4 Simple Steps to Step Up an LLC in NYC—Including 1 to Save You Hundreds of Dollars

Maybe you’ve been working on a side hustle in Brooklyn for a while and a client has asked you to make things a little more official for them. Or perhaps you’ve decided you’re ready to leave your traditional job in Midtown behind and work for yourself. Whatever it is, it’s exciting—but now you need to figure out the steps for how to set up an LLC in NYC.

If you feel like there’s something extra special about being in business in New York City, you’re not alone. It’s thrilling to set up shop here, and setting up an LLC as a freelancer isn’t that hard—so why not!

Of course, just as New York City feels a little extra, so too are their rules. Big surprise, right? Each state has varying requirements to set up an LLC, so the steps for setting up an LLC in New York are a little different than most.

There are so many benefits for setting up an LLC in NYC and protecting yourself and your liabilities. Let’s go through the steps you need to take in NYC to make sure your LLC complies with all the local laws.

And we’ll show you one thing you can do to save your business hundreds of dollars during the formation process.


First, Make Sure You’re Eligible to Set Up a Business in NYC

The requirements for setting up an LLC in NYC are no different than the requirements for setting up an LLC in other parts of New York. You can get all the information you need to set up your LLC at the New York Department of State website. Unlike some other government sites, this one is relatively easy to navigate, and the instructions are written in (more or less) plain English.

How to Check that You’re Legally Approved to Run Business In NYC

Although setting up an LLC in NYC is the same as the rest of the state, there are dozens of licensing and other requirements you might have to meet have to meet to legally operate a business in NYC. And if you don’t, you could face a big cash penalty.

The good news, though, is that New York City tries to make it easy to comply with these requirements.

Head on over to NYC Business and click on the “Step By Step” link to determine exactly what you need to do to legally start a business in the city. In 10 minutes, you can have a customized list of requirements for your business. You can even save your progress and come back to it later.

And One More Note If You’re Running a Business from Home

You might have noticed that rent is high in the city, eh? And office space comes at an even heftier premium. For that reason, you might be thinking about running your business out of your apartment to save some money.

Be careful. Home-headquartered businesses are carefully regulated in NYC.

According to the NYC Department of City Planning, you can run a business out of your home, but:

Limitations apply. Section 12-10 of the Zoning Resolution defines “home occupations” and limits them to 25% of the size of home, or 500 square feet, whichever is less. Home-based businesses may only sell goods produced on site, and must not impact the character of the residential area. Additionally, the following business are not permitted as home occupations: advertising or public relations agencies, barber shops, beauty parlors, animal stables or kennels, electrolysis offices, interior decorators’ offices or workshops, ophthalmic dispensing, pharmacies, real estate or insurance offices, stockbrokers’ offices, or veterinarian’s offices.

And you absolutely need to check your lease to make sure it doesn’t include a clause prohibiting you from using your living space as an office.

Before setting up your LLC in NYC, make sure to check all the other requirements for doing business in your borough, neighborhood, and building.

→Too Long;Didn’t Read (TL;DR): Before you start setting up your LLC in NYC, make sure that you’re following other rules. You’ll want to check that you’re in good standing to set up shop in your borough, and that you’re not violating any lease agreements, etc.

How to Set Up an LLC in NYC

Let’s assume that all is well with your zoning and the licensing requirements for your business. Now how, exactly, do you go about setting up your LLC in NYC?

1. Choose a name for your LLC.

You’ll be glad to find out that there are relatively few requirements here. Your LLC name needs to follow these guidelines:

  • Must contain the words “LLC” or “Limited Liability Company”
  • Must not contain restricted words or phrases (these are mostly set aside for certain sectors, professions, or industries with pre-designations)
  • Must be unique from the names of other LLCs in New York

2. Choose a registered agent.

This isn’t strictly required, because the New York Secretary of State acts as your registered agent by default. But—and this is a big but—you might want to choose a registered agent located outside of NYC, anyway.

Okay, so, why would you go through this extra step if it’s not required?

Hang tight, keep reading, and it’ll make sense in a second.

3. File your articles of organization.

The articles of organization is the document that makes your LLC its own legal entity. (You know, the reason you’re doing this in the first place.) You don’t have to have an attorney to create or file the articles of organization, but since it’s a legal document, you should consider using one.

What you do need for sure is $200.

You can pay this nonrefundable filing fee can by cash, check, money order, MasterCard, Visa, or American Express. You can file in person or online.

4. Publish notice of your formation in 2 newspapers with the LLC’s HQ county.

Nope, not kidding!

In order for your LLC to be official, you really do have to publish a copy of your articles of organization in one daily and one weekly newspaper, for six consecutive weeks, within 120 days of the formation of your LLC. In lieu of the articles of organization, you can instead publish a related notice announcing the formation of your LLC.

Once the publication requirement has been fulfilled, you must submit a Certificate of Publication, along with a $50 filing fee, to the New York Department of State.

Yes, this requirement seems archaic—and that’s because it is.

It harkens back to the days when newspapers were the only reliable way to notify the public that a new business had been formed. No one seems to know exactly why New York (as well as Arizona and Nebraska) holds onto it, but failure to comply will result in the suspension of your LLC.

If nothing else, you can laugh about it with others who have set up an LLC in NYC—or, hey—find out about a cool local newspaper you didn’t know about.

And this relates to choosing a registered agent… how?

The publication requirement states that you have to publish in a newspaper designated by the county clerk in the county where your LLC is located, right? Well, if your LLC is located in New York City, this means your LLC notice must be published in an NYC newspaper. And that could easily cost you several thousand dollars before the requirement has been fully met.

If, however, you choose a registered agent outside of NYC, you can use the registered agent’s address as the address of your LLC. This means you can avoid the prohibitively expensive NYC newspapers while still fulfilling your publishing requirement. Smart!

Here’s more information regarding the publication requirements for LLCs in NYC in plain English.

→TL;DR: Pick a name, file some paperwork, and pay some fees—not bad! The weirdest thing is the publication requirement, which you can’t skip, even if you’re tempted to.

One More Thing—Make Sure You Keep Your LLC Active

You’ve gone to all of this trouble to set up your LLC in NYC. Now, make sure that it doesn’t get suspended.

You’ll be required to pay an annual fee to keep your LLC active. This fee ranges from $25 to $4,500. A big range—we know. It’ll depend on your income from the LLC, but you’re likely to fall on the lower end of the fee spectrum. And you can find out here.

There’s more information straight from New York State as well as instructions to determine if you must e-file, on the New York State DTF website.

→TL;DR: Don’t forget to keep your LLC active in NYC once you’ve set it up. You’ll need to file a form yearly and pay an upkeep fee, depending on how much revenue you’ve generated.


Setting Up an LLC in NYC Is Actually As Easy as (Big Apple) Pie

Although there are dozens of licensing requirements and other restrictions surrounding starting a business in NYC, setting up an LLC in NYC is surprisingly simple. The biggest stumbling block is the publication requirement, which can get expensive. With a little planning, though, even this requirement is not overly onerous.

Your steps for how to set up an LLC in NYC:

  • Pick a name that follows New York state’s guidelines
  • Decide whether you’ll use the state as your registered agent, or whether you’ll use one outside of NYC
  • File your articles of organization
  • Publish your newspaper notices
  • Pay all of your filing fees
  • And make sure to keep your LLC active each year

As is the case with most small businesses, setting up an LLC in NYC might be the best business decision you make. Don’t let the filing fees—and that strange publication requirement—deter you from taking this vital step to protect yourself and your personal assets.

The post 4 Simple Steps to Step Up an LLC in NYC—Including 1 to Save You Hundreds of Dollars appeared first on Fundera Ledger.

from Fundera Ledger https://www.fundera.com/blog/how-to-set-up-an-llc-in-nyc
4 Simple Steps to Step Up an LLC in NYC—Including 1 to Save You Hundreds of Dollars

first seen on http://barbarapjohnson.blogspot.com

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The Best Candidates for Local Business Loans Have These 6 Qualities in Common

Need funding? Then your first stop might be to head to your local bank to see if you’re one of the best candidates for a local small business loan. And that makes sense, since banks tend to offer great rates on their loan products. But it can be pretty hard to get one of these local business loans, whether that’s a term loan or a highly coveted SBA loan, since they’re both so in demand.

That said, difficult does not equal impossible.

Thousands of small business owners get high-capital, low-interest term loans from their local banks every day. These small business owners didn’t necessarily fit into one borrower profile, but they’re great candidates for local business loans because they have a few things in common.

And that all boils down to the idea that the best candidates for local business loans present the lowest risk to the lender. These candidates run financially secure businesses, they’re responsible with their financial obligations, and for SBA loans, their businesses meet all the US Small Business Administration’s standard requirements.

That might sound pretty vague, so we’ve tried to get as specific as possible here. To help know whether your business will be among the best candidates for a local business loan, you’ll want to be able to tick off most—if not all—of these six qualities.


What to Know About Local Business Loans

Before knowing what it takes to get a small business loan, let’s do a quick review of what kinds of loans your local bank is likely to offer:

Term Loans

Term loans are a bank’s bread and butter. As the borrower, you’ll get a lump sum of cash deposited directly into your bank account. That gets repaid according to a set repayment schedule, usually at a fixed interest rate.

The exact conditions of your term loan—like the amount of available capital, the length of your repayment period, and the interest rate—depends upon a variety of factors. But generally, these loans are pretty big—sometimes they can go into the millions of dollars for the most qualified borrowers.

First, all lending institutions have their own loan criteria.  Then, if you’re accepted (which is, admittedly, pretty difficult), your risk as a borrower will be evaluated based on your business’s financial history and profile as well as the loan program you’re in, if that applies.

Only the candidates with the strongest applications will be considered for a bank loan at all. And only the strongest of those businesses will qualify for the longest repayment terms, the lowest rates, and the highest amounts of capital.

SBA Loans

If you’re a small business owner seeking a long-term loan, you’re probably going to apply for an SBA loan. And you should! It’s literally the Small Business Administration’s job to extend loans and other types of support to small business owners across the country.

Here, although a local bank is still granting you the actual financing—not the SBA itself—the government agency is partially guaranteeing the bank loan with federal money in case of default. That means the lending institution, aka the bank, is taking on less risk when they accept an SBA loan application.

That all translates into really good repayment terms. If you’re qualified enough to secure one, your SBA loan will carry the longest repayment period, the lowest interest rate, and the highest capital amount available than any other type of loan.

But you can’t always get what you want—especially if thousands of other people want the same thing. Because SBA loans are so in demand, banks receive huge numbers of applications every year. So, they’re in the privileged position to lend money to only the most desirable candidates, who meet a long list of predetermined requirements.   

→Too Long; Didn’t Read (TL;DR): The  two most commonly offered bank loans are traditional term loans and SBA loans. Both are desirable and popular—which means both are hard to qualify for.

Who Are the Best Candidates for Local Business Loans?

How do you know if you’re among these storied “most eligible borrowers” we keep talking about? Unfortunately, there’s no actual magic involved. In this scenario, “most eligible” really means “lowest risk.”

Because that’s what a bank is doing when they extend a small business loan—they’re taking a risk. They’re trusting that you, the borrower, are responsible and financially secure enough to repay your debt in full and on time. That risk increases, of course, when the bank is lending higher amounts of capital and the repayment period lengthens.

And since the bank can’t know everything about you and your business, they have to base their decision on some set of standards—which is why your credit profile and financial history ends up mattering so much. Those things tell the story for you, or at least part of it.

So, in that sense, the best candidates for local business loans are really what banks deem as the lowest risk. Ultimately, what “safe” means will be at your bank’s discretion. But, in general, the most promising candidates for local business loans have these six qualities in common.

1. Profitability

For a bank to deem your loan less risky, they’re going to want to see that you’re making money.

Profitability is essentially a measure of how well a business can generate a profit in relation to its expenses. Although there are a few methods for how to determine whether your business is profitable, regardless of which you use, banks will be looking for it.

Profitability is a key metric by which banks determine loan eligibility, since the lender needs to feel as confident as possible that your business can handle repaying your debt. That’s especially crucial for longer-term loans, since those capital amounts can reach into the hundreds of thousands—if not millions—of dollars.

2. Creditworthiness

If you want to be the best possible candidate for a local business loan, credit is king.

You have a business credit score, right? (Check it here, by the way.) For that reason, it might seem oddly intrusive for a lending institution to scrutinize your personal creditworthiness in an application for a business loan. But try to put yourself in the lender’s shoes.

At its heart, creditworthiness signals how you’ve handled money in general. If you’ve repaid debts, declared bankruptcy, defaulted on loans, paid bills on time, etc.

You’ll want to be in excellent credit standing—think high 600s-plus for a local bank loan. For an SBA loan, too. But, as with all things credit-score related, the higher the better. The best candidates have a very solid credit history, or have worked hard to rebuild credit history if they’ve had past missteps.

3. A clean financial history

You’ve probably figured out by now that banks are always trying to mitigate risk. So, when banks see instability in your business’s financial profile, they could interpret it as an indication that you might not be able to repay your loan.

Other than your credit scores, some things that a local bank will be looking out for include:

  • Tax liens: A tax lien is a public document issued by the government if a business doesn’t pay their taxes on time. Basically, it lets the government be first in line to seize and sell that business in order to satisfy the debt. In that case, the lending institution is bumped down a notch on the repayment ladder—which increases the loan’s riskiness.
  • Outstanding debt: Before extending you a loan, lenders need to be assured that they’ll be repaid. But if you’ve racked up pre-existing debt, like student loans and mortgages, and haven’t yet paid it down, that can indicate to the lender that your income can’t support an additional loan repayment.    
  • Recent bankruptcies: You can be eligible for an SBA loan if you’ve filed for bankruptcy in the past, but it has to have been discharged. You’ll need to provide a suitable explanation for your bankruptcy. Just know that a “suitable explanation” is completely up to the bank considering your loan application.

In addition to a strong financial profile, a lender will probably also want to see that you’ve personally invested in your company. That indicates a seriousness in and commitment to your business—and business owners with a personal stake in the company are often more likely to give their all to make it succeed.  

4. Collateral

Of course, no one plans to default on their loan. But just in case, the lender needs to know that they have a safety net if the borrower fails to repay their debt.

In that case, the best candidates for local loans have strong collateral to put up—whether those are business or personal assets. (That’s situational, FYI.)

Since these loans are often on the larger size, borrowers have to take a risk on their end, too—since taking out a lot of money means collateralizing your house, maybe, or putting a blanket lien again the business.

5. Time in business

Mature, profitable businesses are considered more reliable than immature, profitable businesses. That’s why the best candidates for local business loans aren’t startups.

Considered from the lender’s perspective, that makes sense. Basically, if you’ve managed to keep your business growing for 10 years, that demonstrates a much longer track record of reliability than a business that’s only been booming for a year or two. Plus, they have lots more financial data to look through and see patterns.

In addition to a sign of your business’s stability, time in business is also indicative of your experience within your industry. Lenders feel safer signing onto a borrower who deeply knows the ups and downs particular to their field—and how to capitalize on the ups and weather the downs.

6. A strong business plan

When you apply for a local bank business loan, the lending institution will ask you for a slew of credentials demonstrating your business’s eligibility.

So, in addition to a stellar financial portfolio, the best candidates for local business loans need to have a rock-solid use case for the funds. Maybe there’s evidence for opening up a second location, or maybe the business needs to double its payroll. Whatever! But make sure it’s justified.

And you can be sure the bank will want to know, in detail, all about that plan. The best way to prepare for this is to show them an in-depth business plan, which you’ll share with your bank. Here, you can strategically map out your goals over the next three to five years and outline an action plan for how to meet them. Prove you’re organized, thoughtful, and serious.

→TL;DR: The best candidates for local bank business loans have qualities that signal to the lender that they’re low-risk borrowers. They have a strong business history, strong credit history, and a strong business plan. All of that signals that the bank will get their money back.


Other Important Local Business Loan Requirements to Know About

Some parts of having a “desirable profile” to be the best candidate for a local business loan is subjective. But there are some things that are simply non-negotiables.

Because SBA loans are government backed, the Small Business Administration does have some specific guidelines in place. They do vary from loan product to loan product—for instance, SBA 7(a) loan requirements are different than those for an SBA microloan—so you’ll have to check in.

Here’s a quick overview at what some of those are:

  • Location in the US: You have to be headquartered in the US and primarily carry out business domestically.
  • Size: To be eligible for a small business loan, your business actually needs to be small (see how the SBA defines the size of a small business).
  • Industry: Some industries aren’t eligible for some SBA loan programs—and, conversely, only select industries are eligible for others.

Here are more details on the three types of SBA loan programs so you can explore the requirements.

It’s also worth noting that local banks have their own requirements, too—just like these. They’ll also define size by their own terms, and sometimes restrict lending in certain industries. You’ll have to talk to your local bank to see if you’re still one of the best candidates based on those requirements.

→TL;DR: Make sure to check the specific requirements of the loan product you’re applying for, specifically SBA loans. There may be some non-negotiable boxes you have to check, too.

If You’re Missing One (or More) of Those 6 Qualities, You Still Have Business Financing Options

The truth is, the vast majority of small business owners can’t meet all—or even most—of these qualifications. And if you’re a part of that majority, don’t worry!

Bank loans are certainly not your only option. If you’re looking for a small business loan, explore these options:

Term Loans from Alternative Lenders

It’s common for small business owners seeking loans to be turned down by banks. That’s one of the reasons for the rise of the online lending industry. Alternative lenders exist to serve the thousands of small business owners whose financial needs aren’t being met by conventional lending institutions.

Term loans with alternative lenders work the same way as they do with banks: You receive a lump sum of cash, at a set interest rate, which you repay on a schedule determined by the lender. But eligibility requirements are less stringent with newer, online lenders than they are with traditional banks.

Because these are great products, you’ll still need to show a strong financial profile. Here’s a look at an average set of qualifications:

  • 1+ year in business
  • 600+ credit score
  • $100,000 in revenue

But over the past five years, alternative lenders have accepted an average of 60%-64% of small business owners’ loan applications. That’s a big improvement over the 13%-20% of applications approved by banks.             

Short-Term Loans

A short-term loan is another variation of that traditional term loan. But, typically, it’ll be easier to qualify for than a long-term bank loan.

That’s mainly because short-term loans are much less risky for the lender than long-term loans, since they’re both furnishing less capital, and doing so over a shorter time period. And the max you can really shoot for with a short-term loan is around $250,000.

True to its name, the short-term loan gives you less time to pay off your debt—usually 3 to 18 months. These are also more expensive than longer term loans, as interest rates usually begin at around 10%.

If you’re not the best candidate for a local business loan because of your credit score, then a short-term loan might be the way to go. Average borrowers are qualified with:

  • 1+ year in business
  • 525 credit score
  • $90,00 in revenue

And, if you are vigilant about repaying on time, you can build your credit to graduate into a long-term loan.   

Equipment Financing

If you’re looking to secure a local business loan to make a big equipment purchase, but you don’t think you’ll qualify, then apply for equipment financing.

With a specific equipment loan, you submit the information on the specific piece or pieces of equipment you want to purchase, the lender gives you the thumbs up, and you get the money to do it.

Here’s the interesting part, though. The equipment itself serves as collateral, which means you don’t have to put up any additional collateral. So, if you default on the loan, the lender can repossess the equipment, making it lower risk for them—and a less expensive alternative for you. Average borrower profiles generally look like:

  • 11+ months in business
  • 600+ credit score
  • $100,00 in revenue

Although it’s not as easy to qualify for as a short-term loan, it is generally less expensive, and if you’re looking into bank loans, you just might have the qualifications lenders want.

See the Loans You Qualify For

→TL;DR: Bank loans aren’t your only options. You can explore term loans, short-term loans, and equipment financing through alternative lenders, which might be able to get you the financing you need.

Are You One of the Best Candidates for Local Business Loans?

Well, that’s up to your local bank, of course. But banks will only extend loans to the lowest-risk candidates.

Banks see these business owners as the most low risk, aka the best candidates:

  1. Own profitable businesses
  2. Have excellent credit scores
  3. Have a healthy financial history
  4. Are willing to put their businesses, and occasionally their personal assets, on the line
  5. Have time and experience in their industry under their belts
  6. Are prepared to share a sound explanation for their loan, intended use of funds, their goals for their business, plus a game plan on how to get there  

If you don’t meet all of these requirements, you still have lots of options to explore for small business financing. And these other loans can help you build your credit—eventually graduating you into a local business loan after all.

The post The Best Candidates for Local Business Loans Have These 6 Qualities in Common appeared first on Fundera Ledger.

from Fundera Ledger https://www.fundera.com/blog/local-business-loans
The Best Candidates for Local Business Loans Have These 6 Qualities in Common

first seen on http://barbarapjohnson.blogspot.com

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Free Printable Checklist Of Common Spices For Your Kitchen : The Grocery Game Challenge 2018 #3 Mar 19-25

SUPPLY YOUR KITCHEN WITH THESE FAMILIAR SPICES AND ADD A SPLASH OF FLAVOUR TO ALL YOUR MEALS   Having common spices on hand that many recipes call for is one of the smartest and most inexpensive ways to flavour your dishes. It’s that time of year when we do a full spice cabinet wipe and clean along with an inventory of what we have on hand or need to replenish. Get your FREE Printable Common Spices Checklist below!!   Storing Herbs, Spices and Extracts   My father-in-law would make sure his organic herbs were properly dried in parchment paper and sat in a box that resembled a pop case. He’d dry the herbs in the basement on a long 8 foot table during the winter and eventually he would have boxes of herbs to use. There were always herbs hanging upside down from the ceiling as if there were bats in the house. “Be careful what you walk into”, he used to tell me if I would go down to grab something. Once dried always store your spices in a dry space such as a kitchen cabinet where moisture won’t have the opportunity to get inside. Having a good kitchen […]

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Mr. CBB who was born and raised in the United Kingdom, moved to Canada where he is now a permanent resident. He is also a father to a very active 3 year old boy which keeps him young at heart.
He bought his first house at the age of 21 in the UK after graduating University and his second at age 24. Mrs. CBB bought her first house at the age of 30. Both Mr.CBB and his wife are 40-ish year-old finance lovers who accomplished debt freedom before the age of 40. Canadian Budget Binder is a fun, family-friendly place where he shares their financial journey with his readers and hopes to learn about theirs. No silver-spoon just hard work and perseverance. Welcome to Canadian Budget Binder! You’ve got this!

The post Free Printable Checklist Of Common Spices For Your Kitchen : The Grocery Game Challenge 2018 #3 Mar 19-25 appeared first on Canadian Budget Binder.

from Canadian Budget Binder http://canadianbudgetbinder.com/2018/03/21/free-checklist-common-spices/

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Birmingham among top cities for job creation and attracting residents

New report shows full scale of city urban renaissance but warns that action is needed to protect commercial space driving this growth

from birminghampost – Business https://www.birminghampost.co.uk/business/business-news/birmingham-among-top-cities-job-14435552

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

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

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

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

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

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


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

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

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

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

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

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

2. You’re financially secure.

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

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

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

Prep by:

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

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


3. You’re ready to be in control.

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

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

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

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

4. You’re confident.

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

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

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

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

So, Are You Ready to Be Self-Employed?

These signs should be a good indicator:

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

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

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

from Fundera Ledger https://www.fundera.com/blog/you-have-what-it-takes-to-be-self-employed
4 Signs You Have What It Takes to Be Self-Employed and Leave Traditional Jobs Behind

first seen on http://barbarapjohnson.blogspot.com

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Claire’s Accessories has filed for bankruptcy in the US

Claire's – which has its UK head office in Birmingham – is owned by private equity firm Apollo Global Management

from birminghampost – Business https://www.birminghampost.co.uk/business/business-news/claires-accessories-filed-bankruptcy-14433933

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Quirky new cafe Sorrento Lounge to open inside former Prezzo in Moseley

The small Loungers chain, which already has branches in Kings Heath, Harborne, Sutton Coldfield and Mere Green, will be opening next week

from birminghampost – Business https://www.birminghampost.co.uk/whats-on/whats-on-news/quirky-new-cafe-sorrento-lounge-14435307

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Airport chief appointed to run M6 Toll

Andy Cliffe has been with Manchester Airports Group for two decades but will now lead the company running UK's only pay-as-you-go motorway

from birminghampost – Business https://www.birminghampost.co.uk/business/business-news/airport-chief-appointed-run-m6-14436096

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

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

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

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

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

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


When You Need a Business Loan Request Letter

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


What to Include in Your Business Loan Request Letter

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

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

How to Write About Your Basic Business Information

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

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

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

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

How to Write About the Purpose of the Business Loan

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

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

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

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

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

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

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

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

Use This Template to Write Your Business Loan Request Letter

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

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

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


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

Re: Small business loan request for [AMOUNT]


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

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

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

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


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

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

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

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


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

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

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

Business Loans That Don’t Require a Request Letter

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

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

Term Loans from Alternative Lenders

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

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

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

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

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

Apply for a Term Loan

Equipment Financing

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

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

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

Apply for an Equipment Loan

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

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

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

Otherwise, make sure you include:

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

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

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

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

from Fundera Ledger https://www.fundera.com/blog/business-loan-request-letter
How to Write a Business Loan Request Letter That’ll Impress a Lender

first seen on http://barbarapjohnson.blogspot.com

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Russian investor buys Birmingham student block

Private buyer snaps up Edgbaston apartment complex for £10.6m

from birminghampost – Business https://www.birminghampost.co.uk/business/business-news/russian-investor-buys-birmingham-student-14434115

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