Category Archives: Business Loans

Hedging is a strategy often employed by investors and traders. Simply put, it works by investing in one entity to offset or “hedge” the risk of the other. For example, if an investor invests in a petrochemical company, they may offset the risk by additionally investing in a natural gas company which often trends in the opposite pattern of petrochemicals.

Offsetting Risks can be very useful

The strategy or practice of offsetting risks is indeed a very helpful one in many situations. Especially for a business that operated within industries that have higher risks involved, hedging can indeed be a tool that reduces the risks without always impairing the potential for profits.

How Can Hedging Work in Business?

There are certain ways in which businesses can use hedging. Some of these may already be used by businesses without being conscious of it being a hedging strategy. Sound hedging strategies include:

1. Hedging through investments: Investing in other businesses that are likely to grow at a time when de-growth hits a business or investing in industries that often see growth when the industry of one’s own business faces challenging times.
2. Hedging against raw material price changes: If certain commodities or input materials that a business uses in significant amounts, the business may hedge by investing in other materials of value, that tend to fluctuate in the opposite direction. For example, a company that uses precious metals can hedge on its raw material prices by investing in base metals.
3. Locking in prices: Options, futures, and other such instruments of locking in prices are often a way to reduce risk. Hedging can be implemented by locking in prices of various periods of deliveries.
4. Hedging services and products: Hedging services and products is something many small and mid-sized businesses tend to do. It’s simply done by offering services and products that tend to have roughly opposing trends. For example, a restaurant in a snowy region may hedge risks by offering home deliveries, so that on a snowy day, home deliveries can be focused upon while on a sunny day, walk-in customers may be the ideal customer.

Diversification is a Form of Hedging

The most common way in which businesses hedge risk is through diversification – catering to multiple sectors, industries, and a wide variety of customers, through a broader range of products and services is essentially a way to hedge risks.

Hedging Also Comes with its Risks

Like with any business strategy, there are risks associated with hedging even though it’s intended towards offsetting risk.

1. Hedging must only be seen as a long-term strategy. It’s less likely to give short-term benefits.
2. When you reduce risk, you often reduce the potential profits too. The risk then is to lose out on maximum potential.
3. Hedging cannot guarantee less risk and is not fool-proof.

Financing Your Strategy

Hedging in itself is naturally a cost factor. If your business needs funds for hedging, a loan from Business Capital USA can help. Simply submit the required details and if your business meets our simple qualification terms, a loan offer shall be worked upon by our team.

The hotel industry has been through much turmoil and with the markets re-opening, some have seen a strong return of business, while many haven’t been so fortunate. The market is open again but the dynamics are indeed very different today and this is something virtually all businesses have to live with and must adapt to,in order to sustain and grow.

This article discusses six ideas which are seen helping hotels across the world get back on track. These ideas are practical, effective and while some might be seen as simple common sense, being conscious of them and implementing them is probably what is more important than the ideas themselves.

1. Enhance Flexibility

Unless your hotel is seeing high occupancy rates, providing flexibility in terms of check-in and check-out timings, length of stay, stay inclusions, etc. is one of the ways in which you can increase the customer interest in your hotel. And with enhanced flexibility, it is additionally important to ensure that all flexibility is features on all distribution channels that can enable your hotel to take advantage of such features.

2. Refresh Your Online Marketing Strategy

In the post-pandemic era, online marketing that was already very effective, has simply eclipsed all other media of marketing. The world of online marketing evolves very rapidly and what worked then – before all the turmoil – might simply not work again.

It is hence critical to understand the new dynamics of the current online marketing channels and refresh your online marketing strategy in accordance to what works now.

3. Target a New Audience

Some of the popular ways in which hotels target new audiences include:

• Adding new services and features that attract new audiences
• Using targeted advertisements
• Revising tariffs
• Repositioning your brand
• Using new marketing strategies
• Using different channels of distribution

4. Add Trending Services

In today’s world, trend is a friend as close as it’s never been before. Thanks to social media and search engines, trends influence the decisions of many buyers very significantly. Understanding what’s trending within your relevant and potential audiences can be an effective way to cater to those audiences when combined to the right marketing strategies.

5. Consider offering Package Deals

As a hotel, it’s likely that you already offer packages which help you with suggestive selling, upselling and cross-selling products and services. If you’re not already offering packages, it is probably worth considering to do so and if you’re already offering them, it could be a good idea to revisit what you offer and how you target the potential customers for what you offer.

6. Partner Up

Partnering up with various other business can help you reach out to an entirely new audiences. Partnerships can be made with credit card providers, banks, airlines, nightclubs, travel agencies, magazine publishers, and so on. Getting into such partnership deals may require some initial efforts and the right calculations with the right deals and right partnership deals often work out to be meaningful and useful, leading to mutual benefit.

Financing the Business Ideas

We’ve discussed six effective ideas and there’s no doubt that there could be an infinite other useful ideas too. But if funds are what you need in order to implement any such ideas in your hotel business, we invite you to get in touch with us or directly apply for a business loan from us at Business Capital USA. Once in touch with you, our team of business financing experts will work with you towards a suitable loan offer that could help your business get back on track.

Starting a business can be challenging when you have a great credit performance. If you however have a bad credit performance or poor credit scores, the challenge can be exponentially bigger.

Why? Well, a bad credit performance can lead to multiple issues, some of which may include:

• Difficulty in finding funding options
• Create supply and utility problems
• Negate options of credit facilities from good suppliers and service providers
• Increase real estate rentals or reduce the number of options available to you
• In some situations, bad credit may just be the reason you may not be able to start your business at all

Here, we discuss some practical tips that may help you start a business while you suffer from bad credit scores.

Verify Your Credit Reports

One of the first things you should do is to verify how authentic and complete your credit reports are. It is not always the case that your credit reports are flawless. Sometimes, one or more wrong or missed entries do feature and these may be enough to solve certain credit problems you face.

If there are any such issues, you can write to the respective authority and supply evidence for your case. Typically, such issues get resolved in a few days’ time.

Consider Credit Counselling

Improving one’s credit performance and healing bad credit scores can open a lot of doors and in some situations, be an almost invaluable decision towards your business health. Although good credit counselling may get expensive and working towards healing bad credit scores may be even more so, it might all just be worth the expenditure.

Formulate a Business Plan

When you suffer from a bad credit performance, any business plan made should be designed being mindful of this. This may require you to find those rental options, utility options, suppliers, funding services, etc. that accept working with individual business owners with bad credit scores.

Since many of the best options may not be available to you, you might just have to start with what’s available to you and then either keep your business finances absolutely separated from your personal finances or work strategically towards improving your credit score.

Establish an Initial Source of Funding

No matter what your credit performance may be like, you are going to need a source of funds to start your business. Since most loan options for start-ups and new businesses may not be available to bad credit borrowers, the typical funding options available would include:

• Personal savings
• Borrowing money from friends or family
• Crowd funding
• Loans against assets

Identify Valuable Assets

In many cases, until a business is operational and established to an extent, loans secured against assets may be the only option available to bad credit borrowers. For being able to secure such a loan, business owners would have to identify valuable assets and ascertain their values. This task can be a part of the business planning stage and it can in fact impact the business plan to a great extent in certain situations.

Consider Easy Alternative Business Loans

Once your business is established to an extent, you may qualify for a loan from an alternative business lender. At Business Capital USA, we make business loans easily accessible to borrowers whose business has at least 6 months in operation with a steady monthly cash flow or at least $5000 in monthly revenue. Qualifying for our loans does not depend upon your credit history or scores, so even with a poor credit score, you can apply for the loan as long as your business meets the qualification requirements.

Apply for a Loan with Business Capital USA

We have made the loan application process lean and simple, so that your business can benefit from a quick and convenient funding option. Just filling in the online loan application and submitting the necessary details, shall help us understand the basics of your business and get in touch with you, to work towards a suitable loan offer for you.

No matter where your business is located and what industries it may serve, today, it is safe to say that much has changed in the global, national and every local business environment lately. Some changes might be temporary while many may have lasting or permanent effects. Marketing is one of the important aspects of running most businesses and good marketing includes strategies that help evolving a business in ways that can help it better suit the times, no matter what they may bring to the table.

While recent times have proven the importance of virtually everything digital, digital marketing probably tops the list in many ways, for many businesses, so here we put out some basic outlines which any business can benefit from, while planning to invest loaned funds towards digital marketing.

It often Takes Money to Make Money

At least when it comes to marketing, this statement indeed is largely true. With regards to marketing, it does indeed take money to make money in almost all cases. The right investments in strong and creative marketing campaigns, teams, etc. can indeed bring valuable returns to businesses.

However, getting it all right is where one’s focus must be. For example, spending loads of funds in a newspaper ad for a rock music album is very less likely to help the seller grow. A digital ad with targeting done to the wrong audience, shall also have much the same result. What to invest in, how much to invest, and how to best utilize funds in marketing are questions that can make all the difference. So, while it does take money to make money here, spending money on just anything and everything that sounds like marketing is an easy way to lose all the money!

For Small Businesses, Nothing Beats Digital Marketing

When you have a limited amount of funds for marketing at your disposal, digital marketing is exactly the route you might wish to take. Why? Well, reaching the right audience and measuring how your marketing is working so you can keep refining it and making it evolve with time is best done with digital marketing.

Whether you do your own marketing, have your own team or choose to work with consultants, digital marketing is a constantly evolving environment that provides unmatched flexibility, data, targeting, appeal and much more. Getting it all right may take some time, but once you start getting it right, you can unlock a power that’s simply unmatched by other forms of marketing.

Keeping Up is the Name of the Game

The digital marketing environment is constantly evolving at a pace like none other. New features, policies, limitations, options, platforms and a lot more change virtually on a day-to-day basis. Any business can benefit by considering the trend as a friend and use it to their advantage to grow. And not staying up-to-date with trends can be an easy way to get obsolete and lose out on many of the most cost-effective marketing tools that you could have.

Grow Your Profits Larger than your Loan’s Interest

When you take a loan and invest the funds towards almost any expense item, what you want to ensure is that the absolute growth in your profits that are considered as a result of the expenditure, are greater than the funds that you have to end up returning in the form of the loan repayment, which include the loan amount and any interest and fees associated with it.

The great thing is that it’s much easier to estimate what returns a digital marketing effort brings, versus any other form of marketing. And what’s even better, is that measuring and understanding the outcome of your business’ digital marketing efforts and continuously working towards improvement and enhancement, is in fact largely considered by experts, as the best way to increase the effectiveness of your digital marketing.

Secure a Business Loan for Your Digital Marketing Plans

Digital marketing is considered for many reasons, a great investment for businesses within most industries. If you’re looking for a quick business loan that you can invest towards your digital marketing, Business Capital USA is here for you. We are an alternative business lender, offering flexible business loans which your business can choose to use towards the funding of digital marketing. Apply with us and a business loan can be yours within as little as 2 business days!

Less than a couple of years ago, if one were to narrate a story like what we’ve all been through in the recent past, it would ridicule the listeners, who’d simply dismiss it all as if it were an impossible fantasy story. Sitting where we are today, our reality is very different from what most of us could’ve imagined.

While individual lives have taken an unexpected turn, businesses have seen turmoil like never before. Yes, exceptions do exist and some businesses have benefited greatly out of every disaster that came our way, the vast majority of the businesses are yet to see numbers even 80% as good as pre-COVID-19 times. Some businesses still have their doors shut while others haven’t seen a profit in over a year.

We at Business Capital USA are an alternate business lender offering a reliable solution to eligible businesses that seek funding, even if they’re rejected by traditional loan lenders and disaster loan schemes.

Why Other Disaster Loans are Rejecting Applications

Some disaster financing plans and loans have highly subsidized offers while some are simply used as marketing tools by lenders. Either ways, a lot of applications for loans are pouring in, while the lending agencies/bodies are not in a position to meet the demand – there exists a huge gap in the supply and demand. This is probably the primary reason why many disaster loan applicants are facing rejection.

Beside this, most such loans require much paperwork and some also require concrete evidence to show that the business is affected negatively by the various incidences that have occurred. The number of formalities involved, makes the process cumbersome and also reduces the chances of the loan request being approved for some of the businesses that apply for it. Some business owners also back-out mid-way during an application, owing to the complicated application process.

Traditional Loans have a low Approval Rate

Traditional lenders like banks typically approve 3 out of 5 loan applications that are complete. Of course, the intimidating paperwork doesn’t encourage every applicant to complete the loan application.

Despite these low approval rates of loans, these traditional lenders see a fairly huge demand and the reasons for that are known to be affordability and reliability. Since alternate business lenders tend have a higher risk associated with lending, the loans tend to be more expensive. At the same time, traditional lenders are typically large banks and other institutional lenders. Their scale and prominence makes them seem fairly reliable.

Business Capital USA provides Quick Alternate Loans ideal for a Business Hit by a Disaster

We at Business Capital USA are a direct lender of alternate business loans. We are have built our strong reputation in the market through years of work and dedication towards our customers. In these troubling times, we provide a quick solution for businesses hit by disaster and at discounted tariffs.

If your business is in need of funds that can help you sail through these tough times, look no further as we are maintaining a high rate of approval of loans and are able to complete the approval and transaction of loans in as less as 2 business days, despite a high volume of demand.

When Your Business Needs a Reliable Loan for an Emergency Requirement

A loan is only as reliable as its approval rate. Even in these challenging times, we are able to maintain an approval rate beyond 89%, which is amongst the highest in the industry. This makes us one of the most reliable sources of business loans in the market. Hence, if your business is in an emergency need of funds, Business Capital USA is probably the best place to get help.

Being quick and reliable, makes our business loans ideal for emergency requirements and if you’d like to take the next step towards the loan, you can simply start the process and apply for the funding. Most of the process is online and simply filling in the application doesn’t bind you to a loan or cost you anything. It just helps us with basic information to do a small verification and get in touch with you for working towards a loan to fulfil the needs of your business.