Tuesday, March 20, 2018

4 Signs You Have What It Takes to Be Self-Employed and Leave Traditional Jobs Behind

Have you noticed more and more people quitting their jobs… and going to work for themselves? It’s not just you! The number of self-employed workers is growing, and quickly.

According to results from FreshBooks’ Second Annual Self-Employment Report, nearly 27 million Americans are anticipated to leave traditional work behind in favor of self-employment by the year 2020.

FreshBooks’s report included 2,700 profiles of self-employed individuals—not members of the gig economy. (That means no side hustles alongside full-time jobs; self-employed workers earn their primary income on independent, client-based work.)

So, why are so many people with traditional jobs turning to self-employment as the next major step in their career? Motivation for a career change and a desire for control over their careers both tied at 43%. Financial reasons ranked at 33%, with family reasons at 32%, and health concerns at 15%. One of the best stats shown in the report: 97% of currently self-employed professionals have no desire to return to work—and 70% are actively working to grow their business.

If you’re not sure you have what it takes to be self-employed, review these signs and see if you might be ready to take the jump.


1. You’re educated. And eager to learn new skills, too.

According to the research in the FreshBooks report, it’s important to learn and be learning. Self-employed individuals—regardless of age, gender, or ethnicity—are largely an educated bunch. Among them, 65% have a bachelor’s degree, while 23% have a master’s degree.

With a strong education, you’ll have a groundwork for success. And that makes sense—you learn how to listen, solve problems, maintain a sense of discipline and strategy for reaching key goals, and keep learning new skills.

But learning new skills might not always be a priority when working in a traditional job. Maybe the employer can’t afford to pay for classes or provide sufficient training. Suddenly your desire to learn has been shelved to revisit later, leaving you stuck in the same routine.

If you’re eager to learn something new, though, self-employment might be right up your alley. And when you do make the shift from traditional work to self-employment, be sure to consider how you’ll start learning those necessary new skills. Consider reaching out to a mentor for advice, enroll in classes, or take a webinar to get started. You can even apprentice—it’s not just for the Middle Ages!

→Too Long; Didn’t Read (TL;DR): Make sure you have a solid foundation of skills, and that you’re ready to take on new ones, too. Have a plan for how you’re going to learn.

2. You’re financially secure.

Money is hard for everyone—but especially if you’re a solopreneur.

Cash remains one of the most significant challenges to running a successful business. That’s in large part because it touches every part of small business—seeking funding, employing staff, finding new customers, and more.

One of the best actions to take before making the leap into self-employment is to make certain you’re financially secure.

Prep by:

  • paying down or paying off debt
  • setting a budget to better understand how much you’ll need to make in order to maintain your lifestyle
  • creating a financial nest egg as your Plan B cushion in case of an emergency

→TL;DR: Make sure you’re in good financial standing before your transition.


3. You’re ready to be in control.

Control is one of the biggest motivators for lots of people pursuing self-employment, right? After all, how can one control their career in a traditional 9 to 5 job when each day feels repetitive, and there’s no wiggle room?

The self-employed workforce values flexibility over stability. That means workers have the ability to set their own schedules and work during hours at which they’re most productive.

If you’re ready to be in control, remember that flexibility still comes with responsibility. You’ll continue to put in the hours and work long weeks, but on your own terms.

→TL;DR: You’re ready to set your own hours—but understand that the freedom comes with less stability.

4. You’re confident.

Self-employment isn’t for the faint of heart. It requires keeping the momentum going—even on those days where everything goes wrong.

Being resourceful and strategic, patient, and ready to work harder than you ever have before are non-negotiables. Above all, you need to be confident. There’ll be slow seasons, off days, and uncertainty that you never could have imagined. However, if you’re naturally confident and maintain an optimistic attitude, you will be successful.

Better than successful, you’ll be satisfied—and a member of that 97% that sees no need to return to traditional work!

→TL;DR: There’s no sugarcoating that not every day of self-employment will be fun—so get ready to weather the storm. If you can, you’ll be glad you did.

So, Are You Ready to Be Self-Employed?

These signs should be a good indicator:

  • You have a good foundation of knowledge in your industry, you’re ready to learn new skills that you’ll need as a solopreneur, and you have a plan to learn them.
  • You understand that finances won’t be as stable, so you have a good safety net—or at least have reduced your financial volatility—before jumping into self-employment.
  • You’re excited about making your own hours, knowing that you’ll also be responsible for motivating yourself.
  • You’re up for the bad times as much as the good.

If this sounds like you, it just might be time to join the ranks of solopreneurs!

The post 4 Signs You Have What It Takes to Be Self-Employed and Leave Traditional Jobs Behind appeared first on Fundera Ledger.

from Fundera Ledger https://www.fundera.com/blog/you-have-what-it-takes-to-be-self-employed

How to Write a Business Loan Request Letter That’ll Impress a Lender

If you’ve ever considered applying for a small business loan at a bank, you might have thought about how to write a business loan request letter. If you haven’t had the pleasure of getting acquainted with the concept yet, a business loan request letter is essentially a letter that goes along with your application packet to a lender.

Okay, then—what’s in this document, exactly? The business loan request letter needs to contain as much information about your business’s history and financial status as you can fit onto one page. So, think part résumé, part cover letter in that sense.

It seems impossible to take something so personal and sprawling, and then condense it for a total stranger who’s never met you. Especially if the purpose of that document is to make a decision about your trustworthiness based on words you write on one page.

We understand the feeling—but that’s why knowing how to write a business loan request letter in an effective way is important. Because this letter might be your only opportunity to personally convey to your lender why they should approve your application.

We’ll make the steps for how to write a business loan request letter as simple as possible. Here’s what lenders want to see, what this letter is for, what to include, and the format to follow for best results.


When You Need a Business Loan Request Letter

You most likely to need to know how to write a business loan request letter for two specific types of loans. They’re usually required for when you apply for a traditional bank term loan or an SBA loan funded through a traditional bank.

Each of these lenders need similar information, and we’ll get to that in a bit. But first, let’s look at a few small differences between these two business loan request letter types.

How to Write a Business Loan Request Letter for a Traditional Bank Term Loan: An Overview

Traditional financial institutions—and by that we mean banks—are more likely to lend money to businesses that appear to be growing and could possibly turn into long-term customers.

Unfortunately, the good majority of small business owners find that traditional bank loan requirements are so strict that qualifying is difficult. But if your personal credit score is excellent, this might be an option you want to explore.

Before committing to such a long-term borrowing relationship, however, your bank lender will want to learn everything they can about you and your business in order to make sure you are a safe credit risk.

That’s why during the small business loan underwriting process, the bank’s underwriter will look to your business loan request letter as a direct appeal in your own words for the funding your business needs. This is your opportunity to tell the lender why you need the loan and show evidence that you’ll be able to repay the loan.

So, take the time to paint a great picture of what you envision for your business’s future, and how you plan to help it get there with the loan you’re requesting.

How to Write a Business Loan Request Letter for an SBA Loan: An Overview

The SBA loan application process is complicated as is. Then, when you look at how to write a business loan request letter for an SBA loan, there are even more requirements here when compared to traditional bank loans.

When you write a loan request letter for an SBA loan, be prepared to share financial details about yourself and any business partners, in addition to specific information about your business’s finances and credit history.

You’ll need to give details about any suppliers of upcoming purchases if you’ll be using any portion of the loan funds for asset purchasing. Likewise, if you have other business debts, your business loan request letter should include information on the debt holders.

SBA-backed lenders will need to know how much of your own money you have invested in the business. Your business loan request letter should also clearly indicate that your business does not lend money or speculate, nor does it involve passive investments, pyramid sales, or gambling of any sort.

With respect to describing your partners and management team, be sure to elaborate on the “good character” of these individuals within your business loan request letter. Also indicate whether or not you and your leadership team have previous management or industry experience that directly applies to your current business.

→Too Long; Didn’t Read (TL;DR): You’ll need a business loan request letter for two types of applications: a traditional term loan from a bank and an SBA loan. Their requirements are mostly similar but have a few small differences.


What to Include in Your Business Loan Request Letter

Again, the business loan request letter is a tool banks use to pre-judge you and your creditworthiness, often before they ever have a conversation with you directly. That’s exactly the reason why, when you figure out how to write your business loan request letter, you get it right. It’s so important to pay attention to what you say and how you say it.

Your letter should be short—ideally just one page—but full of pertinent information about your business. Let’s walk through the basic types of information every business loan request letter should include:

How to Write About Your Basic Business Information

The first sentence should express your request for the loan and the amount you want to borrow.

Next, use a few short and concise sentences to provide a basic overview of your business. In this section, be sure to include:

  • Business name
  • Business structure (S-corporation, partnership, LLC, etc.)
  • Brief description of what your business does
  • How long you’ve been in operation
  • Current number of employees
  • Current annual revenue

Once these business basics are covered, you’ll be ready to move on to the meat of your business loan request letter—describing the purpose of the business loan you’re requesting and how you plan to recuperate the investment.

How to Write About the Purpose of the Business Loan

With the business basics covered, you’re ready to explain clearly and succinctly exactly how you plan to use your business loan funds. And, of course, why this use of funds will be a wise business investment.

Be as specific as possible, showing the lender that you‘ve carefully considered what taking on this new debt will accomplish.

Remember, your lender’s number one priority when considering any loan application is to determine the likelihood that you will repay the loan on time and in full. A lender’s goal is always to minimize their risk! As such, be sure to mention exactly how you’ll generate the necessary additional income to cover the repayment of your requested business loan.

How to Write About Evidence That You’ll Be Able to Repay the Loan

Once you describe how you plan to use the loan funds requested, you’ll get to the part in your business loan request letter where you need to lay out your repayment proof. You want to highlight specific business financials to support your claim that funding your loan will be a low-risk decision for your lender.

Use figures from your most recent balance sheet or profit and loss statement as evidence to indicate the current financial health of your business.

From there, consider highlighting specific cash flow projections to show the lender how you plan to fit repayment of the requested principal and interest into your budget.

→TL;DR: You’ll need to include basic info about your business, what you’re planning on doing with the loan, and specific evidence on how you’re planning to repay the loan. Be specific and concise.

Use This Template to Write Your Business Loan Request Letter

Now that you know exactly how to write a business loan request letter, you’re ready to input information about your own business format that will match your lender’s expectations.

To simplify this process, think about following this business loan request letter template as a guide. Of course, you’ll need to edit and adapt this template to match the specifics of your business and the loan you intend to pursue.

Applicant’s Name
Applicant’s Address
City, State, Zip Code


Lender’s Name
Lender’s Institution
Lender’s Institution Address
City, State, Zip Code

Re: Small business loan request for [AMOUNT]


The aim of this letter is to request a small business loan in the amount of [NUMBER] for the purpose of [ADD PURPOSE OF LOAN HERE]. My business, [BUSINESS NAME], is a successful and well-established company, which is part of the [TYPE] industry.

[BUSINESS NAME] began operation in [DATE] with [NUMBER] employees, and has shown consistent growth over the past [NUMBER] years. The business now employs [NUMBER] individuals.

We have an established online presence, as you can see on our website [LIST WEBSITE], Facebook, Yelp, [LIST ANY OTHER SOCIAL MEDIA]. Through these methods, as well as [LIST ANY OTHER MARKETING AVENUES], we continue to make industry contacts and cultivate new business.

Last year, our annual sales revenue was [NUMBER] with a net profit of [NUMBER]. We have maintained a consistent cash flow over the past [NUMBER] years, and have operated with an annual net profit each year since opening.


We have completed preliminary market research in [LOCATION OR TYPE OF EXPANSION], and we have seen increased demand for [PRODUCT OR SERVICE YOUR BUSINESS PROVIDES]. Therefore, we are seeking funding to grow the business by [SUMMARIZE BUSINESS GROWTH PLAN].

This business growth opportunity is immediate but will require more funding up front than our cash flow can currently accommodate. Although making the monthly repayments with interest over time will fit easily into our budget, we do not currently have access to a lump sum large enough to make the initial purchase. This loan in the amount of [NUMBER] will enable us to purchase [WHAT YOU NEED] immediately so that we can begin to generate business for loan repayment immediately as well.

Attached, please find our business plan, our most recent cash flow statement, and our annual profit and loss statement for your review. Based on these strong financial documents and our equally strong credit score of [NUMBER], we feel that [YOUR BUSINESS NAME] will be a safe credit risk for your bank.

Please take a moment to review this request letter and the accompanying financial documents. If you feel that you can help our company, we would love to hear from you.


Applicant’s Signature
Applicant’s Name Printed
List of Enclosures:

business plan, cash flow statement, and P&L statement

→TL;DR: This is a sample business loan request letter. It should help!

Business Loans That Don’t Require a Request Letter

Now that you know about how to write an impressive business loan request letter, you might find yourself wishing for a less-complex avenue for obtaining small business funding.

Fortunately, there are a number of business loan products that might work for you. And guess what? They don’t require a request letter—just a quick online business loan application.

Term Loans from Alternative Lenders

Term loans are the more traditional loan product most people are familiar with. And they’re available at places other than your local bank. Many alternative lenders in the online funding marketplace offer term loans with excellent repayment terms for small businesses. (And they’re often way easier to qualify for than bank loans.)

After approval from a lender, you’ll receive a lump sum of cash up front. Your lender will give you terms for a predetermined repayment scheduled for your loan amount, or principal, along with interest and fees at regular intervals.

With alternative lenders, most term loans have a repayment period of one to five years and are excellent choices for large expenditures. Term loans can come with either fixed or variable interest rates that are determined by several factors—size of the loan, credit history, repayment term, or purpose of the loan, just to name a few.

Small businesses and younger companies find term loans advantageous because they come with predictable payment amounts so they can be easily worked into the business’s ongoing cash flow.

When working with an online alternative lender, the application and approval process for most term loans can be completed in two to five business days.

Equipment Financing

Equipment financing is the perfect option if your funding need is for just such a purchase. Lenders can be comfortable with more risk in this type of loan. And that’s because the collateral is built right into the loan. (In short, if you default on the loan, the lender can repossess the equipment.)

The lender or vendor fronts you the cash to make the purchase, and you make the regular payments for the specified period of time. It’s usually determined based on the expected life of the equipment. With this type of financing, it is important to be sure your equipment will not be obsolete before the end of the loan.

These loans can also happen pretty quickly—in as few as a couple of days if you have everything in order!

→TL;DR: Not all small business loans to finance big purchases need loan request letters. Term loans through alternative lenders and equipment financing shouldn’t need them!

What to Know About How to Write a Business Loan Request Letter

The most important takeaway here—be precise and be concise. This is a major first impression that you might not be able to take back!

Otherwise, make sure you include:

  • Business name
  • Business structure (S-corporation, partnership, LLC, etc.)
  • Brief description of what your business does
  • How long you’ve been in operation
  • Current number of employees
  • Info on any partners, if applicable
  • Current annual revenue
  • The purpose of your loan
  • Any vendors you’ll be purchasing from if applicable
  • Evidence you’ll be able to repay the loan and principal, supported by historical financial figures and projections

And also remember that business request letters for bank loans and SBA loans are just a little different.

There are plenty of traditional term loans and other small business loan options that don’t require a business loan request letter, too—so don’t be discouraged if this sounds like a bit more than you have the energy for right now.

The post How to Write a Business Loan Request Letter That’ll Impress a Lender appeared first on Fundera Ledger.

from Fundera Ledger https://www.fundera.com/blog/business-loan-request-letter

Monday, March 19, 2018

How to Start a Small Business with No Money to Invest

Starting a business in 2018 with no money is 100 percent doable. In fact, you’ll have an easier time today than Google, Apple, Disney, Mattel and Harley Davidson had when they were started in garages decades ago. Why? Because never before has it been so cheap and easy to go from idea to startup, build... Read more

The post How to Start a Small Business with No Money to Invest appeared first on Kabbage Small Business Blog.

from Kabbage Small Business Blog https://www.kabbage.com/blog/6-ways-to-start-a-business-with-no-money

What Do I Need to Open a Business Bank Account? It’s Not a Silly Question

You’ll hit plenty of milestones when you start your own business. Some are a bit more exciting than others: picking out a logo, getting your first client, or making your first million dollars. Less exciting for a founder is figuring out what they need to open a business bank account.

It’s far from the most glamorous task that business owners need to tackle. But opening a business bank account is essential so you can hit those other bragworthy milestones. (Or, at minimum, to qualify for a small business loan when the time comes.)

And, maybe surprisingly, the requirements to open a business bank account aren’t super straightforward. So let’s see how to get rolling on opening a business bank account, which really is a big deal! Even if doesn’t seem that momentous, it is.

First, Why Do You Need a Business Bank Account at All?

You’ve heard the saying, “Keep your personal life and your business life separate” before, right? It’s good advice—the two don’t mix all that well.

Well, as far as your finances are concerned, it’s a great idea. And in basically every case, it’s mandatory to keep them separated. (Sole proprietorships are the one exception.)

An example: If you’re running an LLC, without separating out your financials, you’ll lose all of that “limited liability” you would have as an individual in case your business runs into any trouble. No separate business account, no liability protection.

There are other reasons it’s good practice to open a separate business bank account, too. A business checking account makes you look more professional in front of clients. You’ll get custom checks with your business’s name on them, a dedicated company debit card, and you’ll also make your accountant’s life so much easier for tax time.

The benefits you get when you open a business banking account far outweigh the headaches—get it over with early, and you’ll be happy you did!


And, Before You Open a Business Bank Account, Decide On Checking vs. Savings

Now that you know the benefits of opening a business bank account, it’s time to decide between a business checking account or a business savings account.

Think about how you use your own personal accounts. You use checking for day-to-day expenses, and to accept payments from friends and others. You use savings to store your leftover cash, and accrue a little interest on money you don’t necessarily need to access quickly.

Business bank accounts work the same way. It’s likely you’ll need a business checking account first, which’ll allow you to pay for things, collect invoices, and manage your cash flow. The basics!

Then, once you’re established and have more money in your checking account than you conceivably need to access within a month, consider adding on a business savings account to build interest and squirrel away any surplus money you’ve got. This is a place to stash away money for the long-term, getting a bit of interest from the bank all the while.

→TL;DR: It’s basically mandatory to separate your personal and business finances. Determine whether you need to pay for things and get paid (checking) or squirrel away money (savings) before you go forward.

What You Need to Open a Business Bank Account: An Overview

Whether you’re looking to open a business checking or business savings account, all banks will ask you for certain kinds of documentation about the business and its owners.

Some of these documents may vary depending on what state you live in (or the state in which you established your business). And depending on what kind of company you’ve set up, some of these documents might change. Clear as mud, right?

Here’s a basic overview of what you’ll need to open a business bank account for some of the most common kinds of business entities, in the most common scenarios:

Sole proprietorship/general partnership:

  • Social Security number (sole proprietorship) or Business Tax Identification Number (EIN) (general partnership)
  • Business license with the name of the business and the owner’s name(s)
  • Business name filing document

General partnership/limited partnership/limited liability partnership:

  • EIN
  • Partnership agreement with the name of the business and its partners
  • Organizing document filed with the state or origin
  • Certificate of assumed name
  • Business license

Limited liability company:

  • Social Security number or EIN
  • Articles of organization
  • Certificate of organization
  • Organizing document filed with a state


  • Social Security number or EIN
  • Articles of organization
  • Certificate of organization
  • Organizing document filed with a state
  • Certificate of assumed name
  • Balance sheet

→TL;DR: To open a business bank account, you’ll need general paperwork, like your EIN and other operating documentation. You’ll want to ask your specific bank what you need, though, since requirements vary state to state and account to account.


How to Prepare What You Need to Open a Business Bank Account

Now that you’ve gotten a sample of all the paperwork needed to open a business bank account, you might see something on that list you don’t have—or you’re at least curious about.

Here’s more on each, including how you go about getting it:

Business Tax Identification Number/Employer Identification Number

Applying for an EIN for your business from the IRS is perhaps one of the easiest steps in the process. (Surprising, but true.) It lets your business have a tax presence independent of your personal Social Security number, which can come in handy (or, depending on the kind of company, is mandatory) for filing taxes.

To obtain an EIN, you must have a valid Social Security number, and be filing on behalf of a company located in the United States. If that’s in order, you can create an EIN online in about a half hour.

Business License

A business license is exactly what you’d expect it to be—a license from a state body that allows you to conduct business in that state. Each state’s processes for getting a business license differs a bit, so it’s best to see what your state requires specifically.

Business Name Filing Document/Certificate of Assumed Name

A business needs a name, even if it’s your own name. Whether or not you’re looking to go with something creative or straightforward, you’ll need to file a business name filing document and have it registered with the government in order to make things legit.

Partnership Agreement

A partnership agreement, also called a founders agreement, is a pretty simple one to prepare depending on your needs. All it needs to do is provide an agreement between company founders on key issues the company will face, and how it will conduct business. Just make sure you have one at the ready in case your bank requires one in order to open a business bank account.

Organizing Documents (Articles of Organization, Certificate of Organization)

The requirements for organizing documents vary a bit by state, but at their core, they spell out a few crucial components of your company: its name, address, members, registered agent (the person who handles a company’s paperwork), management structure (who will be in charge of running the company), and the activities it will engage in (what kind of business it will conduct). A certificate of organization is merely a state’s formal recognition of these documents being on file.

→TL;DR: Even if you don’t have one of documents required to open a business bank account, you can prepare them all. Some take more work than others, and some are mandated federally while others are by state.


Now, Open a Business Bank Account!

Okay, if you’ve made it this far, that means you’ve won the boss-level battle of opening a business bank account. Everything else moves a lot more smoothly from here—at least with regard to getting an account opened.

In fact, choosing the right business bank account for your company is pretty straightforward if you know where to begin.

Chase is a good place to start, since they offer lots of checking options for different types of small businesses. Plus, for a limited time, you can claim an extra $200 bonus if you open a new Chase checking account and do these three simple things:

  1. Deposit $1,000 of new money within 10 business days of opening the account.
  2. Maintain this balance during your first 60 days with the account.
  3. Perform five qualifying transactions—debit card purchases, Chase QuickDepositSM, ACH (credits), and wires (credits and debits)—within your first 60 days with the account.

Think of it as a nod for having all of that paperwork together.

Chase Total Checking

Who it’s right for: New businesses that are ready to grow while easily managing their cash flow.


  • Low service fees ($12 for paperless billing, $15 for paper billing per month) that are waived if you maintain a $1,500 daily balance
  • 100 free transactions per month
  • Free, unlimited non-wire electronic deposits
  • Eligible for extra $200 bonus

Chase Performance Checking

Who it’s right for: Bigger companies that need the essentials.


  • Low service fees ($30 per month) that are waived with a daily balance of $35,000
  • 250 free transactions per month
  • Monthly deposits of up to $20,000 in cash are free
  • Eligible for extra $200 bonus

Chase Platinum Checking

Who it’s right for: Businesses that are growing at full-tilt and need a premium experience


  • Tons of free transactions (500 non-electronic deposits and withdrawals per month)
  • $25,000 worth of free cash deposits per month
  • Free incoming wire transfers (and four free outgoing wire transfers)
  • Eligible for extra $200 bonus

The Bottom Line on What You Need to Open a Business Bank Account

As tricky as it might seem to open a business bank account for your company, it’s the kind of pain that you really only have to endure once.

If you take away anything, make sure you:

  • Have all of your state and federal paperwork done and dusted
  • Fulfill all of your state’s registration requirements
  • Know where you are in company’s financial growth, like whether you need the liquidity of a checking account versus the interest rate of a savings account
  • Right-size your company’s needs: no-frills checking with minimal fees or bells-and-whistles checking that comes with tons of features but requires a high daily balance?

The paperwork required to get your company set up with a bank account isn’t minimal, no question, but most of it will have already been done when you set up your business. And the other documents that haven’t been filed yet will still come in handy later on—whether it be at tax time or when your business grows.

Once this major hurdle is out of the way, you’ll be free to get cracking on the next big challenge: filling your business bank account with cash.

The post What Do I Need to Open a Business Bank Account? It’s Not a Silly Question appeared first on Fundera Ledger.

from Fundera Ledger https://www.fundera.com/blog/what-do-i-need-to-open-a-business-bank-account

What’s the Usual Repayment Period for Long-Term Business Loans?

When most people think about small business loans, they’re generally thinking about  long-term business loans. They’re classic and traditional—like the power suit of the lending world, if you will. So let’s talk about the usual repayment period for long-term business loans to see if they’ll fit your business as well as your own power suit fits you.

Long-term business loans are so desirable because, true to their name, they give business owners a longer time to repay their debt, with better terms, than other types of business loans. We mean decades longer, in some cases.

But even if your business is able to score a long-term small business loan, that 10-plus year repayment period might not apply to your loan. So, what is the usual repayment period for long-term business loans?

Well, it depends. The short answer is anywhere from one to 25 years. But since it’s never that simple, repayment terms vary according to a few factors, including the lender you work with, the type of loan you receive, your intended use of funds, and what your business qualifies for.

But before we get into the usual repayment period for long-term business loans, let’s nail down some essential things to know about long-term loans for small businesses.


Long-Term Business Loans: A Quick Refresher

Let’s make sure we’re all talking about the same thing. The short answer is that a long-term loan is any loan with a repayment period of a year or longer.

Long-term loans—sometimes just called “term loans”—are the most common type of small business loans. They’re generally the first thing that comes to mind when you think about small business financing.

When you’re accepted for a long-term business loan, your lender will deposit a lump sum of cash directly into your business bank account. By then, you’ll have already established a repayment period with your lender for your business term loan that’s specific to you (more on that in a bit). You’ll need to repay the loan according to that timeline, generally in monthly or bimonthly installments.  

What’s a Small Business Term Loan Best Used For?

Term loans are great because of their versatility. Since the whole point of a term loan is to help you finance something for your business—and generally something big—they’re definitely a good fit you’re making a large purchase for your business. Think inventory, refinancing other debts, payroll—you name it.

Long-term business loans can also be a resource for startup costs and working capital. (There might be some restrictions on how you use that money, however, depending on the lender you’re working with—but, generally, not many.)

How Much Money Can You Borrow with a Small Business Term Loan?

And since we’re talking capital, let’s talk how much money can you borrow with a small business term loan. Well, how much you can borrow will, of course, always depend on the kind of credentials you bring to the table as a borrower.

That said, lenders do cap off long-term business loans at certain dollar amounts:

  • SBA loans: $5 million
  • Long-term business loans through alternative lenders: $500,000
  • Bank loans from local or community banks and credit unions: ~$500,000
  • Bank loans from major commercial institutions: This one varies from bank to bank—but the most creditworthy have borrowing potential into the millions.

These big numbers are offered to the most qualified borrowers.

Still, though, you can see why long-term business loans are so sought after. But (you knew there’d probably be a but, right?) long-term loans are among the hardest to qualify for, and often require collateral to secure.

Who Qualifies for Long-Term Business Loans, Then?

Business owners with very strong borrowing profiles. Because term loans include favorable terms like lower interest rates, more access to capital, less restriction on how to use the money, and longer repayment periods, too, lenders can be much pickier with whom they lend out to.

General qualifications for small business term loans often look like:

  • 600+ credit score
  • $90,000+ annual revenue
  • At least a year in business

See, strong. And if you’re considering an SBA loan, expect to come in with an even stronger profile if you want to be a good contender:

  • 620+ credit score
  • $100,000+ annual revenue
  • At least two years in business

Although none of these are hard and fast rules, they’re a good gauge for who often gets funded for these competitive small business term loans.

Too Long; Didn’t Read (TL;DR): Long-term small business loans have a repayment period of 1+ years. Although there’s a lot of money available here for the most qualified borrowers, these traditional business loans are tricky to qualify for.

What’s the Usual Repayment Period for Long-Term Small Business Loans?

The easy answer is one to five years on most long-term small business loans, and up to 25 years on SBA loans. The more specific answer is, as you’d expect, a lot more nuanced.

How Lenders Determine the Repayment Period for Small Business Term Loans

As you might expect, exact repayment periods for long-term loans vary from borrower to borrower—and loan to loan.

Your lender will determine the length of your repayment period based as they assess your risk as a borrower. The institutions lending you their money need to feel confident that you’re able to repay your debt on time. This is especially true of long-term loans, since capital amounts tend to be higher with these loans than with other types of business loans.

And, from the lender’s perspective, the longer the repayment period, the greater the risk to the lender—and they’re going to need to calculate that risk.

That means the length of your repayment period really depends on the kind of financial credentials you bring to the table as a business owner, as well as the kind of business financial history you can show. As with any loan, less risk = less expensive loan.

Things that they’ll evaluate during the small business loan underwriting process to help determine the repayment period for your long-term loan:

  • Credit score
  • Outstanding debt
  • Revenue
  • Tax returns


What’s the Usual Repayment Structure for Long-Term Business Loans?

Along with your repayment period, your lender will also determine your repayment structure. Usually, you can expect to repay a long-term business loan monthly or bimonthly.

And that’s one of the characteristics that makes these loans more desirable. With a short-term loan, on the other hand, you might be facing a daily repayment schedule over a period of less than a year. Repayment periods for short-term loans can be as short as three months.

→TL;DR: The usual repayment period of a long-term business loan is a year to about five years, and up to 25 years for an SBA loan—but the exact repayment period will depend on your lending institution and your financial profile as a borrower.

3 Kinds of Small Business Bank Loans and Their Usual Repayment Periods

These three types of long-term business loans could be options for your small business to pursue. Read up about them, and see the usual repayment periods you can expect, too.  

1. Business Bank Loans

Although banks offer more than one type of loan product, most business bank loans are generally long-term loans. Traditional institutions like commercial banks, local banks, and credit unions offer some of the best long-term loan deals you’ll find. Meaning the largest capital amounts at the lowest rates.

That said, banks only want to work with the top of the top of the eligible borrowers. So, to be straight, the vast majority of business owners won’t be considered for a business bank loan, or will be denied if they apply.

Think you might be eligible? Your bank will generally to want to see at least three years of time in business, profitability, and tip-top credit. Plus, they’ll need a good reason for why you need a loan in the first place—like a new competitor moving onto your turf, or losing an important customer.

But if you think you’re still a candidate, go for it! The only way for you to find out if you do qualify for a bank loan is to visit your bank in person.

The usual repayment period for a long-term business bank loan is…

Again, it’s contingent on the lender. In this case, the bank. On top of that, each bank might also offer different loan programs, and repayment periods, for different fund uses.

Again, the only way to find out if you’re eligible for a bank loan (and what kind of terms a bank is offering, too) is to visit your bank branch directly. Generally, however, repayment periods tend to be between about five to seven years of monthly payments for a working capital loan.


2. Term Loans

It’s absolutely worth trying to score a long-term business loan from a bank. But if you’re among the vast majority of small business owners who can’t go the traditional route, a term loan from an alternative lender is a great option.

These days, the majority of small businesses struggle to fund their ventures through traditional routes. That’s one of the many reasons that the emergence of new online lending platforms have been so great for small business.

Along with the ability to lend to a wider group of people, alternative lenders can be more flexible with their qualifications than banks. Plus, you can often receive your funds pretty quickly.

The trade-off, though, is that a loan from an alternative lender will likely come with a steeper interest rate than it would from a bank loan. But the access to capital can end up being priceless if it’s the difference between being able to fund your business and not.

The usual repayment period for a long-term loan for a term loan through an alternative lender is…

If you work with an alternative lender, you can generally expect a repayment period ranging from one to five years.

And if you’ve read this far, you’ll probably be able to predict what’s next. The exact length of your repayment period depends upon the lender you’re working with, your business’s financial profile, and the terms you’re offered by your lender during underwriting.

These small business loans, as well, will usually be repaid in fixed monthly or bimonthly payments.

3. SBA Loans

For small business loans, SBA loans are something of the gold standard.

A common misconception about SBA loans is that the Small Business Administration itself provides the capital. These loans are actually issued by banks that participate in the SBA loan program. If a bank successfully issues an SBA loan, then the agency uses federal money to guarantee that a portion of that loan goes to the bank. (In simpler terms, the SBA backs up a portion of the bank’s small business loan, meaning less risk for lenders—and more capital availability for you.)

That all means that your SBA loan application will be sent directly to eligible banks, not to the government.

These loans offer the longest repayment periods available—up to 25 years. Plus, interest rates on SBA loans can start at around 5%, which are among the most reasonable rates you’ll find. The repayment period on an SBA loan depends on which of the three SBA loan programs you participate in.

The usual repayment period on an SBA loan is…

The SBA offers a few loan programs, and the repayment period varies among those programs, plus what you’ll be using your funds for. The three most popular SBA loan programs are the SBA 7(a) loan, the SBA CDC/504 loan, and the SBA microloan.

SBA 7(a) loan

If you’re looking for basic working capital to help launch your business (or to refinance existing debt), the SBA 7(a) loan is probably right for you. This is by far the most popular SBA loan program.

Repayment terms for this type of loan depend on use of funding. Generally, you’re looking at the following maturity terms: 25 years for real estate, 10 years for machinery, and up to 7 years for working capital.

SBA CDC/504 loan

The CDC/504 loan can be used to buy major assets in order to expand or improve your business, like purchasing equipment, acquiring commercial real estate, and building or renovating existing facilities.

Repayment terms also depend on planned use of funding. If you’ll be purchasing equipment, the loan term is 10 years. If you’re using your loan to finance land and buildings projects (such as landscaping and facility renovations), then the loan term is 20 years.

SBA Microloan

The SBA’s microloan program is exactly what it sounds like—a smaller loan amount, with a shorter repayment period. Microloans can be used toward costs associated with starting up or expanding businesses, such as stocking up on supplies, buying equipment, or working capital.

True to its name, the repayment period for an SBA microloan is up to six years, the shortest of all the SBA loan programs.

→TL;DR: Your usual repayment period for a long-term small business loan will depend on whether you pursue a loan through a bank (which most can’t), an alternative lender (many more options), or the SBA (hard, but attainable).

Another Long-Term Business Loan Option: Business Lines of Credit

Like we said before, when you think of “small business loan,” you probably think of a traditional term loan.

But if you haven’t done a lot of digging into different types of small business loan options, or it doesn’t look like you’ll be able to qualify for a long-term business loan, you might want to consider opening a business line of credit. Especially if you’re looking to a loan to supplement your cash flow.

When you open a line of credit, the lender gives you a specific amount of funds to draw against, which you can access whenever you need. (Like a credit card, but generally with lower interest.) Unlike a term loan, you only need to pay back—and pay interest against—what you use.

Repayment periods on business lines of credit can be as short as six months, but they might also be as long as four years. The other nice thing here is that lenders also often offer monthly or bimonthly repayment schedules like with a long-term business loan, even though the lending term is more like a short-term loan.

And, if you repay your line of credit balance in full and on time, it will re-up—that’s called a “revolving” line of credit. This is how business lines of credit can help you build your credit, too. Improving your credit score can help you work toward a long-term loan down the line.

→TL;DR: If your business doesn’t qualify for a long-term loan, consider opening a business line of credit. They can help build your credit for a term loan, and supplement your cash flow in an affordable way in the interim.

Your Takeaways on the Usual Repayment Periods for a Long-Term Business Loan

There’s no magic answer for the usual repayment period for a long-term business loan—and the range can be from one to 25 years. That said, here’s what to know generally:

Your repayment period will be determined according to:

  • Your lender’s terms and guidelines
  • The type of institution that’s furnishing your loan
  • The loan program you’re participating in, if applicable
  • Intended use of funds
  • Your business’s overall financial profile

And, getting more specific, here’s a usual repayment period breakdown by type:

  • Bank loan: 5-7 years
  • SBA loan: 6-25 years
  • Term loan through alternative lender: 1-5 years

Remember that long-term loans are super desirable. But they can also be pretty tough to qualify for—and emphasis on tough if you’re looking to a bank—so make sure to keep your options open. Explore both alternative lenders and alternative types of loans and you might be able to find ways to secure capital you didn’t expect.

The post What’s the Usual Repayment Period for Long-Term Business Loans? appeared first on Fundera Ledger.

from Fundera Ledger https://www.fundera.com/blog/the-usual-repayment-period-for-long-term-business-loans-is

Friday, March 16, 2018

21 Modern Lead Generation Strategies to Grow Your Business (and Not Waste Money)

One size doesn’t fit all for most things small business, and that’s the case with lead generation strategies, too. Even knowing that, though, many small business owners still struggle to determine which lead generation strategies work for their company, industry, or for business size. But why?

Well, paralysis of choice, for one. In this era of digital marketing, there are just so many lead generation tactics. Some are impactful for sure—but many are gimmicky (or, worse yet, expensive and unproductive).

The truth is that successful lead generation strategies really differ for each business—and to figure out what works, you’ll have to know both your own business inside and out, plus what you’re really hoping to accomplish. Some industries are just better suited for social media lead generation tactics, while others still rely on word of mouth to generate new business.


The point is, if you don’t understand what lead generation strategies are the right fit for your business, you risk trying to make the wrong ones fit. And finding out that you’ve sunk time and money into lead generation tactics that don’t yield results is painful—not to mention a hit to the bottom line.

Take a look through this guide to modern lead generation strategies to help you find the right fit for you business—whether you run a brick-and-mortar boutique or a digital-only enterprise:

Modern Takes on Traditional Lead Generation Tactics

1. Build an incentive-based referral system.

Word-of-mouth advertising is still as important as it’s ever been—even if the ways in which people spread the good word about your company has changed with tech. If anything, referral systems have become even more useful among modern lead generation strategies, since they’re easier than ever to quantify and track.

The best possible thing you can do to harness the power of referrals? Get granular with your details.

Sell a product or service online? Create customized referral codes for individual clients and prospects—a new client gets a discount for their first purchase, and your loyal client will get a referral discount, too. This works particularly well for online retailers.

This way, you’ll be able to know exactly who is sending business your way, and which leads are converting to clients. Smart!

2. Broadcast advertising to your niche audience.

Don’t worry—we’re not talking about buying an ad slot on your neighborhood easy listening radio station. However, podcasts have stolen lots of listeners from the AM and FM dials.

And content creators still need advertisers, so you can still turn listeners into leads, but with even greater potential. That’s because with podcasts, as listeners self-elect downloads, they signal what they’re interested in. Which means you can identify where your audience is captive.

No matter how niche the industry, there’s likely to be a podcast out there that tons of potential clients are enjoying regularly. Own a homebrewing shop? There’s a podcast (actually, lots!) for that. Offering custom, injection-molded parts for airplane engines? You’ll find an audience out there for that, too.

Best of all, you’ll take comfort in knowing that you’re not taking the shotgun approach to advertising that comes from radio spots, where a good part of your audience might not be interested in your product at all.


3. Take a new approach for direct mail.

It’s easy to write off the legitimacy of direct mail in an article about modern lead generation strategies. We know.

But direct mail lead generation tactics in 2018 aren’t postcards addressed TO CURRENT RESIDENT offering an unsolicited coupon for free sock darning or bespoke roofing shingles. Direct mail doesn’t have to be synonymous with junk mail, particularly if you know how to do it the right way, like:

  • Mailing out compelling flyers with valuable offers
  • Using data-driven referral codes
  • Hitting smaller, more tuned-in audiences

By being selective with your direct mail efforts, you can invest more in the physical item you’re sending out. Plus, you can offer better discounts, coupons, or other enticements to get new leads to take the next step. Think of direct mail as your first foray into getting someone to go to your website or call you, rather than your final step in getting new clients.

4. Create lead-swapping relationships.

Sharing leads with related (but not competing!) businesses is another one of those lead generation tactics that’s been around for ages, but is still super useful when modernized.

If you’re on friendly terms with a company that attracts the same clientele as yours, consider swapping leads from time to time.

But to make this tactic work now, you have to digitize these swaps to make the most of them. Use a great small business CRM to keep track of each individual lead and what kind of returns you’re getting from the companies that are providing you with leads. Taking a “big data” approach to beneficiary relationships will help you go far beyond having a big pile of telephone numbers to cold-call.

5. Rethink deals and discounts.

Of course you’ve considered—if not held—sales in order to incentivize new customers through your door. But with so many different deals and discount sites, it might be worth considering seeing if your product is a fit for any national or local opportunities.

If you’re a little hesitant, you could also look into partnering up in a package with other complementary businesses that are more familiar with the deals territory.

Since these sites are all about reaching new customers, they’ll do the legwork of finding the eyes for you to get your product or service in front of new customers. And with a budget and reach you likely don’t have.

A heads up that margins on deals sites are pretty thin, so this isn’t a permanent solution. But you certainly can generate new leads on them who can hopefully convert into loyal customers over time.

Modern Lead Generation Strategies for Improving Your Digital Footprint

6. Build—and maintain—a modern website.

You can’t afford to have a lousy business website.

Gone are the days where only digitally focused businesses, media companies, and tech organizations needed to impress with beautiful websites. Whether you’re building apps or building bagpipes, you need a website that marries elegant, smart design with speed and efficiency.

A website that gives visitors the clear who, what, where, and why behind your company is your best asset. A good website is like your digital business card. And you don’t need to know a line of code! Here are some ideas to easily overhaul your small business website.

7. Learn search engine optimization.

Interesting: Only 10% of search users go past the first page of search results when looking for information. That makes it difficult for any business to get their website in front of potential leads, no matter how well designed or informative it is.

That’s why great search engine optimization (SEO) is an awesome lead generation tactic. Basically, it puts your website in the best position to get on that first page of results.

SEO might seem like a mystery to all but the most digitally savvy business owners, but the core tenets of search engine visibility actually boil down to three fairly easy-to-grasp ideas:

  • Provide good information
  • Give answers to frequently asked questions
  • Make sure that your writing is clear and concise

Here’s a basic crash course on understanding SEO strategy.

Learning SEO best practices yourself is free—but if your business is in a particularly competitive market, investing in a consultation from SEO experts could provide extra value to your lead generation tactics. But for most, investing in good content and digital-savvy writers should be enough to provide you with a clear advantage.

Lead Generation Strategies in Content Marketing

8. Try content-based lead generation.

As long as we’re talking about SEO, let’s talk about content, too. A content-based lead generation strategy—as long as that content is well optimized, that is—allows you to increase your presence in search. The more high-quality content you produce, the more you’re rewarded by search engines.

Search engines give preference to websites that help answer questions quickly and simply. For instance, if you create a blog post that provides the who, what, where, and why of something your company is an expert on, you’ll reap rewards by ranking well in search.

Plus, as search becomes increasingly local, you’ll benefit from lead generation tactics that tie your content into your physical location. Then, you might be on your way to dominating local search.


9. Look beyond organic social-media lead generation tactics.

The days of free social media publicity are all but over. That’s unfortunate, sure, but the good news is that small businesses can invest in paid social media advertising. It’s not that expensive—and it generally goes further than organic posts to a handful of followers.

Most social media networks offer robust tools that can help enhance any lead generation strategy. Platforms including LinkedIn and Facebook offer one-click email submission. That allows users to submit their information at the click of a button, and gives businesses a simple way to collect info on potential leads with minimal hassle.

Other channels, like Instagram and Twitter, let companies purchase in-stream ads. These appear just like a regular post from a friend or fan page, but with the added bonus of pointing directly to a page or signup that you pick.

Best of all, these advertisements usually cost pennies on the dollar if you build your audiences to be the right size and specificity. You can get there with a little practice!

10. Begin a business newsletter.

Email marketing lead generation is similar to content and social media lead generation strategies.

Think of it as a content strategy smushed together with social lead capture techniques. If it works out, you get a lead generation tactic that delivers a captive audience with a stream of updates from your company or industry. They get updates right in their inbox, and you’re not fighting for attention in a sea of social media updates!

To make the most of newsletter lead generation strategies, it’s important to provide compelling reasons for people to sign up. The promise of exclusive sales, experiences, or knowledge are great draws. But make sure you keep those newsletters coming—if you can, the rewards of targeting a captive audience can lead directly to the acquisition of highly valuable leads.

11. Create white papers for download.

Are you an expert in your subject area? Then your knowledge is really valuable—so capitalize! You can offer free white paper downloads featuring your expertise (and, of course, your small business) to generate leads.

White papers let potential leads get specialized knowledge on-demand in exchange for their contact info. So, it’s a really beneficial exchange for everyone.

Best of all, white papers also serve a dual purpose of acting as an informative, additive sales pitch that extends beyond industry jargon and advertising copy. Offering white paper downloads in exchange for contact information makes prospective leads comfortable exchanging their details in order to receive something of value. That makes the transaction more hospitable—and who knows, you might even see your white paper passed around the industry.

12. And create a downloadable ebook, too.

Some topics demand a little more depth than white papers—and that’s where ebooks come in.

With a high-quality, downloadable ebook, you can show off your company’s subject-matter expertise and acquire contact information in exchange for downloads. Ebooks help establish a company’s voice within its industry while also fostering goodwill with potential leads. Plus, they can end up being shared among peers. That’ll expand your brand name and reputation far beyond your own on-site marketing efforts.

13. Provide an assessment or report.

Another email-for-knowledge exchange is a five-minute lead generation questionnaire. If your business provides a professional service, you can set up a quick quiz, and then provide feedback or tips based on a respondent’s answers.

This is great for a few reasons: First, it’s hard for many decision-makers in an organization to resist the temptation to get fast insights or assessment. But also, this lead generation technique provides potential clients with a first impression of your company’s work.

Best of all, you get to learn quite a bit about the respondent in the process. These surveys don’t need to be overly customized to deliver results, either. A simple questionnaire can lead to the creation of several pre-packaged results that offer just enough insight to be used repeatedly while also serving as a teaser of your company’s broader services.


Experiential Lead Generation Strategies Through Events and Seminars

14. Hold topic-driven seminars.

Although more expensive and time-consuming, experiential lead generation tactics can really build deep, meaningful relationships with potential customers.

One way to do this is to hold a seminar on the field that your business or service specializes in. You’ll be able to appeal directly to potential clients and customers by emailing them with something far more valuable than a cold sales pitch.

Not only can attendees learn something from you, but they can also network with each other, your own employees, and other existing loyal customers!

15. Throw a happy hour.

When was the last time you turned down a happy hour invitation—especially on someone else’s dime?

Think about throwing an intimate happy hour with potential clients or vendors. When people can casually connect with colleagues and friends, you can spotlight your offerings while sparing everyone in attendance with the hard sales pitch.

Even if you work from home or don’t have an office space to welcome tons of guests, you can always scope out local haunts for opportunities to rent out full or partial space. Local breweries are great for these kinds of events, and will sometimes offer discounts in exchange for the guarantee of a group.

16. Create a conference add-on event.

Every big industry conference has lots of side gatherings that occur alongside the main event. And there’s good reason for it: Rarely can you ever get that many potential clients in one place at one time.

Plus, people are ready to make the most of their attendance and usually need to report back to their higher-ups about just how much work they did in order to validate the cost of attendance. And it’s always really nice to get out of a big convention center!

Creating a side event that piggybacks on a larger conference doesn’t require much more than advanced preparation, an interesting angle, and enough money to set up space at a nearby location.

Do plan carefully, though, as your potential audience will be strapped for time, evaluating other similar offers from rival companies, and might flake despite RSVPing. So, be prepared for less turnout than your roster might suggest.

Interactive Lead Generation Strategies

17. Encourage online reviews.

Stepping out of your own business-owner shoes for a sec, what do you do when you’re considering trying something for the first time? A restaurant, a hotel, even a book? Reading reviews, most likely.

And 85% of respondents to a 2017 survey are with you, suggesting that they trust online reviews as much as a personal recommendation. Plus, 68% were willing to write a review when asked to.

This second statistic is where you can really capitalize. If you aren’t already asking your happiest clients to review your business on Google, Facebook, Yelp, TrustPilot, Better Business Bureau, and more, you’re not maximizing the cultural capital of your best relationships.

Encouraging these key customers to talk about their experience with your business (without suggesting what you want them to say!) is a great way to boost your online reputation, which can attract new clients. You can simply ask, or motivate them with incentives like discounts.

18. Add a live chat feature.

In a recent study, 44% of respondents viewed a website’s realtime chat function as one of the most important features of an ecommerce page. Better yet, 63% said they were more likely to return to a site that had a live chat function, and 62% were more likely to be a repeat customer.

And that means what for you? Well, live chat can be a great lead generation tactic to pique interest from new customers, and encourage repeat business by being accessible in real-time.

Live chat functions allow site visitors to reach out to you directly without having to pick up a phone or write an email. New customers benefit from being able to ask questions whenever they want, and then you can reach out directly to answer questions and help close new sales. And in this case, a little touch—such as a “Chat Now!” button on a business website—can go a long way toward establishing relationships with new customers and leads.


19. Host an expert chat.

Whether through video on Facebook Live or Instagram, or even a live-tweeting session on Twitter, show off your authority in your space. Choose an expert to represent your company, whether it’s you as the owner, one of your employees, or a guest. Then, host a live session to teach a certain tip or skill, or answer a question that you know there’s a need for.

Hopefully, you’ll be able to get some social media traction with sharing (ask out some friends, family, and employees to help get the ball rolling), which will get your session out to new audiences.

And if you’re doing a video session, don’t forget—good lighting. And. Speak. Slowly.

20. Answer questions.

It’s a big internet out there—and lots of people are looking for answers.

Dedicate some time to answering questions on a site like Quora, where you can share your knowledge as a subject-matter expert in your business field. Not only can you proactively expose your brand to people you never would have otherwise, but you’ll do it in a tone you want to, providing the exact service that a potential customer is looking for.

Plus, on platforms like Quora, it’s easy to gauge customer intent—something that’s much more difficult on other social media networks.

21. Lean on influencers.

Depending on your business, you might also want to consider establishing relationships with well-known people in the industry. Otherwise known as “influencers.”

They can help you bring attention to your company as a trusted third party’s voice. Influencer marketing is one of the largest markets within digital advertising. And 67% of respondents to one recent survey said that influencer marketing campaigns helped them reach more specific, targeted audiences.

Working with influencers can be as simple as sending products and services to industry thought leaders with social media presences. Some may look for payment in order to promote your company, so be prepared to know what it is you’re looking to accomplish—and how much money you’re willing to spend—before you get started.

Final Thoughts on New Lead Generation Strategies

The bottom line on modern lead generation strategies?

  • One size doesn’t fit all, so if at first you don’t succeed, try something else.
  • Old strategies still work—but with a new twist.
  • Expect to spend at least a little cash, but new lead generation tactics don’t have to break the bank.
  • Get creative, because this is just the start!

See a great idea we’re missing? Let us know.

The post 21 Modern Lead Generation Strategies to Grow Your Business (and Not Waste Money) appeared first on Fundera Ledger.

from Fundera Ledger https://www.fundera.com/blog/lead-generation-strategies