Across the UK, lenders have approved nearly £27.5bn in government backed loans, through bounce back and business interruption loans, to more than 650,000 businesses affected by COVID-19.

This is an astronomical effort by all involved to keep businesses afloat, but it’s not been quick enough for many ailing businesses. The total amount of business loans available amounts to £330 billion, and businesses should be receiving these funds at a much faster pace then we currently are. Matt Cockayne, Chief Financial Officer at Yapily, explores how open banking may be the solution to these businesses' issues.

It’s clear lending will be needed throughout the year to help these businesses stay afloat as they reopen. And while lenders could be a lifeline for SMEs over the coming months, it’s thought that many believe that future lending or loans are too high risk, or that they just can’t tell what the future holds to lend to businesses. This is likely to cause further frustration for business owners who, until coronavirus happened, ran successful, growing businesses.

This has created a conundrum for the UK business landscape. As we emerge from the initial COVID-19 fallout, businesses need financial support to stay open and to ensure the economy bounces back, but lenders are either too slow or too wary of lending too much to businesses who are facing huge pressures to avoid going bust. To solve this problem, we have to look at new ways of accessing and sharing financial information to make quicker and better decisions. And in open banking, I believe we have a solution that answers these problems and more.

Speed, security and agility

The initial backlash in response to the government's three loan distribution schemes (BBL, CBIL and CLBIL) has centred around frustrations in the time it took to distribute essential funds. To keep up with this demand, lenders have to make faster decisions. But without the right information about the borrower they can’t make them consistently or fairly.

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It is normally standard for lenders to request three months' worth of financial statements, but through the CBILS scheme, lenders must now request six months. This can slow the process down for businesses, providing an added layer of friction in finding and sharing bank statements, and an added layer of delay with the lender having to review the statements manually. Through open banking, lenders can gain instant access to up-to-date financial information and can retrieve historical data in just seconds.

This means they can quickly onboard customers and determine lending limits, without needing to send documentation such as bank statements, ID or other documents back and forth as you would traditionally. By gaining instant access to bank statements and a secure verified source of income, lenders can quickly analyse credit decisions in real-time, and make better, more informed decisions, which is crucial as we begin to step into the new normal.

Lending in the new normal

Up until now, the government has relied on a panel of lenders - established banks and the likes of Funding Circle - to distribute the schemes. But as the crisis continues, more loans need to be disbursed, presenting an opportunity for smaller lenders to play their part to support SMEs too.

One of the biggest struggles of the schemes has been around lenders being unable to meet the demand for onboarding new customers. Some businesses have reported that it is taking longer than expected to open a new account and receive essential funds. However, if conducted through open banking, these processes could be sped up and enable more lenders to operate and offer their services to UK businesses.

One of the biggest struggles of the schemes has been around lenders being unable to meet the demand for onboarding new customers.

This isn’t just a benefit for lenders in terms of meeting soaring demand, it also means an added layer of trust and greater loan personalisation for customers. Lenders can make fairer and more accurate decisions, based on a customer's financial picture.

Fueling the economy post-pandemic

With lenders able to grant more loans quickly and efficiently through open banking, businesses will have faster access to the much-needed cash required to stimulate the economy; keeping companies running, people in jobs and ensuring spending continues across the country. Lenders will also have the opportunity to monitor the borrowers finances after the loan has been granted, with the borrowers consent of course, to offer continued support and create future offerings if required.

As more businesses across the UK seek government support, the role of lenders will continue to grow in importance. But rather than shut up shop due to the risks at play, they should utilise open banking to make better, informed choices to ensure the economy recovers quickly.

Benjamin Franklin said it best: "If you fail to plan, you are planning to fail.” We all need goals and objectives. Some of these should be ambitious and fanciful. We all have our dream house or dream vacation — even if we know it may never truly come to pass.

But you need some real-world goals grounded in reality. Ultimately, these practical items are what should be populating your “bucket list.” Sure, always keep a few unlikely-to-achieve items in your back pocket. But you want to really focus on the ones that you know you can — and will — tick off.

And don’t procrastinate! Your bucket list is hopefully long and full of great experiences. There’s no time to waste letting them just sit there.

Yes, achieving some things will be more difficult for many people this year for a variety of reasons. But don’t use excuses and instead focus on the other goals that you still can attack. And if you need a little inspiration, set your sights on checking off the following three 2020 bucket list items.

1. Explore Professional Development

For every person, in every line of work, there is always some thing that you know will help you develop in your career. Maybe it’s learning a new skill, like becoming a spreadsheet or data wizard. Maybe it’s improving your communication ability, like mastering public speaking so you can get your ideas heard. Maybe it's finding a mentor who can help you see something that you keep missing. Or maybe it is sitting down and devising a new strategy or process to improve your company that will surely knock the socks off you boss and earn you that promotion. But no matter what it is, get started today.

2. Keep Your Mind on Your Money

We all need to improve our financial literacy, strategy, or discipline in one way or another. It’s time to stop hoping and start doing. Do you keep tapping into your savings for discretionary purchases? Are you failing to put away enough for retirement? Are you throwing away too much on interest payments? Or, God forbid, do you still not have a good budgeting tool that keeps you on task? Perhaps now more than ever, you need to work to get your financial life in order, and you should look at all the financial services tools out there to help you get it done.

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3. Splurge on Something for You

While being financially disciplined is great, that actually isn’t the problem for many people. Some are too stingy and fail to hit their bucket list items out of an overabundance of caution. If that’s you, maybe now is the time to splurge a little. Do so responsibly, but recognize that there are some great prices out there on toys and luxuries that you may have been eyeing for years. Maybe today is the perfect time to buy that RV you have always wanted and do some road trip traveling to dream locations. Along with good deals, you can also find fantastic credit financing options that offer perks and cash back rewards.

Rethinking Your 2020 Bucket List Goals

Achieving your lifelong goals is never easy. That goes double in a year like this. But there are always ways to look at your bucket list from a different angle and start checking off some key boxes no matter what.

It doesn’t have to be all skydiving and flights to Paris. There are other objectives you can pursue even today. Start exploring your professional development goals, work on hitting a key financial benchmark for you, and don’t forget to find creative ways to splurge on yourself — and even travel.

The world may be more complicated than ever — but it’s still your oyster. Even when everything is turned upside down, your life can still be whatever you make it.

For the most part, the blockbuster film 'Back to the Future' was way off with its outlook on what society would look like in 2015; we don’t have flying cars or hoverboards. But Robert Zemeckis might have been onto something with his portrayal of ‘future’ payments. One of the common methods of payment in the film’s futuristic society was made by thumbprints, not a far cry from what many can already do with their smartphones. Ian Bradbury, CTO for Financial Services, Fujitsu UK, explores what the future of payment is being shaped in the real world.

Biometric payments are one part of a wider movement in society away from physical money. Credit and debit cards have been around since the middle of the twentieth century, but over the past decade, there has been a notable decline in the support for cash, with some retailers removing cash payments entirely. And that isn’t necessarily a bad thing.

While cash is important in maintaining the anonymity of payments, there is a lot to dislike about it. It’s easy to lose, steal and damage cash while also being expensive to produce, distribute and store. It is also a known carrier of infectious diseases, something that has been highlighted in the wake of the COVID-19 pandemic. But it is also clear that we cannot move to a cashless society until more is done to ensure the estimated 2.2 million Britons who rely on cash are not left behind.

There are ways that banks can help society transition seamlessly from physical cash to digital cash. Consumers will always adapt to changes in which we store value to trade, so we need to make sure we do it right.

Biometric payments are one part of a wider movement in society away from physical money.

The Digital Dilemma

Many banks are in a delicate position where most consumers now use some form of paperless payment – but not all. Meanwhile, over a third (36%) of consumers in the UK want their bank to be more innovative in their use of technology, showing an appetite amongst the public for more modern services.

But security remains a crucial aspect when considering a cashless society. One reason for cynicism is that going cashless would eliminate the anonymity of physical payments; the free and willing private transfer of value from one individual to another is considered by many to be a basic human right.

And over a quarter (26%) of consumers do not trust traditional banks to keep their data safe – a figure that rises up to a third with challenger banks. Therefore, there is no guarantee that digital-only payments would be universally accepted as there is not a unanimous trust in technology. That is arguably one of the biggest challenges we face in moving to a fully cashless society.

Time to Ditch the Paper

The western world has a historical love affair with plastic cards; they have been around for decades and we are used to them being the main form of cashless payment. But not every citizen is able to apply for a bank card. For example, one of the basic requirements for a bank account is a home address. However, for the homeless population of the UK, that is not possible. Therefore, if not considered, a cashless society could worsen the inequalities that some face.

There are ways to get around this. Some initiatives are being developed so you don’t need a bank account to receive and use digital cash. For example, you can receive a Mastercard prepaid card which you can use anywhere that accepts payments from the company. This eliminates the need for identity checks or registration and is inclusive to those who do not qualify for a bank account. Further investment in those initiatives will be key.

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Offline digital wallets can also store, manage and transfer digital currency while not connected to the internet – which is critical in replacing the ‘off-grid’ functionality of physical cash. Smartphones are often used as offline digital wallets and developing that technology would limit the need for further investment in infrastructure.

It’s also not implausible that ‘smartcards’ – bank cards that use biometric authentication – will become the norm in years to come. They can be designed with a low-cost e-ink display, which requires no power, that can show how much balance the user has. Not only would they enhance security in digital payments, but it would also eliminate the need to register for a bank account.

Seeking Digital Alternatives to Cash 

There are clear challenges in moving to a cashless society. It requires certain investments so that no one loses out. At the same time, it must provide the anonymity that many consider being a basic right.

Yet if you consider measures such as offline digital wallets and smartcards, many of those challenges can be met. The technology needed to go cashless is already available – it now needs to be seamlessly integrated into everyday life.

After weeks of being put under stringent lockdown measures due to the COVID-19 pandemic, people will be bracing for difficult days (or even weeks) ahead even as these measures are gradually lifted.

Even then, people need to make ends meet in one way or another. And while it is difficult to know how and when this crisis will actually end, it is important now more than ever to make good financial decisions.

Let's take a look at a few important tips for how you can keep yourself from going under in these difficult times:

1. Keep a Level Head

The coronavirus, which causes the deadly disease known as COVID-19, has permeated local and international news since it was first detected in China. Now, it has become a crisis that governments are desperately trying to contain.

If you have been following the news lately, chances are you have been on a spending spree for essentials. With quarantine measures in place, many are now finding it hard to stock up on the essentials like toilet paper.

It is easy to be confused with all the information out there regarding the pandemic. If you let your guard down and make unnecessary purchases as a result, you can do yourself a lot of harm.

Whatever happens, it's best to remain calm and follow government advisories. At this point, the best you can do is to prevent the spread of the virus and get updates from trusted news sources. This will help you gain clarity as you figure out what to do with your current resources.

Whatever happens, it's best to remain calm and follow government advisories.

2. Call Up Your Credit Card Company

Having a credit card is convenient, but when you are in the middle of a serious health crisis, you have to do what you can to get by.

Luckily, consumers in the US can breathe a sigh of relief as major credit card providers have agreed to waive payments for March and possibly beyond. All you have to do is to contact the number on the back of your card and ask your bank about how you can get relief.

It’s important to note that providers such as American Express and Capital One have allowed cardholders to skip payments without interest. Other banks such as U.S. Bank and Wells Fargo have also announced that they are offering to waive fees and provide other forms of hardship assistance. Again, you will need to contact your bank and see what they are offering.

3. Use Your Savings

This is a reasonable time to dip into your savings account.

Whether it's a time deposit account, notice accounts or a fixed rate savings account, it would be practical to use this money as a buffer to get you through the entire quarantine period. At any rate, ensure that you can withdraw the amount you need without any penalties.

4. Spend Less by Scaling Down or Discounting

So long as this crisis lasts, it is important to keep your spending to a minimum. This may mean scaling down on non-essential expenses such as streaming subscriptions and luxuries bought online. These are sacrifices you may need to make to keep yourself financially afloat in the next few weeks or until the crisis passes.

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Another way you can slow down the depletion of your hard cash reserves is to make full use of gift cards, loyalty points, and discount vouchers. These will really come in handy if you are going out shopping for groceries.

And considering that this is a national health emergency, you should consider making use of cards that help you pay less for prescription medicine. Check out prescription discount card details for where and how to find the best deals.

5. Leverage Mortgage and Rent Holidays

One good thing right now is that mortgage providers are offering different types of mortgage relief interventions for homeowners who can defer making payments through a 90-day period.

If you are in a difficult situation, it is best to contact your lender and see if you can strike up a forbearance agreement.

If you're renting an apartment, make sure to talk with your landlord to discuss new payment terms and see if you can avoid paying late penalties. Local governments are prohibiting evictions from taking place. This could give significant relief if you have been displaced as a result of the pandemic.

In such extraordinary times, you need to keep your finances from dwindling. This might take simple sacrifices or leveraging government aid efforts. In either case, your financial survival will depend at least partly on the measures you take.

Income Analytics today announces the launch of its tenant income risk indices and benchmarks – a new and unique set of indicators for quantifying tenant income risk using data on over 355 million global companies from leading global provider of business decisioning data and analytics, Dun & Bradstreet.

Income Analytics redefines how the global real estate industry can access, analyse and deploy company credit data on tenants, real estate assets and investment portfolios, enable real estate professionals, investors and lenders to receive ‘real time’ analysis of underlying tenants creditworthiness and, with confidence, appraise anticipated future performance and ultimately likelihood of default.

Income Analytics reports and dashboards incorporate new proprietary analytical tools and scoring (INCAN scores) alongside the existing credit report data including:

• 10-year tenant income risk forecast
• Global tenant scores
• Bond equivalent ratings
• Global corporate family tree

As a global institutional asset class (US$30.2trn¹), real estate requires the same analytical analysis as equities and bonds. As stated by Andrew Baum, Professor of Practice, Said Business School, University of Oxford: “The value of real estate investment is ultimately determined by the level, duration and quality of the rental income paid by your tenants.”

Income Analytics provides a range of tools comprising:

• Tenant credit reports – Identification checks, quality of covenant and probability of default along with the usual company financials;
• Asset level credit reports – Aggregated income stream analysis and assessment of probability of loss; and
• Portfolio Income Manager – A platform to view and monitor the financial health of existing tenant and portfolio income quality 24/7.

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Matthew Richardson, Co-founder and Chief Executive Officer of Income Analytics commented: “At Income Analytics, we have created a truly unique and much needed set of tools and analytics for the global commercial real estate industry. No industry specific product for investors and lenders to assess and monitor the changing quality of their tenant income over time currently exists. More worrying is that very little has changed since the sub-prime crisis of 2008 and the recent global crisis caused by Coronavirus makes the need to access accurate and current income data more important than ever before. Our aim is to provide the real estate industry with a critical tool in which to assist investment decisions and investor reporting.”

Maxwell James, Chairman of Income Analytics stated: “Income Analytics has created a new and world class set of indices and benchmarks for the commercial real estate market. The insight that these measures bring is already resulting in better informed investment decisions by our existing clients. The application of these analytical methods offers the potential for investors and lenders to greatly enhance transparency and risk appraisal of portfolios or loan books at this critical time.”

Edgar Randall, Commercial Director UK & Ireland, Dun & Bradstreet commented: “Dun and Bradstreet is delighted to be partnering with Income Analytics to provide commercial data and analytics that support innovation and digital transformation across the real estate industry. Our aim is to provide a comprehensive risk solution for commercial real estate teams by combining our data with Income Analytics’ expertise and new platform to deliver actionable insights to drive business performance.”

Income Analytics was founded by and is led by an award-winning management team with unique experience and a strong track record in data monetisation and analytics in the commercial real estate sector. Biographies can be viewed at the company's website.

In light of the current COVID-19 situation the formal launch event has had to be postponed but details will follow in due course.

Managing a household budget is not always easy. Some months, there may not be enough money coming in to meet all of your needs. In other circumstances, you may have big plans or big projects on your mind that will require more funds than you currently have access to. In these cases, knowing where to find the financing you need is important.

Personal loans are a great choice for accessing extra funds in a completely straightforward way. Depending on your ability to take on new debt or your current plans and needs, a personal loan may be just what you need to move forward. If you want to make an informed decision about whether this kind of financing is right for you, then it can be helpful to know how personal loans are commonly used.

Let’s look at five specific reasons why you need to consider a personal loan.

1. Home Renovations

Home renovations are a great way to use the funds from a personal loan. Usually, home renovation projects can rapidly spiral over budget and quickly overwhelm the ability of homeowners to pay for everything. To see your projects through to fruition, and to avoid leaving your property in a half-completed state, then it is prudent to apply for a personal loan. Best of all, home renovations can actually add value to your home which makes a personal loan even more affordable in the long run.

2. Debt Consolidation

Personal loans can be a great way to consolidate your outstanding debts. If you are having a hard time keeping track of your debts and cannot manage to pay back numerous loans to numerous lenders, then simply the situation. Pay back all of your outstanding debts with a large personal loan. This way, you will only have one loan to worry about, and usually at a much more reasonable interest rate.

3. Emergency Medical Expenses

Sometimes, life throws us into situations that we did not expect. Whether your health has suddenly declined or the health of someone in your household is threatened, then the bills can add up quickly. Since health is far more important than anything else, it is worthwhile to take out a personal loan to finance your medical bills.

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4. Boost Credit Score

If you have big plans in your future such as securing a mortgage to buy a home, then you will need a good credit score. If your credit has suffered in the past, however, you will need to improve it first. Taking out a personal loan and then diligently repaying it allows your credit score to rise and will leave you with more options for credit in the future.

5. Travel

It is not generally advisable to use personal loans for discretionary spending. Purchases that are not truly needed are better afforded through diligent saving rather than relying on credit. This is because the interest payments you will make on a personal loan make the overall cost of this spending more expensive.

However, in some cases, discretionary spending on credit can be justified. Indeed, the choice is a personal one. For example, if you are offered a once-in-a-lifetime opportunity to take a dream holiday, then a personal loan can be useful. Nevertheless, be sure to weigh the pros and cons carefully.

Find Financing With Personal Loans

Beyond the five reasons outlined here, there are many more reasonable uses for the funds you can receive from a personal loan. If you have projects or expenses that you need to cover quickly, then find a reputable personal loan provider and start the process of securing this funding right away.

While it may sound obvious to conclude that the net profits of a business are the most important indicator with which to measure a company’s worth, the reality is that cash flow is just as important, and sometimes even more so. There are a lot of reasons for this – one would be that profits can be manipulated in the income statement more easily than cash on hand can. Net profits may be seen as a theoretical concept, while the cash that is accessible to the business is the more concrete way to see how an enterprise is actually doing.

Consider how profits can be determined largely in non-cash terms – they can be in the form of assets such as receivables. Some of these decrease in value over time, which limits the accuracy by which profits are measured. Some receivables can even be totally insignificant in the future – if for example a client pays too late, or worse, if they don’t even pay at all – then the asset that determines the value of the corresponding net profit decreases, which decreases net profit as well. This is the reality of business – that is why it is important to manage your cash flow wisely.

Cash flow measures the liquidity of an enterprise – and this is indicative of your overall paying capacity. The bigger the amount of cash the business has on hand, the more reliable they appear to their employees, suppliers, and other creditors – these entities can rest assured that they will be paid their due in a timely manner.

These are just some of the reasons why it is important to effectively manage the cash flow for your business. Here are some ways you could do that:

1. Collect your receivables as soon as possible.

If possible, have your customers pay immediately upon delivery or before they receive the goods or services they ordered from you. Prepayment is the best option, and it works – this is how most eCommerce businesses conduct their transactions. They usually ask for proof of payment before they deliver the items to their customers.

If possible, have your customers pay immediately upon delivery or before they receive the goods or services they ordered from you.

If prepayment is not possible, push for cash payments upon delivery. This is pretty reasonable for most retail-scale businesses.

For industry-scale trading, where the volume of goods and/or services and the corresponding amounts are considerably larger, do your best to get the shortest payment terms from your customers as possible.

Invoice them as early as you can. This will ensure that you have done your part in guaranteeing timely payments. It will also show your clients that you are taking your collections seriously. This is the best way to be professional about your intentions.

2. Get more flexibility in terms of your payables.

You can ask your suppliers to extend you credit terms, and you can attempt to make this as long as they will allow. This will let you be able to keep your cash in your hands for as long as possible, giving you leeway to pay for more pressing concerns. Just make sure that you don’t miss your deadlines, as some suppliers may charge interest rates for overdue payments. This is something you should avoid at all costs – as it will defeat the purpose of the exercise.

3. Consider selling your receivables in order to get cash up front.

If you have initially already extended credit terms to your clients, you may find yourself in need of reprieve in future situations. Some clients may also be unreliable in terms of meeting deadlines. You have the option to sell your receivables to get the cash you need immediately. For example, some staffing companies enroll in payroll funding, where the financing company purchases unpaid invoices from you, allowing you to have cash 24-48 hours after the invoice is presented for sale. Sometimes, you can even get your money within the same day if you request this specifically.

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This is a great way to manage your cash flow more reliably. If you have a long list of creditors, with receivables that won’t get settled any time soon, this may be a viable option for you.

4. Figure out ways to increase revenue.

You can get creative in terms of how to get more cash-based sales, so at least you have a steady flow of liquid assets. Offer discounts for cash on delivery or prepaid transactions; give incentives for customers who pay on time; and conversely, set minimal penalties for late payments, just so they’re encouraged to meet their deadlines, and be faithful to their terms.

These are just some of the preliminary guidelines that can help you manage your cash flow better. Remember that there are small ways you can tweak your cash flow to work in your favor, and explore workable options that will help lighten your load.

Did you know that having an excellent credit routine practice is an integral part of securing one's financial future? It's why building a credit score is a high starting point, and one mustn't ignore it. One of the most excellent ways to make credit is by using credit cards to build credit. It can be a challenging process if you aren't up for the task. However, don't beat yourself up as you can implement excellent credit card management practices. In turn, you get to have a brighter financial future by having a stellar credit history. Here's a step by step guideline on how to build credit with a credit card in corporate finance.

1. Pay All Your Credit Card Bills in Full and On Time

Diligent credit management practice involves you making a timely monthly payment. It's a procedure that might pass you by if you aren't too cautious. However, if you want to skip getting a headache, you need to make autopay your close buddy. Thus, you can get to pay all your bills in due time. It ultimately contributes to your credit score improving. The secret to paying timely payment with no much hassle is spending a budget that's within your limit. Therefore, you won’t have to keep carrying a balance into the next month, which might incur a higher interest charge.

2. Your Needs

Before you think of getting a credit card, you need to take time and ask yourself the vital questions. You ought to know why you are signing up for a particular card. Do you want to build credit? Or do you want the fantastic rewards that come with credit cards? Finding the ideal credit card will enable you to make the most out of it. It's a chance you ensure that you meet your needs each time you get to swipe the credit card. As you open these credit cards, you ought to know about the soft and hard inquiries. It’ll enable you to tread lightly to ensure your credit score doesn't hang on the balance.

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3. Regular Purchases

It's quite unfortunate that most individuals have credit cards that have their credit cards lying idle and unused. However, it leads to one having a pause in credit score growth. If you need your credit history to continue improving, you need to continue making purchases using your credit card. As you use your credit card, you get to make timely payments. Thus, your credit card issuer will keep making monthly reports to the credit bureaus.

4. Don’t Get Too Many Credit Cards

With the numerous captivating rewards from several credit cards, it's easy to sign up and get as many credit cards as possible. There's entirely nothing wrong with getting more than one credit card. However, the trouble comes when you have more credit cards than you can handle. You might get tempted to spend more, and that's not good, and it might harm your credit score.

Mindful credit card usage is quite crucial in achieving your financial independence dream. It's a seamless process that enables you to learn how to use credit cards to build credit. It's because one learns to become financially conscious, determined, and precise on each penny that gets spent.

Obtaining a small business loan might seem scary at first, but it's easier than you might think. If you've never done it before, or if you've never spoken to a specialist regarding the matter, you might have heard a few things that are not only false but downright toxic when it comes to growing your business.

Before we get into the myths, you have to understand a few critical things about small business loans: they can vary by type and lender, which means that not all loans are the same. Each type of loan can have advantages and drawbacks. According to the nature of your business you're running, your track record, and how much money you tend to make every month, different types of loans might suit you better than others.

So let's get into the myths and why they're simply myths:

Myth #1: Obtaining a small business loan is a long and frustrating process.

False! As long as the amount of money you want to obtain falls below the million-pound mark, or even better, below the 500k mark, you can typically get a loan in just a few days. As long as you're transparent about your business and about what you intend to do with the money, you shouldn't have any problems applying for credit either at the bank or at private lenders.

Even better, if the amount you need is very small and if you want to get rid of the debt in less than a month, you can try out payday loans. You can apply online on a direct lender's website, and you don't even need to fill out too many forms.

As long as the amount of money you want to obtain falls below the million-pound mark, or even better, below the 500k mark, you can typically get a loan in just a few days.

Myth #2: Your credit score must be impeccable.

While traditional banks care a lot about your credit score, alternative or private lenders don't take it into consideration that much. Instead of looking at your financial history, this type of lender analyses the financial reality for a certain business based on market trends, your area's economic status, and other similar factors.

In any case, don't limit yourself to just one offer. Instead, ask several lenders about their offers and try to negotiate what best suits your situation. You might stumble upon a far better offer than you were expecting.

Note that while your credit score doesn’t matter as much, you still need credit history. A credit history is different from your bank profile. It gives lenders proof that you can handle a loan. Having credit history also indirectly impacts your credit score.

A good strategy for increasing your credit score is to apply for a payday loan. While these loans offer only small amounts of money, it’s usually enough to cover urgent expenses such as taxes or health emergencies. And because we’re talking about small sums, you can pay them entirely within one month. And the best part: you can get them online from a direct lender. Bonus: they also increase your credit score by showing banks that are able to handle your finances.

Myth #3: If you ask for too much money, you'll be instantly rejected.

How much money you request doesn't necessarily impact your approval chances. In fact, lenders often prefer giving out big loans because they win back more money over time. Banks are especially more hesitant to give out small loans rather than big ones. It's generally a good idea to apply for just how much money you need while considering how much you can pay back monthly.

Afterwards, the lender is going to check if you have enough cash flow to make your payments on time. As long as you take these factors into consideration, you can grow your business so much that your profits might easily surpass the lender's interest rate.

Myth #4: Getting a loan for a start-up is nearly impossible.

Many aspiring entrepreneurs simply assume that you need to have been in business for at least a few years to build up a credit score before applying for a loan—nothing further from the truth. In reality, a lot of lenders offer start-up loans that are aimed specifically at businesses with little or no credit history.

Sure, your personal credit score will be taken into account. However, as long as you're in good standing and present yourself with a good business plan, you'll likely get approved. So do your homework and don't be afraid to ask for an expert’s help. You might be pleasantly surprised by the outcome.

Myth #5: The bank is the worst place to get a small business loan.

While alternative financing is usually great for obtaining small business loans, banks can often offer some advantages. For example, if you're in a fast-growing field such as IT, healthcare, or software consultancy, banks might not be that great. However, if you anticipate a steady growth over a couple of years, then traditional banks have great offerings.

They have several plans from which you can choose. Fixed interest rates and flexible interest rates might also play a big role in choosing what's best for you. Commissions, late fees, and early repayments also need to be considered. Yes, some banks often cut a small part of your interest rate if you pay a part of your debt in advance. That might just be what you were looking for your business.

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Myth #6: Online lenders are frauds with disgusting interest rates.

False. This one is simply false. If we were to go 20 years back in time, sure, such a statement might have made sense. However, the world has changed so much it's almost incredible. Think about all the things you do online every single day. Now think about how you used to do them in the past. It's not any different from loans nowadays.

More and more online lenders have appeared on the market in the last couple of years. Many of them offer single-digit interest rates. It's up to you to find the ones who offer plans that benefit you in the long run.

Closing Thoughts

We hope the information you have found here will help you make the right decision. To reiterate, what matters most is finding the right solution for you. To achieve this, never be afraid to consult with experts. And ask the lenders as many questions as possible before making a commitment.

So do your research and don't be afraid to try something that you haven't until now. The small loan you take out today might benefit you immensely in a couple of years. Or maybe even in a couple of months.

When faced with the question of conjuring up new funds as a business, it can be difficult to decide which avenue to take. There are many options to help a business stay afloat, size up, or pay for renovations or investments that are imperative for growth. Revolving credit facilities are one way in which your business could make its necessary purchases and stay in the black on day-to-day spending while being able to make payments on the loan. But what are revolving credit facilities and what kinds of businesses might benefit from them?

Revolving credit facilities are essentially a line of credit extended from a bank to a business. There is a maximum amount, but aside from this, the business has access to the money as and when they need to use it. It is a short-term form of finance for a business, so would suit those who need a cash injection and know with the temporary blip out of the way, they’ll easily be able to repay the money. It wouldn’t suit a business who is looking to take a risk as the money will need to be paid back in the terms. The bank considers a range of factors – balance sheets, finances and so on – before it deems a business creditworthy.

The main kind of business that would benefit from a revolving credit facility is one suffering cash flow problems or that needs a temporary lift. Revolving lines of credit differ from other kinds of business loans as once you have paid off some of the balance, you can then withdraw more on the rolling agreement. There are many kinds of business loans to choose from, including a line of credit, which may be more suitable for some businesses. A line of credit is a loan that once paid off, cannot be accessed again.

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The revolving credit facility would, therefore, suit a business that might need to dip back into the pot from time to time, but have proof that they can repay the loan over the long term. This could, perhaps, be a seasonal business with concentrated periods of profitability, one that might have to close for unexpected reasons, or businesses that have to spend money upfront in order to make the profit on it.

Indeed, cruise company Norwegian Cruise Liner Holdings Ltd announced that it had signed for a revolving credit facility to combat loss of earnings during the coronavirus crisis. The money would be used to tide them over for the immediate period of people avoiding cruise ships, with the hope that when the virus is no longer a threat, they will resume business as usual.

"Norwegian Cruise Liner Holdings Ltd announced that it had signed for a revolving credit facility to combat loss of earnings during the coronavirus crisis."

There are tertiary issues to consider when choosing the kind of funding that is right for your business and factors out of your control may have an impact in where you source your funding from. For example, reports indicate that only £16 of every £100 of money given to businesses in funding goes to women. While there are plans in place and awareness of the gender pay gap, many are unaware of this gender funding gap, which disproportionately benefits male-dominated businesses and the development of male employees. So, businesses should take this into account when embarking on a quest to find any kind of funding.

There are many options open to businesses when choosing a loan. Some are at the behest of the bank, while other businesses have more scope in how they want to be funded. A revolving credit facility is useful as money can be taken out, paid off when times are better, and then the credit is still available to be used.

Here, we’ll look at the components you should include in your marketing plan and how your method of accepting payment can impact your business.

Let’s get started:

Developing a Marketing plan

Effective marketing requires time, money, and preparation. To stay on a budget and schedule when marketing your business, you need to have a marketing plan. A marketing plan involves the steps you’ll take to market your business to potential customers.

Your Business plan needs to include the basic essential elements of your marketing strategy.

Essential Sections of a Marketing Plan

Most marketing plans include these components. As usual, only use what works best for your business.

Market Research

Research is a key component of a marketing plan. You can start by checking with your local library offering market reports. You can even access some library cards online.

Study the size of the market in the industry, customer buying habits, market growth or decline, and other current trends.

Target Market

A detailed market description can help identify your potential buyers. Consider the market size, unique traits, demographics, and demand trends.

Competitive Advantage

Describe what puts your products or services ahead of other products. It could be a lower price, a better product, or excellent customer service. Having eco-friendly certification, or “made in the USA” label, can mean a lot to customers.

Sales Plan

How will you sell your product or service to your customers? List the sales methods you plan to use, for instance, retail, wholesale, or online. Let your customers know each step to take when they decide to buy.

Marketing Strategy

Your marketing strategy will determine whether you’ll reach your sales goal or not. Ask yourself, “how do I find and attract potential buyers?”

Look at the entire market and then come up with specific tactics to use, such as events, email, direct mail, content strategy, social media, couponing, street teams, seminars, webinars, partnerships, and any activity that can help reach potential customers.

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Budget

How much do you want to spend on your marketing plan? Here try to be as accurate as possible. You’ll need to track your costs when executing your plan.

Measure and Update Your Plan

Be sure to check how marketing costs compare with generated revenue. You’ll want to ensure you’re getting a good return on investment.

Some tactics, such as word-of-mouth, are hard to measure. So get creative and get advice from other people. The key thing here is to be consistent in measuring the effectiveness of your marketing efforts.

Selecting Payment Methods

Do you know the kind of payments you accept can affect your marketing and sales? Be sure to choose secure, cost-effective forms of payments. Such payments offer a positive experience for your customers. No matter what payment methods you accept, you’ll require a business bank account.

No matter what payment methods you accept,

you’ll require a business bank account.

Credit Cards

To accept debit and credit cards, you’ll need either an account with a third-party payment processing company or a merchant services with your bank.

In addition to the cost of setting the required equipment, you’ll be charged a processing fee for each debit or credit card transaction.

Accepting debit and credit cards can expose you to fraud risk, but most providers offer a certain degree of protection for your business.

Checks

To accept checks, you need to have a business bank account.

To avoid fraudulent or bad checks, you need to develop a policy for accepting checks. For instance, you can decide to only accept checks from in-state banks. Or require checks to include only the validity of given checks by taking a photo of them using mobile banking apps (some banks allow instant check clearance using mobile apps) making the transaction much more fluid.

Checks can not only be used to receive payments from customers, but they are a nifty financial tool for making business payments. The best thing is that you can buy your checks online, thus saving money when reordering business checks. You just need to google online and choose a vendor that matches your needs.

Cash

Some small businesses only accept cash because it’s easy, fast, and inexpensive.

However, this option increases the accounting time and security risk. Be sure to develop a secure way to hold your cash, like a safe and register.

Online Payments

If you run an online business, you have the option of using an online payment service to accept payment through your website.

Typically, online payment services accept debit and credit cards. You’ll be charged a small fee to accept payment online.

Whilst UK banks are already trialling the biometric credit card, consumers must be made aware of the wide range of benefits biometric payment cards have to offer for biometrics to be embraced as the next generation of payment technology.

Below David Orme, Senior Vice President at IDEX Biometrics ASA explains how biometric fingerprint authenticated payment cards will bring new levels of security and convenience to the payment market, taking the bank card into the 21st century.

Biometric technology continues to gain momentum in many areas of our lives. Earlier this month, NatWest became the first UK bank to trial a biometric credit card, which will see consumers carrying out contactless payments using their fingerprint, instead of a PIN, for authentication.

As similar trials take place around the world, we can expect this new payment technology to become an everyday necessity within the next year. But as biometric smart cards start to roll out, consumers may wonder, “why do I need another form of payment technology?”

The reality is, biometric fingerprint authentication cards bring many strengths that will make our payments, and therefore our everyday lives, more secure. With fingerprint authentication cards starting to land in people’s wallets, payments will soon become the area where consumers interact most strongly with biometric technology on a daily basis. Consequently, it is vital to make it clear to consumers just how much they stand to benefit from biometric-enabled payment cards, to encourage rapid adoption and ensure their successful roll-out.

Advanced levels of security

The biometric payment card has been developed to bring new levels of security to payment transactions. Fingerprint authorisation links a particular person to their payment card — as, for transactions to be processed, the owner’s fingerprint has to be matched on-card. This connection to the owner’s physical identity reduces the potential for payment fraud and improves authentication security, for both card-present and card-not-present fraud.

Biometric fingerprint payment cards also provide end-to-end encryption, securing the user’s card and their biometric data, which never leaves the card. This ensures hacking and breaches of fingerprints aren’t scalable.

Biometric payment card technology will also integrate with the expectations of Strong Consumer Authentication (SCA), part of the second Payment Services Directive (PSD2), a new European regulatory requirement to tackle online and payment fraud. For consumers, this currently means providing at least two factors of authentication such as a PIN, or a one-time passcode, are combined with the possession of a payment card, even for contactless payments.

But with biometric payment cards, the card owner can authenticate with the non-intrusive method of placing their fingerprint on the sensor while tapping their contactless card on the PoS system. This will allow users to benefit from the flexible, convenient factors of secure authentication, rather than having to remember PINs.

Making payments more convenient

While consumers value the extra security biometric smart cards bring, it’s important for this new payment technology to be as convenient as possible to ensure wide-spread adoption. Therefore, biometric-enabled payment cards need to deliver significant security improvements with very little impact on the current contactless experience, or changes to user behaviour.

Of course, consumers have been shopping with payment cards for decades and understand how to use them. Likewise, the majority will already be familiar with fingerprint authentication, thanks to its near ubiqui­tous use on smartphones, to unlock devices or to authenticate mobile payment app transactions. This familiarity and comfort with the technology reduces the barrier to adoption of biometric payment cards.

With this new payment method, a user will replace PIN entry with fingerprint authentication for all transactions. The fingerprint sensor is conveniently positioned on the card, taking into account the typical way a consumer will hold it when completing a transaction to minimise any change to the payment process.

With this new payment method, a user will replace PIN entry with fingerprint authentication for all transactions.

Importantly, existing PoS retail infrastructure must still be used to ensure smooth roll out of biometric authentication cards. This is because consumers are already used to the technology, as well as to minimise the need for additional investment from retailers.

On top of this familiarity, the shopping experience will likely become even more convenient with the adoption of biometric payment cards. By adding secure fingerprint verification to the payment authentication process, contactless transaction limits could actually be increased or even eradicated en­tirely, meaning users can benefit from not having to remember PINs, and can pay via secure contactless for all transaction values.

One card to rule them all

Nowadays, the average consumer has multiple cards weighing down their wallets, from debit and credit cards, loyalty schemes, contactless public transport tickets, IDs, healthcare cards and more. This seems out-dated in an age where we expect to do so many things all from one smartphone.

In smart phones, biometric technology is already used to securely access many different applications, including banking and payment apps. In much the same way, this multi-application authentication process can be incorporated in a physical payment card with a built-in biometric fingerprint scanner. This will reduce the number of cards in a person’s wallet, making it faster to tap-and-go securely for many different transactions, all from one card.

Achieving top-of-the-wallet status

Today, consumers expect more speed and convenience from their services, and the same applies to the payment process. They’re looking for a transaction procedure that is fast, secure and free from hold ups. Adopting biometric fingerprint authentication will help achieve this, making payments more beneficial. This will also allow banks and financial institutions who introduce this technology to achieve top-of-wallet status with their cards.

Overall, biometric fingerprint authenticated payment cards will bring new levels of security to the payment market, taking the bank card into the 21st century. Through biometric fingerprint-authentication cards, consumers can access the best in terms of payment security, convenience and usability. As a result, now is the time to embrace this new form of payment technology.