Welcome to our LIVE twitter chat with @HodgesSam (https://t.co/a4pCicajTh) of @FundingCircleUS on #smallbiz loans #YSBAnswers
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
Pumped to hear the one and only @HodgesSam from @FundingCircleUS drop knowledge bombs on #smallbusiness in just a few #YSBAnswers
— Brayden McCarthy (@btmccarthy) August 13, 2015
A1. We’re a marketplace lender matching SMBs who want to borrower w/ investors #YSBAnswers pic.twitter.com/YSiEuI9y8W
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A1b. We help small businesses get access to the credit they need to grow. #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A1c. To date we’ve lent over $1B to great small businesses across the US and UK. #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q2:What are the different categories of financing available to a small business? #YSBAnswers @FundingCircleUS
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A2a Options include credit cards/lines, merchant cash advances, factor financing, equity, crowdfunding or term loans. #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A2b. @FundingCircleUS we focus on loans of $25K-$500K over a term of 1-5 years #YSBAnswers pic.twitter.com/SPHwPKN8tb
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q3:How is a loan different from a merchant cash advance? #YSBAnswers @FundingCircleUS
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A3a. Both MCAs & loans offer fast access to finance, but MCAs typically very shortterm w/ very high rates #YSBAnswers pic.twitter.com/aTRN9e9grs
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A3b. Learn more about pros & cons of merchant cash advances with @smallbiznerds http://t.co/ttBqcHxdqY #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q4:What can you tell us about the borrower bill of rights which you have signed on to? #YSBAnswers @FundingCircleUS http://t.co/qd232OtaGJ
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A4a. We think you deserve access to fair & affordable funding so we created & signed #BillofRights with a coalition of lenders. #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A4b. We believe you have rights! We’re setting high standards for SMB lending: http://t.co/Upr8RWkDtH #YSBAnswers pic.twitter.com/MraktpAFNi
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A4c. But don’t take our word for it! Others say: @forbes http://t.co/bHTa9NeDNt & @smallbiznerds http://t.co/ulZXSJPCFL #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q5:What are the pros/cons of a bank loan vs. an online lender? #YSBAnswers @FundingCircleUS
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A5a. Bank loan vs. online peer-to-peer loan: Both = affordable but online is faster/more personalized #YSBAnswers pic.twitter.com/xGkJTj39P2
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A5b. Banks offer affordable rates if you can actually get one. Bank #SMB lending down since recession #YSBAnswers pic.twitter.com/gpANNPpYYG
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A5c. We were founded by small business owners (gym franchises) and we were rejected 97 times by banks for loans! #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q6:How should I go about researching what’s right for me? #YSBAnswers @FundingCircleUS
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A6a. Google is your friend! Do your research on objective sites like @fundastic @nerdwalletsmbiz. Don’t take 1st offer you get #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A6b. Responsible brokers like @fundera @multifunding help you find the right loan option if you’re not sure what you need. #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A6c Always investigate potential lenders on customer review sites like @Trustpilot. Example: http://t.co/yIzyRxyZ8n #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A6d. Bad gut feeling about a lender? You can always say no to an offer! Always call & ask questions if you’re confused. #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q7:What kinds of fees should I expect? #YSBAnswers @FundingCircleUS
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A7a It depends on the type of lender! Could include fees for origination, closing, servicing, and/or early repayment penalties #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A7b A2 We only charge a 1-time origination fee of 0.99-4.99%. No hidden fees or charges! Not all lenders are upfront about costs #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A7c Bottom line: Know what you can afford & demand to know TRUE cost of your loan. http://t.co/kisGdeD6Gm #YSBAnswers pic.twitter.com/IA3KDgMIE6
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q8: (@btmccarthy) how can we stop shady brokers preying on #smallbiz. #YSBAnswers @FundingCircleUS
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A8a Transparency is key! =We work w/ high quality brokers/advisers who help SMBs get fair access to the capital they need. #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A8b If you’re working with a broker/adviser ask them to clearly disclose their fees and how they work with lenders. #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q9: (@fundera) What types of industries have the hardest time finding small biz loans? #ysbanswers @FundingCircleUS
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A9a. SMBs who don’t fit banks’ traditional definition of collateral can look to online lenders for more flexibility #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A9b Restaurants, retailers & other services bizs — with great cashflow but limited hard collateral — can look online for help! #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q10: (@DanePollock_) What’s the difference between a bank loan and a p2p loan? #YSBAnswers @FundingCircleUS
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A10a Big difference: flexibility. We look at more than your credit score & think more creatively than banks re: your potential #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A10b Many #SMBs like online loans: skip bank paperwork & get funds in days not weeks/months at fair rates #YSBAnswers pic.twitter.com/ALE8djM3hg
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A10c We offer more personalized service than big banks. You can talk to the underwriter reviewing your application! #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q11: What is APR? How is it different from APY? #YSBAnswers @FundingCircleUS
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A11a APR = annual % rate of loan w/o compounded interest. APY takes intra-year compounding into account. http://t.co/kfMzkbxj9K #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A11b Some lenders try to pass off interest rate as APR. Do they proactively disclose loan’s true cost? #YSBAnswers pic.twitter.com/NWGyxX1Kp8
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A11c APR requires some math but luckily you can skip pencil/paper & use @fundasticsmb online calculator: http://t.co/H8082KtJcA #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q12: What kinds of fees should I watch out for or that are a red flag? #YSBAnswers @FundingCircleUS
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A12 Two red flags to watch out for 1) early repayment penalties & refusal to spell out all the fees to you in the first place. #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A12b Payment frequency. Daily payments can make short-term cash advances seem better than term loans – but end up costing $$$ #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A12c Arm yourself w/ knowledge! Here are 4 ways to tell if a lender is on YOUR side http://t.co/kisGdeD6Gm #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q13: How can I tell a “good” loan from a “bad” loan? #YSBAnswers @FundingCircleUS
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A13a Good loan: the right amount for your biz at an APR you can afford with a lender you trust #YSBAnswers pic.twitter.com/aWDIlz0eox
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A13b Bad loan: too much/little for your biz at a rate you can’t determine w/ a lender who isn’t transparent about fees & terms #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q14: (@TurnstyleCycle) Any advice on how to expedite the laborious loan process but also make sure it’s transparent? #YSBAnswers
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A14a Work with a lender who values a streamlined transparent app process – and your time. #YSBAnswers pic.twitter.com/e6X2bFOqm0
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A14b Prepare everything you need for your application beforehand. W/ online lenders there’s no paperwork! http://t.co/F9fyF0mOL5 #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q15: (@DanePollock_)
What do you look at other than my credit score then for a #smallbiz loan? #YSBAnswers @FundingCircleUS
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A15a We know you’re more than your credit score. Here are 5 things we actually look for in applications: http://t.co/61rCQQbIZm #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A15b Fun fact: Your SMB’s social media presence can help us give you a better loan! Learn more: http://t.co/KxMzcjLU5P #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q16: How can I tell if my lender is being transparent with me – or not? #YSBAnswers @FundingCircleUS
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A16a Can they give you a straight answer about all their rates and fees? Or are they trying to confuse you with jargon? #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A16b Do they answer questions promptly? Like bad boy/girlfriends, vague lenders who won’t return calls aren’t worth your time #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A16c Will they provide you with an amortization schedule & overview of collection practices BEFORE you sign paperwork? #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q17: What should I ask for from my lender? #YSBAnswers @FundingCircleUS
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A17a Full breakdown of the true loan cost: principal, interest rate, APR, & ALL fees & charges. If they won’t, do math yourself! #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A17b An amortization schedule so you know exactly when your payments are due. If you ask for it, a good lender should provide. #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A17c A reliable point of contact so you have peace of mind knowing you can get questions answered quickly/well over life of loan #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q18: I’ve unfortunately taken some bad financing offers. What are my options? #YSBAnswers @FundingCircleUS
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A18a You’re not alone! #SMBs today are overwhelmed by financing offers that seem miraculous but end up burdening their biz. #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A18c Refinancing past mistakes can simplify your finances & save you $ in long run. Learn more: http://t.co/pT9MU7kVAu #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q19: What are the traps and pitfalls that a small business can fall into when considering different financing options? #YSBAnswers
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A19a Don’t accept the first offer you get, or exclusively consider interest rate! There are many other factors to consider… #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A19b …like hidden fees, decision time, interest rate vs. APR, flexibility of repayment options, and customer service! #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A19c A good lender will work with you to size your loan to meet your needs & build your dream, not theirs. #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A19d Debt is great if it helps you grow. 4 ways to avoid a #smallbiz debt trap http://t.co/SBHNuFotwy #YSBAnswers pic.twitter.com/zzQPT7B8s2
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q20: From a business standpoint how do I evaluate how much financing I can afford? #YSBAnswers @FundingCircleUS
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A20a Your “Capacity” to pay back a loan is 1 of 5 Cs of Credit lenders use to evaluate you. Learn more: http://t.co/61rCQQbIZm #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A20b Calculate your Debt Service Coverage Ratio to see if $ flowing into your biz is enough to cover debt #YSBAnswers pic.twitter.com/zNHsMj8Peh
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A20c What it boils down to is: Can you afford the monthly payment on your loan? If not, then it’s not right for you. #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q21: What do you suggest I do if I know I am running into trouble paying back a loan? #YSBAnswers @FundingCircleUS
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A21a First, let your lender know what’s going on. They might be able to help you restructure more flexible repayments. #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A21b Communication & honesty is best way to help us help you. We work w/ you when life event or biz disruption impacts repayment #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A21c Second, talk to an accountant or financial advisor to figure out other areas to cut down on your biz spending #GetLean #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A21d Lastly if you think your current interest rate is too high, refinance debt at lower rate to simplify/reduce payments. #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q22: What is your advice if I want to try to bootstrap my business WITHOUT a loan? #YSBAnswers @FundingCircleUS
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A22a There are ways for you to bootstrap in early years besides personal financing. One is crowdfunding: http://t.co/RjNsXa60OS #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A22b Can also get goodwill funds from family/friends who believe in your biz idea, and understand they may not get their $ back. #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A22c Lastly keep overhead expenses low as possible. Here are creative ideas from our partner @QuickBooks http://t.co/AkwFFIqmMd #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A22d When you’ve been in business for >2 years, a loan with us is an easy & affordable way to grow! #YSBAnswers pic.twitter.com/oUtwB0jOI4
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q23: I can get some of my funding from a family member. How do I set it up so that it’s a good deal for both of us? #YSBAnswers
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A23a Borrowing from friends & not a gift? Sign/notarize promissory note to create legally binding payment plan @Avvo can help #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q24: What are the top three points to remember in evaluating a loan decision? #YSBAnswers @FundingCircleUS
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A24a Can I afford to borrow $XX at this cost? Don’t set yourself up for failure: calculate your DSCR #YSBAnswers pic.twitter.com/Uz8YRpt8So
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A24b Do I have a clear plan for using my financing? This will help you manage cash flow & get maximum growth from your new funds #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A24c Do I trust this lender enough to enter long-term relationship w/ them? Debt is a big deal – so love the lender you’re with. #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A24d Over 10,000 #MainStreet entrepreneurs trust @FundingCircleUS to help them grow their business. #YSBAnswers pic.twitter.com/aCrSxxKbtc
— Funding Circle USA (@FundingCircleUS) August 13, 2015
Q25: What is the one thing people most often forget to do when they take out a loan that they should remember? #YSBAnswers @FundingCircleUS
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
A25a Make clear plan for using your funds w/ your lender and stick to it. This gives peace of mind – & predictable cash flow! #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A25b Also don’t forget to CELEBRATE! Your #SmallBiz has an amazing opportunity to grow. Wine is justified #YSBAnswers pic.twitter.com/ycrWkUfhP9
— Funding Circle USA (@FundingCircleUS) August 13, 2015
A HUGE THANK YOU to @HodgesSam and @FundingCircleUS for their great answers in our #smallbiz loans twitter chat today #YSBAnswers
— Yahoo Small Business (@YSmallBusiness) August 13, 2015
Thanks @YSmallBusiness for hosting, and thank YOU #SMBs for your great questions! All the best to you & your business #YSBAnswers
— Funding Circle USA (@FundingCircleUS) August 13, 2015
