Financing And Loan Options For Manufacturing Companies

Operating a manufacturing business is extremely rewarding. Whether you’re creating products that ship directly to retailers or you’re working with other manufacturers, the potential for profits is great. However, as you’ve likely already seen in your business, owning a manufacturing company isn’t all smooth sailing. In order to make those big profits, you have to invest in your business.

Once you have steady cash flow, it’s easy to cover day-to-day operating expenses. But what happens when your bank account is running a little low or a major expense poses a threat to your operations? From emergencies to expansions to cash flow shortages, there are multiple scenarios where you fall a little short financially.

Instead of worrying, take action. When your manufacturing business has an expense you can’t handle on your own, there are loan and financing options for any situation. Don’t panic if you’re unsure of where to start. In this post, we’ll cover the types of loans available for your business, how to choose the right lender, and what to expect when it’s time to apply.

Read on to learn more and take the next step to fund your manufacturing business.

Financing Need Best Loan Type Recommended Lender
Purchasing Equipment Equipment Financing Lendio
Purchasing Materials Line Of Credit FundBox
Business Expansion SBA Loan SmartBiz
Cash Shortages Invoice Factoring BlueVine
Hiring, Training & Covering Payroll Term Loan OnDeck
Marketing & Advertising Business Credit Card Chase Ink Preferred

How To Finance A Manufacturing Company

Your business is unique, and so are its financial needs. The type of loan or financial product you select is primarily centered on how you plan to use your funds. For example, if you want to purchase real estate, you should seek out long-term, low-interest options instead of a short-term loan. If you need to cover this month’s payroll, an equipment loan won’t help you out. The key is to identify why you need the money and select the right financial solution for your situation.

Purchasing Equipment

No matter what type of manufacturing business you operate, you need equipment to keep operations running efficiently. If you manufacture clothing or garments, sewing machines and pressing machines are essential equipment. If you operate a furniture manufacturing business, your business needs saws, planers, sanders, and other expensive tools and equipment.

Over time, your equipment may become old and outdated. Or maybe your equipment is still in good working order but you need to add more as part of an expansion. Either way, buying equipment doesn’t come cheap, and funding these expenses out-of-pocket can be tough, if not impossible. Instead of breaking the bank, you have a more affordable option: equipment financing.

Equipment Financing

When you receive an equipment loan, your lender will fund the full purchase price of your equipment. After paying a small down payment of 10% to 20%, you can take possession of the equipment and put it into use immediately. Then, you’ll simply make scheduled payments to your lender, which are applied to the balance of your loan (and toward any additional fees and interest charged for taking the loan).

With a high credit score, you may be able to qualify for $0 down financing. However, if at all possible, you should make a down payment to lower your scheduled payments and reduce the overall cost of borrowing.

Equipment loans can only be used to purchase equipment, including machinery, tools, furniture, fixtures, and vehicles. When you receive equipment financing, additional collateral is typically not required. Instead, the equipment being financed serves as the collateral and can be repossessed if payments are not made as agreed. Once your loan has been paid off, the equipment is yours to keep, sell, or trade.

Equipment leases are another option to consider. When you take out an equipment lease, you can use the equipment for a set period of time, such as 2 years. At the end of your lease, you have two options: pay a lump sum to purchase the equipment or return the equipment and sign another lease for new equipment. Unless you pay the remaining balance at the end of the lease, you will never take ownership of the equipment. This may be a good option for you if you update your equipment frequently or if you desire a lower down payment and lower monthly payments.

Recommended Option: Lendio

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Lendio isn’t a lender; rather, it is a loan aggregator that matches you with a lender that best fits your needs. One of the financial products offered through Lendio’s service is equipment loans.

Through Lendio, you can apply for $5,000 to $5 million to finance your equipment purchase. Repayment terms are available from 1 year to 5 years, with interest rates as low as 7.5%.

To qualify with a lender through Lendio’s network, a time in business of at least 12 months is required. You must also have at least $50,000 in annual revenue and a personal credit score of 650. If your credit score falls below this threshold, solid cash flow and revenue could still help you qualify for financing.

Purchasing Materials

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As a manufacturer, you need materials to manufacture your goods to sell to other manufacturers or retailers. When you don’t have the right materials, you can’t produce your goods, which negatively affects your revenue. If financial troubles prevent you from buying the materials you need, keep your business operating without a hitch by using a line of credit for your purchases.

Lines Of Credit

A line of credit is a flexible form of revolving credit. Instead of receiving a lump sum payment, your lender will assign a credit limit. You can make draws from your credit line as often as you need for any amount within your set limit. This is ideal when you need to make multiple purchases over a period of time or you’re unsure of the exact amount of money you need.

You can use your line of credit for any business expense, including purchasing supplies, materials, and inventory. Once you make a draw from your line of credit, the funds are typically transferred immediately and will be deposited in your business bank account as soon as the next business day. Interest or fees are charged only on the used portion of the credit line. As you pay down your balance, the funds will become available for you to use again.

It’s easy for most business owners to qualify for a line of credit. However, the best rates and terms and the highest credit limits are given to the most established, creditworthy businesses.

Recommended Option: FundBox

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FundBox provides revolving lines of credit up to $100,000. When you make a draw, payments are made over a period of 12 or 24 weeks. Equal payments are made weekly and are withdrawn directly from your checking account.

Fees for drawing from your Fundbox line of credit start at 4.66% of the total draw amount. Your fee will be based on the health of your business. If you repay early, any remaining fees are waived, helping you save money.

To qualify for a Fundbox line of credit, you must have a business checking account and at least $50,000 in annual revenue. You must show two months of activity in Fundbox-supported accounting software. If you don’t have activity in accounting software, bank statements from the last three months are acceptable.

Business Expansion

Your business is growing, and it’s time to expand. There’s just one problem: expansion costs money that you don’t have. Purchasing commercial real estate, funding improvements for your facility, building an addition, or constructing a new building all come at a price that even the most successful manufacturing companies can’t pay up front. When it’s time to expand your business, move forward with confidence with the help of a Small Business Administration loan.

SBA Loans

The Small Business Administration provides a variety of resources to help small business owners succeed. One of the best resources is the organization’s low-cost, flexible loan options. SBA loans are available through lenders known as intermediaries. This could be banks, credit unions, or nonprofit organizations.

If you’ve applied for a business loan through a traditional lender like a bank, you may have been turned down. With an SBA loan, your chances for approval are higher because these loans are guaranteed by the government in amounts up to 85%, so there’s less risk for the lender.

One of the most popular types of loans for large expenses like business expansion is the 7(a) loan. With a 7(a) loan, up to $5 million is available to qualified businesses for nearly any business purchase, including commercial real estate, land development, improvements and upgrades, equipment, and more. Loan terms are set at 10 years for most purposes, although real estate purchases have terms up to 25 years.

The cost of borrowing varies based on the type of loan you select and the amount borrowed. The SBA has a set of standards used by its intermediary lenders to keep interest rates low, making loans more affordable for business owners.

Recommended Option: SmartBiz

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Applying for an SBA loan doesn’t have to be difficult or stressful when you work with a lender like SmartBiz. SmartBiz simplifies the SBA application process, helping you get the money you need as quickly as possible.
There are two types of SBA loans available through SmartBiz: working capital and debt refinancing loans and SBA 7(a) commercial real estate loans.

With working capital and debt refinancing loans, you can apply for $30,000 to $350,000 to use for business expansion, marketing, hiring employees, purchasing inventory, or refinancing existing debt. Interest rates are between 8% and 9% with repayment terms of 10 years. To qualify, you must be in business for at least 2 years and have a personal credit score of at least 650.

SmartBiz also offers SBA 7(a) commercial real estate loans from $500,000 to $5 million. You can use these funds to purchase a new commercial property or refinance your existing property. Rates are between 6.75% and 8% with repayment terms of 25 years. To qualify for this loan, you must be in business for at least 2 years with a credit score of at least 675. Any property funded with loan proceeds must be at least 51% owner-occupied.

Additional requirements for SBA loans include no outstanding tax liens, recent charge-offs, or defaults on government loans. You must not have any bankruptcies or foreclosures within the last 3 years. You must also qualify as a small business based on the SBA’s definition, which limits your company’s net worth, number of employees, and annual revenues.

Cash Shortages

Cash shortages happen to everyone. A seasonal drop in sales, an unexpected emergency expense, or another situation could leave your bank account running a little short. Sometimes, the real problem is your unpaid invoices. For times when money is tight, invoice factoring can help make up for these shortages.

Invoice Factoring

Unpaid invoices can leave you in a financial bind. Instead of waiting weeks or months to receive payment, consider invoice factoring. If you’re a B2B business and you have unpaid invoices, you may qualify for this type of financing. With invoice factoring, a lender pays a large portion of an unpaid invoice directly to you. Once the invoice is paid by the customer, the remaining amount of the invoice is paid to you after the lender takes any fees charged for the service.

With invoice factoring, the invoices are the collateral for the loan. A high credit score is typically not needed to qualify. Your invoices are the most important factor in this type of financing. A lender will ensure that your invoices are a sufficient amount to cover any fees. Lenders will also make sure that your invoices are for customers who are likely to pay.

Recommended Option: BlueVine

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BlueVine has invoice factoring lines up to $5 million. Rates may be as low as 0.25% per week. You can receive approval in as little as 24 hours when working with BlueVine.

To qualify, you must be in business for at least 3 months and have at least $100,000 in annual revenue. You must be a B2B business and have a personal credit score of at least 530.

Hiring, Training & Covering Payroll

It’s time to expand your business, which means hiring and training new employees, but your funding falls short. Maybe you’re not ready for expansion, and your business is struggling just to cover your current payroll. No matter the situation, a term loan can help.

Term Loans

When you apply for a term loan, you’ll receive a lump sum of money that can be used for any purpose, including hiring, training, covering payroll, or for use as working capital. The terms of these loans vary. While some lenders provide loans for up to 12 months, other lenders may offer repayment terms of several years.

If you’re applying for a short-term loan, one difference you may notice is that a factor rate is used to calculate how much you owe. This multiplier is used to determine the one-time fee that is added to the cost of your loan, replacing a traditional interest rate. The factor rate is based on the lender’s policies, as well as the creditworthiness of the borrower.

Other term loans have a traditional interest rate. Your interest rate and repayment terms will be based upon your creditworthiness and ability to pay back the loan.

One thing to note is that some term loans, such as short-term loans with low borrowing requirements, come at a very high cost. As with any other type of financing, shop around to find the best rates and terms for your business.

Recommended Option: OnDeck

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OnDeck has loan options up to $500,000 for qualified borrowers. There are two different loan options available. Short-term loans come with repayment terms between 3 and 12 months. These loans have simple interest starting at 9%.

Loan options with longer terms are also available. These loans come with terms of 15 to 36 months with annual interest rates starting at 9.99%.

For all loans, origination fees are charged by the lender. For the first loan, fees are between 2.5% and 4% of the total loan amount. Subsequent loans have reduced fees.

To qualify, you must be in business for at least one year and have a gross annual revenue of $100,000. You must have a personal credit score of at least 500 to qualify. Daily or weekly payments are automatically deducted from your checking account.

If you’re looking for other financing options, OnDeck also has lines of credit up to $100,000.

Marketing & Advertising

You want to get the word out about your business to bring in more customers and increase your revenue. Word-of-mouth and free social media advertising may bring more customers your way, but you’re not going to scale at a higher level until you launch a paid marketing and advertising campaign.

Marketing and advertising can get expensive very quickly, although the return on investment is often high enough to justify this expense. But what happens when you just don’t have the extra funds to market and advertise your business and services? A business credit card can help, and you can even be rewarded just for using it.

Business Credit Cards

One of the best things about a business credit card is that it can be used any time for any business purpose. When you have marketing and advertising expenses that need to be covered, you won’t have to wait days or weeks to get financing approval. Instead, you’ll be able to use your credit card immediately to cover the expense.

A business credit card is great for marketing and advertising campaigns because you won’t have to request a specific amount. You can use your card as needed to cover any expense, whether it’s marketing and advertising costs or an emergency expense.

When you’re approved for a business credit card, your lender will provide you with a credit limit. Your purchases can’t exceed the credit limit assigned to your card. You can make multiple purchases with different vendors as needed provided you don’t exceed your credit limit. Each month, you’ll pay at least a minimum payment that will be applied to the borrowed balance and the interest charged on used funds.

Business credit cards can be a very expensive form of financing if you only make the minimum payment each month. Cut down on the amount of interest you pay and the overall cost of borrowing by using your credit card responsibly and paying all or a significant portion of your balance each month.

Business credit cards are available for all types of credit situations. Borrowers with the highest scores will receive the lowest rates and highest credit limits, in addition to the best rewards cards, introductory rates, and bonus offers. There are options available for fair credit scores that come with higher rates and lower limits. For bad credit borrowers, a secured card requires a cash deposit but helps you rebuild your credit and qualify for additional cards and financial products with responsible use.

Recommended Option: Chase Ink Business Preferred

Chase Ink Business Preferred



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Annual Fee:


$95

 

Purchase APR:


17.99% – 22.99%, Variable

If you have good to excellent credit and need a business credit card, consider applying for the Chase Ink Business Preferred card. This card has a variable APR of 17.99% to 22.99%. There is a $95 annual fee associated with this card.

This credit card is great for marketing and advertising expenses. You’ll earn 3 points for every $1 spent on advertising purchases with search engines and social media platforms. You’ll also earn 3 points for every $1 for shipping purchases, travel, cable, internet, and phone purchases. It’s important to note that this offer is only valid for the first $150,000 spent in combined purchases.

For all other purchases, you’ll receive 1 point for every $1 spent. If you redeem your points for travel through Chase Ultimate Rewards, they’re worth 25% more, giving you the most bang for your buck.

The Chase Ink Business Preferred Card also has a bonus offer of 80,000 points when you spend at least $5,000 within three months of opening the account.

Does The Government Offer Loans For Manufacturing Companies?

There are so many options when it comes to financing your manufacturing company. You have traditional lenders like banks and credit unions. You have alternative lenders that you can seek out online. You even have government loan options available to you.

One of the most popular government loan options has already been discussed in this post: SBA loans. These loans are backed by the government, so lenders feel more comfortable approving them since there’s less risk. In addition to the 7(a) loan that is open to any qualified small business owner, the SBA has programs for veterans, startups, and businesses operating in underserved areas.

Another option to consider is the United States Department of Agriculture’s Business & Industry Loan Program. This government-backed loan program allows lenders to provide affordable loans to businesses that don’t qualify for traditional financing. Any business that saves or creates jobs in a rural area is eligible to apply. This includes manufacturing businesses.

These loans can be used for almost any purpose, including acquiring a business, updating or constructing facilities, purchasing equipment and supplies, paying startup costs, or for use as working capital. Loan proceeds can also be used to refinance certain types of debt. These loans come with terms between 7 and 30 years. Most loans distributed through this program are between $200,000 and $5 million.

The Best Loan Options For Starting A Manufacturing Business

The options previously discussed work well for established businesses, but what happens when you need financing for a manufacturing business that hasn’t even been started yet? You need capital to fund your venture, but it seems impossible to receive a loan … or is it?

If you need capital to start a manufacturing business, you have to know where to look. At times, you may even have to get a little creative. Since traditional lenders like banks prefer to work with low-risk borrowers, you won’t be able to receive a loan, right? Not exactly. If you have a high personal credit score, you can apply for a personal loan through your bank, credit union, or another lender for money to start your business. Since it’s a personal loan and not a business loan, your business information — or lack thereof — won’t be a consideration for approval. You will, however, need a solid credit score and income that is sufficient to pay back the loan.

Lender Borrowing Amount Term Interest Rate Min. Credit Score Next Steps

$2K – $25K 2 – 4 years 15.49% to 30% 600 Apply Now

$1K – $50K 3 or 5 years 8.16% – 27.99% 620 Apply Now

$2K – $35K 3 or 5 years 6.95% – 35.99% APR 640 Apply Now

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$1K – $40K 3 or 5 years 5.32% – 30.99% 640 Compare

If you don’t want to go that route, there are additional options. Microloans are perfect for startups and new businesses. The SBA Microloans program provides up to $50,000 for startups, new businesses, and established companies. These loans are available through nonprofit intermediary lenders. Other nonprofit organizations also provide microloans to eligible business and startup owners.

You can also look to private investors. Peer-to-peer loans have less stringent requirements than traditional loans and may be an option to explore. You can also spread the word about your business and appeal to investors with crowdfunding. If you have a family member or friend that believes in your business and has money to invest, a loan from that person is a possibility. Just remember, no matter who gives you the money, borrow responsibly, read and understand all contracts, and pay your loan as agreed to start your business off on the right foot.

What To Consider When Choosing A Lender

5 C's of Credit: What Lenders Look For

Now that you’re familiar with the types of loans available for your manufacturing business, you may be tempted to jump online and start an application. Before you apply, you still need to choose a lender. The internet gives us access to more lenders than ever, so you may be tempted to just pick and choose based on what your search engine pulls up. However, a smart business owner knows the importance of shopping around for the best rates and terms.

Before you choose a lender, consider these factors to help narrow down your choices so you can feel confident that you’ve selected the most affordable financing option for your situation.

What Is The Loan Used For?

This question should be easy to answer. Why do you need money? Once you know how you’re using the money, you can choose the type of loan that’s best for the situation. For example, if you need a more flexible option for making purchases or in case of an emergency, apply for a line of credit or credit card. If you want to make an expensive real estate purchase, you don’t want a high-cost, short-term option. Instead, an SBA loan would be the best choice.

Once you know which type of loan you need, you can narrow your search to include only those lenders offering these products. You won’t apply with a short-term lender for an SBA loan or a lender that specializes in equipment loans when you need a flexible line of credit. Choose your loan, then narrow down your pool of lenders based on your business needs.

How Much Money Do I Need?

This is another simple question. How much money do you need? If you want to purchase equipment that costs $150,000, a lender that has maximum loan amounts of $100,000 won’t be a match. Before you fill out an application, calculate how much you need, how much you can afford, and find a lender that offers that amount.

Do I Qualify?

Applying for loans you won’t qualify for is simply a waste of time. If a lender has annual revenue, time in business, or credit requirements you just don’t meet, move on to another option. If you have challenges in these areas, find a lender that works with your specific situation. For example, if your credit score is low, consider loan options that are based on the performance of your business. If you have a new business, apply for loan options that work for startups and new businesses, like microloans. Also, take collateral and down payment requirements into account when selecting your lender and applying for a loan.

One important step to take before you apply for a loan is to know your credit score. Pull your free credit score online and review your credit report for errors. If your financing need isn’t immediate, take steps to raise your score if it’s low. With an improved credit score, you’ll qualify for more financing options that are more affordable and come with more favorable terms.

Do The Rates & Terms Work For My Business?

A loan may help you out right now, but you have to consider whether it will benefit your business over the long term. You want to select a lender that offers loans with the lowest rates and best terms you are qualified to receive. A short-term loan may be funded fast, but daily payments and a high factor rate could become a burden. In this situation, you could save hundreds or even thousands of dollars by waiting for a long-term option with better rates and terms.

Of course, in some situations, getting a loan quickly is important. Even so, shop around to make sure that you get a loan that you’ll be able to afford that has payment terms that are best for your business.

What You’ll Need To Apply For A Loan

Some types of financing for your manufacturing business require very little information about yourself and your business. For example, your name, business name, federal tax ID, social security number, contact information, and annual revenue may be all that’s required to qualify for a business credit card. However, there are other loans that require much more information and documentation before you’re approved.

Before you apply, you can get the specific requirements from your lender. However, you may want to go ahead and gather a few documents, including:

  • Business & Personal Tax Returns
  • Business & Personal Credit Scores/Reports
  • Business & Personal Bank Statements
  • Profit & Loss Statements
  • Balance Sheets
  • Licenses & Articles Of Incorporation
  • Business Plan
  • Future Projections
  • Account Numbers & Balances If Refinancing Debt

Your requirements may vary based on the lender you select, the type of loan you’re applying to receive, and the amount of your loan. Sometimes, a lender may even require additional information after you’ve submitted your application and documentation. Be prepared to offer this additional information promptly to move one step closer to approval and funding.

Final Thoughts

You need money just to keep your manufacturing business operating each day. This amount increases even more when you face a challenging situation, from growth and expansion to emergency expenses.

When you need money, it’s important to not stress yourself out over the situation and remember that you have financial options. Take a deep breath, run some calculations, pick your lender, and apply for the financing you need. You’ll be out of your financial rut and heading toward success again in no time.

The post Financing And Loan Options For Manufacturing Companies appeared first on Merchant Maverick.

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Top Business Financing Options For Contractors

As a professional contractor, it takes the right resources to complete each job. From equipment to employees and insurance, careful planning, preparation, and the right tools for the job are always required. No matter what type of contractor you are, you have one thing in common with other contractors and business owners: the need for capital to operate and expand your business.

While it’s great to be able to pull the funds you need from your own bank account to cover your expenses, this isn’t always a possibility. For times when you need financial help, consider a business loan for contractors. A business loan can be used to expand your business, fund daily operating expenses, or fill in gaps during seasonal lulls.

Before you start your loan application, first understand the types of loans available to you and which is best for boosting your business. Whether you’re an electrician, carpenter, plumber, painter, or another type of contractor, you have financing options.

Read on to learn more about business loans for contractors, choosing your lender, and how to apply for the financing you need.

Financing Need Best Loan Type Recommended Lender
Purchasing Equipment Equipment Loan Lendio
Supplies & Inventory Line of Credit Kabbage
Working Capital SBA Loan SmartBiz
Marketing & Advertising Short-Term Loan LoanBuilder
Emergency Funds Business Credit Card Chase Ink Business Cash
Cash Shortages Invoice Financing BlueVine
Hiring, Training & Payroll Installment Loan OnDeck

Purchasing Equipment

No matter what industry you’re in, as a contractor, heavy equipment is a must for your business. If you specialize in land grading, a skid steer is necessary to complete each job. Maybe you need a work van or truck to move from job to job or even an equipment trailer to transport your equipment around town. Regardless of what type of equipment you need for your projects, one thing is certain: equipment can be expensive.

Even if your business is successful, tying up tens of thousands – or even hundreds of thousands – of dollars from your own pocket could be financially damaging to your company. Instead of shouldering this financial burden alone, consider applying for an equipment loan.

Equipment Loans

With an equipment loan, the lender provides funding to purchase equipment. You’ll pay just a small down payment — typically 10% to 20% of the purchase price — and can then put the equipment into use immediately. You’ll then repay the loan with interest through regularly scheduled payments that are typically made monthly or weekly.

Equipment loans can be used to purchase all types of equipment, from heavy equipment to vehicles. The equipment purchased with loan proceeds is used as the collateral. Repayment terms, interest rates, and down payment requirements are determined by the lender and are typically based on creditworthiness, annual revenue, and other factors.

Recommended Option: Lendio

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When you’re shopping around for business loans, Lendio is an excellent resource. Lendio is a loan aggregator, which means that you’ll connect with multiple lenders with just one application. Once you’ve filled out the application, you’ll receive offers and can easily compare which are the best for your business.

Lendio connects contractors and other business owners with a variety of financial products, including equipment loans. Interest rates start at 7.5%. Borrowers can apply to receive between $5,000 and $5 million. Repayment terms of 1 to 5 years are available. Loan proceeds can be used for the purchase of any type of equipment, including heavy equipment, software, office furniture and fixtures, vehicles, appliances, and more.

To qualify, you must have $50,000 in annual revenue. You must be in business for at least 12 months, and a minimum credit score of 650 is required. If your credit score is lower than 650, you may be matched with a lender if you have solid cash flow and revenue.

Supplies & Inventory

In addition to equipment, supplies and inventory are also important to the operations of your business. No matter what type of supplies you need — lumber, hand tools, paint, ladders — these expenses can pile up quickly.

If you’re in need of inventory and supplies but your cash flow is a little short, you can receive a loan to cover this expense. A financial product that works well for supply and inventory purchases is a line of credit.

Lines Of Credit

A line of credit is a flexible financing option that can be used as needed. When you receive a line of credit, you can make multiple draws up to and including your assigned credit limit. Once a draw is initiated, most lenders transfer funds immediately, which are then available in your business checking account as soon as the next business day.

A line of credit can be used to purchase supplies and inventory and comes in handy when you’re unsure of exactly how much money you need. Interest is only charged on the borrowed amount. As you repay your line of credit, funds become available for you to use again as needed.

Credit score, time in business, and annual revenue requirements vary by lender. Some lenders put more weight on incoming cash flow over personal credit score, making it possible for business owners with credit challenges to receive a loan.

Recommended Option: Kabbage

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Kabbage is a lender that offers lines of credit up to $250,000 to qualified borrowers. Repayments are made on a monthly basis over a period of 6 or 12 months, which is determined by the amount borrowed. Fee rates vary from 1.5% to 10% based on business performance.

One of the benefits of working with Kabbage is access to the Kabbage card. This card gives you instant access to funding. Use your Kabbage card like a credit card for on-the-spot payments without waiting for a transfer. Once you’ve made a purchase, a new loan will be created under your account with the same rates and terms as traditional draws.

To qualify for a Kabbage line of credit, you must have either $50,000 in annual revenue or $4,200 in monthly revenue for the last 3 months. You must be in business for at least 1 year to qualify. During the application process, your business accounts — such as business checking, PayPal, Amazon, and Stripe — are connected to determine your maximum credit limit.

Working Capital

Every business needs working capital — money that’s used to pay day-to-day operating expenses. While your incoming cash flow should cover these regular expenses, it’s not uncommon to come up a little short from time to time. A slow season, unexpected expenses, and other issues could affect your incoming cash flow and your amount of working capital. When you don’t have adequate working capital, operations can slow … or come to a screeching halt.

If you need working capital and you have a solid credit score, one option to consider is a Small Business Administration loan.

SBA Loans

The Small Business Administration, or SBA, helps business owners succeed through its resources and programs, including small business loans. The SBA offers multiple loan options for small business owners. All loans are distributed through SBA-approved lenders known as intermediaries.

Loan Program Description More

7(a) Loans

Small business loans that can be used for many many business purchases, such as working capital, business expansion, and equipment, inventory, and real estate purchasing.

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Microloans

Small loans, with a maximum of $50,000, which can be used for working capital, inventory, equipment, or other business projects.

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CDC/504 Loans

Large loans used to acquire fixed assets such as real estate or equipment. 504 Loans are offered in partnership with Community Development Companies (CDCs) and banks.

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Disaster Loans

Loans used to rebuild or maintain business following a disaster. 

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The 7(a) loan program provides up to $5 million for any business purpose with repayment terms of 10 or 25 years. The Express loan is similar to the 7(a) loan but is available in amounts up to $350,000 and comes with an approval decision guaranteed within 36 hours. The SBA Microloans program provides up to $50,000 for smaller capital needs. There are also financing opportunities for veterans, service members, and businesses operating in underserved areas.

While SBA loans have more stringent borrower requirements than other loans, those who qualify will receive competitive interest rates and terms. Many SBA loans, including the ones previously mentioned, can be used for working capital needs.

Recommended Option: SmartBiz

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SmartBiz makes the SBA loan application process easier than ever. Through this lender, you can apply for loans between $30,000 and $350,000 to use for working capital or debt refinancing.

Interest rates are currently 8% to 9% — the prime rate plus 2.75% to 3.75%. Fees will need to be paid to receive a loan, including a packaging fee, referral fee, and guarantee fee. Specific collateral is not needed but a blanket lien is required.

To qualify for a SmartBiz SBA loan, you must be in business for at least 2 years. A minimum personal credit score of 650 is required. Other credit requirements include no bankruptcies or foreclosures in the last 3 years, no open tax liens, and no outstanding collections. Business owners that have past defaults or delinquencies on government loans are ineligible. You must meet the standards of a small business as defined by the SBA, which limits annual revenues, number of employees, and company net worth. You must also show that you have sufficient cash flow and can afford to pay the loan.

Marketing & Advertising

You can’t grow your contracting business without marketing and advertising. To gain new clients and increase your revenue, a marketing and advertising campaign is a must.

Unfortunately, this comes at a price. Of course, you could rely on free methods to get the word out about your business. However, to efficiently and effectively scale your business, a paid campaign is key. A short-term loan could provide you with the extra funds you need to launch your marketing and advertising campaign.

Short-Term Loans

A short-term loan is a loan for a specific amount of money that is paid back over time. While many short-term loans have repayment terms of 12 months or less, more lenders are loaning money with longer terms up to 3 years.

Short-term loans can be used for any business purpose, including funding a marketing and advertising campaign. Many short-term lenders have fewer requirements and can release funds quickly – sometimes even within 24 hours.

One difference with short-term loans, when compared to other financing options, is that a factor rate is used in place of an interest rate. This factor rate is a multiplier that determines the lender’s fee, which is added to the loan balance.

If you pursue a short-term loan for marketing and advertising, it’s necessary to plan out your campaign. Since your loan will be for a specific amount, you’ll need to know exactly how much you plan to spend. If you’re looking for a more flexible option, consider a line of credit to fund your next campaign.

Recommended Option: LoanBuilder

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LoanBuilder, by PayPal, offers short-term loans for $5,000 to $500,000. Repayment terms are between 13 to 52 weeks. Repayment terms are based on the amount of the loan. A one-time fee of 2.9% to 18.72% of the borrowed amount is added to the loan. A blanket lien is required to receive this loan. Once approved, funds can be transferred to your banking account as soon as the next business day.

To qualify for a LoanBuilder loan, your business must be in operations for at least 9 months. An annual revenue of $42,000 and a personal credit score of at least 550 is required. You can’t have any active bankruptcies in order to qualify. The lender will review your credit history and the health of your business to determine your maximum loan amount and rates.

Emergency Funds

An unexpected expense pops up, and you don’t have the money in your account to cover it. This is a scenario that can be stressful for the most level-headed and prepared business owner.

If you don’t have an emergency fund of your own and shuffling your finances to cover an emergency expense isn’t working out, take control of the situation by applying for a business credit card.

Business Credit Cards

If you’ve ever had a personal credit card, you already know how this works. After approval, the lender gives you a credit card that can be used anywhere credit cards are accepted. Your credit card comes with a credit limit. You can make multiple purchases up to and including this limit.

Each month, you make a payment toward the balance and the interest charged by the lender. As you pay down the balance, funds become available to use again. Interest is charged only on the borrowed portion of funds. A credit card can be used for any business expense, such as purchasing supplies or paying recurring expenses. A credit card is a good choice for emergency expenses because it’s available to use immediately. Once you’re approved by the lender and have received your card, you can use it whenever you want without having to wait.

Interest rates are based on your creditworthiness. Credit cards for fair credit scores are available. If your score is very low, you may qualify for a secured card, which requires a cash deposit. By using and paying your card off responsibly, you can increase your credit limit, improve your credit score, and qualify for additional cards or loans with better rates and terms.

Many credit cards even come with rewards programs, which reward you for using and paying off your card. You’ll rack up points to receive cash back, hotel stays, or other benefits with responsible use of your card.

Recommended Option: Chase Ink Business Cash

Chase Ink Business Cash



Apply Now

Annual Fee:


$0

 

Purchase APR:


15.24% – 21.24%, Variable

The Chase Ink Business Cash credit card is a popular choice with business owners that have good to excellent personal credit. The Chase Ink Business Cash card comes with an introductory 0% APR for the first 12 months. After the introductory period, rates are 15.24% to 21.24%.

If you spend $3,000 or more within the first 3 months of opening your account, you’ll receive $500 cash back. The rewards continue with 5% cash back on the first $25,000 spent toward internet, cable, phone, and office supply store purchases every year. You’ll receive 2% cash back for the first $25,000 spent at restaurants and gas stations every year, and 1% cash back on every other purchase.

Cash Shortages

From time to time, cash shortages occur in your business. Even when cash flow slows, expenses still need to be paid. Cash flow shortages occur for a number of reasons, from winter slowdowns to slow-paying customers.

If your issue is the latter and you’re waiting to receive payment for completed jobs, cut down your waiting time by applying for invoice financing.

Invoice Financing

Invoice financing is a type of loan that is borrowed against unpaid invoices. There are two types of invoice financing: invoice factoring and invoice discounting.

Invoice Financing Invoice Factoring

Uses invoices as collateral for a line of credit

Sell invoices for immediate cash

You are granted a credit facility based on the value of your unpaid invoices, and can draw from your available funds at any time

Factor gives you an advance when the invoice is sent and sends you the rest once the customer pays (minus a factoring fee)

You are responsible for collecting invoice payments

Factor is responsible for collecting invoice payments

With invoice factoring, you’ll receive a partial payment for your unpaid invoices. Once the lender collects the total invoice amount from your customer, you’ll be paid the remaining amount, minus fees and interest.

With invoice discounting, you’ll receive approximately 90% to 95% of the total invoice. Once you collect full payment from the customer, you’ll repay the lender for the loan, including interest and fees.

Personal credit often doesn’t play a significant role in qualifying for invoice financing. Instead, the quantity and quality of the invoices are most important. That is, are the invoice totals enough to cover fees and interest charged by the lender, and are your customers likely to pay? You also must be a B2B business in order to qualify for invoice financing.

Recommended Option: BlueVine

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BlueVine provides invoice factoring lines up to $5 million. Rates are as low as 0.25% per week, with funding approvals as fast as 24 hours.

With BlueVine’s invoice factoring, you’ll receive 80% to 85% of your invoice total immediately. Once the invoice is paid, you’ll receive the remaining amount after fees have been paid to the lender.

To qualify, you must have a personal credit score of at least 530 and a time in business of at least 3 months. You must also be a B2B business with at least $100,000 in annual revenue.

If you don’t qualify for invoice factoring from BlueVine, the lender also offers lines of credit up to $250,000 with rates starting at 4.8%.

Hiring, Training & Covering Payroll

Your business is growing, and you’re taking on new projects. This is what you’ve worked so hard to achieve, but what happens when you don’t have the manpower to complete all your jobs? The logical answer is to hire and train new employees, but what do you do when you don’t have the funds to bring on new hires?

Whether you’re stalling on hiring and training new employees due to financial issues or you’re struggling to cover your current payroll, an installment loan may be the solution.

Installment Loans

An installment loan is a loan that is paid in regularly scheduled installments. You’ll receive a lump sum of money, which is paid back over time along with interest.

Installment loans provide you with the money you need for any business expense. You’ll have money in your account to pay your expenses, such as covering payroll or hiring new employees, and can repay it through more manageable daily, weekly, or monthly payments. Rates, terms, and borrowing limits vary by lender and are typically based on creditworthiness and your ability to repay the loan.

Recommended Option: OnDeck

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OnDeck offers small business installment loans up to $500,000. Eligible borrowers can apply for short-term loans with repayment terms of 3 to 12 months or long-term options with repayment terms of 15 to 36 months. Daily or weekly repayment plans are available.

Short-term loans have simple interest rates starting at 9%, while long-term loans have annual rates as low as 9.99%. An origination fee between 2.5% and 4% of the total loan amount is required, and fees are reduced for repeat customers. Interest rates are based on business and personal credit scores, as well as the performance of your business.

To qualify, your business must be in operations for at least one year. You also need a personal credit score of at least 500 and $100,000 in annual revenue.

Best Financing Options For Contractor Startups

You have the skills, you have the drive, and you’re ready to start your contracting business. There’s just one problem: you don’t have the money to start your business and traditional lenders aren’t taking you seriously. Before you throw in the towel, know that there are financing options that will help you get your business off the ground.

Startup and new business owners can look into SBA Microloans, which provide up to $50,000 to cover startup expenses. The average loan amount given through this program is $13,000. SBA Microloans are available through SBA-approved nonprofit intermediary lenders.

SBA 504 Loans

Borrowing Amount

$500 – $50,000

Term Lengths

Up to 6 years

Interest Rates

6.5% – 13%

Borrowing Fees

Possible fees from the loan issuer

Personal Guarantee

Guarantee required from anybody who owns at least 20% of the business

Collateral

Collateral normally required, but depends on the lender

Down Payment

  • No down payment for most businesses
  • Possible 20% down payment for startups
  • Possible 10% down payment for business acquisition loan

If you don’t qualify for an SBA loan, you can also apply for microloans through nonprofit organizations and alternative lenders like those below:

Lender Max. Borrowing Amount Rates Req. Credit Score Next Steps

$500,000

2.9% – 18.72% factor rate

550

Apply Now

$250,000

9% – 36% factor rate

500

Apply Now

$500,000

9.4% – 99.7% APR

500

Apply Now

Another option to consider is taking out a personal loan to use for startup expenses. With this strategy, you can receive an affordable loan with favorable terms (if you have a solid credit score) from lenders like these:

Lender Borrowing Amount Term Interest Rate Min. Credit Score Next Steps

$2K – $25K 2 – 4 years 15.49% to 30% 600 Apply Now

$1K – $50K 3 or 5 years 8.16% – 27.99% 620 Apply Now

$2K – $35K 3 or 5 years 6.95% – 35.99% APR 640 Apply Now

lending club logo

$1K – $40K 3 or 5 years 5.32% – 30.99% 640 Compare

Peer-to-peer, or P2P, loans may be another option for funding your new business venture. Crowdfunding and loans from friends and family are additional loan options available to cover startup costs.

What To Consider When Choosing A Lender

5 C's of Credit: What Lenders Look For

Before you begin the application process, you must choose the right lender. The internet gives you access to more lenders than ever. While this gives you more choices, it can also complicate the process of finding the right lender that offers the loan you need.

The goal of your loan is to advance your business. You want to ensure that your return on investment is worth the cost of the loan. You also want to make sure that you work with a lender that provides the best rates and terms for your financial situation.

To narrow down your choices, ask yourself a few key questions. Once you’ve answered these questions, you’ll be one step closer to selecting your lender and applying for your business loan.

Why Do I Need A Loan?

Before you apply for a loan, ask yourself why you need the money. Having a plan for loan proceeds is the first step in responsible borrowing. When you apply for a loan, you’ll need to communicate with your lender how you plan to use the funds.

Knowing how you will use the money will also help you choose a lender. Let’s say you’re seeking a line of credit. A lender that only offers short-term or installment loans won’t fit your needs, so you can scratch this lender off the list and keep shopping.

How Much Money Do I Need?

Calculating how much money you need before applying for a loan is just a financially responsible move. You never want to take money just because it’s offered to you.

For most loans, you need to request a specific amount from your lender during the application process. Before filling out an application, calculate how much money you need. For example, if you’re purchasing supplies or equipment, shop around and gather quotes and bids. While you’re making your calculations, also figure out how big of a loan you can afford.

By determining how much money you need, you’ll be able to immediately eliminate multiple lenders. If you need $150,000 but a lender has maximum borrowing limits of $100,000, you can simply move on to the next financing option.

Am I Qualified?

Every lender will review your personal information and documentation to determine if you are qualified to receive a loan. Applying to a lender with requirements that you simply don’t meet is a waste of time … and creates an unnecessary inquiry on your credit report.

For every lender you’re considering, evaluate all requirements. Is your personal credit score high enough? How about revenue? Does the lender have a time in business requirement, and if so, do you meet it? Can you provide all documentation that is required by the lender? Pull your free credit score, evaluate your finances, and search for a lender based on this information.

If you don’t qualify with one lender — or several — don’t worry. There are plenty of other options available for your specific financial situation.

Do The Rates & Terms Meet My Needs?

Taking out a loan that you can’t afford is a recipe for disaster. While the loan may be helpful over the short-term, the long-term effects can be damaging. This is why you need to make sure that the rates and terms best fit your needs.

Compare interest rates and repayment terms to make sure you’re receiving the most affordable loan for your situation. For example, a short-term loan that’s funded quickly may seem like a great option when you need quick cash. However, a loan with a high factor rate, short repayment terms, and weekly payments may quickly become too much for your business to handle. Be smart, be responsible, and shop around before signing on the dotted line.

What You Need To Apply For Contractor Business Loans

The process for applying for a contractor business loan differs based on your chosen loan product and the lender you select. For some loans — such as lines of credit and business credit cards – the application process is quick and easy, and you can be approved minutes after applying. For other financing options – such as SBA loans – the application, underwriting, and approval process may take several weeks or longer.

During the application process, you’ll submit information and documentation to the lender. At the most basic level, you’ll provide basic information including your name, business name, address, telephone number, email address, social security number, and federal tax ID number.

While this may be sufficient for some loans, other loans require more documentation. These requirements include:

  • Personal & Business Credit Reports/Scores
  • Personal & Business Bank Statements
  • Income Statements
  • Profit & Loss Statements
  • Balance Sheets
  • Business Licenses
  • Business Owner Resumes
  • Business Plan

Requirements vary by lender. During the underwriting process, your lender may require additional information. Make sure to make yourself available through email or over the phone to provide additional details and documentation as needed to expedite your loan request.

Final Thoughts

Being a contractor certainly has its advantages and can be a profitable venture. However, running your own business doesn’t come without its challenges — especially when it comes to finances. No matter what scenario you face, knowing your loan options, taking the time to find a lender that meets your needs, and borrowing responsibly can help you clear these financial hurdles.

The post Top Business Financing Options For Contractors appeared first on Merchant Maverick.

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Farm And Agriculture Loans: Your Best Options

Running a farm or agricultural business isn’t without its challenges. While the agricultural industry has its own unique hurdles to overcome, there’s one challenge farmers, ranchers, and other entrepreneurs in the industry face just like any other business owner: financial issues and the need for capital.

Owning and operating a farm, ranch, or agricultural business comes with hefty expenses — expenses that a business owner often can’t face alone. From purchasing heavy-duty farming equipment to buying land to hiring employees, these expenses can pile up quickly, leaving even the most prepared small business owner struggling to stay afloat.

If you’re in the agricultural industry and you’re facing a financial burden, know that there are options available to you. Read on to learn more about agriculture and farm financing options, how to qualify, and which type of financing is best for your financial needs.

Government Programs For Agriculture & Farm Financing

The United States Department of Agriculture, or USDA, is a federal government department that manages programs in the areas of food, nutrition, natural resources, rural development, and agriculture. The USDA has 29 different agencies, including the Farm Services Agency, which provides resources for business owners in agricultural and farming industries. One of the primary resources provided by the FSA is low-cost loan programs.

There are several loan programs available to fit the needs of new and established farming and agriculture businesses.

The FSA’s Direct Farm Operating loan program provides loans for starting or operating a farm or ranch. This program provides up to $300,000 for reorganizing a farm, purchasing livestock, buying farm equipment, and paying for operating expenses. Proceeds can also be used toward the improvement or repair of buildings, land and water development, and refinancing farm-related debt.

The FSA also has microloan programs targeted at beginning farmers and farmers that operate non-traditional farms. The Direct Farm Ownership Microloan provides up to $50,000 for down payments on land, soil and water conservation projects, and the construction, repair, or improvements of farm and service buildings and dwellings.

Direct Farm Operating Microloans provide up to $50,000 for use toward tools, fencing, equipment, irrigation systems, and other operating expenses.

The FSA’s Direct Farm Ownership loan is another option for farmers. This loan is available up to $300,000. Through this program, the FSA provides up to 100% financing for the purchase or expansion of farms.

There are two additional loans available through the FSA’s Direct Farm Ownership program. The Direct Farm Ownership Joint Financing loan gives up to 50% of the cost or value of purchased properties, with maximum borrowing amounts capped at $300,000. The remaining balance is financed by a traditional lender, state programs, or the seller of the property.

The Direct Farm Ownership Down Payment loan is available to new farmers and ranchers, women, and minorities. Through this program, borrowers receive up to 45% of either the purchase price, appraised value, or $667,000. Borrowing limitations are based on the lesser amount of the three options. All borrowers must pay 5% of the purchase price to receive this loan.

The FSA also has Guaranteed Farm Loan programs that make it easier for farmers and ranchers to receive loans through commercial lenders. Through these programs, the FSA will guarantee up to 95% of a loan, putting less risk on the lender and increasing the borrower’s chances for approval. The FSA guarantees up to $1.429 million for farm ownership, conservation, and operating loans. For land contracts, up to $500,000 is guaranteed.

Finally, the FSA offers the Emergency loan program. Through this program, up to $500,000 is available to cover expenses following a disaster such as a flood, tornado, or drought. Loan proceeds are used toward the restoration or replacement of property, covering production costs or living expenses, reorganization of operations, and refinancing of non-real estate debt.

Government Farm Loan Rates & Fees

The rates and fees associated with receiving a government farm loan vary based on the type of loan selected.

For the Direct Farm Operating loan, terms range from 12 months for general operating and living expenses up to 7 years for repairs, equipment, or livestock purchases. Interest rates are set by the FSA, which posts updated rates on the first day of each month. As of November 2018, rates for Direct Farm Operating loans are 3.75%.

Direct Farm Operating Microloan repayment terms are based on the purpose of the loan. Operating and living expenses are repaid within 12 months, while equipment or livestock purchases come with repayment terms of 7 years. Interest rates are 3.75%.

Direct Ownership Microloans have maximum repayment terms of 25 years and interest rates of 4.125%.

The Direct Farm Ownership loan and the Direct Farm Joint Financing loan each have maximum repayment terms of 40 years. Interest rates for both loans are 2.5%. For the Direct Farm Ownership Down Payment loan, repayment terms are 20 years. The portion of the loan not financed by the FSA is required to have a minimum 30-year repayment period. The interest rate is 1.5%.

The repayment terms for FSA Emergency loans are based on the loss and the borrower’s ability to repay. At least one payment per year must be made by the borrower. If funds are used for operating expenses, repayment terms are 12 months, but an 18-month extended repayment period is available. The interest rate for these loans is 3.75%.

If a borrower receives a Guaranteed loan through an FSA-approved commercial lender, repayment terms are based on the type of loan, collateral, and the borrower’s ability to repay. Generally, Operating loans have a 7-year repayment term, while maximum terms for Farm Ownership loans max out at 50 years. Interest rates are set by the lender but may not exceed the FSA’s maximum rates.

What You Need To Qualify For A Government Farm Loan

For all government farm loans, borrowers must be a citizen, non-citizen national, or legal resident alien in the U.S. and specific U.S. territories. All borrowers must be unable to obtain credit from other lenders before applying for an FSA loan. Borrowers must not be delinquent on federal debt, with the exception of IRS tax debt.

All borrowers must also have no previous debt forgiveness from the FSA. Potential borrowers with Federal Crop Insurance violations are not eligible for FSA loans.

All borrowers must also have sufficient credit history. The FSA does not use credit scores but instead looks at a borrower’s past repayment history with creditors and the federal government. A lack of credit history, isolated incidents of slow payments, or adverse issues that were out of the borrower’s control will not automatically disqualify the borrower.

To qualify for an FSA Microloan, all borrowers must have 3 years of farm management experience acquired within 10 years of the date of applying for the loan.

For some loans, collateral is required. For FSA Operating Microloans, a lien on farm property or agricultural projects totaling 100% to 150% of the loan amount is required. For Direct Farm Ownership Microloans, the real estate that is purchased or improved with loan proceeds serves as the collateral.

To receive an emergency loan, additional information is required. Borrowers must apply within 8 months of the date the disaster was declared, submit declinations of credit from commercial lenders, and obtain crop insurance for the coming year to receive the loan.

Grants For Farm & Agriculture Businesses

startup grants

A grant is money given — not loaned — by the government or other organizations to fund a project, start a business, and provide other benefits to farm and agriculture businesses.

The USDA offers Farm Labor Housing Direct Loans & Grants. Funding from this program is used to develop housing for farm laborers when commercial credit can’t be obtained. Funds can be used to construct, improve, repair, or buy housing for domestic laborers. Funds can also be used to buy and improve land, purchase furnishings, or pay construction loan interest. Eligible applicants can receive a need-based grant that pays up to 90% of project costs. Applicants can apply through the USDA website.

The USDA also offers Value Added Producer Grants, which are used to expand marketing opportunities, create new products, and boost income. This program has working capital grants up to $250,000 and planning grants up to $75,000. Beginning or socially-disadvantaged farmers and ranchers and small- or medium-sized farms may receive priority for these grants. Applicants can apply through the USDA website.

Sustainable Agriculture Research & Education, or SARE, offers sustainable agriculture grants nationwide. Farmers and ranchers can submit a grant proposal to receive thousands of dollars in funding for their project. Grants have been awarded in the past surrounding topics including pest management, livestock production, soil quality, marketing, and energy. Applications can be submitted through the SARE website.

Grants are also available at the state level. Applicants can visit their state’s Department of Agriculture website to learn more about grant opportunities, how to apply, and eligibility requirements.

Alternative Loans & Financing For Agriculture Businesses

If you don’t qualify for a government loan or grant, there are financing options available for you. If you need money quickly, have a low credit score, or have specific needs that aren’t met with government grants and loans, alternative lenders provide several loan options for farmers and ranchers.

Equipment Loans

Best For…

Purchasing equipment

To keep your farm, ranch, or agriculture business running smoothly, you need the right tools and equipment. Backhoes, bailers, tractors, and other heavy equipment come at an expensive price – a cost that isn’t financially feasible for most farmers or ranchers. Whether you’re upgrading old equipment or adding more to keep up with your expanding business, an equipment loan makes these purchases more affordable.

An equipment loan is used to purchase equipment and tools needed for your business. With an equipment loan, you can buy the equipment you need and put it into use immediately without having to pay the full price up-front. Instead, you’ll pay through affordable scheduled payments spread out over time.

Depending on your creditworthiness, a down payment of 10% to 20% of the full purchase price is required. Borrowers with high credit scores may qualify for $0 down payment options. Once the down payment is paid, the lender provides the remaining funds. A weekly or monthly payment is made toward the balance, plus any interest charged by the lender. The equipment purchased with loan proceeds is typically your collateral. In most cases, you don’t need additional collateral, but a blanket lien or personal guarantee is usually required.

Our Top Pick: Lendio

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Lendio is a loan aggregator that connects borrowers with multiple lenders via a single application. Equipment financing is just one loan product offered through Lendio. Through Lendio, you can apply for $5,000 to $5 million to purchase equipment. Loan terms are between 1 and 5 years. Interest rates for the most creditworthy borrowers are 7.5%.

The application process takes about 15 minutes, and you can receive funding in as little as 24 hours. Loans can be used to purchase heavy equipment, office furniture, software, vehicles, and more. To qualify through Lendio, you need at least $50,000 in annual revenue, a credit score of at least 650, and a time in business of at least 12 months. If your credit score is below 650, you may qualify with a lender based on cash flow and revenue from the last 3 to 6 months.

Business Credit Cards

Best For…

Recurring monthly expenses or emergencies

A business credit card is always a good financial resource to have on hand. With a business credit card, you’ll be able to purchase supplies, pay operating expenses, or cover an emergency expense without waiting for a loan approval. Once approved, you’ll be able to use your card immediately anywhere credit cards are accepted.

After using your card, you’ll make payments each month toward your balance and interest. As you repay your balance, these funds are available to use again. Many business credit cards also have rewards programs. By responsibly borrowing and paying your balance off as quickly as possible, you can rack up points to use toward cash back, flights, hotels, and other rewards.

Our Top Pick: Chase Ink Business Unlimited

Chase Ink Business Unlimited


chase ink business unlimited
Apply Now 

Annual Fee:


$0

 

Purchase APR:


15.24% – 21.24%, Variable

Chase Ink Business Unlimited is a business credit card for borrowers with good to excellent credit history. This card boasts multiple benefits, including no annual fee and introductory APR of 0% for the first 12 months.

The Chase Ink Business Unlimited card also has a rewards program that gives you 1.5% cash back on all purchases. The card has variable APR of 15.24% to 21.24% and has a bonus offer of $500 cash back after spending $3,000 within the first 3 months of opening your account.

Installment Loans

Best For…

Purchasing supplies or inventory

With an installment loan, you receive a lump sum of money that is repaid through scheduled installments. Repayments may be daily, weekly, or monthly based on the lender you select. Loan proceeds can be used for any business purpose, including purchasing supplies or inventory, buying livestock, or using the funds as working capital. Installment loans are best if you know the specific cost of your expense. If you are unsure of how much money you need, consider a more flexible option like a line of credit or business credit card.

The repayment terms, interest rates, and fees vary by lender. The most creditworthy borrowers typically receive the lowest rates and best repayment terms.

Our Top Pick: Fundation

fundation logo

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Fundation provides installment loans of between $20,000 and $500,000 for qualified borrowers. Repayment terms are between 1 and 4 years with interest rates between 7.99% and 29.99%. Payments toward the loan and interest are made monthly.

To qualify for a Fundation installment loan, you must be in business for at least 2 years. Your annual revenue must be at least $100,000, and you need a credit score of at least 660 to receive this loan.

Short-Term Loans

Best For…

Working capital needs and seasonal gaps in revenue

When you apply for a short-term loan, you’ll receive one lump sum that will be repaid back over a shorter period of time. While most short-term loans have repayment terms of one year or less, some alternative lenders offer terms up to 3 years.

Short-term loans are repaid through daily, weekly, or monthly payments. In addition to paying off the principal balance, you’ll also pay what is known as a factor rate instead of interest. This fee is calculated into the cost of the loan.

Short-term loans are a good choice for farmers, ranchers, and other business owners because they are quick and easy to receive. Short-term loans are available for any business purpose, but because they can be funded quickly, they work well for working capital, to fill seasonal revenue gaps, or to cover an emergency expense. Alternative lenders offer more options than ever, so you can find the financing you need regardless of credit score, annual revenue, or other challenges.

Our Top Pick: OnDeck

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OnDeck offers short-term loans up to $500,000. The factor rate for OnDeck loans is between 1.003 to 1.04 per month. A one-time origination fee between 2.5% and 4% of the total loan amount is charged.

To qualify for an OnDeck loan, you must be in business for at least 1 year and have annual revenue of at least $100,000. The minimum credit score required is 500, but the lender reports that most business owners have credit scores of 660 or higher.

If an OnDeck short-term loan doesn’t fit your needs, the lender also offers lines of credit up to $100,000 with APRs as low as 13.99%.

Lines Of Credit

Best For…

Businesses that need a flexible financing option

Sometimes, you need money and you need it right away. In these situations, waiting days or even weeks can be a struggle. Instead of pursuing a loan that requires lengthy application and underwriting processes, apply for a line of credit that you can access whenever you need extra money.

A line of credit is a type of revolving credit that allows you to make multiple draws as needed. Once approved for a line of credit, you’ll receive a credit limit. You can request any amount of money up to and including this credit limit. Funds are then deposited to your business bank account – often within one business day. Interest or fees apply to the funds that have been used. As you pay down your balance, the funds are available for you to use again, similar to a credit card.

Our Top Pick: FundBox

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FundBox offers lines of credit up to $100,000. Repayment terms are 12 or 24 weeks. Fees begin at 4.66% and are paid along with your balance through weekly payments. There are no prepayment penalties, and paying off your loan early helps you save on fees.

Approval and credit limits are determined by the health of your business. The application process takes about 10 minutes, during which you’ll connect your business bank account and accounting software. Once approved, funds are available immediately and can be deposited into your bank account as soon as the next business day.

Real Estate Loans

Best For…

The purchase of commercial real estate property or land

Your farm or ranch is prospering, and it’s time for an expansion. The only problem is you don’t have the funds to purchase real estate or land. Instead of taking on this financial burden yourself, make the smart move and apply for a commercial real estate loan.

A commercial real estate loan is used for commercial property or land. After paying a down payment that is typically 10% to 20% of the total purchase price, your lender provides the remaining funds. You can use the land or property immediately while repaying the principal balance and interest over several years. The real estate purchased with loan funds is the collateral for the loan.

Our Top Pick: SmartBiz

Review

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The Small Business Administration offers affordable and flexible loan options for entrepreneurs and business owners, but navigating the application process is difficult for many. SmartBiz is a lender that takes the guesswork out of SBA loans.

Through SmartBiz, you can apply for an affordable SBA 7(a) loan to purchase commercial real estate. Loan amounts of $500,000 to $5 million are available. SmartBiz offers fixed and variable interest rates between 6.75% to 8% with repayment terms up to 25 years. Loans can be closed as soon as 30 days after approval.

To qualify, at least 51% of the property must be owner-occupied. You must be in business for over 2 years and have a minimum credit score of 675. You must sign a personal guarantee and pay fees including a guarantee fee, packaging fee, and closing costs. A down payment of 10% to 20% is required.

What To Consider When Choosing A Lender

Choosing a lender and the right loan product for your farm, ranch, or agriculture business doesn’t have to be complicated. Ask yourself a few important questions to narrow down which lender to select.

How Much Money Do I Need?

Before you apply for a loan, calculate how much money you need. Your lender will want to know how much you are requesting, and this will also help you choose which lender to work with. If you need $250,000, a lender with maximum loan amounts of $100,000 won’t be a good fit. Understand how much you need — and how much you can afford — before choosing your lender.

How Will I Use The Loan?

How you plan to use your loan proceeds can help you determine the best lender for your situation. Some lenders have restrictions on how loans are used. For example, an equipment loan can only be used for the purchase of tools or equipment. If you need money to use as working capital, another loan option — such as a short-term loan or line of credit — would best fit your financial needs.

Do I Meet All Lender Requirements?

All lenders have different requirements based on their own policies as well as the types of loans offered. Understand a lender’s requirements before applying, and make sure you meet all of them. Remember, many lenders consider time in business, creditworthiness, and annual revenues. Evaluate your revenue and time in business and pull your free credit score online before applying for a loan.

What You’ll Need To Apply For A Farm Loan

The documentation and information requirements for a farm loan are based on the type of loan you’re pursuing. For all loans, you will provide basic information about yourself and your business, such as your legal name, business name, address, phone number, social security number, and federal tax ID.

You will also need to prove that you are creditworthy and have the means to pay back the loan. Additional documentation to receive a farm loan may include:

  • Business & Personal Bank Statements
  • Income Statements
  • Business & Personal Tax Returns
  • Balance Sheets
  • Profit & Loss Statements
  • Business & Personal Credit Scores

An application and all information and documentation must be submitted to your chosen lender. Underwriting and approval times vary based on the loan selected. Real estate loans and government farm loans may take several weeks or longer, while some alternative loans are approved instantly. To make the loan process more efficient, make yourself available to answer questions or provide additional information as needed. Learn more about the requirements for receiving a business loan.

Final Thoughts

Running a farm, ranch, or agriculture business is never easy, but it’s nearly impossible without adequate capital. The great news is that with so many government loan, alternative loan, and grant options, there is funding available for any purpose. As a responsible business owner, it’s your job to understand how much you need and can afford, do your research, and shop for the most affordable funding options. Once you do, you’ll be on the path to receiving the funding you need to help your business prosper.

The post Farm And Agriculture Loans: Your Best Options appeared first on Merchant Maverick.

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Square Loyalty Program Review

Square Loyalty Promotional Image

The concept of a punch card is nothing new; coffee shops the world over have been slinging their punched out business cards alongside foamy espresso beverages for decades. Likewise, the concept of companies offering rewards to returning companies goes way back into the annals of entrepreneurship. But as the business sector dives further into the capabilities of digital tools, loyalty programs have come along for the ride.

Square has been tinkering with loyalty features since 2012. About two years ago, they stopped offering a free add-on to the basic Square POS, creating a paid-for loyalty product instead. After some concerns about that initial re-launch, Square Loyalty is back again with a new pricing scheme and feature list.

Square has consistently expanded its business products and generally does a decent job at creating useful tools that people feel confident implementing in their businesses. How well does the new version of Square Loyalty measure up? Let’s find out!

Reader eCommerce Retail Food Service
Free App & Reader Square eCommerce Square for Retail Square for Restaurants
Get Started Get Started Get Started Get Started
Free, general-purpose POS software and reader for iOS and Android Easy integration with popular platforms plus API for customization Specialized software for more complex retail stores Specialized software for full-service restaurants
$0/month $0/month $60/month $60/month
Always Free Always Free Free Trial Free Trial

Pricing

The price of Square Loyalty is determined by how many “loyalty visits” you get in a given month. A loyalty visit is exactly what it sounds like: whenever a customer signs up for or returns to your loyalty program, that counts as one visit. Square tracks your visits, then charges you based on the following pricing scheme:

Loyalty Visits Price Per Month
1-50 $25
50-100 $35
101-200 $50
201-500 $75
501-1,000 $125
1,001-2,500 $175
2,501-5,000 $250
5,001-10,000 $500

If you think you will require more than 10,000 loyalty visits in a single month, you will need to get in touch with Square for more information on exact pricing.

Ease Of Use

The team at Square has built their brand on the simplicity of their software; just about anyone can pick Square up and use it with little-to-no training. Not surprisingly, the loyalty rewards program operates with the same simplistic design. This is a system designed for intuitive use on both sides of the register for customers and employees alike. As long as you already use Square products for payment processing and point of sale, this will work just fine for you.

Setting up your rewards account is as simple as determining the economy of your rewards points (how many should customers get after a visit?) and creating the rewards themselves (how will customers spend their points once they have accumulated?). From there, you can refine your system as time goes on, making adjustments as needed–you will want to be clear with your customers about what is going on, though!

On the customer side, simply have new program members enter their phone numbers to sign up. From then on, your Square Register will remember the customer and apportion their points on subsequent views. Speaking as one who has encountered Square loyalty rewards in the wild, I can report that the system works well, and is even a little exciting!

Features

Square Loyalty comes with the following features:

  • Points System: You get to pick between three different loyalty schemes: by visit, by amount spent, or by item. Customers will get text message updates on the number of points they have built up. Basically, your decision for which system to use will come down to your industry and business model. Selling beverages or baked goods? Visit-based rewards might be best. Working retail? Amount-based might be best. Selling niche products? You might want to go by item.
  • Customer Rewards: You can select three different kinds of rewards that align vaguely with the three different loyalty schemes: free item, discount on the entire sale, or discount on a product category. Obviously, some business types will find one of these systems more useful than others; it’s up to you to determine which will be best for you.
  • Customer Data: Once your customers sign up for loyalty rewards, you can begin tracking information about them. In some industries — coffee shops, for example — you get to know repeat customers quickly as a matter of course. In others, it may be valuable indeed to know a bit more about your clientele, particularly things like their most purchased items and how often they visit your shop.
  • Analytics: Square gives you a bird’s eye view of how your loyalty program is helping your business, showing data on all your customers and how often they visit your shop. You can see how many people use your loyalty rewards, how many points they have, and more. This is the feature that will tell you how well your loyalty program is working, so I definitely recommend checking this out.

Final Thoughts

Square boasts that customers who enroll in their loyalty programs spend 37% more than non-enrolled customers. A cynical person might point out that the kind of person who signs up for a loyalty program would be automatically more likely to spend more at a particular store than other, but at the same time, 37% is difficult to argue with.

But is Square’s loyalty feature ultimately worth the price? I definitely found the monthly cost a bit prohibitive; $50 for just over 50 loyalty visits is a lot. It is possible that at higher subscription levels the price comes down and makes more economic sense, but in order for that to be true, you will need more customers to sign up.

On the other hand, from what I can tell, the feature set works reasonably well — especially when you consider how closely it plays with Square’s flagship POS product. That right there might make it worth it to stop and consider coughing up the cash, especially if you are using one of those snazzy new Square Registers. I suspect many Square Loyalty users hop on board the hype train for this very reason; they are already using some kind of Square product in the first place. In fact, one of the biggest caveats to Square Loyalty (apart from price) is the fact that in order to use it, you will have to already be using Square POS (at the very least); if you have a different system, this is not the loyalty program you have been looking for.

As usual, the final decision comes down to you. Are you using a Square product? Is the touted increase in customer engagement worth what might be an excessive price? Fortunately, you can give it a try before deciding for sure. Be warned though! Though Square provides a generous 30-day trial, your customers may feel less than generous if they discover that your rewards program has up and disappeared just as they were about to redeem one of their rewards. Tread carefully then, and make sure you are confident in your decisions before committing even to the free trial.

Reader eCommerce Retail Food Service
Free App & Reader Square eCommerce Square for Retail Square for Restaurants
Get Started Get Started Get Started Get Started
Free, general-purpose POS software and reader for iOS and Android Easy integration with popular platforms plus API for customization Specialized software for more complex retail stores Specialized software for full-service restaurants
$0/month $0/month $60/month $60/month
Always Free Always Free Free Trial Free Trial

The post Square Loyalty Program Review appeared first on Merchant Maverick.

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Zoho Books VS Wave

ZohoBooks-vs-Wave

Zoho Books VS Wave

Accounting

✓

✓

Features

Pricing

✓

Tie

Hardware & Software Requirements

Tie

✓

Users & Permissions

Ease of Use

✓

✓

Mobile Apps

✓

Customer Service & Support

Tie

Negative Reviews & Complaints

Tie

Tie

Positive Reviews & Testimonials

Tie

✓

Integrations

✓

Security

?

Final Verdict

?

When you think of accounting software, you usually think of big names like Xero or QuickBooks. But what about the programs that are designed specifically with the small business owner in mind? In this post, we’re going to put two of the top small business accounting software programs face to face: Zoho Books and Wave.

Redesigned in 2014, Zoho Books is a scalable, full-featured accounting software that even gives QuickBooks Online a run for its money. The software has only improved over the years. It features beautiful invoicing, strong mobile apps, excellent customer support, and decent integrations. It also gives users the unique ability to send invoices in over 10 different languages.

Wave is free accounting software that has only gotten better as time goes on. The software has grown to support over 3.5 million users and offers a robust feature set with unique additions like lending, scheduling recurring invoices by timezone, and a brand-new light ecommerce tool. The software also offers professional bookkeeping services and supports personal and business accounting.

But which service comes out on top? And more importantly, which is right for your business?

Read on to find out.

At Merchant Maverick, our goal is to help you to find the best software for your small business needs. To make your decision easier, we’ve carefully researched and tested both products. We’ll compare Zoho Books and QuickBooks Online (QBO) based on features, pricing, customer experience, reputation, and more, so you don’t have to.

Don’t have time to read the whole post? Or looking for a different accounting option? Check out our top-rated accounting solutions to see our favorite recommendations.

Accounting

Winner: Wave

Both Zoho Books and Wave offer strong accounting features. Each software uses double-entry accounting and offers both cash-basis and accrual accounting. Both support accounting reports, a customizable chart of accounts, journal entries, bank reconciliation, and fixed asset management.

The two are almost neck and neck in this area, although Wave sets itself apart by having recently added an additional bookkeeping service called Wave+ where users can purchase additional accounting help from professional bookkeepers. Wave also has built-in personal accounting tools.

Features

Winner: Zoho Books

Zoho Books Features Wave

✓

Invoicing

✓

✓

Multiple Invoice Languages

✘

✓

Estimates

✓

✓

Expense Tracking

✓

✓

Bank Reconciliation

✓

✓

Chart Of Accounts

✓

✓

Fixed Asset Management

✓

✓

Contact Management

✓

✓

Accounts Payable

✓

✓

Time Tracking

✓

✓

Project Management

✘

✓

Inventory

✓

✓

Reports

✓

✘

eCommerce Checkouts

✓

✓

Tracking Categories

✘

✓

Multi-Currency Support

✓

✓

Sales Tax

✓

✓

Tax Support

✘

✓

Importing & Exporting

✓

✘

Lending

✓

Zoho Books and Wave have a lot of similar features. Both offer expense tracking, invoicing, contact management, and more. The difference is the depth and functionality of these features.

While Wave has a strong feature set and unique additions like a lightweight ecommerce tool and lending, Zoho Books’ features are far more advanced. Zoho Books offers some of the best invoicing on the market with 15 different templates and international invoicing. The software also offers project management (which Wave lacks entirely), better inventory, better time tracking, and better reporting, making it the clear winner here.

Pricing

Winner: Wave

Zoho Books offers three scalable pricing plans ranging from $9 – $29/month. Wave is completely free. The only additional costs are payroll, payment processing, and Wave+.

When it comes to pricing, you can’t beat free. And unlike most free software, Wave doesn’t put artificial limits on features like invoicing and estimates. You get complete access to fully-functioning features for $0/month. Another point in favor of Wave is that the software actually offers payroll. The service may cost extra, but in contrast, Zoho Books doesn’t have any payroll support or payroll integrations.

Hardware & Software Requirements

Winner: Zoho Books

As cloud-based software, both Zoho Books and Wave work with nearly any device so long as you have an internet connection.

Users & Permissions

Winner: Zoho Books

Depending on your plan, Zoho Books supports between 1 and 10 users, although you can purchase additional users for an extra cost. The software offers very basic user permissions. Wave is designed for the small business owner, meaning there are no additional users. You can technically invite “collaborators” who can have “view-only” or “view & edit” access to your Wave account, but the features they are able to access are limited, making Zoho Books the winner here.

Ease Of Use

Winner: Wave

Both Wave and Zoho Books are easy to use. They each have a modern UI that is well-organized, and setup is quick. However, because of Zoho Books’ sheer number of features, the software is a bit harder to navigate and get used to. Wave, on the other hand, is easy enough for anyone to use, no matter what their accounting background (or lack thereof) looks like.

Mobile Apps

Winner: Zoho Books

It’s no question that Zoho Books is the winner here. Zoho Books has always been known for strong, fully-featured mobile apps. Their Android and iPhone apps receive high ratings across the board, and the company supports smartwatch, Microsoft, and Kindle apps as well.

Wave’s mobile apps could stand improvement. Right now, there are two separate apps, one for invoices and one for receipts. Existing Wave users complain that they want one, full-featured app.

Customer Service & Support

Winner: Zoho Books

Zoho Books offers the most excellent customer support by far. Zoho Books’ phone support has hardly any wait times, and in my experience, representatives are friendly and helpful. The company also has an expansive help center, email, live chat, videos, and more.

While Wave does offer good resources like a well-developed help center and strong blog, you can only contact Wave support by email (unless you purchase payroll or credit card processing, in which case you get phone and chat support). Wave’s email response times often take over a day.

Negative Reviews & Complaints

Winner: Tie

Both Zoho Books and Wave receive mostly positive customer reviews from satisfied customers. They have a similar ratio of negative to positive reviews, resulting in a tie for this section.

The few complaints Zoho Books users have are about the lack of payroll and limited integrations. Complaints about Wave revolve around poor mobile apps, limited integrations, and limited features.

Positive Reviews & Testimonials

Winner: Tie

Both Zoho Books and Wave have many satisfied customers and high customer ratings. Zoho Books receives 4.5/5 stars on Capterra and 4.6/5 stars on G2Crowd, while Wave receives 4.4/5 stars on G2Crowd and 9/10 stars on TrustRadius.

Zoho Books users appreciate the software’s ease of use, strong mobile apps, affordable price plans, and constant updates. Wave users praise the software for its ease of use, free price, personal accounting, and feature selection.

Integrations

Winner: Tie

Zoho Books offers 33 integrations while Wave only has 3 integrations. However, both Zoho Books users and Wave users complain about a lack of integrations. Each software’s saving grace is that they both connect with Zapier, an integration that connects them to 1000+ other third-party apps.

Security

Winner: Zoho Books

Both Zoho Books and Wave offer strong security. Each uses 256-bit SSL encryption, regular data backups, and 24/7 data monitoring. We gave Zoho Books the victory in this section because Zoho Books is far more forthcoming about their security information so users can be 100% confident that their data is protected.

And The Winner Is…

Zoho Books VS Wave

Wave is powerful software that puts up quite the fight, but it just doesn’t have the features and capabilities of Zoho Books — at least not yet. A more robust feature set, strong mobile apps, more integrations, forthright security, and excellent customer service give Zoho Books the advantage.

Zoho Books is ideal for small to medium businesses in need of strong accounting that want the capabilities of QuickBooks Online without having to pay the price. Zoho Books is an affordable QBO alternative with a robust feature set and some of the best invoicing on the market, which is why we’ve named it the Best Accounting Software for Invoicing. Zoho Books’ invoicing features make it ideal for business in need of international invoicing. The only drawback is the lack of payroll, which could be a deal-breaker for some businesses.

If your business does need payroll or if you’re looking for free accounting software, Wave might be the better choice for your business. Wave is ideal for small business owners looking for easy bookkeeping software to manage their businesses with. There’s a reason we’ve named it the Best Free Accounting Software. Wave has an impressive features set — particularly for a free app — and offers a few key additions that Zoho Books lacks(payroll, lending, and the brand new eCommerce checkouts tool). It also has a strong Etsy integration, making it ideal for Etsy sellers.

Maybe after reading about Zoho Books and Wave, neither option seems like the perfect fit for your business. Don’t worry! Our comprehensive accounting reviews can help you find the best software for your business. If you need extra help deciding, read our Complete Guide To Choose Online Accounting Software.

Check out our full Zoho Books and Wave reviews for more information. Take advantage of Zoho Books’ free trial or start a free account with Wave to get a feel for each software, and feel free to reach out with any questions you may have.

The post Zoho Books VS Wave appeared first on Merchant Maverick.

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FreshBooks VS Wave

Freshbooks-vs-Wave

FreshBooks VS Wave

Accounting

✓

Features

✓

Pricing

✓

Tie

Hardware & Software Requirements

Tie

Tie

Users & Permissions

Tie

✓

Ease of Use

✓

Mobile Apps

✓

Customer Service & Support

Tie

Negative Reviews & Complaints

Tie

Tie

Positive Reviews & Testimonials

Tie

✓

Integrations

Tie

Security

Tie

?

Final Verdict

?

ReviewVisit

ReviewVisit

Choosing the right software for your business isn’t easy, especially when you have two great choices to pick from like FreshBooks and Wave.

FreshBooks has been helping small business owners with their invoices and expenses since 2003. The software offers strong mobile apps, excellent customer service, and good customer reviews. A recent redesign has made the software easier to use than ever.

Wave is completely free accounting software that has grown to support over 3 million users. The app offers strong accounting with ample features including project management, invoicing, and a basic ecommerce tool. Wave is also the only accounting software besides QuickBooks Online to offer lending services.

But which software is better? That’s what we’re here to tell you.

At Merchant Maverick, our goal is to help you to find the best software for your small business needs. So to make your decision easier, we’ve carefully researched and tested both products. We’ll put FreshBooks and Wave head to head by comparing features, pricing, customer experience, reputation, and more, so you don’t have to. Read on to see which software is best for your business.

Don’t have time to read the whole post? Or looking for a different accounting option? Check out our top-rated accounting solutions to see our favorite recommendations.

Accounting

Winner: Wave

This one’s easy. Wave wins by default because FreshBooks is not accounting software. While FreshBooks does offer a few basic bookkeeping tools, it does not use double-entry accounting. It also has no bank reconciliation features, no accounts payable, and no customizable chart of accounts.

Wave, on the other hand, uses double-entry accounting and offers both accrual and cash-basis accounting. The software offers bank reconciliation, journal entries, a detailed chart of accounts, and basic reporting,

Features

Winner: Wave 

FreshBooks Features Wave

✓

Invoicing

✓

✓

Estimates

✓

✓

Client Portal

✓

✓

Expense Tracking

✓

✘

Bank Reconciliation

✓

✓

Chart of Accounts

✓

✘

Accounts Payable

✓

✘

Inventory

✓

✓

Time Tracking

✓

✓

Project Management

✓

✓

Reports

✓

✘

Journal Entries

✓

✓

Sales Tax

✓

✓

Multi-Currency

✓

✘

Lending

✓

The two programs are pretty on par in terms of invoice template choices, time tracking, importing/exporting, and multi-currency support. However, Wave’s features are more developed than those of FreshBooks. Wave offers 5 more reports than FreshBooks, better project management, and better inventory. Wave also offers key features that FreshBooks is missing like bank reconciliation, vendor management, accounts payable, and a brand new ecommerce tool called Checkouts.

Pricing

Winner: Wave

You can’t beat free. Wave costs $0/month — no gimmicks, no tricks, no limitations. The only thing you have to pay for is adding payroll, payment processing, or bookkeeping help from a professional Wave advisor. FreshBooks costs $15/month – $50/month. FreshBooks is more expensive and offers fewer features, so businesses get a lot more bang for their buck with Wave.

Hardware & Software Requirements

Winner: Tie

As cloud-based software, both FreshBooks and Wave are compatible with nearly any device so long as you have an internet connection.

Users & Permissions

Winner: Tie

Neither FreshBooks nor Wave shines in the “additional users” department. With FreshBooks, each pricing plan only comes with one user. You can add additional users for $10/month each, but you can’t set any user permissions. Wave was designed for the small business owner, meaning it’s not possible to have additional users. You can add “collaborators” who can view or view and edit your Wave account, but there are no permissions available here either.

If you’re looking for multiple users and strong users permissions, take a look at Zoho Books, QuickBooks Online, or Xero instead.

Ease Of Use

Winner: FreshBooks

Both Wave and FreshBooks have attractive interfaces that are well-organized and easy to use. However, FreshBooks has better customer support which helps you learn to navigate the software faster.

Mobile Apps

Winner: FreshBooks

FreshBooks is well-known for its strong, full-featured mobile apps. Wave, on the other hand, has separated its apps into Receipts by Wave and Invoices by Wave. Neither app is full-featured and many users complain that they want a single, all-encompassing Wave app instead.

Customer Service & Support

Winner: FreshBooks

When it comes to customer support, FreshBooks can’t be beaten. FreshBooks offers great phone support with hardly any wait times. Representatives are generally friendly, helpful, and well-informed. In addition, FreshBooks offers a detailed help center, email support, and a comprehensive blog. Wave only offers phone support for payroll and payment processing users, leaving regular users a well-developed help center and email support. Most emails are responded to within a day, but it’s harder to get a quick response than with FreshBooks.

Negative Reviews & Complaints

Winner: Tie

Both FreshBooks and Wave are loved by customers. Each software receives mostly positive reviews, with a few negative complaints thrown in. For FreshBooks, users call for more features, better invoice templates, and true accounting. Wave users complain of limited mobile apps, lack of integrations, and occasionally slow servers.

Positive Reviews & Complaints

Winner: Tie

FreshBooks and Wave have a similar ration of positive to negative complaints. Most users seemed thrilled with both programs and each software receives high marks across popular review sites. FreshBooks users love that the software is easy to use, offers professional invoicing, and has great customer service. Wave users love the software’s features, ease of use, and, of course, its price.

Integrations

Winner: FreshBooks

FreshBooks offers 70+ integrations as opposed to Wave’s four, so if add-ons are important to your business, FreshBooks is clearly the way to go.

Security

Winner: Tie

Both FreshBooks and Wave offer strong security. They each use 256-bit SSL encryption, redundancy, and regular backups, and they each host their servers with trusted security providers.

And The Winner Is…

While FreshBooks reputation for ease of use is well-earned, the software doesn’t always live up to these high expectations. First of all, despite its advertising, FreshBooks isn’t true cloud accounting software.

Wave, on the other hand, offers true accounting software and an incredible number of features for $0/month. In addition to the basic tools you’d expect from an accounting software, features like lending and Checkouts set the software apart and allow Wave to give even QuickBooks Online a run for its money. For small businesses looking to save money, you can’t beat Wave. The software is also ideal for Etsy users and ecommerce businesses.

That being said, businesses that don’t need the accounting capabilities or a large number of features may find FreshBooks to be a good choice. The software has better mobile apps and customer service than Wave. However, FreshBooks is far more expensive than Wave and your money only goes a short way with the software.

Perhaps, after reading this, neither option seems like the right choice for you. Our comprehensive accounting reviews can help you explore all of your options so you can choose the perfect software for your business.

Check out our full FreshBooks and Wave reviews for more information.

The post FreshBooks VS Wave appeared first on Merchant Maverick.

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The Complete Guide to PayPal’s Fees, Rates, and Pricing

As a consumer mobile wallet, PayPal is darn-near ubiquitous. But with more than 17 million merchants worldwide calling PayPal their payments processor, it’s also a massive force in the merchant services industry. So if you’re looking for a quick and easy way to get set up with credit card payments, whether for a POS system or online, PayPal is probably going to be on your radar, and with good reason.

But should you choose PayPal as your payments processor, and what will it cost? The good news is that PayPal offers transparent, pay-as-you-go pricing with no monthly fees, no account termination fees, or other hidden costs. You can predict fairly well what you’ll pay with PayPal, and all payment processing fees are deducted before PayPal deposits funds in your account.

The one major drawback is that PayPal is a third-party processor, also referred to as an aggregator. That means the company essentially onboards merchants as sub-users of one, giant merchant account that includes the entirety of PayPal’s merchant base. This means that the company does minimal underwriting before approving an account. You don’t need to provide much info beyond confirming your identity to open an account. However, this does mean you face a greater amount of scrutiny after opening an account, and PayPal can terminate your account or place a hold on funds with no notice to you.

That sounds worrisome, but the reality is it only happens to a small percentage of merchants. You can also take steps to protect yourself by recognizing the common red flags that processors look for and avoiding them. Check out our article on how to avoid merchant accounts holds and terminations to learn more.

PayPal obviously isn’t the right choice for everyone. There are restrictions on the types of products merchants can offer, and it doesn’t support certain business models. High-risk businesses should look somewhere else for a merchant account. However, most merchants should be fine with a PayPal account for payment processing.

Read on for a closer look at what you can expect to pay with PayPal as your business’ credit card processor! You can also check out our PayPal and PayPal Here reviews for a focused look at the products and services.

Payment Processing Fees

The major concern for most merchants who use (or are considering using) PayPal are the payment processing costs, so we’ll start there. PayPal offers predictable, flat-rate pricing for all merchants. You don’t have to worry about higher interchange for American Express cards, or MCCs, or qualified vs non-qualified transactions. Your exact rate will depend on the type of transaction.

Merchants who use PayPal’s mPOS app, PayPal Here, or integrate with one of PayPal’s POS partners (such as Vend), will pay the following for in-person transactions:

  • 2.7% per swiped, dipped or tapped transaction
  • 3.5 + $0.15 per keyed transaction

For online transactions, including monthly subscription charges, donations, and digital invoices, PayPal charges the following:

  • 2.9% + $0.30 per online transaction

That’s it. Really. The simplicity of PayPal’s pricing is one of the biggest draws for merchants. You can predict fairly easily what your pricing will be and, because PayPal deducts its fees before depositing funds in your account, you don’t have to worry about an end-of-the-month invoice or going over a limit and incurring additional fees.

What About Alternative Payment Processing Rates?

If you’re wondering whether PayPal offers any sort of alternative payment plans, the answer is yes. Merchants with an average transaction size under $10 can opt for the micropayments plan. PayPal also offers a nonprofit discount for online transactions to qualified 501(c)(3) nonprofits.

  • Micropayments Plan: 5% + $0.05 per transaction. (Note: This rate applies to all transactions, even those above $10)
  • Nonprofit Discount (Online Only): 2.2% + $0.30 per transaction

If you integrate with one of PayPal’s partner POS systems, such as Vend or TouchBistro, you may be eligible for special discounts  (presumably volume-based) or other promotions. However, these offers aren’t clearly disclosed, just advertised on the POS software sites.

Other PayPal Fees For Payment Processing

While PayPal does charge a few extra fees relating to payment processing, they aren’t many. But these are what you might come across:

  • 1.5% Cross-Border Transaction Fee: For US merchants who accept online payments from buyers out of the country, or in-person transactions involving a card from outside the US, PayPal charges a 1.5% cross-border fee. That means, for example, that a US merchant accepting a Canadian card at a POS terminal will pay 4% of the transaction value to PayPal.
  • 2.5% Currency Conversion Fee:  If PayPal has to convert the currency before it deposits the funds in your account, you’ll pay another 2.5% conversion fee. Whether you have to pay the conversion fee depends on the customer’s bank and whether it will handle the currency conversion (usually at a cost to the customer).
  • $20 Chargeback Fee: Chargeback fees are pretty standard, and if a customer files a chargeback against you, PayPal will assess a $20 fee in addition to withdrawing the funds to cover the transaction amount.
  • Refund Fee: In the event of a refund, PayPal will refund the percentage-based fee from the transaction to you, but keep the fixed fee. For most in-person transactions that means you’ll pay nothing. However, refunds on keyed transactions mean you’ll pay $0.15. Refunds on online or invoiced transactions will cost $0.30. PayPal can be a bit confusing about how this works in its transaction summaries, but be aware that you will pay a fee for most refunded transactions, albeit a small one.
  • 1% Instant Transfer Fee: If you’d like to move your PayPal balance to a bank account immediately, you can do that — for a fee. PayPal charges merchants 1% of the transfer value, capped at $10 per transfer, but your funds will be available typically within 30 minutes (s0 long as your bank’s system isn’t incredibly slow). You’ll have to connect an eligible debit card to support instant transfers as well. However, if you prefer to have instant access to funds without paying a fee, don’t forget that PayPal offers a business debit card that’s linked to your PayPal balance, too.

Software Fees

One of the big draws for PayPal is the lack of software fees. Instead of paying a monthly fee for PayPal’s ecommerce features, you pay only the payment transaction costs (in most circumstances — but we’ll come back to this in a moment). While you’ll need to arrange for your own domain and web hosting, you can implement PayPal’s “buy” and “donate” buttons with no additional costs. You can send digital invoices for free and only pay the transaction cost when the invoice is paid.

Likewise, access to PayPal’s mPOS app, PayPal Here (read our review) is also free. However, if you opt to integrate PayPal into a POS app, invoicing software, or another platform, you’ll be responsible for those software costs. PayPal doesn’t charge anything for use of the integration.

Also, take note: PayPal doesn’t charge merchants any PCI compliance fees, account maintenance fees, customer service fees, or termination/account closure fees.

However, PayPal does offer a couple of advanced software options that come with additional costs:

  • PayPal Payments Pro: The “Pro” plan from PayPal has two advantages. One, it includes a virtual terminal to accept payments over the phone by keying in a card from a browser window.  Two, it allows merchants to keep the checkout process on their own website rather than redirecting to PayPal to complete a transaction. This does come with a couple of concerns. For one, you’re not automatically PCI compliant and you’ll need to take additional steps to handle your PCI compliance. Two, $30/month for a virtual terminal is pretty pricey considering you’ll still pay higher rates than swiped/dipped/tapped transactions. Square and Shopify both offer free virtual terminals. Also, opting for PayPal Payments Pro and the Virtual Terminal will mean a few different transaction fees to worry about:
    • 3.5% American Express Fee: Any Amex cards will process at the higher 3.5% rate if you’re on the Pro plan.
    • 3.1% + $0.30 Virtual Terminal Fee: Any transactions processed through PayPal’s Virtual Terminal process at 3.1% + $0.30, plus the international transaction fee if applicable.
  • Recurring Billing: If you’d like to sell subscriptions (software, gift boxes, etc.), PayPal does offer a set of recurring billing tools. Recurring payments are available with PayPal’s Express Checkout Option at no additional charge, but if you have PayPal Payments Pro and want advanced tools, they’ll cost you $10/month. This doesn’t apply to “Donate” buttons, which have their own option for donors to choose between a one-time or recurring donation.

  • Mass Payouts: If you need to distribute funds to multiple parties, PayPal’s Mass Payouts feature might be an appealing option. You have two options here: using PayPal’s API to handle the command, or uploading a spreadsheet. Which method you choose affects how much you pay — if you opt to upload a spreadsheet through PayPal’s website, you’ll pay 2% per transaction, capped at a maximum $1 USD, which is pretty reasonable. If you opt for the API, you’ll pay a flat fee of $0.25 USD per payment. This is a great way to distribute payments to contractors, for example, or manage marketplace payments if you use PayPal’s platform.

PayPal Hardware Costs

Unless you’re integrating PayPal with a POS system or using the free mPOS, PayPal Here, you won’t have to worry about hardware costs. But if you do, you’ll have a few options for card readers:

  • Chip & Swipe Reader: PayPal’s entry-level chip reader sells for $24.99. In addition to EMV capabilities it supports magstripe transactions, but no contactless payments. However, it does connect to phones and tablets via Bluetooth and comes with a convenient mounting clip.
  • Chip & Tap Reader: To get a credit card reader that supports magstripe, EMV, and contactless payments, you’ll need the Chip and Tap reader, which sells for $59.99. We’ve already reviewed this reader as well as the optional charging dock ($30 separately, or bundled for $79.99), with a very positive rating. Again, the Chip and Tap reader connects via Bluetooth. In addition to the charging dock, it comes with a convenient mounting clip.
  • Chip Card Reader: The Chip Card Reader was the first EMV-enabled card reader PayPal offered, and it’s still the only hardware option for merchants who want to integrate with one of PayPal’s POS partners. It sells for $99 on the PayPal site, with an optional charging dock. Given the price point, it shouldn’t surprise you to learn that this all-in-one reader connects via Bluetooth.

  • Mobile Card Reader: PayPal used to offer its entry-level swipe-only reader for free, but now it sells for $15 because PayPal, like most processors, really wants you to start accepting EMV. Use of the mobile reader comes with limitations on accounts, so if you do a decent volume of credit card transactions and don’t want to encounter any holds on your funds, you should avoid the mobile reader at all costs:

*Key-in transactions and sales over $500 in a 7-day period made with the Mobile Card Reader are subject to an automatic 30-day reserve where funds are held in your PayPal account to cover the high risk associated with these types of transactions. For increased protection from fraudulent transactions, we recommend using a chip card reader. All PayPal accounts are subject to policies that can lead to account restrictions in the form of holds, limitations, or reserves. Additional information about these policies can be found in the PayPal User Agreement.

Apart from the cardreaders, PayPal doesn’t offer any proprietary hardware. If you need a countertop register setup, you can choose from an array of tablet stands, receipt printers, and cash drawers. A few select models are confirmed to work, while many others are “unofficially supported” in that they’re likely to work in most cases. The PayPal Here app doesn’t officially support any external barcode scanners (it supports in-app scanning using the device’s camera), but Bluetooth-enabled scanners may work with your setup.

Is PayPal Actually a Good Value?

We’ve talked pretty extensively about the cost of using PayPal, but we haven’t really talked about value. Because value is so much more than just the actual, physical cost. Value encompasses convenience, customer service, and other extra factors that could easily justify paying more than the absolute lowest prices.

PayPal isn’t the absolute cheapest processor out there — especially not for businesses that handle more than $10,000/month in credit card transactions. Larger businesses may be eligible for merchant accounts with volume discounts. For low-volume businesses, PayPal often does offer more competitive pricing because of the lack of monthly fees. The flat-rate pricing, especially for in-person transactions, can mean cost savings over interchange-plus.

But the real value in PayPal is the massive consumer trust and convenience. Just about everyone recognizes the PayPal name, and with 200+ million consumer users around the world, it’s safe to say a lot of people have PayPal accounts. The barriers to entry are minimal — you don’t need a huge amount of technological experience to implement PayPal for in-person or online payments. As long as you aren’t using PayPal Payments Pro, you don’t even have to worry about PCI compliance. PayPal handles it for you, at no additional cost.

Apart from the issue of account terminations or funding holds, the only other consistent complaint about PayPal is its customer service, and reports vary. Some merchants say they’ve never had a problem with customer service. Others say that their support reps have been downright unhelpful when they’ve called in. Fortunately, PayPal offers extensive self-help resources so you should be able to deal with most technical issues without having to contact PayPal directly.

I can’t say unequivocally that PayPal is right for everyone. It’s not. But it is a really good option for a lot of merchants, especially low-volume businesses that are just starting out. For a closer look at PayPal and all its services, we recommend checking out our PayPal and PayPal Here reviews.

If you’re not sure PayPal is right for you, I suggest looking at our Square vs. PayPal article, as the two companies are fairly similar in their business models and offerings.

Thanks for reading! If you have any questions or comments, we’d love to hear from you, so please drop us a comment!

The post The Complete Guide to PayPal’s Fees, Rates, and Pricing appeared first on Merchant Maverick.

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FreshBooks VS Classic FreshBooks

 

FreshBooks review

FreshBooks VS FreshBooks Classic

Tie

Accounting

Tie

Features

✓

Pricing

✓

Tie

Hardware & Software Requirements

Tie

✓

Mobile Apps

Tie

Customer Service & Support 

Tie

Tie

Negative Reviews & Complaints

Tie

Tie

Positive Reviews & Testimonials

Tie

✓

Integrations

Tie

Security

Tie

?

Final Verdict

?

Visit

Visit

FreshBooks has been a part of the accounting scene since 2003 and is one of the biggest names in the invoicing and accounting industry. In 2017, the company launched a completely new version of the software, but unlike most companies, FreshBooks didn’t simply eradicate the older version — users can choose between FreshBooks or Classic FreshBooks.

But which version is better? How does new FreshBooks stack up to the tried and true Classic FreshBooks? What’s the difference between each version, and — most importantly — which version of FreshBooks is right for you?

That’s exactly what we’re here to answer. We’ll give you the complete lowdown on both FreshBooks and Classic FreshBooks, and only one can come out on top.

At Merchant Maverick, our goal is to help you to find the best software for your small business needs. So to make your decision easier, we’ve carefully researched and tested both products. We’ll put FreshBooks and Classic head to head by comparing features, pricing, customer experience, reputation, and more, so you don’t have to. Read on to see which software is best for your business.

Don’t have time to read the whole post? Or looking for a different accounting option? Check out our top-rated accounting solutions to see our favorite recommendations.

Accounting

Winner: Tie

Despite the company’s name — “FreshBooks Cloud Accounting” — neither FreshBooks nor Classic FreshBooks is actually a true accounting software program. The apps don’t use double-entry accounting and don’t support key accounting features like accounts payable and bank reconciliation. The latest version of FreshBooks does offer a chart of accounts, which is a step in the right direction, but you can’t customize or edit the accounts.

My main beef with FreshBooks as a company isn’t that the apps lacks these features, but that FreshBooks advertises itself as a cloud accounting software when it’s really more of an invoicing and light bookkeeping tool.

For small business owners who aren’t looking for a full accounting package and just want a few tools to manage their income and expenses, FreshBooks or Classic FreshBooks could both be good choices.

Features

Winner: Classic FreshBooks

FreshBooks Features Classic FreshBooks

✓

Invoicing

✓

✓

Estimates

✓

✓

Client Portal

✓

✓

Contact Management

✓

✓

Expense Tracking

✓

✘

Inventory

✓

✓

Project Management

✓

✓

Time Tracking

✓

✓

Reports

✓

✘

Default Email Messages

✓

✘

Request Customer Review

✓

✓

Sales Tax

✓

✓

Multi-Currency

✓

✓

Importing/Exporting

✓

On paper, the programs look pretty similar in terms of features, but the depth of Classic FreshBooks’ offerings far surpasses the newer version of FreshBooks.

Classic FreshBooks offers a full inventory feature, the ability to create default email messages, the ability to request customers reviews, more advanced time tracking, and nearly 20 more reports than FreshBooks. The one feature FreshBooks has over Classic FreshBooks is a built-in communication feature for you to talk with customers and your employees.

While the company is constantly updating FreshBooks, the new version has a long way to go before it can stand up to the robust, developed feature set of Classic FreshBooks.

Pricing

Winner: Classic FreshBooks

FreshBooks offers three pricing plans ranging from $15 – $50/month. Classic FreshBooks offers four pricing plans ranging from $12.95 – $39.95/month plus a fifth custom plan for larger businesses. You can receive a small discount for purchasing a yearly subscription instead of a monthly subscription of either version of the software.

Classic FreshBooks takes the cake here because it’s more scalable and gives you more bang for your buck in terms of features.

Hardware & Software Requirements

Winner: Tie

As cloud-based software, both FreshBooks and Classic FreshBooks are compatible on nearly any device so long as you have an internet connection.

Users & Permissions

Winner: Classic FreshBooks

Neither FreshBooks nor FreshBooks Classic is particularly well-suited for companies with multiple users. FreshBooks only offers a single user for each price plan, although you can purchase additional users for $10/month each. Classic FreshBooks offers 1 – 2 users depending on the pricing plan, and additional users can be purchased for $10/month each.

Classic FreshBooks requires extra users to log in with your same login, though you can set user permissions, whereas FreshBooks has no user permissions at this time. Classic FreshBooks wins by a hair in this category.

Ease Of Use

Winner: FreshBooks

Here is where the new design shines. The current version of FreshBooks worked out some of Classic FreshBooks’ navigational difficulties, making FreshBooks easier to use than ever. Both apps share the same great customer service so it’s easy to get help if you want some extra assistance learning and using the latest software.

Mobile Apps

Winner: Tie

FreshBooks has always been known for strong mobile apps, and the latest version is no exception. Both FreshBooks and Classic FreshBooks offer fully-featured mobile apps that make it easy to run your small business on the go.

Customer Service & Support

Winner: Tie

FreshBooks, as a company, offers some of the best customer support around. Both FreshBooks and Classic FreshBooks offer phone support, email support, in-software help, and well-developed help centers. Phone wait times are almost non-existent and representatives are friendly and helpful. The company also maintains an active FreshBooks blog with tons of information on how to succeed as a small business.

Negative Reviews & Complaints

Winner: Tie

For as long as we’ve been following FreshBooks, the software has been much-loved by users and received only a small handful of complaints. Today this is still the case. The tricky part about FreshBooks reviews is that it’s nigh impossible to tell which reviews refer to New FreshBooks and which refer to Classic FreshBooks.

Some users complain that they don’t like the new update and miss Classic FreshBooks, while others praise the new version and say they like it more than the original. The verdict is still out on which version users will end up likely best, which is why we’ve left this category as a tie.

Positive Reviews & Testimonials

Winner: Tie

Both Classic FreshBooks and FreshBooks have received positive praise from customers and high marks as far as customer ratings go. While it is again difficult to tell which version customers are referencing in reviews, it’s easy to see this pattern: users love that FreshBooks is easy to use, has excellent customer service, and offers great invoicing with strong mobile apps.

Integrations

Winner: FreshBooks

When the new version of FreshBooks first launched, integrations were a big issue. Now FreshBooks offers 70+ integrations, which beats out Classic FreshBooks’ 40+ integrations.

Security

Winner: Tie

FreshBooks uses the same security measures for both of version of the software. The company uses 256-bit SSL encryption, Cisco-powered firewalls, and regular intrusion detection and vulnerability testing. Data is backed up onto two Rackspace-hosted servers in undisclosed locations.

And The Winner Is…

Classic FreshBooks!

I’m a firm believer in the “if it ain’t broke, don’t fix it philosophy.” There are certain aspects of Classic FreshBooks that could be improved, but instead of adding more features, FreshBooks sacrificed looks for functionality with the release of New FreshBooks. While New FreshBooks is slightly easy to navigate and has a nice UI, FreshBooks already had a nice UI and user experience — plus, what FreshBooks users were crying out for were more features, not less. FreshBooks doesn’t have an inventory feature and is missing key automations like default email messages that were available with Classic FreshBooks but are no missing.

And to top it off, not only does FreshBooks offers fewer features than Classic FreshBooks, but it’s also more expensive and supports fewer users (with no accountant access either).

To be fair, the company is constantly releasing updates for FreshBooks and the new version offers far more integrations than Classic FreshBooks.

In this case, choosing which program is right for you will highly depend on the features your business needs. New users who haven’t used FreshBooks Classic may find the newer version suits their needs well. Veteran FreshBooks users might want to switch back to Classic until the latest version goes through a few more round of updates.

Or, maybe after reading this review you want to find a less expensive invoicing solution or a full-fledged accounting solution. Our invoicing reviews and accounting reviews can help!

If you’re an existing FreshBooks user, we’d love to hear from you! Let us know which version you like best in the comments below.

The post FreshBooks VS Classic FreshBooks appeared first on Merchant Maverick.

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Slow-Paying Customers? 10 Tips To Get Your Invoices Paid Faster

Slow Paying Customers? 10 Tips To Get Your Invoices Paid Faster

If your company relies on invoices, you’re probably all too familiar with slow-paying customers. According to the popular accounting software Xero, “More than a third of small business invoices are paid late.”

Late invoices seem like an inevitable part of running a business, but they don’t have to be. That’s why we’ve created a list of practical steps you can take to increase your chances of getting paid on time.

Here are our top ten tips to get your invoices paid faster.

Send Online Invoices

If you’re still mailing invoices manually, now is the time to start saving time and money by switching to e-invoices. Sending invoices online is easy, cost-effective and best of all — fast.

Instead of spending time printing invoices, stuffing envelopes, and waiting on the mailman, you can send your invoices to customers instantly. Your customers get their invoices faster, which means you get paid quicker. And you won’t need to worry any longer about whether your invoice got lost in the mail or sent to the wrong address. Most invoicing software programs offer invoice tracking so you can see exactly when your customer receives and views their online invoice.

When it comes to small businesses, time is money. But money is also money. With e-invoices, you’ll save both. While you may need to spend a small monthly fee on invoicing or accounting software, you won’t have to purchase envelopes, ink, paper, stamps, etc., and you can use your newfound free time for managing other more important aspects of your business.

Take a look at some of our favorite online invoicing options or continue reading to learn all of the perks invoicing software offers.

Offer Online Payments Options

Slow-Paying Customers? 10 Tips To Get Your Invoices Paid Faster

One of the other great perks of using online invoices is the ability to accept online payments. When it comes to getting invoices paid fast, the key is to make it as easy as possible for customers to pay you.

That’s why payment processors are so important. They’re quick, convenient, and available with almost all invoicing and accounting programs offers multiple payment processing options.

According to the popular invoicing software FreshBooks, offering an online payment option significantly increases your chances of being paid on time; and according to Xero, companies that accept both online credit card payments and Paypal payments get paid 20 days faster than those that don’t.

To learn more about accepting online payments, download our free Beginner’s Guide to Payment Processing. If you’re already sending online invoices but aren’t yet accepting online payments, read our post The Best Payment Processors For Accounting Software.

Choose The Right Invoice Template

Believe it or not, choosing the right invoice template can play a role in getting your invoices paid on time.

Most invoicing software programs offer multiple templates options. You want to pick a template that is attractive, simple, and clear to read. This includes choosing a legible, easy-to-read font like Arial or Helvetica (I usually shy away from serif fonts, like Times New Roman, as they are harder to read and often make the invoice look outdated and cluttered).

According to Invoice Ninja:

[An invoice] that’s colorful, distinctive, and attractive in appearance will stand our in their minds. This can help clients to remember your invoice and nudge them towards paying promptly.

Not only do you want an attractive invoice, but you also want an invoice that clearly shows:

  • The invoice due date
  • The invoice amount
  • Your company’s contact and payment information
  • The products or services the customer is paying for
  • The invoice’s terms and conditions

Clarifying and highlighting this information makes it easier for your customers to know when and how to pay you, which can speed up the payment process.

Here are a few examples of strong, attractive invoice templates:



Pick The Right Date

Choosing an invoice template with a clear due date is a definite step in the right direction, but you also want to make sure you choose the right due date.

Oftentimes, you’ll see invoices that say “due upon receipt.” This is a perfect example of what not to do. It doesn’t give a clear due date, which encourages late payments. Another term you often see is a “Net 30” due date. This means that the invoice payment is due 30 days after the invoice is sent. Some customers may not be familiar with this notation. Instead, be clear and specific. If an invoice is due 30 days after it’s sent and it was sent on September 1st, just say that the invoice is due September 30th. When customers have a set-in-stone deadline, they are more likely to pay on time.

If you want your invoices to be paid faster, also consider moving up your due date. If you typically have invoices due 30 days after they’re sent, try moving that up to 15 days. This way you are spending less time waiting on cash.

Give Discounts

merchant cash advance industry

 

You catch more flies with honey than vinegar, and invoicing is no exception. A great way to get your invoices paid fast is to offer a small discount for customers who pay early. Maybe consider offering a 5% or 10% discount for customers who pay their invoices in the first ten days. Everyone likes saving money, so those customers who are looking for savings will jump on the deal and pay their invoice quickly. While you may lose a small amount of your sale, you’ll receive cash faster, which may be more than worth it.

This option may not be for everyone or every type of business, but is definitely worth considering if your business is struggling with cash flow due to late invoice payments.

Enforce Late Fees

If incentives don’t work, you can also consider charging a late fee or interest for late payments. While no one likes to be the bad cop, sometimes you have to take drastic measures to receive your hard-earned money.

If you do go this route, be sure to clearly state your late fee policy on your invoice’s terms and conditions and send reminders to inform your customers that you will begin calculating interest or charging a fee if you don’t receive your invoice in time.

Send Invoices Right Away

Get your merchant funds fast. Image description: Clock with money underneath it

Your customers can’t pay you if they haven’t been sent an invoice. That’s why staying on top of invoicing is one of the most important things a business owner can do. The sooner you send your invoice the sooner you can get paid. Plus, customers are more likely to pay quickly for items or services that they just received.

It can be easy to become overwhelmed and fall behind on invoices. Luckily, there are tons of great invoicing tools out there to help automize your invoicing process. Nearly every invoicing software allows you to send recurring invoices to repeat customers. Apps like Zoho Invoice and QuickBooks Online allow you to auto schedule invoices in advance to help save time. And programs like Invoice2go offer great mobile apps so you can send invoices on straight from your phone.

Send Payment Reminders

Slow-Paying Customers? 10 Tips To Get Your Invoices Paid Faster

Another way to avoid late-paying customers is to send regular invoice payment reminders. Sometimes people simply forget and need a nudge in the right direction toward payment. Send invoice reminders a few days before the invoice is due, the day the invoice is due, and a few days after the invoice is missed.

Hopefully, the first reminder will be enough to get you your payment. If not, continue sending email reminders and calling them on the phone. No one likes to chase down payments or be a nag, but it’s your responsibility to follow up with slow-paying customers.

One of the perks of invoicing software is that most programs allow you to create automatic payment reminders, which saves a lot of time. These programs almost always have an Accounts Payable report as well so you can view your customer’s outstanding balances without having to manually track who hasn’t paid yet.

Invoice In Phases

If you run a project-based business, consider invoicing in phases. Instead of sending one giant invoice at the end of the job, maybe try invoicing once certain phases of the tasks are complete. Or, consider charging a deposit for your work to discourage customers from avoiding payment altogether. This way, you can even out your cash flow.

Use Invoicing Software

When it comes to getting your invoices paid on time, invoicing software is integral. With it, you can send invoices quickly, automize your invoicing process, and encourage customers to pay quickly with online payments.

Here at Merchant Maverick, we highly recommend that small businesses use invoicing software at the very least, or purchase full-fledged accounting software to send online invoices and balance the books. In this post, we’ve already mentioned several of the great perks of e-invoicing and invoicing software.

Here is a full list of the reasons you should use invoicing software:

  • To automate your invoicing process
  • To send online invoices to customers
  • To accept invoice payments from customers directly online
  • To see when your customers have received and viewed their invoices
  • To send automatic payment reminders to late-paying customers
  • To construct default terms and conditions that automatically appear on every invoice
  • To create default invoice email messages to make sending invoices faster
  • To run helpful reports like Accounts Receivable and Sales by Customer
  • To send invoices on the go with mobile apps
  • To save on paper, ink, and time

If you’re ready to start getting faster invoice payments by using invoicing software, here is a comparison of the top invoicing software options that have the best offerings:

Zoho Invoice Invoice Ninja Invoicera FreshBooks

Review Visit

Review Visit

Review Visit

Review Visit

Pricing

$0 – $29/month

$0 -$12/month

$0 – $15/month

$0 – $50/month

Customer Support

Very Good

Very Good

Good

Very Good

Ease of Use

Very Easy

Easy

Very Easy

Very Easy

Business Size

Small – Medium

Small

Small – Medium

Small

Number of Invoice Templates

16

10

7

2

Autoschedule Invoices

✓

✘

✓

✘

Payment Reminders

✓

✓

✓

✘

International Invoicing

✓

✘

✘

✘

Number of Payment Processors

11

35

30

2 – 6

If you want the same great invoicing features but with added bookkeeping functionality, here are the four best accounting programs for invoicing:

Zoho Books QuickBooks Online Wave Zipbooks

ReviewVisit

ReviewVisit

ReviewVisit

ReviewVisit

Pricing

$0 – $29/month

$15 – $50/month

$0

$0 – $125/month

Customer Support

Very Good

Poor

Good

Good

Ease of Use

Very Easy

Easy

Very Easy

Easy

Business Size

Small

Small – Medium

Small

Small

Number of Invoice Templates

15

5

3

1

Autoschedule Invoices

✓

✓

✘

✘

Payment Reminders

✓

✓

✓

✓

International Invoicing

✓

✘

✘

✘

Invoice Strength Score

✘

✘

✘

✓

Number of Payment Processors

12

15

2

2

If you need help deciding which software is right for you, check out our comprehensive invoicing software reviews, take a look at our post How To Choose Invoicing Software, or leave us a comment below.

What If My Customers Still Don’t Pay Their Invoices On Time?

So what happens if you try all 10 of these tips and you still have late-paying customers? That’s where invoice financing comes in.

With invoice financing, you can sell your unpaid invoices to a factoring company in exchange for immediate cash or you can use your invoices as collateral for a line of credit.

If you’re suffering from inconsistent or poor cash flow due to slow-paying customers, invoicing financing might be the perfect solution for you. Read our Merchant’s Guide To Invoice Financing to learn more or compare the invoice financing options.

Instead of feeling powerless against late invoices, you now have ten tricks under your sleeve to help get those invoices paid faster (eleven if you count invoice financing!) Take action against slow-paying customers and start getting your invoices paid faster today.

The post Slow-Paying Customers? 10 Tips To Get Your Invoices Paid Faster appeared first on Merchant Maverick.

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The 10 Best Restaurant Management Software Apps

It’s almost 2019, if you can believe it, and more than fall leaves or pumpkin spice lattes, tech fans like myself relish the smell of a freshly unboxed smartphone (thanks to Apple’s annual September unveiling). But it’s not just consumers who love mobile tech; businesses do too.  As mobile technology becomes more powerful, businesses — including restaurants — enjoy increasingly robust mobile hardware which can handle more powerful and nuanced software functions.

Indeed, restaurant managers, in particular, have an increasing number of mobile management applications at their disposal. From tablet-based POS systems that accept mobile payments to online reservation services that let customers reserve a table with an app, more restaurant management functions are being conducted online and on mobile devices. But with all the restaurant apps out there, how do you know which ones you should use? Think of it kind of like cooking: if you use too much or too little of an ingredient, it ruins the dish. Similarly, if you use too many management apps, there’s too much overlap in services (not to mention the fact that you’ll run out of bandwidth and money), and if you use just one or two services, you may miss out on critical features.

To help you out, I’ve put together this list of the top restaurant management apps in terms of both quality and popularity. From employee management to accounting to raw ingredient tracking, modern mobile restaurant software can help you with every restaurant management task you can imagine.

I’ve divided these top 10 best restaurant management apps into restaurant point of sale (POS) software apps—which are often complete restaurant management systems with few if any third-party add-ons required— and other restaurant management apps which offer more specific, targeted functionality.

Restaurant POS Systems

Toast TouchBistro Breadcrumb ShopKeep Lightspeed Restaurant

Toast

TouchBistro

Breadcrumb POS by Upserve

ShopKeep

Lightspeed Restaurant

ShopKeep alternatives for restaurants

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Monthly fee

$79+

$69+

$99+

Get a quote

$69+

Cloud-based or Locally Installed

Cloud-based

Locally installed

Cloud-based

Hybrid

Cloud-based

Compatible credit card processors

Toast only

TouchBistro Payments, Square, PayPal, Moneris, Cayan, Chase Paymentech & more

Upserve Payments only

Shopkeep Payments & some others; contact your processor to see if they are supported

Cayan or Mercury in US; iZettle in Europe

Business size

Small to large

Small to medium

Small to large

Small to medium

Small to medium

The awesome thing about today’s app-based restaurant point of sale systems is that they are often complete restaurant management systems. Or if they do not include essential restaurant management functions, they will typically have integrations that work together with other restaurant management apps (for accounting, staff scheduling, inventory management, etc.). As such, your restaurant POS system is a good basis on which to build any other add-ons to your restaurant application suite.

1. Toast

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Highlights

  • Android-based restaurant POS
  • All-in-one restaurant management system
  • Advanced inventory management
  • Add-ons for kitchen display system, kiosk POS, online ordering, delivery management, and more

Try it out: Schedule a Toast demo

Toast is a complete, Android-based restaurant point of sale system and restaurant management system for restaurants of any size. With strong front-end and back-end features, Toast not only takes payments with integrated payment processing, but also tracks your sales, labor, and inventory, organizing that information into useful, internet-accessible reports.

With mobile POS tablets, servers can send orders directly to the kitchen and even process payments right from the table. Kitchen display system and kiosk ordering are some other high-tech add-ons available for purchase from Toast.

Useful Features:

  • Customer data management system
  • Menu creation with comprehensive modifier system
  • Labor management including employee time tracking
  • Inventory management system that includes a recipe costing tool, food cost calculator, and menu engineering chart that shows you your best-selling and most profitable menu items
  • 24/7 customer support
  • Online ordering (extra monthly charge)
  • Delivery management system (extra monthly charge)
  • Customer loyalty program (extra monthly charge)
  • Gift cards (extra monthly charge)

Integrations With Other Restaurant Software:

  • Compeat
  • PeachWorks
  • CTUIT
  • CrunchTime
  • PayTronix
  • Bevager
  • GrubHub (online ordering and delivery)
  • Samsung Pay
  • Kitchensync

Toast also has an open API which lets you create your own applications, should you be so inclined.

The Quick & Dirty:

Pricing for this complete POS and restaurant management system starts at $79/month. Overall, Toast is a good option for restaurants that want a complete restaurant POS and management system and prefer a non-iPad POS.

2. TouchBistro

ShopKeep alternatives for restaurants

 

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Highlights

  • iPad POS system for restaurants
  • Affordable
  • Locally installed
  • Compatible with multiple payment processors
  • Table management with reservations add-on

Get started with TouchBistro: Get a custom quote

TouchBistro is a bestselling iPad POS app for restaurants. While it isn’t an “all-in-one” restaurant management system like Toast, it’s cost-effective, easy to use, and very good at what it does. TouchBistro runs as an app on via one or more iPads, with multi-iPad setups keeping in sync via a local Apple server.

TouchBistro does have some online reports allowing you to view your restaurant metrics anywhere with an internet connection, but it does not require a WiFi connection to operate, other than to process credit card payments. TouchBistro integrates with multiple payment processors.

Useful Features:

  • Tableside ordering
  • Table management with visual layout
  • Menu management
  • Kiosk option
  • Employee management
  • Loyalty program (extra monthly charge)
  • Reservations function with TouchBistro Pro

Integrations With Other Restaurant Management Software:

  • 7Shifts
  • Xero
  • Shogo
  • Square
  • Quickbooks
  • JUST EAT (for online ordering)

The Quick & Dirty:

In summation, TouchBistro a very capable iPad POS for small-to-medium restaurants that are budget-conscious and may not have a powerful internet connection. Pricing starts at $69/month.

3. BreadCrumb POS By Upserve

Review

Highlights

  • All-in-one restaurant POS and restaurant management system
  • iPad-based
  • Fully cloud-based
  • Fully integrated online ordering
  • Must use Upserve for payment processing

Compare: Compare Breadcrumb with other top-rated iPad POS software

Breadcrumb is an all-in-one restaurant management and iPad POS system which could perhaps be considered the iPad-based answer to Toast. Comprehensive restaurant-centric management features that let you manage tables, employees, and menu items with a few finger taps make this restaurant software application suitable for any full-service or quick-service restaurant, no matter the size.

Breadcrumb is fully cloud-based and requires no on-premise server. In-house payment processing is provided exclusively by Breadcrumb’s parent company, Upserve.

Useful Features:

  • Customizable interface
  • “Offline” mode allows you to continue using POS and taking payments if internet goes down
  • Table management with color coding and meal progression graphic
  • Choice between “Server” mode with table view and “Quickserve” mode for bartenders and other quick orders
  • Fully-integrated online ordering system
  • Detailed online reporting suite
  • 24/7 support

Integrations With Other Restaurant Software:

  • Grubhub
  • Shogo
  • Restaurant 365
  • CTUIT
  • Peachworks
  • 7Shifts

The Quick & Dirty:

Breadcrumb pricing starts at $99/month. Again, it’s a solid all-in-one restaurant POS system for iPad with an array of restaurant features. When compared to Toast, however, Breadcrumb might come up slightly short in some respects, such as inventory management. However, Breadcrumb offers integrations with third-party restaurant apps to help fill in any functionality gaps.

4. ShopKeep

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Highlights

  • Powerful retail and restaurant tools
  • Available on iPad (Analytics app on iOS)
  • Multiple hardware options available
  • Pricing based on custom quotes 
  • Loyalty program only as add-on

Excellent all-around POS: Get your custom quote

While it can be used for either restaurant or retail environments, ShopKeep is a great all-around POS software system that’s reasonably priced and extremely easy to use. Aimed at small businesses in particular, this iPad POS software has a pleasant, Apple-centric interface with convenient register buttons for the most popular menu items. ShopKeep uses a “hybrid” data storage system in which data is stored locally on your restaurant’s iPads, and then syncs back to the cloud when there is an internet connection.

As with the other restaurant POS apps on this list, ShopKeep has integrations to make up for any restaurant management features it doesn’t have, such as advanced inventory management and online ordering.

Useful Features:

  • Integrated ShopKeep Payments payment processing
  • Comprehensive register functionality
  • Extensive back-office reporting suite
  • Raw ingredient inventory management
  • 24/7 customer support
  • Staff management tools
  • ShopKeep Pocket App to track restaurant metrics from iPhone or Android

Integrations With Other Restaurant Software:

  • MailChimp
  • ChowBot (online ordering and delivery)
  • Quickbooks
  • AppCard

The Quick & Dirty:

ShopKeep is an affordable and capable iPad POS that works well for small restaurants of any type. ShopKeep pricing is customized based on your individual business’s needs and is comparable to TouchBistro or Lightspeed Restaurant. Note that while Shopkeep does provide fairly priced in-house payment processing via Shopkeep Payments, you can also use an outside payment processor.

5. Lightspeed Restaurant 

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Highlights

  • Affordable iPad POS for restaurants
  • Fully cloud-based
  • Also works on iPhone and iPod touch
  • Best for small-to-medium restaurants

Try out Lightspeed Restaurant: Free trial offer

Lightspeed Restaurant is an app-based iPad POS system built specifically for—you guessed it—restaurants. Lightspeed is not the most complete restaurant POS out there, but it is highly mobile-friendly and certainly delivers a lot of bang for your buck.

The Lightspeed Restaurant app requires iOS 9.3 or later to operate and you can access the backend via any internet-connected web browser. In addition to iPads, Lightspeed can even be used on an iPhone or iPod touch, though using the app on those two devices is best for basic features such as clocking in and quick orders.

Useful Features:

  • Intricate employee management
  • Raw ingredient tracking
  • Tableside ordering lets servers show pictures of menu items to customers
  • Floor planner
  • 24/7 phone support excluding holidays
  • Ability to set up timed promotions
  • In-depth reports

Integrations With Other Restaurant Management Software:

  • Resengo
  • Orderlord
  • QuickBooks
  • Xero
  • MarketMan
  • AppCard
  • Multiple online ordering services

The Quick & Dirty:

Lightspeed Restaurant pricing starts at $69/month. This cloud-based iPad POS app is perfect for small-to-medium restaurants of any type.

Other Restaurant Management Apps

What follows are some more restaurant management apps. Rather than the complete restaurant management tool that POS systems provide, these apps have a limited, specific function — like reservations or email marketing — and may integrate with your POS system or be used separately.

opentable

6. OpenTable

OpenTable is an online reservation and waitlist system that’s convenient to use for both restaurateurs and customers. You can access the app on your smartphone or tablet to view or change reservations, and to see your waitlist in real time. OpenTable is a highly useful tool for restaurant managers and waitstaff alike.

Useful Features:

  • Guests can make online reservations from your website, the OpenTable app or website, or third-party
  • Monitor status of each table in your restaurant
  • Shift management tool

POS Integrations:

  • Aloha
  • Micros
  • POSitouch
  • Heartland Dinerware
  • Squirrel Systems
  • Toast (coming soon)

The Quick & Dirty:

OpenTable is online reservation software for restaurants of any type, especially favored by trendy, upscale bars and eateries. OpenTable’s “Connect” option has limited features but only costs between $0.25 and $2.50 for each booked guest. The “GuestCenter” option with more advanced restaurant management features and POS integration is $249/month + $1 per reservation.

7. Fivestars

fivestars logo

Fivestars is a mobile rewards program for local businesses such as restaurants. Customers sign up for Fivestars’ loyalty program either at your restaurant or via the Fivestars mobile app and start earning rewards and receiving promotional offers via text, email, or push notification. Your staff then redeems your customers’ rewards and offers from your POS or a mobile device.

Fivestars also has a lot of cool marketing features that vary depending on which plan you choose. Whether you want to encourage repeat business or gain a competitive edge on other restaurants in your area, Fivestars will help you do both.

Useful Features:

  • Automated rewards and promotions
  • Send one-time offer anytime your sales need a boost
  • Multiple options for setting up rewards system, e.g., customers could earn points per-dollar, per-visit, etc.
  • Social media integration
  • Customer data collection

POS Integrations:

  • Clover Station
  • Clover Mini
  • QuickBooks POS
  • Harbortouch
  • Aloha
  • Aldelo
  • Windows POS

The Quick & Dirty:

Fivestars online loyalty software is especially popular among cafes and coffee shops, but it’s also used by full-service restaurants, bars, bakeries, smoothie shops, and every other type of brick-and-mortar eatery. Fivestars’ starter plan—which includes two customer-facing tablets, POS integration, the Autopilot program, onboarding and three training sessions—is $279 per month.

Best Accounting Mobile Apps

8. QuickBooks Online

QuickBooks is essential accounting software for small businesses, and restaurants are no exception. In recent years, this quintessential business software has become has become more online and mobile-friendly, with the introduction of QuickBooks Online and excellent mobile apps for iOS and Android.

Besides making accounting tasks simple and affordable for independently owned restaurants, cloud-based Quickbooks Online also integrates with most modern restaurant POS systems.

Useful Features:

  • True double-entry accounting
  • Live bank feeds for easy bank reconciliation
  • Unlimited estimates and invoices
  • Accounts payable with ability to create purchase orders and convert them to bills
  • Easy-to-use payroll and other employee management features (for additional cost)

POS Integrations:

Quickbooks Online integrates with most restaurant POS systems. Usually, the question is not whether Quickbooks integrates with your POS, but rather, the quality of the Quickbooks/POS integration. A direct, seamless integration is ideal. Here you can read about 7 POS system that have direct integrations with Quickbooks.

The Quick & Dirty:

QuickBooks online is cloud-based accounting software for any internet connected device. Depending on which features you need, QuickBooks online will set you back between $15 and $50/month.

Xero logo

9. Xero

Xero is a QuickBooks alternative which many restauranteurs around the world use every day to manage their restaurant’s accounting tasks. Just like QB Online, Xero has both iOS and Android apps and can be accessed via any internet-connected device. Xero also integrates with many cloud-based restaurant point of sale systems.

Xero doesn’t have as many features as QuickBooks; for example, payroll support is limited to only 37 states and there is no job-costing feature. However, Xero also costs a lot less than QuickBooks.

Useful Features:

  • Accounts payable feature with recurring bills and purchase orders
  • Unlimited users with extensive user permissions controls
  • Double-entry accounting
  • Excellent customer service
  • Easier to use than QuickBooks (in most respects)
  • 500+ integrations

POS Integrations:

While Quickbooks is the most popular accounting software system, Xero is catching up and most major POS systems integrate with Xero as well as Quickbooks. Some of these systems include:

  • Square for Restaurants
  • Nobly POS
  • TouchBistro
  • Lightspeed
  • Vend
  • Shopify POS

The Quick & Dirty:

With pricing starting at just $9/month, online accounting app Xero is a more affordable QB alternative for restaurants that don’t need every advanced accounting feature.

10. MailChimp mailchimp logo

MailChimp is email marketing software you can use to boost the online marketing efforts of your restaurant. While most POS apps include some email features, they are usually somewhat lacking. With a fully featured email marketing program like MailChimp, you can set up automated email campaigns to build customer loyalty, advertise promotions, and grow your social media following.

MailChimp is entirely cloud-based; the company also offers a mobile app for iOS and Android devices.

Useful Features:

  • 23 basic templates and hundreds of theme templates
  • Easy list segmentation
  • Advanced email campaign reporting
  • Robust free plan includes up to 2,000 subscribers and sends up to 12,000 emails per month.

POS Integrations:

  • Revel Systems
  • Shopkeep
  • Lightspeed
  • Epos Now

The Quick & Dirty:

MailChimp has a very decent free plan and paid plans start at $25/month, scaling up depending on how large your list is (and how many features you want). This easy-to-use ESP supports both small start-ups and large corporations.

Final Thoughts

A successful restaurant business has the same basic ingredients it did 20 years ago or even 200 years ago: delicious food, happy customers, excellent service, and organized behind-the-scenes processes to keep everything running smoothly. However, the tools used to achieve restaurant success have changed with advances in technology. Everything from taking payments, to advertising, to bookkeeping, to employee management has been digitized.

One important job of restaurant management that can’t be replaced with automation is the restaurant manager herself. Being awesome at your job, I’m sure you will do a great job selecting the management apps that work for your unique restaurant business. Have fun with the selection process and make sure you utilize free trials of all of these apps so you can be sure the restaurant management software you choose works great for your needs before you commit.

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