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The Pros and Cons of SBA Disaster Loans, Explained

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The Pros and Cons of SBA Disaster Loans

A disaster of any kind can cause losses that severely impact any business. COVID has proved that even big companies are susceptible, let alone smaller or independent ones. The Small Business Administrator provide SBA disaster loans for those hit by physical damage, closure and evacuation.

If you own a small business in an area susceptible to disasters, and even if you don’t, you may have considered one of these loans. In this article, we will explain the pros and cons to help you decide if it is right for you and your business.

Pros of SBA Disaster Loans

In this section, we strive to give you all the advantages of SBA disaster loans and explain each benefit. We hope that this will help you make an informed decision.

Lower Interest Rates and Lenient Repayment Periods

Interest rates on disaster loans do not often exceed 4%, so when it comes time to pay the money back you won’t be blindsided by the amount. Depending on how much you have loaned, your repayment period can extend up to 30 years. With the stress behind you needing the loan, the low-interest rate and ample time to pay back the amount should help ease concerns.

High Loan Amounts

It goes without saying that disasters can be incredibly costly events. Before you know it your repair expenses have climbed exponentially. So the fact the SBA disaster loans have a maximum loan amount of $2 million is incredibly important to note. Whilst you may not require that maximum amount, the fact it’s so high means you know you can get what you need to be stable.

No Additional Hidden Fees

The process is very upfront. Bar potential collateral, which will be covered later, there is nothing additional on top of the interest rate stated at the beginning of the process. There are no hidden fees that may be found going through other loaning avenues in such a situation.

No Business, No Problem

A fact that may surprise you is that you don’t need a business to qualify for an SBA disaster loan. If you are a renter or homeowner living in an Official Disaster Zone Area then you are eligible for a loan. This is vital information to pass on to others you know who have also been affected by a catastrophe, that they can also get help.

Cons of SBA Disaster Loans

So you can make an informed decision on SBA disaster loans, we will also explain the cons. These cons will not affect everyone but are here for those it may do.

Collateral on Loans Over $20,000

If your SBA loan is over $20,000 you will have to add collateral to complete the process. This will be an asset that the lending party can use due to the substantial risk of the disaster loan. Even though this is something to consider in your decision, it shouldn’t be the main worry.

SBA disaster loans are intended to be accessible to those who need them. So rather than something to hold you hostage with it is instead used as insurance.

Lots of Paperwork

Whilst it is a genuine fix to your money problems, an SBA disaster loan requires a lot of paperwork. This means you won’t get your funds instantly which, depending on your situation, can be an issue. However, if time isn’t an immediate concern, this won’t be a problem for you.

Strict Qualification

SBA disaster loan requirements, compared to other business loans, are fairly strict. If you are not located in a designated disaster area, you may not be eligible for the loan. Certain SBA disaster loans are dependant on whether you’ve sourced financing from elsewhere, also making you ineligible.

There is a requirement for tax information atop all the other standard paperwork adding further hoops you have to jump through.

Is This Loan What You Need?

Even though applying for SBA disaster loans may seem like a headache, it is countered by the pros gained once it is granted to you. If you can look past the application process to see the flexibility and money amount granted to you, this is a loan worth having.

However, if time isn’t a luxury you can afford there will be other options for you. It’s just a matter of finding them. There are more reasons to apply than not.

Looking for more business, law, and health information? View our collection of articles and find something for you.

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Business

Custom License Plates Are Booming The Business Market

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Custom License Plates Are Booming The Business Market

Whether you are looking for vehicle license plate or for any other business, it is always better to customize them to match your needs. There are simple and customized license plates available online, making this business really booming at present. Right now, reliable e-commerce centers are selling custom license plates at reasonable rates, making customers happy and growing their business in return.

So, before you even think of getting hands on one such license plate, let’s find out what you are about to invest your money in. Based on your requirements, the rates will change, and so is the design. Customize the license plate with any font size, color and style that you want. The steps are easy and you can rely on that well.

Basic features to work on:

If this is your first time ever dealing with customized license plates, then there are some points you need to cater in. Focusing on the features will actually let you know more about the product before you invest your money in.

  • The reputed online stores will ship their items fast. Most of the reliable firms will take 1 to 2 days to deliver the product at your given address.
  • If you plan to get a bulk order delivered, maybe for your company’s cars, then you can save some money on these signs too,
  • The vibrant design that you will choose for the plates will be infused permanently into the durable aluminum metal.
  • As you will get the plates in strong aluminum material, it will ensure a better hold just like you have asked for and will last the longest.
  • The front plates will measure somewhat around 6 x 12 inches with the four holes needed for proper placement. The sizes will vary based on your choices.
  • However, you might have to buy the mounting hardware separately as the pieces are not always included in the pack.
  • The best part about reliable license plates is that the items are not going to crack or peel. So, the design you have chosen will remain intact on the plates till the end.
  • These plates are designed to be fade and scratch resistant. So, even after the harsh UV rays fall directly on the plates on a daily basis, it won’t fade the glow of the items. Even water won’t be any to rust the license plates.

Always check in for the glossy and beautiful smooth finish of the license plates. If you are lucky enough to choose the best firm for help, you can get the plates in more than 20 colors and in 15+ font styles. So, go through the available options before you make the pick with the best one.

Focus on the quality:

As you are about to invest some money on the license plates, you want to focus on their top-notch quality. Now get it covered by experts, making the final products long lasting. The glossy texture and the warranty periods will help you to make the right choice with company selection.

 

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4 Reasons Why You Should Introduce Promo Codes in Your Business

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4 Reasons Why You Should Introduce Promo Codes in Your Business

Earlier on, few businesses used to allow customers to use promo codes in order to buy an item or two. However, this is no longer the case as more businesses are now allowing their customers to buy different goods and services using promo codes. Unlike other offers, promo codes allow customers to save more on the purchases they make out there. Since every customer is looking for a store or a shop where he or she can buy a product using promo codes, you should not hesitate to introduce them in your business. By introducing promo codes in your business, be sure that you will enjoy the following benefits:

1. Enables you to attract new customers

One way to attract new customers is by allowing them to use promo codes to buy a different products in your business. Whether you sell shoes or clothes, you should allow your customers to shop for these items using promo codes.

If you have not yet created promo codes for your customers, create them so that customers can utilize them. If you have been getting 10 customers in a day, you will be getting 20 or more daily by allowing them to use promo codes.

2. Makes your customers remain loyal to you

Customer loyalty is not earned just like that. One has to toil, moil and soil himself or herself. The good news is that promo codes can help you build this loyalty among many customers. By allowing your customers to submit promo codes, be sure that they will feel valued and appreciated. After all, every customer like being rewarded, every now and then.

3. Enables you to get more referrals

If your current customers had a good experience shopping with promo codes at your shop, they are likely to encourage other customers to visit your shop or store. Generally, you will get more referrals to your business every now and then. The more referrals you get, the more the sales made. For instance, one customer can refer 5 customers to your shop or store

If you normally have 10 loyal customers, they might bring an additional 50 more customers in the long run. At the beginning, the number of referrals might be few but it may increase steadily as days go by. Consequently, you will be able make more sales and increase your profit margins.

4. Increased web traffic

Any time that you are implementing a promotional strategy such as allowing your customers to shop using promo codes, be sure that you will get an increased web traffic on your site. More people would like to know what you are selling and perhaps try your products.

If they are able to get value for their money, be sure that they will keep on coming back for more. As a result, you will be able to make more sales and remain competitive out there.

Conclusion

By introducing promo codes in your business, be certain that you will enjoy the above-mentioned benefits. From be able to attract more customers to having a higher web traffic, there are many benefits of introducing a promotional strategy such as promo codes in your business. Consider these ideas today and you will be successful in your business.

 

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Business

Should You Launch Your Own Business?

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Should You Launch Your Own Business

When you ask people what’s on their bucket list, launching their own business is something that’s likely to be close to the top. However, you may be wondering whether owning a business is right for you. It’s not a decision to take, so here are some pointers to get you on your way.

Local laws can vary

In some areas, entrepreneurs are encouraged, while other places can have more red tape. This is why it’s important to do your research before you decide to launch a business. Starting a Hong Kong company is easier if you get professional help and advice, so don’t be afraid to speak to the experts. Spending some money on business advice pre-launch can save a lot of heartache down the line, and means you get off on the right foot.

Marketing is important

As a small business, you aren’t just competing with other local businesses, but the global ones too. That’s why marketing is so important to small businesses. It means you can build a following and get the right people interested in your business, so you can be successful from day one.

A small businesses’ digital strategy needs to include:

  • A professional website with booking or shopping capabilities
  • Social media strategies that make the most of each platform
  • Content that’s relevant and fresh
  • An SEO strategy to ensure you can be found

As a busy owner, you’ll no doubt want to outsource this work, so you should consider working with a local agency who can help you get results.

You don’t have to go all-in at first

Many successful businesses start as a side hustle, with someone working their full-time job and running it in their spare time. As the business becomes more successful, the owner can then consider dropping their day job and going all-in. This is a much less risky strategy, as it ensures you can still have an income coming in while you see if the new business can take off.

There are plenty of online guides

Not sure how to start a business? It can be a confusing process, but luckily there’s a wealth of information out there. Look at this guide to starting a business, which can guide you through the many steps. Of course, some businesses are more complex than others. If you’re just starting out, you might want to keep things simple, and once you have the experience, you can move onto bigger things.

Starting a business has become easier in recent years thanks to more people working remotely and the globe opening up. It can be a good way for you to do something completely different, and if you want to start a business, you should definitely look into whether it’s feasible. There are plenty of businesses out there that were started from nothing, and there’s no reason why you shouldn’t become an entrepreneur too. All you need is a great idea, and to do your research, to ensure that you make a go of it.

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