![\"\"](\"https://www.business.com/images/content/5ea/f54897b4374452e8b456c/460_-609-)
As states begin easing restrictions that were put in place to thwart the spread of COVID-19, many small business owners still find themselves picking up the pieces. While the work never stopped – even while operations were suspended or limited – many are finding that a return to \"normalcy\" isn't exactly what they expected.
\r\nIn this installment of business.com's small business COVID-19 diaries, we catch up with three entrepreneurs who have emerged from the initial shock of the pandemic in very different ways.
\r\nLooking for resources on how to help your small business through the COVID-19 pandemic? Visit the business.com COVID-19 resource page.
\r\nSpodek Law Group PC is a law firm in New York City that provides litigation services for criminal defense as well as divorce and family law. The firm employs 10 people.
\r\nManaging partner Todd Spodek, who is a business.com community member, was approved for a Paycheck Protection Program loan of $200,000 in April under the initial round of funding for the program. Since then, he has cut extraneous expenses, caught up with past clients and legal adversaries, established referral networks to help clients access needed assistance, and established a pro bono program for first responders.
\r\nWhile Spodek acknowledges his business has been interrupted, he is largely optimistic.
\r\n\"To be honest, everything kind of worked out OK,\" he said.
\r\nHe attributes the success of the firm to effective planning at the outset of the pandemic, including an immediate cutting of expenses, pivoting to a remote work model, negotiating with landlords, and community outreach efforts that generated significant goodwill and helped to establish new referral networks.
\r\n\"A lot of businesses are focused on sales … but the more you focus on sales when people are not in that mindset, the more distance you're putting into that relationship,\" Spodek said. \"I took the approach that … our clients need the help now and need someone to organize things for them. We're focused on providing help. When their life implodes, we're there.\"
\r\nAccording to Spodek, the firm does this through initiatives like the pro bono program for first responders. It also partnered with an organization called Blueground, which provides fast, furnished housing to people who find themselves without a living arrangement on short notice. Additionally, the firm partners with a service called Crisis Text Line, which offers 24/7 support with a counselor.
\r\nSpodek emphasized that while he is proud his firm can provide that kind of support, it also goes a long way toward generating business in the future.
\r\n\"When things improve, who do you think they're going to turn to?\" he said. \"I think a lot of businesses focus on selling their services, but you can provide much greater value if you are a trusted advisor to your clients.\"
\r\nSpodek's outlook is positive but measured. He said that although his firm has largely weathered the storm of the COVID-19 pandemic, balancing risk remains an important part of doing business in a post-coronavirus world.
\r\n\"New York has passed this threshold where the numbers have improved to the point where people are more comfortable going out to the park, out to the street, out to the stores,\" he said. \"Everyone has to balance that risk the way they see fit.\"
\r\nFor Spodek, that means not pushing employees to return to the office until they are comfortable. It also meant extending payment plans and accommodations to clients during the crisis, many of whom have begun to repay what they owe.
\r\n\"We've positioned ourselves so … we will be able to cherry-pick the clients that need our services, and those who don't need our services, we'll be able to point in the right direction.\"
\r\nFor other small business owners dealing with the economic challenges posed by the coronavirus pandemic, Spodek offered the following advice: \"I think the key is really to prepare yourself,\" he said. \"The more preparation a business does, the better they're able to weather the storm no matter what it may be – lawsuits, employees leaving, competition.\"
\r\nSpodek added, \"A lot of businesses won't be here after COVID-19, but the businesses that prosper from all this are the ones that are diversified, created value for their clients, and that when it was time to stand up for something, they did.\"
\r\nAces Wild Casino Parties is an entertainment rental business based in Orlando, Florida. Aces Wild brings the casino to your event, including dealer tables, dealers, decorations, even exotic animals.
\r\nAces Wild Casino Parties has three full-time employees and works with about 80 independent contractors at any given time, said owner Edgar Comellas.
\r\nComellas previously received a small loan from the Paycheck Protection Program, although it was not the full amount for which he applied. He was concerned about whether the money would be eligible for forgiveness due to confusion surrounding the U.S. Small Business Administration (SBA) guidance. However, he had no choice but to use the funds to cover payroll expenses.
\r\n\"I'm talking with my CPA, talking with the bank, and everything is within their parameters,\" Comellas said, hopeful that his loan will be forgiven. \"We'll see because no one has said when it will actually be forgiven. You need to have a very, very good paper trail to show these funds were used appropriately, which is understandable.\"
\r\nWhile Florida has gradually been reopening businesses, including restaurants and bars in phase two of its economic reopening plan, the events industry in which Comellas participates remains stalled. The bellwether for events in Orlando, Comellas said, is Disney World, which has targeted mid-July as a potential reopening date.
\r\n\"The event industry is dependent on outside individuals coming to local attractions,\" Comellas said. \"Right now, we're just sitting back, working on SEO, working on content and social media. But the prospect of business … we're starting to get requests for quotes for October, November.\"
\r\nIf it takes that long for business to ramp up, Comellas said, he might have to close the doors on Aces Wild Casino Parties or reimagine the business model altogether.
\r\n\"It makes me rethink perhaps the whole business altogether,\" Comellas said. \"We might have to move from one concept to another – it could be casino dealer training. That's another market we could start reaching out to, especially since we can do it online.\"
\r\nUltimately, Comellas likened his experience to navigating the five stages of grief.
\r\n\"You're in denial, then there's bargaining … and acceptance,\" Comellas said. \"Bargaining was 'Oh I'll get some funding from the PPP and try to keep it alive.' When you see that it doesn't matter, and you can keep pumping money into this, but there's going to be the same result … you just can't go with that plan right now.
\r\n\"I'm in the acceptance stage where it might just be time to close it down and refocus on something else,\" he added. \"When you're forced to take time away from work, you realize what things you really need to survive, what makes you happy and what you want to do with your time.\"
\r\nFor small business owners struggling with the same difficult decision, Comellas offered the following advice: \"Just like in nature, things burn down in a forest. Nonnative plants don't regrow, but things that are natural and should be there grow again,\" Comellas said. \"You can let the brand fall, but if you had good clients and a good product, it can be rebuilt – a little bit cleaner, a little bit sleeker and a little bit faster.\"
\r\nSprinkled with Pink is a Dallas-based small business that produces handmade, personalized accessories and apparel for a range of occasions and events. The business employs two full-time employees and five part-time employees.
\r\nAfter a significant wait, owner Kendra Eaton told business.com Sprinkled with Pink was approved for a portion of the Paycheck Protection Program loan on May 1. In the month since, Eaton was able to bring back most of her team, many of whom had been furloughed when COVID-19 first led to economic shutdowns across the country.
\r\n\"I'm really grateful we were able to get the funding, but there is still a lot of uncertainty around what we will owe and what will be forgiven,\" Eaton said. \"[The government] acted quickly to get this money out, which is good, but now business owners have to make decisions about how to get all this forgiven. It makes you leery about spending any money.\"
\r\nAdditionally, Eaton said bringing her team back to work meant implementing social distancing policies that would help protect the health of everyone in the workplace. This includes establishing rotating schedules, wearing masks and staying more than six feet away from one another, she said.
\r\n\"We made sure we're social distancing,\" Eaton said. \"We have a skeleton crew and made sure people are working at different times so we don't have too many people in the office. We have 2,600 square feet and seven people, so we can spread out.\"
\r\nAs far as business, Eaton said their e-commerce model has afforded them the ability to pivot and continue generating revenue through the pandemic. One creative collection the team came up with was quarantine themed; another was based on the popular Netflix series \"Tiger King.\" Although Sprinkled with Pink was able to continue operating, Eaton said it was far from uninterrupted.
\r\n\"We want to just, for the rest of the year, hit our levels for 2019,\" she said. \"Before, we thought we'd increase by 65% or 70%, but now we're just trying to hit the same levels as last year.\"
\r\nEaton offered the following advice to other small business owners continuing to navigate the novel coronavirus pandemic: \"Just have a plan for the rest of the year,\" she said. \"Don't just plan a day out, even though it's hard to plan. You're kind of guessing but you need to have a plan.\"
\r\nFor Sprinkled with Pink, this means multiple strategies and contingency planning for both ideal and catastrophic circumstances.
\r\n\"And just keep your head up too. It can be a stressful situation, but if you're working as hard as you can, you need to relax to keep a hang of things,\" Eaton said. \"Being in depressed mode is not going to help your business or employees, and they need you to have a clear head.\"
\r\nDuring our small business COVID-19 diaries series, we are engaged in a parallel conversation with the business.com community. Here's what some of our community members had to say:
\r\n\r\n\r\n\"My company's revenue dropped about 30% last month compared to what I had forecasted and what we did in March. I still consider us very well positioned, though, both because our margins are very high and because we're small [and] flexible. I expect us to bounce back relatively quickly and maybe even come out ahead, as our bigger competitors may struggle more and be forced to lay people off. Overall, I'm dropping my revenue forecast by 25% for the entire year, but I'm still optimistic about the long-term picture.\" – Biron Clark, founder of Career Sidekick and a business.com community member.
\r\n\"I keep hearing the words 'new normal' in the media and from colleagues, but the reality is that we are now living in a new economy. The sooner that we pivot our businesses toward this new economy, the better off we all will be … Not all of us can pivot our businesses, of course, but those of us who can need to do it now. It is a good exercise for all of us, as business owners, to take some time to step away from the day to day and think hard through the consequences of what is happening. I scheduled a few hours every week for calls with industry leaders whom I respect to discuss the current situation and walk through the likely scenarios for our industry. It was well worth it, at least one of those conversations changed my approach to a particular negotiation and resulted in a much more positive outcome.\" – Michael Puscar, CEO of Oiga Technologies and a business.com community member.
\r\n\"Remember that your survival hinges on agility…. In a crisis, your company's survival hinges on your ability to mobilize and inspire your talent. Your decisions and actions determine whether your people will be an asset or a liability. Ideally, your talent ensures adaptation by quickly developing and implementing a new operating model … While it's hard to manage panic and the impulse to make knee-jerk decisions, objectivity will be your saving grace. You can maximize strategic performance by crafting an aligned talent strategy that empowers your employees to handle the execution themselves. Mitigate your chances for failure and ensure success by using analytics and data to design your teams and hire the right people in each position.\" – Alphonso Cheponis, president and talent optimization consultant at Straightline Consulting Group and a business.com community member.
\r\n
Are you interested in telling your COVID-19 story? Join the ongoing conversation on business.com's community.
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He has also written about emerging technologies and their intersection with business, including artificial intelligence, the Internet of Things, and blockchain.","name":"Adam Uzialko","image":null,"slug":null,"social":{"facebook":"","linkedin":"http://www.linkedin.com/in/adam-uzialko-1ab0974b","twitter":"https://twitter.com/auzialko_bdc","website":"https://www.business.com"},"status":"enabled","title":null,"type":"Staff","user":{"imagePath":"https://staging.business.com/images/uploads/user/profile/31e1b7f1f80bd7505b1aa2e57e66edd9b9fa9.jpg","profile":{"company":"business.com","jobTitle":"Freelance Editor","website":"https://www.business.com"}}},"breadcrumbs":null,"channels":{"primary":{"name":"Finance","slug":"finance"},"sub":{"name":"Finances","slug":"finances"}},"meta":{"robots":"index, follow","description":"Real entrepreneurs and business.com community members share their stories of navigating the COVID-19 pandemic.","title":"True COVID-19 Stories from SMB Owners: Part 4 - business.com"},"parsedContent":{"toc":[{"id":"todd-spodek,-managing-partner-of-spodek-law-group","title":"Todd Spodek, managing partner of Spodek Law Group"},{"id":"edgar-comellas,-owner-of-aces-wild-casino-parties","title":"Edgar Comellas, owner of Aces Wild Casino Parties"},{"id":"kendra-eaton,-owner-of-sprinkled-with-pink","title":"Kendra Eaton, owner of Sprinkled with Pink"},{"id":"how-are-businesscom-community-members-emerging-from-the-pandemic","title":"How are business.com community members emerging from the pandemic?"}],"json":[{"component":"p","children":["As states begin easing restrictions that were put in place to thwart the spread of COVID-19, many small business owners still find themselves picking up the pieces. While the work never stopped – even while operations were suspended or limited – many are finding that a return to \"normalcy\" isn't exactly what they expected."]},{"component":"p","children":["In this installment of business.com's small business COVID-19 diaries, we catch up with three entrepreneurs who have emerged from the initial shock of the pandemic in very different ways."]},{"component":"p","children":[{"component":"strong","children":[{"component":"i","children":["Looking for resources on how to help your small business through the COVID-19 pandemic? Visit ",{"component":"Link","props":{"href":"https://www.business.com/covid-resources/"},"children":["the business.com COVID-19 resource page"]},"."]}]}]},{"component":"h2","props":{"id":"todd-spodek,-managing-partner-of-spodek-law-group"},"children":["Todd Spodek, managing partner of Spodek Law Group"]},{"component":"p","children":[{"component":"a","props":{"href":"https://www.divorceattorneynyc.com/","target":"_blank","rel":"noopener"},"children":[{"component":"picture","props":{"className":"alignleft small"},"children":[{"component":"source","props":{"srcSet":"https://www.business.com/images/content/5ea/f54897b4374452e8b456c/460_-609- 460w, https://www.business.com/images/content/5ea/f54897b4374452e8b456c/255_-337- 255w, https://www.business.com/images/content/5ea/f54897b4374452e8b456c/127_-168- 127w","sizes":"(min-width: 870px) 255px, (min-width: 400px) 100vw, 100%"}},{"component":"img","props":{"src":"https://www.business.com/images/content/5ea/f54897b4374452e8b456c/243-322-","alt":"","width":"243","height":"322","data-content-img-id":"5eaf54897b4374452e8b456c"}}]}]}]},{"component":"p","children":[{"component":"a","props":{"href":"https://www.divorceattorneynyc.com/","target":"_blank","rel":"noopener"},"children":["Spodek Law Group PC"]}," is a law firm in New York City that provides litigation services for criminal defense as well as divorce and family law. The firm employs 10 people."]},{"component":"p","children":["Managing partner Todd Spodek, who is a ",{"component":"Link","props":{"href":"https://www.business.com/advice/member/p/todd-spodek/"},"children":["business.com community member"]},", was approved for a ",{"component":"Link","props":{"href":"https://www.business.com/articles/paycheck-protection-program-loans-good-faith/"},"children":["Paycheck Protection Program"]}," loan of $200,000 in April under the initial round of funding for the program. Since then, he has cut extraneous expenses, caught up with past clients and legal adversaries, established referral networks to help clients access needed assistance, and established a pro bono program for first responders."]},{"component":"p","children":["While Spodek acknowledges his business has been interrupted, he is largely optimistic."]},{"component":"p","children":["\"To be honest, everything kind of worked out OK,\" he said."]},{"component":"p","children":["He attributes the success of the firm to effective planning at the outset of the pandemic, including an immediate cutting of expenses, pivoting to a remote work model, negotiating with landlords, and community outreach efforts that generated significant goodwill and helped to establish new referral networks."]},{"component":"p","children":["\"A lot of businesses are focused on sales … but the more you focus on sales when people are not in that mindset, the more distance you're putting into that relationship,\" Spodek said. \"I took the approach that … our clients need the help now and need someone to organize things for them. We're focused on providing help. When their life implodes, we're there.\""]},{"component":"p","children":["According to Spodek, the firm does this through initiatives like the pro bono program for first responders. It also partnered with an organization called Blueground, which provides fast, furnished housing to people who find themselves without a living arrangement on short notice. Additionally, the firm partners with a service called Crisis Text Line, which offers 24/7 support with a counselor."]},{"component":"p","children":["Spodek emphasized that while he is proud his firm can provide that kind of support, it also goes a long way toward generating business in the future."]},{"component":"p","children":["\"When things improve, who do you think they're going to turn to?\" he said. \"I think a lot of businesses focus on selling their services, but you can provide much greater value if you are a trusted advisor to your clients.\""]},{"component":"p","children":["Spodek's outlook is positive but measured. He said that although his firm has largely weathered the storm of the COVID-19 pandemic, balancing risk remains an important part of doing business in a post-coronavirus world."]},{"component":"p","children":["\"New York has passed this threshold where the numbers have improved to the point where people are more comfortable going out to the park, out to the street, out to the stores,\" he said. \"Everyone has to balance that risk the way they see fit.\""]},{"component":"p","children":["For Spodek, that means not pushing employees to return to the office until they are comfortable. It also meant extending payment plans and accommodations to clients during the crisis, many of whom have begun to repay what they owe."]},{"component":"p","children":["\"We've positioned ourselves so … we will be able to cherry-pick the clients that need our services, and those who don't need our services, we'll be able to point in the right direction.\""]},{"component":"p","children":["For other small business owners dealing with the economic challenges posed by the coronavirus pandemic, Spodek offered the following advice: \"I think the key is really to prepare yourself,\" he said. \"The more preparation a business does, the better they're able to weather the storm no matter what it may be – lawsuits, employees leaving, competition.\""]},{"component":"p","children":["Spodek added, \"A lot of businesses won't be here after COVID-19, but the businesses that prosper from all this are the ones that are diversified, created value for their clients, and that when it was time to stand up for something, they did.\""]},{"component":"h2","props":{"id":"edgar-comellas,-owner-of-aces-wild-casino-parties"},"children":["Edgar Comellas, owner of Aces Wild Casino Parties"]},{"component":"p","children":[{"component":"picture","props":{"className":"alignright med"},"children":[{"component":"source","props":{"srcSet":"https://www.business.com/images/content/5ea/f53e49c658a546b8b4568/742_-493- 742w, https://www.business.com/images/content/5ea/f53e49c658a546b8b4568/412_-273- 412w, https://www.business.com/images/content/5ea/f53e49c658a546b8b4568/206_-136- 206w","sizes":"(min-width: 870px) 412px, (min-width: 400px) 38vw, 62%"}},{"component":"img","props":{"src":"https://www.business.com/images/content/5ea/f53e49c658a546b8b4568/385-256-","alt":"","width":"385","height":"256","data-content-img-id":"5eaf53e49c658a546b8b4568"}}]}]},{"component":"p","children":[{"component":"a","props":{"href":"https://theaceswild.com/","target":"_blank","rel":"noopener"},"children":["Aces Wild Casino Parties"]}," is an entertainment rental business based in Orlando, Florida. Aces Wild brings the casino to your event, including dealer tables, dealers, decorations, even exotic animals."]},{"component":"p","children":["Aces Wild Casino Parties has three full-time employees and works with about 80 independent contractors at any given time, said owner Edgar Comellas."]},{"component":"p","children":["Comellas previously received a small loan from the Paycheck Protection Program, although it was not the full amount for which he applied. He was concerned about whether the money would be eligible for forgiveness due to confusion surrounding the U.S. Small Business Administration (SBA) guidance. However, he had no choice but to use the funds to cover payroll expenses."]},{"component":"p","children":["\"I'm talking with my CPA, talking with the bank, and everything is within their parameters,\" Comellas said, hopeful that his loan will be forgiven. \"We'll see because no one has said when it will actually be forgiven. You need to have a very, very good paper trail to show these funds were used appropriately, which is understandable.\""]},{"component":"p","children":["While Florida has gradually been reopening businesses, including restaurants and bars in phase two of its economic reopening plan, the events industry in which Comellas participates remains stalled. The bellwether for events in Orlando, Comellas said, is Disney World, which has targeted mid-July as a potential reopening date."]},{"component":"p","children":["\"The event industry is dependent on outside individuals coming to local attractions,\" Comellas said. \"Right now, we're just sitting back, working on SEO, working on content and social media. But the prospect of business … we're starting to get requests for quotes for October, November.\""]},{"component":"p","children":["If it takes that long for business to ramp up, Comellas said, he might have to close the doors on Aces Wild Casino Parties or reimagine the business model altogether."]},{"component":"p","children":["\"It makes me rethink perhaps the whole business altogether,\" Comellas said. \"We might have to move from one concept to another – it could be casino dealer training. That's another market we could start reaching out to, especially since we can do it online.\""]},{"component":"p","children":["Ultimately, Comellas likened his experience to navigating the five stages of grief."]},{"component":"p","children":["\"You're in denial, then there's bargaining … and acceptance,\" Comellas said. \"Bargaining was 'Oh I'll get some funding from the PPP and try to keep it alive.' When you see that it doesn't matter, and you can keep pumping money into this, but there's going to be the same result … you just can't go with that plan right now."]},{"component":"p","children":["\"I'm in the acceptance stage where it might just be time to close it down and refocus on something else,\" he added. \"When you're forced to take time away from work, you realize what things you really need to survive, what makes you happy and what you want to do with your time.\""]},{"component":"p","children":["For small business owners struggling with the same difficult decision, Comellas offered the following advice: \"Just like in nature, things burn down in a forest. Nonnative plants don't regrow, but things that are natural and should be there grow again,\" Comellas said. \"You can let the brand fall, but if you had good clients and a good product, it can be rebuilt – a little bit cleaner, a little bit sleeker and a little bit faster.\""]},{"component":"h2","props":{"id":"kendra-eaton,-owner-of-sprinkled-with-pink"},"children":["Kendra Eaton, owner of Sprinkled with Pink"]},{"component":"p","children":[{"component":"a","props":{"href":"https://www.sprinkledwithpinkshop.com/","target":"_blank","rel":"noopener"},"children":[{"component":"picture","props":{"className":"alignleft small"},"children":[{"component":"source","props":{"srcSet":"https://www.business.com/images/content/5ea/f55365a215e63488b4572/460_-688- 460w, https://www.business.com/images/content/5ea/f55365a215e63488b4572/255_-381- 255w, https://www.business.com/images/content/5ea/f55365a215e63488b4572/127_-189- 127w","sizes":"(min-width: 870px) 255px, (min-width: 400px) 100vw, 100%"}},{"component":"img","props":{"src":"https://www.business.com/images/content/5ea/f55365a215e63488b4572/252-377-","alt":"","width":"252","height":"377","data-content-img-id":"5eaf55365a215e63488b4572"}}]}]}]},{"component":"p","children":[{"component":"a","props":{"href":"https://www.sprinkledwithpinkshop.com/","target":"_blank","rel":"noopener"},"children":["Sprinkled with Pink"]}," is a Dallas-based small business that produces handmade, personalized accessories and apparel for a range of occasions and events. The business employs two full-time employees and five part-time employees."]},{"component":"p","children":["After a significant wait, owner Kendra Eaton told business.com Sprinkled with Pink was approved for a portion of the Paycheck Protection Program loan on May 1. In the month since, Eaton was able to bring back most of her team, many of whom had been ",{"component":"Link","props":{"href":"https://www.business.com/articles/how-to-support-furloughed-employees/"},"children":["furloughed"]}," when COVID-19 first led to economic shutdowns across the country."]},{"component":"p","children":["\"I'm really grateful we were able to get the funding, but there is still a lot of uncertainty around what we will owe and what will be forgiven,\" Eaton said. \"[The government] acted quickly to get this money out, which is good, but now business owners have to make decisions about how to get all this forgiven. It makes you leery about spending any money.\""]},{"component":"p","children":["Additionally, Eaton said ",{"component":"Link","props":{"href":"https://www.business.com/articles/covid-return-to-work-small-business/"},"children":["bringing her team back to work"]}," meant implementing social distancing policies that would help protect the health of everyone in the workplace. This includes establishing rotating schedules, wearing masks and staying more than six feet away from one another, she said."]},{"component":"p","children":["\"We made sure we're social distancing,\" Eaton said. \"We have a skeleton crew and made sure people are working at different times so we don't have too many people in the office. We have 2,600 square feet and seven people, so we can spread out.\""]},{"component":"p","children":["As far as business, Eaton said their e-commerce model has afforded them the ability to pivot and continue generating revenue through the pandemic. One creative collection the team came up with was quarantine themed; another was based on the popular Netflix series \"Tiger King.\" Although Sprinkled with Pink was able to continue operating, Eaton said it was far from uninterrupted."]},{"component":"p","children":["\"We want to just, for the rest of the year, hit our levels for 2019,\" she said. \"Before, we thought we'd increase by 65% or 70%, but now we're just trying to hit the same levels as last year.\""]},{"component":"p","children":["Eaton offered the following advice to other small business owners continuing to navigate the novel coronavirus pandemic: \"Just have a plan for the rest of the year,\" she said. \"Don't just plan a day out, even though it's hard to plan. You're kind of guessing but you need to have a plan.\""]},{"component":"p","children":["For Sprinkled with Pink, this means multiple strategies and contingency planning for both ideal and catastrophic circumstances."]},{"component":"p","children":["\"And just keep your head up too. It can be a stressful situation, but if you're working as hard as you can, you need to relax to keep a hang of things,\" Eaton said. \"Being in depressed mode is not going to help your business or employees, and they need you to have a clear head.\""]},{"component":"h2","props":{"id":"how-are-businesscom-community-members-emerging-from-the-pandemic"},"children":["How are business.com community members emerging from the pandemic?"]},{"component":"p","children":["During our small business COVID-19 diaries series, we are engaged in ",{"component":"Link","props":{"href":"https://www.business.com/advice/answers/question/share-your-story-how-has-covid-19-affected-you/"},"children":["a parallel conversation with the business.com community"]},". Here's what some of our community members had to say:"]},{"component":"blockquote","children":[{"component":"p","children":["\"My company's revenue dropped about 30% last month compared to what I had forecasted and what we did in March. I still consider us very well positioned, though, both because our margins are very high and because we're small [and] flexible. I expect us to bounce back relatively quickly and maybe even come out ahead, as our bigger competitors may struggle more and be forced to lay people off. Overall, I'm dropping my revenue forecast by 25% for the entire year, but I'm still optimistic about the long-term picture.\" – ",{"component":"Link","props":{"href":"https://www.business.com/advice/member/p/biron-clark/"},"children":[{"component":"i","children":["Biron Clark"]}]},{"component":"i","children":[", founder of "]},{"component":"a","props":{"href":"https://careersidekick.com/","target":"_blank","rel":"noopener"},"children":[{"component":"i","children":["Career Sidekick"]}]},{"component":"i","children":[" and a business.com community member."]}]},{"component":"p","children":["\"I keep hearing the words 'new normal' in the media and from colleagues, but the reality is that we are now living in a new economy. The sooner that we pivot our businesses toward this new economy, the better off we all will be … Not all of us can pivot our businesses, of course, but those of us who can need to do it now. It is a good exercise for all of us, as business owners, to take some time to step away from the day to day and think hard through the consequences of what is happening. I scheduled a few hours every week for calls with industry leaders whom I respect to discuss the current situation and walk through the likely scenarios for our industry. It was well worth it, at least one of those conversations changed my approach to a particular negotiation and resulted in a much more positive outcome.\" – ",{"component":"Link","props":{"href":"https://www.business.com/advice/member/p/michael-puscar/"},"children":[{"component":"i","children":["Michael Puscar"]}]},{"component":"i","children":[", CEO of "]},{"component":"a","props":{"href":"http://www.oiga.com/","target":"_blank","rel":"noopener"},"children":[{"component":"i","children":["Oiga Technologies"]}]},{"component":"i","children":[" and a business.com community member."]}]},{"component":"p","children":["\"Remember that your survival hinges on agility…. In a crisis, your company's survival hinges on your ability to mobilize and inspire your talent. Your decisions and actions determine whether your people will be an asset or a liability. Ideally, your talent ensures adaptation by quickly developing and implementing a new operating model … While it's hard to manage panic and the impulse to make knee-jerk decisions, objectivity will be your saving grace. You can maximize strategic performance by crafting an aligned talent strategy that empowers your employees to handle the execution themselves. Mitigate your chances for failure and ensure success by using analytics and data to design your teams and hire the right people in each position.\" – ",{"component":"Link","props":{"href":"https://www.business.com/advice/member/p/aj-cheponis/"},"children":[{"component":"i","children":["Alphonso Cheponis"]}]},{"component":"i","children":[", president and talent optimization consultant at "]},{"component":"a","props":{"href":"https://www.straightline.consulting/","target":"_blank","rel":"noopener"},"children":[{"component":"i","children":["Straightline Consulting Group"]}]},{"component":"i","children":[" and a business.com community member."]}]}]},{"component":"p","children":[{"component":"strong","children":[{"component":"i","children":["Are you interested in telling your COVID-19 story? ",{"component":"Link","props":{"href":"https://www.business.com/advice/answers/question/share-your-story-how-has-covid-19-affected-you/"},"children":["Join the ongoing conversation on business.com's community"]},{"component":"Link","props":{"href":"https://www.business.com/advice/answers?sort=recent&keyword=covid"},"children":["."]}]}]}]}]},"resource":null,"sponsorship":{"sponsorType":"no-sponsor","name":null,"thumbnail":null,"bio":null,"slug":null,"status":null,"social":{"website":null,"linkedin":null,"twitter":null,"facebook":null}},"thumbnail":{"path":"https://staging.business.com/images/content/5ee/286a05a215e445f8b456f/1500-0-","caption":"Chainarong_Prasertthai / Getty Images","isBlurred":false},"bestPicks":{"title":"The Best Business Loan and Financing Options of 2021","widgetSection":{"__typename":"SectionWidget","widget":{"widgetId":"10128"}},"bestPicksSection":{"__typename":"SectionBestPicks","bestpicks":[{"fullTitle":"Best for Merchant Cash Advances","bullets":["2 years in business required","Advances of $5,000 to $250,000","Must have $5,000 in credit sales"],"isFeaturedBestPick":false,"isJumpLink":false,"tabTitle":"Merchant Cash Advance","review":{"isReview":true,"adsense":true,"canonical":"https://staging.business.com/reviews/rapidadvance/","review":{"fullReview":"Rapid Finance is our pick as the best lender for merchant cash advances. It provides small businesses with advances ranging from $5,000 to $500,000. It also offers term loans, lines of credit, bridge loans, SBA loans, invoice factoring, asset-based loans, commercial real estate loans and healthcare cash advances.
\r\n\r\n
To view all of our recommendations for small business financing, visit our best picks page.
\r\nFor its merchant cash advance, Rapid Finance works with both you and your credit card processor to work out a payment plan consisting of a percentage on your monthly credit card sales. This is known as a split percentage or holdback amount.
\r\nRapid Finance's loan terms are relatively short. The longest term available is 18 months. Other types of loans and alternative lenders support prepayment options, but because merchant cash advances are linked with credit card sales each month, the company is looking to collect on those sales each month instead of a lump sum.
\r\nRapid Finance doesn't charge additional fees, such as an origination or documentation fee. Working with Rapid Finance means you'll only be paying off the principal and the set interest amount. The money loaned through Rapid Finance can be used for nearly any business-related expense, like inventory purchases, equipment needs, marketing or advertising opportunities and other short-term capital needs.
\r\nIn addition to favorable loan terms and a good reputation, Rapid Finance's online application process is quick, and the overall qualifications make for a compelling offering. Here's more about Rapid Finance's loan requirements.
\r\nWhen applying with Rapid Finance, you'll need to provide personal and business information, like the name of your business, the number of years in business, total monthly sales and how you plan to use the money.
\r\nRapid Finance's terms – up to 18 months – are in keeping with other lenders that provide merchant cash advances. By comparison, Balboa Capital's merchant cash advance loan product has a term that ranges from three to 18 months.
\r\nBusiness owners need to provide a government-issued photo ID, a voided check, three months of business bank statements and three months of credit card processing statements to qualify. Rapid Finance does not specify how much monthly credit card revenue you need to qualify; in the past, it has required $5,000 per month in revenue. This number is relatively low compared to other companies: Fora Financial, for instance, requires a monthly income of at least $12,000.
\r\nThere are two cash advance plans Rapid Finance offers, and which plan you qualify for depends on how long you've been in business. The starter merchant cash advance requires companies to be in business for three months to qualify. The premium merchant cash advance plan requires businesses to be in operation for at least a full year.
\r\nRapid Finance sales representatives told us they weighted monthly income and credit score the highest when considering a loan applicant. They didn't provide a minimum requirement for credit score, instead, they said all scores are considered regardless of how high or low they are.
\r\nRapid Finance's loans are unsecured, which means you don't have to put up collateral on the loan. The company doesn't require a UCC-1 filing, which acts as collateral on your business assets.
\r\nRapid Finance doesn't have a long approval time. Merchant cash advances generally have a pretty quick turnaround time. If you're looking for quick cash, this type of loan is an ideal option.
\r\nRapid Finance requires more documentation to apply for funding compared to other lenders we reviewed. In addition to providing bank statements and credit card processing statements, a photo ID and a voided check, Rapid Finance runs a credit check on you and verifies that you are the owner of the business. This documentation, while more rigorous than other lenders we reviewed, is still reasonable compared to what traditional banks or other lenders may require.
\r\nTo speed up your loan reviewal and approval process, it's recommended that you have this documentation ready at the time you apply for financing.
\r\nMerchant cash advances are great for small business owners who need fast cash and have a high volume of credit card sales. Because the payment plan is tethered as a percentage of your credit card sales, you won't feel the pressure of high monthly payments during tough months.
\r\nDepending on what you need capital for, Rapid Finance has several options that make it an ideal option for small businesses looking for alternative lenders. Lines of credit can be a great option for small business owners looking to access funds whenever they need it. Rapid Finance was one of the few companies we evaluated that provided merchant cash advances between $5,000 and $500,000. Other companies advance set amounts or smaller percentages of credit card sales. The loan term ranges from three to 60 months.
\r\nRapid Finance provides two merchant cash advance plans, which is also a unique feature. The starter merchant cash advance has more relaxed requirements but results in a lower advance.
\r\nWhen we talked to Rapid Finance, posing as a small business owner, they suggested the starter package is best for new businesses. Once a business borrows and completes this type of loan, they can bump up to the premium merchant cash advance. This cash advance is for businesses that are more established and features more advanced funding options.
\r\nThere are a few limitations small business owners should be aware of with Rapid Finance. Startups may also not qualify for funding. Your business must be in operation for at least three months and generating $5,000 in monthly revenue. In addition, Rapid Finance's business loan offerings are also not available in New Jersey, Montana, Nevada and Rhode Island.
\r\nRapid Finance has stellar reviews on the Better Business Bureau (BBB), with more than 150 positive reviews logged on the site. As of May 2020, it's an accredited business, has five out of five stars on customer reviews and has an A+ rating from the BBB. Other companies we reviewed had significantly fewer individual reviews on BBB, and a five out of five score is practically unheard of. In addition to BBB reviews, Rapid Finance has solid review scores on varying review sites. We couldn't find any Google reviews, however.
\r\nTo evaluate Rapid Finance's customer service, we contacted the company posing as a small business owner to learn more about its service offering. We asked about their rates and terms as well as questions about general business and loan topics. Rapid Finance representatives gave us clear, succinct answers. When it came to reviewing terminology and general business topics surrounding the loan, they helped us understand the various aspects of the agreement we would be entering. They didn't push for a sale or make us feel pressured to work with the company. They lived up to their claim for providing free information and offering service-related topics.
"},"url":"https://www.rapidfinance.com/financing-solutions/merchant-cash-advance/","docType":"service","title":"Rapid Finance","thumbnail":{"path":"https://staging.business.com/images/rz/5cb775069c658a004e8b4578/rapid-finance.png"},"pricing":{"isCapped":false,"isFeatured":false,"primary":true,"selected":"affiliate","widgetId":null,"widget":null,"affiliate":{"cta":"Visit Site","link":"https://businesscom.go2cloud.org/aff_c?offer_id=723&aff_id=1000&source=small-business-loans-and-financing-options&aff_sub4=revenue|QT&aff_sub3=deal|Rapid-Finance&url_id=1","name":"Sponsorship"}}}},{"fullTitle":"Best Small Business Lender","bullets":["Loans up to $500,000","One-page application","Early payoff discounts"],"isFeaturedBestPick":false,"isJumpLink":false,"tabTitle":"Best Small Business Lender","review":{"isReview":true,"adsense":true,"canonical":"https://staging.business.com/reviews/fora-financial/","review":{"fullReview":"Fora Financial provides a wide range of funding options to small businesses, quick funding turnaround and merchant cash advances of up to $500,000. Its relaxed requirements and qualifications make it ideal for small businesses that can't qualify with a traditional bank, which is why Fora Financial is our pick as best lender for small businesses.
\r\n\r\n
To view all our recommendations for small business financing, visit our best picks page.
\r\nFora doesn't operate with traditional interest rates. Instead, you pay a fixed amount based on your financial situation. Loan amounts range from $5,000 to $500,000, depending on the type of loan you apply for. This model allows small business owners to have a clear understanding of exactly what they owe and work up to that total amount.
\r\nFora is one of the few companies we reviewed that doesn't charge any additional fees. You are only required to pay off the loan's principal and the set interest amount. This is a unique and compelling aspect of Fora's service.
\r\nFora's overall loan terms are relatively short. You're looking at a repayment length of up to 15 months. This means you can quickly access and pay back your loan – heavy debt won't beleaguer your books for much longer than a year.
\r\nIf you opt for a merchant cash advance loan, there is no set payback schedule. Instead, you'll be charged a percentage of your overall credit card sales until the loan is fully paid off. Fora's only requirement that differs from a standard loan is that your business must earn at least $5,000 in credit card sales each month. This benchmark, according to Fora, ensures that your business has the necessary income to pay off the loan.
\r\nRegardless of which loan you apply for, you'll be entering into an unsecured loan, meaning you don't have to put up collateral. This gives your business more financial flexibility and legal freedom. Once you reach an agreement with Fora, a payment plan will be set up and money will automatically be deducted from your business's checking account. Payment will come out on a daily or weekly basis, depending on your loan agreement and what works best for your business. You can pay back the loan in full at any time – there are no prepayment penalties. In fact, early payoff could qualify you for a discount on the remaining balance.
\r\nThere are many aspects of Fora's process and loan options that make it our best pick for small business loans. Here's how it works in each area.
\r\nFora has a quick online application process. It only takes 24 hours to find out if you'll receive funding. If you get approved for a loan, Fora provides funding 72 hours afterward. This is a longer wait time than you'll find with some other services, but still short considering that it requires no collateral and relatively little paperwork.
\r\nYou can fill out an application either online or over the phone. The application asks for basic information, like your business's name, email address, phone number, monthly gross sales and time in business. From here, you'll have to provide three of your business's most recent bank statements. Depending on your financial situation, you may have to submit a month-to-date bank statement, tax returns, a profit and loss statement, or a balance sheet.
\r\nFora Financial's loan terms go up to 15 months, making it one of the shorter-term lending options of the companies we reviewed. This quick funding means you can qualify for a certain amount and pay it back without the burden of a fluctuating or excessively high interest rate.
\r\nTo qualify for a loan from Fora, you must have been in business at least six months, have $12,000 in gross monthly sales and have had no bankruptcies. For merchant cash advances, the same qualifications apply, only you need $5,000 in monthly credit card sales.
\r\nWhen we spoke to Fora representatives, they told us that the company gives the most weight to gross monthly sales when considering loan applicants. Because Fora doesn't operate with traditional interest rates, it wants to gauge your monthly revenue to establish that you're capable of paying back the loan. The other two requirements from Fora ensure that your business is stable and healthy enough to take on debt.
\r\nFora loans are unsecured, meaning you don't have to put up any collateral. Unlike most lenders, Fora doesn't even require a personal guarantee, which is a legally binding agreement that you'll be personally responsible for the loan if your business defaults. This sets Fora apart from competitors as a lender with relaxed requirements and quick capital options.
\r\nOnce you complete the application, you can be approved within 24 hours. If you are approved for a loan, Fora can transfer the funds as soon as 72 hours after the agreement is signed. This is longer than some other companies we reviewed take, but the lenient requirements and qualifications make up for this. If you need a faster deposit, you should check out cash advance companies or lenders that can provide same-day funding, such as LoanMe.
\r\nFora doesn't require a lot of advanced documentation for you to secure a loan. Initially, alongside your application for the loan, you'll have to submit three months' worth of bank statements to verify your gross monthly income. The lender may request additional documentation, like a month-to-date bank statement, tax returns, a profit and loss statement, or a balance sheet.
\r\nYou'll also need a driver's license, a voided check and proof of ownership of the business to finalize the loan. This is more documentation than some companies require, but significantly less than the services that run credit checks. Having all your documentation ready before you apply (or while your application is being reviewed) can speed up your overall loan process.
\r\nFora Financial is a national organization that can provide small business loans and merchant cash advances for up to $500,000 within 72 hours of approval. The company was founded a decade ago, and it has since funded more than 20,000 businesses across the United States. It serves all the major industries, from construction to medicine.
\r\nPart of Fora's appeal as a lender is its versatility. On its website, it breaks down its loan products into two main categories: merchant cash advances and small business loans. These two main types of loans function as basic agreements for quick cash and small business financing options. However, Fora offers more specific versions as well, including equipment financing, SBA loans, inventory loans and bridge financing. This makes Fora a viable solution for a wide variety of small business expenses.
\r\nYou can use Fora's basic small business loan for nearly any business expense, including marketing, covering payroll, expanding the business, managing cash flow, purchasing inventory, issuing renovations, filing taxes and hiring new workers. If you don't need a specific type of loan, like equipment financing, this is a compelling capital option compared to the strict requirements of traditional banks.
\r\nMerchant cash advances are best suited for businesses with high credit card sales. Fora can advance funds and then take a percentage of your future credit card sales to repay the loan. This agreement tethers the loan to your future sales, which means you pay a lower amount when sales are down and a higher amount when sales are up.
\r\nThe only basic limitation that emerged in our research on Fora Financial is the recommended $12,000 per month in gross sales. Technically, your business only needs to have been established for six months to qualify, but this monthly benchmark is higher than some small businesses can meet, especially such new ones.
\r\nWe also found some negative customer reviews of the company. These reviews can be difficult to judge, as each situation is specific to the agreement (or lack thereof) between Fora and the small business. What stood out, however, is that Fora didn't address two of its six negative reviews on the Better Business Bureau's site and only addressed some of the negative reviews on Google.
\r\nFora's customer service is among the best of any company we reviewed. We posed as small business owners to speak with a Fora sales representative. The representative was polite and able to handle our wide range of questions, which included general loan topics and questions specific to Fora. If we asked a question he felt he couldn't answer comprehensively, he was willing to direct us to other specialists who could.
\r\nAt no point did the representative push us to fill out an application or provide information about our business, nor did he try to make a sale. He was genuinely interested in helping us understand the various aspects of the Fora underwriting process and what we would need to qualify. Fora didn't even press us for more contact information. The entire experience was relaxed and informative, and we left the conversation knowing more about Fora's process and what it looks for from small businesses.
\r\nFora also has a good online reputation. As of May 2020, the Better Business Bureau accredits this business and scores it with an A+. It has had four complaints closed in the past three years, though, and it scores 2 out of 5 stars on seven customer reviews. On Google, the company has 3.3 out of 5 stars. There are more than 121 Google reviews attesting to Fora's quality as a company and lender. Fora took the time to respond to some of these reviews, apologizing for negative experiences and working with customers to resolve issues. It also thanked customers for positive reviews.
\r\nSeveral other review websites provide a look into Fora's customer service aspects. This wealth of feedback gives potential customers a good idea of what it would be like to partner with Fora on a small business loan.
\r\nEditor's note: Need a loan for your business? Fill out the below questionnaire to have our vendor partners contact you with free information.
SBG Funding offers several different funding options for small businesses like standard loans, business lines of credit, equipment financing and invoice financing. SBG provides quick funding options, favorable loan terms and no additional fees, which is why it is our pick as the best alternative lender for working capital loans.
\r\n\r\n
To view all of our recommendations for small business financing, visit our best picks page.
\r\nSBG Funding breaks down its pricing and terms based on which type of loan you're applying for. The small business loan terms and pricing is a standard offering for working capital loans. Business owners can get funding up to $1 million at rates ranging between 5-35%.
\r\nDepending on your financial situation, you may pay a higher rate. However, these rates are significantly lower than other lenders we evaluated. LoanMe, for example, provides loans with rates up to 149%.
\r\nSBG Funding provides flexible repayment options and varying terms that are ideal for small businesses. Companies can pay off their loan on a weekly or monthly basis. If you want to pay off your loan early, SBG Funding doesn't charge prepayment penalties.
\r\nWhile we evaluated SBG Funding's small business loan package, this lender offers other types of loans. Business owners can get a line of credit for up to $150,000 and terms between six and 18 months. Rates vary, starting at 5.99% and go up to 18.99%. You can increase your line of credit every 60 days.
\r\nThe invoice financing option may also be compelling for some small business owners. Businesses can get an advance on 85-90% of outstanding invoices. The rates and approval process are based on financial stability and annual revenue numbers. While these are two compelling options, the small business loan package – and its potential to be used for working capital – is what sets this company apart as a best pick.
\r\nIn addition to favorable pricing and terms, the application process is quick, and the overall qualifications are ideal for new businesses. Here's more about the requirements and terms and conditions with SBG Funding.
\r\nYou can apply for a loan with SBG Funding by filling out an application online or over the phone. The application is no obligation, and it's a great way to see how much money your business can qualify for.
\r\nYou can submit basic contact information to get more information, or you can start filling out SBG Funding's online application. SBG Funding's application is more involved than some of the other online lenders we reviewed. You'll need to provide your full name, email address, date of birth, federal tax ID, the type of legal entity your business is, industry, state, phone number, email address and business address.
\r\nYou'll then upload further documentation and financial information, such as your annual business revenue, average daily bank balance, monthly credit card sales, the intended use of funds and how much money you're requesting. SBG Funding will also want basic business location information, like the landlord's name, phone number and monthly rent. You'll have to provide documentation to verify some of this information (see \"Special Documentation\" below).
\r\nSBG Funding has some of the most flexible loan lengths of any company we reviewed. You can elect for a short or longer-term loan depending on what works best for your business. The terms range from six months to five years, depending on your agreement. This level of flexibility from SBG means it can support your needs as a business owner.
\r\nYou can qualify for up to $1,000,000. SBG Funding states that to be considered for a loan, you must be in business, at a minimum, of six months, have a credit score of 500 or greater and have over $150,000 in annual revenue.
\r\nYour interest rate will vary depending on your financial situation, and qualifications vary based on the type of loan you're applying for. The above requirements are just for SBG Funding's small business loan; if you're interested in one of its other loan products – line of credit, invoice financing, etc. – other requirements may apply.
\r\nSBG Funding loans are unsecured, which means you do not need to put up collateral to secure the loan. Some businesses will place a lien on business assets, or \"hold\" those assets as collateral in case you default on the loan. With SBG Funding's unsecured loans, you won't have to risk your personal assets when you enter into a loan agreement.
\r\nIt takes up to 24 hours to get approved once you apply. Once you've been approved, you can expect funding within 12 to 48 hours. This is a quick turnaround time, especially for the loan amounts SBG Funding advertises.
\r\nAccording to its website, SBG Funding requires three months of bank statements to verify the financial stability of your business. In addition to basic financial information, SBG will conduct a credit check to verify that your score is above 500.
\r\nThese are the two main documentation requirements outlined by SBG. However, lenders often need to see other information as well. For example, SBG requires some tax information on its one-page loan application, although it doesn't specify whether you need to submit tax returns.
\r\nBased on your business's financial situation, it's best to talk with an SBG representative to find out what information you should have ready once you apply. Having important documentation ready, like bank statements, government-issued I.D., tax returns or some proof of business ownership, is a good way to speed the loan process along.
\r\nSBG's terms and requirements make it a good option for business owners seeking working capital or traditional loans. Working capital loans are short-term loans small businesses can use to cover operational costs, expand the business or invest in marketing. They are similar to standard small business loans, but their short terms make them ideal for businesses looking to cover costs in a pinch, as opposed to committing to a long-term repayment plan.
\r\nSBG funding doesn't provide individual loans; instead, loans are classified into four types of financing. The overall qualifications differ slightly for the four different types of loans the company offers, with small business loan requirements being the most relaxed of any company we reviewed. Businesses can expect to be funded within 12 to 48 hours of being approved, which is faster than other companies we reviewed.
\r\nSBG helps small businesses looking for quick funds to cover business-related expenses, such as operational costs, marketing or advertising, payroll, hiring new workers, purchasing inventory, expanding the business, purchasing new equipment, acquiring another company or refinancing other debts.
\r\nSBG Funding requests quite a bit of information from applying business owners, such as their federal tax ID, business's legal entity type, business's yearly revenue, average daily bank balance and monthly credit card sales. SBG also requires businesses to have $10,000 in monthly revenue to qualify, which can be a bit difficult for small businesses.
\r\nReputation and Customer Service
\r\nSBG Funding is accredited by the BBB with an A+ rating. However, we couldn't find any additional reviews on this company on its BBB profile. Other review websites verify that SBG Funding provides a reliable service offering. It scored over a 9.7 out of 10 on TrustPilot, which curates user reviews of many alternative lenders.
\r\nTo evaluate SBG Funding's customer service, we posed as small business owners and talked with sales representatives to learn more about the company's offering. We asked its representatives questions about SBG's loan products and general questions about business loans. Their reps took the time to thoroughly explain loan terminology and to provide clear and concise answers to our questions in addition to what we could expect from SBG. They were extremely helpful and asked for our contact information so they could send us additional information and tools they thought we would find useful.
\r\nEditor's note: Need a business loan for your business? Fill out the below questionnaire to have our vendor partners contact you with free information.
Noble Funding provides a range of lending options for small businesses and works with various other lenders to pair small businesses with the right funding. It also offers funding through its own programs, which include traditional invoice factoring as well as A/R credit lines for 90-day accounts receivable at $500,000 or more. Based on its customer service and reputation, commitment to finding the right loans for small businesses, and lending experience, Noble Funding earned our pick for best alternative lender for invoice financing in 2020.
\r\n\r\n
To view all our recommendations for small business financing, visit our best picks page.
\r\nThe overall structure of invoice factoring involves a discount rate. Instead of an interest rate, this fee is taken as each invoice is paid off. Depending on what kind of agreement you sign, this rate may fluctuate as invoices remain unpaid, though it will stay in this range.
\r\nBusiness with 90-day receivables over $500,000 can qualify for an A/R credit line. This invoice financing loan product functions like invoice factoring, but it is a line of credit. You borrow a certain amount against your accounts receivable and can draw on that amount as needed. Noble sales representatives described it as a revolving line of credit, meaning that the amount you can draw will fluctuate as your outstanding invoices move up and down. The A/R credit line has a more complex fee and rate structure and is suited for larger businesses.
\r\nOne reason it may be harder to take out this type of loan is because your business needs to have strong, reliable collection and invoicing processes in place. As banks and lenders like Noble evaluate your company, they will assess these processes and your financial documentation to decide if an A/R credit line is right for your business.
\r\nNoble provides and arranges several other types of business loans, including long-term traditional loans, cash advances, unsecured business loans, equipment financing, inventory loans and purchase order financing. Rates and terms vary widely depending on your business's financial situation, but it's good to know that you have other options if you don't qualify for an A/R line of credit or if you find another loan product makes more sense for your business.
\r\nThe long-term loans have starting rates of 9.99% and terms of three to five years. Fast cash business loans can be granted for up to $2 million and issued in just two or three days. The variety of loan products makes Noble a good alternative lender for small business owners.
\r\nNoble Funding has many standout aspects. We looked at its specifics in each of these areas.
\r\nNoble's loan process starts when you contact the company for a quote. A Noble sales representative analyzes your business's financial history and establishes an overall offer. Depending on what type of loan you decide on, Noble will match you with a bank and facilitate the loan process. You'll likely have to provide basic business information and financial documentation that proves you own the business and have the income required for a loan. Once you get an initial quote, you'll be able to formally accept the proposal and continue with the loan process.
\r\nThe terms on invoice financing aren't like those of traditional business loans. Instead of you paying off principal and interest for a set amount of time, the term extends until the factoring or line of credit finishes. In other words, there's generally no defined term. You'll have to pay back your loan as money comes in from the outstanding invoices.
\r\nNoble can work with you to get the right loan for your business's size – whether that's invoice financing or another type of loan that Noble can facilitate or offer. There are two baseline qualifications to get invoice financing from Noble: Your unpaid invoices must be at least 90 days old, and they must total at least $500,000. From here, your business's financial history will determine the overall rate on the line of credit.
\r\nFor invoice factoring, Noble can work with just about any size of business. Noble representatives told us that personal credit scores don't factor heavily into the decision. The one major issue that could prevent a business from obtaining a loan is if a lien has been placed on its assets. However, banks often look at your clients' financial operations and credit history through a third-party credit check, allowing them to assess your customers' financial stability and reliability (which, with invoice factoring, translates to your ability to repay the loan).
\r\nNoble said that if you have some customers with rocky credit history, banks may not finance those customers' invoices, but you can still get funding on your other customers.
\r\nFor invoice factoring, your accounts receivable function as collateral. Banks will also place a UCC-1 filing on some of your corporate assets to secure the loan for the creditor. You won't have to put up personal assets to get an invoice financing loan with Noble; the UCC-1 filing serves as collateral in the event you default on the loan. This filing can be placed either on certain assets or as a blanket lien.
\r\nOnce you've been approved, your payment could be issued in as little as two or three days. The overall process should take under a week, depending on how much you're asking for and your business's financial history.
\r\nFor invoice financing loans, you'll have to provide documentation to verify that you're a majority holder in the business and that your business can financially support the loan.
\r\nIn general, it's a good idea to have all your financial documentation – including copies of your photo ID, business address verification and financial statements – ready before you talk to a bank. If you have questions about the information you'll need to provide, your Noble representative can set you on the right track.
\r\nNoble Funding has a compelling offer. It provides a range of suitable loan options and manageable qualifications for small businesses.
\r\nInvoice financing is ideal for small businesses with large outstanding invoices. Noble can help you get funds upfront so you can better manage your cash flow and invest in your business's growth. It will partner you with a bank to get you up to an 85% advance on your outstanding invoices. Some industries, like trucking, qualify for a 90% advance.
\r\nNoble's invoice financing functions as a line of credit, so you can draw on your outstanding invoices and use the cash as you need it, such as for marketing or advertising, hiring a new employee, covering payroll, expanding your business, acquiring another business, buying new equipment or business materials, or managing your cash flow. Noble also provides long-term loans and various other financing options for small businesses.
\r\nNoble Funding doesn’t have many disadvantages, but for business owners looking to qualify for a short term bridge loan, they need to have at least a 51% of ownership share, which could be a lot for some business owners.
\r\nReputation and Customer Service
\r\nNoble Funding is ranked as an A+ business with the Better Business Bureau. There weren't any individual reviews of the company on the site when we checked, but we found good reviews of the company on various other websites.
\r\nWe were impressed with Noble's customer service. To evaluate its support, we posed as a small business owner and spoke with several company representatives. In all instances, Noble's sales team gave us the answers we needed, even pointing us to other lenders and types of loans that made more sense for our business. The representatives were friendly, and at no point did they try to make us sign an agreement or convince us to take on a loan that wasn't ideal for our business. They explained everything thoroughly and were willing to follow up with us as needed.
\r\nBased on our hypothetical business's finances, Noble representatives suggested invoice financing. One element that impressed us is that representatives made it clear that they not only wanted to help us find the appropriate type of financing, but they wanted to match us with a loan that would grow with our business. They provided email contact information so we could follow up when our business was ready. They offered to answer any questions at any time, by either phone or email.
\r\nEditor's note: Need a loan for your business? Fill out the below questionnaire to have our vendor partners contact you with free information.
Balboa Capital is a good short-term loan option for small businesses because it offers $5,000 to $250,000 for terms of 3-18 months. Thanks to Balboa's commitment to working with small businesses, simple payback terms, lack of upfront costs and quality customer support, it has earned our pick for the best short-term loan option.
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To view all our recommendations for small business financing, visit our best picks page.
\r\nBalboa Capital provides funding up to $250,000 for small businesses. Individual rates vary widely based on your financial situation. For small business term loans, expect terms of 3-24 months. This provides decent flexibility for small business owners, unless you want a long-term loan. While 24 months is longer than most short-term lenders offer, it's still a short term for payback; you'll have to look elsewhere if you want to pay back your loan over three years or more.
\r\nTo get individual rates for a Balboa Capital loan, you'll have to contact the company and go over your business's financial information. The payment structure also depends on the type of loan you apply for. We called Balboa to get an overview of the basic small business loan, but we had trouble getting in touch with the company. Balboa does provide FAQs pages for its loans, which have a lot of relevant information for small business owners.
\r\nThese loans are unsecured, meaning you don't have to put up specific personal or business assets. You likely will have to sign a personal guarantee to get a loan, but Balboa doesn't have a lot of details about this process on its website. If you're concerned about collateral and signing a personal guarantee, it's a good idea to ask your loan specialist about it upfront when you call for a quote.
\r\nFor cash advances, you'll have access to something between $5,000 and $250,000. Terms range from three to 18 months, making this an even shorter-term option than the small business term loans. These loans are also unsecured, but they may require a personal guarantee. Overall, Balboa's pricing and terms are on par with other lenders in the industry.
\r\nWith Balboa, you can enjoy a quick lending process and relaxed qualification criteria from a company with a solid lending reputation. Here's what it offers or requires in these key areas.
\r\nBalboa's loan process is consistent with industry standards. You begin by filling out a basic application that asks for the name and location of your business, how long you've been in business, your email address, and your business phone number. You'll also have to provide basic financial information, like your business's annual revenue.
\r\nFrom here, you'll have to provide your personal information, like name, address, Social Security number and ownership percentage. The company will then check your credit score. Balboa has a quick preapproval process, and once you've been preapproved, you can work with a loan specialist to nail down a concrete agreement. You may be able to get approved and funded within a few days, depending on your individual loan process.
\r\nBalboa's minimum loan term is three months. For the basic small business loan, expect terms between three and 24 months. For business cash advances, loans range from three to 18 months.
\r\nThe basic criteria for a small business loan with Balboa is that your company must have been in business for at least a year and have annual revenue of over $300,000. The company will also look at your credit score, but it says it considers all credit scores, and it even has a separate offering for bad-credit loans.
\r\nQualifications for its other loan products vary. For the business cash advance, for example, your business must be established for at least a year and have $10,000 in monthly credit and debit card deposits.
\r\nBoth the small business term loan and the business cash advance are unsecured business loans. While Balboa doesn't require specific collateral, it may require a personal guarantee. This is a legally binding statement that you personally will pay back the loan if your business defaults on it. If you're concerned about the concrete collateral requirements with Balboa, it's good to ask your loan representative upfront.
\r\nBalboa doesn't outline any specific documentation requirements on its website, but it will likely require financial statements and other financial documentation. This allows it to determine your income, how long your business has been established and what type of loan your business can handle. Much like collateral, financial documentation is a good thing to ask your loan representative about upfront. Financial statements, tax returns and a business plan are all standard requests from alternative lenders.
\r\nEditor's note: Need a loan for your business? Fill out the below questionnaire to have our vendor partners contact you with free information.
Balboa's wide range of loan products make it a good option for small businesses. The standard small business loan is great for expanding your business, increasing cash flow, covering payroll, paying suppliers or business taxes, or investing in marketing. Balboa provides equipment financing as well, such as for software or machinery. The cash advances are good for businesses looking to better manage cash flow and increase liquidity within the organization.
\r\nThe company has a good reputation, and its loans have favorable rates and terms. It's committed to working with small businesses to find the loans they need. It has lenient qualifications and can ensure you get the funding you need. There aren't any upfront costs or hidden fees, the online application is simple, and no collateral is necessary.
\r\nWhile Balboa doesn't list specific rates for its loans, it's easy to gauge the loan structure, terms and amounts. It provides an online loan calculator to give you an understanding of what your monthly payments will be like for your loan. The overall loan process provides an easy, direct way to get quick business funding. Balboa has no restrictions on what your business can use these loans for, and it has few restrictions on which organization types qualify for a loan.
\r\nBalboa has a lot to offer applicants, but small business owners should know that this lender charges an origination fee. Also, to qualify for a small business loan, you need to be in business for at least one year, which can push out young startups seeking funding.
\r\nReputation and Customer Service
\r\nBalboa has a strong online reputation, with an A+ accreditation from the Better Business Bureau. It has 1 out of 5 stars in BBB customer reviews, though, with more than 40 complaints. The business worked through each complaint and helped the customer reach a resolution. Also, a BBB score may not reflect a company's actual quality of service – Balboa scored highly on other review websites, for instance.
\r\nPosing as small business owners, we filled out a contact form and called Balboa to learn more about its service. Although that procedure didn't work well and we ended up not getting in contact with the company that way, we then called its phone line directly and spoke with a representative. They were very patient and asked us many questions so they could fully understand our business and its needs. The representative was also direct and upfront about what would be our best options and seemed committed to helping us understand what Balboa Capital offers.
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Crest Capital provides flexible equipment financing options for small businesses looking to buy or lease equipment, and funding ranges from $5,000 to over $500,000. While Crest Capital only provides equipment financing, businesses that partner with Crest can choose from six different loan types with no additional fees. For these reasons, Crest Capital earns our pick as the best equipment financier of 2020.
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To view all our recommendations for small business financing, visit our best picks page.
\r\nBecause Crest is an equipment financier, the terms and rates depend largely on your specific loan situation. The first thing to keep in mind is that pricing and terms change when you borrow more than $250,000. This amount is a benchmark to separate quick loans from larger, more complex loans. For example, you only have to submit a simple online application to get financing under $250,000.
\r\nBased on the amount you are looking for, terms range from 24 to 84 months. Individual rates vary widely by the equipment or vehicle and your business's financial history.
\r\nCrest allows you to choose between equipment loans and leases. The difference between the two has to do with the structure of the agreement and whether you end up owning the vehicle at the end of the term. There are several different types of agreement:
\r\nIn addition to the many different agreement structures, Crest provides some other helpful plan and pricing features. The master agreement, for example, can function as a line of credit for future equipment purchases. Step-up plans allow you to schedule lower payments earlier on in the term agreement. A seasonal plan is an option where seasonal businesses don't have to pay during slow months. Deferred plans allow you to defer any payment for up to six months after the agreement is signed.
\r\nShould you decide to pay the full amount of the loan upfront, there are no prepayment penalties. In fact, you may qualify for a discount on the remaining interest. All these different plans and agreement structures makes Crest one of the most flexible alternative lenders we reviewed.
\r\nThe overall loan process may take a bit longer than it would with some other lenders we reviewed, but Crest Capital provides larger funding amounts than some of those companies. Crest wants to ensure that your business qualifies for and can pay back the loan it will issue.
\r\nYou can complete an application with Crest Capital online, over the phone, or by printing it out and faxing it to the company. The company won't ask for financial statements unless you request over $250,000, but make sure you have your business name, website, address, phone number, email, Social Security number, bank name, account number and bank phone number on hand. You'll also have to provide information on the equipment seller you're partnering with, including the name, phone number, estimated cost of equipment and the equipment's condition.
\r\nDepending on how much money you ask for, your term will be 24 to 84 months. This is a fairly wide range – with some lenders, you'll only find short-term or long-term options.
\r\nTo qualify for a loan with Crest, you must have been in business for two years and have a credit score of at least 650. You can't have any delinquent payments or a history of nonpayment to other lenders. You'll have to provide a written overview of your organization, a description of the equipment's purpose, your last two year-end financial statements, tax returns for the last two years, current financial statements, and a list of your current loans or leases. Crest will conduct a soft credit inquiry, so your credit score won't be affected by applying for a loan with the company. This is a lot of documentation and requirements compared to some competitors, but it verifies Crest as a legitimate, reputable alternative lending company.
\r\nCrest's loans are secured by the equipment, vehicles or software being financed. No other collateral is necessary.
\r\nAfter you submit your application, you'll receive a decision within hours. After you've been approved, you can complete the deal within a few days. Having all your documentation ready can speed up the process.
\r\nCrest requires more documentation than any lender we reviewed. For loans over $250,000, the company wants to look at your financial statements, your tax returns, a list of your loans and leases, a written overview of your business, and a description of how you'll use the equipment.
\r\nThese may seem like strict qualifications, but it shows that Crest is a reputable company looking to provide loans to businesses that meet high standards. By providing this information, you can partner with a company that has some of the most flexible loan agreement terms and plans of any lender we reviewed. The level of documentation you need to provide will vary by loan size.
\r\nCrest provides businesses of all types with quick and easy funding options. It has reasonable loan qualifications and can work with your company to make sure you get the funding you need. There are several different types of agreements to choose from, like the 10% purchase option and the $1 purchase agreement. This wide variety of loan types separates Crest Capital from competitors.
\r\nCrest is a good alternative financier for investing in new construction equipment, vehicles or business software. It has a quick application and approval process.
\r\nOne drawback we found in Crest's service is the amount of documentation it requires, though this will depend on the amount you apply for. Many lenders only require some simple financial data. This is a minor downside when you consider the flexibility that Crest provides in its agreements, though.
\r\nCrest also has very high requirements for credit score – at least 700 – and time in business. These standards mean it doesn't work with startup companies.
\r\nCrest Capital is a reputable company that was established almost 30 years ago. It works mainly with small businesses that have 5-75 employees, and it has a good online reputation. As of May 2020, it had an A+ with the Better Business Bureau and 5 out of 5 stars in customer ratings. Crest is one of the only companies in our review with this high of a rating on the BBB site. It has over 70 positive reviews, with no negative reviews or complaints. Other review websites reflect this level of customer satisfaction.
\r\nWhen we called Crest sales agents, they provided us with all the information we needed. The representatives we spoke to were friendly and concise. They took the time to understand what our company needed and gave us several options. They let us ask all the questions we wanted, were extremely patient, and didn't push us to provide information on our business or sign up for the service. After the call, the representative followed up with us by emailing us a company brochure. This level of attention was nearly unmatched in our review process.
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Editor's note: Need a loan for your business? Fill out the below questionnaire to have our vendor partners contact you with free information.
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