When Should Someone Not Use WordPress?

When Should Someone Not Use WordPress

You’re probably here because you’ve heard the buzz about WordPress (Alignable’s SMB Index says WordPress is the most trusted software for small business), but are wondering if there are situations in which someone should not use WordPress for their business website.

WordPress is an incredibly versatile website platform — I won’t hide my enthusiasm for it. But there is no such thing as a “best website platform”. There’s only the best choice based on your goals, resources and preferences.

Most website platforms promote with features and price. But like buying a house – price and features don’t tell the whole story. They don’t tell you if this platform is a good choice for your website.

When evaluating whether or not to use WordPress, you need to think about your needs for a website. Do you need flexibility? Support? A mixture of both?

Here’s how to figure out if/when someone should not use WordPress for their business website:

Disclosure – I receive referral fees from companies mentioned on this website. All data & opinions are based on my professional judgements as a paying customer or consultant to a paying customer.

Understanding Tradeoffs: What to Know Before Choosing a Website Platform

Before we dive into the no-WordPress scenarios, it’s important to understand how we’re approaching deciding on a website platform.

Think of it like shopping for a house. You should be evaluating your website provider based on what you want, what you need, and what tradeoffs you are willing to make.

When it comes to your website platform, the main trade-off is between maximum convenience and maximum control. Think of it this like buying somewhere to live.

The absolute most convenient place is a hotel room. It’s safe and furnished with room service. But can you repaint the room? Nope.

On the other extreme is raw land. You have unlimited control to do whatever you want. But is it convenient? Nope.

And in the middle, you have a mix. An apartment has some freedom – but you have landlord. A condo has even more freedom… but you have a HOA and shared property.

A house has even more freedom… but you have more responsibility and you have to deal with an existing building.

Here’s a graphic from my post on ecommerce software (that also applies to website software) to illustrate —

Ecommerce Real Estate Tradeoffs

Using this analogy, WordPress is like owning a house. You don’t have as much control as you would if you just bought raw land and built something yourself, but you have way more control than say, an apartment or condo.

Which means a situation is which you wouldn’t want to use WordPress most likely involves more control (AKA raw land) or more convenience (AKA an apartment/condo/hotel room). Let’s break that down further:

Reasons/Situations Where You Wouldn’t Choose WP:

You Need a Fully-Customized Solution

WordPress’s primary structure is pages, posts, and comments. While the platform does use Plugins (where you can download and “plug-in” third-party pieces of software to make your site look, act, and feel exactly the way you want) that allow the CMS to be turned into literally anything, you should still be operating within the realm of pages/posts/comments if you want to use WordPress.

If you’re looking to build a non-CMS website (think Software as a Service or mega-robust ecommerce platform), then you’re better off building a custom solution. Why?

Because something ultra-specific like the examples above typically require 100% control. Loading up your WordPress site with hundreds of Plugins just to make it close to what you want is just going to slow it down.

This is your raw land example — it’d be easier to build your dream home from scratch than try to manipulate the house you already have or add on a bunch of attachments (Plugins) that may mess with the wiring/airflow/other elements of the home.

You Want Customization But Don’t Want to Handle the Technical

If you’re looking for some customization abilities on your website but don’t want to deal with the more “technical” aspects of managing a website such as self hosting, check out customizations for ecommerce, server management, etc. then a self-hosted WordPress isn’t the best option.

There are two different routes you could go if you want more customization without having to handle controlling the technical aspects of your site.

The first is what I’ll call the 70% Convenience // 30% Control group. These are providers that allow for more control than a totally done-for-you platform (like Amazon, where you have zero customization), but you’re still using their space and rules (in our house analogy, these are the apartments).

These are usually “website builders” like Wix (I reviewed Wix here and you can check out Squarespace here) and Weebly (I reviewed Weebly here. You can check out Weebly here…). They allow you to customize your website and have a custom domain, but the remaining technical elements (like ecommerce integration) are handled for you.

The second group is 50% Convenience // 50% Control. They’re known as hosted platforms and provide as much control as you can have before you have to have your own server.

The biggest advantage here is that you have customer support, seamless “onboarding” and advanced tools. Building a website with these providers is like owning a condominium or leasing a storefront in a mall. The plumbing and “big stuff” is taken care of. You can pretty much do what you want since you do fully own your property. However, you’re going to run into condo association rules and fees.

This would be a provider like WordPress.com which is a hosted version of WordPress or a self-hosted WordPress page builder like BoldGrid. They limit some of what you can and can’t do. For example, you don’t have FTP access to a server, but you can access your HTML/CSS editing and use 3rd party plugins with their business plan.

You can also export your data and migrate it to self-hosted WordPress or another platform with relative ease, making it a good in-between if you want to start with more convenience and migrate to more control in the future.

You Don’t Have Time or Resources

WordPress comes with a learning curve. But given the platform owns 50-60% of the global CMS market share, there are thousands and thousands of pre-made templates, plus designers and developers who know WordPress and are ready to help your firm.

That being said, the trade-off here is time and/or resources. Either you have to take the time to learn the basics of WordPress and keep the software updated like you do the apps on your phone, or you have to know enough to vet these support roles to make sure you’re getting the results you need at a reasonable price.

Not all projects justify this trade-off. A simple website that doesn’t need any advanced functionality or the ability to scale would work perfectly fine as a simple HTML site and may cost you less in time/resources than learning WordPress or hiring a designer and developer to build your WordPress site.

You Have Plenty of Resources

The flip side of having no time and resources is having all the time and/or resources.

This goes back to our first scenario… if you have a team of people and the funds to build and maintain your website for you, you can build whatever you want, including a totally custom website that’s unique to your business and the functionality you need.

With that said, this scenario comes with one big caveat: you’re putting your website in someone else’s control.

Let’s say you have a developer build a totally custom website that only he/she can manage — that takes you out of the driver’s seat and puts that developer in total control. The same applies to a website that only works on one specific platform. A change in mission statement, privacy policy, billing practices, or even simple incompetence can put your business in an insecure position.

If you’re comfortable with putting your website 100% in the hands of someone else, go for it. If not, then you may want to rethink a custom build and brush up on your website management knowledge.

Takeaways

WordPress is like the mid-size SUV of the website building world. It doesn’t fit everyone by any means, but there also good reason that a large plurality has one.

I’ve tried to make it as easy as possible to try WordPress before making any decisions here.

If you don’t have time to run software updates and learn a bit of WordPress jargon, then you should go ahead and pay the extra money for an all-inclusive website builder. Sure, you’re trading control for convenience, but that’s fine.

On the flip side, if you’re very adept at working with developers or have the money to pay for custom builds and don’t mind putting your site into someone else’s hands, then you’d want to research more – especially in regards to ecommerce. WordPress may not be the right fit for you. You can check out some interesting WordPress alternatives here.

Finally, if you’re building something super, super simple, then WordPress may simply be too complex for what you’re looking for. You might just need some cheap hosting or even a simple profile on an existing platform.

The post When Should Someone Not Use WordPress? appeared first on ShivarWeb.

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SBA Express Loans: Your Guide To Terms, Fees, and Eligibility

If you’re a small business owner looking for a faster way to get the cash you need to move your business ahead, an SBA Express Loan may be the right choice for you. When considering a loan (or any business decision), it’s best to understand what to expect ahead of time. Read on to find out more about the SBA Express Loan—and how to get the ball rolling if you decide that’s the right option for you.

Compare Your Options: SBA Express Loans vs. SBA 7(a) Loans

Before digging too deep into SBA Express Loans, let’s clarify that this option is a little different than the typical SBA loan. When we talk about SBA Express Loans vs. traditional 7(a) Loans, the biggest differences are the amounts you can finance and the time it takes you to get the funds you need.

Just like any other type of SBA loan, an SBA Express loan is a long-term loan that you can put to use on almost any expense for your business. An SBA Express Loan, like an SBA 7(a), is backed by the government—and that means that the lenders who participate in the program have a guarantee on some portion of the loan. This guarantee by the Small Business Administration represents less risk for the lender and that means greater accessibility to business funds for you. With any type of SBA financing, you will enjoy lower rates and longer repayment terms with a variety of loan sizes.

There are critical differences between SBA loan products, however, as mentioned above. 

How Much Can I Borrow With The SBA Express Loan?

You can borrow up to $350,000 with an SBA Express Loan. As the name implies, the turnaround time is faster with an SBA Express Loan than with a traditional 7(a) Loan—so if time is of the essence and you need money fast, this type of SBA business loan may be a lifesaver. You could get loan approval from the SBA in as little as 24 – 36 hours (however, approval from the bank will still take several more weeks or months).

The SBA 7(a) loan is also a great option if you need working capital, but it can take some time—you’ll need to factor in at least a few weeks’ time for application processing.

When Is An SBA 7(a) Loan Better Than An SBA Express Loan?

If you need more than $350,000 to finance real estate or working capital—up to $5 million—you’ll need to consider the more traditional avenue of the SBA 7(a). Because there are more approval requirements for an SBA 7(a) loan, you could also enjoy lower interest rates. What’s more, the SBA guarantees 75% – 85% of a traditional 7(a), while it backs only 50% of an Express Loan.

The good news is that they are both long-term loans, so you’ll have plenty of time to pay down the loan amount. The amount of time you’ll have to repay the debt is the same for both 7(a) and Express loans—25 years to finance real estate and 10 years for other fixed assets and working capital.

The Two Main Types Of SBA Express Loans

Within the SBA Express Loan program, you have two avenues — depending on your type of business. The first option is the standard SBA Express Loan. This loan is nearly identical to the typical SBA 7(a) loan as far as how it’s structured and how you use it. Your lender can structure your financing either as a term loan or as a revolving line of credit, and you can use the small business loan for a number of needs, including:

  • Working Capital
  • Real Estate
  • Equipment
  • Inventory
  • Debt Refinancing
  • Other Business Expenses

However, if you’re a business that deals in exports, there’s a loan structured for you, too: the SBA Export Express Loan option.

What Are SBA Export Express Loans?

The SBA supports American export activity through the SBA Export Loan program. While other SBA loan programs guarantee 50% to 85% of the loan amount, the SBA Export Loan guarantees a whopping 90% of the loan. This means it’s going to be easier for you to obtain the loan.

Additionally, your loan proceeds can be used for a variety of business expenses you incur as an exporter, including financing direct or indirect export activities. The Export Express Loan Program is one of three SBA Export loan options; as the name implies, it is a fast-track loan guarantee program and like the other express loan options, is geared for smaller export-related loan needs.

SBA Express Loan Pros & Cons

As mentioned, the two main differences between SBA Express Loans vs 7(a) options are the amount that can be borrowed and the time it takes to approve the loan. It may be a little easier and a lot faster for you to get the funds you need through an SBA Express Loan, but that convenience doesn’t come without cost. Because the SBA does not back as much of an SBA Express Loan (only 50%, as opposed to the traditional 75% – 85% for a 7(a)), you’re going to see higher rates associated with the higher risk. However, if an Express Loan makes the difference between getting what you need to beat an impending deadline or stalling on the tracks—the extra cost may be worth it in the long run.

Want to find out more about what you can afford when it comes to financing your business expenses? Read “Can I Afford a Small Business Loan” and learn more about how to crunch the numbers while comparing SBA rates to make the best decision for your business.

Qualifying For An SBA Express Loan

The good news is that, as previously mentioned, the requirements for an SBA Express Loan are significantly less stringent than they are for a traditional SBA 7(a) loan, but you’ll still need to provide financial information about yourself and your business, along with some additional forms.

When it comes to qualifying for the SBA Express Loan, the things that are going to ultimately matter the most are your cash flow (or projected cash flow) as well as your prowess in managing your business. Also up for consideration are things like your credit score and how long you’ve been in business. In general, you’ll need a credit score of 680 or higher to qualify for an Express Loan.

As far as the documents you’ll need to fill out in order to qualify for your loan, you’ll work through a checklist of required forms, including a Borrower Information Form, a Statement of Personal History, and an Agreement of Compliance (if more than $10,000 in loan funds are being used for construction). The lender who is ultimately issuing the SBA loan will help you work through the process and point you to the right place to start. They will also be working on their end, checking your credit score and history and verifying information about your business.

Where You Can Find SBA Express Loans

When you are ready to move ahead with the SBA Express Loan option, or you just want to learn more, the SBA provides a lender match service. You’ll start by describing what you need and a little bit about your business. In a few days, you’ll receive an email with information about lenders who are interested in issuing your loan. After that, you can then go through the process of talking to lenders and applying for a loan with the lender that is the best fit.

Of course, you have other options outside of an SBA loan. By doing a little digging, you’ll find the most business-savvy option that meets both your short and long-term business goals.

The post SBA Express Loans: Your Guide To Terms, Fees, and Eligibility appeared first on Merchant Maverick.

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Dynadot Review: Pros and Cons of Dynadot as Domain Registrar

Dynadot Review

Dynadot is an ICANN-accredited domain registrar and web host headquartered in California. They were founded in 2002 by a software engineer and state their primary focus is engineering and designing excellence.

Dynadot’s main pitch is to help customers “register domains names and create websites simply and affordably”.

They are one of the myriad smaller domain registrars that have a dedicated but smaller following than the big brands like GoDaddy.

Do they hold up to their mission? Here’s our Dynadot review with pros and cons.

Disclosure – I receive customer referral fees from companies mentioned on this website. All data & opinions are based on my professional experience as a paying customer or consultant to a paying customer.

Pros of Dynadot

Straightforward Search + Purchase Process

Dynadot makes good on its promise to make registering a domain simple. The interface is clean, easy to navigate, and straightforward. There aren’t any bells and whistles, which for a domain registrar is just fine — we don’t need them. What we need is function and usability, and Dynadot’s interface gives us both. It’s basic and directs you to where you need to go.

Dynadot Interface

While Dynadot does offer complementary products (such as websites and hosting — more on that in a bit), the design has no upsells, cross-sells, or visual clutter. There is no distraction from the main action, which is to search and register for a domain, and the checkout process is quick and easy to complete.

Transparent Pricing

There’s nothing more frustrating than going to a domain registrar and having to hunt for pricing information. Dynadot is 100% transparent with their pricing. From the moment you land on the homepage, you can see what .com domains and other popular top level domains (TLDs) are selling for.

Dynadot Pricing

As far as the actual value goes, Dynadot skews toward the cheaper side for first-time purchases and renewals. They’re not as cheap as NameCheap or GoDaddy for a first time purchase of a .com domain (who offer first time purchase promo codes), but their renewal rates are cheaper ($8.99 vs. $13.16 for NameCheap and $15.17 for GoDaddy), and their transfer rates are on par with the rest.

If you’re planning on holding on to your domain for awhile, it could be worth purchasing it elsewhere and then transferring and renewing with Dynadot to save money in the long run.

Variety of TLDs

Now that ICANN allows more TLDs outside of generic .com/.net/.org, website owners have to make sure their domain registrar has all of the variations they need (especially if you’re buying in bulk). Dynadot offers a ton of TLD options that go beyond generic domains, from country-specific domains for international use to category-specific, like technology, real estate, etc.

Dynadot TLD Variations

Upsells

Upsells aren’t inherently annoying or bad. But so many domain registrars make the mistake of bombarding customers with direct sales tactics that they do become annoying.

Dynadot is not one of these domain registrars. While they do offer complementary products such as websites and hosting, they keep them in the background. You can add them from your account dashboard once you purchase a domain, or you can purchase them from the Dynadot homepage, but at no point are you bombarded with pop-ups or forced to navigate through upsells while trying to buy a domain.

Cons of Dynadot

Unclear Next Steps/Management

Dynadot makes registering a domain incredibly simple… but once you register the domain, there aren’t clear instructions as to what to do next. As soon as I was done checking out, I was given a referral code to share with friends and an order pending message with details. There weren’t any instructions on what to do now that I have my domain.

This is fine for those who are familiar with registering domains and building websites, but if you’re new to the experience and looking for guidance, there’s not much to go on.

Even the follow up email I received after my order had been processed was lacking detailed instructions. Again, if you’re experienced in managing domains, this isn’t necessarily a bad thing. But if you’re a beginner and aren’t sure how to set up your nameservers (or what those even are), you’re probably going to be confused. Transfer Code Dynadot

I also found it difficult to actually manage my domain. For example, I couldn’t find where I’d go about transferring my domain when I was logged into my account. I had to click around a good bit (and eventually consult the help forum) to get that information.

This experience relates to “onboarding” which is the jargon for moving a new customer to an active customer.

Complementary Products

It’s important to remember that a domain is not a website. It’s not email or any other service. It’s merely your address online. It helps people locate where your property is by telling browsers/email/etc where to go to get whatever it wants (website files, emails, images, data, etc).

If you want to setup a website, you’ll still need to get hosting or a website builder / ecommerce provider that provides hosting.

Dynadot provides an all-in-one approach with complementary products. You can bundle your domain, website builder, hosting, and email and do it all from their platform.

Typically, this would be a pro —  while I personally prefer to separate my hosting and domains to provide an extra layer of control & reliability in addition to cost savings, many website owners prefer to have them bundled for convenience.

But Dynadot’s complementary products are actually a con due to serious limitations.

For example, Dynadot only offers VPS hosting (virtual private server) rather than the more traditional spectrum of shared hosting paired with a website builder or open-source software.

Dynadot VPS Hosting

While VPS provides a level of control you can’t get with Shared hosting (where every account is treated the same), you have to be technically competent enough to manage your own server resources.

If you don’t like getting in the weeds with your server, the price only makes sense if you know how to use it. It’s a bit like buying the whole chicken at the grocery store and cutting it yourself instead of buying the drumsticks, thighs, and breasts. On one hand, it makes sense if you know how to carve it and are willing to take the time to do it… but most people just want it done for them.

In most cases, if you’re looking to bundle your website, hosting, email, and domain management, then you’re looking for convenience. Dynadot, for all their simplicity in the domain buying experience, doesn’t prioritize convenience in their products. They’re a company founded by a software developer — they’re into engineering and hands-on approaches. That’s fine – but it’s also something to be aware of as a customer. It’s like going to a lumber yard over Home Depot. You get the same thing, but the feel is a bit different.

Next Steps

If you…

  • Want a very simple domain purchasing process
  • Don’t need guidance on how to set up / manage your domain
  • Want to save on domain renewals
  • Are looking for complementary products you can customize to your own needs

…. Dynadot could be a good choice for you.

However, if you’re…

  • Less experienced getting online
  • Need detailed steps on how to set up / manage your domain
  • Want to keep your hosting / website separate from your domain
  • Want complementary products that require less technical expertise

… there are better options out there for you (I use NameCheap). You can take my domain registrar quiz to help you narrow down which might be best for your needs.

Dynadot

Dynadot is an ICANN accredited domain registrar and hosting company founded in 2002. They offer domain registration and management along with complementary products like hosting, website builders, and email.
Dynadot Review
Date Published: 08/29/2018
Simple, straightforward domain purchasing process with cheap renewal rates. Domain management and complementary products are geared toward those with more technical experience.
3 / 5 stars

The post Dynadot Review: Pros and Cons of Dynadot as Domain Registrar appeared first on ShivarWeb.

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Lendio and Merchant Maverick: Making Business Loans Easier

With the advent of online business loans — loans that are fast and easy to obtain online — merchants have more financing options than ever. Before, when business owners needed money, they had to go to a bank or credit union or work with niche funding options like invoice factoring and merchant cash advances. Now, business owners can check their eligibility for a plethora of business financing options from their own computers.

While this is good news for business owners, it presents a new problem: with all the business lenders out there, how do you find the right one for your business? Where do you look for a reputable online lender with decent rates? Merchant Maverick has partnered with Lendio, a business finance company, to answer those questions.

What Is Lendio?

Lendio is an online matchmaking platform that connects merchants to business financers across the nation. Instead of spending time applying for individual loans and comparing offers, merchants who apply for Lendio only have to fill out one 15 minute questionnaire. When you apply, Lendio will shop your business around to its partners and bring you the best offers it received from its network.

With over 75 different partners, Lendio is the largest business finance matchmaking service in America. Their partners offer everything from traditional term loans to more unusual types of financing like merchant cash advances (and everything in between). Below are the types of loans that you might be able to receive through Lendio:

  • Business lines of credit
  • SBA loans
  • Bank loans
  • Short-term loans
  • Medium-term loans
  • Long-term loans
  • Merchant cash advances
  • Business credit cards
  • Equipment financing
  • Commercial mortgages
  • Accounts receivable financing (invoice financing)
  • Startup loans
  • Business acquisition loans

Lendio works with a wide variety of lenders, including well-known brands such as American Express, OnDeck, and Kabbage.

Are You Qualified? Borrower Requirements For Lendio

Anybody can apply for financing through Lendio; however, the company cannot guarantee that you will be matched with any business financers. Currently, about 65% of business owners who apply attain financing through Lendio.

To improve your chances of receiving financing, Lendio recommends that you meet or exceed these business benchmarks:

category minimum requirement

Time in Business

6 months

Business Revenue

$10,000 per month

Personal Credit Score

550

Sound like something you’re interested in? Follow the link below to start an application, or read on to learn more about the application process.

Get Started With Lendio

Step-by-Step Application Process

The Lendio questionnaire can normally be completed in about 15 minutes. After you complete the application, Lendio will shop your request around to its partners and, if they find any matches, will return with quotes within 72 hours. When you have decided on an offer, you may have to complete a full application with the partner before receiving your funds.

The questionnaire contains five steps:

  1. Enter basic info
  2. Enter owner info & make an account
  3. Enter information about your business
  4. Upload documents
  5. Review the application

In all, the application generally takes around 15 minutes to complete. However, because the bulk of the time is dedicated to compiling and uploading various business documents, it may take you more or less than 15 minutes depending on how easily you can access the necessary documents.

The first and longest step is entering basic info. At this stage, you will have to enter general information about your business and the loan you’re looking for. For example, you will have to provide your monthly and annual revenue, your personal income, the industry you are in, and why you want the loan.

The next step is owner info. In this stage, you will have to provide contact info and make an account so you can come back later if you don’t finish.

After owner information, you’ll need to add business info, such as your address and whether or not you are renting.

In the penultimate stage, upload documents, you will have to upload your last three months of bank statements. 

When you have uploaded all the necessary information, the only step left is to review your information and submit the application.

If you run into any problems or have any questions during the application process, support is available via live chat to help you out.

After you submit the questionnaire, Lendio will spend some time gathering offers from their partners before presenting the best ones to your business. If they have found a match, you should receive offers within 72 hours of completing an application. When you have chosen the best offer for you, you might have to supply additional documents, depending on the partner funder. The time from funding to application will vary depending on the partner you are working with. If you’re on a tight schedule, it’s best to inquire how long verification will take before choosing an offer.

Ready to check your eligibility? Click the link below to get started.

Get Started With Lendio

The post Lendio and Merchant Maverick: Making Business Loans Easier appeared first on Merchant Maverick.

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Quick Business Loans: The 6 Best Lenders And 10 Tips For Fast Approval

Good things take time. Patience is a virtue. We all know the sayings. But let’s face it, when it comes to making critical business investments—whether it’s new technology/equipment, a new location, or even just a new employee on the payroll—you usually don’t have unlimited time to come up with the needed funds. A quick loan or line of credit is often the best bet to take your business to the next level (or simply keep your company afloat).

If you’re reading this article, you’re probably in a hurry, so let’s dive right in. Here is a list of the quickest small business lenders, followed by a list of general tips for fast loan approval.

6 Best Lenders For Quick Business Loans

The following are some of the fastest and most reputable small business lenders. There are a lot of speedy “payday” loans out there, but most of them are dodgy at best (and outright scams at worst) and will end in you paying back way more money than you anticipated. The following lenders are reputable, and while the fees might be higher than what you’d pay with a bank, the financing offered is much faster and easier to qualify for than a bank loan.

We chose these lenders based on their stellar reputation and user feedback, as well as our own experiences reviewing their services.

One term you need to understand before we get started is “time to funding.” This refers to the amount of time from submitting the initial application to when the funds arrive in your account.

Top Quick Business Loans At A Glance

categories OnDeck/Credibly LoanBuilder/BlueVine Fundbox/Kabbage

Borrowing Amount

$5,000 – $500,000

$5,000 – $500,000

Up to $100,000

Term Length

3 – 36 months

13 – 52 weeks

12 or 24 weeks

Required Time in Business

12 months

9 months

N/A

Required Sales

$10,000 per year

$42,000 per year

N/A

Required Credit Score

550

550

N/A

Review

Review

Review

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Visit Site

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Borrowing Amount

$5,000 – $250,000

Up to $5 million

Up to $250,000

Term Length

6 – 24 months

13 weeks (invoice factoring)

6 – 12 months (line of credit)

6 or 12 months

Required Time in Business

6 months

3 months (invoice factoring)

6 months (line of credit)

12 months

Required Sales

$15,000 per month

$100,000 per year (invoice factoring)

$120,000 per year (line of credit)

$4,200 per month

Required Credit Score

500

350 (invoice factoring)

600 (line of credit)

N/A

Review Review Review

Visit Site

Visit Site

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1. OnDeck

ondeck logo

Time To Funding: 2–5 days

The Basics: OnDeck is one of the few reputable online lenders willing to lend to less-than-qualified candidates: to qualify for a short-term loan ranging from $5,000 to $500,000 or a line of credit up to $100,000, you’ll only need a credit score of 500, 12 months in business, and $100,000 annual revenue. OnDeck has somewhat higher factor rates than some its competitors in the short-term lending space, but they have a good reputation for transparency, and it might be worth paying the extra cost if you have poor credit and need fast funds.

The Application: OnDeck’s application is fast and easy, and they don’t ask for a lot in terms of documents.  To make the process even faster, have all of this information ready to submit:

  • Business Tax ID
  • Bank statements for the previous 3 months
  • Social Security number of business owner(s)
  • Driver’s license number and state of issue

When applying, take advantage of the live chat feature so that the rep can guide you through the application and answer any questions you might have. After you submit your application, a rep will typically reply with an offer within 24 hours, and after you accept the offer, the money will be in your account within one or two days.

Another cool thing about OnDeck for customers who want fast funds? If you have an eligible debit card linked to your business bank account, you can take advantage of OnDeck’s Instant Funding, wherein you can transfer your line of credit funds to your account instantly, rather than waiting the standard 1-2 days for an ACH transfer.

Apply For An OnDeck Loan

2. LoanBuilder: A PayPal Service

loanbuilder logo

Time To Funding: 1–3 days

The Basics: LoanBuilder, a business financing service offered by PayPal, can potentially put money in your account in just a day. Like OnDeck, LoanBuilder offers short-term loans of $5,000–$500,000. They will lend to applicants with bad credit and newer businesses as well (minimum credit score of 550 and 9 months in business).

LoanBuilder has moderately high rates, but these are competitive with or lower than those of similar lenders. Additionally, this lender does not charge an origination fee, which means no money will be subtracted from the total loan amount. Also, repayments are automatically deducted from your account on a weekly, rather than daily basis (unlike many other short-term lenders). Keep in mind that you will have a maximum of 12 months to finish repaying your loan, and the combination of weekly repayments plus a short repayment term means your loan repayments will be higher than they would be with other types of business financing products.

One great thing about LoanBuilder is that what you see really is what you get. All fees and terms are spelled out before you see the loan and you even have the option to adjust the loan terms to your liking to “build” the perfect loan. LoanBuilder has a tool that lets you tinker around with your prospective loan before applying. For example, if you want longer repayment terms, you can adjust the term and see how that will affect your weekly repayments.

The Application: To apply for a LoanBuilder loan, simply fill out a 5-10 minute online questionnaire. If your business is eligible, you will be able to fill out a complete application. In some cases, the only required documents might be four months of your recent business bank statements. LoanBuilder says that signed contracts received before 5 PM will lead to funds being deposited the next day so long as all documentation is in order.

In terms of ease, transparency, and the reputation for speed and quality synonymous with the PayPal name, LoanBuilder is a great choice for small businesses who want fast funding, even those with bad credit.

Apply For A LoanBuilder Loan

3. Fundbox

fundbox loans

Time To Funding: 1–2 days

The Basics: Fundbox provides invoice financing and revolving lines of credit up to $100,000. Repayment terms are for 12 or 24 weeks, depending on the product and what works better for your business.

Fundbox has no minimum credit score requirement or time-in-business requirement, making its line of credit product, “Direct Draw,” a good loan for businesses with poor credit or little time in business. Meanwhile, Fundbox’s invoice financing offering, “Fundbox Credit,” is a favorite of companies that have cash flow problems due to outstanding invoices; Fundbox will lend you the full value of the unpaid invoice(s) with a 0.5–0.7% weekly borrowing fee.

The only borrower requirement to qualify for Fundbox financing is that you use compatible accounting or invoicing software for at least 3 months, or a compatible bank account for at least six months.

The Application: To apply, simply make an account, enter some basic information (such as your name, email, and phone number), and hook up your accounting or invoicing software account or your business bank account. Fundbox typically makes a decision within minutes of receiving your application, after which you can start requesting funds immediately should you accept their offer.

Fundbox requires very few fees—you will not have to pay a draw fee or a prepayment penalty. Although Fundbox’s borrowing rates are higher than what you’d get from a bank, they are in line with other online lenders’ fees. Having a revolving line of credit like the kind Fundbox offers is also a good way to ensure you never need to take out another fast business loan, because you’ll always have access to cash on-demand.

All in all, Fundbox is one of the fastest small business loans around. It’s an excellent option for businesses that struggle with cash flow issues, especially less-established businesses that can’t qualify for a bank line of credit.

Apply For A Fundbox Loan

4. Credibly

credibly loan

Time To Funding: 2–5 days

The Basics: Credibly offers short-term loans and merchant cash advances with loan amounts of up to $250,000. This lender has relaxed borrower qualifications—to be approved for their business expansion or working capital loan, you only need a credit score of 500, 6 months in business, and revenue of $15,000 per month. For expansion loans, your average daily balance needs to be at least $1,000. As is the case with most business lenders, more qualified applicants will receive better interest rates.

The Application: To prequalify for a Credibly loan, use the easy online application to enter some basic information about yourself and your business. Credibly will then let you know whether you’re eligible and how much money you qualify for. If you’re eligible, a representative will call you and work with you to get the rest of the documentation you need. The docs you might need to supply include:

  • Business lease agreement or business mortgage statement
  • Picture ID of all business owners
  • Most recent business tax return
  • Bank statements for the last 3 months

After you send all the documents, it typically takes about a day to receive a finalized quote. Should you accept the offer, it takes about 1-3 days to receive the funds in your account. Note that while Credibly advertises 48-hour funding, that means you will receive the funds within 48 hours from the moment your loan application is approved.

We like Credibly for their transparent terms, easy application, low borrowing prerequisites, and responsive customer service.  Credibly is one of the few, well, credible players in the short-term lending space.

Apply For A Credibly Loan

5. BlueVine

Time To Funding: 2–7 days

The Basics: BlueVine offers invoice factoring as well as traditional lines of credit up to $5 million. Borrower qualifications vary by product. The minimum required personal credit score for a 6-month line of credit is 600. The minimum score for invoice financing is just 530; for this type of financing, your customers’ creditworthiness is a bigger consideration than your own.

The Application: The process to pre-apply for either the invoice financing or line of credit service is fast and simple: simply create an online account and answer some basic questions about yourself and your business. You’ll also need to provide either the most recent three months of bank statements or allow read-only access to your bank account. A BlueVine rep will then call you and walk you through the process and answer any questions.

Initial approval for either service takes about a day. Once you are approved, you can begin drawing from your credit line or selling invoices immediately. Money transfers normally take one to three business days. If you’re selling an invoice from a customer unfamiliar to BlueVine, it will take an additional 24 hours to see the funds in your account, because BlueVine has to assess your customer’s creditworthiness.

Apply For BlueVine Financing

6. Kabbage

Time To Funding: 2–3 days

The Basics: Kabbage is one of the quickest channels to get a business line of credit. Kabbage sells lines of credit up to $250,000, with zero required collateral – no blanket lien and no personal guarantee. Kabbage also provides borrowers with a spending card so you can spend funds from your line of credit instantly, without having to wait the typical 2–3 days for an ACH transfer period.

Note that Kabbage is bad-credit friendly and does not have a specific credit score requirement. However, the service not suitable for startups; to qualify, you need 1 year in business and must have made at least $4,200 for the last 3 months. It’s also important to keep in mind that while Kabbage is super convenient, this convenience isn’t free—fees are on the high side, and you’ll have to pay back your loan in just 6 to 12 monthly payments. Nevertheless, Kabbage a fast and easy way to get a line of credit if you don’t qualify elsewhere.

The Application: When applying for Kabbage financing, you will have to allow read-only access to your business bank account and any other data channels you use (such as PayPal or QuickBooks). Kabbage uses this information to determine your monthly fee and maximum credit line. Usually, it only takes a few minutes for the system to decide whether to approve or deny your application. Kabbage might request additional information in order to grant you a credit line larger than $150,000.

When you have been approved, you can begin requesting funds immediately. As mentioned, you can also request a Kabbage Card free of charge to pay for goods and services right from your credit line.

Apply For A Kabbage Line Of Credit

Which Loan Should I Apply For?

So, now you know of some quality lenders that can put money in your account within days of your application. To determine which loan is right for your business, consider the services they offer (and how well these services meet your needs) and whether you meet the lender’s minimum qualifications, which are as follows:

  • OnDeck: Short-term loans up to $500,000 and lines of credit up to $100,000; need 12 months in business, 500 credit score, and $100,000 in annual revenue
  • LoanBuilder: Short-term loans up to $500,000; need 9 months in business, 550 credit score, and $42,000 in annual revenue
  • Fundbox: Revolving LOC and invoice financing up to $100,000; need to have been using compatible invoice or accounting software for 3+ months, or compatible business bank account for 6+ months.
  • Credibly: Short-term loans up to $250,000; need 6 months in business, 500 credit score, and $15,000 in monthly revenue.
  • Bluevine: Lines of credit and invoice financing up to $5 million; for invoice financing need 3 months in business, 530 credit score, and $100,000 in annual revenue; for 6-month line of credit need 6 months in business, 600 credit score, and $120,000 in annual revenue.
  • Kabbage: Lines of credit up to $250,000; need 12 months in business and monthly revenue of $4,200 for the last three months, or $50,000 annually (no specific credit score requirement).

Note that if you only meet the bare minimum requirements, you may not be eligible to borrow the maximum amount advertised by each lender; your qualifications will determine how much money you can borrow.

The above loans are unsecured (meaning they don’t require you to list any specific business collateral), though borrowers may have to sign a blanket lien and/or a personal guarantee.

Fast Loan Approval Tips

How fast your loan is approved and received depends in large part on you. For example, if you procrastinate in turning in the necessary documents needed to get approved for a loan, or you apply for loans you aren’t qualified for, you will be wasting precious time!

What follows are some general recommendations to ensure a speedy time to funding. This includes pre-application preparedness tips to make your application process quicker, advice on what to include in your application in order to get approved fast, and considerations as to which type of quick loan you should apply for.

1. Check Your Credit Score

First, you want to check your personal credit score so you don’t waste time applying for loans you’re not eligible for. Of course, if you want to position your business to get good rates on a “quick” loan, you’ll want to your credit score to be as high as possible. While improving your credit is not something you can do overnight, before applying for loans, be sure to at least check your credit history to see if there are any major issues. Also, pay off whatever outstanding debts you might have (if you can afford to do so).

To check your credit score before you start applying for fast loans, you can use one or more of these Best Free Credit Score Sites. And whatever you find, don’t worry—there are still plenty quick financing options even if your credit score isn’t high enough to qualify for every loan.

2. Have Your Documents Ready

Having all your business documents ready and in one place will make for a speedier application process. Here are some examples of documentation the lender might ask for:

  • Tax returns (personal and business)
  • Seller’s permit
  • EIN certificate
  • Business license
  • Balance sheets
  • Bank statements
  • Proof of ID
  • Proof of address
  • Incorporation paperwork
  • Copy of business lease

Different lenders may require different and more/fewer documents. It’s a good idea to find out what paperwork the lender requires before you get pre-approved.

3. Prepare A Proposal

Many lenders require your loan application to include a detailed proposal and/or a business plan. This is often true even of “quick” loans. A proposal generally includes information such as how much money you need, what you will use the money for, and how you will repay the loan. As with your all your important business documents, the loan application process will be speedier and smoother if you have this information prepared and ready to go before you apply.

This resource from the SBA includes the information you should include in a loan proposal – although you should note that the SBA requires more information than do most “fast loan” options.

4. Be Thorough On Your Application

The more relevant information you reveal about yourself and your business on your loan application, the better. The whole process will be faster and less painful if you provide everything upfront. That way, there will be less back and forth between you and the lender as they work with you to get the information you didn’t supply initially. You are also more likely to get approved for a loan if you have a more thorough application.

5. Consider All Your Options (Even Unconventional Ones)

Assuming you have all your ducks (and docs) in a row, it’s time to look at your best options in terms of financing. In some cases, you might not even want to get a “loan” in the traditional sense; a line of credit or cash advance might be a faster or better option for you, depending on your situation. If speed is of the essence, you should consider the following loan products, through which you can potentially get funds as soon as a day or two of applying:

  • Short-term installment loan
  • Short-term line of credit
  • Merchant cash advance
  • Equipment financing
  • Invoice financing

You also might want to consider the following unconventional financing options:

  • Peer-to-peer loans
  • Business crowdfunding
  • Personal loan
  • Microloan

All fast financing options have their own pros and cons, of course. Merchant cash advances, for example, tend to be some of the most expensive forms of capital, though they are usually the fastest. Of the unconventional options, P2P loans and personal loans tend to be the fastest, but you’ll generally need to have good personal credit in order to qualify for these options.

6. Apply For Online-Only Loans

So here’s the quick-and-dirty about bank loans vs. online loans: bank loans are not only much more difficult to qualify for, they also take a lot longer to come through than online loans. If you want your loan fast – potentially even as soon as a day or two – online is the way to go. Interest rates are typically higher than with bank loans, but if you shop around, you might be able to get a low-interest small business loan online, especially if you have good credit.

7. Use A Loan Aggregator

A loan aggregator service lets you apply for multiple online business loans at once. Using a service lendio logolike Lendio you can fill out a single application with your business information and be pre-approved for multiple loan options. This is one of the quickest way to apply for online loans, as you save the time it takes to apply for multiple loans individually. Loan matchmaking services are also typically free; if you do accept a loan offer, the lender pays a referral fee to the matchmaker. You never have to pay the matchmaker directly.

Compare loans with Lendio

8. Consider An Online/SBA Loan Hybrid 

If you’re looking to borrow from the SBA, you probably know this isn’t the fastest form of financing around. And if speed is your top priority, you probably shouldn’t bother applying for an SBA loan, bank loan, or any other type of long-term loan. With that said, the SBA offers high quality, low-interest loans, and if you qualify for one, it might be worth waiting a little extra time for. To make the SBA loan application process faster and easier, you can apply for an online/SBA loan hybrid.

SmartBiz is one example of an online service that facilitates SBA-backed loans. Your funds might still take up to a few weeks to come through, but it will be quicker than applying directly through the SBA.

9. Don’t Forget About Your Business Credit Card

Taking out a business loan isn’t your only option if you need fast cash. You can also charge major expenses on your business credit card and pay them off later as you are able. Be sure to check out the Best Business Credit Cards for 2018 to find a good credit card that earns rewards and doesn’t charge an exorbitant amount of interest.

If you need a large sum of liquid cash, you might also consider a credit card cash advance. You need minimal qualifications in order to qualify for such an advance; if you have a business credit card, you will probably be approved for an advance. Once you sign up for your card’s cash advance program, you can typically begin withdrawing cash right away.

The downside to credit card cash advances is that the APR and cash advance fees are usually quite high. Since you’re borrowing against your own credit limit, this can also temporarily lower your credit score by affecting your credit utilization ratio. Nevertheless, credit card advances are a fast and easy business loan alternative available to virtually anyone who has a credit card.

10. Don’t Be Too Hasty

Finally, when getting a fast business loan, it’s important to take your time and read the fine print. In many cases, the super-quick “next-day” loans you find online will have less than ideal terms. You’ll likely have to pay your loan back rapidly at a high rate of interest.

Ideally, of course, you will find a great lender that gives you a fair rate and terms. Check out our Small Business Loan Calculators to calculate your total repayment, financing cost, daily/weekly/monthly payments, APR, and cents on the dollar.

Final Thoughts

Fast business loans can serve as a lifesaver for businesses that need working capital, have cash flow problems, and other financing issues. Although banks can take weeks to issue business loans (if you can even get approved for one), alternative lenders can put money in your bank account within a couple days. However, the reason that online/alternative lenders are willing to give you money so quickly is that you are paying a premium for speed—meaning, you’ll pay more than you would for a bank loan, and you’ll pay the loan back much quicker than you would other types of financing.

To avoid getting ripped off by a predatory lender or agreeing to a bad loan because you are desperate, be sure to compare multiple loan offers. It’s important to do your due diligence to ensure you get the best loan possible, i.e., the one with the lowest fee and repayments you can reasonably afford. Remember that you can pre-apply for multiple loans online without affecting your credit score.

Bear in mind that there are indeed some legitimate, quality lenders (like the ones on this list) that provide quick capital. What’s more, you can take certain actions to speed up your loan application process and time to funding. Be sure to organize and present all your business documentation at the start of the application process. And save time by applying for multiple loans at once with a loan matchmaker service like Lendio.

Lender Borrowing Amount Term Interest/Factor Rate Req. Time in Business Min. Credit Score Next Steps
$2K – $5M Varies As low as 2% 6 months 550 Apply Now
$5K – $500K 3 – 36 months x1.003 – x1.04/mo 12 months 500 Apply Now
$5K – $500K 13 – 52 weeks x1.029 – x1.1872 9 months 550 Apply Now
$20K – $500K 1 – 4 years 7.99% – 29.99% APR 2 years 660 Apply Now

The post Quick Business Loans: The 6 Best Lenders And 10 Tips For Fast Approval appeared first on Merchant Maverick.

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Is WordPress Easy To Use For eCommerce?

If you know anything about web development, you know about WordPress. WordPress is now the most popular Content Management System (CMS) in the world, powering over 31% of websites globally. In fact, WordPress is the software behind the very website you’re currently on!

As an everyday WordPress user myself, I can say with confidence that WordPress is a great CMS for many purposes, including online selling. The software is open-source and popular, meaning that it’s fully customizable and that there are plug-ins available to extend the functionality of the software.

While it’s true that WordPress was originally built as a blogging platform, several eCommerce plugins make it possible to transform your website into a full-fledged online store. In this article, we’ll be taking a look at three of the most popular eCommerce software systems that work with WordPress.

But first, let’s take a look at WordPress as a stand-alone software.

Is WordPress Easy To Use?

WordPress is a very learnable software. The software is fairly easy to use once you get the hang of things. However, this initial learning process may take some time.

This is particularly true if you are new to web development. As open-source software, WordPress is not exactly plug-and-play. In order to get your site online, you’ll have to find your own web host and then install WordPress on your hosting account. In addition, you will be responsible for maintaining your site’s security.

Once you’ve finished setting everything up, you will find that when it comes to daily operations, WordPress is very usable.

As you consider using WordPress for your online store, you’ll have to keep in mind the pros and cons of the software. Here’s a quick breakdown of those advantages and disadvantages:

Pros

  • Open Source: Because WordPress is open source, you have the freedom to modify the software however you choose. In addition, you can choose to sell your modifications to other users!
  • Free: WordPress is free to download and use. However, you should note that operating a website comes with other expenses. Take a look at our “Cons” list for more information.
  • Large User Community: With so many bloggers, sellers, and developers using WordPress, you can expect to find lively community forums in WordPress’s support resources. Get help from fellow users or purchase plug-ins from a wide range of developers.
  • Reliable Software: You can depend on WordPress as a glitch-free CMS.
  • Lots Of Plug-Ins Available: WordPress and third-party developers alike have put out thousands of plug-ins that you can purchase and install to add features to your platform.

Cons

  • For Do-It-Yourselfers Only: When you use WordPress, you will be responsible for managing your web hosting and site security.
  • Some Experience Required: You either must have some experience editing HTML/CSS or you must be willing to learn.
  • Limited Technical Support: WordPress offers some support via email and live chat. However, for the most part, you’re on your own when it comes to technical issues.
  • Common Target For Hackers: Open source software is often the target of security attacks. You’ll have to keep an eye out for any new security patches.
  • Difficult To Estimate Total Costs: Although WordPress is free to use, you will still have to pay the typical costs of operating a website. You’ll need to pay for hosting, an SSL certificate, a theme, and any plug-ins you choose to use.

Now you know a bit more about the usability of WordPress, let’s start talking about our favorite eCommerce plug-ins for WordPress! All three of the following plug-ins are affordable, easy-to-use, and easy to integrate with any WordPress website.

Let’s get started!

WooCommmerce

WooCommerce is a free, open source eCommerce plug-in that is designed specifically to be used with WordPress. WooCommerce fits businesses of all sizes, from startup to enterprise. In fact, WooCommerce has been downloaded over 48 million times, making it one of the most popular eCommerce solutions in the world.

WooCommerce is easy to incorporate into your WordPress site. All you have to do is install and activate the WooCommerce app in your “Plug-ins” tab. Activating this plug-in turns your blogging back-end into an online store admin. Take a look:

In this dashboard, you can manage everything for your online store. For example, you can create products, access pending orders, adjust shipping setting, enter product information, and set up inventory tracking.

WooCommerce provides enough features to handle all the basic operations of online selling. Everything else is available as an extension. Here are a few of the features built-in:

  • Sell Digital & Physical Products
  • Inventory Management Features
  • Shipping Calculator & Shipping Options (Pickup, Local Delivery, Calculated Shipping)
  • SEO Features
  • Coupons & Discounts

WooCommerce offers lots of themes to choose from. Most of these are designed by third-parties; however, WooCommerce also creates its own designs called “WooThemes.” We recommend you stick with these WooThemes as they tend to work best with WooCommerce updates. For the most part, in order to change large aspects of these designs, you will be required to edit the HTML and CSS.

Like WordPress, WooCommerce offers very limited customer support to their customers. You are mostly on your own. Fortunately, WooCommerce does have a detailed knowledge base as well as a supportive user community to help you through any difficulties.

We love WooCommerce for its customizability, its scalability, and of course, its price. To learn more about WooCommerce, take a look at our full review of the software. Or, download WooCommerce today to test it for yourself.

Ecwid

Another plug-in you might consider using is Ecwid. Ecwid is an eCommerce software that lets you incorporate shopping cart widgets–such as buy buttons or a full online store–into any pre-built website. Ecwid is a perfect solution for small to medium-sized businesses that want a simple way to add an online store to their website. Over one million merchants currently use Ecwid for their online selling.

Ecwid is a SaaS (software as a service) solution, which means that although you have to find hosting for your WordPress site, hosting for your Ecwid store is already included. Instead, you’ll just have to pay a monthly price to use the software. This price depends primarily on the number of products you plan on listing. Each step up in pricing also includes more advanced features. Take a look below for a quick breakdown of pricing:

  • Free Plan: $0/Month
    • 10 Products
  • Venture: $15/Month
    • 100 Products
  • Business: $35/Month
    • 2,500 Products
  • Unlimited: $99/Month
    • Unlimited Products

To add Ecwid to your WordPress account, sign for an Ecwid account at ecwid.com. Then, install and activate the app in your WordPress dashboard. Completing these actions will let you make changes to your Ecwid store from WordPress.

Here’s a look at Ecwid’s dashboard within WordPress:

Alternatively, you can choose to manage your store from Ecwid’s own dashboard. Since the two programs are now connected, every change you make in Ecwid will be reflected in your WordPress site. Here’s Ecwid’s dashboard:

We recommend using Ecwid’s dashboard to manage your online store. We think Ecwid’s dashboard is more intuitive and easier to use in general.

Using Ecwid will give you access to many of the necessary selling features. Here are a few of our favorites:

  • Buy Buttons
  • Multi-Channel Selling
  • Real-Time Shipping Rates
  • Promotions & Discounts
  • Sell Digital Products
  • Mobile Management App

Ecwid supplies users with one Starter Site theme that you can use to develop your storefront using drag-and-drop tools. There are also third-party themes available as well as HTML and CSS editors for more in-depth customization.

As is typical with SaaS solutions, Ecwid provides technical support through several channels. Your pricing plan will determine how you are able to reach customer support, whether that is through email, live chat, or phone. Everyone has access to a knowledge base and community support forums. Remember, Ecwid can only help with issues related to their software. They do not provide WordPress support.

Ecwid is a great solution for any merchant who’s looking for a simple way to sell products on their website. The app is easy to use with WordPress, it’s affordable, and it works. For more information, read our full review or sign up for Ecwid’s free plan to try it out.

Selz

Selz, selz review

Selz is another SaaS shopping cart solution that plugs into any website. Like Ecwid, Selz offers users both ease of use and versatility. Selz gives merchants the option of adding eCommerce features to any website in a variety of ways. You can choose to add an online store to an established website, embed buy buttons for select products, sell directly on social media, or set up a fully hosted online store.

Selz is designed for startups, artists, writers, and musicians, and the platform currently serves over 100,000 merchants worldwide. Ease of use is Selz’s strongest feature, which is wonderful for many beginning merchants.

On the other hand, sometimes Selz’s ease of use can be a limiting factor for sellers who are looking to grow. Selz does not offer many advanced features or integrations. Nevertheless, many sellers find that Selz fits their needs perfectly.

As a SaaS solution, Selz charges a monthly fee for the use of their software. There are four plans to choose from. These plans are organized by the number of products you plan to list. Additional features are available on higher level plans. Here’s a quick overview of pricing:

  • Free Plan: $0/Month
    • 5 Product Maximum
    • 2% Transaction Fee
  • Lite Plan: $19/Month
    • Unlimited Products
    • 2% Transaction Fee
  • Standard Plan: $29/Month
    • Unlimited Products
    • 1% Transaction Fee
  • Pro Plan: $49/Month
    • Unlimited Products
    • 0.5% Transaction Fee
    • No Transaction Fee If Using Selz Pay

To add Selz to your WordPress site, you’ll have to create a Selz account and then install and activate the Selz app in your WordPress dashboard.

Then, head back into your Selz dashboard. Using this dashboard, you can create products and discounts, process orders, and manage shipping settings. In order to test your setup with WordPress, you should add at least one or two products.

Now, you can decide how you’d like to add eCommerce to your site, whether that’s via buy buttons or an entire online store. When you make your decision, you’ll just have to follow Selz’s instructions to add products to your WordPress site.

During my testing, I decided to add my entire Selz store to WordPress. I looked into Selz’s instructions, but I had a bit of difficulty locating the correct buttons. I eventually figured out that WordPress’s new Gutenberg editor was complicating the process. Selz has not yet updated their support documentation to provide instructions for this new WordPress version. When I switched back to WordPress’s older Classic Editor, I was able to quickly integrate my store.

While both WooCommerce and Ecwid give you access to store management features within your WordPress dashboard, this is not the case with Selz. In order to add new products, process orders, etc. you will have to log back into your Selz dashboard.

Selz offers the basic features you need for online selling. Although Selz focuses mostly on the basics, they do include a few advanced features such as abandoned cart recovery and digital downloads. Take a look at a few of Selz’s features:

  • Sell Anywhere
  • Sell Physical & Digital Products
  • Real-Time Shipping Rates
  • Pay What You Want
  • Discounts & Coupons
  • Multi-Currency Capabilities
  • Abandoned Cart Recovery

When it comes to web design, Selz users are all set. There are 25 beautiful, image-focused designs to choose from, and they’re all free. Users can customize these designs by using the drag-and-drop editor or the HTML/CSS editors.

Support is available for all Selz users in the form of 24/7 live chat and email. There is also a Help Center full of useful documentation for users who prefer a do-it-yourself approach. As always, you’ll have to keep in mind that while Selz representatives love to help you use their software, they can’t help when it comes to WordPress difficulties.

Selz is a perfect solution for makers and startups who want to get their online stores started quickly. In particular, Selz works well for merchants who want to offer lots of digital products. If this sounds like you, head over to our full Selz review for more information. Or, you can take a look at Selz yourself.

Final Thoughts

So, is WordPress easy to use for eCommerce? We certainly think so, especially when you use the right eCommerce plug-in.

Take a deeper look at any of the three options we present above, and don’t be afraid to test out the plug-ins before you commit. All of these eCommerce solutions offer a free platform (or free download) so you can integrate the software with your WordPress site without paying a dime. And if you decide it isn’t a good fit for you, it’s easy to deactivate the integration. In fact, it just takes a few clicks.

So, what are you waiting for? Head over to our reviews or sign up for one of these shopping carts and get testing!

The post Is WordPress Easy To Use For eCommerce? appeared first on Merchant Maverick.

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Register.com Domain Registrar Review: Pros, Cons, and Alternatives

Register Review

Register.com is a domain registrar owned by Web.com (one of the largest and oldest website hosting/builder brands in the industry). They were one of the first give companies chosen by ICANN to participate in the initial test phase of the new competitive shared registry system, making them one of the oldest and most established domain registrar companies in the game outside of Network Solutions.

Aside from domain purchasing and management, Register.com offers a range of products, from marketing to hosting to web design. Their main pitch is that their services and solutions cover all ranges of business sizes and especially help small businesses build their web presence without the need for technical experience.

Given Register.com has a certain level of brand recognition and clout, I decided to try them out as a domain registrar. Here’s my Register.com review – structured with pros & cons based on my recent experience as a customer.

Skip to the conclusion & next steps here.

Disclosure – I receive customer referral fees from companies mentioned on this website. All data & opinions are based on my professional experience as a paying customer or consultant to a paying customer.

Pros of Register.com

There are a lot of Register.com reviews online – usually with user-generated reviews based on anecdotes and personal experience. That’s fine, but I take a different approach. There is no such thing as a “best” domain registrar. The “best” is the right fit for your project based on your goals, budget, experience and expertise. Just because one company is not a good fit for you does not mean it’s not a good fit for someone else.

Register.com is different. Their only pro is their brand name and corporate history. They do offer domain registration & web services, but they simply do not excel at providing any value beyond the assurance of their brand name.

Based on my professional opinion, they are a classic case of a company coasting on their name while other companies out-compete on raw value.

Even for “meh” companies, I try to pull out some reasons to choose them over others. But I really could not find a single reason to use Register.com over someone else besides their brand recognition and positioning. I liken Register.com to finding a McDonald’s at an Interstate exit in the middle of Kansas. Even if you dislike everything about McDonald’s, if it’s the only recognizable option and you’re hungry, you’d probably choose them.

But the Internet is not a highway exit in Kansas. There are so many other choices that are just a click away. Which means while Register.com carries corporate clout, that clout doesn’t outweigh the lack of value.

If you’re curious about the details, I’ll cover more in the cons section below. If not, you can skip to the conclusion and next steps for alternative options.

Register.com Cons

Convoluted Domain Buying Experience

The actual process of buying a domain from Register.com is pretty horrendous, especially compared to the big leaps in UX that other companies have made..

For starters, when you search for a domain, Register.com automatically adds it to your cart if it’s available without showing any pricing information. Even if I search for just the root of a domain and don’t specify the TLD, the .com version is still automatically added without me knowing the price.

There also isn’t pricing information for suggested domains. This complete lack of transparency with pricing is one of the company’s biggest flaws (more on that in a bit).

register.com domain registration process

Next, I tried to see my cart to view pricing info, but I was forced to create an account first. Personally, this makes me uneasy. I’m already feeling iffy with the lack of pricing transparency and the auto add to cart… now I can’t even review my cart without signing up with Register.com? No bueno.

register.com account sign up process

Once I was able to finally see my cart contents, I learned my domain would cost $5, but I have to pay an additional $11 for private domain registration. There appears to be a discount applied, but to get details you’ll have to click through for more information.

register.com pricing discount

However, with the information provided, I have no idea how much it will cost me to renew my domain each year.

Register.com Renewals

Aside from the pricing issues, the checkout process was also littered with upsells. Which brings me to…

Upsells

When a domain registrar offers complementary products (like hosting, website builders, etc.), I expect some upselling. It’s not inherently bad or annoying — it’s an option for customers who want complementary products but also keeps prices low for those who don’t.

So when I see a registrar is upselling, I try to pay special attention to how. Is it subtle and user-friendly? Or does it stall what I’m actually trying to accomplish?

Register.com does two things wrong with upsells. First, they appear at nearly every opportunity instead of only when I’m looking (AKA at checkout or in an upgrade section). Plus, the upsells in checkout impede my progress (there were at least two upsells I had to click through before I could enter my payment information).

Register.com Upsell 1 Register.com Upsell 2

Second, their messaging for many upsells is so oversimplified, it’s misleading. Take this messaging about my online effectiveness score…

Register.com upsell messaging

The combination of oversimplified and frequent upsells is both annoying and makes me wonder who they’re really looking out for.

Pricing

As I mentioned earlier, one of the biggest cons of Register.com is their lack of transparency in their pricing. I couldn’t find a full list of prices for TLDs, and when I searched for domains, none of the options provided had prices listed.

register.com pricing info for TLDs

Unfortunately, the complications don’t end there.

When I purchased my first domain, I could get a few basic TLDs (.com, .org, etc.) for $5 with a first-time discount that applied to my first three domains.

However, if you log back in during a new session, you’ll have to manually enter the promo code, and if you try to create a new account, you may not get the promo — it appears Register.com aggressively tag new users with cookies to prevent promotions.

After that promo was up, my next .com domain was $38 plus an additional $11 for privacy.

register.com pricing after promo

This is outrageously expensive for a simple domain. Even a big brand like GoDaddy will sell a .com domain at $11.99 and renew at $14.99, while more up and coming brands like Namecheap will sell at $2.98 and renew at 12.98 for .com domains.

Transparency (Or Lack Thereof)

All of Register.com’s cons can essentially be summed up into one glaring issue: a lack of transparency. I couldn’t find a comprehensive list of domain pricing by TLD, nor could I find a comprehensive list of TLD options. I couldn’t check out without upsells, but it’s unclear which upsells I really need due to oversimplified messaging.

All in all, the experience made me very wary of Register.com. I’m all about information — I like to know what to expect and to compare options. When there’s such an obvious lack of information, it makes me wonder why that info isn’t provided.

Conclusion + Next Steps

Overall, I was throw by how bad Register.com was. I figured for a company that carries such brand recognition, surely there has to be some value… but I really couldn’t find anything besides their corporate name. If you are still sold on them, go check them out here.

But remember… this isn’t an interstate exit in Kansas with only one recognizable option! So with that said…

If you still want to purchase domains from a well-known brand but want some deep discounts, check out GoDaddy here.

If you prefer an overall excellent domain registrar with the best long-term pricing, then I recommend checking out NameCheap here.

And if you want to just get a domain with your hosting company to keep everything convenient, then take my hosting quiz to find the right company for you.

Register.com

Register.com is a domain registrar owned by Web.com (one of the largest and oldest website hosting/builder brands in the industry). They offer domain registration and complementary products such as hosting and website builders.
Register.com Review
Date Published: 08/28/2018
Register.com is a classic example of a company riding on its name while getting outdone by other companies who are competing on raw value. Their lack of transparency and high prices make them a poor choice for a domain registrar.
1 / 5 stars

The post Register.com Domain Registrar Review: Pros, Cons, and Alternatives appeared first on ShivarWeb.

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ShippingEasy VS Ordoro

ShippingEasy VS Ordoro
✓ Pricing
✓ Ease of Use
Features ✓
Tie Integrations & Add-Ons Tie
✓  Customer Service & Technical Support
Tie Negative Reviews & Complaints Tie
Tie Positive Reviews & Testimonials Tie
Winner Final Verdict
Read Review Read Review
Visit Site Compare

Every online seller knows that one of the best ways to keep your prices low is to keep your shipping costs low. And in order to do that, you need a robust shipping software that can help you find the best shipping rates every time.

ShippingEasy and Ordoro are two such shipping software apps. Both of these services are SaaS (Software as a Service) solutions, meaning that they are fully-hosted programs that you can access through a monthly subscription. But the similarities don’t stop there. Both companies have headquarters in Austin, TX and both offer steep discounts on shipping rates. And most importantly, both software give merchants the power to easily generate shipping labels and purchase and print postage.

So, how do you choose between them?

In this article, we’re taking an in-depth look at both ShippingEasy and Ordoro to see what they have to offer in terms of features, ease of use, customer service, and pricing. Keep reading to learn how these two programs stack up again each other and discover which option is best for your business.

Pricing

Winner: ShippingEasy

Pricing for both ShippingEasy and Ordoro is based on the number of orders you ship per month. Pricing increases as you ship more orders. Moving up the pricing scale will also give you access to stronger customer support options and more advanced features.

Here’s a quick breakdown of ShippingEasy’s pricing scale:

Starter

  • $0/Month
  • 50 Shipments/Month

Basic

  • $29/Month
  • 500 Shipments/Month

Plus

  • $49/Month
  • 1,500 Shipments/Month

Select

  • $69/Month
  • 3,000 Shipments/Month

Premium

  • $99/Month
  • 6,000 Shipments/Month

ShippingEasy has an enterprise level plan for merchants with over 6,000 shipments/month. Enterprise is available for $149/month.

ShippingEasy also offers features for customer relationship management and inventory management at an additional monthly cost. These additional costs range from $3/month to $50/month for each service.

Ordoro offers their services in two forms: Basic and Pro. Basic includes features for shipping only. Pro plans include features for shipping, inventory management, and dropshipping. Ordoro has a free plan available that comes with only email support. Paid plans include both email and phone support.

Basic: Shipping Only

  • Free
    • 50 Orders/Month
    • 1 Sales Channel
    • 1 User
  • $25/Month
    • 700 Orders/Month
    • Unlimited Sales Channels
    • Unlimited Users
  • $49/Month
    • 3,000 Orders/Month
    • All Of The Above PLUS
      • Logos On Shipping Labels
      • User Permissions
  • $129/Month
    • Unlimited Orders/Month
    • All Of The Above PLUS
      • Multiple Ship-From Locations

Pro: Shipping + Inventory Management + Dropshipping

  • $299/Month
    • 1,500 Orders/Month
    • 5 Sales Channels
    • 5 Users
  • $499/Month
    • 4,000 Orders/Month
    • 7 Sales Channels
    • 7 Users
  • Enterprise (Pricing By Quote)
    • Unlimited Orders/Month
    • Unlimited Sales Channels
    • Unlimited Users

Pricing is comparable between the two apps, and they both offer similar features at similar price points. However, ShippingEasy is a bit more affordable when you consider the add-on features of customer management and inventory management. These features cost just a few dollars more with ShippingEasy compared to the minimum $299/month you’d have to pay to get these features on an Ordoro Pro plan.

Ease Of Use

Winner: ShippingEasy

With a name like ShippingEasy, I had high hopes that the software would be a breeze to use. Fortunately, ShippingEasy lives up to its name. I had no trouble at all learning to use the software during my initial trial.

Setting up my free 30-day trial was a simple process. When I connected my ShippingEasy account with my Shopify shopping cart, all my orders transferred over immediately.

To process orders, just click “Create Shipments.” Then, click on the “Shipments” tab and set up your shipping parameters. Those parameters include the carrier, postage rate, packaging, and weight. Once you’ve done all that, you can purchase and print your postage

On this page, you have to option to print a shipping label, a packing slip, or both.

Ordoro is similarly user-friendly. The dashboard is clean and simple.

When you link your account to your eCommerce platform, your orders will automatically import in. All new orders will transfer within an hour of the time they are placed.

You can then select any pending orders (individually or in bulk) and start processing. When you select an order, you’ll be presented with a shipping and return label generator on the side of your screen.

Then, you can select a carrier, a package type, and a shipping method to create a shipping label.

Try out Ordoro for yourself with a free 15-day trial. You have to hand over some basic information and a credit card number to sign up, but you’ll only be billed in you stay beyond your first 15 days. Don’t forget both ShippingEasy and Ordoro also have free plans that you can sign up for instead.

While both of these shipping programs are very user-friendly, I prefer ShippingEasy’s dashboard. I think it’s just a little more intuitive.

Features

Winner: Ordoro

All ShippingEasy users have access to shipping features. Customer management and inventory management features are available at additional cost.

Shipping

  • Low Rates: ShippingEasy partners with the USPS to provide savings up to 46%.
  • Multi-Channel: Manage orders from multiple sales platforms in one dashboard. Upload orders in bulk using a pre-built integration or using CSV files.
  • Automatic Emails: Send automatic emails when orders ship. Include your branding in those emails.
  • Shipping Rules: Automate your order fulfillment process with shipping rules
  • Batch Order Processing: Generate and print multiple shipping labels with one click.
  • Returns: Send scan-based return labels or email out return labels upon request.
  • Customs Forms: Ship internationally with automatically generated customs forms.

Inventory Management & Customer Management

If you subscribe to a plan that grants you inventory and customer management, you’ll have access to a few more features. Set low stock alerts, create purchase orders, enable multichannel customer management, and utilize email marketing.

In the same way, all Ordoro users can use the shipping features. Dropshipping and inventory management features come at an extra expense.

Shipping

  • Batch Printing: Process hundreds of orders at once.
  • Discounted Rates: A partnership with USPS provides discounts of up to 67%.
  • Multi-Channel Capabilities: Manage everything in one place.
  • Shipment Tracking: View tracking information and forward tracking numbers to your customers when their orders ship.

Dropshipping & Inventory Management

Ordoro’s dropshipping features let users dropship through multiple suppliers with ease. Inventory management features let you sync inventory, set stock thresholds, and create purchase orders.

Ordoro’s dropshipping features get a whole lot of love from their user base. Merchants who use Shopify as their shopping cart are especially fond of those features.

We think Ordoro’s dropshipping features give them a slight advantage over ShippingEasy. Ordoro is the winner here!

Integrations & Add-Ons

Winner: Tie

ShippingEasy and Ordoro both integrate with eCommerce’s most popular software. You can find pre-built integrations to the leading shopping cart software, accounting software, and shipping carriers.

These solutions include the following:

eCommerce Platforms

  • Shopify
  • Amazon
  • eBay
  • BigCommerce

Accounting

  • Xero
  • Intuit Quickbooks

Carriers

  • FedEx
  • UPS
  • USPS
  • DHL

ShippingEasy and Ordoro also both have APIs that your developers can use to build any connection that the software does not already include.

Customer Service & Technical Support

Winner: ShippingEasy

ShippingEasy offers customer support through a variety of avenues. While the free plan only allows access to self-help support, every paid plan includes personalized support via phone and support tickets. ShippingEasy’s self-help resources include a knowledge base, a community forum, and a blog. Users say representatives are helpful, friendly, and quick to respond. My own experience lines up with these reviews.

Ordoro also offers support via self-help resources in addition to phone and email. While I’m glad Ordoro provides various ways to contact support, I was a bit disappointed by some of the pages in their documentation. I found that a few articles and videos were out of date. Fortunately, Ordoro users report that the company’s support reps are top notch.

This category is closely matched, but ultimately we’re awarding the category to ShippingEasy. All of their documentation is up to date with the current software version.

Negative Reviews & Complaints

Winner: Tie

Both ShippingEasy and Ordoro get plenty of praise online. Review boards are full of positive reviews of both software; however, neither service gets many negative reviews. Here’s what the very few negative reviews I’ve found have to say about each software.

Users on ShippingEasy complain that there is a slight learning curve to getting started with the software. In addition, they say some features could be improved or adjusted to make workflow smoother.

A few of the cons I personally encountered with Ordoro include the outdated documentation I mentioned earlier as well as the limited features included in the software’s basic plans. In order to access dropshipping, kitting, and inventory management features, you have to be on at least the Pro plan at $299/month. While it is true that you must pay to access these features on ShippingEasy as well, they are much cheaper with ShippingEasy (the highest price for customer management and inventory management is $50/month each).

Positive Reviews & Testimonials

Winner: Tie

As I’ve said, reviews of ShippingEasy and Ordoro are overwhelmingly positive.

Users of ShippingEasy love that the software is easy to use and that it integrates with lots of popular platforms and marketplaces. They also praise ShippingEasy’s support team for their excellent and speedy assistance.

Merchants who ship with Ordoro are fans of both the support team and of Ordoro’s multiple integrations. In addition, users love Ordoro’s dropshipping features, especially in connection with Shopify.

How can you choose a winner for this category? We’re calling a tie.

Final Verdict

Winner: ShippingEasy

In the end, ShippingEasy emerges the victor of this matchup. This app’s stellar customer service, ease of use and pricing make it a formidable opponent in any comparison. To find out if ShippingEasy could work for your unique business, take a closer look at the software with our full review or by signing up for a trial yourself.

And while you’re at it, you might as well look into Ordoro as well. Ordoro matches ShippingEasy in many areas, only barely falling behind in our comparison. They also offer a free trial so you can test out the software before you commit, or you can read our full review.

Whatever you choose, we hope these shipping software solutions help you move product more efficiently and profitably!

The post ShippingEasy VS Ordoro appeared first on Merchant Maverick.

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How Strong Is Your Business Loan Application?

How Strong Is Your Business Loan Application?

We all like to know that we are succeeding in our endeavors. It’s easy to tell how successful you are when exercising — just pull out a scale or a measuring tape. It’s equally easy to judge a successful work day by how many items you checked off the good ol’ planner. But when it comes to loan applications, how do you know when you’re ready to submit it?

What if I told you that you could measure how likely your loan application is to be approved before you sent it? While there’s no sure-fire magic secret to ensure your business loan application gets approved, there are ways to tell how strong your application is and how likely lenders are to accept it. In this post, we’ll cover seven ways to measure the strength of your business loan application.

Before sending your loan application, check how it stacks up in these seven areas first…

A Clear Plan

How Strong Is Your Business Loan Application?

Lenders want to know exactly how you plan on using a loan if approved. For this reason, it’s incredibly important to explain in detail how you plan on using the funding to grow your business.

If you ask a lender for $100,000 and don’t give a reason for the loan, there’s no chance you’re getting that money. Instead, provide a specific reason for the funding. For example, you may need $100,000 of new equipment that will increase your company’s productivity, allowing you to take on 100 new clients.

Common reasons for business loans include:

  • Hiring new employees
  • Purchasing inventory
  • Purchasing equipment
  • Expanding your business
  • Buying property

The more detailed you can be on your application the better. Some lending experts even recommend adding a detailed business plan to your application. A business plan will show that you are prepared, organized, and knowledgeable about your business field. When it comes to getting approved for a loan, these extra brownie points could make the difference between securing a loan and being declined.

Double check your loan application to make sure it clearly explains what you need the money for and how your business will benefit from this loan. Also, make sure you are asking for a reasonable amount for your business’s specific purposes. If your business loan application can demonstrate a clear plan, you’re off to a great start.

The 5 C’s Of Credit

How Strong Is Your Business Loan Application?

A strong loan application will highlight the 5 Cs of Credit. But what are the 5 Cs of Credit?

The 5 Cs of Credit are a measurement that lenders use to judge the trustworthiness and creditworthiness of a potential borrower.  If your loan application doesn’t display these traits, then most lenders view you as high-risk and decline your application entirely.

Here is a basic breakdown of the 5 Cs of Credit and what lenders are looking for on your loan application.

Character

Character refers to your business’s reputation. Lenders want to see that you pay your debts on time and are trustworthy.

To judge your company’s character, lenders will often check your credit history, your business credit score, and your personal credit score. They may also try to gauge your personal character through social media, references, or a phone consultation.

A loan application with strong character will have:

  • A good credit score
  • A record of on-time payments
  • Sound references (if required by lender)

If your application doesn’t demonstrate these qualities, read our post 5 Ways To Improve Your Personal Credit Score.

Capacity

Capacity refers to your business’s ability to pay back the loan. Lenders want to be assured that you have the cash flow to actually afford loan repayments.

To judge your company’s capacity, lenders often view your cash flow statements, bank statements, income, and existing debt.

A loan application with strong capacity will have:

  • Strong cash flow
  • Enough income to cover monthly payments
  • Minimal existing debt

Capital

Capital refers to how much money you have invested in your business. Lenders view owner’s capital as a sign that you “invested” in your company’s success and are then more likely to do whatever it takes to make your business succeed (which for lenders means paying back your loans).

To judge your capital, lenders view how much is invested as well as how it has been invested.

A loan application with strong capital will:

  • Show the total owner’s investments
  • Give detail on how those investments have grown the company

We understand that not every business owner has invested personal money into their business. Read our post The 5 Cs of Credit: What Lenders Look For to learn how you can still impress lenders without owner’s capital.

Collateral

Collateral refers to any assets that are offered up as insurance should you default on the loan. Many lenders require collateral as a safeguard that they won’t lose everything should you be unable to pay your loan.

To judge your company’s collateral, lenders may vary. They may require specific assets or a blanket lien or a personal guarantee.

A loan application with strong collateral will:

  • Understand their specific lender’s collateral requirements
  • Provide the proper collateral
  • Include any paperwork associated with the collateral

Conditions

Conditions refer to the conditions of the loan as well as those of the current economy. Lenders want to make sure that you can afford a loan.

To judge your company’s conditions, lenders will not only evaluate your loan application but also the details of the loan you are applying for (such as borrowing amount, interest rate, etc.). The economy and your business’s current market can also play a role.

A loan application with strong conditions will:

  • Have enough income to cover monthly payments
  • Demonstrate an understanding of their industry, current market, and competitors

Ultimately, the 5 Cs of Credit are a great way to determine how strong your loan application is. Make sure your loan application highlights your company’s character, capacity, capital, collateral, and conditions. If your business application demonstrates each of there traits, you are well on your way to getting the loan you want.

If you want to tips about how to master the 5 C’s of Credit, read our post The 5 C’s of Credit: What Lenders Look For.

Strong Cash Flow

How Strong Is Your Business Loan Application?

For lenders, it’s all about being certain that you can pay your loan back on time and in full. Your business loan application and the documents you send with it should demonstrate that you have enough cash flow to comfortably make payments.

Almost all lenders will require that you include cash flow statements and projections with your business loan application. Most accounting software will generate cash flow statements for you. A strong loan application will provide this information upfront so that lenders can calculate your debt service coverage ratio (DSCR).

  • Debt Service Coverage Ratio (DSCR): Measures the relationship between your business income and debt and is used to determine how healthy your business’s cash flow is. It also plays a key role in knowing exactly what size monthly payment you can afford on a potential loan.

Before applying for a loan, I recommend calculating your DSCR so you can know exactly what you can afford. You don’t want to go into a spiral of unpayable debt or bankruptcy. Be sure that the borrowing amount you’re asking for and its monthly payments are realistic. A lender will shoot your application down if they aren’t convinced you can pay a loan back.

A loan application that displays weak cash flow or a poor DSCR is not likely to get approved. By calculating your DSCR and evaluating your cash flow ahead of time, you can be sure that you can afford the loan you want before submitting the application.

To learn more about DSCR, read our post Debt Service Coverage Ratio: How To Calculate And Improve Your Business’s DSCR.

Minimal Existing Debt

How Strong Is Your Business Loan Application?

In addition to displaying strong cash flow, business owners seeking a loan should have little-to-no existing debt. A strong loan application is one that shows again and again “I can afford this loan.” If your business already has a large amount of existing debt, it’ll be hard to convince lenders to approve your application.

When lenders look at your application, they will check your existing debt using the DSCR mentioned earlier as well as the debt-to-income ratio (although, the DTI ratio is used more for sole proprietors and freelancers who aren’t considered separate legal entities and don’t have a DSCR).

  • Debt-To-Income (DTI) Ratio: Measures the relationships between your personal debt and income and is used to determine how high-risk you are.

Working to get rid of existing debt also proves to lenders that you pay your debts in full and on time, which increases your credit score and betters your chances of getting approved for a loan. The less debt, the more cash you have available for a loan, and the stronger your application is.

Proper Documents

How Strong Is Your Business Loan Application?

Every lender requires certain documents to be included in a potential borrower’s loan application. Specific documents will vary from lender to lender, so be sure to check your lender’s requirements. Have all of the proper documents prepared beforehand.

Often, these documents include:

  • Cash flow statements
  • Bank statements
  • Income sheet
  • Statement of owner’s equity (or capital)
  • Tax Returns
  • Collateral documentation
  • Legal documents and licenses
  • Business history
  • Business owner’s history

Some lenders may ask for these documents in the loan application itself, while many online lenders require you to submit an initial application and then provide the required documents at a later time. Having these documents ready to go whenever the lender asks for them demonstrates that you are timely and organized.

Taking every opportunity to impress lenders and put your best foot forward can make or break the chance of you getting that loan.

Borrower Requirements

How Strong Is Your Business Loan Application?

No matter how beautifully polished and impressive your loan application is, it’s not going to get you anywhere if you don’t meet the lender’s requirements.

Every lender has specific requirements borrowers must meet in order to qualify for a loan. They often include:

  • A minimum credit score
  • A specific amount of time in business
  • A minimum monthly or yearly income
  • Certain collateral

Be sure to carefully research potential lenders so that you can be certain you meet all of the borrower requirements. If you meet and exceed all of the requirements and have a beautifully polished loan application, you make yourself a strong applicant and increase your chances of being approved for the loan you want.

If you are having trouble finding a loan you qualify for, we can help you find the perfect loan for your business.

No Spelling Or Grammatical Errors

How Strong Is Your Business Loan Application?

You’ve checked that you can afford a loan; you’ve met the borrower requirements; you’ve prepared all the proper documents. That should mean you’ve got the green light and are all clear, right?

Not quite. There’s one key final step.

Before sending off your loan application, double and triple check that there are no typos, spelling error, grammatical errors, or missing information. Maybe even get another set of eyes to read over it. This is an easy step to skip over, but I can’t stress how important it is.

Spelling errors and typos simply make you look unprofessional. Additionally, loan applications require a lot of legal information that you really don’t want to goof up on.

Once you’ve read and edited your finished loan application multiple times, you can be confident that you’ve done everything to make your loan application as strong as possible.

Final Thoughts

Now that you have a better idea of what lenders are looking for, you can more easily measure how strong your application is. After all, the stronger your application, the strong your chance of getting that loan.

Before you send off your application for good, be sure to ask yourself these questions regarding your loan application:

  • Do I demonstrate a clear plan for the loan?
  • Do I display the 5 Cs of Credit?
  • Do I have enough cash flow for monthly payments?
  • Did I eliminate most or all of my existing business debt?
  • Are the required documents included (or at least prepared)?
  • Do I meet or exceed the borrower requirements?
  • Did I edit everything correctly?

If your application is strong, great! You can go ahead and send it off with confidence. If your application seems weak, you can save yourself the heartache and time and avoid being denied. Instead, take the time to strengthen your application and better your chances of getting approved.

For more information on how to improve your loan application, read our post 20 Tips To Improve Your Business Loan Application.

The post How Strong Is Your Business Loan Application? appeared first on Merchant Maverick.

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How To Get A Business Acquisition Loan

loans to get a business

So you’re looking to purchase a business, either as a first-time venture into entrepreneurship, or to expand your existing company by acquiring new assets. The only problem is, you’re short on the capital needed to take on such a venture. Darn.

Naturally, you might think of going to a bank or credit union for a loan (after all, that’s supposed to the place with all the money, right?). Or, perhaps you’ve done a little research and know you’ll get a better deal if you go through the Small Business Administration (SBA) to get a loan. While loans from a bank or SBA are still a viable source of financing, there are other sources available. Have you considered all your options?

If you’re currently trying to buy a business, here are some viable ways to get a business acquisition loan, depending on your particular situation.

1. Startup Loan

If you want to buy a business (and don’t already have an existing business), you might be able to get a startup loan. To receive a startup loan, you will be required to prove that you have the experience and resources available to run a business. Startup lenders might also require you to prove you’re serious about the venture by making a down payment on the business you’re acquiring.

Startup loans are offered by banks, the SBA, and other independent lenders. If you are purchasing a franchise business, you have certain startup loan options available to you as well, as some online lenders offer loans to purchase a franchise.

Quickly compare top Start-Up Business Loan Lenders:
Lender Borrowing Amount Interest Rate Origination Fee? Min Credit Score Next Steps
$1K – $50K 5.26% – 25.77% Yes 620 Apply Now
$2K – $35K 6.95% – 35.99% APR Yes 640 Apply Now
Up to $10K 10.99% – 22% Yes 575 Read Review

2. SBA Loan

SBA loans are bank loans that are backed by the U.S. Small Business Association in amounts of up to 85%. Because there is less risk for the bank in the event that you default, the bank can offer you a lower interest rate and longer repayment terms than they otherwise would. If you need a loan to acquire a business, an SBA loan is one of the highest-quality loans you can get. However, SBA loans can have lengthy application processes and it can take a while to get accepted and for the funds to reach your account.

That said, it is still possible to get a business acquisition loan through the SBA, even if you don’t have an existing business (particularly if you’re purchasing a registered franchise). You can consult the SBA’s lender match service to find eligible lenders for your business purchase, as well as the other informational resources the SBA has on their website.

3. Bank Loan

As mentioned, banks do offer loans for business acquisitions, but the requirements are more strict than those of online lenders. The bank will scrutinize your credentials, the finances of the business you want to acquire, and other information related to your proposed business purchase. However, bank loans have terrific rates and if you have the right credentials it’s not impossible to get a bank loan — even if you don’t have an existing business. It will help to have relevant experience in the type of business you’re buying, partnered with steady personal income and good credit.

Check out The Best Banks for Small Business Loans if you’re thinking about applying for a bank loan. Also bear in mind that, depending on how established your business is, a local community bank or credit union may be more likely to approve you than would a large, nationwide banking institution.

Note that while most banks still require a traditional, in-person application, a few banks (like Wells Fargo) offer some alternative lender conveniences, such as an online loan application.

4. Equipment Financing

Depending on what type of business you’re purchasing, equipment and machinery could be among the largest expenses involved in your sale. If equipment is one of your new business’s major assets, equipment financing might help you afford the sale. While not a traditional loan, equipment financing lets you borrow against the value of the equipment, meaning there is no additional collateral required. Besides not requiring you to put up any collateral (other than the equipment itself), equipment financing contracts usually do not require a credit check.

Of course, while equipment financing alone won’t allow you to purchase an entire business, it might help you better afford a business acquisition. Check out our equipment financing comparison chart to see how the top options stack up.

5. Business Expansion Loan

It is without question easier to get a loan to buy a business if you already have an existing business and want to acquire another business of a similar scope. If you already own a stable, profitable business, it’s definitely worth looking into a bank loan for the purpose of expanding your business with an acquisition.

However, even qualified business owners may not want to go through the arduous process of applying for a bank loan and might turn to an alternative/online lender that offers business acquisition loans. Some online lenders offer business expansion/acquisition loans with rates and terms similar to what a bank might offer, but with a much easier application process and quicker time to funding. Most of these lenders do still require two years in business, though some only require one.

For more information on small business lenders from whom you might be able to get a business acquisition loan to expand your existing business, look at our small business loans comparison chart.

6. Crowdfunding & P2P Loans

Crowdfunding or P2P loans can be another option if you’re looking for business acquisition money, though crowdfunding by itself likely won’t pull in sufficient funds to cover the entire business purchase. There are various types of crowdfunding for businesses, including equity-based crowdfunding and rewards-based crowdfunding. Even charitable giving sites can sometimes be used for business.

Crowdfunding could be an option for you if 1) your business purchase will enable you to produce an innovative product with which you can reward your backers, or 2) the purchase will increase your business’s net worth, which you can share with your backers in the form of equity.

Similarly, peer-to-peer business lending allows business owners to borrow directly from interested investors in an online marketplace, or even from peers in their personal networks. A third-party provides an online platform that packages the loans and may charge a fee for their services. Because multiple parties typically fund P2P loans, the concept is similar to crowdfunding.

With both crowdfunding and P2P lending, having an innovative, community-minded business plan and a strong online presence will help convince would-be investors to fund your business purchase. And generally, it helps to have some business experience/time in business for lenders/backers to be willing to take a chance on you.

Final Thoughts

Buying a business can be an exciting and rewarding venture, but getting a loan to finance this purchase is tricky if you don’t already have an established business. Fortunately, alternative lenders have made it easier for aspiring entrepreneurs to secure non-standard business loans, SBA loans, and other types of financing.

If you’re not sure which type of loan option is best for your business purchase, you might benefit from using a loan matchmaking service like Lendio (see our review), which will help connect you with the right lender for your situation. This is easier than applying to a bunch of different places, especially if you’re short on time or new to business lending. You can also feel free to ask me some questions in the comments!

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