by speedadmin | Jan 31, 2023 | Blog
Managing a property will be much more than credentials on paper, with expertise and competence going a long way in how well you achieve success in your operations. With this in mind, vetting your aspiring property managers will be crucial before settling for your pick. Below, we tackle some essential tips to include in your checklist when evaluating your ideal candidate for property management.
Do a Background Check
The first thing to do is perform a background check on your candidates. For this, look into the years that they have been managing properties. Next, consider the type of property they manage, whether commercial, single-family, or apartment. This will allow you to determine if they are the perfect fit for handling unique challenges you may encounter with your operations. Lastly, check if your candidate manages multiple properties with trusted companies, often working with numerous properties.
Evaluate the Management Techniques
Every property management team will have its preferred management technique, with some likely to fit in with your needs while others may fail to meet your expectations. With this in mind, consider the number of staff your managing team will be working with and if they are sufficient to handle your property needs. Next, ask about the repairs and maintenance and whether these will be paid as cost or cost plus.
In addition to the above, evaluate the tenant screening and eviction processes that your managers intend to utilize. Lastly, ask about the tenant responsibilities, as these will give you an insight into what you are required to cater to as a property owner. If the answers fit in with your preferred criteria, you are likely to have a suitable partner you can rely on for a successful venture.
Consider the Property You Intend To Purchase
While your property manager will be critical in evaluating your property management needs, you also need to consider the type of property you wish to buy. For this, check the vacancy rate in your preferred area of investment. Next, check the type of property you want to invest in, whether a single-family or an apartment. This will help you evaluate the type of return to expect and the kind of work that your property manager will put in.
If you are interested in venturing into property management, the above tips will be crucial in helping you evaluate the ideal partner to work with. Speed Funding will also come in handy in providing suitable funds for your portfolio, with our team working round the clock to underwrite funding plans suited to your venture. Call us today to help you get started on your financing journey.
by speedadmin | Jan 24, 2023 | Blog
Most business owners would have a few good suggestions for you if you asked them where to get a loan. However, if you ask these business owners about private equity financing, they would not be quick to answer. When asked where to find private equity, most entrepreneurs recommend consulting a lawyer or accountant. This article will provide an overview of private equity financing so you can decide whether it is right for your business.
Is Private Equity Financing Right For You?
Small business entrepreneurs often say they don’t know where to get capital or that their area is underserved. Also, many private equity firms are only interested in companies of a specific size, industry, and cash flow profile.
Private equity funds are drawn to companies they can understand, provide value to (at the right price), and connect with. Then, private equity investors will prioritize the deals they think are ideal for them
Some of the pros and cons of private equity financing include the following:
Pros: Funding options outside of what a regular bank would provide, opening the door to projects like expansion and mergers that would otherwise have been impossible.
Cons: Private equity financing is expensive. Bank financing is always the most cost-effective option, regardless of the state of the economy or the credit cycle.
The biggest drawback, however, isn’t monetary; instead, it’s allowing another person into your business as a partner. Small business entrepreneurs don’t realize how uninvolved lenders are. The lender demands frequent disclosures, payments, and covenant adherence but isn’t involved in your company’s daily operations. Private equity investors approach things differently. The investors will form a board of directors (or join an existing board), establish policies for using any new funds, and design a compensation plan for the company’s leadership.
Bottom Line
It’s essential to consider the upsides of private equity financing, but also whether you can handle someone being that involved in your company. This is a breeze for many business owners. They might already be answering to an owner, partner, or relative. However, for those who founded or have solely managed the business, this is a radical shift in organizational structure.
by speedadmin | Jan 17, 2023 | Blog
The business of importation can be quite lucrative. That’s because you’re getting goods at low prices from other countries and selling them for a profit. But while it’s possible to earn good money from the importation business, you’ll definitely need capital to get into it and continue operating.
How Money Flows in Importing Business
Most manufacturers will need you to prepay for products before you can get them. On the other hand, your customers may take 30 to 60 days before paying for products. This leaves you with a financial challenge because the business needs to continue running. To solve the issue, here are the different types of import financing you should look into.
Asset Based Loan
In this type of import financing, you sell your accounts receivable or credit accounts to the financing company. Usually, you will be required to sell your accounts receivable at a discount. This can mean selling them at 80 to 90% of your credit accounts’ value. The financing company will give you an advance payment at a fee, allowing you to have access to capital to keep running the business.
Use Inventory
Inventory financing is an effective way of funding an importation business. Here, you secure a loan using your current inventory, and therefore have access to cash to get goods that your customers need. It’s a great strategy because it enables you to increase your inventory without affecting your cash flow as long as you’re able to service your loan. The three types of inventory financing you can consider include floor planning, blanket inventory lien, and field warehousing.
Purchase Order Financing
Purchase order financing is almost similar to factoring accounts receivable. However, in this case, you sell your purchase orders and invoices to the financing company, which will take responsibility for billing and collecting money from customers. Once the products are manufactured, the financing company collects money from customers and takes its cut, then pays you the profit. Learn more about purchase order financing when considering this type of funding.
These types of import financing can help you access cash and maintain your working capital. Are you in this line of business and wondering where you’ll get the capital to keep running the business? Talk to Speed Funding. Our financing company will walk you through your options, allowing you to make an informed decision.
by speedadmin | Jan 13, 2023 | Blog
Marketing has always been an important aspect of running a business. As our world becomes increasingly electronic, tending to one’s digital presence has mushroomed in importance. Advertising through digital means is especially critical for startups since they lack the status of seasoned brands. Instead, they have a youthful attitude and fresh perspective. Expressing these positives through modern means is imperative. If you run a young company, here are some digital advertising tactics to help make this happen.
Affiliate Marketing
This strategy involves partnering with social media influencers and various online content creators. Businesses seek individuals willing to promote third-party goods and services to their audiences, integrating corporate praise into the body of their material. They then pay for the subsequent exposure provided to eager fans. This is a fantastic way of building grassroots interest, especially for startups. Connect with an affiliate by using recruitment software specifically for this purpose. Once you have a decent match, choose whether to pay a flat fee or an amount based on subsequent sales.
Social Media Marketing
It’s no secret that social media has taken over. If you want to be seen by potential patrons, there’s no better virtual hangout. As important, this form of advertising is considerably less expensive than more traditional forms of media. Create accounts on every platform, including those yet to assume the spotlight. If you do, you’ll be ready to take advantage the moment they take off. One drawback is it can be difficult to keep track of all your accounts simultaneously. A social media marketing tool can help manage efforts in this arena.
Referral Marketing
Here’s another method of gaining traction in the public’s eye. With this tactic, you transform patrons into mini-recruiters. The cost of offering discounts or exclusive products in exchange for sending others your way is minimal. Even better, it’s a financially secure maneuver in that you only pay when a new customer comes to you. This is unlike traditional forms of advertising, wherein running a commercial costs money, even if it’s completely ineffective. Creating and running a referral program is easiest with a referral program tool. Besides helping manage your referral marketing campaign, it can provide analytics that shed light on the relative effectiveness of your efforts.
Startups need a variety of powerful marketing avenues to generate consumer interest. Those bound to work best are cutting-edge, digital solutions. Involve your company in a wide variety of technological advertising efforts. The results are likely to be satisfying.
by speedadmin | Jan 10, 2023 | Blog
If you are looking to avoid debt financing when starting your company, chances are that you will opt for equity financing. This means giving up a stake in your business to investors for a share of your company’s future profits. It allows you to avoid the often tedious monthly repayment terms and interest rates that other finance options come with. So what are some pros and cons to expect from equity funding?
Pros of Equity Financing
Flexible Repayment Terms
Relying on equity funding comes with flexible terms, with investors only recouping their investment when your company becomes profitable. If your company fails, you will be exempt from repaying the loan, minimizing any losses your company may be experiencing.
Rapid Scaling
Equity funding is a fast way of obtaining significant funds that numerous companies require, making it possible to take care of urgent operational needs. With this, businesses can experience rapid scaling, with enough funding helping them to take advantage of one-off opportunities that allow them to get ahead of competitors.
Ideal for High Growth Industries
If you are a start-up in a high-growth industry, equity financing will be ideal for your company. Venture capitalists are attracted to companies with a promise of high growth, with businesses predicted to generate high rewards being the best candidates for equity funding.
Cons of Equity Funding
It May Be Hard To Get
Getting equity financing requires proof of a strong business plan, with investors opting for companies that show a high promise of profitability. Due to this, some companies may miss out on funding due to a lack of a solid foundation.
Investor Control
Unlike other funding options, investors get partial control of your company, with involvement often based on the percentage of equity in the business. This means they will likely have a say in how your company is run, with control falling on the majority shareholder. This also puts you at risk of removal from your leadership position due to a majority vote.
Ultimately, choosing equity financing will depend on your company’s needs, with the above pros and cons shedding light on what to expect. If you need funding for rapid scaling, reach out to Speed Funding today. Our team can help customize a financial plan that suits your long-term goals.
