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Good vs Bad Debt – How to Use the Former to Grow Your Business

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Good vs Bad Debt

Debt is a word many people dread, and for good reason. We spend most of our lives paying off debt – student loans, car finance, credit cards. No wonder we have come to associate debt with bad and difficult times when we have very little money and need to be careful with our spendings. However, not all debt is created equal, and certainly, not all debt is bad.

In fact, there are times when incurring a little debt is good for the long term health of your finances. If you are going into debt to buy a new, luxurious car, go on a lavish holiday to some exotic place, or afford any type of short-lived fun; that creates a bad debt. However, if you take a loan to invest in your business and modernize your office, or find a great opportunity for residential real estate investing and borrow some money to purchase a rental property; that is definitely a good debt. If a  loan can help you to make investments and generate returns further down the line, it is worth to take it. This is especially true when you’re running your own business.

Business debt can actually help you to grow your company. But how do you know when its good debt rather than bad debt? When is debt a good investment for your company? And are there any other options?

Debt or Equity?

When business owners are looking for capital, they have two main options. Sell shares in the company, or secure a loan.

Equity financing means there’s no need to repay funds. There’s no extra financial burden placed on the company. But there’s a drawback. If you opt for this type of funding you have to share profits and decision making responsibilities with your shareholders.

In contrast, debt financing means taking on a loan and interest. This may become problematic if that loan doesn’t help your company to generate greater revenue. But, in contrast to equity financing, you maintain full control of your business profits and decisions.

But before you decide which financing option is for you, you need to know when it’s appropriate to take on business debt. Here are a few times when taking on business debt is a good idea.

When Business Debt is Good Debt

Investing in Marketing

You may have the most amazing product or service on the market, but if no one has heard of it, you’re not making any money from it.

Marketing often comes way down on the list of business essentials. It seems that there’s always something more pressing to pay for.

That is why creating a marketing budget is a good reason to accumulate a little debt. That money can be used to pay for PPC ads, billboards, magazine space or advert design. And to develop a long-term marketing strategy.

And the upturn in customers and revenue should help you to pay back the loan you’ve taken out.

Taking on New Employees or Upgrading Your Workspace

If you started up your company alone, you’ve likely endured long days and short weekends in order to get things off the ground. But there’s only so much you can get done in a day.

When you’ve reached your limit and need to add another pair of hands to the team (and/or the space for them to work in), it may be time to take out a short-term loan. Take into account wages and any costs associated with hiring a new employee when deciding on how much is appropriate to borrow.

A new employee could bring new skills to your business, allow you to improve the speed and quality of current operations, or give you the time to step back and strategize over the bigger picture.

Either way, the aim is that by expanding you’re workforce and/or workspace you’re increasing the company’s income potential – even if it means initially going into a little debt to be able to afford this expanding.

Improving Your Customer Offering

The longer you spend in your industry, the more you spot areas for improvement. You might realise that your product no longer fully meets your customers’ needs. Or a new competitor has launched a service that outranks yours.

You might even realise that a certain business tool or program is needed in order to improve your customer experience and business performance.

An injection of money at this point can help you to develop your product or service, or even offer new products and solutions to your clients, thus staying at the top of your game and ensuring a good level of income.

Building Your Credit Rating

Your business has a credit rating just like you do. And you need it to have a good rating if you want to secure a loan.

Requesting and paying back smaller loans in the early stages of your company’s life can help you to secure bigger loans in future. It may also help you to develop a relationship with a specific bank or lender, again making future loans easier to come by.

As you can see, not all business debt is bad debt. Take on good debts in order to grow your company and your revenue.

Sienna Walker is an avid business and careers blogger, a self-improvement advocate, and an ex-tutor. Sienna believes in lifelong learning and sharing knowledge, and might often be found online, writing posts and participating in online discussions.

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3 Things to Do If You Want a Career in Business Management

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Career in Business Management

Many ambitious people are eager to work toward a successful career in business management, and they work hard to get where they want to be. If this is something that you would love to achieve, it is important to think about the steps you need to take in order to make your career dreams into a reality. There are various ways in which you can boost your chances of success, and by planning ahead, you will find the whole process far easier.

Getting into a career like this is not always easy, and it can present a big challenge to those with minimal management skills and experience. However, one thing you can do with greater ease these days is to turn to modern technology to boost your chances of career progression. From providing you with job opportunities to giving your access to better resume tips, there are many ways in which you can benefit by going online. In this article, we will look at some of the things you can do if you want a career in business management.

Some Steps to Take

There are a few key steps you can take online if you want a career in business management. Some of these are:

Improve Your Skills and Qualifications

One of the things that you may need to do in order to boost your chances of success is to improve your skills and qualifications. In the past, this might have meant disrupting your current schedule and commitments to go to college, but these days, you can do this in your spare time and from the comfort of your own home. There are many online learning facilities that provide you with access to courses and training, and this can make it easier to earn the qualifications and gain the skills that you need.

Try to Gain Experience

Another thing that you should do is to try and gain some experience, as this is something that will look good on your resume and means that you will be able to impress interviewers. If your current job does not give you any opportunities to do this, you can always contact charities to see whether they need any volunteers in management positions. In addition, you can contact local businesses to see whether they are able to help with any work experience opportunities that you can undertake in your spare time.

Register Your Details for Relevant Jobs

Naturally, when you want to get into a management position in the world of business, you need to be on the ball when it comes to finding relevant opportunities. One simple solution to this is to register your details for relevant business management jobs online via the various jobs agencies that are in operation. You can then be informed of new opportunities automatically, which saves you time and inconvenience.

These are some of the things you should do if you want to boost your chances of a successful career in business management. 

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Tax & Accounting Startup TaxBit Raises $130M Series B at $1.33B Valuation

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Tax & Accounting Startup TaxBit Raises $130M Series B at $1.33B Valuation

TaxBit, the leading tax and accounting software provider for the digital economy, announced today a $130 million Series B funding round at a $1.33 billion valuation. The round was led by IVP and Insight Partners with additional participation including Tiger Global, Paradigm, 9Yards Capital, Sapphire Ventures, Madrona Venture Group, and Anthony Pompliano. In conjunction with the financing, Tom Loverro, General Partner at IVP, and 2021 Forbes Midas List awardee, has joined TaxBit’s Board of Directors.

This investment comes just five months after the company raised a record-breaking $100M Series A. Since that time, TaxBit has tripled headcount while launching HQ2 in Seattle, deployed services with the IRS, and entered into partnerships with many leading digital asset platforms. Dozens of financial institutions are deploying TaxBit’s Tax Center Suite technology. Many of these platforms will be announced throughout the remainder of the year as 2021 tax season approaches, with FTX US revealed today.

FTX CEO Sam Bankman-Fried commented, “FTX US is excited to partner with TaxBit in bringing a world-class tax experience directly to our platform. FTX US users will have access to portfolio performance statements, tax optimization tools, and year-end tax forms that make it easy for users to report and file their taxes. TaxBit’s technology supports FTX’s commitment to compliance while focusing on the customer experience.”

TaxBit will use the funds to scale its multi-channel ecosystem of tax and accounting offerings across enterprise, consumer, and government sectors. The company plans to double headcount by the end of the year and continue to open new offices in the USA and UK to fuel international expansion.

“Tax reporting requirements make TaxBit a ‘must have’ for both crypto-native companies as well as traditional financial services companies as they increasingly embrace crypto,” said Tom Loverro, General Partner at IVP. “TaxBit has emerged as the clear market leader in its offering to enterprises and tax authorities. It is a privilege to partner with Austin and the TaxBit team on their next phase of growth.”

“TaxBit is pioneering a comprehensive suite of cryptocurrency tax products, and is poised to capitalize on incredibly strong industry and regulatory tailwinds,” added Ajay Vashee, General Partner at IVP, who will join the company as a board observer.

Nikhil Sachdev, Managing Partner at Insight Partners, will join the company as a board observer. “The tokenization of our global financial system is underway, and our current tax, accounting and ERP software infrastructure isn’t equipped to manage this shift. TaxBit has emerged as a leader in the industry and the platform helps everyone from consumers, exchanges and government to enterprises easily manage tax compliance and financial reporting on crypto transactions. We’re thrilled to be part of this next chapter of TaxBit’s rapid growth.”

Digital asset adoption continues to quickly go mainstream as institutional investors and global payment providers offer cryptocurrency alongside traditional assets. The digital economy’s need for tax and accounting software grows with the industry as regulators require more formal reporting practices.

“We are living in a time where everything is going digital, including traditional assets,” said Austin Woodward, TaxBit CEO. “As we’ve built and deployed modern tax and accounting software tailored to digital assets, it’s become clear that legacy tax information reporting solutions are built on antiquated technology that provides a poor client experience. TaxBit is changing the game by providing clients and their users modern, real-time technology that affords visibility and tax optimization opportunities throughout the year.”

About TaxBit

Designed by CPAs and tax attorneys, TaxBit is the leading tax and accounting solution for the digital economy. TaxBit’s customers include the world’s top exchanges, institutional investors, governments, and individuals. As the first and only company to build real-time ERP accounting software for commodities, equities, and other digital asset investments, TaxBit provides enterprise clients with seamless end-to-end solutions including core accounting suite, customer management suite, and form issuance. TaxBit Consumer makes filing taxes on digital asset investments simple and painless, while equipping them with real-time directional insights 24/7, 365. TaxBit connects all digital asset transactions across every exchange so that individuals and enterprises can accurately file their taxes, manage their portfolios, and make tax-optimized trades, all through TaxBit’s seamless & secure software. TaxBit has HQ in Salt Lake City and Seattle.

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Business and Finance

Need Money Now? Here Are 7 Ways You Can Gather Small Cash Fast

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Need Money Now? Here Are 7 Ways You Can Gather Small Cash Fast

Running short on your monthly budget? Don’t worry, we have you covered.

This article will provide you with 7 of the best quick money options to get you out of your small cash binds. Obviously, when you need money and that too urgently, a small personal loan seems like the best way out. There are no obligations, other than repaying the loan, and also the money is completely legal.

In this article, you’ll find everything, including short-term personal loans and other money-making tricks to satiate your financial needs.

So, stay with us and keep reading to know more.

Online Installment Loans

As already mentioned short-term personal loans are one of the first thoughts to cross many minds when they need urgent money. However, most don’t really know where to look and what to look for in a short-term personal loan.

A rather convenient way to access these unsecured loans is going through an online money lending network. Of course, accessing lending options online reduces the paper-tussle and also speeds up the process.

Typically, taking out an installment loan from a private lender or a bank would require you to visit their corporate office. On the contrary, the online process eliminates all these hurdles.

All you need to do is fill in some basic details, choose the term and amount of the loan, and submit your application. It would usually take not more than 2-3 minutes. Plus, you stand a better chance of receiving an economical loan and that too without having to share your credit history or score.

Payday Loans For Ultra-Short Fund Needs

An alternative to installment loans is a payday loan. While installment loans, as the name suggests, are to be repaid in parts, payday loans are to be repaid one-time.

Notably, these loans are most suitable when you need a very small amount of money. For example, accessing a payday loan for a $500 loan is wise, but when you need more money, it would be better if you look for installment loans.

Although, many lenders offer payday loans up to $5000 or even more, you should only choose these loans when you know you can repay in time and without fail. The biggest issue with payday loans is the processing fee and comparatively high-interest rates against conventional loans.

Liquidating Your Assets

The aforementioned loans are mostly for those who do not have any assets to liquidate or mortgage against. Of course, when you have no savings or investments, you can presume to have no backup. And you’re left with no other option than seeking a short-term personal loan.

If you already have some investments, let’s say, mutual funds, it is better to sell them off rather than taking out a loan. The benefits of liquidating your assets are you need not to pay any interest. But instead, you also get access to your earned profits, in terms of dividends.

That being said, there is also a catch to this option. It is only advisable to liquidate your assets if they have reached maturity. In some cases, your bank or your financial manager won’t let you sell funds.

Mortgage Against Your Property

Another alternative to liquidating your assets is seeking a mortgage against them. While most commonly, a mortgage is offered against an immovable asset, such as a piece of land or a house, but you can also access a mortgage against other high-value assets.

For example, you can seek a mortgage against your mutual fund’s policies, or you can also place your insurance policy as collateral.

The benefit of seeking a mortgage against your assets is only that you still own your assets. They are only being placed as collateral and will only be redeemed if you fail to repay your debt.

Organizing A Garage Sale

Quite possibly you’d have a lot of stuff at your home or your office that you don’t use anymore. There could be endless reasons for it including you may not need them anymore.

It is a good idea to sell them off to make some money when you know you don’t need them anymore.

Organize a garage sale for the stuff that you don’t use or need. Not only will it bring you the necessary funds but also help you get rid of all the clutter from your place.

Take Up A Side-Hustle

One of the best ways to make some quick money is by taking up a side-hustle. In fact, according to a survey, nearly 63% of Canadians have a part-time job apart from their regular stream of income.

Taking up a part-time job will solve your financial problems once and for all. Many part-time jobs are available either on a contract or hourly basis. It means you can expect to receive the payment for the work you do as soon as you complete and submit it.

It is noteworthy that you have endless options to choose from when it comes to taking a part-time job. You can take up freelance graphic design projects, or content writing orders. Or you can also take up a waiter’s job at a nearby diner. All you need is to know that you have the necessary skills needed to perform the task you take up.

Loan Against PF or 401(k) Account

Most of the time, financial advisors opine that withdrawing from PF or 401(k) accounts will harm a person’s credit score. And, as a matter of fact, this is true to some extent.

Despite the fact, there could be situations where you may find no other solution to your financial crunch.

But, still, it is rather best to seek a loan from your 401(k) account. The benefit is, your PF is still secure and all the interest that you pay adds up to your savings only. However, there’s a catch to this as well. When you take out a loan from your PF account, it is rather important that you pay it off in time. Otherwise, it may reflect as a distribution of payments and you may have to pay a penalty on the amount you borrow.

Facing a cash crunch is no ordeal. It could happen to anyone. What’s rather important is steering out of this financially troubling situation the most efficient way. You need to find a solution that not only fulfills your needs but also protects your financial future.

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