GoDaddy Inc. has launched an AI-powered Instant Video tool in its GoDaddy Studio app. This new feature is specifically designed to aid entrepreneurs in creating captivating video content effortlessly, responding to the mounting demand for video-centric digital marketing.
GoDaddy’s newest addition comes at no extra cost and addresses one of the key challenges small businesses face – time. The app already stands as a beacon for entrepreneurs, offering many resources to generate aesthetically pleasing content suitable for websites, social media, marketing endeavors, and beyond. With an array of templates, business owners can fashion branded and professional material to elevate their online presence and boost engagement and sales.
Laka Sriram, Vice President of Product Management for GoDaddy, emphasizes the significance of brand-centric video marketing in the current digital landscape. “Branded video marketing is key to standing out online and GoDaddy Studio’s AI-powered Instant Video makes it easy for small business owners to create social media and video content quickly, without the need to be tech-savvy. By using the latest technology, entrepreneurs will now be better equipped to maximize social media platforms’ algorithms, which favors videos, and increase engagement to grow their business.”
With AI integration, GoDaddy Studio’s users can handpick the most pertinent video style and produce and post premium, watermark-free videos suitable for a range of purposes, such as social media campaigns, product showcases, and instructional videos. Furthermore, the app can autonomously craft catchy slogans based on user-uploaded video clips or images. The tools are user-friendly, requiring no prior design background, and permit the incorporation of user-generated videos and photos and content from GoDaddy Studio’s comprehensive built-in library.
Another noteworthy feature is the alliance with Melodie, which enables creators to infuse their videos with royalty-free music while supporting small, independent artists globally.
GoDaddy Studio’s recent upgrades aren’t limited to video creation. Entrepreneurs can now acquire domain names directly via the app, with the added perk of a complimentary version of Website Builder. Upgrades also provide options for associated email addresses. For those subscribed to GoDaddy Studio PRO, a broader palette of stock photos and videos is available in the app’s library. Entrepreneurs are invited to dabble with licensed music, tailor-made transitions, brand-specific logos, colors, fonts, and an extensive assortment of graphics and stickers, all aimed at optimizing social media interaction.
For those keen to explore GoDaddy Studio’s advanced features, the app is currently available for both iOS and Android platforms. To delve deeper into the potential of AI for your business and the innovative offerings from GoDaddy, visit their dedicated AI platform.
With the pace at which the digital world evolves, GoDaddy Studio’s move to integrate AI in assisting small business owners to create top-tier content quickly and efficiently is both timely and transformative. As the digital landscape becomes increasingly competitive, tools like these can offer entrepreneurs a significant edge.
Small businesses are crucial to the American economy, and securing a small business line of credit can be a pivotal step towards success or a safeguard against failure.
This financial tool can offer vital cash flow during challenging periods and enable business growth when new opportunities present themselves.
In this article, we’ll explore how a small business line of credit works, how to obtain one, and the advantages it offers.
What Is a Small Business Line of Credit?
A small business line of credit is a versatile financing tool that provides entrepreneurs with the monetary flexibility to manage a variety of operational needs, including but not limited to, purchasing inventory, funding marketing campaigns, or covering unexpected emergency costs.
Unlike traditional loans, where you get a lump sum amount and start paying interest immediately, lines of credit only charge interest on the amount you’ve actually borrowed.
Their generally lower interest rates, coupled with this on-demand borrowing ability, make them a particularly appealing financing mechanism for many small business owners.
How Does an Unsecured Business Line of Credit Work?
An unsecured business line of credit is a unique form of financing that doesn’t require the business owner to offer any collateral as security against the borrowed funds.
This is advantageous for those who may not have substantial assets or are not willing to risk their personal property. In this financing option, the lender primarily relies on your creditworthiness and business track record to gauge the risk.
While you will still be obligated to pay interest on the borrowed amount, the absence of collateral means you won’t face the prospect of asset seizure in case you default on the loan.
This freedom from collateral requirements often makes an unsecured line of credit a preferable choice for many business owners
A business line of credit can provide many benefits to business owners. Below we’ll list just five of them:
Cover unexpected expenses. A line of credit can give your business the financial ability to adapt and cover unexpected costs, such as a sudden drop in sales or an unplanned repair.
Take advantage of opportunities. With a business credit line, you’ll have the working capital available to take advantage of opportunities as they arise. This could include expanding your business or taking on a new project.
Manage cash flow. Business lines of credit can help you manage your cash flow by giving you access to funds when you need them. This can be especially helpful during slow periods or when you’re waiting on invoices to be paid.
Lower interest rates. Business lines of credit typically have lower rates of interest than other types of financing, making them more affordable in the long run.
Flexibility. Business lines of credit offer the flexibility to only borrow the amount you need, when you need it. You’ll also have the flexibility to repay the loan over time, making it easier to manage your working capital.
How Do You Qualify for Small Business Lines of Credit?
Qualifying for a credit business line will vary depending on the lender, but there are some general requirements that most offline and online lenders will look for. Here are five criteria to qualify for credit lines for your business.
Personal credit score. Most lenders will look at your personal credit score to determine your eligibility for a secured business line of credit. A higher credit score will typically qualify you for a lower interest rate.
Business revenue. Lenders will also want to see proof of your business’s revenue. This could include tax returns, statements from your business bank account, or financial projections.
Time in business. The longer your business has been in operation, the more likely you are to qualify for a business line of credit. Lenders will want to see that you have a history of making on-time monthly payments and managing your finances well.
Collateral. While not required, some lenders may ask for collateral to secure the loan. This could include business assets such as equipment or inventory.
Business plan. Finally, lenders will likely want to see a business plan outlining your company’s goals and how you plan to use the funds from the business line of credit.
Top Lenders for Small Business Owners Seeking a Line of Credit
If you’ve been in business for at least six months and have a minimum credit score of 600, then Bluevine will give you a line of credit between $6,000 and $250,000.
2. Wells Fargo
To get a business line of credit of between $5,000 to $100,000 with no collateral required from Wells Fargo, you’ll need to be in business for two years. They don’t disclose what minimum credit score is required.
3. Kabbage
Qualifying for the financing of between $1,000 to $150,000 from Kabbage, You’ll need to be in business for at least one year and have a credit score of 640 or higher.
4. US Bank
US Bank will give you a line of credit up to $100,000 (unsecured) or $250,000 (secured) with a credit score of 680 and two years in business.
You can get a business line of credit from $6,000 to $100,000 through OnDeck if you have been in business for one year and have a 600 credit score.
Borrow up to $100,000 from this online lender with a credit score of 650+. The best part is that even new businesses qualify for business credit lines with this lender.
6. Credibly
Credibly will provide you with up to $250,000 in financing as long as you have a credit score of 560 and have been in business for six months or more.
7. Lendio
Get financing from $1,000 to $500,000 from Lendio with a credit score of only 560. Plus, your business only needs to be six months old to qualify.
8. SBG Funding
At SBG Funding, you can borrow up to $150,000 if you’ve been in business for at least six months and have a minimum credit score of only 500.
9. Fundbox
To get a line of credit of up to $150,000 from Fundbox, you’ll need a 600 credit score and your business has to be open for only six months minimum.
Comparing Top Lenders for Small Business Lines of Credit
After exploring the features, qualifications, and benefits of various lenders, it can be a lot to take in. To make your decision-making process easier, we’ve compiled a comparison table summarizing key criteria. This will help you quickly identify which lender might be the best fit for your business needs.
Lender
Min. Credit Score
Min. Time in Business
Loan Amount Range
Bluevine
600
6 months
$6,000-$250,000
Wells Fargo
Not Disclosed
2 years
$5,000-$100,000
Kabbage
640
1 year
$1,000-$150,000
US Bank
680
2 years
Up to $250,000
OnDeck
600
1 year
$6,000-$100,000
TD Bank
650+
New businesses
Up to $100,000
Credibly
560
6 months
Up to $250,000
Lendio
560
6 months
$1,000-$500,000
SBG Funding
500
6 months
Up to $150,000
Fundbox
600
6 months
Up to $150,000
Line of Credit for Small Business Versus Business Credit Card
A business credit card and a small business line of credit serve somewhat similar purposes but come with distinct features and implications.
Business credit cards are generally easier to get approved for and offer the convenience of swiping for transactions, but they often come with higher interest rates and lower credit limits.
On the other hand, a business line of credit usually requires a more stringent qualification process but offers the advantages of lower interest rates and potentially higher credit limits.
Plus, you can draw from it multiple times without reapplying, which can be a significant advantage for ongoing operational needs.
Is a Line of Credit a Good Idea for a Small Business?
A line of credit can be an excellent financial tool for a small business, providing the liquidity necessary to cover essential expenses or capitalize on opportunities as they arise.
The revolving nature of a line of credit allows you to borrow up to a pre-set limit, use the funds as needed, and repay either immediately or over a specified period.
This makes it a versatile and cost-effective option compared to other types of debt. It gives small business owners the financial agility to adapt to market changes or unexpected costs without overcommitting to long-term debt.
What Credit Score Do You Need for a Business Line of Credit?
While credit requirements can vary among lenders, a minimum credit score of around 680 is commonly needed to qualify for a business line of credit.
However, some alternative lenders may accept applicants with scores as low as 580, albeit likely at higher interest rates. The importance of a high credit score cannot be overstated; it serves as a representation of your financial responsibility.
A higher credit score not only increases your chances of approval but could also secure you more favorable interest rates, thereby reducing your cost of borrowing over time.
Business Loan Vs. Business Line of Credit
If you’re still unsure about the differences between a business loan and a business line of credit, this video by Grow By Joe offers valuable insights. Watch to gain a deeper understanding of which financial option might best suit your business needs.
Wondering how to fix your credit score? You’re not alone. Many people are unaware of what their credit report contains or even what their credit score is, despite it being a crucial factor in many life events.
If you’re dissatisfied with your current score, this article will guide you through the steps to improve it. Let’s dive in.
What Is a Credit Score?
A credit score serves as a numerical representation of an individual’s creditworthiness. This score is calculated based on various factors detailed in your credit report, which is usually sourced from credit bureaus like Equifax, Experian, and TransUnion.
The range for a standard FICO score extends from 300 to 850. A higher score signifies better creditworthiness and a lower risk for lenders, which can lead to more favorable interest rates and loan terms.
Why Business Credit Reports Are Important
Reports on your business credit are really important to a business. Here are just five reasons why this is so.
Gives a complete picture. These reports offer a complete picture of the credit history of a business. This includes information on the business’s credit utilization, payment history, and public records.
Helps assess risk. Credit reports can help business owners assess the risk of doing business with another company. This information can be used to make informed decisions about whether or not to extend credit.
Evaluates financial health. Credit reports can also be used to evaluate the financial health of a business. This information can be used to make decisions about whether or not to invest in a company.
Detects fraudulent activities. Credit reports can help business owners detect fraudulent activities. This information can be used to make decisions about whether or not to pursue legal action against a company.
Builds business credit history. Credit reports can also help business owners build a history of credit for their business. This information can be used to get loans, lines of credit accounts, and other forms of financing in the future.
A credit score of 700 or above is generally categorized as ‘good’ or ‘excellent.’ This indicates that the individual has a history of responsible credit management, including timely payments and judicious handling of debt, making them a less risky proposition for lenders.
Downsides of Having a Poor Credit History
Your bad history with credit can follow you around for a long time. Here are five downsides of having a bad credit report as a small business.
Can’t get loans. You’ll have a hard time getting loans when you have a poor score. This is because lenders will see you as a high-risk borrower. They’ll be hesitant to give you a loan because they don’t think you’ll be able to repay it.
Higher interest rates. You could be paying higher interest rates on your loans, lines of credit, and credit card balances if you have bad credit. This is because lenders will charge you a higher interest rate to offset the risk of lending to you.
Can’t get a business credit card. It can be difficult to get a business credit card with low credit scores. This is because most business credit cards require a personal guarantee. If you do get a business credit card, it will most likely have a low credit limit.
Difficulty renting office space. You may have a hard time renting office space if you have bad credit. This is because landlords will pull your credit report when you apply for an office lease.
Your business could be blacklisted. If you have bad credit, your business could be blacklisted. This means that other businesses will be reluctant to do business with you because they don’t want to be associated with a company with a bad history of credit.
How to Fix Your Credit Score with the Credit Bureaus
Let’s discuss several ways how you can fix your score with the different credit bureaus.
1. Get Your Free Credit Report
The foundational step to understanding your credit health is obtaining your free annual credit report. This can be done through the government-endorsed website, AnnualCreditReport.com.
It provides you with credit information from all three major bureaus, giving you a comprehensive view of your credit status.
2. Check for Errors
Upon receiving your credit report, it’s crucial to meticulously check for any discrepancies or errors that may be affecting your credit score adversely.
If you identify any inaccuracies, you should promptly reach out to the respective credit bureau to initiate a dispute, which could result in a correction that boosts your score.
3. Pay Your Bills on Time
Timely payment of bills, including credit cards, utilities, and other forms of debt, is a cornerstone of good credit health. Establishing a consistent track record of on-time payments will positively influence your payment history, which is a major factor in calculating your credit score.
4. Reduce Your Debt
Improving your credit score often involves enhancing your credit utilization ratio by paying down existing debt. Effective budgeting and, in some cases, debt consolidation can be strategies to manage and reduce your overall debt, thus potentially improving your credit score.
5. Use a Credit Repair Service
If you find it challenging to navigate the intricacies of credit repair on your own, you might consider enlisting the help of a professional credit repair service.
Such companies can assist you in disputing errors on your credit report and negotiating with creditors to remove negative entries, thereby improving your credit score.
6. Get a Secured Credit Card
For those with poor credit or no credit history, a secured credit card—backed by a deposit in a savings account—can serve as a stepping stone to rebuild or establish credit.
7. Become an Authorized User
Being added as an authorized user to a credit account belonging to someone with good credit can help bolster your credit score. This means that the account history associated with the primary cardholder will also reflect on your credit report, enhancing your credit profile.
8. Get a Co-Signer
If securing a loan independently proves difficult, having a co-signer with good credit can help. The co-signer essentially guarantees the loan, pledging to take responsibility for the debt if you default.
9. Use a Credit Builder Loan
Credit builder loans are a unique type of installment loan designed to help you build or improve your credit. The loan amounts are generally small and are meant to be paid back over a predetermined period, demonstrating your ability to manage debt responsibly.
10. Use a Secured Loan
A secured loan requires collateral—assets like a car or home—that can be seized by the lender if you default on the loan. While riskier for the borrower, these loans can be easier to obtain and can assist in building or improving credit if managed wisely
What Is the Fastest Way to Repair Your Credit Report?
The time it takes to repair your credit report is subject to individual circumstances, and no singular method can be universally applied as the fastest solution.
Nonetheless, a few general recommendations can expedite the process of improving your credit score.
These include paying all your bills punctually to avoid late fees and penalties, sustaining a healthy credit history by utilizing your credit cards judiciously, and focusing on debt reduction strategies.
Additionally, promptly disputing any errors on your credit report can also result in a quick improvement of your credit score.
Is It Worth Paying Someone to Fix Your Credit?
Credit repair companies often claim to offer swift solutions to improve your credit score and charge considerable fees for their services.
It’s crucial to exercise caution and do your due diligence before engaging such companies, as there are no guarantees that they can significantly elevate your credit score to your desired level.
Often, the steps they take can be undertaken by individuals at no cost.
For this reason, it’s generally advisable to first attempt repairing your credit on your own, using the various resources available for free or at a low cost, before considering paid services.
Comparison of Methods to Improve Your Credit Score
In the complex world of credit management, both for individuals and businesses, understanding your options and their impacts is crucial.
To simplify this, we present a comparison table below that outlines various methods for improving credit scores, along with their pros, cons, and recommended scenarios
Method
Pros
Cons
Recommended For
Get Free Credit Report
Free, gives you a starting point
Doesn't improve score directly
Everyone
Check for Errors
Can quickly boost score if errors are found
May require time and effort
If your report has inconsistencies
Pay Bills on Time
Steady, long-term improvement
Requires financial discipline
Everyone
Reduce Debt
Improves credit utilization ratio
Requires budgeting and financial discipline
High debt-to-income ratio
Use Credit Repair Service
Professional help, potentially faster results
Can be expensive, no guarantees
Complex credit issues
Get Secured Credit Card
Builds credit history
Requires a cash deposit, low credit limit
Poor or no credit history
Become an Authorized User
Quick way to gain good credit history
Reliant on primary cardholder's good credit habits
In the heart of the Pacific Northwest, a burgeoning tech community is marrying the age-old farming profession with cutting-edge artificial intelligence (AI). The aim? To revolutionize farming, making it more efficient, sustainable, and responsive to climate issues.
Startups like Aigen and Carbon Robotics from Seattle are leading the charge in pioneering AI-driven robots to manage tasks like weeding and real-time crop monitoring. Kenny Lee, Aigen’s CEO, believes that by infusing the agriculture sector with technological solutions, we’re setting the stage for a brighter, more sustainable future. Aigen’s recently launched robot is particularly promising, touted as a green solution, functioning solely on solar power without the need for charging infrastructure, batteries, or fossil fuels.
Such innovations emerge from the collaborative spirit of the tech community. A testament to this spirit is the partnership of Lee and Aigen’s co-founder, Rich Wurden, a former Tesla engineer. Their common goal? To use their tech expertise to tackle agricultural and environmental challenges.
While both Aigen and Carbon Robotics target weed management, they differentiate in their approach to sustainability. Wurden highlighted Aigen’s commitment to renewable energy, a feature distinguishing it from its peers.
Yet, the road to agricultural transformation isn’t without its challenges.
The paucity of expansive datasets poses significant hurdles. According to Wurden, acquiring “ground truth data” is among the top challenges. High-quality data is both scarce and costly, impeding the growth and refinement of AI models in agriculture.
However, startups are developing unique ways to gather this data. Aigen, for instance, gleans data from close to the ground, using robots to capture details mere centimeters from the soil. In contrast, companies like Pollen Systems leverage aerial imagery and individual plant data. Specializing in high-value crops, Pollen Systems combines deep learning with visual AI to provide actionable insights into crop health and numbers. Keith McCall, Pollen Systems founder and ex-Microsoft executive, emphasized that as they amass more data, their AI solutions will only get smarter.
But for startups like TerraClear, accuracy remains a pivotal challenge. As Vivek Nayak, the company’s co-founder, pointed out, transitioning from a moderately accurate model to a highly accurate one is a complex endeavor. TerraClear uses machine learning to detect and remove rocks from fields.
Despite these obstacles, McCall is optimistic. He foresees the evolution of personalized AI assistants, aiding farmers in critical decision-making, from water usage to pest control, grounded in real-time climate analytics. Given the cyclic nature of agriculture, farmers have limited windows to perfect their techniques, underlining the significance of these tools.
Shifting economic dynamics are also influencing farmers’ attitudes toward technology. A report from McKinsey & Co. highlights that nearly 39% of farmers globally plan to embrace at least one ag-tech product in the upcoming two years.
Although funding for ag-tech startups saw a dip last year, the industry remains hopeful, even if current investments haven’t reached their peak levels from two years prior.
For small business owners in the farming sector, these developments signal a future where technology will play an integral role. While challenges remain, the collaborative efforts of startups like Aigen, Carbon Robotics, and Pollen Systems suggest a promising horizon for the integration of AI in farming.
Curious about what is crowdfunding? It’s a modern way to raise funds by collecting small contributions from a large number of people, usually via online platforms.
In this article, we’ll break down the types, pros, and cons of crowdfunding, providing you with everything you need to know about this increasingly popular form of financing. Let’s get started.
There are three types of crowdfunding:
Crowdfunding With Equity – Investors get shares or profits.
Rewards/Donation-based crowdfunding – Money comes in through donations. There’s a rewards program, Usually a product or service.
Debt Crowdfunding – Early-stage companies attract investors who charge high-interest rates for business loans and the amounts are small.
This system works well for real estate investing as investors commit lower donations or capital towards any single property. It’s a great way to diversify your stock market portfolio. You just need to lock in the money for several years.
This is good for developers too. It allows them to get a big variety of investors. These developers can go to social media networks to get donations. Take note. A change in the 2012 Jobs Act provides more access to the US real estate market and crowdfunding.
Even though you can invest smaller amounts, most sites want you to be an accredited investor.
The essence of a successful crowdfunding campaign lies in its ability to raise relatively small amounts of money from a large, diverse group of people.
This stands in stark contrast to traditional business loans or investment rounds, which typically involve fewer, larger investors.
While it might appear at first glance that setting up a crowdfunding campaign is a straightforward task, achieving real success requires a thoughtful strategy, meticulous planning, and considerable effort.
Here’s how crowdfunding works.
You need to create a profile regardless of the crowdfunding site you use. Graphics and product images help to raise money. Most involve a pitch video and some supporting content.
There is usually a subscription fee to fund projects. A payment processing fee can cost 2.9% and o.30 for each transaction. Along with the transaction fees, platform fees range from 3 to 5 percent.
Setting a goal for raising funds is essential. Some crowdfunding platforms will let you collect money even if your goals fall short, but others won’t. So small business owners need to be realistic.
Small businesses need to consider their annual sales before they come up with the gross campaign sales number. Getting some investment advice is helpful. It can dictate the point where you should stop raising money to ensure success.
Corralling backers before your crowdfunding projects launch is important. And it involves marketing your business venture. Successfully funded campaigns send consistent updates through email and social media.
You can collect funds from the most successful campaigns. The reward of crowdfunding shows successfully processed payments into your account. A crowdfunding equity platform has you work with investors to close the deal. Here’s some more information about the payout fees for GoFundMe.
Tips for Successful Crowdfunding Campaigns
Crowdfunding for business is a great way to get a startup going. Here are five tips to get you started, and remember there are legal requirements with each of these.
Start With a Community
Launching a crowdfunding campaign on any platform benefits significantly from first building a supportive community.
This involves strategically reaching out to media personnel, bloggers, and social media influencers who can help create a buzz about your project. Although this approach is beneficial across all crowdfunding types, it’s crucial to remember that success often boils down to a numbers game.
While you’ll want to be discerning in who you approach, you also don’t want to overly narrow your outreach efforts, thereby limiting potential support.
Offer Good Incentives
Rewarding your backers with appealing incentives, such as branded hats, caps, or T-shirts, can entice them to contribute more generously. Implementing different reward tiers provides backers with options and creates a sense of exclusivity.
Media shout-outs and other social recognitions can also influence the average contribution size. While it’s tempting to offer a plethora of choices, simplicity can be your ally.
Overcomplicating rewards with multiple bundles and add-on options may confuse potential backers and discourage participation.
You Need Good Copy
Generic, cookie-cutter taglines and descriptions won’t inspire excitement or urgency in potential backers. To truly capture attention, your campaign must feature unique, compelling copy.
Personalize your communications by integrating notable milestones, achievements, or testimonials. Prioritize the creation of quality media assets, including photographs and videos, to make your campaign stand out.
Sharing a succinct but impactful business or project story can also lend credibility and evoke emotional investment from potential backers.
Don’t Ignore Analytics
To optimize your campaign’s performance, it’s crucial to regularly monitor and analyze key metrics. Utilizing analytics tools can give you insights into campaign traffic, contribution patterns, and overall engagement.
Understanding these numbers allows for timely adjustments to your strategies. Moreover, being transparent about how the funds will be used can boost backers’ confidence in your campaign.
Update Your Page
A stagnant campaign page is a red flag for many potential backers. Regular updates featuring new photos, content, and progress reports are crucial for maintaining donor interest.
Posts should be engaging yet concise, and incorporating multimedia elements like videos and the latest imagery can significantly enhance your campaign’s appeal.
Keeping your audience abreast of milestones or challenges not only fosters trust but also encourages ongoing engagement and support
Maybe you’re looking for angel investors for an equity program, or something more low-key. Either way, here’s a list of the most common types of business crowdfunding.
Equity CrowdFunding
Equity crowdfunding lets groups of investors fund businesses and startups. They get equity for supplying cash. Equity-based crowdfunding is different and unique from other types of funding. The business plan here targets a larger group of investors.
Investors supply the capital upfront. They get the money back plus interest.
Donation Crowdfunding
Get a large number of people to donate small amounts. There are no promises made to investors to repay or revenue-sharing deals made.
Reward-Based Crowdfunding
Startups don’t need to give up shares, or equity. Rewards are centered around the services or products for sale.
Comparing Types of Crowdfunding Platforms
The crowdfunding landscape offers a diverse range of platforms, each catering to different needs, investment types, and industries. The following table provides a quick comparison of popular crowdfunding platforms, focusing on key features that matter to both campaign creators and investors.
Platform
Type of Crowdfunding
Target Audience
Key Features
Fees
Kickstarter
Reward-Based
Startups, Innovators
Google Analytics integration
3-5% + transaction fees
GoFundMe
Donation
Personal, Small Biz
Social media integration, No deadlines
Transaction fees only
WeFunder
Equity
Early-stage Startups
Open to high & low net worth investors
Minimum of $100
Fundly
Donation
Charities, Individuals
No startup fees
$.30 per transaction
Experiment
Donation
Science Projects
Reviewed before launch
3-5%
Chuffed
Donation
Social Causes
Donors pay fees
$3 on every $100
Crowdfunder
Equity
Seed-stage Companies
For accredited investors only
At least $299/monthly
Top Crowdfunding Sites for Raising Money
Crowdfunding for small businesses means sorting through crowdfunding sites, like the ones that are listed here. Make sure to look for the best features such as marketing tools, user-friendliness and customer support. The ones listed below supply proven results for crowdfunding campaigns.
Kickstarter
This is one of the reward-based crowdfunding leaders. Keep in mind you can raise capital here but Kick starter doesn’t fund charitable causes or personal expenses. It’s a leader as far as crowdfunding websites go because it offers Google Analytics integration.
GoFundMe
This site is a crowdfunding success at least partially because of its flexibility. Get small business funds raised here with an easy and fast setup. Plus there’s social media integration and no deadlines or goals to get your funding.
WeFunder
This ranks as one of the best crowdfunding sites for early-stage tech startups. Investors get rewards for contributions. Plus, this site is available to both high net worth and non-high network investors. There’s a company-wide minimum of $100.
Fundly
This crowd funding site is a little different. It’s made for charities and individuals with no startup fees involved. The payment partner does take a $.30 per transaction fee for credit card processing.
Experiment
This is crowdfunding for science projects and experiments. Payment processing fees here are roughly 3 to 5% and each submitted project is reviewed before it’s launched. Here’s some more information on how this crowdfunding site works.
Keep in mind that you don’t need to reach your funding target crowdfunding campaign here. There’s no cost if you don’t because no one gets charged. Projects are excepted from Australia, Canada the UK, and the US.
As a creator, you never give up ownership. Any project that you create is always yours.
Chuffed
This is a site that deals with socially conscious type projects. Social enterprises, not for profits and community groups are the focus. There are some common campaigns here including funding for social programs or products. Organizations or individuals looking for money for other things like animal vet bills can use this site.
Any crowdfunding campaign here don’t charge fees to those running the campaign itself. The donors pay the payment processing fees which work out to about three dollars on every $100 donation. And if you are so inclined, you can offer to tip Chuffed.
Crowdfunder
This is a good equity crowdfunding site for seed-stage companies. They don’t charge a percentage of what you raise, but they only allow accredited investors. That’s partially defined as people with incomes of $200,000 and $300,000 over the last two years.
This isn’t the place for you if you’re looking to raise money for personal issues or causes. These accredited investors also include investment advisers and registered brokers.
There’s no percentage fee for the amount you raise. However, you’ll need to pay at least $299 monthly to use the platform. This type of monthly fee needs to be considered.
Fledgling companies need to look for features like convertible note funding. This is used when pre-money valuation hasn’t been carried out which can be converted to equity.
What is a Disadvantage of Crowdfunding?
There are administrative fees and other hidden costs to consider when launching a crowdfunding campaign. For instance, some crowdfunding platforms may charge a commission of up to 5% on the total funds raised.
In addition, there may be payment processing fees that range from 3% to 5%, depending on the payment gateway you or the platform uses. These fees can eat into the funds you’ve worked hard to raise, diminishing your final takeaway.
Before you dive into a crowdfunding campaign, it’s crucial to read the fine print on the platform you’re considering. Some platforms operate on a subscription model, requiring monthly payments that could be a burden on a startup or individual with limited resources.
Moreover, understanding the timing of fund disbursement is essential. Some crowdfunding platforms have a hold period, making you wait 60 to 90 days before you can access the raised funds, which could impact your project timelines or cash flow.
Additionally, there can be other “success fees” that are less obvious but equally impactful on your budget. For instance, some equity crowdfunding platforms charge legal reimbursement expenses that can take up to 60 days to process.
These extra fees can add another 7.5% to the overall cost of your campaign.
Being aware of all these potential fees and charges will help you set a more accurate fundraising goal and prepare for any financial obstacles that might arise.
Are you wondering what is purchase order financing and how it can help your business? If you find yourself swamped with purchase orders and lack the capital to acquire goods from suppliers, PO financing could be the quick financial solution you need.
In this article, we’ll delve into the ins and outs of purchase order financing, how it operates, and highlight the leading companies in this field. Let’s dive in.
What Is Purchase Order Financing?
Purchase order financing is a specialized form of business financing in which a third-party company, known as a PO financing company, directly pays your supplier for the goods or materials you need to fulfill customer orders.
To qualify for this type of funding, you need to present valid customer purchase orders and provide estimates of the costs from your suppliers.
Unlike traditional loans, this funding method focuses on the value and reliability of your customers’ orders, making it particularly useful for businesses that may lack an extensive financial history.
You should be aware that purchase order financing is specifically tailored to your customers’ purchase orders. Therefore, you apply for this type of financial aid before you invoice your customers.
If your concern is gaining access to immediate capital based on unpaid invoices from your customers, especially in tight cash flow scenarios, then other solutions like invoice financing or invoice factoring might be more appropriate.
How Does Purchase Order Financing Work?
The purchase order financing process is quick. So small business owners seeking financing won’t have to wait for months to get business funding.
Here is how purchase order financing works:
You receive a purchase order from your customer
You contact your supplier to get supplier costs to fulfill the customer’s order
You reach out to a purchase order financing company with the customer’s purchase order and an estimate for the supplier’s costs to get a cash advance
The supplier receives payment from the financing company, and the supplier delivers goods to the customer directly
You send an invoice to the customer for the fulfilled order, and your customer pays the invoice money to your financing company
The PO financing company deducts its fee and sends the remaining balance to you
A good thing about accessing working capital using purchase order financing is you don’t require a strong credit history.
Approval of purchase order funding often depends on the reputation of your customer and supplier. So, you can also qualify for purchase order financing even if you’re a new business owner.
Can a Purchase Order Financing Company Benefit Your Small Business?
Are you wondering about purchase order financing advantages to fuel business growth? Purchase order loans, in many cases, are good alternatives to using business credit cards, getting small business loans, and selling equity to address cash flow problems.
Here are ways purchase order financing can benefit your small business:
Borrowing money through PO financing is quick and easy. So, you can fulfill orders that you otherwise wouldn’t be able to do
There is no personal guarantee required. The financing company can fund purchase orders even when you don’t have an excellent credit history. This is because the financing company often focuses on the background or credit check of your supplier and customer
You can free up your capital to manage other business expenses as you don’t have to pay suppliers
Purchase order financing can increase your sales growth, you cannot control factors, such as when the financing company pays your supplier and when the supplier sends goods to your customer. This means offering customer satisfaction is not entirely within your control.
Also, if customers don’t make timely payments, the PO financing fees will increase, affecting your profit margin. Therefore, exploring other options to access money is a wise choice.
Different PO financing companies have different requirements for approving purchase order financing.
However, qualified businesses tend to have the following things in common:
They are B2B or B2G small businesses
Small businesses should sell tangible finished products
Customer orders should amount to at least $15,000
The customer should have a good reputation and credit history
The supplier should have a track record of delivering goods in a timely way
Companies that offer PO financing can also check the credit history of your customers and suppliers. You should talk to your purchase order financing company for detailed qualifying criteria.
Purchase Order Financing Companies
The following are the leading purchase order financing companies:
1. SMB Compass
SMB Compass is a leading company, offering funding at a competitive fee. For 30 days, SMB Compass charges a fee of anywhere between 1.5% and 3%. The minimum funding amount allowed is $25,000, and the maximum is $10 million. To qualify for purchase order financing, a business must have a 30% profit margin.
2. King Trade Capital
King Trade Capital is another reputable purchase order financing company in the US. So far, King Trade Capital has offered around $2.5 billion to over 400 public and private companies worldwide.
3. PurchaseOrderFinancing.com
With PurchaseOrderFinancing.com, you can get up to 100% financing for your purchase orders. The company offers a preliminary response within around 72 hours. If approved, funding can be done within 7-14 days.
4. Capstone
Capstone specializes in Factoring, Trade, and PO financing. Capstone is headquartered in Newyork.
5. Franklin Capital
Franklin Capital offers a wide range of financing solutions to help small businesses grow. To apply for PO financing with Franklin Capital, you must submit recent financial statements, current aging of accounts receivable and payable, a copy of vendor agreements, and purchase orders.
6. Ashford Finance
Ashford Finance claims to be more flexible than other financing options. So, you must check Ashford Finance if you cannot get PO financing from any other company.
7. 1st Commercial Credit
If you’re in the distribution business, 1st Commercial Credit can be an ideal option for purchase order financing. The company offers attractive PO financing rates of 1.5% to 5%. You must be in business for at least one year with tax returns to apply for PO financing from the company.
8. Liquid Capital
Liquid Capital claims to offer around $3 Billion in working capital to thousands of small businesses across North America. By visiting the website of Liquid Capital, you can estimate how much working capital you can qualify for.
Is PO Financing a Loan?
Contrary to popular belief, PO financing is not a conventional loan. Instead, it is a way to secure advance funds based on your confirmed customer orders, essentially bridging the gap between order placement and payment.
This means you are not obligated to pay interest rates or monthly installments (EMIs). What you will need to pay, however, are specific purchase order financing fees, which are charged by your chosen financing company.
The cost of purchase order financing can vary, with rates generally ranging from 1% to 6% for a 30-day period. Fees are dependent on various factors, including the financial stability of your suppliers and customers, and the risk assumed by the financing company.
To make an informed decision, it is advisable to gather quotes from multiple PO financing companies to compare and secure the most advantageous terms.
What Documents Are Required for Purchase Order Financing?
Typically, you will need to provide copies of a customer’s confirmed purchase order, recent financial statements from your business, a current aging report of accounts receivable and payable, copies of your agreements with suppliers, and a summary of recent transactions.
However, you should note that the list of required documentation can differ significantly between PO financing companies, and you may need to fulfill additional or varying criteria based on the company you choose.
Key Aspects of Purchase Order Financing
To better understand purchase order financing, we’ve put together a comparison table that outlines its key aspects. This table provides a quick overview of what PO financing is, how it works, its benefits and costs, the qualifications needed, and leading companies in the sector.
Criteria
Details
Definition
A financing method where a PO financing company provides advance payments to suppliers on behalf of a business.
How it Works
1. Receive customer PO
2. Get supplier costs
3. Contact PO financing company
4. Supplier paid by financing company
5. Customer pays invoice to financing company
6. Remaining balance sent to business
Benefits
Quick and easy, no strong credit history needed, enables growth.
Costs
Fees range from 1% to 6% for 30 days.
Common Qualifications
B2B or B2G, sell tangible finished products, customer orders at least $15,000, reputable customers and suppliers.
Top Companies in 2022
SMB Compass, King Trade Capital, PurchaseOrderFinancing.com, Capstone, Franklin Capital, Ashford Finance, 1st Commercial Credit, Liquid Capital
Purchase order financing can be an invaluable resource for businesses grappling with inadequate cash flow to fulfill significant customer orders.
However, it’s crucial to partner with a PO financing company that offers reasonable fees. As part of your research, it may also be beneficial to read up on other financial terms and options, such as business loan jargon you should know, and guides on securing a small business loan.
This preparatory work can equip you with the knowledge to effectively navigate the complex landscape of business financing.
Crowdfunding marketing is a good way to raise money for your small business. But not all crowdfunding campaigns meet their funding goals. Only a few successful crowdfunding campaigns, which make the best use of crowdfunding marketing, raise capital as they intended.
If you want to raise money through crowdfunding, this crowdfunding marketing guide can help you meet your funding goal. Let’s dive in.
What Is Crowdfunding?
Crowdfunding, as the term suggests, is a financial practice that involves raising funds from a large, diversified pool of individuals, often facilitated via the internet.
In this democratic process, a large number of people contribute relatively small amounts of money to support a business, project, or cause.
Unlike traditional methods of business financing that often involve a few major investors or institutional lending, crowdfunding turns to the collective for financial backing.
Investors in a crowdfunding initiative vary in their motivations and rewards.
Depending on the specific type of crowdfunding model chosen, they may make their financial contributions either charitably, with no expectation of a direct financial return, or they may receive equity stakes, product samples, or other incentives based on their level of financial contribution.
Here are the four types of crowdfunding for raising capital:
1.Rewards-Based Crowdfunding
In this customer-centric type of crowdfunding campaign, a business incentivizes financial support by offering rewards such as early access to its product or service, exclusive merchandise, or special experiences.
These rewards serve as both a thank-you to investors and an encouragement for others to also contribute, thereby enhancing the potential for the crowdfunding project’s success.
2. Equity-Based Crowdfunding
Equity-based crowdfunding is a more formalized small business financing option where investors receive a small percentage of equity ownership in the business as a trade-off for their monetary support.
This establishes a more enduring financial relationship between the investor and the enterprise, and gives the investor a vested interest in the long-term success of the business.
3. Debt-Based Crowdfunding
Also known as peer-to-peer lending or crowdlending, debt-based crowdfunding requires that businesses repay the funding money they receive from investors within a predetermined time frame.
The repayment terms are often clearly outlined in a contractual agreement, and investors may or may not receive interest on their contributions, depending on the specific terms and conditions laid out by the crowdfunding campaign.
4. Donation-Based Crowdfunding
In this altruistically-driven type of crowdfunding, investors contribute small financial amounts to a business or social cause without the expectation of any tangible return on their investment.
This model is often used for charitable organizations, social ventures, or community projects, and relies heavily on the goodwill of contributors.
Comparison of Types of Crowdfunding
It can be difficult to understand the nuances between different types of crowdfunding at a glance. The table below breaks down the four main types of crowdfunding, offering you a quick comparison of each to help you choose the one that best suits your business needs.
Type of Crowdfunding
Investment Incentive
Payback Required
Best For
Rewards-Based
Product/Service
No
Startups, Creative Projects
Equity-Based
Shares in Company
No
Growing Businesses
Debt-Based
Financial Return
Yes
Established Businesses
Donation-Based
None
No
Charitable Causes, Personal Ventures
What Is Crowdfunding Marketing?
Crowdfunding marketing is a specialized subset of marketing activities that businesses undertake before, during, and after their crowdfunding campaigns.
This proactive approach is crucial for success, as well-thought-out crowdfunding marketing strategies can amplify the reach of the campaign, capturing the attention of a broader audience of potential investors.
Effective marketing can thus translate into more substantial monetary support, enabling small businesses not only to meet but potentially exceed their crowdfunding objectives.
Why Use a Crowdfunding Marketing Strategy?
Here are key reasons why you should use a crowdfunding marketing strategy:
When you promote your campaign, your reach a large group of people, increasing the chances of your business getting funded
A powerful marketing campaign can help you create relationships with your audience
Creating and running a crowdfunding marketing campaign offers you opportunities to engage with your community, which can foster trust and confidence
Also, crowdfunding marketing campaigns leverage social media, email marketing, and other marketing avenues to maximize the success of your crowdfunding.
Strategies for Successful Crowdfunding Campaigns
The following are proven strategies to make your crowdfunding project successful:
1. Build an Audience for Your Crowdfunding Marketing Campaign
The success of your crowdfunding campaign largely depends on the size of your audience who believes in your business venture. So you should start building an audience for your crowdfunding marketing campaign in the pre-launch stage.
Create a buyer persona for your ideal audience and start finding such people. Social media can be a great place to start. Being active in relevant groups on Facebook, LinkedIn, and Reddit can help you find the right people who believe in your crowdfunding project.
2. Construct a Timeline for your Crowdfunding Promotion
Promotion for your crowdfunding works best when you create a timeline for your campaign, for a timeline will keep your team members on the right track.
A typical timeline for crowdfunding marketing includes building your audience, testing your launch, launch of your marketing campaign, and post-campaign updates.
3. Design a Landing Page on the Crowdfunding Platform
A landing page plays a crucial role in crowdfunding marketing. A landing page can help you build an extensive email list in the pre-launch stage.
Make sure the landing page has the following elements:
Strong, clear call to action
Visual content to keep the target audience hooked
Clear, concise, persuasive copy
Responsive design
You should also include sharable social media links on your landing page so that your audience can easily share your campaign on social media platforms.
4. Create Content and Messaging for Your Audience
Content is king in all forms of marketing. To create engaging content that delights your audience. A good story has the power to move people. So make sure you use storytelling in your content.
Some effective content types for your crowdfunding marketing campaign include but are not limited to:
Blog posts on your website
Guest posts on relevant websites
Social media videos
Webinars and podcasts
Instead of keeping the spotlight on yourself, focus on how the crowdfunding campaign can benefit your audience.
5. Promote Your Crowdfunding Campaign Via Social Media Channels
Social media is a powerful platform to promote your crowdfunding campaign to a large audience.
Here is a step-by-step process to promote your campaign page on social media:
Pick the right channel (Facebook, Twitter, Instagram, LinkedIn, etc.) where your audience hangs out
Choose the appropriate hashtag for your campaign
Plan a social media content strategy (including informative, engaging, persuasive posts)
Track results and tweak your strategy to improve results
Roping in relevant influencers can catapult the reach of your campaign. So you should consider including influencers in your social media promotion.
6. Gamify Your Campaign to Raise Awareness
Applying gamification tools to your campaign can increase the engagement of your community, thereby increasing awareness of your crowdfunding project.
Here are some popular tools you can consider using in your campaign:
Fundraising progress bar
Leaderboard for the top investors
Badges and trophies
Prizes and incentives (tangible items or virtual passes)
7. Employ Email Marketing Strategies
Email marketing is one of the cheapest marketing strategies to promote your fundraising campaign. In the pre-launch stage, you can experiment with your email campaigns to check what works best when you collect emails from your audience.
Here are a few tips that can help you succeed in email marketing:
Write clever body copy to appeal to the human interest
Include social sharing links in your emails to enable the audience to share your campaign
Leverage the power of animated video and visual content
Use a powerful CTA in your emails
You should also take the help of email marketing tools to run a campaign. Analyze outcomes to make necessary changes for getting better results.
8. Provide Product Demos to Promote Usability
Offering product demos can encourage more people to fund your venture. This is because product demos let your community experience how good your product is. So include product demos in your crowdfunding marketing campaign.
If users allow, you can create videos of them using your product and share them on social media. Doing so can encourage more people to invest in your crowdfunding campaign.
9. Attend Events to Increase Your Audience Base
To run a successful crowdfunding campaign, you should start attending events relevant to your industries to increase your audience base. Research the web to find relevant online and offline events where your potential investors are likely to be present. And figure out ways to participate in those events.
Podcast interviews, video interviews, and online conferences are a few popular events you can explore to increase your audience base.
The crowdfunding fee structure varies from site to site. Crowdfunding agencies usually charge 5-10 % of all funds raised. Depending on the crowdfunding platforms, you may also have to pay due diligence fees, payout fees, or other charges.
More Great Crowdfunding Marketing Tips
Here are some more great Kickstarter Tips from Crowdfunding experts:
