business loansWith a private lender the situation is completely different from what a business owner will experience with a bank. Private lenders have a completely different list of criteria to provide cash advance for business owners.As private lenders primarily offer MCA (Merchant Cash Advances), the criteria for these is simple. An MCA loan is an unsecured loan, and does not require high credit scores either. As a result it’s easy to qualify for this kind of funding.However, many a small business owners don’t look upon MCAs from a friendly perspective, and they do have their reasons. The interest rates are higher than traditional bank loans, and most business owners want low interest rates.The point with MCAs is however not to compete with bank financing, as they are both in quite different arenas. Apart from the fact that they are both financing for businesses, the entire process, requirements, features and all other details related to the funding are completely different.With an MCA loan the question how to qualify for small business loans does not really apply. Only in very few cases are small businesses turned away by private lenders. Generally, most businesses receive the funding they require for their business.MCA loans V/S bank loansMerchant cash advances or MCA in short are generally accompanied with high interest rates. Far higher than what the bank provides, and the reason for this is these are unsecured short term loans.There are many businesses who would never qualify for a traditional bank loan, regardless of how badly they need it or want it. If their credit scores are low, or if they are unable to provide the collateral the banks require their applications will be rejected. This is not to say that there are not a lot of other grounds on which small business loan applications are not declined by banks. Also, banks are under not obligation to provide funding to those they choose not to. This leaves many small business with no other option.For an MCA loan a business requires nothing much in the way of credit scores and collateral. The basic criteria for an MCA loan is mentioned here, as follows. The business should be at least 12 months old and a running business. The owner of the business should not be in active bankruptcy at the time of the loan application. Finally, the gross income of the business needs to be at least $10 thousand a month.The easy criteria makes it simple to obtain an MCA, and the drawbacks are definitely the interest rates and the duration for some business owners. However, those who capitalize on such business funding are those business who either have no choice, or those who require quick business loans. Some of the advantages are the processing time frames, which can be as little as a couple of days.
Small Business Loans With A Poor Credit Score
Different Types of Direct Marketing Lists
Direct marketing delivers your marketing message directly to a group consumers or businesses on a personalized level (such as a telephone call or via a personal email message). It’s a form of marketing that provides the recipient with a direct call to action. The following are the three main types of direct marketing.Mailing Lists
Direct mail is one of the most common forms of direct marketing and an essential part of an integrated marketing campaign. Companies promote their products and services with a provocative mailer. Direct mail campaigns provide your prospects with a tangible piece of mail to read at their leisure. Direct mail campaigns are extremely effective and when they are personalized and customized to a specific target audience can have great response rates.Telemarketing Lists
Telemarketing is the process of calling prospects on the phone to promote your products or services. This can be done using your own sales staff or by subcontracting out to a call center. Telemarketing is vital in creating brand recognition, building customer relationships, nurturing leads and of course, closing sales.Even with its bad reputation, telemarketing still plays an important part of any direct marketing campaign. Telemarketing is personal and interactive, and capable of providing an immediate response. As effective as telemarketing is, you need to be sensitive to your prospects’ willingness to receiving unsolicited phone calls.Telemarketing campaigns work best when the telemarketing lists are highly targeted, with accurate data that matches your current customer’s profiles.Email Lists
Email marketing is an effective way of reaching out to new prospects or following up with existing customers. Email marketing is extremely versatile, and you can easily customize your marketing messages to various market segments, or for prospects in different stages of the sales funnel.Email marketing can be used to nurture customer relationships, provide company and product information, drive website traffic and to promote direct sales. The emails can be as elaborate or as simple as needed.Most people check their emails on a daily basis, making email a very effective marketing method for your business. However, email marketing should be used responsibly, and it is extremely important to have your customers’ consent before sending emails.The most successful direct marketing campaign will use a mix of marketing methods. Repetition is very important in any type of marketing efforts. The more you can get yourself out in front of prospects, the greater the chance of being remembered. Try a direct mail campaign with a telemarketing follow-up or an email blast in conjunction with a direct mail campaign. A Multi-Channel campaign also allows your prospects multiple ways to communicate back to you.Regardless of the method, the key aspect in any direct marketing campaign is the ability to target the marketing message to a specific audience. With properly defined target market, you can deliver your message directly to those who have a greater probability of purchasing from your business. This allows businesses of all sizes focus their marketing budget and resources where they’re most likely to get results.It’s very important, before starting any direct marketing campaign, that you understand the different regulations governing each method of communication. The responsibility is yours to make sure you are compliant. Legitimate list brokers and managers should be able to confirm that the lists they are providing comply to the various rules and regulations. If you are uncertain, do not hesitate to ask.
Online Education – Today’s Buzzword
Students world over are whole-heartedly accepting online education. The advantages of online education have made it the popular mode of education among the students of all age groups in all parts of the world. This growing popularity of online education has led to the emergence of a large number of educational institutions offering online education for a wide range of subjects. The growth of educational institutions offering relearning facilities has been significantly high in the US, Europe and the developed nations of the world.Online Education- Changing PerceptionIn the past people perceived online education as an unserious and unscrupulous way of laying hands of a fast degree and getting good grades without much effort and hard work. People also had doubts about the reputation of education institutes offering online education. However, the times have changes significantly and today the majority of educational institutions offering online education are well established. Most of the world’s leading education institutions have commenced online programs, which vindicate the validity of online education. Most of the online courses offer in-depth learning to the students in their respective educational modules.Factors Contributing To The Growth of Online EducationOnline education is becoming popular because most of the educational institutions offering online courses ensure qualitative learning. Talented professors and subject matter experts are at the helm of affairs at almost all accredited universities and colleges offering online courses and online degree programs. The students can be assured of good results in such courses.Here are some factors that have contributed to the fast paced growth of online education:· Flexible scheduleThe biggest advantage of online education is that the students can do effective utilization of their time, which is the most precious resource. People participating in online education have the freedom of maintaining a flexible schedule, which helps them tremendously and it has come as a boon for the people who are working and want to continue their education.· Student-Centered LearningThe students in online education have an advantage because they are in charge of their learning experience. The students can prioritize their schedule and complete the assignments as per their comfort levels and convenience. This is possible because the teachers in online mode of education are not teaching you all the time. As an online student, you have the liberty to select the mode of learning.· Fair Playing FieldOnline education is growing in popularity because it offers a level playing field to all the students. When you are learning online, your performance is the only criterion that affects the decision-making and your gender, race, ethnicity, nationality, and other considerations do not cloud the decision making process. This is one of the major factors contributing to the growth of online education.All these advantages of online education may prompt you to join e learning. However, before you take the plunge and enroll in an online course, please make sure that you are familiar with the methodology of online education.